26 BULLETIN 1283, U. S. DEPARTMENT OF AGRICULTURE 
market the following Saturday. The average price of the same 
quality onions in Chicago Saturday is the Chicago price used. The 
difference between what they cost .on Monday and what they sell 
for on Saturday at Chicago, less transportation, is the margin received 
by the shipper to Chicago. In like manner, the difference between 
the average cost at Laredo on Monday, and the average price at 
New York on Tuesday of the second week is the average New York 
shipper's margin. Figure 7 shows the percentage of the price paid 
in consuming centers that is received by the purchaser, shipper and 
transportation agency. 
The producer generally receives more per crate early in the season 
than later, but the proportion of the wholesale price is about the same. 
Transportation costs per crate advanced in 1918, in 1919, and in 
1921 , and declined in 1922 to a point generally about half way between 
the 1919 and the 1921 rates. The percentage of the wholesale dollar 
used for transportation changed more because of changes in the 
prices received for the product, than because of changes in freight 
rates. 
A very high percentage in 1921 resulted from a combination of 
low prices and high freight rates. 
During the 6-year period the average margin per crate received by 
the shipper was 43 cents as compared with an average of SI. 87 paid 
to the producer. But the amount received by the shipper fluctuated 
very widely. The 1919 season was very profitable, and he made 
an average of 84 cents a crate. In 1922, he lost an average of 22 
cents on all rail shipments to New York, and 9 cents on shipments to 
Philadelphia, so that the average shipper's margin to all six cities 
was practically zero, and the expenses of operation were a net loss. 5 
The shipper's margin does not usually vary greatly on shipments 
to one city over those to another with the exception of St. Louis and 
New York. Shipments to St. Louis generally show a smaller margin 
between delivered cost and selling price than other cities, because it 
is a diverting point for most of the onions marketed. Whenever the 
St. Louis market is at all satisfactory, the onions are unloaded there 
instead of a longer journey being risked. New York showed a lower 
shipper's margin or greater actual loss for 1921 and 1922 than any 
of the other cities, but had the normal margin in previous years. 
The explanation is not entirely clear. It seems to have been partly 
due to heavy dumping of both Texas and California stock and to 
heavy importations of foreign onions at this port. Boat shipments 
from Texas via Galveston do not appear to have been an important 
factor. The part-water route to New York is cheaper than the all- 
rail, but the longer period en route gives the normal seasonal decline 
greater effect. Table 5 indicates that shipments via Galveston 
were not so large as in former years. Chicago also showed a some- 
what moderate margin because of the keen competition there with 
the California product. The shipper's margin for the 6-year period 
averaged 53 cents for Boston and 32 cents for St. Louis as compared 
with 43 cents for all six cities. In the order of width of the average 
shipper's margin from highest to lowest over the 6-year period, these 
cities ranked as follows: Boston, Pittsburgh, 'Philadelphia, Chicago, 
New York, St. Louis. 
' 'i he tipper's margin represents the total difference between buying and selling prices less transporta- 
tion expense. All of the expenses of the shipper must be paid out of the margin received by him, and this 
fact should be given consideration in determining his worth to the industi > . 
