Arizona sun., 1947-11-28

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with the problems
Bromfield of both is the ques-
ton of distribution.
VIGOROUSLY expensive and neffi-
cient, and in the actual process OF
painfully adjusting itself.
It is not only that the world has
shrunk immensely in our time but
also that the United States has
shrunk with it. The problem Of ad-
justing wages and purchasing pow
er to the prices of all commodities
has become, the most urgent one
now confronting the free enterprise
system. Size, specialization and eff
ficiency all have their bearing upon
living costs, and notably upon food
prices.
The old fashioned general
farm is an inefficient unit In our
highly complex interrelated pro-
duction economy. So, too, is the
small retail enterprise cOmpet-
ing with the efficiency, buying
and distributing power Of the
vast, well-integrated chain
stores, super-markets and COOP
eratives.
The economic preSSureS OF our
century are all toward bigness, eff
cheney and low-cost production and
distribution, exactly as the rewards
of the automobile industry have
gone to mass-production, assembly,
line big companies which produced
a commodity of high quality for a
low price. In the problem of food
costs this efficiency begins at the
farm, extends through the old field
of distribution to the retail outlet.
Cycle of High Costs.
The high cost of food begins on
the farm through inefficiency and
low production per acre, which pro-
duces high costs per man hour and
per commodity unit. 1t continues
through the field of distribution
which involves handling - many
market rigging, and at times a
spread of price between producer
and consumer Of several hundred
per cent.
The point is that small retailers
as well as the great chain stores or
cooperatives are link in this chain.
but that the small retailer is largely
at the mercy of market rigging,
commission merchants, expensive
small-lot distribution and multiple
distribution agencies (that is, the
great wholesale buyers and COM
mission merchants, the local whole
sale distributors, ct cetera-each Of
whom takes a cut eventually paid
for by the consumer or in losses by
the small retail proprietor).
At the same time, the small
retailer is a victim of the eco
nomic squeeze created by the
ability of the chain stores,
super-markets and cOoperatives
to set low prices because of
smaller purchase and distribu-
ton cost. Rarely, save in deluxe
areas like New YOrk's Madison
avenue, can the small unit re-
taller set q price higher in his
community than that of the big
ger organizations, although his
costs may be much greater.
The economic tendency and pres
sures today are certainly all in the
direction of low costs, high eff
cheney and the bigness which Gre
ates them. The consumer is con-
cerned almost wholly with the goal
of buying the best quality for the
lowest price, Certainly super-mar-
kets, chain stores and cooperatives
are growing and will continue to do
so, taxed or tax-free in the case of
big cooperatives, for even with
taxes they still can sell at lower
prices than the small independent
operator.
Dollar Value Paramount.
All of this, of course. raises the
grave question of monopolies, if not
nationwide, at least in certain
states and areas. Monopoly, in turn,
implies government regulation. But
at the moment, at least, the con-