Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1905-03-03
Commissioner of COrpOr-
atiOnS Fails to Dis
cover Combine.
MAKES HIS REPORT
Declares Some of the Big Com
panieS Do Business at a
Positive Loss.

Washington. March 3.-The presi-
dent today transmitted to congress the
report of Commissioner of Corpora
tionS Garfield upon the beef industry
submitted in compliance with the reso.
luton of the house of representatives
adopted last march.
Have Some Competition.
The report says six packing COM
panies designated as the Big Six"
slaughtered about 45 per cent of the
| total cattle slaughtered in the United
States in 1908. which indicated clearly
| the existence of active competition
by other smaller concerns in many
places, but taking the principal slaugh-
| tering and distributing centers the
greatest proportion was controlled by
the six companies. which slaughtered
nearly 9S per cent of the cattle killed
in eigh' leading western packing cen
ters and control a very large percent
age of the trade in beef in many large
cities, especially in the east
business Is Poor.
Prices and conditions for the years
1902. 1903 and 1904 are reviewed and
the conclusion reached that the per-
centage of profit on the gross volume
of business is comparatively small
and that during those years Swift G.
Co.'S profits have not exceeded two
per cent of the total sales. Cudahy
& Co.'S is stated at is per cent for
1904 and ?. per cent for 1902.
With reference to private car lines
of the packing industry it is stated
the profit is a very liberal one. the net
return from II to II per cent being
indicated, but, it is added reckoned on
the basis of dressed beef transported.
the profit would add but little to the
cost of beef to the consumer.
The profit of one concern. the Cud-
ahy Packing company. on its invest
ment in cars was as high as % per
cent in one year
Little IntcrOwnershIp of stock.
The report in conclusion says the
National Packing company. mentioned
as one of the Big Six" is a merger
of the various packing plants, but ex-
cept for that concern there appears to
be no general interownership of stock
among the six principal companies.
Profits Represented as Small.
The true net profit for Armour, Swift.
Schwarzschild & SulzbeTger for the IL
months ending June 80, 1903, as shown
by actual bookkeeping records, was 80
cents per head, the net including Incl
dental profits, which are about so cents
per head.
During 1902. instead of being one of
exorbitant profits, as supposed. some of
the leading packers lost money on ev-
cry head of cattle slaughtered. Chang
es in the margin between the prices of
cattle and prices of beef are in them
selves no indication whatever of chang
es in profits in the beef business.
Margin WINS Low.
The margin between the price of cat
tie and the price of beef during the
year 1903, instead of being unusually
high, as popularity supposed, was for
each half of that year lower than the
margin for any corresponding half
year since 1898. The price of cattle
fell very sharply, chiefly because of the
large increase in supply
The report says that the six leading
packing companies especially discuss
ed are apparently not over capitalized;
that the percentage of profit on the
gross volume Of business including
hog and sheep products and other mi
nor commodities, IS comparatively
small; and that the profit of private car
lines in the packing ]ldustry on mile
age is very liberal one, approximate
indicating a net return
of from IA per cent to about IL per