910 SUCCESSFUL FARMING 



From this table it will be noted that the price paid by the consumer 

 ranges from 67 to 266 per cent above that received by the producer, the 

 average increase in price being 136 per cent. This represents the average 

 condition for farmers who sell comparatively small quantities and for 

 consumers who buy for daily needs. 



The large cost of distribution tends towards increasing prices for the 

 consumer and lowering prices for the producer. It is estimated that the 

 people of New York City are paying over $150,000,000 annually to have 

 their foodstuffs carried from railroad terminals to their kitchens. Of the 

 $146,000,000 paid annually by the people of New York City for milk, eggs, 

 potatoes and onions, less than $50,000,000 are received by the farmers 

 who produced them.* 



It is clear that a cheaper method of food distribution is of much con- 

 cern to both producer and consumer. 



Frederick O. Sibley makes the following report in regard to the cost 

 of growing apples as compared with the cost of selling them: 



Some Costs of Growing Apples. 



Per Barrel. 



Labor $0.50 to $0.75 



Cash expenses 15 to .25 



Interest and overhead charges 10 to .15 



The barrel 35 to .40 



Storage 25 to .40 



$1.35 to $1.95 



Some Costs of Selling Apples. 



Per Barrel. 



Freight $0. 10 to $0. 15 



Commission 06 to .25 



Cartage 15 to .25 



Storage 25 to .25 



Jobbers 25 to .40 



Retailers . 50 to 3 .00 



$1.31 to $4.30 



Middlemen. — There is a long list in this class. They consist of the 

 local buyer and shipper, the transportation companies, the transfer compa- 

 nies, the commission merchant, the jobber and the retailer. Their purpose 

 is to serve the producer and consumer. In this capacity they find a market 

 for the farmers' goods. So long as this service lessens the work of the 

 farmer, he may give more time to production and produce more cheaply. 



Some of the transportation companies have established market 

 bureaus to assist the farmer in finding a market for his produce. They 

 have also taught the farmer how best to prepare his produce for sale. 

 Some have also aided the producers in securing suitable packages in which 

 to ship produce. In like manner other classes of middlemen have estab- 



* These figures arc from report by Dr. King. 



