Additional middlemen. If the farmers trading at a country store bring to it more eggs than the people in the town will buy, the storekeeper must either sell them elsewhere or refuse to take them. If possible, he will find a market for the surplus, usually by shipping them to the nearest large city. But he does not send them direct to consumers, for he could not deal with them any better than the farmers could with the people in his town. He may send them to a storekeeper in the city, but he is more likely to send them to some one who makes a business of receiving eggs from country collectors and selling them at wholesale wherever there is a demand for them. If the receipts in a city exceed the local requirements, the surplus will be sent to one of the great cities which are the principal receiving centers for produce of all kinds. The large receivers in the great cities distribute the eggs to retailers in the cities and also to jobbers and retailers in smaller cities where local supplies are inadequate.
Fig. 225. Unloading coops of poultry at a receiving warehouse. (Photograph from the Bureau of Chemistry, United States Department of Agriculture)
Thus between the producer and the consumer there may be as many as six or seven middlemen who in turn handle the eggs. At first thought it seems that so many middlemen are not necessary. But it is not a question of numbers; it is a question of conditions. The number depends more or less upon whether the middleman at any stage finds it more advantageous to deal with one next to him in the general series or to pass one or more and deal with another farther away. In the United States prices of eggs are finally determined by the demand and supply in the large cities of the East; the prices at other points are usually the prices in these cities, minus the cost of transportation and handling. In periods of scarcity, however, there is a tendency to uniformity of prices in all large cities.
The movements of poultry to market are made in much the same way as the movement of eggs. As a rule the same people handle both.
How the demand for poultry products stimulates production. In the preceding sections it was assumed, for the purpose of showing clearly the relation of the middleman to both the producer and the consumer, that the movement of these articles from the country producer to the city buyer came about as the result of the existence of a surplus in farming districts. As a matter of fact the movement is produced by the demand in localities which do not produce their own supplies. One effect of the increase of population in cities is to cause farmers near the cities to grow more poultry and sometimes to establish special poultry farms. But as grain and labor cost more near the cities, the poultry and eggs produced near them must be sold at high prices. If the city people were dependent upon these local supplies, only the rich could afford them.
As this is true of all perishable food articles, as well as of poultry products, the growth of cities was restricted as long as there was no means of bringing provisions quickly from places where they could be produced at low cost. When steam railroads were built, this restriction on the growth of cities was partly removed. Many cities then began to grow very fast, and the demands of their population for cheap food led city dealers in provisions to look for supplies in the towns and farms along the railroads. Many such dealers had before collected provisions by wagon as far from the city as was practicable. These men could now greatly extend their routes, because, having collected a wagon-load, they could take it to the most convenient railway station, ship it by rail to the city, and go on collecting, instead of spending a day or more in delivering their load in the city. Very soon after railroads were first built, many farmers began to produce more poultry and eggs and to ship them directly to the best city market that they could find. As the demand for their produce was usually much greater than could be supplied from their own farms, such farmers often began to buy from their neighbors, thus becoming middlemen as well as producers. In many cases such men would after a time find it to their advantage to move their headquarters to the city, and would ultimately build up a very large business.
