The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1905-03-03

explained by the operations Of large
number of small Strengthening establish
ments. Taking the principal slaughter
ing and distributing centers, the proper
ton controlled by the six companies
mentioned is much greater.
Germs slaughtered nearly is per cent Of
all the cattle killed in the eight lead
Chicago, Kansas city, soutR, Omaha,
East st. Louis, South St. Joseph, Fort
Worth, Sioux City and South St. Paul.
In the same way they control very
large percentage Of the trade in beef
in many large cities, particularly in the
east.
Method Of Computation.
In order to make certain of the &C.
curacy Of the results the bureau
adopted double method of ascertain
ing the profits. 1t first compiled, from
the detailed records of packing com
panies, exact figures of the quantities,
costs and sales of cattle and all prod
elements computed the profit Of each
Of the packers separately and Of all
together. This computation was con-
fined to the Armour, Swift and
Schwarzchild & Sulzberger companies
Then the figures thus Independently
reached were compared directly with
the bookkeeping profits shown by the
Following is the result of the computa-
ton: :. F.,
During the year from July, 1902. to
June, 1908, these packers slaughtered at
the selected plants 2,017,864 cattle. The
average live weight of these cattle was
1902 pounds, and the actual average cost
$446 per hundredweight, the cost per
head being s48.5S. The cost Of operation
and administration at the packing plants
averaged s1.s0 a head, making the total
cost $5O,4s. The weight Of the beef de-
rived from these cattle was equal to
b5.6S per cent Of the live weight, or 500
pounds per head. The average net selling
price Of the beef was S6.47 per hundred
weight, or 1892 per head. The net value
OF by-products from the cattle was $11.9o
per head, making the total proceeds
S61.2s per head. This showed an average
profit OF 80 cents head, or 1871 cents
| per hundredweight of dressed beef.
| For the year from July, 1908, to June,
1904, the computation covered 2,018,65S
cattle, and showed the total proceeds of
| the beef and by-products were $49.01,
| leaving profit of 80 cents per head,
equal to 1875 cents per hundredweight of
| dressed beef.
On account Of certain imperfections
|
computations were made, it was not to
be expected that they would show pre-
clsely the same results as the book
keeping accounts Of the companies for
the departments concerned. From July.
1908, to June, 1904, the bookkeeping
profit of the three companies named,
for the same plants as were covered by
the detailed computations, in each case
somewhat exceeded the computed profits.
The greatest difference was 80 cents a
head. The true weighted average of
the bookkeeping profits Of the three
companies for the twelve months named
was 80 cents head or II cents higher
than the computed profit.
Profits from Byproducts.
In addition to the average profits
just indicated are the further profits aris,
ing from elab oration of byproducts be-
You'd the first marketable stage and car
mileage, which may together add not
age profit Of 9 Scents just given. The ad'
ditional profit derived from celebrating
minor byproducts is over and above
their value as raw material which is
already included in the profits of the
beef business.
The great packing establishments
have numerous auxiliary departments
some of which are virtually distinct
industries not strictly belonging to the
packing business.
Private Car Profits.
The profit on private refrigerator
cars is that derived from the mileage
paid by the railroads which, roughly
speaking, averages slightly more thar
three-fourths of cent mile for every
mile Travelled by refrigerator cars
whether loaded or empty. The average
distance to which beef is transported
from the packing house before consump
ton does not exceed 800 miles.
The gross mileage received by tn
owner Of the refrigerator car woult
Estimating That a car a. 'O Of dressed Sp;
: beef weighs not less than 10000 pounds
, the gross mileage receipts would no
, exceed cents a hundred pounds O.
{ beef. Of these gross mileage receipt
, fully one-third Is absorbed in the cos
of maintaining equipment, including
3 allowance for depreciation, thus leav
ing not more than 4 cents hundre,
pounds of dressed beef as the net re
turn derived from the ownership O
: private cars handling that product
This is equivalent to about Is cents
| head Of cattle.
8 Statistics Of Margins.
The statistics Of margins betwee,
: prices Of cattle and prices of bee
> since 1898 are shown on the basis O
: the live cost Of all cattle at four plant
in different packing centers as com
- pared with the average price Of bee
p sold by leading packer in nine i'm
! portant cities. On this point the re
g port says:
@ The average margin for the whole pc
Rod, from January, 1898, to June 100
was $3.50; the lowest margin was in tt
first half OF 1903, namely, $2.21, and tt
II highest margin was in the last half {
- 1902, namely, $S.O2 The margin in tt
. last half Of 1908, instead Of being excer
:, - tionally high, was below the average, 6
. also the margin for the first half Of 100
y y The year 1908, instead of being chara,
!. terized by unusually high margins, ha
in fact, the lowest average margin f,
. the whole period for which a reliable re,
u ord is obtainable.
t. 1t cannot be emphasized too strongl
d that changes in the margin betwee
r prices of cattle and prices of beef al
e Of little value as a basis for judgin
IS the movement Of profits. This ma
e readily be appreciated from the mel
e fact that on the average only 81 to {
d per cent Of the live weight Of catt]
10 is retained in dressed beef.
By-Products and Margins.
Altho the value of the by-produc
u is very important factor, It is i
4 vIarlably, in the aggregate, much le