New-York tribune., 1905-03-04
BEEF TRUST NOT SO Bad Mr.. GARFIELD REPORTS
COMMISSIONER OF CORPO RATIONS FINDS PROFITS
SMALL-SOME PACKERS AYE LOST MONEY

,5 labor by the Commissioner Of Corporations
.,s transmitted TO Congress to-day by the Pres
.ss.,+ IN response to resolution, the Beef Trust
;. -, 60 had as il has been painted. so far
---,~hsta-t profits and control Of prices are con-
- President Roosevelt's message of trans
INITIAL follows:
N the Senate and House Of Representatives:
AZ S-snSuit herewith a report from the Secretary
Of Commerce ard Labor upon that portion OF the
resolution Of ne ocSe o. RepEeSehtaVes sen aoopLsa @
- 5-sssed beef, the margins between such prices,
aa2 aa2a9tons - engaged in the beef packing industry.
- view Of The fact that Lae DepaItraent or JUS
Iee I : t-seEolution The Secretary OF Commerce and
LboT cannot at this 3R HIS 6s2RsTs ffs5eSg R6ogEvEr
77-bite House March g. 1875.
-,-.7T. PROFITS WHEN PRICES WE'RE HIGH.
,,.. -sport Of James r Garfield, Commissioner OF
,-s,ious is that six packing companies
80 & Co. Swift s Co.. Morris Co. the
--.,-sl Packing Company, the Schwarzschild &
Ss-ger Company and the Cudahy Packing
osny-slaughJered in 1903 about 10 per cent Of
- to.al ind caIed slaughter IL the United states;
-. tbe average net profit in 1903 for three OF the
companies was e9 cents neaoi that the year
- -stesd os being one Of exorbtant profits. was
= = -,4-anla than usual. and that. in the months
- prices OF beef were The highest some at least
:. 4ha leading packers were aoInA4iy Ios4As money
a. every head slaughtered
- ..-r-ss in the margin between prices OF
-..- q. The change IN profits. says the report.
-, ~ conditions for the years -SlZ. lsSS ana 1So5
&c -4v5sved and the conclusions are Fe@hieo 'ii6t
- ~ cornussIies especially discussed are apP1--
-r,- uor overcap4talizedi tnaI the Psl "a
- >, -ba gross volume OF business Is compare
- -,sU and that IN 192. 1893 and 1904 Swift &
: : ---,e-s did uor exceed per cent OF the total
- The CJdahy OOupazys pronts are placed al
= = cent for 1sO4 and 2s per cent Tor lSo-
- -sssrence TO private car lines in the packing
Haa a
- return OF from Il 70 II per cent oeins
sS1os-ss but il is added that reckoneo on me
-. = dressed bsef transported. the pront would
. ,,--tA 70 the cost Of best 70 the consumer Inc
-oet Of one conoern-the Cuc2Iy FacA-ns ~
1auv-ol its investment II CATS ~0@
- ,s- rant n one year.
T1---her the report says that the SIX prInclPaI
e.s+rr concerns, while they slaughtered only 40
,aTt Of the total cattle killed IN 1905. slaughter
- Is per cent Of the cattle killed in eight lead
e. Ksste-n packing centres; that they conuo4
-. na-csntags OF the trade in beef, particularly
:, rhe East and that they furnish NeW-1 ork ABOUT
x mar cent Boston more than Is per cent Fhl-a-
ssnkla about co per cent, Fitts5uTg more than "
osr cent and Baltimore about % per cent OF IleiI
meat supplies
pack+ur COMPANY mentioned one OF the Big
stx- : e merger Of various packing plants, Du-
sresut fer that concern, there appears 10 Dc no
esrs-gI tater-ownershp OF stock among the SIX
principal meat companies
sn1rE PACKERS ACTUALLY LOST MONEY
4 complete summary OF the report follows;
--.s- eix IA aci,tnR couDanies-A-mour & Co.
ex4e- & Co Morris & Co.. the National Packing
cornasuy The Schwarzschild & Sulzoerger CoIn-
-a-v and the Cadahy Packing Company neQuenI1y
dssg7zted Il the trade as the Big SIX -SisUs a. a.
.sred II the year 1913 65 6sT head Of cattle OUT Oh
.o-sl Indicated slaughter in the United States Oh
$4,000 head. or about . per cent
That the true average net profit for three COM
nsnies-the Arnour Swift and 5chWarzsc441to q
sulzherger concerns-for the twelve Inonths eno1Hs
-. A. 1a0q az sbuyu by their actual bookkeeping
reoordz vas Sc cents q head. not lnc4od1he AAc+
dental PROFITS ulcnroned below. .xo--
rr,.. +hs 1ss- 1ea2 instead OF being one OF e@oF-
7-art urn1ts as has been commonly supposeo' "- =.
e+s-i. +pen usual The rapport says N
e. 49, IN the months when prices OF pSoL ~0
tie highsst some OF the packers were a, ao@-y -
ing money OF every head OF cattle s-AusN'o
- ~ margin between the price OF cattle Ano
-, -sos ~ haef IN 1853 instead OF pe--g
-. - -,-,,,7e -iv supposed wes for eaco nan OF
49, ,ear lower than the margin Iof ANS W.
s7ondfng half year since l8se ana la LAC =
crease ia the margin for the second HA1- u -
over the first half was no greater li-A '-S S-----
change IN other years. Al average na-g-A' eoFe-
to +oral killings Of cattle by most Of the PACKING
houses II i've leading Western markets ana s@1oS
q beef II twenty -four cities having toIAI pOPu
lsttou Of about ten million persons, was = q per
hsred weight for January 10 June, 1SZ; y zaS 1or
- - rlacernber 1862. g a for January TO June,
7eos- q Il for the second half OF 1913, and = IS for
the first half OF 1s04.
T,ha1. conditions in 1902 were abnormal and that
cattle prices for 1868 and 1904 cannot fairly De com
Dared with tnat year. The great prosperity OF the
Country from 1899 70 Is2 apparently led 10 con-
ssde-abe increase II the per capita consumption OF
beef The practical failure OF the corn crop or 4SSl
Induced many cattle feeders 10 send their STOCK 10
market in Door condition thus reducing the aver
aRe weight and the average percentage OF dressed
fVT- Az
number OF cattle slaughtered at five leading West
eru packing centres in the first half OF 1S0S de-
creased only about per cent, as compared Win
the first halT Of 1901. the total i've weight OF the
cattle slaughtered is computed 70 have decreased
- per cent. and the computed dressed weight de-
creased considerably more. In this connection the
report EayE:
In the face OF the strong demand, the price Of
eatLe vas forced 70 the highest level ever known
TIE hish prices OF beef which caused so much com
plant among consumers al this time, Were atulD-
utabIe wholly 10 these abnormal cattle prices
COMPANIES NOT ovERCAPTTALzBD.
That i 1893 the price OF cattle fell very sharply.
chiefly F-cause OF q large increase IN the supply.
Tie number Of cattle killed Il Ave leading Western
markets Il the first half Of 1858 was more than il
Per cent greater than In the first half OF 1902 and
account of the increased size OF cattle the guam
tty Of beef produced increased 2 per cent.
II the second half OF 1853 the quantity OF beef de-
rivec from cattle killed the markets was
about = per cent greater than in the corresponding
pe--od q 1s2 Under these conditions, the price OF
be- instead q remaining the high level Of 1902
AI during 1sG BY larger absolute amount and
oy about the same percentage the price OF cattle
Ina; The six leading packing companies especially
discussed are apparently not overca pitalized.
That TIE percentage Of profit On the gross volume
q business, Including hog and shsep products and
otIsE minor commodities, Is comparatively small.
n The case q Swift & Co. in the three years 1902,
-SN sad 1901, the pronts have in no exceeded