Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1905-03-09
NOT EXORBITANT.
Great beef Industry Of the Cnitcd
states Gives Moderate Profits.

washington, March 3.-Presidcnt Roose-
Welt to-day transmitted to Congress the
report Of the commissioner of corpora.
tons upon the beef industry submitted in
compliance with u resolution of tho
House of Representatives adopted March
:, 1904 The Presidents letter of trans
initial is as follows.
''ro the Senate and House of Represent
tatives:--I transmit herewith the report
from the secretary Of commerce and la
Dor upon that portion of the resolution
of the House of Representatives adopted
March T. 1904, having to do with the prices
of cattle and dressed beef tn. margins
between such prices and the organization
conduct and profits of corporations en-
gagged in beef packing industry. In view
of the fact that the department of JUS
tce is now engaged upon other matters
involved in the resolution the secretary
of commerce and labor cannot at this
time report thereon.
THEODORE ROOSEVELT.
white House March 3. 1906
The report of the commissioner of cor
roratinns is to the effec: that six pac X
ing companies. Armour & Co.. Swift T.
Co. Morris L. Coz the National Pack
ing company, Schwarzscheld & Suffer-
berger company and CudahA Packing
company slaughtered in 1908 about IS per
cent. of the total cattle slaughtered in
the United States that tho average net
profit in 1903 for ,hree Of the compa MES
was ~ cents per head that the year Of
1902 instead Of being one of exorbitant
profits was less profitable than usual
and that during the months when the
prices of beef were highest some at
least of the leading packers were actual
~ losing money on every head slaughter
ed. Changes in the margin between tho
prices Of cattle and beef are in them
selves no indications whatever OF change
in profits, says the report.
Prices and conditions for 1902. 1863 and
l:oi are reviewed and conclusions stated
that the six companies especially discuss
ed are apparently not Owe" capitalized
that the percentage Of profit on the gross
volume ofhusIress is comparativeiys small.
and that during 1907. 1863 aud i.o4. Swift
& Co.'S profits have not exceeded . per
cent. of the total sales: Cudnhy S. Co.
is stated ct Is Cor 400 and 80 per cent.
for 1902.
With reference to private car lines in
the packing industry il Is stated the pro-
lit Is very liberal II net returr OF "A to
II per cent bong Indicated but il is
added that reckonod on the basis Of
dressed beef transported the profit would
add but little to the cost of beef TO the
corsumcrs. The profit a.. one concern,
ne Cudnhy Packing company, on it's III
vcstmcnt in cars was as high as - per
cent. IN ono year. Further il is stated.
tho six principal packing concerns while
thry slauohtcred but a. per cent. of the
cattle killed in 1905 slaughtered nearly
oS per cent. Ct the cattle killed in the
leading Western packing ccn.crs. that
they control n vary large percentage of
tho business in beef particularly in tho
East and that they furnish New York
about - per cent: Boston more than s.
per cent: Philadelphia about 60 per cent
Pittsburg moro than go per cent, and
Baltimore about 70 per cont.
The report in conclusion says the Ma
tora! Packing company mentioned as
nnr Of tho big Six" is merger of various
packing plants. but except for that con-
cern there appears 10 bc no general in
tcrowncrship of stock among the SIX prin-
cipal companies.