Twice-a-week plain dealer. (Cresco, Howard County, Iowa) 1895-1913, 1905-03-10
INDICATES THE
BEEF PACKERS
SCORE POINT IN REPORT OF COM
MISSIONER GARFIELD.
SYNOPSIS OF THE DOCUMENT

Profits Declared Not to Be Exorbitant I!
Leading Firms Control Less
Than Half of Trade and
Have No Monopoly.
Washington, March 4. = President
Roosevelt Friday transmitted to con-
gress the report of the commissioner of
corporations upon the beef industry
submitted in compliance with the resolu-
ton of the house of representatives
adopted March Z, 1904. The presidents
letter of transmittal is as follows:
ITO the Senate and House of Repre-
sentatives: transmit herewith re-
port from the secretary Of commerce and !
labor upon that portion of the resolution
of the house of representatives, adopted
March Z, 1904, having to do with the
prices of cattle and dressed beef, the
margins between such prices, and tho
conduct and profits of the
corporations engaged in the beef packing
industry
in view of the fact that the depart
ment of justice is now engaged upon |
other matters involved in the resolution
the secretary of commerce and labor
cannot at this time report thereupon.
THEODORE ROOSEVELT.
white House, March 8, 1906"
Summary of Report.
The report of the commissioner OF
corporations is. to the effect that six
packing companies-Armour & Co.,
Swift & Co., Morris & Co., the National
Packing company, the Schwarzschild
& Sulzberger Co. and the Cudahy Pack
ing Co., slaughtered In the year 1908
about As per cent. of the total indicated
slaughter in the United States; that tina
average net profit in 1903 for three Of tbs
companies was SO cents per head;
that the year 1902, instead Of being one
OF exorbitant profits. was less profit.
able 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. The changes in the
uargin between prices of cattle and beef
are in themselves no indications what
ever of the change in profits, says the
report.
Prices and conditions for the years
1902, 1908 and 1904 are reviewed, and the
conclusions are stated that the six COM
panies especially discussed are apparent
~ not over-capitalized; that the per.
centage of profit on the gross volume
OF business is comparatively small, and
that during the years 1902, 1908 and 1904
Swift & Co.'s pfeftg had not exceeded
two per cent. of the total sales; Cudahy
n Co.'s is stated at 1.s per cent. for 1904.
and % per cent. for 1902.
Private Car Line Profitable.
4 With reference to private car lines In
the packing industry, it is stated that
the profit is a very liberal one, a net re-
turn from IA to II per cent. being in.
dicated, but it is added that, reckone1
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, cudahy Packing com.
pany, on its investment in cars was a
high as % per cent. in one year. Fur
ther, it stated that the six principal
packing concerns, while they slaugh.
tered but As per cent. of the total cattle
killed In 1903. slaughtered. nearly
SO per cent. of the cattle killed in eight
leading 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 rs per cent, Boston more than IS
per cent, Philadelphia about go per cent,
.Pittsburg more than go, and Baltimore
about 80 per cent.
The report in conclusion says that
the National Packing company, men,
toned as one Of the big SIX" is uuer.
ger Of various packing plants, but ex.
cept for that concern there appears to
be no general interownership of stock
among the six principal companies.
Records Of Packers Investigated.
A. already stated, the bureau has
made Its computations from the records
of the companies. The bureau has had
ACCESS to all the price records OF the Lead
ing packing companies and also to all
the accounts and records, excepting car
line accounts which determine thu
profits OF the packers on beef and Its by
products. The computations made GOV.
cred ten plants, killing upward OF 2.0oo,-
400 cattle, and were based on the total
number Of cattle killed, the absolute
Agures Of live weight, and the live cost
Ut all dressed beef cattle together with
= moderate number of inferior grades).
The actual cost of operation and admin
dstration Of the various departments was
Rscertained from the bookkeeping rec
Ords, and actual quantities and values
were taken for the leading by-produots
items.
The conclusions of the report in regard
TO the operations of private car lines
are approximate. The bureau arrives
at An average cost for refrigerator car
Of 81 900. an average yearly cost of main
tenance of $115 per car, and a net profit
from the mileage alone, as already
stated, of from IA per cent. to about II
per cent.
Passed Election Measure.
4 Springfield, ILL.,, March A primary
election bill was passed by the house by
the large majority of 119 to 20, rs dem
Dcrats voting for the measure 1t viii
70 at once to the senate, where some
amendment is expected.
Hx.rna Down Fine Position