824 READINGS IN RURAL ECONOMICS 



here referred to is due to the fact that New York City supplies 

 are mainly received in carload lots from packers who have already 

 candled the eggs in a manner that involves far less waste than 

 is incurred on shipments from local merchants to jobbers in the 

 Twin Cities. This contrast will be referred to again. 



Thus far certain considerations connected with the indirect 

 method have been discussed which are not attached to the direct 

 method. Such is the case with carrying charges including in- 

 terest, rentals, and insurance which must needs be met in con- 

 nection with cold storage. Inseparably linked with this is the risk 

 feature due to uncertainty in future price and which is shouldered 

 by jobbers at a variable margin determined by competitive bidding. 



In addition to the above differences there are other contrasts 

 between the direct and indirect methods which we shall now con- 

 sider. Most important among them is that of the quality of eggs 

 shipped from local communities under the two methods. We have 

 already noticed the miscellaneous quality of eggs supplied under 

 the indirect method. A mixture of different sizes and colors as 

 well as varying degrees of quality confront the jobber. He must 

 subject the stock to several processes such as candling, sorting, 

 and repacking. Not only these operations themselves but also the 

 losses from portions either entirely unsalable or marketable only 

 as inferior goods add to the middleman's charges. This additional 

 cost, moreover, is not an expense necessarily inherent in the in- 

 direct method. It arises mainly as the result of the " case-count " 

 policy of paying by the dozen regardless of quality which has 

 almost invariably been adopted in the past wherever the indirect 

 method has been applied. 



In contrast with this we find another policy applied under the 

 direct method of egg-marketing. Here the central idea empha- 

 sized is the superiority in the quality of service rendered. Every 

 part of the mechanism is constructed with this primary aim in 

 view. Only eggs of the best quality will be received. The organ- 

 ization is so perfected as to fix responsibility on each individual 

 who contributes to the supply. It has been found impossible to 

 assemble a product such as eggs from a large number of farmers 



