4. Distinguish between temporary makeshifts and fundamental reforms. 5. Explain in detail the functions of the so-called "Field Agents in Marketing." 6. What is the National Association of State Marketing Officials? 7. Explain at length the functions and methods of the United States Bureau of Markets. 8. Show the success and the limitations of Parcel Post marketing. 9. Cite facts showing the costs of the middleman, i.e., the so-called "middleman's toll," in the following: wheat and flour; meat; butter; eggs; potatoes; tobacco; citrus fruits; California peaches, raisins, and almonds. 10. Show in detail the risks in price fluctuations, citing examples. 11. Show risks from perishability. 12. Show the economic functions of a middleman. 13. Cite the experience of the Growers and Shippers Exchange of Rochester, N. Y., and show what principle it illustrates. 14. What is the probable solution of the "middleman problem"? Will the consumer demand more or fewer services from the middleman, as time goes on? 15. Cite Nystrom's views on retailing. 16. State briefly the outstanding facts on the Winnipeg Conference of wholesalers, retailers, and bankers. 17. Cite the marketing costs involved in securing market information by farmers' organizations, and justify this expenditure. 18. What marketing principles are illustrated by the distribution methods of the Ford Motor Company? 19. Does the farmer's use of the auctioneer illustrate any principle in marketing? 20. When, if ever, will the middleman disappear? 21. What should be the future line of growth in market reform? Explain the present and probable future field of the collective bargain. 22. Comment on the Mail Order House question; Butter Marketing at Grand Rapids; California Almond Growers' Brokerage problem. QUESTIONS SUGGESTED BY THE TEXT 1. To what extent should the State give aid to farmers in marketing their products? 2. To what extent should combines among farmers be legalized? 3. How should the selling price of farm products be determined and by whom? 4. Formulate an ideal system of storage, transportation, and credit for farm products. REFERENCES 1. BROWN, BLISS S.: "Modern Fruit Marketing." New York, 1916. 2. FILLEY, H. C.: "From Cardoor to Consumer," Circular No. 5, Nebraska Agricultural Experiment Station, January 1, 1918. 3. FITTS, EDWARD B.: "Marketing Hogs in Oregon." Extension Bulletin No. 214, Oregon Agricultural College, August, 1917. 4. WELD, L. D. H.: "The Marketing of Farm Products." New York, 1916. 5. HOLMES, GEORGE K.: “Systems of Marketing Farm Products and Demand for Such Products at Trade Centers." Report No. 98, United States Department of Agriculture. Washington, January, 1913. Contains accounts of all principal coöperative associations in the United States in 1913. 6. ADAMS, A. B.: 'Marketing Perishable Farm Products," Columbia University studies, Vol. 72, No. 3, 1916. 7. KERR, W. H., AND WELD, L. D. H.: "Prices of Wheat to Producers in Kansas," etc. 63 Cong. 3 Sess., House Doc. 1271, Washington, 1914. 8. HUEBNER, GROVER: Agricultural Commerce, "New York, 1915. 9. BENJAMIN, EARL W.: ment of Agriculture, Albany, 10. MYRICK, HERBERT: "Market Egg Problems," Bulletin 65, Depart1914, 368-385. 'How to Coöperate." New York, 1891. 11. NOURSE, EDWIN GRISWOLD: "The Chicago Produce Market," New York, 1918. 12. POE, CLARENCE: "How Farmers Coöperate and Double Profits," New York, 1915. 13. NYSTROM, PAUL H.: "The Economics of Retailing," 1915. 14. BAILEY, L. H. (Editor): "Cyclopedia of Agriculture," Vol. 4, 239–269. 15. American Economic Review, IX, No. 1, March, 1919. Papers and Proceedings of 35th Annual Meeting. Effects of Government Control on Marketing Methods and Costs: Discussions by Hibbard, Boyle and Smith, pp. 47-61. Some purposes of price fixing and its results: G. F. Warren. 233-246. 16. "Minnesota Studies in Marketing Farm Produce," 1915, pp. 1-113. Discussion of following subjects: livestock; potatoes; poultry; milk; city market of Minneapolis; grain; food supply of the Iron Range. 17. "National Conference on Marketing and Farm Credits," Chicago, 1913; 1915; 1916. 18. "Industrial Commission Report," Vol. VI, 5-297; 337-454, 1900, Vol. IX, xc-c, 1901; Vol. X, cexciii, 1901. 19. Yearbook Department of Agriculture: 1899, "Dairy Development," 381-403; 1900, "Influence of Rye on the Price of Wheat," 167-183; 1901, "Wheat Ports of the Pacific Coast," 567-581; 1902, "Distribution and Magnitude of Poultry and Egg Industry," 295-309; 1904, "Consumers' Fancies," 417-435; 1909, "Methods and Costs of Marketing," 161-173; 1910, “Effect of Present Method of Handling Eggs on the Industry and the Product," 461-477; 1911, "Handling and Marketing of Eggs," 467-479; 1911, "Reduction of Waste in Marketing," 165-176; 1912, CORBETT, L. C.: "A Successful Method of Marketing Vegetable Products," 353-363; 1912, PIERCE, H. C.: "How the Produce Dealer May Improve the Quality of Poultry and Eggs," 345-353; 1912, PENNINGTON, M. E.: "The Handling of Dressed Poultry One Thousand Miles from the Market," 285-293; 1915, WILCOx, E. V.: "How Hawaii Helps the Farmers Market their Produce," 131-146; 1915, CLARK, E. D.: "Shipping Fish Three Thousand Miles," 155-158; 1915, WOLFE, STANLEY L.: Pointers on Marketing Woodlot Products," 121-130; 1918, FOLGER, J. C.: "The Commercial Apple Industry of the United States," 367-379. 20. BUTLER, RALPH STARR: 'Marketing Methods" (Vol. 5, Modern Business, Alexander Hamilton Institute, New York, 1917), pp. 1-140; 206– 225; 322-335. 21. SWINNEY, JOHN B.: "Merchandising" (Vol. 19, Modern Business, Alexander Hamilton Institute, New York, 1917), pp. 298-348. 22. On Milk Marketing.-Files of official organs of organized milk producers, as follows: (a) Dairymen's League News (Watertown, New York); (b) Oregon League Dairyman (Portland, Oregon); (c) The Milk News (Chicago); (d) Dairymen's Price Reporter (Youngstown, Ohio); (c) New England Dairyman (Boston). Independent paper: The Milk Reporter (Suffolk, New Jersey). Also following sources-BABCOCK, H. E.: "The Dairymen's League," Cornell Countryman, March, 1919; National Milk Producers Federation (By-laws), "Marketing and Farm Credits Conference," Chicago, 1916, 430432; CAVERT, W. L.: "Milk Distribution in Minneapolis and St. Paul," Uni. of Minn. Studies in the Marketing of Farm Products, No. 4, Feb., 1915, 73-87; HORTON, H. E.: "Marketing Whole Milk, Marketing and Farm Credits Conference," Chicago, 1916, 401-409; BUSH, GWENDELL: "New York Milk Fight" (same volume), 409-418; KIRKPATRICK, K. A.: "Marketing Milk in the Twin Cities" (same volume), 418-421; Milk Producers Federation (same volume), 421-425; WHEELER, WILFRED: " Marketing Milk in New England, Marketing and Farm Credits Conference," Chicago, 1915, 141-151; KITTLE, W. J.: "Distribution of Whole Milk in Chicago" (same volume), 152-158; Chicago Milk Producers Association: "Marketing and Farm Credits Conference," Chicago, 1913, 128-131; Report of Fair Price Milk Committee of the City of New York and the Commission on High Cost of Living," Legislative Document No. 29, New York, 1920; “Primary Report of Joint Committee on Dairy Products, Livestock and Poultry," 1917 (So-called Wicks Report, Albany, N. Y.); "Development of the Coöperative Associations Controlling Dairy Production in the United States from 1906 to 1916," Hoard's Dairyman, Nov. 3, 1916. (Same, reviewed in International Review of Agricultural Economics, Feb., 1917, 37-39); ABBOTT, STANLEY H.: "Experience of the Boston Cooperative Milk Producers Company with the Sherman Anti-Trust Act, Bulletin 35, Dept. of Ag., Albany, 1912, 1127-1133; "Report of Governors' Tri-State Milk Commission to Governors of Pennsylvania, Maryland, Delaware," 1917. Also following publications of milk product companies: "The Powder Magazine, Syracuse, N. Y., Published by Merrell-Soule Co. Also: "The Milk Dealer," Milwaukee, Wisconsin, The National Journal for the city milk trade: official organ of the International Milk Dealers Association, and the Minnesota Milk Dealers Association. Also following miscellaneous-WARBER, G. P.: "A Study of Prices and Quality of Creamery Butter," Bulletin 682, U. S. D. A., July, 1918; POTTS, ROY C., AND MEYER, H. F.: "Marketing Creamery Butter, Bulletin 456, U. S. D. A., 1917; POTTS, ROY C.: "Marketing Practices of Wisconsin and Minnesota Creameries," Bulletin 690, U. S. D. A., 1918; MACKLIN, THEODORE: "The Marketing of Kansas Butter," Bulletin 216, Kans. Ag. Ex. Sta., 1917; LARKIN, M. LIPPIT: "The Butter Market," Journal of Political Economy, March, 1912, 267-274; "Butter Prices from Producer to Consumer," Bulletin 164, Bureau of Labor Statistics, Washington, 1914; HIBBARD, B. H., AND ERDMAN, H. E.: "Marketing Wisconsin Milk," Bulletin 285, Wisc. Ag. Exp. Sta., 1917; TAYLOR, H. C., SCHOENFELD, W. A., AND WEHRWEIN, G. S.: "The Marketing of Wisconsin Cheese," Bulletin 231, Wisc. Ag. Exp. Sta., 1913; "Investigation and Analysis of the Production, Transportation, Inspection, and Distribution of Milk and Cream in New England," prepared by the Boston Chamber of Commerce, Bulletin 22, Department of Ag. of Vermont, St. Albans, July, 1915; "British National Milk Policy," Hoard's Dairyman, Feb. 6, 1920, 126; "Coöperative Dairymen in Vancouver," Grain Grower's Guide, Oct. 22, 1919, 8; HOLMAN, CHAS.: "Ohio Milk Producers Jailed," American Cooperative Journal, Sept., 1919; "Detroit Milk Situation," Michigan Farmer, Dec. 8, 1917; HEDRICK, W. O., AND ANDERSON, A. C.: "The Detroit Commission Plan of City Milk Administration," Special Bulletin 99, Michigan Ag. College, 1919. APPENDIX The Mail Order House. The mail order house is an agricultura. problem for two somewhat incongruous reasons. In the first place the big honest mail order house renders the farmer a big service by bringing to his mailbox or to his nearest freight depot, a standard set of goods at a fair cash price. It also, however, by this same service, is a competitor of the nearby village merchants, and this competition may sap the life of the country town. And the country town is the one strong element in raising land values, bringing to the isolated farmer the services of doctors, dentists, bankers, merchants, and others, and adding in innumerable ways to the fullness of farm life. This is not the proper place to enter into a prolonged discussion of the merits and demerits of a mail order house. There is one way, at least, to meet the situation, fair to both sides. It is illustrated by the case of the housewife who made out her grocery order, amounting to $50.12, from the latest price list of a great mail order house. She took this list to the local grocer who studied it carefully and then either duplicated or improved upon every item listed thereon, and filled the order for $48.12 in cash. He met the mail order problem successfully. "Eliminating the Middleman."-(Address by W. B. Liverance, before the 20th Convention of National Creamery Buttermakers Association, Milwaukee, 1917.) Speaking of the recent federation of coöperative creameries near Grand Rapids, Michigan, Mr. Liverance said: "The one great idea in organizing our association was, by combining the output of our creameries and by improving the quality, to secure better markets for our butter. We, at the outset, had many wild theories of distributing butter direct to the consumer, of perfecting a marketing system in many of the large cities, of eliminating the middleman completely, etc. We were in the class of many of the impractical theorists of to-day. We worked out schemes of house-to-house disposal of butter, of distributing butter direct from the creamery to the retailer, and many others of similar nature. took us a year or better to realize that it takes money to market butter It "" Cutting Out the Middlemen, or Selling Through the Middlemen.—(The experience of the California Almond Growers Exchange, 1918 report, p. 12.) "The Eastern broker received 21⁄2 per cent for his services, which consist of the following: Soliciting orders from customers; forwarding them to the Exchange; telegraphing when necessary; and unloading and distributing our cars on arrival. Two and one-half per cent is a very reasonable brokerage for the service rendered." CHAPTER X COÖPERATION "COÖPERATION" in agriculture is one of those vague things which every writer, speaker, and politician usually endorses. The word has come to be used very loosely. It needs defining. The word is now used in a broad and in a narrow sense. It is well at this point to inquire into both the broader and the narrower use of the term. In the Broader Sense.-Coöperation is the term often used to designate the working together for mutual benefit of the farmers, on the one hand, and the commercial clubs of the town, the bankers, the railroads, the big industries, etc., on the other hand. And, in the broader sense, this is true coöperation. This meaning can easily be illustrated. For instance, the Binghamton Chamber of Commerce (of Binghamton, Broome County, New York) was among the first, if not the very first, to organize what is now known as a Farm Bureau. When organized and financed, the Bureau represented the Chamber of Commerce, the Delaware, Lackawanna & Western Railroad Company, and the United States Department of Agriculture. The city of Binghamton and the railroad company both frankly recognized that their welfare depended fundamentally on the agriculture of the community. The Chamber of Commerce stated the case plainly to the farmers, and secured their endorsement, on the grounds that they would either all prosper together or all suffer together. A county agricultural agent-a genuine community farm expert-was employed. The Farm Bureau department of the Chamber of Commerce proved a success far greater than its organizers had hoped. Since its beginning in 1911 this broad experiment in coöperation of town and country has been an example for other towns to follow. A second example of coöperation in this broader sense is that of the bankers of the State of Alabama with the farmers of that section. Alabama has produced one of the greatest agricultural leaders of the day in the person of Mrs. G. H. Mathis (Fig. 23), an actual farmer. She advised the bankers to take more interest in the farmer and less interest from him, to encourage the landlords to establish friendly and helpful relations with their tenants 158 |