South Bend news-times. (South Bend, Ind.) 1913-1938, 1921-01-02
CAPPER SAYS u 5.
FO0DDISIRIDUII0N
SYSTEM Is FAULTY
Cites Waste in Some Parts Of
Country, Shortage Else
where.
BY Arthur KAPPER..

thing is radically wrong with ma
tional system Of distribution which
permits OF absolute waste OF food
products ia one section Of the coun-
Try when ln other sections there ex-
lists good demand. That condition
. occurs frequently in the United
States. In the producing sec
lions Of Michigan and New York
press reports declare that large
quantities Of fruit rotted and was
wasted because there was no mar
ket for IL. At the same time high
prices prevailed for fruit In the mid
west. where the crop was cut short
by late spring frOsts. Producers in
New York and Michigan, the reports
state. did not obtain profitable prices
Tor their crop despite the fact that
other sections Of the country were
anxious TO buy. Probably made
qUate transportation facilities and
shortage OF labor were factors IN this
condition. But at any rate the sys-
tern OF distribution failed 10 function
40 the profit either OF the producer
or the consumer.
How Dollar Is Divided.
There is an enormous spread be-
tween the price the producer OBJ
tains for his products and the price
the consumer pays for them. This
spread occurs in the marketing and
distribution of those products The
california Fruit Growers exchange
made an investigation 10 determine
how the consumers dollar was di-
vidcd. Thirty representative markets
were included, and 5.485 reports
were obtained. The results showed
that the factors entering into the
division Of the consumers dollar
spent IN buying citrus fruit in 1914,
are:
Retail distribution cost Cgross),
33.3 per cent; jobbers' distribution
cost (gross). 50 per cent; growers
selling cost, Is per cent; freight and
refrigeration cost, eos per cent;
packing house cost. IA per cent;
cost OF picking and hauling to pack
ing house, "A per cent; proportion
retained for fruit on the tree, -267
per cent.
These figures are supplied by G.
Harold Powell, general manager of
the California Fruit Growers ex-
change. Los Angeles. They show that
the retailer gets 1913 per cert and
the grower 26.7 per cent Of the con-
aumer's dollar. The cost Of jobbinE
and retailing is AIS per cent. In
one town the tobber's markup was
10 per cent. and in another town p
per cent, showing a wide variation
The retailers margins ran from 20
10 IS per cent.
Herbert Hoover recently made
this statement: The margins be-
tween oUr farmers and the whole
Falers I'm COmmOdities-othe than
Grain. In some instances-even IL
normal times are the highest in any
civilized country-fully p per cent
higher than I'm most European coun-
tries"
Where Farmer Loses.
Mr.. Hoover also said:
Analysis Of the character OF the
margin between the farmer and the
wholesalex viii show that decreases
En- price fird immediate reflection on
The farmer. while immediate in
Crcag IS in price are absorbed by the
tr>d.s between. and the farmer gets
Out tagging increase"
Prices of hoEs obtained by farm
Srs prices paid by the consumer and
= the margin between. as shown in
government statistics for 1914. 1919
end 1920 indicate an enormous loss
90 both the producer and the con-
Eumcr-to the one i'm the low price
obtained and 20 the other I'm the eN-
Ccssive price paid. These figures are:
Price az hogs in pri" iDal states
per 100 pounds, 1914. S1.45. 1919
Fl6.2-. 1920. S15.37. Price of cured
products TO consumer for the 100
round hog; 1914. 1891. 1919
s97.23; 1920. $37.71 Margin be
tween the farmer and the consumer.
J914 Sl1.52; 1919, S21.06; 1929,
while the farmer has gained
about S-.92 I'm price the margin has
Increased by SIO-S2 TO the cousuu-.
or. The consumer has paid 80 cent
Ieore while the farmer got so cent
less during the last year
Faulty Transportation.
Inadequate transportation facili
ties add % the CostliueSs of the dis
irihution system. In the face of
Ger shortage the producer Canno.
move HIS products readily. and Otter
o. forced 20 sell on a glutted marlte.
81 low prices. The consumer. or
che other hand is forced 20 nav an
Increased price for his foodstuffs due
t0 a lack OF equipment 10 bring u.
commodities 20 market An inves
tratio1 made by the U~t.a5 state
food admin istratiou show that ir
The case Of potatoes the margin be
tween the producer and the con
sumner broadencd 100 per cent il
periods Of car shortage
Enormous numbers Of persons ere
Fngared I'm the fnal processes OF dis
rtbution. increasing the cost. on
!. ,itv has one meat retailer for every
: 500 inhabitants. II has been care
fully estimated that ore dealo-
souid adequately serve every 1900
persons The result Of such a con
Eitiou is that the retailers operate on
hi~h MARGIN and that or1v swaI
Income IS obtained ny any Of thcm
Thus Be IS evident that our waste.
III s-stcm Or distribution is an un
Fair tax or both the producer and
Lho consumer. This can be reduced
ir viii 30 possible To- nlace large
tart o. the consumers dollar in thr
bands 90 the farmer rrd ar rrr
f7ne time suunly food 90 the cit'e
~ "a lower cost
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