Herbert Hoover: The Man and His WorkKellogg, Vernon L. (Vernon Lyman)
History
Herbert Hoover: The Man and His Work
Kellogg, Vernon L. (Vernon Lyman)
Hoover, Herbert, 1874-1964; World War, 1914-1918 -- Food supply
Another factor in transportation bearing upon the problem of marketing
is the control by food manufacturing and marketing concerns of
refrigeration and other special types of cars. This special control has
grown up largely because, owing to seasonal changes in regional
occupation for these cars over different parts of the country, no one
railway wished to provide sufficient special cars and service for use
that may come its way only part of the year. The result has been to
force the building up of a domination by certain concerns who control
many of the cars and stifle free competition. Much the same results have
been attained by special groups in control of stock yards and, in some
cases, of elevators. Where such formal or informal monopolies grow up,
they are public utilities, and if the farmer is to have a free market
they must be replaced by constructive public service.
A FREE MARKET
Every impediment to free marketing in produce either gives special
privileges or increases the risks which the farmer must pay for in
diminished returns. We have some commodities where manufacture has grown
into such units that these units exert such an influence that they
consciously or unconsciously affect the price levels of the farmer's
produce. When a few concerns have the duty of manufacturing and storing
the seasonal reserves in a single commodity they naturally reduce prices
during the heavy production season and increase them in the short season
as a method of diminishing their risk and increasing profits. Moreover,
their tendency is often to sell the minor portion of their product that
goes for export at lower than the domestic price in order to dispose of
it without depressing local prices. They do not need to conspire, for
there can be perfectly coincident action to meet the same economic
currents. Such coincidence has much greater possibilities of general
influence with a few concerns in the field than if there were many.
Public-domain text, read in full here on John Shaqi.
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