Show n e r it c U 7 t tr r e n t Lo Angeles May The 31 31 The question I of country buying has assumed great greater I contro er Cr proportions than a mere merc I contro-I contro- contro controversy I versy ersy or difference of opinion for the thereaS reaS reason n that the practice has upset i I I the very means of creating values I I It has been amply shown that where split purchases are made between the central markets and the country no matter whether it be at concentration concentration concentration tion points or otherwise the effect hits the producer right between the so to speak because it splits the purchasing power which if fully expressed either at the central mar mar- mar mar- ket market or at the concentration point would be to the advantage of the I producers so the producers are about to the point where they will have to deride decide inthe whether they want to sell sen in the country or have a market In III this connection it ma may be wen well to glimpse at the origin of these country operations They were start started started ed 00 m in the early days throughout Iowa and Illinois largely to supply ho hogs to certain New v England packing Chicago plants owned or controlled by Chi Chi- Chi cago caw packing interests and for the evident buying purpose of keeping the buy buy- Ing ing power of these New England plants plants out of the central market The atthe inroads thus made upon receipts at the markets marl especially when supplies were low began to hurt so other packers also went into the tIle concentration tion business establishing agencies throughout the States of Illinois and throughout Iowa and finally extending through through- h- h hout out the Northwest cst and Southwest All of these points are for lor the concentration con con- concentration con concentration of hogs and it has n never ver vern been t vert n seriously attempted in the case of cattle because of the difficulty in m n identifying cattle in the country with n market quotations there being such suc suca sucha h a grunt groat variety that comparisons a s to asto ato quality and finish are arc extremely difficult whereas it is comparatively easy with hogs as the weight t largely governs the price A recent complaint filed before belore the th e Interstate Commerce Commission t brings out the railroad situa situation tion Pointing out that the railroads ar are e P Performing an extra service in al- al al lowing allowing concentration at country y points feints for which Ule they should be paid pal t tin d in m addition to the regula r I I I I charges and md of course whenever r such a showing can be proven pro un- un unI undoubtedly undoubtedly un undoubtedly the railroad company wiIl wit 1 receive re an additional charge because there is a limit to the auxiliary set ser selI service vice that a rl railroad company ma may Y perform in the transportation of l a commodity without extra pap pa pay for lor th the e extra work and we can cnn appreciate e that in addition to the regular sto stop P for feed and rest which the law exacts ex- ex exacts ex exacts acts that each additional stop fOl fo forthe 1 the purpose of concentration or otherwise other otherwise r wise vise might be quite burdensome upon n the carrier The general basis of operation is i ithe s the open market price less the cos cosof cost st of the transportation from the con con- concentration concentration con concentration point The bait held out outto o outto ut to the producer was that he was b bing be- be being be being e ing 5 saved ve the cost of putting his h is stock t through h the market but he was not told that he lie lost the fill the t ae value of which would go a long Ions wn way y towards paying the cost of market market- marketing marketing t- t ing Neither was it explained that th at the split demand at the market would ld weaken ken values so that the price r re- re received re received e in the country would natural ly be a reflection of that situation in- in instead in instead in instead a stead of a Price created by the full full- fullest ful full fullest est eat representation and competitive re buying We Wo may fairly conclude in inthis ran inthis I this question that there arc are two rea- rea reasons rea reasons sons why uhf the packers go to the coun coun- country country country try a In case of an acute shortage shortage more or less ofa of a L temporary condi condi- condition condition condition tion b In search of bargains which is usually the dominant factor It is the same old question of split purchasing power with ith all of the ill falling faIling upon the producer In Incer certain in sections of the country a ranch to ranch canvas camas is ma made e by the tho packers and that is another way to split the purchasing power Central markets hav have the greatest g value to the producer only when the buying buy ng- ng and selling power is centered there and while individual farmers may get some ome temporary advantage antage by sell sell- sell selling mg ing at the ranch they are at It the neighbors same time only hurting hurting- their neigh neigh- bona bors but in the end hurting themselves themselves ves yes because if that method became the rule instead of the exception there Would be no way say of establish in ins r VA values lues 4 |