Evening star., 1942-12-30
FuImer Unit 10 Probe
MiddIeman Profits in
Distribution Of Food
U. 5. Co-operotives Seen
Means Of Sowing Money
For Consumer, Farmer
By the Associated Press.

By the Associated Press
Visualizing establishment of a
federally financed marketing system
through which consumers would
pay less for their food and farmers
would receive more, Chairman Full
mer of the House Agriculture Com
mlttee said today the committee
would undertake a study of the
proposal shortly after Congress con-
venes next week.
The investigation, Mr., Fulmer
said. would be to determine how
much of the Nations food bill goes
to "middlemen' Out of the probe
probably would come recommended
tions for overhauling the entire
marketing setup, he added
1T is about time. Mr.. Fulmer
declared, that the public was told
who gets most of the money spent
for food produced by our farmers.
Too many people long have had the
Idea the farmer was getting the
money, when as matter of fact
there has been a spread of as much
as 200 per cent between the price
farmer received for his produce and
the price the consumer paid.
Terms Middlemen Leeches.
Most of this spread, he asserted
went to ''middlemen who, like
]eeches, are sucking the money out
Of the consuming public and let
ting the farmer take the blame for
high food prices"
AS an example of the spread be-
tween farm and market prices, Mr..
Fulmer said sweet potatoes for
which the farmer receives only 2
cents a pound are retailing at 6
cents.
The difference" he contended,
'goes into the cost of private trans
portation facilities. commission
mems and brokers profits and other
unnecessary charges, but the farmer
doesn't get a cent of it, and most
OF the middlemen services are abso-
luIely unnecessary.
Mr.. Fulmer said he favored estab-
llShment of cooperative market
ing system under which farmers
would do their own marketing and
distribution through local, State and
national organizations. Govern
ment grading and pricing of their
products would be part of the
system, which also would handle
packing, canning and other Incl
dentals.
To Operate Like Chains.
Under this system. which would
operate similarly to the manner in
which large chains now operate, the
farmer would be his own middle
man" Mr.. Fulmer asserted. Part
OF the profit that now goes to the
middlemen would 90 TO the farmer
who would receive higher prices for
his products, and part of it would
go to the consumer, who would pay
less"
Mr.. Fulmer said the committee
had planned to make its marketing
study during the last session of Con-
greSs. but deferred it because of the
time that would be consumed hear
ing witnesses To date, he said, he
had heard of no major opposition
to the proposal.
The savings that can be effected
under this plan cannot accurately
be calculated" he commented. but
they would be immence. Instead of
paying commission mems and bro
kers' fees on goods now purchased
and the high transportation rates
on small-lot shipments. the retaI
outlet would have the advantage of
mass buying and mass shipment
now enjoyed by the large chains.
because he and others in his COM
munity would be receiving their
goods from the same source. the CO.
operative
The idea of food co-operatives. he
said, is not new independent mer-
chants in many shaller communities
already having formed organizations
to 90 their buying and obtain the
benefit of lower prices through
larger purchases.
The co-operatives, while primarily
operated by distributors and farmers,
would be supervised BY the Govern
ment, Mr. Fulmer explained. and
while naturally there will be eX-
penSe involved, the overhead will
be nothing as much as it now is,
because the Government won't be
in there trying to make a prof.
but to replace lot of middlemen
who now make the profit"