Fergus County argus. [volume] (Lewistown, Mont.) 1886-1946, 1905-03-08
BEEF TRUSTS
OPERATIONS
Report Of Commissioner of Corpora.
tions Garfield is Transmitted to
Congress by Mr.. Roosevelt.
WHAT THE BIG PACKERS CLAIM
Assert That They Have Not Made
Much Profit-Margin Between
Prices Of Cattle and Beef.

Washington, March 5.-President
Roosevelt today transmitted to con
gress the report of the commissioner
of corporations on the beef industry
-, submitted in compliance with the res
Olution of the house of representa-
tives adopted March Z, 1904. The
presidents letter of transmittal is as
follows:
Il transmit herewith report from
the secretary of commerce and labor
upon that portion of the resolution
of the house of representatives adopt
ed March 7, 1904, having to do with
the prices of cattle and dressed beef
the margins between such prices and
the organization, conduct and profit
of corporations engaged in the beef
packing industry.
I'm view of the fact that the de-
partment of justice is now engaged
upon other matters involved in the
resolution the secretary of commerce
and labor cannot at this time report
thereon.
THEODORE ROOSEVELT"
That six packing companies-Ar-
mour & Co., Swift & Co., Morris &
Co., the National Packing company,
the Schwartzchild & Sulzberger COM
pany and the Cudahy Packing COM
pany-frequently designated in the
trade as the big Six" slaughtered in
the year 1903 5,521, 697 head TO cattle
out of total indicated slaughtered in
the United States of 12,500,O0O head,
or about As per cent.
That the true average profit for the
three companies, the Armour Swift
and Schwartzchild & Sultzberger, for
the - months ending June 80, 1903,
as shown by their actual bookkeeping
records, was 80 cents per head, not
including Incidental profits mentioned
below.
That the year 1902, instead of be-
ing one of exorbitant profits as has
been commonly supposed, was less
Profitable than usual. The report
says, in fact, that during the months
when prices of beef were the highest.
some, at asst, Of the leading packer;
were actually losing money on every
neat cf cattle Slau,il! , ed.
That the changes in the margin be-
tNtel the pllCes of cate ~ d the
prices of beef are in themselves no
indication whatever of the changes
in the profits of the beef business.
That the margin between the price
of cattle and the price of beef during
the year 1908, instead of being unus
ually high, as popularity supposed
was for each half of that year lower
than the margin for any correspond
ing half year since 1898. and that the
increase in the margin for the second
half of 1903 over the first half was
no greater than the similar change in
other years. An average margin, COW
ering the total killing of cattle by
most of the packing houses in five
leading western markets and sales OF
beef at "a cities, having a total pop
ulation of about 100000 persons
was 1921 per hundred weight for Jan
uary to July, 1902; $2.14 for January
to June, 1903; $2.4l for the SECOND
half of 1903, and $3.50 for the frs
half of 1904.
That conditions in 1902 were abou
normal and that cattle prices for 1870;
and 1904 cannot fairly be compared
with that year; the great prOsperit,
of the country from 1889 to 1902 ha:
partly led to a consider able increase
in the per capita consumption of beet
The practical failure of the corn crol
of 1901 induced many cattle feeders
to send their stock to market in poo
condition, thus reducing the average
weight per head and the average pc
centage of dressed beef to live weight
AS a result, while the total numbe
of cattle slaughtered at five leading
western packing centers during tn
first half of 1902 decreased only abou
one per cent as compared with tn
first half of 1901. the total live weigh
of the cattle slaughtered is computes
to have decreased 4.3 per cent, an
the computed dressed weight consid
erably more.
In this connection, the report says
I'm the face of the strong demand
the price of cattle was forced to tn
highest level ever known. The higl
prices Of beef, which caused so nue.
complaint among consumers at thi