r | Farmer and
| Per 100 Lbs. | 100 Lbs. Hogs | Consumer
------------------------------------------------------
1914 | $7.45 | $18.97 | $11.52
1919 | 16.27 | 37.33 | 21.06
1920 | 15.37 | 37.71 | 22.34
------------------------------------------------------

Thus, while the farmer has gained about $7.92 in his price, the margin
has increased by $10.82 to the consumer and, incidentally, during the
last year since food control restraints were removed, the consumer has
paid $.30 more while the farmer got $.90 less. These instances could be
greatly multiplied.

It is unfortunate that our national statistics do not permit a complete
analysis of the distribution of margin between all the various groups in
the chain between the farmer and consumer in different commodities. It
would be helpful if we could take the farmers, railways, manufacturers,
wholesalers and retailers, and determine what proportion each receives.

These margins between farmer and consumer are made up of a necessary
chain of charges for transport, storage, manufacture and distribution.
The great majority of citizens who are engaged in the processes that go
to make up this portion of food costs are employed in an obviously
essential economic function, and they do not approach it in a spirit of
criminality, but as a very necessary, proper, and honorable function.
They have, since the European War began, rather over-enjoyed the result
of economic forces that were not of their own creation. That a
considerable margin is necessary to cover the legitimate costs of, and
profits on, distribution is obvious. The only direction of inquiry is
how they can be legitimately minimized. These margins, starting from the
unduly high expense of a faulty system, have increased not only
legitimately, due to increased transportation, labor, rent, taxes, and
increased interest upon the large capital required, but they have,
except during the period of control, increased unduly beyond these
necessities. There are two general characteristics of this margin that
are of some interest. In the first instance, all of the transport,
storage, manufacture and handling is conducted upon a basis of cost plus
either fixed returns or, as is more usually the case, a percentage of
profit upon the whole cost of operation. Any distributing agency ceases
to operate when it does not secure costs and a profit. Consequently,