Grant County herald. [volume] (Lancaster, Wis.) 1850-1968, 1922-01-25
WHERE YOUR DOLLAR GOES

teresting figures as to the proportion
ate part taken by profits, distribution
and production costs in the market
price of commodities.
According to this Congressional
Commission, the average dollar spent
for commodities is divided as follows:
49c for service and distribution
&c for production costs
14c for profits
In other words, when you purchase
q dollars worth of commodities, BIC
out of your dollar goes to cover the
cost of productions; ACC pays for the
packing, transportation, selling, ad-
gertising, and other service costs,
while lac represents all profits, in
Guiding all profits, including those of
he original producer, the wholesaler,
retailer, etc.
OF course, it should be remembered
that these figures represent a general
average over the whole field of COM
modities In some cases the manu-
featuring costs amount to very much
larger proportion; in other cases the
profits are very much higher than
this average, and in still other cases
the cost of transportation and distri-
button represents the principal factor.
It lis probable, however, that most
commodities do not fall very far out
side the average given above.
In commenting on these figures
Representative Sidney Anderson,
Chairman Of the Commission, says:
An Invisible Tax
Goods are sold not so much by Of
fering price as by offering service,
convenience, dependability, represen-
tation and credit. The customer pays
all of this. 1t is like an invisible tax
easy to pay for il is not apparently
camoufaged in the price.
These figures would seem to indi
cate that there is considerable weight
in the often repeated statement that
IN this country we have too many
middlemen, and have to pay too much
for the transportation and distribu
zion of our goods.
However, there is another side to
this, as pointed out by Representative
Anderson. He says, the middlemen
only gives the consumer what the con-
sumner wants when he gets it"
1t may seem that TO pay nearly 500
for bringing the goods where we want
way we want them is a large proper
ton to pay. 1t must be remembered,
however, that the American public
demands a degree of service which
could hardly be paid for by any small
Ter proportion. We demand that our
goods be carefully assorted, clearly
packed and transported SO as to be
available at all seasons. We demand
IL H. it, n4+ rtT v-c
guise by the retailer and in most
cases, that they be delivered to our
homes We also demand that they
be called to our attention by eXpen-
sive advertising, as has been shown
by the fact that a broad market for q
simple necessity like tooth powder can
only be created by national adyerA
Using campaign.
Neat, Clean Packing Costly
We Duy our sugar today in the form
Of crystal cubes put up in neat, ex-
pensive packages, whereas a few
years ago we bought it by the hun
dred pounds in rough sacks We used
to buy our apples by the barrel and
keep them in the cellar; now we buy
highly polished fruit at cents each
from the corner fruit vendor
A thousand examples of this kind
may be cited. Everyone of the older
generation remembers the old-fash-
toned cracker barrel in grocery
stores, from which crackers were
For a sack of sugar or barrel of -four
crackers of the same quail
ity are assorted i'll small packages
sealed in wax paper, put in
a cardboard box and distributed by
means of national advertising cam
paigns, which run into many hundred
Of thousands of dollars.
All of these changes in the method
Of distributing commodities are ben
aficial changes. The old cracker bar
rel was unsanitary, and in our modern
apartments we would not have room
tor a sack of sugar or barrel of -four
Fhe new method of small package dis
fribution is cleaner, more hygenic and
more convenient. We could not ex-
pect this added cleanliness and con-
Venience without paying for it. That
IS what Representative Anderson
means when he uses the word ser
vice" to cover multitudinous fac
tors (which go in making the goods
ready for the consumer This ser
decrease expense, and similar in
stances could be cited in practically
every line of business. If we expect
and demand this service we must en-
pect to pay for it. 1t cannot be gain
said that this is cue OF the major fac
tors in high prices.
In this regard, Representative An
derson says:
Some people say there are too many
middlemen; probably there are, bus
they could not exist without custom
ers and they could not make either
wages or profit without serving some
ones convenience in buying and SELL
ng."
We have heard great deal of dis
cussion in recent months as to the
necessity for reducing wages, cutting
rail freight rates, instituting econ
omies in factory management and
other economies, which, it has been
generally assumed. are the rrincinal