Vol.6. No.10.
GASTONIA, N. C., MARCH 7, 1912
One Dollar a Year
THE HIGH COST OF LIVING ANO ECONOMIC MARKETING THROUGH WAREHOUSES
3 By DR. H. Q. ALEXANDER C
^he industrial and commercial classes of
^ are composed of the producers of
materials, the buyers and distribiSors of
materials, the manufacturers of raw
l^^terials into the finished products, the dis-
^^ters of the manufactured or finished pro-
the transportation necessary to dis-
ute both the raw materials and manufac-
/ed products, and the banks which furnish
^^^y money to finance the whole business.
H i|« _ •
msurance and life insurance has become
^^cognized necessity for the protection of all
clas
and hence should be named among the
mmercial classes. All classes of men of
'vhat
^ ever vocation, calling or profession, are
^’isumers of both raw materials and manu-
^^tured products.
^he high cost of living has been much in the
Publi
c mind for the last year or two and has
Degn fT , • . ' -
p subject of a special message from the
of the Unitfed States. Many factors
Hv'^^ largely determine the cost of
but all of these can be brought under
•Jist marketing, manufacturing and
5to Any agencies such as floods,
Pj. droughts, etc., which diminish the
of labor without lowering the cost of
lo t!"* increase the cost of these products
® consumer, unless the supply is still ade-
9uat
j ^ meet all demands. The cost of pro-
Ml “ - •
Cfi •
Of determined in part by the price
ho l^hings which are necessary to produc-
Eut we need not consider the cost of
materials as a factor in the
th
cost of living, since no one claims that
Pro producer is unduly high in
to cost of production. We wiU
k Eie cost of production
th^ ^ should be and will be lessened by
improved and more efficient
®thods.
let
Us next consider the cost of marketing
thes materials. Many of
lUred require to be manufac-
fit them for the consumer. To
distribute these should add very
^nd which the producer receives.
.\Tg,. ^^t we have the statement of tlie
Secretary of Agriculture to the effect
Onj^ every dollar paid by the consumer;
to forty cents goes to the pro-
The otlier sixty-five or sixtjr cents is
the cost of the present bad methods of market
ing and distribution. A small part of this
difference covers the cost of transportation,
but the greater part of it, more than half the
total price paid by the consumer, goes to mid
dle men who act as distributing agents.
In the marketing of those products that re
quire to be manufactured we find an expensive
method in vogue. Instead of being sold by
producer direct to manufacturer, they pass
through the hands of one, two or three middle
men who add nothing to the intrinsic value of
the products, but they do add considerably to
the price which the consumer will fin
ally pay when the product is manufac
tured. If this price was paid direct to
the producer, which could be done by elim
inating these middle men, it would greatly in
crease his purchasing power and thereby in
crease consumption, which would in turn, tend
to raise prices of the manufactured products.
It is not my purpose to consider the cost of
manufacturing as a factor in the high cost of
living. What is known as scientific efficiency
is being adopted in many large concerns,
which promises to greatly reduce the cost of
the output. But whether this will accrue to
the interest of the consumer, I think doubtful.
In this day of corporate monopoly the price of
over three hundred manufactured products is
fixed arbitrarily by the manufacturer. To les
sen the cost of manufacturing will mean in
creased dividends. This saving should be
given to labor in increased wages and to the
public in lower prices.
In the distribution of manufactured pro
ducts we find an indirect and expensive
method that increases the cost to the con
sumer of from fifty to one hundred per cent.
Here again we find too many middle men. We
must have distributers but there is no j’ustifica-
tion in having three or four agencies where
only one is needed. Only a very small per
cent of our local population is engaged in the
business of distribution, and yet the present
expensive method adds materially to the cost
of living to all the people. If any reform is
ever obtained along this line, it will have to
originate with the consuming public. The dis
tributers fight every step of this kind, even to
the parcels post.
Transportation must necessarily increase
the cost of all products, whether manufactured
or not. I do not doubt that often times rates
are too high, but the greatest complaint is
heard against unjust discriminations. I think
our Corporation Commissioners should be a
little more active in behalf of the public. I
cannot understand why a barrel of apples can
be shipped from New York to central North
Carolina cheaper than from the mountain
countries of our own State. I think a railroad
should be compelled to give the same rates
where there is no competition, that obtains
where competition exists; other things being
equal. I would remind my readers that we
will elect the Corporation Commissioners this
year. We will make a mistake if we elect cor
poration attorneys.
It is not my intention to discuss our banking
system as it affects the cost of living. I be
lieve though that the money trust is the great
est of all trusts. Our government has con
ferred upon a few thousand bankers the power
to contract the volume of money or credit at
will. By combinations and the forming of
great trusts this power has been narrowed
down to less than a dozen men. They dictate
to our government when it is to their interest
to do so. For instance if they want to absorb
a competitive corporation, or force a bond
issue. The power to contract the volume of
money means the power to lower prices. This
power should be held only by the government
and should not be conferred upon individuals
or corporations. Our banking should be a
governmental function conducted in the in
terest of the whole people, the borrower as
well as the lender.
Let us discuss briefly the plan of the Farm
ers’ Union to lower the cost of living. It is to
eliminate as far as possible all unnecessary
agencies in the marketing and distribution of
our products. This will be accomplished by a
chain of warehouses throughout the State.
The county warehouses will gather in the
products, , seeing that they are properly graded,
packed and labelled with producers name. The
State or central warehouses will store and dis
tribute to meet the demands of the markets.
This will prevent scarcity and high prices in
some sections and congestion and low prices
in others. Shipments will always be made
(Continued on page 5)