88 THE HIGH COST OF LIVING 



near-by store. In most towns there was an open 

 public market to which the farmer came once or 

 twice a week, as is still the case in many Southern 

 cities. He brought his cows, hogs, and sheep to the 

 local slaughter-house, where he sold to the local 

 butcher. The farmer, like every other business 

 man, dealt directly with the buyer, who was compet- 

 ing with other buyers. Demand and supply estab- 

 lished prices just as they do where competition is 

 free. And the prices so established approximated 

 the reasonable costs of production plus a competi- 

 tive profit. 



As cities grew in population and the market 

 was widened, the business of distribution became an 

 important industry. It was specialized. The dis- 

 tributers found it to their profit to work in har- 

 mony so that they could fix the prices paid for 

 foodstuffs. Then they developed distant sources 

 of supply, partly because of the increased demand, 

 partly as a means of controlling local prices. With 

 the development of the cattle-ranges of the West the 

 raising of l^eef and hogs became a great industry. 

 Packing centres were developed in Chicago, Omaha, 

 Kansas City, Fort Worth, and elsewhere to which 

 the drovers shipped their cattle. For a time the 

 packing-houses competed with one another, but they 

 were soon di'awn together by an identity of interest 

 in keeping down the price of beef on the hoof, on 

 the one hand, and increasing the price of meat on 



