Omaha daily bee., 1902-04-22
PACKERS HAVE AGREEMENT
Why Meat Prices Advance Regardless Of
Cost Of Live Stock.
FIGURES TO SHOW PROFITS OF COMBINE
Estimates Indicate that Packer Gets
About Ten Dollars for killing.
Dressing and Handling
Each steer.

30 far as can be learned the meat trust
as 1t exists locally amounts to an agree
ment between the packers as TO the price Of
meat and the method Of handling the bust
ness between the packing houses and the
retail dealers. There is no middleman in
the dealings between the men who kill the
animals and the men who sell the meat TO
the consumer. The local dealer purchases
direct from the packing houses and the
meat is delivered daily. All sales are made
on the basis OF weekly payment, the prices
being uniform for each grade. There are,
however. different grades Of meats, so that
carcass beef may be quoted from 9 to ~
cents a pound and the retail price will vary
with the quality OF the meat. 1t is claimed
that one OF the most disagreeable things
about the combination is that 1t quotes diff
ferent prices in different cities, and that
while the price in any town will be uni
form the price at Omaha will be higher
than the price made TO dealers in smaller
towns.
ALI bills against local dealers are pay
able on Monday following the sale. All
heAlers who fail to pay. on demand are
noted and at a meeting of collectors held on
Wednesday at the ONCE of one Of the COM
panies in South Omaha lists are made Of
the ublluQutulSt thCn company DelnR SuD-
piled with one Of these lists. From that
time the man on the list is required to pay
cash on delivery for his goods until he has
settled the account for which he was re-
ported.
Cash Basis JustIhed.
The third time the name Of a dealer goes
on the list OF those who fail to pay. that
dealer is forever barred from buying on
credit from any of the parties to the agree
ment. Such a condition has forced several
small shops out Of business, but It does not
bring much complaint on the part Of the
average dealer. one Of whom says:
The meat business should be a cash bus
iness from start to finish. 1t is so far as
the packer is concerned at this time. When
he buys a bunch of cattle he must pay the
cash to the farmer or the commission man
before the stock is delivered. When the
meat is ready for the market he insists
upon the dealer paying cash within a week.
This is as 1t should be. but then comes the
trouble. The average meat dealer will
trust his customers from thirty days to
eternity and the profits are so small on
meat, at this time especially, that the
failure OF two or three customers to meet
their obligations promptly will cause him
to fail. II the local dealer will use the
same judgment as that shown by the
packer who kills and the man who sells to
him there would be few failures and the
price of meat might not be so high in some
Of the shops"
PrOht to the
II has been claimed that at present
prices packers are losing money on their
products. the persons making this claim
taking the average price Of the wholesale
market and the average price Of cattle and
allowing the usual amount. As per cent of
the weight of the animal, for loss in dress
Ing. They say that the price of the dressed
beef will not more than equal the price Of
the steer on the hoof. The price of steers
at South Omaha Saturday was $40 per 100
pounds for prime stock, which is quoted at
about IL cents per pound in carcass. The
cost of an s0O-pound steer to the packer
would be $51.2O, and his return from the
retail dealer about $50. 80. In addition to
the profit on the sale OF the carcass the
packer makes a profit which amounts TO
more on the sale Of the by products. This
has been estimated to be about 80 per car
cass, the figures being;