FORTY-FIFTH ANNUAL REPORT. 61 



FLUCTUATIONS IN THE CAR-LOT JOBBERS^ AND RETAILERS^ PRICES. 



We desire to bring out another phase of the orange distributing busi- 

 ness. It relates to the fluctuations in the jobbers', and retailers' and 

 consumers' prices. The impression is wide-spread that the consumers' 

 }>ri«:-e does not fluctuate with the retail purchase price, and that the 

 jobbers' price to the retailer does not fluctuate with the price paid the 

 prodacer. In order to determine the facts, we have taken the car-lot, the 

 jobbers' and the retailers' prices in twelve representative cities for one 

 year and have charted the fluctuations in the respective prices. They 

 are shown in the following diagram. 



From this chart it will be seen that the three prices taken as a whole, 

 do follow each other with almost exact regularity and this must nec- 

 essarily follow where the competition between the diff'erent wholesale 

 and retail dealers, exerts itself naturally. There are many exceptions 

 to the general rule, where the retailers or the jobbers maintain a some- 

 what uniform price throughout the year, and especially where the job- 

 bing and the retail prices are held abnormally high after the producer's 

 delivered price has been reduced. This is especially true where the fruit 

 is carried as a side line to meet the ordinary demands of the customers 

 of a store. It may be more true in the country districts where there is 

 not so active a competition in the sale of fruit and in markets where 

 the forces of competition do not operate naturally. When the pro- 

 ducer's price is low, the consumer reaps a benefit only when the price 

 of the jobber and retailer is reduced correspondingly. 



The distribution of a food product is a series of complex operations; 

 the railroads, the jobbers, and the retailers, each perform a vital econ- 

 omic and social service in bringing the producer and the consumer 

 together; each should receive in bringing the producer and the con- 

 sumer together; each should receive a fair return for the service he 

 performs. A more efficient and direct service should be the aim that 

 each should strive for if the basic factor, the industry which furnishes 

 the fruit, is to i)r()sper. We must recognize that many of the conditions 

 under which food supplies are distributed in the cities are created for 

 the jobbers and retailers by large economic forces and by the require- 

 ments of llie consumer, wliich are beyond theii'^ power in influence or 

 control. But if the producer, as well as the distributing agencies, the 

 railroads, the jobbers or the retailers are not efl'ectively organized, or 

 if they are not following sound merchandizing practices, their over- 

 head costs are excessive and they impose an undue burden on both the 

 l)roducer and the consumer, consumption is restricted, the investment 

 of the producer is jeopardized, and the stability of the industry is 

 threatened. 



We may suggest in a general way some of the conditions which seem 

 desirable to be brought about. < 



CONDITIONS WHICH THE PRODUCERS MUST MEET. 



First, on the part of the producer, it is essential that he furnish the 

 jobbers and retailers uniform supplies of dependable grade and pack 



