UC-NRLF 
 
 Marketing Survey of New Haven 
 
 Conducted for the 
 
 Town and City Improvement Committee of the 
 New Haven Chamber ui Commerce 
 
 BY 
 
 L. D. H. WELD 
 
 Professor of Business Administration 
 
 Sheffield Scientific School 
 
 Yale University 
 
 HI) V.Y 
 
 BADGER, H. A. BRANDT, J. D. IT A\D H. B. PRICE 
 
 Graduate Students in Economics, Yale University 
 
GIFT OF 
 
arketing Survey of New Haven 
 
 Conducted for the 
 
 Town and City Improvement Committee of the 
 New Haven Chamber of Commerce 
 
 BY 
 
 L. D. H. WELD 
 M 
 
 Professor of Business Administration 
 
 Sheffield Scientific School 
 
 Yale University 
 
 ASSISTED BY 
 
 |R. E. BADGER, H. A. BRANDT, J. D. HAUSLEIN, AND H. B. PRICE 
 Graduate Students in Economics, Yale University 
 
INTRODUCTION 
 
 For several years the citizens of New Haven have been dissatisfied with 
 certain features of the marketing system of the city, and there has been 
 constant agitation for some kind of reform. Numerous attempts have been 
 made to bring action with respect to the organization and maintenance of 
 a public market for farmers, but such attempts have always come to naught. 
 
 One difficulty in the problem has been that the people of New Haven 
 have not had an unanimous opinion as to just what ought to be done. Some 
 have favored a public wholesale market for farmers; others have believed 
 that a retail farmers' market should be established; and still another group 
 have believed that the principal need is a public retail market where spaces 
 shall be rented to retail merchants. In view of this difference of opinion, 
 and the need of centering on the most important phase of the problem, the 
 Town and City Improvement Committee of the New Haven Chamber of 
 Commerce, which has taken the matter up, decided to make a survey of 
 marketing conditions in New Haven, for the purpose of deciding just what 
 should be done, and with the hope that a method of procedure resulting from 
 such an investigation would result in definite action. The results of this 
 investigation are presented in this report. 
 
 This survey of marketing methods and conditions in New Haven does not 
 pretend to represent a complete and thorough study of the situation. 
 Enough material has been gathered, however, to point out New Haven's 
 principal need. As a perusal of the report will show, the conditions sur- 
 rounding the farmers' wholesale market in Commerce Street are decidedly 
 unsatisfactory, and the evidence is overwhelming that the greatest need is 
 to have a properly organized and operated wholesale market for farmers. 
 If this report succeeds in crystallizing public opinion on this point, and 
 leads to prompt and definite action in this direction, the men who have 
 given their time in making the study will feel amply repaid, and the New 
 Haven Chamber of Commerce will have performed an important service. 
 Yale University will also feel gratified if it has been of service to New 
 Haven through the cooperation with the Chamber of Commerce in making 
 this survey. 
 
 The editor of this report, who planned and supervised the survey, has had 
 the able assistance of four graduate students in Yale University, who are 
 specializing in marketing subjects. These men are R. E. Badger, H. A. 
 Brandt, J. D. Hauslein, and H. B. Price. To them belongs a large part of 
 the credit for the gathering of the valuable and interesting information 
 contained in the report. The cooperation of the New Haven Housewives' 
 League has also been of value, inasmuch as this organization gathered 
 information on buying methods of about 150 New Haven housewives. The 
 courtesy of New Haven merchants in giving freely information which was 
 of a confidential nature, also is acknowledged. 
 
 L. D. H. WELD, 
 
 Professor of Business Administration, 
 Sheffield Scientific School, Yale University. 
 
CONTENTS 
 
 PAGE 
 
 Introduction 2 
 
 CHAPTER I 
 The Wholesale Fruit and Produce Trade 4 
 
 CHAPTER II 
 New Haven Retail Stores 7 
 
 CHAPTER III 
 The Truck Growers 10 
 
 CHAPTER IV 
 The Commerce Street Market and Farmers' Markets in Other Cities . . 13 
 
 CHAPTER V . 
 The Marketing of Butter and Eggs in New Haven 18 
 
 CHAPTER VI 
 The Marketing of Meat in New Haven 29 
 
 CHAPTER VII 
 New Haven's Milk Supply 37 
 
 CHAPTER VIII 
 How New Haven Housewives Purchase 45 
 
 CHAPTER IX 
 
 Comparison of Prices in New Haven with Prices in Ne.w York, Bridge- 
 port, Hartford, and Springfield 48 
 
 CHAPTER X 
 Conclusions and Recommendations 50 
 
 49150C 
 
CHAPTER I 
 
 THE WHOLESALE FRUIT AND PRODUCE TRADE 
 In the largest cities the wholesale trade in fruit and produce is generally 
 divided into two sets of dealers, first, the commission houses or wholesale 
 receivers, who obtain goods in large quantities direct from country shippers, 
 and second, jobbers, who buy goods in wholesale lots from the first group, 
 and sell in small quantities to retail stores, hotels, etc. In smaller cities the 
 wholesale houses take the form of jobbers, who buy their 'supplies mainly 
 from the commission men or wholesale receivers in the larger cities, rather 
 than direct from country shippers. This is the case in New Haven ; the 
 wholesalers are jobbers, who buy very little direct from the country, and who 
 buy their goods from dealers in large trade centers, especially in New York. 
 There appear to be about 12 or 14 of these wholesalers or jobbers in New 
 Haven. Four of these are much larger than the others, and these four 
 together do an annual business of approximately one million dollars. The 
 other 8 or 10, many of whom are very small, do perhaps a combined business 
 of another million, making a total of about two million dollars in all. This 
 is a mere estimate, as exact figures are difficult to obtain. There are two 
 or three that specialize in bananas, but most of these companies carry a 
 general line of fruits and vegetables, most of which are brought from points 
 outside of New Haven. 
 
 Most of these houses are located on George Street, on lower State Street, 
 and also at the lower end of Commerce Street, in close proximity to the 
 farmers' market. In most cities the wholesale trade is more highly localized 
 than in New Haven, but the absence of a well organized farmers' market, 
 and the uncertainty as to the future location of this market, have probably 
 had the effect of keeping the wholesalers from obtaining permanent locations 
 in closer proximity to each other. 
 
 WHERE WHOLESALERS BUY 
 
 As already mentioned the New Haven wholesalers buy very largely in 
 the New York market. They cannot buy direct from country shippers to 
 any large extent, because goods from the country come to market in such 
 a variety of qualities and quantities from day to day, that the local market 
 could not absorb efficiently and economically goods obtained in this way. 
 About six of the larger houses send buyers to New York every day, both 
 to buy goods and to keep in close touch with the market. Some of them 
 occasionally send buyers south to Maryland, Delaware, and Norfolk during 
 the season when farm produce is moving in large quantities from that 
 section of the country, and even occasionally to Florida. When this is 
 done, goods are often bought in those localities and shipped direct in car 
 lots to New Haven. When goods are bought in New York they are generally 
 bought f.o.b. that city, the local jobber paying the freight to New Haven. 
 Goods are brought from New York largely by steamer rather than by rail, 
 
5- 
 
 and are usually hauled from the dock to the jobber's store during the night 
 or early in the morning. 
 
 The local jobbers also buy some goods in the farmers' market, but on 
 account of the congestion in that market, and the inability to get their teams 
 through the market, they do not find it convenient to buy much produce in 
 this way. Some farmers who have not succeeded in disposing of all their 
 goods in the Commerce Street Market, sell the remainder to wholesalers; 
 and some farmers rather than try to sell their goods under the unsatisfactory 
 conditions existing in the Commerce Street Market, sell all of their goods 
 -to wholesalers. On the whole the wholesalers do not handle in large quan- 
 tities during the summer those goods which local farmers are bringing to 
 market. In the winter, on the other hand, they handle practically every- 
 thing outside of meats, butter, and eggs. 
 
 HOW THE WHOLESALERS SELL 
 
 The local wholesalers sell principally to retail stores, and during the winter 
 to hucksters. A few of them even send teams into the Commerce Street 
 Market during the summer to sell to hucksters in competition with the 
 farmers themselves. The goods they sell in this way are bought partly from 
 farmers but consist principally of goods brought in from outside, which are 
 not raised in the vicinity of New Haven, and with which the hucksters must 
 stock their wagons before they start their daily rounds from house to house. 
 The method that has always been in use by the wholesalers in selling to 
 retail stores has been primitive and unsatisfactory, in that they have always 
 followed the practice of stocking their wagons with produce early in the 
 morning and peddling it about from store to store, whereas the usual way 
 in large cities is to procure orders through salesmen or by telephone, and 
 then to deliver only such goods as are ordered. The disadvantages of taking 
 out unsold goods and peddling them about from store to store are as 
 follows : Since the goods are exposed to the elements, they become dirty and 
 dusty, and in the winter, frost bitten; it is impossible to know just how 
 much will be wanted of each commodity and consequently they frequently 
 take out an insufficient supply of some articles, and have too much of others, 
 with the result some goods are usually left over, and have to be brought 
 back to the store and kept over night with consequent deterioration; when 
 goods are peddled from store to store, the store keepers pick over the goods, 
 selecting the best, thus leaving inferior stuff for other stores. This also 
 results in a rather poor adjustment of prices to actual quality of goods. The 
 jobbers also estimate that this is a more costly method of selling than by 
 sending out order takers and delivering only such goods as are ordered. 
 
 Fortunately, a definite attempt has been made during the winter of 1916-17 
 to do away with this unsatisfactory method of selling to retail stores, and 
 a few of the largest houses have definitely adopted the policy of sending out 
 men to take orders, and then delivering only such goods as are definitely 
 ordered. The wholesalers are to be commended for their action in this 
 matter. It will undoubtedly result in more economical methods of distribu- 
 tion, and in supplying retail stores with produce of better quality. 
 
CREDIT CONDITIONS 
 
 Although bills are supposed to be payable weekly, the wholesalers complain 
 that credit conditions are in a very unsatisfactory state. Although the losses 
 from bad debts are not large, yet so many of the retail merchants allow 
 their bills to run indefinitely that the wholesalers have to keep a large 
 amount of capital tied up in their business, and are put to considerable 
 collection expense. They find it difficult to overcome this condition, because 
 if any jobber attempts to enforce the weekly settlement plan strictly, he is 
 apt to lose trade to other concerns who are liberal with their credits. In 
 some cities this difficulty has been overcome by associative action among the 
 wholesalers, who maintain a credit bureau which keeps track of accounts 
 with all retailers. Bills have to be settled by a certain day of each week, 
 and dealers are required to pay cash if they have not paid by the stipulated 
 date. 
 
 MARGINS TAKEN BY WHOLESALERS 
 
 On the whole, the margins of gross profit taken out by wholesalers are 
 relatively small. For example, when jobbers were paying from $1.80 to 
 $1.85 per bushel for potatoes laid down in New Haven, they were selling 
 to retail stores at $2.00 a bushel. When they were buying onions for $5.25 
 a sack, they were selling them for $5.50. When oranges cost them $3.00 a 
 box laid down in New Haven, they usually sell them to retailers for $3.25 
 a box. No figures were obtained on the actual cost of doing business in 
 these houses, but in most cities it averages from 5 to 7 per cent of the sales, 
 and this is probably the case in New Haven. 
 
 ATTITUDE TOWARD THE COMMERCE STREET MARKET 
 All of the wholesalers interviewed, claimed that the present conditions in 
 the Commerce Street Market are extremely unsatisfactory. They say that 
 farmers have to come to market at an unreasonably early hour to obtain suit- 
 able locations; that there is no suitable place for hucksters to keep their 
 wagons while they are buying produce from the farmers; and that it is 
 impossible for the wholesalers to buy and sell in this market conveniently. 
 Most of them expressed a willingness and desire to be located within close 
 proximity of the farmers' wholesale market, and said that they would be glad 
 to rent buildings near it, if a permanent location should be decided upon. 
 Most of them believe that the city should furnish and operate a farmers' mar- 
 ket; they also suggest that the city should furnish market buildings in or 
 near such a market to be rented to the wholesale dealers. They complain that 
 sharp practices and thieving are common in the present market, and that 
 there really "is no market," meaning that there is no definite market price, 
 owing to the disorganized condition. The wholesalers all agree that the 
 principal need in New Haven is a well organized and operated farmers' 
 market, with definite spaces assigned to individual farmers, and rents 
 charged therefor. 
 
CHAPTER II 
 
 NEW HAVEN RETAIL STORES 
 
 In order to obtain information as to how retail grocers of New Haven 
 buy their supplies, how they handle them, etc., personal visits were made 
 to 44 retailers in different parts of the city. The stores visited are of the 
 greatest variety: some are chain stores, some are fancy grocers, some are 
 the large State Street stores, and a good many are small single stores in 
 the outlying districts of the city. 
 
 SOURCE OF SUPPLIES 
 
 Information was obtained as to where the retailers buy their supplies of 
 fruits and vegetables, butter and eggs, and meats. Practically all of them 
 buy the bulk of their fruits and vegetables from New Haven wholesalers, 
 and 12 of them buy solely from this source. Twenty-five of the 44 stores 
 buy also direct from growers, and 7 of the largest houses buy direct from 
 New York wholesalers. Those who buy direct from New York send buyers 
 to that city. 
 
 It has been explained in the chapter on the wholesale trade that it has 
 always been the custom for the wholesale produce dealers to peddle produce 
 from their wagons to the retail stores, rather than to take orders ahead. 
 It was explained that this is a primitive and wasteful method, and that dur- 
 ing the winter of 1916-17 the wholesalers have made an attempt to sub- 
 stitute the method of taking orders in advance. This attempt was under 
 way when the retailers were visited in this investigation, and a special effort 
 was made to find out whether the retailers were ordering ahead or buying 
 from wholesalers' wagons. Out of 39 reporting on this point, only 14 said 
 that they were ordering their goods in advance, another 14 said they bought 
 in both ways, and n that they bought entirely from the wagons of whole- 
 salers. Many of the retailers claimed that they preferred to buy from 
 wholesalers' wagons, because they then had an opportunity to select their 
 stuff more carefully, and to see just what they were getting. Many of the 
 small wholesalers still sell entirely from their wagons, and the transition to 
 the method of ordering ahead has been only partially accomplished. On the 
 whole, the better and larger retailers are favorable to ordering goods ahead. 
 
 In some, cases a wholesale huckster or peddler appears between the regular 
 New Haven wholesaler and the retail store. This is especially true in out- 
 lying sections of the city. For example, out of 6 stores visited in the City 
 Point section, 3 reported that they buy principally from hucksters. The 
 reason for this is that the wholesale dealers cannot afford to cover the 
 smallest stores in some of the outlying districts, and these stores cannot 
 buy in large enough quantities to buy regularly. Hence an additional 
 middleman appears in the few such cases. 
 
 In buying direct from growers, the goods are delivered by the growers 
 in practically all cases. About half of the retailers have arrangements with 
 growers to call on them regularly. In a few cases the growers call the 
 stores by telephone to find out what they shall bring the next day, but more 
 
often they find out on one day's visit what they shall bring the next. Buy- 
 ing direct from growers is practically limited, of course, to the summer 
 months. During the winter the retailers have to rely almost wholly on 
 local wholesalers. 
 
 Retailers pay growers cash, but in buying from wholesalers bills are 
 supposed to be payable weekly in the majority of instances. As a matter of 
 fact, weekly payments are not lived up to and the credit conditions between 
 New Haven wholesalers and retailers are in an unsatisfactory condition, 
 as explained above. 
 
 DELIVERIES 
 
 Of the 43 stores from whom information was received on this point, 8 
 have no delivery service at all, 22 deliver only in the section of the city 
 where they are located, and 13 deliver to all parts of the city. Among those 
 that make no deliveries are some of the large down-town cash stores, as 
 well as some small neighborhood stores. Of those that make deliveries, 2 
 use only messenger boys and 3 use push carts; there are 24 that use autos, 
 and 9 of these use wagons in addition to autos. Of those making deliveries, 
 9 deliver irregularly, 2 make only I delivery a day, 5 make 2 deliveries a 
 day, 3 make 3 a day, 8 make 4 a day, and 3 make 5 or more. Most of the 
 large State Street stores make 4 deliveries a day. 
 
 The old custom of soliciting orders from house to house appears to be 
 on the decline in New Haven. In the Whitney Avenue section practically 
 no house to house solicitation is made. In the City Point section on the 
 other hand, all of the dealers solicit orders from house to house. For the 
 whole city, out of 39 stores reporting, 16 still solicit orders and the other 23 
 do not. Some of the latter do some soliciting from regular customers by 
 telephone. 
 
 While the solicitation or orders from house to house has been decreasing, 
 the use of the telephone has been increasing. Out of 39 stores reporting on 
 this point, 21 claim that they receive a large part 'of their orders by tele- 
 phone. Only 5 say that they receive no orders at all in this way. The 
 telephone is a time-saver if used properly. The principal difficulty with this 
 method of buying is that it encourages carelessness on the part of the 
 housewife, who neglects to make up her orders for the day in the forenoon, 
 and who consequently orders small quantities by telephone later in the day. 
 The retailers were asked whether they receive unreasonable telephone 
 requests from their customers to deliver quickly. Fifteen of the retailers 
 were non-committal but 26 said that they did receive such unreasonable 
 requests, and only 3 said that they did not receive such orders. The reply 
 of one grocer to this question was, "Yes, every minute of the day!" A 
 few reply that they pay no attention to such orders, and deliver only z. 
 their regular delivery hours. 
 
 THE HANDLING OF BUTTER AND EGGS 
 
 Information was received from 39 stores concerning the source of their 
 supply of eggs. In buying strictly fresh eggs 23 reported that they obtained 
 them entirely from farmers, 5 partly from farmers and partly from whole- 
 
sale dealers, and 5 entirely from wholesalers. There are also 5 stores that 
 do not handle strictly fresh eggs at all, and one store that buys his supply 
 largely from a country merchant. It will be observed that most of the 
 strictly fresh eggs come from nearby territory. All of the stores inter- 
 viewed buy their cold storage eggs from New Haven wholesalers. One 
 store, a fancy grocery, does not handle storage eggs at all. 
 
 In the purchase of butter, 35 stores out of 36 obtain their supplies from 
 New Haven wholesalers, and the other, a fancy grocery, buys direct from 
 creameries. As pointed out in the chapter on butter and eggs, the butter 
 handled by most of the New Haven stores is not of the very highest quality, 
 and only one of the New Haven wholesalers handles the fresh country 
 creamery product. 
 
 In buying their storage butter and eggs, 30 stores out of 38 reporting 
 enter into contracts with the New Haven wholesalers. These contracts are 
 described in detail in the chapter on butter and eggs. 
 
 ATTITUDE TOWARD COMMERCE STREET MARKET 
 
 Only 13 out of 43 stores visited go to the Commerce Street Market in 
 the early morning during the summer months for their supplies of fresh 
 vegetables and fruit. This situation is somewhat different from that found 
 in other cities, where retailers more commonly buy in the farmers' whole- 
 sale market. Out of 31 who assigned reasons for not going to this market, 
 10 said either that they did not have time or that it was too far to the 
 market place, 3 reported that they had no facilities for bringing produce 
 from the market to their stores, 10 replied that the condition of the market 
 was so bad that they did not care to buy in it, and 8 said that the expense 
 of making the trip to market was too great. A few also complained that 
 the quality of the produce offered for sale was not attractive to them. 
 
 In addition to the 13 who do go to market there are 7 or 8 who claimed 
 that they would be glad to go if the market were properly organized, and 
 if there were proper facilities for placing their wagons in the market place. 
 Of course there are a great many small retailers in the outlying sections 
 who buy such small quantities that it would not pay them to make the trip 
 to market every morning, but there are a sufficient number of retailers who 
 would go to market if it were properly organized and operated to furnish 
 a very strong argument for an improved market place. Practically all of 
 the retailers agreed that the present condition is disgraceful, and that New 
 Haven's principal need is a properly organized wholesale market for farmers. 
 
 COMPETITION OF HUCKSTERS 
 
 * Twenty out of a total of 37 feel that the hucksters offer severe competition. 
 This is especially true during the summer and for the trade in vegetables. 
 One grocer alleged that his trade was cut in half by the operations of the 
 hucksters, but most of the grocers who feel the competition call it severe but 
 give no such extravagant figure. One grocer explained that in purchasing 
 from the huckster the housewife is often kept from coming to the store, and 
 in this way, the grocer not only loses the sale made by the huckster, but 
 
IO 
 
 also the sale of other articles that the housewife might have bought if she 
 had come to the store in the first place. One half of the grocers reporting 
 think that they are undersold by the hucksters. 
 
 The problem of waste in connection with the handling of perishables is 
 a question upon which there is a wide difference of opinion. Thirteen say 
 that there is not much waste and 20 say that there is. At least 14 out of 
 the 20 state a percentage of waste of 10 per cent or more. Four estimates 
 run over 18 per cent. Of course care in buying and price policies with 
 regard to deteriorating supplies have a good deal to do with percentages of 
 waste. One grocer explained that when he sees that he cannot hold berries 
 he reduces the price, perhaps even giving them to customers, whereas others 
 sell what they can at the price, and dump the rest. 
 
 EXTENT TO WHICH MEAT is HANDLED 
 
 Over 70 per cent of those answering, that is, 30 out of 42, handle fresh 
 meats in addition to groceries. The meat is practically all bought of New 
 Haven wholesalers. All buy whole quarters or more. 
 
 COST OF DOING BUSINESS 
 
 The figures given for the cost of doing business run all the way from 
 10 per cent to over 20 per cent. Seven give a cost of 10 per cent, three 
 from 11-14 per cent, three from 15-17 per cent, ten from 19-20 per cent, 
 and two have a cost of doing business of over 20 per cent. It is apparent, 
 however, that some of these figures are too low because in the case of the 
 10 per cent group it is known that some grocers did not include salaries for 
 themselves. Then too, in some cases the figures given are no more than 
 estimates, for many retail grocers do not have the figures upon which to 
 base an accurate statement of their costs. The average cost of doing busi- 
 ness for well-managed groceries, giving full service in the way of credits, 
 deliveries, etc., appears to, be from 17 to 20 per cent, which is about the 
 average for similar stores in other cities. This means that the grocers must 
 take gross margins of from 20 to 23 per cent of their selling prices in order 
 to make net profits of 3 per cent on their sales. Stores which do not give 
 credit and make deliveries have lower costs, and those which may be classified 
 as "fancy grocers" have higher costs. 
 
 CHAPTER III 
 
 THE TRUCK GROWERS 
 
 Inasmuch as the vegetable and fruit growers in and about New Haven 
 furnish the farm produce which is sold in the Commerce Street Market and 
 since New Haven's principal need is a well-organized market place for these 
 growers, information has been obtained from a large number of them, 
 concerning their distance from market, the time necessary for trips, whether 
 they are satisfied with present conditions, and other matters which bear on 
 the present problem. 
 
II 
 
 The growers reporting are located principally in Hamden, Highwood, 
 North Haven, Wallingford (fruit growers principally), Orange, and a few 
 other towns. Detailed information was received from 53 of them. The 
 average number of acres that the growers in Highwood and Hamden have 
 under cultivation is about 28, and ranges all the way from five to one 
 hundred acres. These growers were asked if they would increase their 
 acreage if there were a better market in New Haven, and out of 30 who 
 replied, 19 said they would do so. 
 
 The average distance over which these 53 growers have to haul their goods 
 to reach the New Haven market is &/ 2 miles. From the Highwood section, 
 it is only 4>i miles; from the Hamden section, 5 miles; from the North 
 Haven section, 6$4 miles, and from Wallingford, 12^/3 miles. The greatest 
 distance that any grower reported was 20 miles. Of the total number, 43 
 use wagons for hauling to New Haven, and of these 10 use autos in addition 
 to their wagons. There are two who use only auto trucks. 
 
 The average length of time used in reaching New Haven is one hour and 
 eleven minutes.. From Highwood the time is a little less than an hour, from 
 Hamden one hour and eight minutes, and from North Haven nearly an 
 hour and a half. Farmers from Clintonville require about two and one-half 
 hours to reach New Haven, and those from Wallingford nearly three hours. 
 
 Out of 44 growers who reported on the hour of starting their journeys, 
 3 said that they started before midnight, 22 between midnight and 2 A. M., 
 13 between 2 and 4 A. M., and 6 after 4 A. M. These figures indicate that a 
 large majority start at an unreasonably early hour in order to reach market 
 in time to obtain good locations, a difficulty that would be overcome if the 
 growers had definite spaces or stalls assigned to them. The fact that 
 growers have to start so early in the morning keeps a good many of them 
 from coming to the New Haven Market at all. 
 
 As for the hour of starting back to their farms, 4 out of 37 replied that 
 they began their return journeys before 7 A. M., 19 between 7 and 8 A. M., 
 and 14 after 8 A. M. This indicates that the majority of the growers are 
 back on their farms before 9 A. M. 
 
 Out of 45 growers who reported the number of trips they make to market 
 during the height of the season, 23 replied that they come practically every 
 day. The average appears to be about 5 times a week, although there are 
 a number who appear to come about every other day. The average value 
 of a load is about $42, but this varies all the way from $10 a load to $75 
 and over. The majority report from $25 to $50. The market is not in full 
 swing until June, although out of 40 reporting on this point, 10 begin their 
 trips in May, 21 in June, one in July, and 8 in August. Those who begin 
 their trips in August sell fruit only. The farmers keep up their trips until 
 into November and December, 4 replying that they stopped in September, 
 7 in October, 15 in November, and 10 in December. 
 
 The buyers in the farmers' market comprise retail merchants, peddlers 
 or hucksters, wholesale dealers, and buyers who ship to other points. 
 Figures were obtained from the growers which indicate the relative impor- 
 tance of these four classes of buyers, and the following percentages show 
 
12 
 
 approximately the proportions of the total amount of the produce bought 
 by each : 
 
 PER CENT 
 
 Retail Dealers 24 
 
 Peddlers . 45 
 
 Wholesale Dealers 22 
 
 Buyers for Outside . . ... . . -9 
 
 Total 
 
 100 
 
 These figures indicate that the peddlers or hucksters are by far the most 
 important buyers in the farmers' market, and that retail dealers and 
 wholesalers are of about equal importance. 
 
 Diagram showing relative importance of the different classes of buyers 
 in the Commerce Street market. 
 
 Farmers who bring goods to the New Haven Market frequently return with 
 a part of their goods unsold. Out of 47 who replied on this point, 27 said 
 that they commonly brought more than they could dispose of. Five of these 
 
13 
 
 said that they take them home and bring them back the next day; 17 
 sell what is left to retail stores ; and 2 report that they destroy the goods 
 that are unsold. Thirty-four growers report that they also ship produce to 
 other markets, while 13 say that they sell all of their goods in New Haven. 
 Of the cities to which produce is sent by New Haven growers, Boston is 
 by far the most important, although a few ship goods to New York, Spring- 
 field, Providence, and Bridgeport. Because of close relations with the Bos- 
 ton Market, it is the Boston prices that growers follow from day to day, 
 rather than New York prices, although a few report that they follow the 
 prices in the latter city. Only about half of the growers reported that they 
 followed prices in' outside cities at all. 
 
 As for the attitude of the growers toward the present market in Com- 
 merce Street, 45 reported that they were dissatisfied with present conditions, 
 and 3 said that they were satisfied. Thirty-nine out of 40 reported that they 
 were in favor of city ownership of a market place; most of them believe 
 that this should be purely a wholesale market, although 16 think that provi- 
 sion should be made for a combination wholesale and retail market. Prac- 
 tically all of the growers believe that the market place should be covered, 
 and they are also practically unanimous in believing that spaces should be 
 assigned, and rent charged. There were 25 who expressed their opinions 
 on the proper location for such a market, and n of these apparently favored 
 the present location, 5 a location on Goffe Street, and the remainder 
 scattering locations. 
 
 CHAPTER IV 
 
 THE COMMERCE STREET MARKET AND FARMERS' MARKETS 
 
 IN OTHER CITIES 
 
 By H. A. BRANDT 
 
 Various references are made throughout this report to the Commerce 
 Street Market. Unfortunately, this market was not in active operation during 
 the time that this study was being made, and consequently it has been 
 impossible to secure as much specific information as desirable. Enough 
 information has been received, however, to make possible a general descrip- 
 tion of the market with special reference to its shortcomings, and inasmuch 
 as the establishment of a well organized and operated farmers' market is 
 New Haven's principal need, some information has been gathered relative 
 to the operation of farmers' markets in other cities. 
 
 The Commerce Street Market is an open, uncovered market-place, of the 
 type usually referred to as a "curb market." Farmers drive in during the 
 night or early in the morning, and station themselves at such convenient 
 places along Commerce Street as are available, overflowing into vacant lots 
 to the west of Commerce Street. Various estimates place the number of 
 growers at from two hundred to over three hundred, and since the market 
 area is not partitioned off into spaces, there is a general scrambling for good 
 locations, and farmers often come to market from two to four hours before 
 
14 
 
 actual business begins at about five o'clock, in order to obtain such locations. 
 Farmers do not unhitch their horses from their wagons, and since they 
 assemble without following any definite scheme of arrangement, more or 
 less congestion results. The situation is complicated by the fact that from 
 one hundred to two hundred hucksters, as well as a number of retailers, 
 seek convenient locations with their wagons. The market is without regula- 
 tion of any kind, there is no market master, and there is no organization that 
 has any authority. 
 
 Out of these unorganized conditions there have developed weaknesses. 
 In the first place the fact that there are no assigned spaces results in farmers 
 having to start for market much earlier than necessary, as has already been 
 pointed out. This fact also keeps away many farmers who would otherwise 
 come. The congestion resulting from no regular lay-out and assignment 
 of spaces results in the greatest confusion. Wagons are jammed in in every 
 conceivable way, and it is difficult to pass from one part of the market to 
 another, and for a huckster to carry goods that he has bought from a 
 farmer's wagon to his own. On account of this congestion and demoraliza- 
 tion many retailers who would otherwise come to the market stay away. 
 The chaotic conditions also lead to more or less thieving, and it is said that 
 dealers dislike to leave their own wagons for any length of time to go to 
 some other part of the market. It is alleged that the sanitary conditions 
 are poor, in that there are no adequate provisions for keeping the street 
 clean. It is also said that the market is so disorganized that there is no 
 very definite market price, and that goods of the same quality are sold at 
 different prices in different parts of the market. Complaint is also made 
 that there is an undue amount of speculation, and that some men give their 
 whole time to buying up goods, in order to re-sell them in the market at a 
 profit. A certain amount of this buying to sell again possibly has a bene- 
 ficial effect in that it tends to bring about a better adjustment of prices and 
 a better price level throughout the whole market ; but it is further alleged 
 that such speculators, or "jockers" as they are locally called, are able to 
 corner the market on certain articles and boost the prices to an unnatural 
 level. 
 
 Enough has been said to show how unsatisfactory the conditions are in 
 the Commerce Street Market, and it is perfectly evident that something 
 definite should be done as soon as possible to improve conditions. In decid- 
 ing what should be done, it will be of value to know what provisions other 
 cities make in the way of public markets for farmers. 
 
 MARKETS IN OTHER CITIES 
 
 In connection with this investigation no first hand study has been made 
 of the market policies of other cities, except that one visit was made to 
 Providence, where the farmers have their own cooperative market, and 
 where it was believed some information might be gathered which would be 
 of special value to New Haven in solving her problem. On the whole, the 
 information about other cities, as derived from printed sources, is meager 
 and fragmentary, and it would appear desirable that a more intensive study 
 
15 
 
 be made of the market policies of a few leading cities, before a permanent 
 policy is decided upon for New Haven. 
 
 Information with regard to markets in fifty-four cities in the United States 
 indicates that fifty own and control their own markets, and that seven of 
 these have privately owned markets in addition to those owned by the city; 
 the other four cities have only privately owned markets. 
 
 Many of these cities, especially the larger ones, have market spaces which 
 are rented to retailers, and in all such cases there is a market building, or at 
 least a covered market place. Most of the cities also have provision for 
 farmers, and in some cases the farmers' markets are covered and in others 
 they are open curb markets. 
 
 The market place is always laid off into spaces or stalls, and rents are 
 charged to farmers for the use of these spaces. The rent is commonly from 
 ten cents to twenty-five cents a day depending upon the size of the wagon, 
 and in some places according to the location within the market. It is also 
 customary to have a season rate, such rate ranging from ten dollars to 
 twenty-five dollars. One city auctions off its curb spaces at the beginning 
 of each year, and the prices paid by growers range from fifteen dollars to 
 three hundred dollars for the season. Most of the city markets are self- 
 sustaining financially, and some of the larger markets, where space is rented 
 to retail dealers, yield profits to the city. The best policy, however, appears 
 to be for the city to charge only enough to pay the operating expenses of 
 the markets. 
 
 Most of the cities having markets have market masters, who are paid 
 from nine hundred dollars to twelve hundred dollars a year. In some cases 
 a member of the police force is made the market master. Most cities also 
 have provisions for inspection of sanitary conditions; in some cases a 
 regular inspector is kept in the market all the time; in other cases the Board 
 of Health sends an inspector to the market occasionally. Inspection of 
 weights and measures also has to be provided for, and this function is 
 already being performed efficiently in the New Haven market. 
 
 A farmers' market may be owned by the city, owned by a private corpora- 
 tion, or owned by the farmers themselves. The commonest form is a city- 
 owned market, such as has been described above. Privately owned 
 markets are in some cases successful, and where successful are apt to be 
 operated more efficiently and intelligently than a city owned market. The 
 following description of a market in Kansas City, Kansas, furnishes a good 
 illustration of a privately owned market: 1 
 
 "There is here a public market which is owned ... by a stock com- 
 pany, and the rules and regulations are established by this company. The 
 market may be considered a success when it is stated that it has paid the 
 stock company four six-per-cent dividends in six years and has set aside 
 $4,000 as a surplus. The market master receives a salary of $480, and the 
 annual expenses of the market, including salary, are $1,800. The market 
 building proper is occupied by wholesale farmers, but about 75 farmers 
 gather each morning at the curb, for which they pay 25 cents per morning, 
 
 1 The American City, Feb. 1913, p. 129. 
 
1 6 
 
 or from $9 to $12 per season, for wagon space of seven feet, this latter 
 payment giving the farmer a regular place to stand . . . The market 
 received shipments from other communities, principally fruit, vegetables, 
 butter and eggs." 
 
 Minneapolis also has a successful farmers' market, which is owned and 
 operated as a private enterprise. The following description of this market 
 furnishes some valuable suggestions : x 
 
 "Stalls for the entire season cost $25 each, and for the berry season only, 
 ten dollars each. A stall may be rented by two gardeners who may occupy 
 it on alternate days. Transients are charged twenty-five cents a day for the 
 use of a stall. When a grower signs for a stall he agrees to the following 
 rules and regulations : 'It being a special agreement under which this stall 
 is rented, the tenant only has the use of the same when personally occupy- 
 ing it with his wagon, with the horses off, and the pole or shafts detached 
 and out of the way, and he is not to sublet for any part of this season nor 
 have any control over the occupancy of this stand except when he is per- 
 sonally using the same, and it is optional with the Central City Market 
 Company to put any other tenant in this stand when it becomes vacant, 
 either by the absence of this tenant or by his non-payment of rent when it 
 is due. The tenant occupying this stand also agrees not to deposit any 
 decayed or spoiled vegetable matter on this stand or on the pavement in 
 the driveway in front of this stand, and that all such refuse matter he may 
 have on his load he will remove from the market place, and that no huckster 
 business will be done on this stall, and no sale to be made before 6 A. M.' 
 By huckstering is meant in this contract the buying of products by a grower 
 for the purpose of reselling on the Central Market. This regulation does 
 not apply to certain stalls, twenty in number, which are rented expressly 
 for the purpose of buying and selling. Huckstering as a general practice 
 on a market of this kind is not to be encouraged, but the setting aside of 
 a few stalls for this purpose helps to keep the market normal. . . . The 
 growers need no special license to sell the products at the Central Market 
 and they may sell to whomever they please. If they have any vegetables 
 left that they are unable to dispose of at the market, they often unload to 
 a dealer on Commission Row . . ." 
 
 The market itself is described as follows : "The market court has three 
 sheds which are twelve feet wide and 330 feet long, with stalls on each side, 
 which are six feet wide. The wagons back up to raised platforms, which 
 extend the full length of the market, and on these the products are dis- 
 played. The stalls are wide enough to accommodate the customary wagons, 
 but the large trucks now coming into use require more room. The same 
 condition exists in regard to the driveways between the sheds which are 
 forty-five feet wide; . . . when the market is in full swing it is almost 
 impossible for teams to get in or out." 
 
 "The Central City Market is mainly a wholesale market, altho it is 
 patronized to some extent by consumers. It is a local growers' market and 
 only local products can be sold on it." 
 
 1 Weld, Studies in the Marketing of Farm Products, University of 
 Minnesota, 1915. 
 
17 
 
 Although such a privately owned market is often the most efficient form, 
 the financial possibilities are not usually sufficient to attract private capital, 
 and it is not likely that this solution would be possible in New Haven, 
 although the descriptions given above offer some helpful suggestions. The 
 other possibility, that of a market owned and operated by the farmers them- 
 selves, has been tried out in at least two cities, viz., Louisville, Kentucky, 
 and Providence, Rhode Island. The Louisville market has been described 
 as follows: 1 
 
 "The public market in Louisville is a private stock company, known as 
 the Gardeners' and Farmers' Market Company, 90 per cent of the stock 
 being owned by truck farmers around Louisville. The market master 
 receives a salary of $1,500 per annum. . . . Unlike many markets the 
 prices of the booths are not set, but booths are sold at auction each year. 
 There are between 500 and 600 booths. Between 300 and 400 farmers use 
 the market daily, and from all appearances the commission men and produce 
 dealers are friendly to the market, which receives no shipments from other 
 communities." 
 
 Providence has the most interesting and important example of a market 
 owned and operated by the farmers themselves. Formerly space was allotted 
 by the city to farmers in the middle of the wholesale produce section, but 
 owing to dissatisfaction with the city management, the farmers decided to 
 have their own market place. They bought cooperatively a large lot of land 
 about one mile from the previous location, and although there were some 
 who believed that it would be unsatisfactory to locate at such a distance 
 from the produce section, it appears that trade has followed the market, and 
 that there is no particular disadvantage in being separated from the food 
 trade section. The farmers are incorporated and their dues of $43.00 per 
 year pay interest on their mortgage and allow enough to put into a sinking 
 fund to ultimately pay off the debt. 
 
 This market is an open one, except that a few sheds have been built for 
 the largest growers. The market place is laid off in spaces whose dimen- 
 sions are n by 22 feet, and each member is assigned to a space. There 
 is but little choice in the locations, because the market is laid out with 
 streets running between the rows of spaces, and the hucksters and retail 
 merchants who buy in the market are kept moving through these streets. 
 
 No provision is made in this market for direct sale to consumers and the 
 managers do not believe that such a thing is feasible. It is roughly esti- 
 mated that about 60 per cent of the goods sold in this market goes to 
 hucksters, some of whom sell direct to consumers, whereas others sell at 
 wholesale to small retail stores ; the remainder goes to the regular produce 
 commission men or wholesalers and to large retailers and boarding houses 
 who send wagons to market. An interesting feature of this market is that 
 farmers sell a large amount of produce which they do not themselves 
 produce; they buy such commodities as sweet potatoes and onions which 
 are not raised near Providence, and in this way they become wholesale 
 dealers to a certain extent. 
 
 1 The American City, February, 1913. 
 
There are 204 members of the Association which owns and operates the 
 market place. It is estimated that 40 per cent of these growers are Italians, 
 20 per cent Americans, 20 per cent Portuguese, 10 per cent Armenians, 3 
 per cent Scandinavians and 7 per cent Greeks, Turks, and miscellaneous. 
 The American growers, however, are by far the heaviest producers, and 
 control probably 75 per cent of the produce sold. It has been found that 
 many of the foreigners are good cooperators, especially the Italians; the 
 Portuguese, on the other hand, do not work together with the others so well. 
 
 The spaces are covered with concrete to make the market sanitary ; horses 
 are unhitched from the wagons and the Association has its own livery barn 
 where a charge of 25 cents per horse per day is made. The market master, 
 who is a pensioned police officer, is employed at $18.00 a week, and he has 
 general control of the whole market, settles disputes, etc. The market opens 
 as early as three A. M. at the height of the season, and at four or five 
 o'clock during other seasons. Boston prices are followed closely and furnish 
 the basis for prices in the Providence market. Telegraphic advices are 
 received from Boston early each morning. The Association has its own 
 restaurant on the grounds where growers can get their breakfasts. 
 
 CHAPTER V 
 
 THE MARKETING OF BUTTER AND EGGS IN NEW HAVEN 
 By H. BRUCE PRICE 
 
 I. THE WHOLESALE TRADE 
 
 There are five wholesale companies in New Haven which supply retailers 
 with butter and eggs, and one wholesale company in West Haven which 
 handles small quantities. However, the three butter and egg wholesale 
 dealers who are located on George Street and who specialize in these com- 
 modities provide New Haven with the greater part of its supply. The other 
 two houses handle butter and eggs as a side line and hence do not play an 
 important role in their distribution. Wholesale houses of New York, Spring- 
 field, and other New England cities sell some butter and eggs to New 
 Haven retailers but only a small part of the total consumption. 
 
 About ninety-two or ninety-three per cent of the butter which passes 
 through the New Haven wholesale channels is "centralizer creamery." This 
 is butter which is manufactured in creameries of the Middle West which 
 secure their cream largely from distant points. The cream is often held 
 by farmers for several days before shipping and hence does not reach the 
 creameries in the best of condition. The resulting butter is of medium 
 grade and of standard quality; it is pasteurized and perfectly wholesome. 
 The country creamery, or "whole-milk," butter which is manufactured in 
 a small creamery which serves only a limited territory, and hence has a 
 supply of good raw material, comprises only about five per cent of the butter 
 that the wholesale houses sell. This is the highest grade fancy butter. The 
 
19 
 
 remaining two per cent includes "process" or "renovated" butter. This 
 is farm-made butter that has been melted and cleaned and reworked to make 
 it palatable, and this is the poorest grade of butter. Oleomargarine is used 
 in very small quantities and constitutes not more than one-fourth of one per 
 cent of the total amount of butter sold in New Haven; this is used primarily 
 by the hotels and restaurants. 
 
 The significant feature of the New Haven butter trade is the large 
 amount of the medium grade butter which is consumed and the small 
 amounts of high grade, low grade, and butter substitutes. In former, less 
 prosperous years, the consumption of oleomargarine was greater than at 
 present, but according to the produce dealers it has never been extensively 
 used as a substitute for butter. This is also true of process butter. In its 
 small consumption of high grade butter, New Haven does not differ 
 materially from most other large cities, which use centralizer butter in large 
 quantities. This is not true of New York and Philadelphia, however, which 
 demand the best country-creamery product. Dealers say that the amount 
 of high quality butter consumed in New Haven has decreased rather than 
 increased during recent years. A New Haven retail merchant who has sold 
 butter in New Haven for thirty years and who sells nothing but a high 
 grade product, states that he is selling less than half as much butter as in 
 former years because consumers prefer the cheaper grades. A wholesale 
 company which formerly took the entire output of a large creamery in 
 New York State is now selling centralizer butter exclusively because the 
 demand for this high grade fell off. The rising prices of butter in recent 
 years doubtless account for this change in demand. Furthermore, a very 
 small proportion of the city's population is really able to distinguish high 
 from medium quality butter. 
 
 SOURCE OF WHOLESALE SUPPLY 
 
 New Haven is almost entirely dependent upon the West for its supply 
 of butter and eggs, owing to the limited production in New England. Dur- 
 ing the winter Connecticut henneries provide fresh eggs which command 
 fancy prices, and they also provide considerable quantities during the spring 
 and summer ; likewise the dairies and creameries supply some butter. 
 Locally produced butter and eggs are commonly sold direct to the retail 
 store or to the consumer, and constitute an insignificant part of the supply. 
 Although the New Haven wholesalers buy some butter and eggs in New 
 York and Chicago, they buy the bulk of their supply direct from creameries 
 and egg shippers in the West. The small quantities purchased in the open 
 markets at New York or Chicago are usually to meet temporary conditions, 
 although some large purchases are made in Chicago for storage purposes. 
 Some goods are also bought through Chicago brokers. 
 
 Practically all of the butter comes direct from the western creameries. 
 As in other cities, the wholesalers keep in direct touch with these creameries, 
 and, in some instances, contract to take the whole output of a creamery. 
 This policy is particularly well adapted to buying centralizer butter because 
 it is consumed in such large quantities in New Haven. In most cases, how- 
 
2O 
 
 ever, a wholesale company takes only a part of any one creamery's output, 
 but buys from a number of them. The centralizer butter comes from the 
 Middle Western states of Iowa, Illinois, Indiana, Nebraska, and Minnesota ; 
 while the whole-milk creamery butter comes largely from New York 
 creameries, and is handled in an important way by only one New Haven 
 produce company. 
 
 The sources and methods of buying eggs are similar to those of buying 
 butter. The Connecticut egg producers find an outlet for their surplus pro- 
 duction during the flush season through the New England butter and egg 
 wholesalers, but otherwise they sell direct to merchants and consumers; 
 small quantities, as has been suggested, are bought in New York City; but 
 the chief source of supply is the Middle West. A considerable part of this 
 western supply is bought through Chicago brokers but the principal part 
 is bought direct from "egg-packers" in Michigan, Illinois, Indiana and 
 other heavy egg-producing states. 
 
 Early in the producing season, in February or the first part of March, the 
 wholesalers get into communication with egg-packers either through per- 
 sonal representatives, through correspondence, or both. They begin in the 
 South Central section, in Tennessee or Kentucky, some starting as far 
 South as Alabama, and gradually work northward as the spring opens and 
 the laying begins. Wholesalers are particularly busy at the opening of the 
 season, for the spring eggs are the choice product for cold storage, since 
 they have been exposed to neither extreme heat nor cold. Recent studies 1 
 show that of the total storage receipts 41.9 per cent of eggs are placed in 
 storage in April, 25 per cent in May, and 12.5 'in June, approximately 80 
 per cent going into storage during the three spring months. 
 
 It is of interest to know that the quality of eggs varies from one section 
 of the country to another, depending upon the climate, soil, nature of food, 
 and the methods of producers. An expert egg buyer can often name the 
 district from which an egg has come by merely looking at it. For this 
 reason, an egg buyer can depend upon the quality of the eggs from a given 
 section of the country and does not necessarily need a representative to 
 examine them before purchasing, although there are advantages in having a 
 travelling representative during the heavy producing season. 
 
 METHODS OF WHOLESALE PURCHASES AND SALES 
 New Haven is the distributing point for a small territory and consequently 
 has no organized produce market with a market quotation ; such butter and 
 eggs as wholesalers buy are therefore purchased on the basis of the quota- 
 tion of some other market. There is no fixed method of price determination 
 among the wholesalers of New Haven; the price basis for each transaction 
 is determined by the circumstances, and by the desires of buyer and seller. 
 Butter is frequently bought from western creameries on the basis of the 
 Chicago quotation, and occasionally the Elgin quotation is used ; but it is 
 more common to use the New York price, which is really the basic factor 
 for New Haven prices. 
 
 1 Weld, The Marketing of Farm Products, p. 148. 
 
The methods of determining the price of eggs bought from western packers 
 are likewise varied. Sometimes the Chicago quotation is used, sometimes 
 agreements are made quite independent of any given market price, but 
 generally the New York price is the determining factor. 
 
 The reader must bear in mind that there are many factors affecting the 
 price which a New Haven wholesale company will pay a western shipper. 
 There is the question of the prices in different markets. Normally the New 
 York price is higher than the Chicago price by an amount equal to the 
 freight charges from Chicago to New York; but market conditions may 
 be such as to throw the markets out of line, i. e., the New York price may 
 be higher or lower than the Chicago price plus the cost of transportation. 
 If the New York price is low, western shippers will try to sell on the basis 
 of the Chicago quotation and buyers will prefer the New York quotation, 
 in which case the eastern buyer and the western shipper may agree upon a 
 price more or less independent of either quotation. Where a wholesaler 
 agrees to take the entire butter output of a creamery, the price basis is 
 definitely determined so that there is no inconvenience from the above 
 conditions, but little of the butter and none of the eggs are purchased by 
 contract, and the price basis must be determined for each transaction. Con- 
 sequently, buyers and shippers are alert to take advantage of price fluctua- 
 tions, and hence different methods for determining prices are used. 
 
 Moreover, there is the question of whether the goods are bought f.o.b. 
 shipping point or "delivered" in New Haven. Either the buyer or shipper 
 must pay the transportation costs and bear the risks of transportation. 
 When they are bought f.o.b. shipping point the receiver pays the freight 
 charges and the price paid the shipper must necessarily be lower than a 
 "delivered" price by an amount equal to the freight costs, although the 
 final cost to the receiver is the same in either case. The method varies with 
 different buyers some buy exclusively on the basis of a "delivered" New 
 Haven price, while others buy either f.o.b. or "delivered" to suit the shipper. 
 In general, about seventy-five per cent of the butter is bought on the New 
 Haven "delivered" basis while eggs are purchased almost exclusively by this 
 method. 
 
 All freight from the West is shipped to New Haven on a "through" 
 Boston rate so that the New Haven "delivered" price compares favorably 
 with the Boston and is higher than the New York "delivered" price. The 
 difference between the freight rate for butter from Chicago to New York 
 and from Chicago to Boston is six cents per hundred weight in carload 
 quantities, or one-sixteenth of one cent per pound, and the difference in the 
 rate on eggs in carlots is correspondingly small. Consequently, the New 
 Haven "delivered" butter and egg prices are only slightly higher than the 
 "delivered" prices at New York City. 
 
 The wholesale trade uses the customary means of reaching the retail 
 stores, namely, salesmen, who visit the retail merchants twice a week. 
 
 An unusual practice has developed, as a result of keen competition among 
 the wholesale companies, of making written contracts .with retailers to 
 supply their butter and eggs during the fall and winter months when storage 
 products are being used. The wholesalers approach the retail merchants in 
 
22 
 
 April, and offer to contract to provide them with whatever storage butter 
 and eggs they believe that they can use between September i and February 
 i at a given price. The retailer in return agrees to take one-fifth of the 
 supply each month. Contracts are also made for the July and August sup- 
 ply, but this is unusual, and is confined to the stores which want to be sure 
 of a good quality for the summer trade. 
 
 It is impossible to state what part of the butter and egg supply is sold 
 under contract, but it appears to be considerable. One wholesaler estimates 
 that seventy per cent of the butter and eggs which he sells from September 
 i to February i are sold in this manner, and since only one wholesaler does 
 not follow the contract policy, it is probable that more than one-half of the 
 New Haven supply, during these five months, is sold to retailers under 
 contract. 
 
 Neither the wholesalers nor the retailers are enthusiastic over the policy 
 of contracts, but as long as it exists, each wholesaler (except one) feels 
 under obligation to follow it in order to be sure of his share of business. 
 The Wholesale Produce Dealers' Association of Connecticut at its annual 
 meeting about twelve years ago tried to secure an agreement among its 
 members to discontinue the policy, but as one important wholesale company 
 refused to consider it, the movement came to naught. 
 
 The advantage to the retailer of buying under contract is that he is sure 
 of the amount of goods contracted for ; if prices rise above the contract 
 price as they have during 1916-17, he will also realize a profit; but if they 
 fall, he experiences a loss. Retail merchants, on the whole, are of the 
 opinion that they gain nothing by contracts. One merchant has expressed 
 their attitude in the statement, "We don't care to make contracts, but the 
 wholesalers come around in the spring and talk us into it." 
 
 The chief advantage accrues to the wholesale houses which are thereby 
 protected against market fluctuations and are guaranteed a small but sure 
 profit Moreover, they are certain of disposing of a definite quantity of 
 their cold-storage goods and have an outlet for other products which they 
 may handle. There is, however, some difficulty in securing an observance 
 of contracts. No charges have been made against the wholesale companies 
 for failing to meet such agreements, but there is complaint that the retail 
 stores do not observe them closely. It is charged that when prices fall, a 
 few merchants refuse to take the goods as agreed ; and since no margin 
 is required of them when the contract is made, the only recourse of the 
 wholesaler is to take his loss and refuse to do business with the merchant 
 in the future. When prices rise, such merchants resort to various subtle 
 devices to secure more goods than their contracts call for. It is for these 
 reasons that one wholesale company refuses to contract with merchants ; 
 it believes that the possible gains are more than offset by the increased 
 accounting costs and the annoyance. Butter and eggs, however, are only a 
 side line with this company, so that it can follow such a course; whereas 
 a large wholesale company is almost forced to it when its competitors are 
 making contracts. 
 
23 
 
 RETAIL STORES 
 
 Any analysis of the retail distribution of butter and eggs must consider 
 the three classes of retail stores, namely, small stores, large stores, and 
 chain stores. This is necessary because the business methods vary with 
 these different types. It has been pointed out that much of the New Haven 
 butter and egg supply passes through the New Haven wholesale houses. 
 There are, however, two other sources of supply of which the retailers avail 
 themselves, namely, the farmers, and wholesale dealers in other cities. 
 
 Nearly all of the dairy and poultry products of the small retail stores is 
 bought from the New Haven wholesalers. Their volume of business is so 
 small that it does not pay them to buy from New York or other wholesale 
 markets. Most of them, however, do secure their strictly fresh eggs direct 
 from producers who are either general farmers or local poultry specialists. 
 In the case of butter, the nature of the product and the location of the 
 supply make it unprofitable to attempt to try buying direct, so they are 
 content with the local wholesale service. It is somewhat different for 
 fresh eggs, which are produced on a small scale by local farmers or "hen- 
 neries," and which are delivered to the stores by the producers. Or if they 
 are produced at too great distance, they may be shipped in small quantities 
 by express or parcel post. 
 
 The large retail stores are in a better position to take advantage of 
 sources other than New Haven wholesale houses. These stores send buyers 
 to New York two or three times a week to buy such supplies as can be 
 obtained to advantage in that market. It sometimes happens that the New 
 Haven wholesale price is such that it pays these stores to buy butter and 
 eggs in New York; but these purchases constitute only a small amount as 
 compared with the total amount purchased from New Haven wholesale 
 houses. 
 
 The Springfield, Bridgeport, Waterbury, and New York markets offer 
 severe competition to the New Haven wholesale companies, so their prices 
 must be reasonable: but the method of determining the New Haven whole- 
 sale price sometimes places this market out of line with New York. The 
 customary method is to make the New Haven wholesale price of butter 
 and eggs on the basis of the New York quotation of the preceding day. 
 For example, a wholesale company purchases a lot of butter in New York 
 at 30 cents per Ib. The butter is shipped to New Haven that evening and 
 is sold in New Haven the next day on the basis of the purchase price of 
 the previous day. For the small stores this is satisfactory, for they usually 
 follow the quotations of the New York newspapers, which give the quota- 
 tions of the previous day ; besides they are not in a position to buy in 
 New York if the New Haven price is higher than New York, allowing for 
 transportation cost. But it is different with the large retail store. Suppose 
 that the New York quotation falls to 28 cents. The large retail store which 
 keeps in touch with the New York market will not be willing to pay the 
 New Haven wholesaler 30 cents plus transportation costs when it already 
 has a representative in New York who can buy at 28 cents plus transporta- 
 tion costs, and unless the New Haven wholesale firms meet this New York 
 price, it is clearly to the advantage of the store to buy in New York. 
 
24 
 
 This places the New Haven wholesale houses in a peculiar position. When 
 the New York prices rise, it is difficult to raise prices on goods purchased 
 on the previous day, because the small stores follow the quotations of the 
 previous day and will resist the rise ; and when the prices in New York 
 fall, the large retail stores are ready to take advantage of it. With such 
 keen competition it is scarcely conceivable that high prices are the result 
 of conspiracy on the part of the New Haven butter and egg wholesalers. 
 
 The large stores depend upon direct purchases from producers for their 
 strictly fresh eggs, which are usually delivered by producers in person. 
 Some of these stores also buy their high grade creamery butter direct from 
 a Connecticut or Vermont creamery. It seems to be not a question of 
 getting this butter cheaper, but of receiving the desired high grade for a 
 special class of trade. 
 
 The general policy of the chain stores is to use their own organization 
 for the purchase and distribution of butter and eggs. Each chain store com- 
 pany has its own purchasing department, which buys from packers and 
 creameries in the same manner as the wholesale companies, and has storage 
 and distributing plants at Boston, New York or other points of advantage. 
 From these central plants goods are sent to each store in such quantities and 
 at such intervals as are convenient. In this way, the chain stores are inde- 
 pendent of the wholesale companies and do not rely upon them for their 
 supplies. There is one important exception in New Haven of a chain of 
 large stores which relies almost exclusively upon the New Haven wholesale 
 companies for its butter and eggs, but aside from this company practically 
 all of the butter and eggs handled by the chain stores comes through their 
 own wholesale organizations. 
 
 These chain stores buy in large quantities at prices as favorable as the 
 largest wholesale company ; where they have a number of stores and a 
 large trade, they can ship in carlot quantities and hence receive as low trans- 
 portation rates as a wholesale company. So that they are operating at high 
 efficiency and afford keen competition to the rest of the distribution system. 
 One system alone has fifteen stores in New Haven and there are several 
 other companies each with a number of stores and doing a large business, 
 which, on the whole, is a very important consideration in the distribution 
 of butter and eggs. 
 
 The selling of butter and eggs in prints and cartons is of interest. The 
 tendency is to sell eggs in cartons, since they are more conveniently handled 
 in this way. Part of these are put in cartons by the wholesale companies 
 and part of them are put up by the retail store. In either case it means an 
 additional cost of perhaps one cent per dozen. Butter is generally sold from 
 tubs; one retailer estimates that 90 per cent of the New Haven butter 
 is sold in this way ; although this is probably a high estimate, the amount 
 of print butter is relatively small. Many stores, including the chain stores, 
 do not handle print butter at all. 
 
 Prints are sold under both wholesalers' and retailers' brands. Two or 
 three of the print butters are nationally advertised brands, but there are 
 many well-known local brands put out by the local wholesalers. All of the 
 
25 
 
 well-known brands are centralized butter. The retail stores which buy their 
 butter direct from a creamery usually have their prints in wrappers bearing 
 their own brands, although some of the highest quality butter in New Haven 
 bears the name of the creamery which makes it. The opinion of the trade 
 is that the amount of print butter has not increased relatively during the 
 last three or four years, which is probably due to the higher price of butter 
 during these years. 
 
 RETAIL P^JCES 
 
 Any study of retail marketing is incomplete without an analysis of retail 
 prices, which shows comparative prices in different localities and the approxi- 
 mate margin of profit taken by retail middlemen. In order to secure 
 adequate data, retail prices of the best quality of butter and eggs were 
 obtained from thirty stores in New Haven on the morning of March 2. 
 These included representative stores in the principal sections of the city. 
 
 TABLE No. i 
 
 Retail Butter Prices in New Haven 
 
 Print Tub 
 
 Location Range Average Range Average 
 
 City Point none 48 none 45 
 
 State St 40-50 46% 42-45 43-i 
 
 Fair Haven 45~48 47 40-46 43^ 
 
 Dixwell Ave 45~5 2 50 42-46 44 /^ 
 
 West Chapel none 50 42-45 44 
 
 Miscellaneous 45-55 47/^2 41-48 44 
 
 Average 47.8+ 44+ 
 
 Prices were secured for both print and tub butter. The "range" represents 
 the difference of prices between stores, and not the range of prices for a 
 given grade or for a given store. It will be noted that in a few instances 
 there is no range that the same price was charged by all stores for their 
 highest grade butter. Moreover, the greatest range is found on State Street 
 and in the miscellaneous class which includes all stores that represent no 
 distinct retail section, and are not included in any one of the other five 
 groups. This greater range is due to the greater variety in the class of 
 stores. It is also interesting to note that the lowest average prices are found 
 on State Street, where the largest stores are located. 
 
 TABLE No. 2 
 Comparison of Retail Butter Prices in New Haven and other Cities 
 
 Print Tub 
 
 Location Range Average Range Average 
 
 New Haven 40-55 47.8 40-48 44+ 
 
 Springfield 45-50 48.5 41-46 43-6 
 
 Hartford 47-53 49.4 43-48 45 
 
 Bridgeport 45-50 46.5 42-46 44 
 
 New York 47-52 48.5 43-47 45 
 
26 
 
 Table No. 2 gives the retail butter prices of representative stores in cities 
 located near New Haven and which were secured on the same day as the 
 New Haven prices. There is a remarkably small difference between the 
 average price of both print and tub butter for these cities, less than 2 cents. 
 Moreover, it should be noted that the New Haven price is second lowest, 
 Bridgeport having the lowest price for print, and Springfield the lowest 
 price for tub butter. 
 
 The reader will appreciate the difficulty of securing a satisfactory standard 
 by which to judge prices. The ideal method would be to secure the prices 
 on the same grade commodity, but as it is difficult to determine the exact 
 quality, and since the quality varies so greatly among stores and among cities, 
 this method is impossible. The method used, of securing the price of the 
 highest grade sold, seems the most practicable. And while it is open to 
 criticism on the ground that it does not consider a common standard of 
 quality, it has nevertheless provided a fairly definite basis to compare price 
 levels. For example, it is well known that New York uses a higher grade 
 of butter than New Haven, which the difference of nearly a cent per pound 
 would indicate in the above table. A study of price levels in New Haven 
 shows that the differences in prices for the same brand of butter, for example 
 Gold Medal or Glenwood prints, correspond closely to the differences found 
 in Table i. 
 
 TABLE No. 3 
 Retail Egg Price in New Haven 
 
 Strictly Fresh Fresh Western 
 
 Location Range Average Range Average 
 
 State St 42-60 51.4 39-45 41 
 
 West Chapel 55-60 58^ 45-50 47^ 
 
 Dixwell Ave 45-6o 54 39~50 45^3 
 
 City Point 50-55 52^ none 45 
 
 Fair Haven 45-55 50 30-40 45^ 
 
 Miscellaneous 38-60 53 38-50 43^ 
 
 Average 
 
 Table No. 3 shows the retail prices of strictly fresh and western fresh 
 eggs in New Haven on March 2. The range, as in table i, refers to the 
 difference in price between stores. There is a wide range in egg prices, 
 particularly for strictly fresh, due to a difference in the quality of eggs 
 ,and to a difference in the class of stock; but the average prices for the 
 strictly fresh grade of the different sections of the city vary closely with 
 the average prices of western fresh, so that the exceptionally wide ranges 
 for strictly fresh eggs do not vitiate the results. It is interesting to note 
 the wide spread of approximately ten cents between strictly fresh and west- 
 ern fresh eggs. At the time the study was made, western fresh eggs which 
 were coming from the South and South West, were being marketed in 
 comparatively large quantities, while the strictly fresh eggs which are pro- 
 duced primarily in Connecticut, were still scare with comparatively high 
 prices. 
 
27 
 
 TABLE No. 4 
 
 Comparison of New Haven Retail Egg Price with prices in Neighboring 
 
 Cities 
 
 Strictly Fresh Western Fresh 
 
 Name Range Average Range Average 
 
 New Haven 38-60 53.3 38-50 43-5 
 
 Springfield 49-60 53.3 40-48 43.6 
 
 Hartford 55-6o 57 45~5o 48.7 
 
 Bridgeport 40-60 50 4i~50 44-8 
 
 New York 38-55 45-3 37~43 39-2 
 
 A comparison of prices in the above table discloses a wide variation in 
 the average price of eggs in different cities : highest prices are found in Hart- 
 ford and lowest prices in New York, with a difference of 11.7 cents for 
 strictly fresh eggs and 9.5 cents for western fresh. A close similarity exists 
 in the New Haven and Springfield prices, although the Springfield stores 
 grade eggs according to color, which gives them a better appearance than 
 the eggs in the New Haven stores, where little attention is paid to color. 
 
 Among the many reasons given for the high cost of living is the popular 
 idea that it is due to the profits of the middleman. The following table 
 shows the part which New Haven retailers and wholesale houses have in 
 New Haven butter and egg prices : 
 
 TABLE No. 5 
 Comparison of Retail and Wholesale Prices for Butter and Eggs 
 
 New Haven New Haven New York 
 
 Retail Prices Wholesale Price Wholesale Price 
 
 (Mar. 2, 1917) (Mar. 2, 1917) (Mar. i, 1917) 
 
 Butter 44 cts. 39 @ 40 cts. 38 @ 39 cts. 
 
 Eggs 43^ cts. 35 @ 36 cts. 33 @ 34 cts. 
 
 The retail stores' margin is 4^ to 5 cents on butter, and 8 cents on eggs. 
 This may appear as a large profit, but when we consider that the cost of 
 conducting a retail store is 18 to 20 per cent of its sales, the margins taken 
 by these retailers do not appear to be excessive. Besides, these prices were 
 obtained during a period of falling prices, and the tendency is for retail 
 prices to lag behind wholesale prices ; and therefore the margin between 
 retail and wholesale prices was greater than under normal conditions. 
 
 It is also interesting to compare the New Haven wholesale price and the 
 New York wholesale price. The New York wholesale price for March I 
 is taken because it is the basis of the New Haven price on March 2. It 
 should be noted that the New Haven wholesale price for butter is one cent 
 above the New York wholesale price, but the New York quotation is for 
 butter sold in large quantities by commission houses or wholesale receivers 
 to jobbers, who add about one and a half cents a pound in selling to retailers. 
 So there is very little difference between the prices paid by New Haven and 
 New York retailers for their butter. Although the table shows a difference 
 of two cents in the New Haven and New York wholesale prices of eggs, 
 the New York quotation is again for wholesale lots to jobbers, and the price 
 to retailers is from one cent to one and a half cents higher, making the 
 
28 
 
 price paid by retailers approximately the same in the two cities. The New 
 York quotations shown in the table are really the prices that New Haven 
 wholesalers have to pay in that city, indicating that the margins taken by 
 New Haven wholesalers, out of which have to be paid freight, cartage, and 
 marketing costs, are very small on both butter and eggs, and account for a 
 small increment of final retail prices. 
 
 We must conclude then that New Haven butter and egg prices are not 
 exorbitant when compared with prices in neighboring cities ; and that the 
 service is rendered as cheaply as may be expected. The New Haven retail 
 stores and wholesale produce houses are not charging excessive prices for 
 their service. There is also every indication that there is free competition 
 among the New Haven houses, rather than any conspiracy to maintain prices. 
 
 COLD STORAGE 
 
 It has been mentioned that the New Haven wholesale produce companies 
 buy butter and eggs to hold in storage; but only a part is held in New 
 Haven because of limited storage facilities. Only one wholesale company 
 has cold storage capacity for all of its produce, and has but a limited amount 
 of space to rent to others. Another wholesale company has cold storage 
 space for about two-thirds of its supply, while the other companies have 
 capacity for only a few carloads. Probably not more than one-half of the 
 cold storage butter and eggs sold by the New Haven wholesale companies 
 is held in New Haven storage facilities. The remainder is held in other 
 cities, like Chicago, Buffalo, and Springfield, where cold storage space can 
 be rented. 
 
 Opinion is divided on the question of the desirability of more cold storage 
 facilities in New Haven. Some of those in close touch with the produce 
 trade maintain that the demand for storage space is so small that a public 
 cold storage plant would not pay. They say that for a short period in the 
 autumn there is demand for space for apples; that there is some demand 
 for facilities for storing furs, meat, and general produce ; but that the 
 present facilities meet this demand so well that a public storage house would 
 not pay. 
 
 On the other hand, there are those who think that a public cold storage 
 plant with adequate terminal facilities is desirable and would be profitable. 
 The manager of one wholesale company is so sure that it would be successful 
 that he is willing to take stock in such an undertaking. On the whole, New 
 Haven is without adequate storage capacity, and its terminal facilities are 
 poor as compared with those of other cities of its size. Not all of the 
 present cold storage butter and eggs which are held in other cities, however, 
 would come to a New Haven cold storage plant ; the chain stores would not 
 utilize it to any extent because they provide their own storage facilities, 
 But there is reason to believe that a small public cold storage plant with good 
 terminal facilities would attract enough wholesale produce companies and 
 retail stores to make it a paying proposition. Instead of having the produce 
 stored in other cities and then reshipped to New Haven to be handled again 
 as at present, it could be placed in a New Haven storage plant and the cost 
 of one handling would be saved. 
 
29 
 
 CHAPTER VI 
 
 THE MARKETING OF MEAT IN NEW HAVEN 
 By R. E. BADGER 
 
 In discussing this topic it seems best to begin with a brief discussion of 
 the slaughtering and meat packing industry in the United States, and then 
 to take up the wholesale and retail trade in New Haven. The reasons for 
 speaking of the packing industry are: first, that almost all of New Haven's 
 meat supply comes from the large western packers, and it will add interest 
 to follow the meat from the live animal to the consumer ; secondly, there is 
 a popular misconception that the western packers extort an unfair price 
 from the consumer and that they are responsible for the high prices of meat. 
 
 Turning then, to the organization of the meat slaughtering and packing 
 industry in the United States, we find that a large part of the business is 
 centered in the hands of a few such concerns as Swift & Co., Armour & 
 Co., the Cudahy Packing Co., etc. These concerns all carry on business 
 on a large scale and are capitalized at amounts ranging from $5,000,000 to 
 $35,000,000. These companies are independent of each other in ownership, 
 and the Government has been unable to discover evidence that they are 
 working together to control the prices of live stock or meats. 
 
 Large scale operation is the necessary outcome of conditions peculiar to 
 the meat packing industry. By far the greater part of the live stock is 
 raised in the states of Texas, Iowa, Kansas, Nebraska, Wisconsin, Missouri, 
 and Illinois, while the principal points of consumption are in the east. With 
 the introduction of the refrigerator car in the late seventies and early eighties 
 it was found more economical to slaughter the cattle in the west, and ship 
 to the east the dressed meat and valuable byproducts, rather than the live 
 cattle, which shrunk en route and required careful attention. As a result, 
 the slaughtering industry has tended to become established near the supply 
 of live cattle. 
 
 The industry has further become localized in a few large packing centers 
 such as Chicago, Kansas City, Omaha, St. Louis, and Fort Worth, because 
 the complete utilization of byproducts requires an elaborate plant which is 
 economically possible only when a sufficiently large amount of business can 
 be handled. The principal reason, however, for large scale operation lies 
 in the technical processes of the industry. If one man were to attempt to 
 dress steers, were he very skilled in the operation, he might dress one a day. 
 If 157 men were used, as is the case in the large packing houses, each 
 specializing in some one very small operation, these 157 men can slaughter 
 and dress 1000 cattle in 10 hours, or an average of 6.6 cattle per day. In 
 the former case the cost would be over $3 a head, in the latter case about 
 75 cents a head ; but the equipment and organization required for the latter 
 process is not economically possible unless a large business can be handled. 
 Hence there has been a growing tendency toward large scale operation. 
 The integration of the slaughtering plants and byproducts plants brings a 
 further saving and consequently came as a natural result. These funda- 
 mental facts account for the present situation in the slaughtering industry. 
 
30 
 
 It would be very interesting to trace the actual operations performed in 
 transforming the live animal to dressed meat, but that would be beyond 
 the scope of this paper. What we are particularly interested in are costs, 
 and the elements which constitute these costs, in the various stages of this 
 transformation. 
 
 The first step in the process, of course, is the cost of transporting the live 
 animal to the primary market, say Chicago. This cost is relatively slight, 
 amounting to about 50 cents for 100 pounds, or roughly about one half 
 cent per pound, for cattle shipped a distance of 200 or 300 miles. (This 
 charge includes a commission for the cattle buyer, freight yardage, feeding, 
 etc.) Hence there is a very small difference between the price of cattle 
 on the farm and the price quoted in the primary market, but a price varying 
 somewhat according to the accessibility to this market. The principal pur- 
 chasers of cattle in the primary markets are the large packing houses and 
 the principal source of our supplies of fresh meats is the output of these 
 houses. The next element in cost, therefore, is between the live cattle price 
 and the price to retailers for dressed meats, or in brief the wholesale price. 
 By way of anticipation it should be said that these large houses dispose 
 of their fresh meats through their own branch houses, or commission houses 
 which they control. These branch houses sell largely direct to retail 
 butchers in different parts of the country, but sometimes they sell to jobbers, 
 who in turn cater to the retail trade. It is commonly thought that the 
 packer takes out a very wide margin of profit between the price he pays for 
 cattle and the price at which he sells to the retailer. That this belief is 
 erroneous can be proved; in fact it is an interesting fact that the packer 
 not infrequently sells the edible carcass at a price lower than he paid for the 
 live animal, because he also gets returns for the byproducts. 
 
 The packer, when he buys cattle, buys about 55 per cent of edible meat 
 and 45 per cent of other material which is of no value for food purposes. 
 If this remaining 45 per cent were not made use of, it is evident that the 
 edible meat would have to sell at a price 182 -per cent as great as was paid 
 for the live weight in order to realize a gross price equal to what was paid 
 for the carcass. Take a 1000 pound steer only 550 pounds of meat are 
 available for sale to butchers. If 10 cents per pound is paid for the steer 
 undressed, 18.18 cents per pound would have to be charged for the dressed 
 meat alone to realize the $100 paid for the live steer, to say nothing of the 
 cost of slaughtering and marketing. The corresponding "dressing per cent" 
 for lambs is 50, and for hogs, 75. 
 
 In order to see what profit one packer makes on edible meat, let us take 
 at random the condition of the market for the week ending Feb. 24, 1917. 
 (The same results, however, might be obtained from the figures of any 
 other week.) 
 
 Price necessary 
 
 (Dressing ratio) to realize amt. 
 
 Chicago livestock market Per cent of paid to farmer if Chicago prices 
 
 dressed meat to only dressed meat actually quoted 
 Grade Quotations gross \vt. were usable by packers 
 
 Choice Steers 10.0 55$ 18.2 16.0 
 
 Western Lambs 13.5 50$ 27.0 19.0 
 
 Hogs 12.2 75$ 16.5 14.5 
 
From these figures it may be seen that the packing house receives less for 
 the "actual edible meat" than was paid for it. If, now, we were to abolish the 
 large slaughtering concerns and substitute a system of independent slaughterers 
 spread over the country, under which system little or no use could be made 
 of a large proportion of the byproducts of cattle, would meat be higher or 
 cheaper? It is very clear that the complete utilization of byproducts, made 
 possible by large packing companies, results in a lower price for meat than 
 could otherwise be the case, especially as all manufacturing costs are reduced 
 to a minimum. 
 
 The packer must make a profit, though, and does make one for he skill- 
 fully manufactures the various byproducts and realizes on these as well as 
 the actual edible meat. The actual gross profit realized by a packer differs, 
 inasmuch as some lots or shipments realize more than others. The gross 
 margins realized on nine lots of cattle as shown on page 71 in Report 
 No. 113 of the United States Department of Agriculture, 1916, "Methods 
 and Costs of Marketing Livestock," expressed as per cents of total sales, 
 were as follows: 8.44; 4.35; 7.64; 8.68; 3.92; 1.86; 6.53; 6.02; 6.53. 
 This, let it be noted, is gross margin. These gross margins cover what was 
 realized on all of the saleable products of the cattle, except the more refined 
 byproducts. Before the packer has realized a net profit he has still to 
 deduct the expenses of doing business. The expenses of one large packing 
 house in 1914 amounted to .58 of a cent for every pound of beef dressed. 
 The expenses of branch houses at that same time were .52 of a cent for every 
 pound handled. From these figures it may readily be seen that no 
 exorbitant profit is exacted by the packer. 
 
 What has been said so far is more or less anticipatory to our main 
 object, a discussion of the meat situation in New Haven; but it has such 
 a vital connection with it that to omit it would be like starting to read a 
 book at the middle chapter. With the above points in mind we will now turn 
 to our main subject, and examine the marketing of meat in New Haven 
 both from the wholesale and retail side, and we will seek to ascertain the 
 further spread in the cost of meat due to the amount taken out by the 
 retailer before the meat finally reaches the consumer. 
 
 THE WHOLESALE MEAT MARKET IN NEW HAVEN 
 
 It is rather difficult to define exactly what is meant by selling meat at 
 wholesale, for there is a tendency for one set of dealers to overlap another. 
 Strictly speaking, by the wholesale price is meant the price at which certain 
 standard wholesale cuts of meat are sold by packers' branch houses and 
 jobbers to retailers and to railroads, steamships, and large hotels. 
 
 In New Haven meat is sold at wholesale by the branch houses of Morris 
 & Co., Armour & Co., The Cudahy Packing Co., Wilson & Co., The 
 Indianapolis Abattoir Co., and thru Strong, Barnes & Hart, which acts 
 as a commission house for Swift & Company. In addition to these 
 representatives of the large packers, there is a distinct class of jobbers who 
 buy in large lots from the packers' branches in New Haven, New York, 
 or Boston, and sell, perhaps in smaller lots on the average, to the retail. 
 
32 
 
 hotel, and boarding house trade. There are four of these jobbers, two of 
 whom have no warehouses but simply sell to the outlying retail stores from 
 their autos. In addition to these two classes of dealers who are located in 
 New Haven, several of the large Boston jobbing houses send representatives 
 here every week, and one of them sends a salesman twice a week; not 
 infrequently representatives of New York houses also visit New Haven. It 
 is thus seen that New Haven is very well served from the wholesale side; 
 in fact for a city of this size it is perhaps over-represented, at least from 
 the wholesalers' standpoint; for there is rather severe competition, and con- 
 sequently New Haven is not considered a good market in which to sell. 
 This point will be emphasized further when we discuss New Haven prices 
 as compared with those of other markets. 
 
 All of the packers' branches or agents located in New Haven have large 
 and well-equipped plants for handling fresh meats, each having its own 
 "coolers" and refrigerating plants. The whole carcasses are shipped directly 
 to New Haven by refrigerator cars from the parent company's slaughtering 
 plant, whether this be in Chicago, Omaha, St. Louis, or Kansas City. From 
 these cars the meat is quickly transported to their own refrigerators and kept 
 there in a semi-frozen condition until delivered to the retailer. The larger 
 retailers frequently make their selections by personally inspecting the meat 
 in these coolers, but the houses send salesmen to canvass the smaller retailers. 
 The houses all maintain equipment for delivering the meat to the retailer. 
 
 In selling beef, the wholesalers sell whole carcasses to the largest stores, 
 while to the medium-sized stores they usually sell half carcasses or quarters, 
 fore and hind. Then for the small dealers they cut the forequarter into 
 the rib, chuck, shank, plate, brisket, shoulder ; and the hind into round, loin, 
 hip, and short loin. In the case of lambs they sell whole carcasses to the 
 larger stores, as in the case of beef, while, if it is desired, they make the 
 following cuts, leg, loin, and rack. The customary pork cut sold here con- 
 sists of loins. In addition to fresh meats some of these houses carry a line 
 of eggs, butter, poultry, and canned goods. 1 There is no way of accurately 
 determining what per cent of New Haven's meat supply comes from these 
 western concerns, but from various estimates which have been made by 
 those acquainted with the meat trade it is fairly safe to assume that about 
 90 per cent is handled by the western houses, either directly or indirectly 
 through jobbers. 
 
 The next class of dealers to consider is the jobbers, who have definite 
 functions to perform in the meat trade. For example the larger jobbing 
 concerns, by buying and selling in other markets as well as in New Haven, 
 act as steadiers of prices. Furthermore, these dealers buy in large quan- 
 tities and perform the function of catering to a large class of small retail 
 stores for which they make smaller cuts than it is economical for the large 
 packing houses to make. Again, by having more intimate connection with 
 the small dealer than the large houses, they are able to extend credit when 
 the branch house would hesitate to do so. By buying in rather large quan- 
 tities these dealers are able to get a somewhat lower price from packers' 
 
 1 See Chapter on Butter and Eggs. 
 
33 
 
 branches than is quoted on average retail lots, and they no doubt get a some- 
 what higher price for the smaller cuts. This difference in price represents 
 only a margin of profit to which they are entitled in view of the service 
 they perform. It was not found, however, that the prices of the large 
 jobbers were any higher for the same grades of meat in the same quantities 
 than those of the packers' branch houses. 
 
 The larger jobbers carry on their business in a manner quite similar to 
 that of the branch houses. They have their own coolers and refrigerating 
 systems. Retailers come in and make selections, or meat is sold by personal 
 solicitation. In the case of the small jobbers, they have auto trucks which 
 they load up with meat obtained from the larger houses and go around from 
 store to store selling this supply. They take care of the smaller and cheaper 
 stores and have almost no influence in the market. It is estimated that the 
 jobbers as a whole handle about 8 per cent of New Haven's meat supply; 
 two per cent is locally slaughtered ; and the other 90 per cent is sold thru 
 packers' branch houses and representatives. 
 
 LOCAL SLAUGHTERING 
 
 This gives us a general summary of the different classes of wholesale meat 
 dealers in New Haven, their functions and their methods of doing business. 
 The next topic is the extent to which local slaughtering is carried on in 
 New Haven. 
 
 With the exception of a few old cows which are killed at Allingtown it 
 may be said that no slaughtering of cattle is carried on in New Haven. 
 The meat which is killed at Allingtown for the most part goes through the 
 kosher ritual, the forequarter being consumed by New Haven Hebrews, 
 while the hindquarters are sold to a cheap Italian trade. This cannot be 
 said of hogs, however, for the firm of Sperry & Barnes has a very up to date 
 slaughtering plant for killing and dressing hogs, and manufacturing pork 
 products. They slaughter from 3000 to 4000 hogs a week, and among their 
 products are found some of the best hams, bacons, and sausages marketed 
 in New England. They ship the greater part of their live hogs from the 
 west, although some are obtained from Vermont and a few from Connecticut 
 farms. The local supply is so small and scattered, however, that it cannot 
 be economically used to any very great extent. The firm of Strong, Barnes 
 & Hart formerly did some beef slaughtering, but this has been discontinued 
 during the past year, and their killing is now confined to sheep. They kill 
 almost nothing now but Connecticut lambs obtained from the Lyman farms, 
 and these lambs are of the very highest grade, so far superior to western 
 lambs that they regularly command a wholesale price of 2 to 3 cents a pound 
 over the quotation of western lambs. The quality of this grade of lamb 
 compares very favorably with the New York City dressed lambs. The out- 
 put of these lambs is small as compared with the total consumption, and 
 almost all of the output is disposed of in the local market. 
 
34 
 
 MEAT PRICES 
 
 How are New Haven meat prices determined and what relation do they 
 have to those of other cities? Theoretically one would say that New Haven 
 prices would be higher than Chicago prices by an amount equal to the 
 freight charges from Chicago to New Haven, plus the handling charges in 
 New Haven. The freight rate on fresh meat is 47^ cents per hundred 
 pounds, or a little less than half a cent per pound, and the handling cost 
 may be estimated to be about the same, making a total of roughly $1.00 
 a hundred, or one cent a pound, to be added to the Chicago price. As a 
 matter of fact, however, since the Chicago quotations are figured on a basis 
 including the handling charge, we can include only the $.47 per hundred- 
 weight. While in the long run prices may show this difference, as a matter 
 of fact New Haven prices are often below the New York or even the 
 Chicago quotations. This is due to the presence of so many branch houses, 
 and the resulting severe competition. It often happens that much meat is 
 handled at a loss owing to this competition. When it occurs that all, or a 
 large part, of the dealers have a slight surplus, to clear the market neces- 
 sitates a low price, for it is better to sell at a slight loss than to reship to 
 some other point. This is abnormal, but according to the concensus of 
 opinion among the beef trade, prices are lower than Chicago prices very 
 frequently. 
 
 There are two distinct arrangements under which packers' branch houses 
 may operate. The branch house may handle all meats on a commission basis, 
 selling meat for an agreed commission, its profits contingent on the amount 
 of those commissions, or it may be simply a branch house of the main 
 company, with its manager drawing a salary and deducting expenses from 
 sales before refunding the same to the parent company. In either case the 
 meat is shipped to the New Haven branch or agent under what is known 
 as a "Request" ; this is a figure representing the value of the lot in New 
 Haven, based on Chicago prices. The dealer in New Haven attempts to 
 follow this as far as possible, but he, of course, is confronted with the fact 
 that there are many other dealers in the same market and it is "up to him" 
 to dispose of his product. Should the market be overstocked, as it some- 
 times is, he would have to lower his price to dispose of his supply. The 
 opinion of several of the larger houses was to the effect that the "request" 
 price is not as a rule obtained, but that meats sell somewhat under these 
 figures. 
 
 Figures were obtained showing how much of the spread between the price 
 of live cattle and the price of meat to the retailer is attributable to the 
 selling costs of the wholesale organization in New Haven. In an average 
 branch house, the actual expense of doing business amounts to approximately 
 6 per cent of gross sales. With beef selling at 15 cents per pound this would 
 mean less than i cent per pound. This indicates that the wholesalers take 
 out a remarkably small margin to cover expenses. The high cost of meat 
 is due, not to the excessive profit of the packer or the jobber, but to the 
 increasing demand for meat and the diminishing production of cattle. The 
 live-weight cost of cattle has actually risen 80 per cent since 1914, a fact 
 
35 
 
 due to the conditions entirely beyond the control of any "beef trust," but 
 resulting from fundamental economic conditions such as increasing popula- 
 tion, demand for agricultural products which raise the value of land, and 
 increasing demand for meat products. The consumer will perhaps be sur- 
 prised to learn that his own little retailer, from whom he buys his roast of 
 beef every week (or now perhaps every month) in reality takes a gross 
 margin so far in excess of that which the packer takes, that the latter sinks 
 into insignificance. 
 
 COMPARISON OF RETAIL AND WHOLESALE PRICES 
 It is difficult to make any exact comparison of prices because of the 
 large number of variable factors. In cutting up meat to sell at retail, each 
 individual store has its own peculiarities ; each has its own method of 
 making cuts, some trimming the meat more than others, and each has its 
 own standard of service. These factors must all be reflected in the final 
 price. As between different localities, there are still wider differences,, and 
 the peculiarity of the local demand, whether it prefers rumps, sirloins, or 
 roasts, also has its effect on prices. With this in mind we shall turn to the 
 best available figures for making our comparison. The wholesale figures 
 for New Haven given below represent actual quotations which were given 
 by the packers' branch houses in New Haven for the week ending March 3, 
 1917. The wholesale figures for New York are based on the quotations 
 appearing in the National Provisioner for March 3, 1917. The retail figures 
 for New Haven and New York represent the averages of a large number 
 of prices obtained from stores in various sections of the cities by personal 
 interview on March second. 
 
 Cut 
 Sirloin 
 
 Wholesale 
 X. V. 
 
 * 18-19 
 
 Retail 
 X. Y. 
 
 2O 4 
 
 Wholesale 
 N. H. 
 
 1619 
 
 Retail 
 N. H. 
 
 3C -3 
 
 Round 
 
 14 ic 
 
 2O ^ 
 
 l6I7 
 
 ^2 
 
 Rib 
 
 igU-IQ 
 
 28 ^ 
 
 1 6 20 
 
 267 
 
 Chuck 
 
 lt l /2 14 
 
 10 ^ 
 
 14 
 
 22 4 
 
 Pork loins . 
 
 20 
 
 26.6 
 
 10. E; 
 
 2^.4 
 
 These figures must be used with the greatest caution, for the wholesale 
 quotations represent the price for a whole cut, which, when subdivided, 
 sells at a wide range of prices, depending on the quality of the cut, whereas 
 the retail prices shown above are simply the average of prices for the 
 best cuts. A certain amount also has to be deducted as waste. 
 
 In order to ascertain the actual gross profit of a retailer based on the 
 retail price of meat it would be necessary to do one of two things. We 
 might take his gross sales of beef over a period and deduct from this the 
 wholesale prices which he paid for this beef. The difference resulting would 
 represent the amount of gross profit based on sales. But it was impossible 
 to ascertain such figures. Another possibility is to ascertain the percentages 
 which each cut represents in 100 pounds of beef, and find out what prices 
 are charged for these cuts when the wholesale price is at a certain figure. 
 The difficulty of this method is that every store has its own basis of prices, 
 
-jfr- 
 
 some requiring more profit than others. A large New Haven store fur- 
 nished the following figures which represent the percentage that each cut 
 is of the total weight, and the retail prices charged when the wholesale 
 price of beef is between 15 and 16 cents per pound. 
 
 Name Percentage of Retail price Total realized from 
 
 of cut total weight (average) each 100 pounds 
 
 Roast Beef 9 $-25 $2.25 
 
 Loin 22 .24 5.28 
 
 Round 21 .23 4.83 
 
 Chuck 22 .20 4.40 
 
 Clod 9 -16 1.44 
 
 Plate 17 -14 2.38 
 
 100 $20.58 
 
 Approximately 5 per cent has to be deducted as waste, which leaves a net 
 amount of $19.55. When the wholesale price of beef is $15.00 per 100 for 
 whole carcasses, a gross margin of 23.3 per cent of sales is realized on this 
 basis ; when the wholesale price is $16.00 per 100, the gross margin realized 
 is 18.2 per cent of sales. It must be remembered that these figures represent 
 a large house doing business on a fairly close margin. A smaller store cater- 
 ing to its own family trade would probably sell at a figure high enough to 
 enable it to take out a margin of 25-33 per cent of its selling price. This 
 estimate was made by one thoroughly conversant with the meat business 
 in New Haven. These figures correspond closely to those shown in Bulletin 
 No. 113 of the United States Department of Agriculture, referred to above, 
 where the gross retail margins on nine lots of beef were 10.81, 8.47, 33.29, 
 1.88, 15.28, 13.93, 22.90, 21.83, and 13.82 per cent of sales respectively. In 
 other words, retail butchers account roughly for from 18 to 30 per cent of 
 prices charged to consumers. 
 
 This retail gross margin of from 18 to 30 per cent of sales is by far the 
 largest element in the cost of marketing meat from producer to consumer. 
 New York retail prices are somewhat lower on the whole than New Haven 
 prices, although the difference in wholesale prices would not seem to warrant 
 this. The quality of meat which comes to New Haven is, to be sure, fairly 
 high, yet the quality seen by the writer in New York was fully as good, 
 if not better. Further, it is hardly conceivable that the cost of doing busi- 
 ness could be more in New Haven. The only explanation which the writer 
 can give is that roasts are less in demand in New Haven and have to be 
 sold under New York figures, while steaks are more in demand, and con- 
 sequently sell at a higher figure, the net balance, however, being slightly 
 higher for New Haven. 
 
 The retailer's cost of doing business averages well over 15 per cent, and 
 in many cases it is over 20 per cent of his sales. He is under heavy expenses, 
 not the least of which are occasioned by maintaining delivery service and 
 giving credit. Not a little might be saved in marketing costs if the consumer 
 were willing to pay cash and take his purchases home ; but the average con- 
 sumer prefers to pay for this service. With such a cost of doing business 
 then, a 20 to 25 per cent margin is not out of reason. In fact there are not 
 many butchers growing wealthy even with the high cost of meat. 
 
37 
 
 CHAPTER VII 
 
 NEW HAVEN'S MILK SUPPLY 
 By J. D. HAUSLEIN 
 
 During the year 1916 there were in New Haven nearly one hundred milk 
 dealers who distributed milk over more than one hundred and sixty routes. 
 The average amount of milk per distributor was 750 quarts per day. The 
 smallest amount of milk distributed was 15 quarts, and the largest amount 
 over 10,000 quarts per day. In the milk trade there are constant changes in 
 the number and personnel of distributors. In the preceding year, 1915, 22 
 route men discontinued business. New members enter the trade at frequent 
 intervals. 
 
 SOURCE OF SUPPLY 
 
 Although New Haven receives some cream from Massachusetts, it obtains 
 its milk supply entirely from Connecticut and mainly from points within a 
 radius of 50 miles. The following table shows the places in Connecticut 
 whence milk is shipped to New Haven, and the number of producers reported 
 at each place : 
 
 No. of 
 Place Producers 
 
 W. Haven 22 
 
 Hawleyville ...... 15 
 
 Brookfield Center 7 
 
 No. of 
 Place Producers 
 
 Northf ord 32 
 
 N. Guilford 22 
 
 Orange 52 
 
 N. Branford 29 
 
 Clinton 24 
 
 East Haven 10 
 
 Derby I 
 
 Westville 4 
 
 Hamden 23 
 
 New Haven 4 
 
 Guilford 7 
 
 Madison 2 
 
 Woodbridge 36 
 
 Cheshire 7 
 
 W. Cheshire 5 
 
 Southbury 32 
 
 South Britain 3 
 
 Woodmont 3 
 
 Washington I 
 
 Totoket 5 
 
 Wallingford 16 
 
 Montowese 4 
 
 Stevenson 2 
 
 Durham 19 
 
 Westfield 2 
 
 N. Haven 39 
 
 Bethany 39 
 
 E. Wallingford .. 2 
 
 No. of 
 
 Place Producers 
 
 Highwood 5 
 
 Seymour 2 
 
 Roxbury 7 
 
 Branford 3 
 
 Allingtown i 
 
 Gilead 32 
 
 Amston 84 
 
 West Chester 50 
 
 W. Goshen 3 
 
 Goshen 9 
 
 Collinsville i 
 
 Fair Haven i 
 
 Falls Village .... 3 
 
 Middlefield i 
 
 East River i 
 
 Kent . 6 
 
 E. Cheshire 4 
 
 Total number of places, 48. 
 Total number of producers, 682. 
 
 The number of producers at any given place is subject to frequent changes, 
 and the competition between New Haven and the other large cities in 
 Connecticut for milk causes many changes from month to month in the 
 places milk is received for New Haven shipment. It will be seen from the 
 accompanying map that little milk is received from the territories immedi- 
 ately around Bridgeport and Hartford, while at some distance from these 
 cities producers ship milk into New Haven. This accounts for the fact that 
 25.3 per cent of the shippers are in the 40-50 mile zone, as shown in the 
 
following table, which gives the number of producers within each ten mile 
 zone around New Haven, and the per cent in each zone : 
 
 Zone number in miles 
 from New Haven 
 
 No. of 
 Producers 
 
 Less than 10 miles 277 
 
 From 10 to. 20 miles . 120 
 
 20 
 30 
 40 
 50 
 
 30 
 40 
 50 
 60 
 
 Over 60 miles 
 
 SEASONAL SUPPLY 
 
 29 
 
 26 
 
 173 
 
 48 
 
 682 
 
 Percentage 
 of total 
 
 40.9 
 
 17-5 
 4.2 
 
 3-8 
 
 25-3 
 
 7- 
 
 1.3 
 
 100. 
 
 The raw milk supply for New Haven is subject to the most marked sea- 
 sonal changes. From January to the midsummer drought there is a gradual 
 increase in milk produced on the dairy farms, and from then on to December 
 there is first a sharp drop and then a gradual falling off. The reason for 
 the increase in production during the first part of the year is that dairy- 
 farmers allow their cows to become fresh in the spring, and early summer; 
 and the more or less abundant supply of green grass keeps milk cows at a 
 high degree of milk-producing efficiency. In the latter half of the year 
 these conditions are reversed. The following chart shows the percentage of 
 total annual supply received each month by one of the largest companies 
 in New Haven. 
 
 10 
 3 
 
 8 
 
 7 
 
 lo 
 5 
 
 4 
 3 
 
 1 
 
 
 'o 
 
 
 
 
 / 
 
 ^ 
 
 
 
 
 
 
 
 
 IV/o 
 
 9 
 8 
 7 
 b 
 5 
 4 
 3 
 2 
 1 
 
 
 
 
 t 
 
 #- 
 
 x 
 
 
 
 __ 
 
 ii>^ 
 
 \ 
 
 
 ^ 
 
 
 
 X, 
 
 / 
 
 
 
 
 
 
 
 
 * 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Jan. Feb. Mar Apr Nay June July ^u^. Sept. Oct. Nov. Dec. 
 
 Percentage of total milk supply received each month, 1916, by one of the 
 largest milk companies in New Haven. 
 
-39 
 
40- 
 
 In the milk distributing business in New Haven, competition between 
 milkmen for the supply is so severe that they agree to take all of the milk 
 produced by their producers during the entire year. This is necessary in 
 order that the dealers may be assured of as large a supply as possible 
 during the period of milk scarcity. During the season of large production, 
 the problem confronting the distributor is to find a means of using the 
 surplus milk. Methods of disposing of the surplus vary among the different 
 city distributors. Some skim the surplus milk for cream, sell the cream, and 
 dispose of the skimmed milk to hog raisers ; or sometimes they simply throw 
 it away. Other milkmen use surplus milk in the manufacture of ice cream. 
 A third set make considerable quantities of butter. 
 
 CONSUMPTION 
 
 Dairymen estimate the per capita daily consumption of milk in New Haven 
 at one pint per person. If the population of New Haven were placed at 
 170,000 this would mean that the total daily amount of milk necessary to 
 supply the city would be 85,000 quarts. The Connecticut Milk Producers' 
 Association places the daily milk supply at 72,000 quarts, and this is probably 
 about accurate, indicating a per capita consumption of about .42 quarts per 
 day. 
 
 MARKETING METHODS 
 
 Milk is marketed in the city in three separate ways, at retail in bottles., 
 at wholesale in bottles, and at wholesale in cans. Approximately 48.4 per 
 cent of the entire amount of milk distributed in New Haven is sold at retail 
 in bottles ; 31 per cent is sold at wholesale in bottles ; and 20.6 per cent is 
 sold at wholesale in cans. Milk sold at retail in bottles is practically all 
 delivered to private families, the average per family being about 1.5 quarts. 
 Milk sold wholesale in bottles goes to retail market men and grocers, board- 
 ing houses, and to some restaurants and soda fountains. Milk sold wholesale 
 in cans goes largely to restaurants and hotels, although some of the larger 
 confectionery stores doing a soda fountain business use large quantities of 
 milk in cans. 
 
 The problems of distribution may be divided into four parts (i) trans- 
 portation, (2) clarifying, pasteurizing, and bottling, (3) delivery, (4) super- 
 vision. 
 
 Transportation. Most of the milk brought into the city for distribution 
 thru the regular channels is in 40 quart cans. Some milkmen in New Haven 
 produce their own milk. In such a case the bottling plant is located at the 
 place of production, and the problem becomes one of properly treating the 
 milk, and delivering it either in bottles, or in cans holding upwards of 10 
 quarts. Fifty per cent of the milk shipped into New Haven in 40 quart cans 
 is shipped by rail. The rest is hauled in either by horse and wagon, or by 
 motor trucks. The average cost of the transportation of milk to New Haven 
 is one half cent per quart. Transportation costs on milk are proportionate 
 to the distance the milk is transported. When milk comes from long dis- 
 tances by rail, it is necessary to use refrigeration. The cost of refrigeration 
 
is borne partly by the railroad and partly by the New Haven milk distributor. 
 By far the greater portion of the milk produced within a radius of 20 miles 
 from New Haven is either hauled to the city by team or truck; the larger 
 portion of milk produced outside of this radius is shipped by rail. However 
 there seems to be a tendency to substitute the motor truck for railroad 
 transportation even for the greater distances. 
 
 Clarifying, Pasteurising, and Bottling. The process of clarification frees 
 the milk of foreign particles. The process consists of the application of 
 centrifugal force to the milk; the result being that foreign matter is 
 separated from the milk, leaving it clean. The application of centrifugal 
 force to milk, however, serves to break up the colonies of bacteria in the 
 milk, and causes their rapid multiplication, with the result that milk turns 
 sour much more readily than if not clarified. If the milk is immediately 
 pasteurized after being clarified the danger of souring is lessened. Improved 
 machinery for clarifying milk is being rapidly introduced; the technical 
 improvements in this machinery render the distributors liable to a rapid 
 depreciation of their clarifying machines largely due to dangers of obsoles- 
 cence. There are so many elements of cost that enter jointly into the cost 
 of operating a clarifier that it is practically impossible to find any accurate 
 figure of the cost of clarifying. For example, the same power that is used 
 in clarifying is also used for runnvng an agitator, which stirs and so keeps 
 milk stored in tanks at the same uniform consistency of cream and milk 
 solids, until ready for bottling or drawing into cans. It is practically 
 impossible to calculate separately the cost of the coal used to generate power 
 for the clarifier, the agitator, and power and heat for the pasteurizer. 
 
 Pasteurising. There are at present three methods of pasturizing. (i) 
 Pasteurizing in the bottle, which involves the placing of milk in bottles 
 which are then plunged into hot water or steam for a period of time 
 sufficient to kill disease bacteria or microbes. (2) "Holding," which consist 
 of running the milk into a vat and heating it to a temperature of from 
 143 to 145 degrees for a like period. (3) "Flashing," which means the 
 raising of the milk to a high temperature for a short time, usually performed 
 in or over heated pipes. The method which is conducive to the best results 
 is that of pasteurizing in the bottle. The same progress in the technical 
 development of pasteurizing machinery has taken place as in clarifying 
 machinery, and the same dangers of obsolescence are present. The life of 
 a good pasteurizer or clarifyer is not over five years. Likewise there are 
 so many elements that enter into the cost of pasteurizing that it is impossible 
 to secure an accurate figure. A conservative estimate of the cheapest 
 method, however, including both pasteurizing and clarifying, is one-half 
 cent per quart. 
 
 Bottling. This is one of the most important and costliest functions of 
 the milk distributor. Since almost 80 per cent of the total milk supply of 
 New Haven passes to the consumer in bottles, the work of bottling milk, 
 collecting, cleaning, and filling the bottles is one of the principal features 
 of the milk trade. Each distributor has to keep a stock of about four bottles 
 for each quart of milk bottled. These four bottles are distributed over the 
 
42 
 
 needs of the trade as follows: One in the process of cleaning and filling; 
 one in the hands of the user ; one in transit to and from the plant ; and 
 one astray or in reserve or in some miscellaneous use. Quart bottles cost 
 $4.00 per gross or 2.7 cents apiece, and pint bottles $5.00 per gross, or 3.5 
 cents apiece, in 1916. The price in 1917 has risen to $4.90 per gross for quart 
 bottles, or 3.4 cents apiece, and $6.50 per gross for pints, or 4.5 cents apiece. 
 It is customary for each milk distributor to have his name stamped on the 
 bottles which he uses. A different stamp is sometimes used on bottles sold 
 at wholesale to retail stores, from the one on bottles which are delivered 
 from house to house. Losses from breakage and non-return of bottles 
 amount to about one per cent of all bottles delivered each day; this means 
 that a dealer has to practically replenish his whole stock of bottles in the 
 course of a year. In order to facilitate the collection of stray bottles, and 
 their more prompt return to the respective owners, the New Haven Milk 
 Bottle Exchange was organized. 
 
 THE NEW HAVEN MILK BOTTLE EXCHANGE 
 The 'Exchange has been organized and in operation for more than nine 
 years. It was originally conducted as a department of a single company, 
 which distributed the bottles it received to their rightful owners; but the 
 need for a central clearing house, and for some form of a protective associa- 
 tion to attend to the collection of bottles and their return to the proper 
 owners led to the formation of the present organization. This consists of 
 an association of milkmen and dairymen of New Haven, Orange, Westville, 
 Woodbridge, East Haven, and Hamden. All but three or four milk dis- 
 tributors in New Haven belong to the Exchange. The dues are 50 cents 
 per month for each member, and if not paid after a lapse of 6 months, 
 membership is suspended, and the suspended member receives no more 
 bottles from the Exchange. 
 
 The functions of the Exchange are to collect and sort out bottles, and to 
 act as a protective association of milkmen. Bottles on being brought back 
 by the driver are placed together in crates holding half a gross each and 
 sent to the Exchange where they are sorted. The crates are then placed in 
 compartments one for each member of the Exchange, awaiting transference 
 back to the rightful owners. For each bottle sent to the Exchange by the 
 milkmen a credit of I cent is given, and for each bottle returned to its 
 rightful owner a charge of 2 cents is made. The Exchange also receives 
 bottles from ash-men and street cleaners. No bottles are received from 
 peddlers. The superintendent of the Exchange works entirely on a com- 
 mission basis. 
 
 Owing to the inadequate facilities it is impossible to store all the bottles 
 under roof, hence the breakage in winter due to freezing may run as high 
 as 2 per cent a day. About 30,000 bottles pass thru the Exchange each 
 month, of which there are considerably more quart than pint bottles. Pint 
 bottles are less apt to be returned, because housewives find them useful as 
 containers for preserves and other articles although this practice is con- 
 trary to law. The principal reason why bottles have to pass thru this 
 
43 
 
 exchange to be sorted out is that housewives substitute one dealer's bottle 
 for another when they return them. 
 
 The function of protection is one of the most important of the Exchange. 
 No member is allowed to use the bottle of another member, and if he is 
 found doing so, he is fined 50 cents for each bottle so used. This prevents 
 the fraudulent use of a competitor's property which is prevalent in some 
 cities. The superintendent of the Milk Exchange is empowered to inves- 
 tigate any complaints of the wrongful use of bottles and his report is 
 submitted to the Executive Committee of the Exchange for final action. 
 
 The Exchange also collects, sorts, and returns milk cans. The charge 
 for this service is 25 cents per can, and nothing is allowed the dairyman 
 who sends in the can. The cost of a 40 quart can, new, is $3.15. 
 
 Delivery. Milk delivered from house to house is carried principally by 
 horse and wagon altho automobile trucks are used in a few instances. 
 Milk delivered to stores is also largely carried by horse and wagon, with 
 a somewhat greater proportion carried by auto-truck than in house delivery. 
 Autos are used still more frequently for the delivery of large wholesale 
 quantities in cans. Delivery labor costs about three quarters of a cent per 
 quart of milk delivered. There are no adequate 'figures on the costs of wear 
 and tear, up-keep, and replacement of delivery equipment, but it may be 
 estimated as about equal to the labor cost. 
 
 Supervision. The costs of milk-distribution include overhead charges, 
 rent, depreciation, insurance, bad debts, collection, etc. Milkmen allow credits 
 of from i week to 3 months. The usual period of credit, however, is i week. 
 It is found impossible by many dealers to have their delivery men make 
 collections, and separate collectors therefore have to be employed. Payments 
 for collecting are usually on a commission basis. 
 
 Estimates of Cost of Distributing Milk 
 
 PER. QT. 
 
 Transportation from farm to plant $.005 
 
 Clarifying, pasteurizing, bottling, cooling 020 
 
 Delivery and collecting accounts 015 
 
 Supervision and clerical 005 
 
 Total Cost $-045 1 
 
 During the year 1916, the usual retail price of milk in bottles was nine 
 cents per quart ; the average price to the wholesale-in-bottle trade was about 
 724 cents; and the average price at wholesale in cans was about 6^4 cents. 
 The average price paid to producers during 1916 was about 4^ cents per 
 quart. The accompanying diagram shows approximately the various ele- 
 ments composing the retail price of milk. 
 
 When milk was selling at nine cents a quart in 1916, the net profit to one 
 of the largest distributors in New Haven was less than one-fourth of a cent 
 a quart. Recent investigations show that the large milk dealers in New 
 York City obtain a net profit of about one-third of a cent a quart. 
 
 is does not include rent, insurance, depreciation, and profit. 
 
44 
 
 s 
 c 
 
 calc 
 
 ents 
 
 
 
 9- 
 
 
 
 81 
 
 
 Clarifying, pasteurizing, 
 bottling, etc., 2 cents 
 
 7- 
 
 
 
 
 
 Delivery and collecting, 
 
 
 e: 
 
 
 \y 2 cents 
 
 
 
 Overhead expense and 
 
 
 5" 
 
 
 profit, y cent 
 
 
 Transportation, ^ cent 
 
 41 
 
 
 
 Y- 
 
 
 
 
 T. 
 
 
 To producer, 4-^ cents 
 
 
 T- 
 
 
 
 Why milk cost nine cents a quart in 1916. 
 
45 
 
 In conclusion, it must not be forgotten that the first consideration for con- 
 sumer and distributor alike is the supply in convenient form of a good 
 quality of milk, clean, pure, and wholesome. At present the legal standard 
 is a whole milk that contains at least 3% per cent of butter-fat. In order 
 to maintain this standard of milk some of the dairymen in New Haven have 
 entered into a policy of buying milk on a butter-fat basis, altho it is as yet 
 by no means a common method. It is often the case that milk producers 
 fail to understand the advantages of buying and selling milk on the butter- 
 fat basis. The tendency towards this method is to encourage the production 
 of an increasingly superior grade of milk. A milk of good quality should 
 contain at least 4 per cent butter-fat, but it might be desirable to have milk 
 of different degrees of richness sold at retail, with prices adjusted to 
 butter- fat content. 
 
 CHAPTER VIII 
 
 HOW NEW HAVEN HOUSEWIVES PURCHASE 
 
 In cooperation with the New Haven Housewives' League information was 
 received from 131 New Haven women concerning their methods of buying 
 foodstuffs. These reports are from different parts of the city, and in tabu- 
 lating them, they have been divided into three groups: first, those living in 
 the territory from Orange Street to Prospect Street, and called hereafter 
 the Whitney Avenue Section; second, a miscellaneous group, including 
 families in other parts of the city; third, 16 families living in the Italian 
 district. 
 
 An effort was made to find out to what extent New Haven women rely 
 on neighborhood corner grocers, hucksters, fancy grocers, and large down- 
 town stores. This last class includes those on lower State Street, the Pure 
 Food Market, and Welch's, referred to hereafter as State Street stores. 
 
 Out of in women who reported the principal kind of dealer from whom 
 they buy fruits and vegetables, 41 per cent said that they relied principally on 
 corner grocers, 41 per cent on State Street stores, 12 per cent on hucksters, 
 and 5 per cent on fancy grocers. This indicates that the large down-town 
 food store is of about the same importance as the corner grocer. These 
 proportions vary in different parts of the town. People living in the Whit- 
 ney Avenue section buy more from State Street stores and down-town fancy 
 grocers than people living in other parts of the town. Those living in the 
 Italian section rely almost entirely on corner grocers and hucksters. 
 
 Of course a great many families buy from two or more classes of stores. 
 Of the 131 replying, 71 buy to a certain extent from hucksters, and 55 from 
 fancy grocers. As will be seen from the figures above, only 5 rely principally 
 on the fancy grocer ; most of them go to this class of store either for special 
 products, such as butter, eggs, tea, and coffee, or only occasionally in order 
 to make special purchases for entertainments or dinner parties. 
 
 In buying meats, 42 housewives out of 107 rely principally upon State 
 Street stores, and the other 65 buy principally from neighborhood butchers. 
 
- 4 6- 
 
 The Whitney Avenue people appear to patronize the State Street stores 
 to a greater extent than people in other parts of the city. Eighty, or 75 
 per cent of the 107 answering, claim that they go to store and select their 
 own cuts. It must be borne in mind that the ladies connected with the 
 Housewives' League, do not represent the average New Haven housewife, 
 inasmuch as they are especially interested in and pay more personal 
 attention to their marketing. 
 
 REASONS FOR BUYING FROM HUCKSTERS 
 
 Out of 63 housewives replying on this matter, 41 claim that they buy 
 from hucksters as a matter of convenience, 12 because they believe that they 
 get better quality, and 10 because they believe that they get lower prices. 
 Many women like to buy from hucksters because they have an opportunity 
 to look over the goods and select just what they want, without having to go 
 to market to do this. Seventy-four women expressed a definite opinion as 
 to whether hucksters' prices are lower than the prices in corner groceries, 
 and 44 per cent of these replied that they believe hucksters' prices are lower, 
 37 per cent believe that they are practically the same, and 19 per cent, that 
 hucksters' prices are higher. The majority of those that believe that huck- 
 sters' prices are higher live in the Whitney Avenue section, and this 
 undoubtedly indicates that hucksters charge higher prices in that section 
 than in other parts of the city. 
 
 Opinions were also obtained as to the quality of hucksters' goods as com- 
 pared with store goods, and 51 per cent replied that hucksters' goods are 
 of better quality, 34 per cent that there is no choice, and 10 per cent that 
 they are poorer. Inasmuch as hucksters bring their goods direct from the 
 Commerce Street Market each morning during the summer, it is probably 
 true that the local fruits and vegetables handled by hucksters are a little 
 fresher and a little better quality than those handled by the stores. 
 
 The majority of women who buy from hucksters deal with the same 
 huckster from day to day and some of them have dealt with the same 
 huckster for a number of years, in some cases as long as 10 or 15 years. 
 
 SERVICES GIVEN BY RETAIL STORES 
 
 Fifty-six per cent of the housewives replying, report that they have charge 
 accounts with the stores where they deal, and the other 44 per cent that 
 they pay cash. These proportions vary in different parts of the town : 65 
 per cent in the Whitney Avenue section have charge accounts; 55 per cent 
 in the miscellaneous group ; and 40 per cent in the Italian district. These 
 figures seem to bear out the usual belief that stores catering to the wealthy 
 classes of customers have high credit expenses, inasmuch as the cost of 
 collections is high, a large amount of capital is tied up in accounts, and 
 wealthy people often are not so prompt in paying their bills as the middle 
 classes. 
 
 Retailers solicit orders at the house from only 13 per cent of the ladies 
 replying. In the Whitney Avenue section, house to house solicitation by 
 
47 
 
 retailers has practically ceased, whereas in other sections of the city it is 
 still done to a considerable extent. The telephone has largely taken the 
 place of house to house solicitation. Forty per cent reply that they use the 
 telephone for giving orders more or less regularly; 19 per cent say that 
 they use the telephone a little ; and 41 per cent do not use it at all. Twenty- 
 two housewives out of 123 actually admit that they telephone for goods 
 in the afternoon, asking to have them delivered before dinner. The testi- 
 mony of the retailers themselves, as reported in the chapter on New Haven 
 Retail Stores, would indicate that such unreasonable requests are more 
 common than the housewives admit. 
 
 Fifty-nine per cent of the housewives reporting have goods delivered, and 
 the other 41 per cent go to market and bring their goods home. Eight per 
 cent say that they do not go to market at all ; 24 per cent that they go only 
 once a week ; 31 per cent that they average about twice a week ; 29 per cent, 
 3 times a week; and the other 8 per cent claim that they go every day. 
 
 OTHER MEANS OF BUYING 
 
 Fourteen housewives out of 107 reported that they have bought some 
 foodstuffs by parcel post, but the amount purchased is apparently insignifi- 
 cant. Some of the commodities that have been bought in this way are 
 poultry, butter, maple sugar, eggs, fruit, bacon, and cheese. Twenty-six also 
 report that they have bought some goods cooperatively with their neighbors. 
 
 Among those who have cooperated with their neighbors in buying large 
 quantities, there are three or four who have bought from mail-order houses, 
 such as Sears Roebuck and Montgomery, Ward and Company. Generally 
 such articles as cocoa, chocolate, canned goods, extracts, spices, and sugar 
 have been bought in this way, and the opinion is that prices obtained from 
 these houses are lower than New Haven prices. A few have grouped 
 together, generally not more than two or three families in a group, to 
 buy from wholesale grocers and in some cases from large retailers. One 
 instance was cited where three families bought $60 worth of goods from a 
 large New Haven retailer, and it was estimated that a saving of about $12 
 was made on this order. In another instance, canned goods, cereals, nuts, 
 raisins, and soap have been bought for two years cooperatively by a number 
 of families at wholesale prices, but the name of the dealer from whom the 
 goods are purchased is confidential. Other articles which have been bought 
 cooperatively are eggs, flour, pineapples, grape fruit, oranges, apples, peaches, 
 potatoes, and in one case meats. It must be remembered that in purchasing 
 goods cooperatively in this manner, payment must be in cash, thus requiring 
 a considerable outlay at one time, proper storage facilities must be available, 
 and when goods are bought from points outside of New Haven, freight and 
 express charges have to be taken into consideration. In one case where 
 three New Haven families bought a large order of goods from a local dealer, 
 this dealer delivered all the goods at one house, and the husband of one of 
 the cooperating ladies was not enthusiastic about the arrangement, because 
 he had to go to his neighbor's house with a wheelbarrow to carry home his 
 goods. 
 
- 4 8- 
 
 The members of the Housewives' League were asked to what extent they 
 would go to a farmers' retail public market if one were established. Twenty 
 per cent say that they would go every day; 30 per cent, 3 times a week; 
 36 per cent, twice a week; n per cent, once a week; and 3 per cent, that 
 they would not go .at all. Ninety-two per cent report that they would be 
 willing to pay cash and carry their goods home. The experience of other 
 cities has shown that women in general are not so willing to perform these 
 services as New Haven housewives think that they would be. It might be 
 mentioned that 21 per cent of those replying to these questions own 
 automobiles. 
 
 CHAPTER IX 
 
 COMPARISON OF PRICES IN NEW HAVEN WITH PRICES IN 
 NEW YORK, BRIDGEPORT, HARTFORD, AND SPRINGFIELD 
 
 This price comparison was made on Friday, March 2, 1917. Four inves- 
 tigators visited a number of stores in New Haven during the forenoon, and 
 then went to New York, Bridgeport, Hartford, and Springfield respectively 
 for the afternoon. Prices were obtained from twelve stores in New York, 
 nine in Bridgeport, five in Hartford, six in Springfield, and twenty-eight in 
 New Haven. 
 
 Twenty-three separate quotations were obtained, including four for beef 
 (sirloin, round, rib, and chuck), two for lamb (leg and rib), two for pork 
 (loin and chops), two for ham (whole and sliced), two for bacon (whole 
 and sliced), two for chickens (roasting and stewing), two for eggs ("strictly 
 fresh" and "fresh western"), two for butter (print and tub), and one each 
 for potatoes, cabbage, onions, rice, and carrots. 
 
 These figures should be used with the greatest caution, because it was 
 impossible to get quotations for exactly the same grade or quality in each 
 case. They are sufficiently accurate, however, to indicate the general price 
 levels in the cities studied, and they at least indicate the prices that con- 
 sumers are actually paying for foodstuffs, irrespective of whether the quali- 
 ties are exactly the same in all these five cities. The figures have been 
 thrown into comparable form by calling the New Haven price of each 
 commodity 100, and computing the other prices into the form of ratios, 
 based on the New Haven prices. No attempt has been made to weight the 
 commodities according to their relative importance in computing the 
 averages. 
 
 Calling the average price for New Haven 100, the approximate averages 
 in the other four cities are as follows : 
 
 New Haven 100 
 
 New York 99 
 
 Bridgeport 98 
 
 Hartford 105 
 
 Springfield no 
 
49 
 
 These figures indicate that the general price level is slightly higher in 
 New Haven than in New York and Bridgeport, but substantially lower than 
 in Hartford and Springfield. Springfield prices appear to be about 10 per 
 cent higher than New Haven prices. The investigator who went to Spring- 
 field reported that the stores there were neater in appearance than those in 
 New Haven, and apparently better managed. The higher prices there are 
 possibly due partly to a slightly higher grade of commodities sold in that 
 city. Likewise, there is a possibility that Bridgeport prices are lower 
 because of a slightly poorer grade of commodities in that city. 
 
 New York prices are substantially lower than New Haven prices with 
 respect to most of the cuts of beef, and also with respect to eggs. New 
 York butter prices are slightly higher than New Haven butter prices, but 
 New York butter is much superior to New Haven butter. New York is 
 higher than New Haven on potatoes and carrots. Springfield's high prices 
 are due mainly to the higher prices of meat in that city, which average about 
 16 per cent higher than in New Haven. 
 
 One of the striking features of this study of prices was the great varia- 
 tion in different stores in the same town. In New Haven, for example, the 
 price of sirloin steak ranges all the way from 30 cents to 40 cents in different 
 stores ; strictly fresh eggs from 42 cents to 60 cents a dozen ; potatoes 
 from 75 cents to 90 cents a peck ; and rice from 7 cents to 10 cents a pound, 
 although the great majority of New Haven stores were asking 10 cents. 
 These prices vary for sections of the city, and by character of store. For 
 example, calling the average New Haven price for all commodities in all 
 stores 100, the average prices in the lower State Street stores was 98, in 
 Fair Haven 96.7, in City Point 98.8, in the Dixwell Avenue section 100.8, 
 and in West Chapel Street section 105. 
 
 Prices vary in different stores according to the amount of service that the 
 stores render. Those which give credit and make deliveries necessarily 
 have to charge a little more than those which do only a cash business and 
 make no deliveries. The difference in price is not so great, however, as one 
 might imagine, as it averages only two or three per cent less than the 
 general average for all stores. 
 
 Average Prices as Obtained on March 2, 1917, in New Haven, New York, 
 Bridgeport, Hartford, and Springfield 
 
 New New Bridge- Hart- Spring- 
 
 Unit Haven York port ford held 
 
 Sirloin steak Ibs. 35.3 29.4 37.9 36.2 43.0 
 
 Round steak 32.2 29.3 31.2 34.0 38.5 
 
 Rib roast (untrimmed) " 26.7 28.3 25.3 28.2 31.0 
 
 Chuck " 22.4 19.3 20.9 22.4 25.0 
 
 Leg of lamb " 28.3 27.7 25.5 28.0 20.7 
 
 Lamb chops, rib 33.7 34.0 31.9 38.0 45.0 
 
 Pork loin 25.4 26.6 23.3 27.4 27.0 
 
 Pork chops " 26.9 28.8 26.5 29.2 31.1 
 
 Ham, whole " 26.4 25.8 29.0 28.0 28.6 
 
 Ham, sliced " 36.5 37-8 38.4 43-5 
 
50 
 
 New New Bridge- Hart- Spring- 
 Unit Haven York port ford field 
 
 Bacon, whole Ibs. 30.9 30.1 34.2 35.6 
 
 Bacon, sliced " 33-0 33-6 39-0 
 
 Roasting chickens " 33.7 34- 1 33-5 38-7 39-8 
 
 Stewing chickens " 29.1 27.7 29.5 30.8 31.3 
 
 Eggs, strictly fresh doz. 52.7 45.3 49.6 57.0 53.6 
 
 Eggs, Fresh western ... " 44.1 39.2 44.6 48.8 43.6 
 
 Potatoes peck 82.6 100.4 87.9 76.0 86.6 
 
 Cabbage Ibs. 11.4 10.8 10.9 n.o u.o 
 
 Onions " 12.8 12.0 12.6 14.0 13.9 
 
 Rice " 9-3 9-2 g.i 10.0 9.8 
 
 Carrots " 5.5 6.6 5.4 6.3 6.6 
 
 Butter, print " 47-9 48.1 45-5 50-4 48-5 
 
 Butter, tub " 44.0 45.0 44.0 45.0 43.6 
 
 CHAPTER X 
 
 CONCLUSIONS AND RECOMMENDATIONS 
 
 Inasmuch as it is generally agreed that New Haven should have a public 
 market, and since there is a difference of opinion as to just what form such 
 a market should take, it is important to understand that there are four 
 possible kinds of public markets, as follows : 
 
 1. Retail farmers' market, where city provides space for farmers to sell 
 
 direct to consumers. 
 
 2. Retail dealers' market, where city provides stores, or stalls, for 
 
 retail dealers. 
 
 3. Wholesale dealers' market, where city provides stores for wholesale 
 
 dealers. 
 
 4. Wholesale farmers' market, where city provides spaces for farmers 
 
 to sell at wholesale to store keepers, hucksters, and wholesalers. 
 
 These will be taken up briefly in order. 
 
 i. Retail farmers' markets have not met with success in American cities, 
 except in a few isolated cases, and there appears to be little reason to hope 
 that such a market would be successful in New Haven. The reasons why 
 such a market would not be successful are obvious. Farmers can not afford 
 to stay in market during the day to sell to consumers ; housewives cannot 
 afford the time from their household and social duties to go to market; 
 most housewives demand service, such as credit, frequent delivery, ordering 
 by telephone, buying in small quantities, etc., which can not be very well 
 given by farmers; only part of the housewives' supplies can be bought in 
 such a market. In view of these reasons, and the failures which have 
 attended the establishment of such markets in other cities, it seems altogether 
 unwise to consider such a proposal for New Haven, especially as there are 
 much more pressing needs which demand undivided attention. 
 
5*- 
 
 Retail Dealers' Markets. This is a common form of public market, 
 d is found in many large cities of the United States. The need for such 
 a market depends on the size of the city and on the willingness of house- 
 wives to go to market. The principal advantages of such an institution 
 
 are, the greater convenience for housewives through concentration of 
 
 different kinds of stores in a restricted area; greater specialization by com- 
 modities among the dealers, with better quality and variety of produce ; con- 
 centrated competition among dealers, which results in better merchandising, 
 better products, and sometimes lower prices; and better control of sanitary 
 conditions. 
 
 In spite of the possible benefits to be derived from such a market, the 
 committee feels that it would be unwise to expend energy in trying to 
 establish one, at least at present. The down-town stores are already highly 
 localized, especially on State Street, and to a certain extent on Congress 
 Avenue, so that the matter of convenience is a secondary consideration. 
 Whether prices in a dealers' market would be any lower, is questionable. 
 Sanitary conditions are not bad, though they might be improved. The 
 establishment of such a market, if successful, would probably result in an 
 increase in the number of retail stores, inasmuch as the State Street mer- 
 chants would undoubtedly continue in their present locations, and there 
 appear to be a sufficient number of retail stores already. A final reason for 
 the belief that it would be unwise to push this matter at present is the fact 
 that there is a much greater need in New Haven's marketing system, which 
 requires a vigorous and immediate concentration of energy. 
 
 3. Wholesale Dealers' Market. The wholesale produce trade of New 
 Haven is comprised of twelve or fourteen dealers in miscellaneous fruits 
 and vegetables, three butter and egg houses, and the meat jobbers and branch 
 houses of western packers. The trade is not extensive enough to require 
 special effort to provide better facilities for these merchants, many of whom 
 are well equipped and located at present, especially the butter and egg 
 dealers, and the meat supply houses. Definite provision should be made for 
 the wholesale fruit and vegetable dealers, however, in connection with any 
 wholesale market that may be established for farmers. These wholesale 
 dealers should either be in or near the farmers' market, and many of them 
 have expressed a willingness to rent or buy stores whenever the location of 
 a farmers' market is decided upon. 
 
 4. Wholesale Farmers' Market. The paramount need is a properly organ- 
 ized, equipped, and regulated market place for farmers, where they may 
 sell at wholesale early in the morning to hucksters, retail store dealers, and 
 wholesale dealers. At present the farmers use Commerce Street as their 
 market place. There are no spaces assigned in this market, and farmers 
 often drive in before midnight to obtain suitable locations in a market which 
 does not open until five o'clock. The market is entirely unorganized ; market 
 prices are indefinite; sharp practices are common; sanitary conditions are 
 bad. Many growers do not use the market because conditions are so unsatis- 
 factory; likewise, many retail dealers who would otherwise use the market 
 stay away from it. New Haven is far behind other cities with respect to 
 
52 
 
 a properly organized and conducted farmers' market. All who know the 
 situation in New Haven agree that such a market place is the crying need. 
 
 As was pointed out in an earlier chapter there are three possible solutions 
 for providing a proper market place for farmers, as follows: 
 
 1. City ownership and operation. 
 
 2. Private ownership and operation. 
 
 3. Cooperative ownership and operation by the farmers themselves. 
 
 A fourth possible solution is for the city to own the market place, and to 
 lease it to farmers to be operated cooperatively by them. 
 
 These possible solutions will not be enlarged on, except to say that the 
 proposition is not likely to be sufficiently alluring to attract private capital. 
 Cooperative ownership and operation by farmers has it advantages, but the 
 committee know of only two such markets in existence, at Providence 
 and Louisville. The Providence market appears to be highly successful. 
 This possibility should be considered, and the matter should be taken up 
 with local growers. If they should not be sufficiently interested, it devolves 
 upon the city itself to furnish such a market place. 
 
 RECOMMENDATIONS 
 
 I. All energy should be concentrated on the establishment of a well 
 organized and operated farmers' wholesale market. Such a market is 
 absolutely essential, and every effort should be made to secure definite action. 
 
 II. Inasmuch as it is too late at the time this report is made to determine 
 a permanent policy which shall be effective during the summer of 1917, the 
 city should find a temporary solution for the present season. With this end 
 in view, possible locations have been canvassed, and it has been decided that 
 it would be best to use the present location in Commerce Street for the 
 summer of 1917. This location should be laid off in spaces by the city, and 
 assignments made to individual farmers at a small rental per day or per 
 season. A market master should be appointed, regulations prescribed, and 
 the necessary city ordinances drawn up and passed without delay. (This 
 matter is being attended to as this report is issued, through the cooperation 
 of the Mayor of the City and the Corporation Counsel.) 
 
 III. Steps should be taken immediately to determine a permanent policy, 
 which could be put in operation before the season of 1918 opens. Studies 
 should be made of possible locations, probable costs, and necessary equip- 
 ment. It would also be advisable to make further intensive study of the 
 methods of a few other cities before a permanent policy is adopted. 
 
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