The Montgomery advertiser., 1905-03-04
AS TO THE
 BEEF TRUST Commissioner Garfleld'S Rsjrt Submitted. co. .REss HAS DOCUMENT Interesting Facts Regarding
 'Big Six" Profits Made by Packers Seem Not So Terribly Exorbitant as Was sup-
 posed-Regarding Inter- ownership.
0gsIRESS HAS DOCUMENT

|
 Washington. March B. President Roosevelt today transmitted to Congress the report of the commissioner on cor- porations upon the beef industry sub- hitter in compliance with the resoIu . of the House of Representatives adopt ed March z. 1904. The Presidents let ter of transmittal Is as follows:
 TO the Senate and House of Repre- sentatives:
 T transmit herewith a report from the secretary of commerce and labor | upon that portion of the resolution of the House of Representatives adopt ed March '. 1904. having to do with the prices of cattle and dressed beef. the margins between such prices, and the organization, conduct and profits l of the corporations engaged in the beef | packing industry.
 "In view of the fact that the de- partment of justice Is now engaged up- on other matters involved in the res olution, the secretary of commerce and labor cannot at this time report there upon. (signed.) "Thedore Roosevelt. White House. March 8. 1e05." The report of the commissioner of 1 corporations is to the effect that six packing companies-Armour and Com- pany. Swift and Company, Morris and Company. the National Packing Com pany. the Schwarschild and Sulzberger Company and the Cudahy Packing Company slaughtered in tine year 1903 | about forty-five per cent of the total indicated numbers of cattle slaughter ed in the United States; that the av- craze net profit in 1903 for three of the companies was ninty-nine cents per head; that the year 1909 instead of be- ing one of exorbitant profits was less profitable than usual; that during the months when prices of beef were the highest some at least of the leading packers were actually losing money on every head slaughtered.
 Changes in Margin. The changes in the margin between prices of cattle and beef are in them selves no indications whatever of the change Of profits says the report I Prices and conditions fot the years 1902, 1908 and 1s04, are reviewed and the conclusions are stated that the six companies especially discussed are ap- | parently not over-capitalized: that the percentage of profit on the gross vol ume of business is comparatively small, | and that during the year 1903, 1903 and 1904, Swift and Company's profits have not exceeded two per cent of the total sales: Cudahy and Company's is stated at IS per cent for 1904 and 2s per cent for 1902.
 With reference to private car lines | in the packing company it is stated that the profit is a very liberal one, a net return from fourteen to seven- teen per cent being indicated, but 1t Is added that reckoned on the basis of dressed beef transported the profit adds but little to the cost of beef to the consumer. The profit of one concern. the Cudahy Packing Com pany, on its investment iN cars was as hign as twenty-two per cent in one year. Further. it Is stated that the six principal packing concerns while they slaughtered foriv-r1ve per cent of the total cattle killed in 1903, they slaughtered nearly ninety-eight per cent of the cattle. killed in the lead ing Western packing centers; that they control very large percentage of the trade in beef particularly in the East and that they furnish New York about seventy five per cent. Boston more than eighty-fi live per cent. Philadelphia about sixty per cent. Pittsburg more than sixty per cent. and Baltimore ten per cent
 The report in conclusion says that the National Packing Company, mem tioned as one of the Big Six" is a merger of various packing plants but except for that concern there appears l stock among the six principal com- | panies.
 100s's Sharp Decline. The report says:
 That in 1903 the price of cattle fell very sharply chiefly because of a large increase in the supply The number of cattle killed in i've leading Western markets during the first half of 1903 was more than Is per cent greater than during the first half of 1902, and on &C., count of the increased size of the cat tie the quantity of beef produced in- creased 22 per cent.
 In the second half of 1903 the quanti- ty of beef derived from cattle killed at the same markets was about ten per cent greater than in the corresponding l the price of beef. instead of remaining at the high level of 1902, fell during 1903 by a larger absolute amount and by about the same per centage as the price of cattle.
 That the six leading packing compa- nies especially discussed are apparently not over capitalized.
 That the per centage of profit on the gross volume of business including hog and sheep products and other mi nor commodities. is comparatively small. In the case of Swift & Company, during the three years. 1902, 1903 and 1904. the total pro11ts haev in no case exceeoed per cent. Of the total sales. Tn the case Of the Cudahy Packing | Company, for 1904 the net profit was 1 1.0s for the total sales. In 1902 it was 8 per cent.
 That~the profit of private car lines in the packing industry on mileage Is a very liberal one approximate computa- tions indicating a net return of from 14 per cent. to about IT per cent. Reck- | oninK on the basis of dressed beef, transported. however. this profit would add but little to the cost of beef to the consumer. the net profit from the mile age of private cars being computed at not more than four cents per one hun dred pounds of beef, or say 25 cents per head oG cattle.
 1 Active Competition. The statement already made that the six largest concerns mentioned slaugh- tered in 1903 only about 45 per cent. of | ehe cattle killed In that year indicates very clearly the existence of active competition by other concerns, at least. in many places. This Is chiefly explain ed hy the opsrationS of a large number