Chapter 2

HAMBURG is peculiarly situated as to its market conditions. The market halls of Hamburg and Altona adjoin, but while the former is under the control of the Hamburg senate, the latter is subject to the laws of the Prussian government and administered by the Altona city authorities. Each has a large hall, with a considerable portion of the space used for auctions. The senate of Hamburg appoints two auctioneers and Altona one; but, while the latter is a salaried official, the former are two Hamburg auctioneers approved by the government for the special market business, on undertaking not to trade on their own account. The trade of the chief market is in fish. With the Altona market, the Hamburg market and the Geestemunde market, the sales in this section of Germany are the most important in the Fatherland for fresh sea fish, and salted herrings. About a fourth comes in fishing cutters or steam trawlers direct alongside the market halls, while the remaining three-fourths come from Denmark by rail or by ships from England, Scotland and Norway. Often there are three or four special fish trains from the north in a day, while twenty-five to thirty steamers bring the regular supply of imported fish.

The auctioneers derive their revenue from a four per cent charge on sales of the cargoes of German fishing vessels and five per cent on imported supplies. Out of this they pay half of one per cent to the government on the German and one per cent on the foreign sales. No fees are charged to importers and dealers using the auction section of the fish market. Out of the percentage paid to the government by the auctioneers is provided light and water, the cleansing of the halls and the carting away of refuse for destruction. Strict regulations govern the inspection of the fish and to ensure the destruction of those that have deteriorated they are sprinkled with petroleum immediately on detection.

Steam fishing boats using the market quays pay 48 cents for 24 hours' use, seagoing sailing cutters 24 cents, river sailing cutters 6 cents, and small boats 3 cents, in which charges the use of electric and other hoists is included.

From these markets almost the whole of Germany receives its sea fish supplies, for the distribution of which most of the leading dealers have branch houses in the principal cities.

There are also two markets--one in Hamburg and one in Altona--for the sale of farm produce, mostly transported thither by boats. Besides these, there is a big auction for imported fruit, conducted by private firms. All these Hamburg markets are prosperous, and their utility to the community is universally acknowledged.

FRANKFORT'S market system dates back to 1879, when the first hall was erected at a cost of $375,000. It has 548 stands on the main floor renting at $1.08 per two square meters a month, payable in advance, while there is space for 347 more in the galleries at 84 cents per two square meters a month. Nearby is a second hall, built in 1883 at a cost of $143,750. A third hall followed in 1899 at a cost of $38,500, while in 1911 further extensions were determined on and there are fresh projects now under consideration. Besides these covered markets the city has a paved and fenced square that has been used since 1907 as an open market, where stands are rented at 5 cents a day.

Sixty per cent of the stands in the market halls are rented by the month and forty per cent by the day. Tuesdays and Fridays are reserved for wholesale trading. A market commission rules the markets and the police enforce their regulations, the violation of which is liable to cost the offender $7.20 in fines or imprisonment up to eight days.

MUNICH, with a population of half a million, has the most modern of all the European municipal markets. It was opened in February, 1912, and embodies the improvements suggested by experience of market administration in other cities.

The total cost was $797,000, of which $510,000 was spent on four communicating iron market halls, with their cellar accommodation underneath, $190,000 on a receiving and toll department, $52,000 on a group of adjacent buildings, including a post-office, restaurant and beer-garden, and $45,000 on roadways. The whole establishment covers 46,500 square meters, of which the market halls occupy 37,100 square meters.

At the northern extremity of the buildings is the toll and receiving department, where produce is delivered at special sidings connected with the south railway station of the city. Next comes a succession of lofty halls, with covered connections, terminating in a small retail section and the administration offices. At the northern end of the great market is a section where express delivery traffic is dealt with, while the western side is occupied with sidings for loading produce sold to buyers from other German centers.

Below the toll house and the market generally are vast cold storage cellars and refrigerating plants for the preservation of surplus supplies till the demand in the market above calls for their delivery. Each market hall is devoted to a separate section of produce, and the cellars below are correspondingly distinct, so that there is an absence of confusion, orderliness is ensured, and rapid deliveries facilitated. Across this underground space from north to south run three roadways, while down the center, from east to west, a further broad aisle is provided, with an equipment of great hydraulic lifts. There are nine of these lifts altogether for heavy consignments, while each stand-owner in the market has, in addition, a small lift connecting his stand and storage cellar.

Both market halls and underground cellars are so constructed as to facilitate ventilation and complete cleanliness. The floors are of concrete and every stand is fitted with running water, with which all the fittings have to be scoured every day. There is both roof and side light, and ample ventilation, while the entrances are wind-screened, to prevent dust. Electric light is used underground, and the cellars are inspected as strictly as the upper halls, to ensure due attention to hygiene. In the center of each market hall there are offices and writing rooms for those using the markets. In the restaurant 150 can be served with meals at one time, or they can be accommodated with seats in the beer-garden.

Associated with this market establishment is a great cattle market and range of slaughterhouses on a neighboring site. The live cattle market dates back for centuries, but the present accommodation was only completed in May, 1904, at a total cost of $1,600,000.

Last year 809,508 animals were sold, including 432,159 swine and 234,457 calves. In the slaughterhouses 713,228 of these were killed, besides 2,619 horses and 97 dogs. About twenty-five per cent of the animals reach the market by road from neighboring farms, while seventy-five per cent come by rail. For the inspection of all flesh foods there are very strict rules, enforced by the chief veterinary surgeon, Dr. Mueller, and a staff of specially trained assistants. As in Berlin, extensive bathrooms are provided for the slaughterhouse staff, and baths are available at nominal charges. Though the new market halls have not been established long enough to provide a definite financial statement, the live-cattle market and slaughterhouses do afford an indication of the success of municipal administration in Munich. Last year the income was $416,500 and the expenditure $410,100, thus showing a profit of $6,400. The new produce halls are certainly the best equipped in the world, and the only element of doubt as to their success arises from the fact that three old-fashioned open markets are nearer the center of the city and for that reason are even now preferred by many retailers. This fact emphasises the importance of selecting a central position in establishing a municipal terminal market.

France

PARIS has one of the most skilfully organized municipal market systems in Europe. The chief food distribution center for the 3,000,000 Parisians is established at the Halles Centrales, a series of ten pavilions covering twenty-two acres of ground and intervening streets. Altogether this great terminal market has cost the city more than $10,000,000.

Most of the pavilions are entirely for the wholesale trade, but some are used as retail markets to a limited extent. Retail traders are being decreased gradually, so that whereas in 1904 there were 1,164 retail stands there are now only 856.

The total receipts of the Halles Centrales and thirty local markets amount to $2,100,000, of which _about $1,000,000 is profit_. There is a general advance in the wholesale trade, but the local covered markets or marches de quartier, are not progressing in the same way, so the city does not quite maintain a steady level of market profit.

The reasons given for the falling off of the retail trade are various, but the principal causes appear to be (1) the growth of big stores, with local branches, that deliver the goods at the door, thus relieving the purchaser of the necessity of taking home market supplies; (2) the number of perambulating produce salesmen, who sell from carts in the street at low rates, having neither store rent nor market tolls to pay, and (3) the growth of co-operative societies.

A complicated and severe code of regulations governs the markets. Commission salesmen at the Halles Centrales must be French citizens of unblemished record and must give a bond of not less than $1,000 in proof of solvency. Producers may have their supplies sold either at auction or by private treaty, as they prefer, and as none of the agents are allowed to do business for themselves the distant growers have confidence in the market methods.

In the retail markets each dealer in fresh meat pays just under $6.00 a week in all, while dealers in salted meats, fish, game and vegetables pay a much lower rate. All, however, in the covered markets pay three taxes--one for the right to occupy a stand, one for the cleaning and arranging of the markets, and one for the maintenance of guardians and officials. In the open markets the stands are rented by the day, week, or year, the rate for the day ranging from ten to thirty cents, according to space. Several of these local markets have charters dating back to pre-revolution days, that cannot now be annulled.

It would be difficult to devise a more thorough system of inspection. An average year's seizures include half a million pounds of meat, 17,000 pounds of fruit and vegetables and half a million pounds of salt water fish.

Thus the Paris market arrangements provide an admirable central clearing house, where supplies are inspected and sold under such conditions as to prevent the artificial raising of prices. It also acts as a feeder to the marches de quartier, to the great convenience of local consumers. Moreover the producer is safeguarded, for on his supplies a small fixed percentage only can be charged by the salesman, and the current market prices are made public by agents especially detailed for that purpose.

HAVRE, the well-known French seaport, with a population of 130,000, has a profit of over six per cent on the Halles Centrales and ten per cent on the fish market. All told there is _a profit of $27,000_ on the twelve municipal markets.

The Halles Centrales occupy an entire square in the center of the city and cost $75,000, exclusive of the site. Gardeners and farmers are not permitted to sell their produce on the way to the market and are only allowed to deliver to storekeepers after the wholesale markets are closed. Here, as elsewhere where the markets are successful, every precaution is taken to avoid the prosperity of the market being dissipated by sales in the surrounding neighborhood. The annual rents for butchers are very moderate, ranging from $57.90 to $154.40, vegetable dealers $42.85 to $92.64; dairy produce dealers $52.11 to $85.11, fishmongers $23.16 to $86.85. In the wholesale markets there is an annual trade turnover worth well above $1,000,000, of which fish represents $280,000. So far from the fishermen finding the fish market detrimental to their interests, they welcome it and cheerfully observe the rule forbidding sales on the quays or transit sheds except under special permits.

LYONS, with a population of half a million, may be taken as the best example of a flourishing French provincial city at a considerable distance from the sea. The principal market, La Halle, is known all over France for its public auctions. Accommodation is provided for 276 stalls, rented at 14 cents a day per square meter for fruit, vegetables and cheese, while other stalls for meat and fish are rented at 33 cents per square meter.

At the morning auctions, held at the rear of the hall, are sold immense quantities of fish, oysters, lobsters, game, poultry, butter, cheese, eggs, fruit and vegetables. There is a rule that all supplies must come from outside Lyons, so that local store men cannot there dispose of surplus stocks, but dealers in other French cities often thus relieve themselves when overloaded. These auctions not only enable local dealers to distribute supplies at cheap rates to the small stores all over the city, but wide awake housewives can frequently tell just what the stores gave wholesale for the produce offered to them retail later in the day, so a check can be kept on overcharges.

The auctioneers are given a monopoly of selling for ten years, on binding themselves to pay to the city a sum equal to two per cent on the total annual sales. The minimum is fixed at $1,930 for one stand or $5,650 for four stands, to be paid to the municipal treasury. Two per cent is added to the purchase price of every payment made by buyers at auction, and if this does not amount to $1,930 per stand for the year, the auctioneer has to make up the difference. The poorer classes benefit largely by these sales, banding together to buy wholesale and then dividing their purchases.

There are also seventeen markets for general retail trade in Lyons. The Terminal Market of La Halle cost the city $886,980. The company which built it was given a concession for fifty years, on a division of profits arrangement, but within sixteen months the utility of the market as an advantageous enterprise for the city was so clearly demonstrated that the municipality bought the company out.

Austria-Hungary

VIENNA, with 1,700,000 people to supply, has a magnificently managed system of forty-five markets, seven of which are located in large, well-ventilated halls, all kept spotlessly clean.

Market commissioners appointed by the municipality conduct the business of the markets according to strict regulations, enforcing a rigid inspection of all products as well as weights and measures. Violations of these rules are punishable by fines of about $2.00, imprisonment for 24 hours or exclusion from the markets. Such penalties are enforced when buyers are defrauded, dealers oppose the market authority, or exceed the charges that are posted in the market.

Not merely land and water produce, but general farm and household requisites, are sold at these markets. Outside buying is strictly controlled, owners of boats on the Danube or wagons on the public streets paying toll to the municipality on any sales.

_Over $60,000 profit_ is the average annual yield of the markets to the city treasury, and it is generally agreed that the market system tends to keep down the price of foodstuffs to normal levels.

BUDA-PESTH has 715,000 people and a very complete market system, under which, though only nominal rentals are charged, there is _a profit of over $100,000_.

There is one large wholesale terminal market, while six local markets cater for the retail requirements of all quarters of the city. All salesmen are carefully selected; criminals and diseased persons being rigidly excluded. Though a wide variety of articles are sold in the smaller markets besides farm produce, storekeepers are not allowed to rent stalls, so the market men and farmers alone have the use of the buildings. The regulations under which they trade were drawn up by a market commission and confirmed by ministerial decrees. These regulations are regarded in Europe as a model of comprehensiveness and their observance ensures close attention to hygiene. Among the rules is one insisting on the placing of all waste paper in the public refuse receptacles, while another compels the use of new, clean paper only in wrapping up food products.

Stalls are rented from four to ten cents a day, according to the accommodation. Supplies come by boat, rail and wagon, and when there is pressure on the interior market space sales are allowed from the boats and wagons at a toll of ten cents a day. Otherwise only merchandise is allowed to be sold outside the market halls. Not only must no fish, game, meat or poultry be sold without first being passed by the veterinary inspectors, but none of these articles of diet must be brought to market packed in straw, cloth or paper. Unripe fruit must not be sold to children.

Every day a bulletin issued by the market commission sets out the wholesale prices, while a weekly list gives the retail prices, but in the latter case the note is added that the market commission will not be responsible for any controversy that may arise. All the stocks held by the market traders are insured by the municipality, though not to their full value.

Not only have these markets proved beneficial to the consumers generally, but the market men are unanimous as to their advantage, for they afford a ready and inexpensive means of doing a large business.

Holland

AMSTERDAM, with a population of 510,000, has all the local markets under the control of the municipality. They are divided into five districts, each managed by a director or market master, responsible to the city council.

Two of the markets are covered, but the remainder are open and are situated by the side of the canals, along which the produce is brought in boats from the farms around. On the administration of the markets in an average year there is _a profit of $36,000_, but there is a law against making a profit on municipal enterprises, so the surplus is spent on local improvements.

ROTTERDAM, another great Dutch seaport, operates its markets under similar conditions and makes _a profit of $34,000_, of which $23,000 comes from the cattle and meat markets.

Belgium

BRUSSELS, possessing a population of half a million, reaps considerable advantage from its picturesque municipal markets, four of which are covered, while several are in the open air.

The renting of space to standholders at the central market is according to the highest bidder, provided the price is not below $11.58 per month for meat, $9.65 for poultry and game, $5.79 for fruit, vegetables, butter and cheese.

Both producers and dealers sell at these markets, all their supplies being subjected to drastic inspection regulations. All meats are tested by the municipal veterinary surgeon and his staff, while a communal chemist regulates the milk, butter and general dairy produce. The cleansing of the markets is done by the department of public cleanliness. Some of the public markets are managed by a contractor, who receives $250.90 a year for setting up the stalls and keeping them in good order. He deposits a security on undertaking his contract and in default of a satisfactory performance of his work the commune does it and charges him with it.

Comments

It has been testified that New York's annual food supply costs, at the railroad and steamer terminals, $350,000,000. But the consumers pay $500,000,000 for it. The balance of $150,000,000 does not necessarily indicate that any particular section of middle-men have been exacting excessive profits. It merely demonstrates that too many people handle the produce between the farm and the fireside. The provision of an adequate Terminal Market system for New York would apply the remedy.

New York stands alone, for a city of its importance, in having to face an annual deficit on its markets. The results elsewhere prove that the deficit could be turned into a profit by the creation of a Terminal Market system, equipped and administered on twentieth century lines.

America is exporting less foodstuffs than formerly. The annual value has fallen $126,000,000 in eleven years. The growth of the manufacturing population and the relative decrease of the agricultural population, together with the gradual impoverishment of much of our farm land, will soon make conditions worse unless we organize our food distribution.

The first step for New York is the establishment of a Terminal Market system. It is estimated that New York's population will continue to grow at the rate of fully 100,000 a year, so this problem admits of no further procrastination.

In natural resources America is the richest country in the world. Other nations have to import vast quantities of produce because of the restricted area of their territory, the comparative unfruitfulness of their soil, or their adverse climatic conditions. We have a wide land of boundless fertility, never wholly in the grip of winter's cold. Yet we no more escape the high cost of living than these less favored peoples overseas. They have partially compensated for their disadvantages by organizing their markets, while we have neglected that important branch of civic enterprise.

Everywhere in Europe, the provision of adequate terminal markets under municipal control is pointed to as a powerful aid in keeping food prices down. There is a lesson in that for New York and other American cities.

There is a lesson also for growers in up-state districts, for experience shows that with adequate markets, supplying produce at lower rates, there comes a demand for more farm and garden stuff and a greater variety of it. This directly aids in developing rural prosperity and enhances the value of agricultural land.

I believe a marked improvement will be shown if a bureau is maintained to inform farmers as to the demands of the market and the best method of packing, preparing and despatching their produce so as to reach the market in prime condition. Not only will that aid the market, but it will have a powerful influence in arresting "the drift from the land" to the cities.

The municipality should select central positions for its markets, with rail and river access. It should have effective control not only over the markets but the adjacent streets, wharves, and railroad sidings, so as to obviate evasion of the market tolls. The rentals should not be high, and no sub-letting should be allowed under any circumstances.

Under such conditions, with wise administration, New York's Terminal Market system could be made a model that would be studied by other cities in an age when economic questions absorb the attention of all our public-spirited men and women.

In the interests of the people's health and happiness, no less than in consideration of the municipal finances, all should rally to the support of those who are seeking to secure the consummation of this urgent reform at the earliest possible moment consistent with a full consideration of all its aspects.

The Willett Press, New York

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Transcriber's Notes

Moved illustrations to paragraph breaks.

Removed period from "per cent" for consistency.