The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1905-03-04
REPORT ON THE BEEF INDUSTRY
The Commissioners Finds the Packers
Have Recently Been Losing
Money, Alas!
(By the Associated Press

Washington. March 3.-President
| Roosevelt today transmitted to Con-
gress. the report of the Commissioner
! of Corporations upon the beef industry
submitted in compliance with the res
olution of the House of Representa-
tives adopted March Z, 1904. The Pres
ident'S letter of transmittal simply
refers TO the various topics treated in
the report and says that ''in view of
the fact that the Department of JUS
tice is now engaged upon other mat
terS involved in the resolution the Sec
retaIy of Commerce and Labor cannot
at this time report thereon"
The report of the Commissioner Of
Corporations is to the effect that six
packing companies, Armour & Com
paDy, Morris & Company, The Ma
tional Packing Company; The Schwarz-
child & Sulzbergef Company and the
Cudahy Packing Company slaughtered
in the year 1908 about As per cent
of the total indicated slaughter in
the United States; that the average
pprofit in 1893 for three of the COM
panies was 80 cents per head; that the
year 1902 instead of being one of eX-
orbitant profits was less profitable than
usual and that during the months
when prices of beef were the highest
some at least of the leading packers
were actually, losing money on every
had slaughtered. The changes in the
margin between prices OF cattle and
beef are in themselves no idications
whatever of the change in profits says
the report. Prices and conditions for
the years 1902, 1909 and 1904 are re-
viewed.
Concerning conditions in 1902 the
report says:
I'm the face of the strong demand.
the price of cattle was forced to the
highest level ever known. The high
prices of beef which caused so much
complaint among customers at this
time, were attributable wholly to these
abnormal cattle prices"
The report says that in 1903 the
price Of cattle fell very sharply,
chiefly because of a large increase in
the supply.
The report states these conclusions.
that the six companies especially dis
cuSsed are apparently not over-cap.
italized; that the percentage of profit
on the gross volume of business is
comparatively small and that during
the years 1902, 1903 and 1904 Swift
& Company's profits have not ex-
ceeded per cent of the total sales;
Cudahy & COmpany's is stated at Is
per cent for 1904 and 2.3 per cent for
1902. With reference to private car
lines in the packir~ industry it is
stated tnaJ the pFOHC is a very IlDGfdl
one q net return of from 1 4 to II
per cent being indicated. but it is
added that reckoned on the basis of
dressed beef transDortated. the profit
would add but little to the cost of
beef to the consumer The profit of
one concern. Cudahy Packing Com
pany on it's investment in cars was as
high as % per cent in one year. Fur
Their it is stated that the six principal
packing concerns while they slaugh-
tered but As per cent of the total cat
tie killed in 1903. slaughtered nearly
SO ner cent Of the cattle killed in
eight leading western packing Centers:
that they control a very large per-
of the trade in beef ~articu-
larly in the east and that they furnish
New York about rs per cent, Boston
more than IS per cent, Philadelphia
about 60 per cent, Pittsburg more
than GO and Baltimore about SO nc~
cent. avs E&aa8
The report in conclusion says that
the National Packing Company mem
toned as one of the "bi~ six is a
merger of various packing plants, but
except for that concern there appears
to be no general inter-ownership of
stock among the SIX principal COM
panieS