Suppose, for illustration, two merchants in the same town are each
doing a business with a twenty per cent. profit, and are buying eggs
at ten cents and selling for eleven, the cent advance being
sufficient to pay for their labor, incidental loss, and a small
profit. Now one merchant concludes to play for more trade. If he
marks his goods down he would gain some trade, but many people would
fear his goods were cheap. But if he puts up a placard, "Eleven
Cents Paid For Eggs," the farmers will throng his store and never
question the quality of his goods. This move having been successful,
his rival across the street quietly stocks up with a cheaper line of
dry goods, and some fine morning puts out a card, "Twelve Cents For
Eggs." The farm wagons this week will be hitched on the other side
of the street.
The rate of business at ten per cent, being insufficient to maintain
two men in the town, a mutual understanding is gradually brought
about by which the prices of goods sold are worked back to the basis
of twenty per cent, gross profit, but the false price of eggs will
serve to draw the trade from neighboring towns and is therefore
maintained.
As a matter of fact the price paid to farmers for eggs by the
general stores of the Mississippi Valley is frequently one to two
cents above the price at which the storekeeper sells the product.
Allowing the cost of handling, we have a condition prevailing in
which the merchant is handling eggs at from five to ten per cent.
loss, and it stands to reason that he is making up the loss by
adding that per cent. to his profits on his goods. Some of the
effects of this system are:
1--The inflated prices of merchandise is an injustice to the
townspeople and to farmers not selling produce, in fact it amounts
to a taxation of these people for the benefit of the egg producers.
2--The inflated prices of merchant's wares work to his disadvantage
in competition with mail order or out-of-town trade. 3--The farmer
who exchanges eggs for dry goods is not being paid more for his
eggs, save as the tax on the townspeople contributes a little to
that end, but is in the main merely swapping more dollars. 4--The
use of eggs as a drawing card for trade works in favor of inferior
produce, and the loss to the farmer through the lowering of prices
thus caused, is much greater than his gain through the forced
contributions of his neighbors.
The Huckster.
The huckster or peddling wagon which gathers eggs and other produce
directly from the farm, prevail east and south of a line drawn from
Galveston to Chicago through Texarkana, Ark., Springfield, Mo., and
St. Louis. North and west of this line the huckster is almost
unknown.
The huckster wagons may be of the following types:
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