332 



SCIENCE 



[N. S. Vol. XLI. No. 1052 



as tliey actually exist over the country in the 

 handling and marketing of cotton, grain, live stock, 

 meat and meat products, fruits, vegetables, dairy 

 and other products, followed through from the 

 producer to the consumer, with statistical studies 

 of supply and demand. Market grades and stand- 

 ards are also being investigated, with the object 

 of effecting greater uniformity; and transporta- 

 tion and storage, as to methods, the adequacy of 

 facilities, and the relation of warehousing, refrig- 

 eration, etc., to prices and to stabilizing supplies. 



Market surveys are being made with a view to 

 collecting facts and developing methods for bring- 

 ing useful information in regard to prices and 

 supplies promptly to producers and consumers. 

 The practise in vogue in marketing and distribu- 

 tion in large cities is the subject of a special in- 

 quiry, to make comparisons and arrive at the most 

 advantageous plans. Direct dealing through 

 marketing by parcel post and by express is being 

 studied, not only as to practicability and advan- 

 tages, but as to systems for bringing producers and 

 consumers into contact and establishing their busi- 

 ness relationships. Cooperative buying and selling 

 naturally attracts considerable attention, with in- 

 quiry into the methods and success of organiza- 

 tions, and the supplying of assistance in organiza- 

 tion, systems of accounting, auditing, etc. 



The partial enumeration of these lines of effort 

 illustrated some of the problems in marketing. 

 From a consideration of cotton handling and 

 marketing, Mr. Brand showed that the acute 

 problems are not confined to perishable crops. 

 The cantaloupe trade was cited to show an overde- 

 velopment of the industry, due to ignorance as to 

 the development of competitive areas, which in 

 1914 resulted in disaster to the producers and to 

 the large distributors. As usual, the slump in 

 prices was not reflected in the retail trade, con- 

 sumers paying practically as much as in a year of 

 scarcity, vrhile the surplus went to the dump. The 

 conclusion is that ' ' until we have a more complete 

 system of information and a better adjustment of 

 production to market requirements, this problem 

 will continue to be with us. ' ' 



Cooperation was not regarded as necessarily the 

 panacea for all marketing troubles. Organization 

 was favored, but alone it is not sufficient ; it must 

 be accompanied by skilful and intelligent manage- 

 ment. To protect shippers from imposition and 

 misrepresentation at large markets and terminals, 

 a licensed inspection system was suggested, and il- 

 lustrations of the use it could serve were cited. 



"The Distinction Between Efficiency in Produc- 



tion and Efficiency in Bargaining" was well illus- 

 trated by Dr. T. N. Carver, of Harvard University. 

 He explained that every legitimate business is 

 made up of two parts, one of which may be called 

 producing, including any handling of the material 

 which renders it more usable or useful, and the 

 other bargaining, i. e., buying and selling, borrow- 

 ing and lending. Many of the supposed economies 

 of large-scale business turn out upon examination 

 to be advantages in bargaining rather than econ- 

 omies in production. In most lines of business 

 there is a certain size which gives the maximum 

 efficiency in production, and also in bargaining. 

 These do not necessarily coincide, but as a rule, 

 the size which gives the maximum efficiency in bar- 

 gaining is larger than that for production. 



In agriculture the most efficient producing unit 

 was said to be the one-family farm, provided with 

 the best teams, tools and general equipment. This 

 gives the highest average product, man for man. 

 If the large farmer is able to command some spe- 

 cial advantages in securing cheap labor, he may 

 beat the small farmer in competition with him, but 

 this is advantage in bargaining. His profit may 

 be larger, in spite of the lower average productiv- 

 ity of the persons engaged. The foisting upon the 

 rural districts of a large supply of cheap labor is 

 designed to give the large farmer an advantage in 

 purchasing his labor. 



Again, it was pointed out that in buying his sup- 

 plies and in selling his products, especially if they 

 are perishable, the large farmer usually has an ad- 

 vantage. ' ' The small farmer of the present day is 

 the only large class which regularly buys its raw 

 material at retail and sells its finished product at 

 wholesale. ' ' This can be overcome by ' ' collective 

 bargaining" or cooperation, which may give the 

 small farmer the same advantages which the large 

 farmer enjoys; and the same is true in borrowing 

 capital. Hence for the small farmer, who appears 

 to be efficient in production, organization into 

 larger units was urged, to overcome inefficiency in 

 buying and selling. 



Dean E. Davenport, of tlie University of Illinois, 

 was elected vice-president and chairman of the sec- 

 tion for the ensuing year. Dr. A. C. True, of the 

 Office of Experiment Stations, was chosen mem- 

 ber of the General Committee of the Association; 

 Dr. W. A. Taylor, of the Bureau of Plant Indus- 

 try, member of the council, and President Kenyon 

 L. Butterfield, of Massachusetts, a member of the 

 sectional committee (for five years). 



E. W. Allen, 



Secfetary 



