This dissertation has been 65-3833 microfilmed exactly as received CHAUHAN, Krishna Kumar Singh, 1934- EFFECT OF THE GENERAL ECONOMIC DEVELOPMENT ON THE EVOLUTION OF AGRICULTURAL MARKETING IN THE UNITED STATES. The Ohio State University, Ph.D., 1964 Economics, agricultural University Microfilms, Inc., Ann Arbor, Michigan EFFECT OF THE GESTURAL ECONOMIC DEVELOPMENT OH THE EVOLUTION OF AGRICULTURAL MARKETING IN THE UNITED STATES DISSERTATION Presented In Partial Fulfillment of the Requirements for the Degree Doctor of Philosophy In the Graduate School o f The Ohio S ta te U n iv e rsity By Krishna Kumar Singh Chauhan, B.Sc., M.Sc. The Ohio State University ig6h Approved hy F . 7 - A dviser Department of Agricultural Economics and Rural Sociology ACKBOW IdEDGMMSS Sincere appreciation is extended to my adviser, Dr. Elmer E. Baumer, Professor of Agricultural Economics and Bural Sociology for his encouragement, guidance and inestimable help dxuring the course of this study. Special thanks are to Dr. D. I. Padherg to whom I am highly in­ debted for his valuable advice and constructive criticism. I owe my thanks to Dr. M. Q-. Smith, Chairman of the Department of Agricultural Economics and Rural Sociology for his helpful advice and assistance in this study. My sincere thanks ore to Dr. R. H. Bohn lug, Assistant Dean and Coordinator OSU/lndia Agricultural Program for enabling me to stay at this University for an additional four months in order to complete my Ph.D. program. I express my gratitude to the United States and Indian Governments for financing my v i s i t to th is country. I am personally indebted beyond any. repayment to my friend Robert Welsh, Instructor in the Department of Agricultural Economics and Sural Sociology, for his all kinds of help throughout my graduate work at this University. Finally, I should thank my wife Patna, who through her letters has been a constant source of encouragement and inspiration throughout my stay in this country. i i VITA January 3 , 193 k Bom - Moradahad (U.P.), India 1 9 5 ^ .......................... B.Sc. Ag., Agra University, Agra, India 1 9 5 6 ...................... M.Sc. Ag., Agra University, Agra, India 1956-1957 • • • Assistant Professor, Agricultural Economics, B. R. College, Agra, In d ia 1958-1962 . Lecturer in Agricultural Economics, Rajasthan College of Agriculture, Udaipur, Rajasthan, India I 962 - 196 I+ . Worked for Ph.D. at She Ohio State University, Columbus, Ohio, as an A.I.D. participant PUBLICATIONS "Agricultural Investments , 11 Agra University Journal of Research (Letters), Vol. II, January, 1957 FIELDS OP STUDY Major Field: Agricultural Marketing Studies in Economic Theory Studies in History of Economic Thought Studies in Statistical Analysis Studies in Foreign Agriculture Development Studies in Market Structure Studies in Agricultural Production Economics i l l CONTENTS PAGE ACKNOWLEDGMENTS .......................................................................................... i i VITA, PUBLICATIONS AND PIELDS OP STUDY ......................................... i l l fAPTVS ............................................................................................................. ix CHAPTER I INTRODUCTION............................................................................. 1 Method o f A pproach........................................................ 6 Importance of the Study ....................... 7 II DEVELOPMENT OP TRANSPORTATION....................................... 8 Development of Transportation Before 1776 •••• 8 Development of Transportation, 1776-1860 .......... 10 Development of Transportation, 1860-1910 .......... 11 Development of Transportation, I 9 IO-I93 O 12 Development of Transportation, 19 30-1990 .......... 12 Development of Transportation Since 195° ........... 13 Road Transportation..................................................... lH Railroad Transportation ............................... 23 Water T ran sp ortation................................................... 31 II I DEVELOPMENT OP STORAGE OP PARM PRODUCTS .................. 36 Storage Before 1 7 7 6 ...................................................... 37 Storage,177 ^”I860 .......................................................... 3® iv CONTENTS (contd.) CHAPTER PAGE III (contd.) S torage, 1860-1910 ............................................................ 40 Storage, I9 IO-I93 O ............................................................. k3 Storage, I93 O-I95 O ............................................................ 4-7 Storage Since 1950............................................................. 51 IV DEVELOPMENT OP STANDAEDIZATION, GRADING, AND INSPECTION OP AGRICULTURAL PRODUCTS ........................... 56 Standardization, Grading and Inspection Before 1776........................................................................... 58 Standardization, Grading and Inspection, 1776-1860 60 Standardization, Grading and Inspection, 1860-1910 ............................................................................... 62 Standardization, Grading and Inspection, 1910-1930 ............................................................................... 67 Standardization, Grading and Inspection, 1930-1950 ..................................................... - ................... 70 Standardization, Grading and Inspection, Since I 95 O ............................................................................. 73 V ' DEVELOPMENT OP POOD—PROCESSING AND PACKAGING . 75 Pood Processing, Before1 7 7 6 ....................................... 76 Pood Processing, I776-I 8 6 0 ................................. 79 Pood Processing, 1860-1910 ........................................... 83 ▼ CONTENTS (contd.) CHAPTER ~ PAGE V (contd.) Pood Processing, 1910-1930 ...................................... 87 Pood Processing, 93I O-I95 O ...................................... 96 Pood Processing, Since 1930............... • ................... 103 71 DEVELOPMENT OP MARKET INFORMATION............................... 108 Market Information, Before 177& • • * *»................ 109 Market Information, 177&-1860 ................................ 109 Market Information, 1860-1910 .......................... I l l Market Information, I9 IO-193 O ................................ 112 Market Information, I93 O-I95 O ................................ 115 Market Information, Since 1950 .............. Il6 711 DEVELOPMENT OP SELLING BY FARMERS ................................ 119 Selling toy Farmers, Before 177& .......................... H9 S ellin g toy Farmers, 1776-1860............................... 120 Selling toy Farmers, 1860-1910 ............................... 121 S ellin g toy Farmers, 1910-1930 ................... 122 Selling toy Farmers, 19 30-195® ........................ 12^ Selling toy Farmers, Since 1950 ............................. 125 ▼i CONTESTS (contd.) CHAPTER PACE VIII DEVELOPMENT OF COOPERATIVE MARKETING- ASSOCIATION 127 Cooperatives, Before 177^ ....................................... 127 Cooperatives, lJjS-1^60 ............................................ 128 Cooperatives, 1860-1910 ............... 129 Cooperatives, I 9 IO-193 O ............................................ 131* Cooperatives, 1930-1950 ............................................ 137 Cooperatives, Since 195® .......................................... I*t0 IX DEVELOPMENT OP WHOLESALERS AND OTHER MIDDLEMEN OP WHOLESALE TRADE.............................................................. 1^3 Middlemen of Wholesale Trade, Before 177& — • 1^4- Middlemen o f Wholesale Trade, 1776-IS 60 . lUU Middlemen of Wholesale Trade, 1860-1910 . IU5 Middlemen o f Wholesale Trade, I 9 IO-193 O . lU8 Middlemen of Wholesale Trade, I 93 O-I95 O . 150 Middlemen of Wholesale Trade, Since 1 9 5 0 . 153 / X DEVELOPMENT OP RETAILING INSTITUTIONS ...................... 158 Retailing Institutions, Before 1776 .................... 159 Retailing Institutions, 1776-I860 ............... l60 Retailing Institutions, 1860-1910 ......................... 163 Retailing Institutions, I9 IO-193 O ............... 166 v ii CONTENTS (contd.) CHAPTEH PACE X (co n td .) Retailing Institutions, 1930-1950 .......................... 170 Retail Institutions, Since 1$50 ................................. 176 XI SUMMARY AND CONCLUSIONS ................................................... 1S2 Summary ............................................................................... 182 C o n c lu sio n ......................................................................... 195 APPENDIX............................ ............ ........................... .............. .................... 199 BIBLIOGRAPHY............................................................................................... 210 v i i i TABLES table page 1 VOLUME OF DOMESTIC INTER-CITY FREIGHT TRAFFIC, BY TYPE OF TRANSPORTATION, lgllO-1960 .......................... 13 2 RURAL ROAD MILEAGE IE THE UNITED STATES, 1800-1960 17 3 MOTOR VEHICLE REGISTRATIONS IE THE UNITED STATES, 1900-1960 ........................................................... ................ 19 k RAILROAD MILEAGE IN THE UNITED STATES, 1830-1960 . 3° 3 REFRIGERATED WAREHOUSES: TOTAL GROSS SPACE, BY TYPE OF PLANT, UNITED STATES, 1921-19^9 .................... U 6 6 HUMBER OF FROZEN FOOD LOCKER PLANTS IN OPERATION, UNITED STATES, I 938 -I 95 O .................................. 50 7 REFRIGERATED WAREHOUSES: TOTAL GROSS SPACE, BY TYPE OF PLANT, UNITED STATES, 195 I-I 96 I '............. 53 8 NUMBER OF FROZEN