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Hobson, John A., 1858-1940

"Problems of Poverty"

At any stage in the production of these goods,
previous to their final distribution, the middleman may come in and take
his profit for no visible work done. He may be a speculator, buying up
grain or timber, and holding or manipulating it in the large markets; or
he may be a wholesale merchant, who, buying directly from the fisherman,
and selling to the retail fishmonger, is supposed to be responsible for
the high price of fish; he may be the retailer who in East London is
supposed to cause the high price of vegetables.
With these species of middlemen we are not now concerned, except to say
that their work, which is that of distribution, i.e. the more convenient
disposal of forms of material wealth, may be equally important with the
work of the farmer, the fisherman, or the market-gardener, though the
latter produce changes in the shape and appearance of the goods, while
the former do not. The middleman who stands between the employing firm
and the worker is of three forms. He may undertake a piece of work for a
wholesale house, and taking the material home, execute it with the aid
of his family or outside assistants. This is the chamber-master proper,
or "sweater" in the tailoring trade. Or he may act as distributor,
receive the material, and undertake to find workers who will execute it
at their own homes, he undertaking the responsibility of collection.
Where the workers are scattered over a large city area, or over a number
of villages, this work of distribution, and its responsibility, may be
considerable.


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