THE FARMER AND THE MIDDLEMAN 363 



middleman in the central market at a fair price has not been so 

 nearly solved as has that of the local market. Two methods 

 have been tried, each with some degree of success. The one 

 method is state regulation or control, and the other method is 

 cooperation. Cooperation may be on the part of consumers 

 who organize to reach out after their product, or cooperation 

 may be on the part of producers organized to reach out with 

 their produce beyond the central market with a view to securing 

 a higher price for their product. It is believed that both of 

 these methods should be resorted to. 



Where there is a well-organized system of marketing capable 

 of absorbing all of the product whenever shipped, as is true of 

 the grain business and the packing business, it would seem that 

 state or Federal regulation is the best method of establishing 

 fair play. These are big businesses requiring much capital and 

 special skill and carried on at such a distance that the farmer 

 cannot supervise the work. He must trust the supervision to 

 others. He may not have any too much confidence in the Gov- 

 ernment, but experience will teach him that the Government is 

 at least as trustworthy as any comprehensive organization 

 which he can build to perform this function of securing fair 

 play. 



Where there is no well-organized central market which will 

 absorb all the product and send it on to its final destination, the 

 local cooperative company often finds it necessary to reach out 

 long distances for a market. The potato market will serve 

 as an example. The farmers' produce company is in competi- 

 tion with the big line companies both at the local stations and in 

 the various cities throughout the country where the potatoes 

 are consumed. The farmers' company can handle the potatoes 

 at the loading station appreciably cheaper than can the line 

 companies, but in finding a market for the limited number of 

 cars handled by one warehouse, in competition with the line 

 companies which are handling from twenty-five to fifty times 

 as many cars in a year, the saving is largely lost. It is believed 

 therefore that the federation of local companies for the purpose 

 of finding a market is a necessary step if local cooperation is to 



