362 AGRICULTURAL ECONOMICS 



stations to compete for the trade in the middle zone between 

 the railway stations. On the other hand, if the elevator is 

 owned by the farmers, the monopoly gain is eliminated, local 

 prices are increased, production is stimulated. Increased 

 supply tends to lower prices to consumers and thus the benefits 

 of cooperative elevators are divided between the farmers and the 

 consumers. 



Another example of what often appears to be an excessive 

 charge for local middleman services is that found at the local 

 stations in the districts from which potatoes are shipped. 

 Upon visiting one of these loading stations one is first impressed 

 with the fact that there are very many warehouses at each 

 station and for this reason may assume that monopoly charges 

 are impossible. As a matter of fact an excessive number of 

 warehouses and potato dealers, as well as an excessive number 

 of grocers in a small town, may result in price agreements, which 

 give basis for monopoly charges for services rendered. It is 

 believed by many that a condition of this kind has at times 

 existed in the potato district of central Wisconsin. The method 

 of eliminating this monopoly has been the introduction of the 

 farmers' warehouses, where the service is performed by an 

 employee of the farmers, working for a competitive wage. 



It is well established that wherever there is a tendency toward 

 a monopoly charge for a middleman service which is performed 

 locally, where the farmer comes in contact with the warehouse 

 and the man performing this service whenever he sells his prod- 

 ucts, cooperation is the natural and effective method of 

 eliminating the monopoly charge and distributing the benefits 

 widely through society. 



But there are other middleman functions which are not under 

 the eye of the farmer. These are in operation at the central 

 markets and beyond, and for brevity in this discussion will be 

 called central market functions to distinguish them from the 

 local market functions. Examples of the central market func- 

 tions are the elevator business at the primary grain markets, the 

 packing business, and the distribution of potatoes, dairy prod- 

 ucts, and poultry. The problem of securing the services of the 



