THE FARMER AND THE MIDDLEMAN 361 



which is forwarded to the potato dealer in central Wisconsin, 

 who takes ten cents for materials furnished (sacks, car linings, 

 and heat) and services rendered. The cash register rings 

 out 52 cents to the farmer, and the transaction is closed, and 

 the question, Who gets the money ? is answered for one specific 

 case. Are all these charges fair? This is the real issue and 

 of course the burden of proof is on those who raise the question. 

 What is a fair charge? That, in itself, is not an easy question, 

 but equally difficult tasks should carry equal compensation as 

 nearly as possible whether it be farmer, manufacturer or mer- 

 chant. It is usually considered that where 'free competition 

 exists, prices tend to become fair. 



Special instances may be mentioned where unfair charges are 

 likely to occur. 



Along the railway lines in the grain-growing regions of the 

 United States there are many country stations where one elevator 

 can easily handle all the business. This elevator may be owned 

 and operated by an independent grain buyer, interested in 

 maximum returns for his services. It may be owned by a line 

 elevator company and operated by their hired man, or it may 

 be owned by the farmers who load grain at the station and 

 operated by the employee of the farmers' company. Either of 

 these methods will usually provide the necessary elevator 

 service. And it often happens that the same man will handle 

 the grain. The question that interests the farmers is, How 

 can we get this service performed satisfactorily for the lowest 

 cost? Such a local elevator partakes of the character of a 

 natural monopoly. If the independent operator is in charge, 

 he can make a monopoly profit which looks large to the farmer 

 and which attracts the attention of the grain merchants at the 

 central market. To introduce competition into the charge 

 made for this service, the independent operator is replaced by 

 an employee who works for a competitive wage. Who, then, 

 gets the monopoly gain which had formerly gone to the opera- 

 tor? The employer, of course. If the line elevator company 

 is the employer, the monopoly charge may be increased due 

 to the elimination of the tendency for the operators at different 



