The arrangement worked something like this. A wholesaler of flour in western Hanover might have a good customer in the city of Magdeburg. Up to now he had been permitted to ship to that customer as he desired. That was to cease. He could now ship only to that point when he could prove that the flour was not needed nearer to where it was stored. But to prove that was not easy--was impossible, in fact.
Since the German state railroads had in the past provided much of the revenue of the several governments, this was no small step to take. But it was taken, and with most salutary effects. The trundling of freight back and forth ceased, and the food shark was the loser.
Ostensibly, this had been done in order to conserve the railroads. Its actual purpose was to check the trade lords by depriving them of one of their arguments why the price of necessities should be high.
What was accomplished in this instance should interest any community, and for that reason I will illustrate it with an example of "economic waste" found in the United States.
You may have eaten a "Kansas City" steak in San Antonio, Texas, if not at Corpus Christi or Brownsville. (I am an adopted "native" of that region and inordinately proud of it.) If you had investigated the history of that steak I think you would have been somewhat surprised. The steer which produced that steak might have been raised in the valley of the Rio Grande. After that the animal had taken a trip to Oklahoma, where better pasture put more meat on its back. Still later a farmer in Missouri had fattened the steer on the very cream of his soil, and after that it had been taken to Kansas City or Chicago to be butchered and "storaged."
It might then have dawned upon you that a great deal of wasted effort was hidden in the price of that steak, though no more than in the biscuit that was wheat in North Dakota, flour in Minneapolis, biscuit in San Francisco, and a toothsome morsel to follow the steak. You would be a dull person indeed if now some economic short cut had not occurred to you. The steak might have been produced by Texas grass and North Texas corn, and the like, and it need never have traveled farther than San Antonio. The biscuit might have been given its form in Minneapolis.