Evening journal., 1905-03-04
SAYS BEEF TRUST \
NOT A MONOPOLY
Commissioner of Corporations
Makes a Report to the
President
DECLARES HIGH PRICES JUST

washington, MarNn a. 49, PRESIDENT
Roosevelt transmitted to congress the
report of the commissioner of cor
porations upon the beef industry sub
United in compliance with the resolu-
tion Of the house of representatives,
adopted March z. 1904.
A summary of the report is as fol-
lows:
That. six packing companies-Ar-
mour & Co. Swift & Co.. Morris & Co.,
National Packing Co., Schwarzschild
& Sulzberger Co. and the Cudahy
Packing Co. frequently designated in
the trade as "the big six"-slaughtered
in the year 1903 5,521 ,697 head Of cat
tie out of total indicated slaughtered
in the United States OF 12,5OO,OO0 head
or about 45 per cent
That the true average net profit for
three companies. Armour, Swift and
Schwarzschild & Sulzberger. for the
- months ending June 80. 1903, as
shown by their actual bookkeeping
records. was 8 cents per head. not in.
cluding incidental profits mentioned
below.
That the year 1902, instead Of being
one OF exorbitant profits, as has been
commonly supposed, was less profit
able than usual The report says, in
fact, 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 Of
cattle slaughtered.
That the changes in the margin be-
tween the prices Of cattle and the
prices of beef are in themselves no in
dication 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 1903, instead of being unu-
sually 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 1908 over the first half was no
greater than the similar change in
other years. An average margin, COW
ering total killings of cattle by most
of the packing houses in FIVE leading
western markets and sales OF beef at
"a cities having a total population Of
about 10,0OO.OOO persons, was S2.S1 per
hundred.weight for January to June,
1902; 81 for July to December 1902;
S2,l4 for January TO June, 19O3 S2.41
for the second half of 1908, and S233
for the first half of 1904.
That conditions in 1902 we're alb
normal, and cattle prices for 1908 and
1904 cannot fairly be compared with
that year. The great prosperity OF the
country from 1899 to 1903 apparently
led to a considerable increase In the
per capita consumption of beef The
practical failure of the corn crop Of
1901 induced many cattle feeders to
send their stock to market in poor
condition, thus reducing the average
weight per head and the average per-
centage of dressed beef 20 live weight
AS a result while the total number
Of cattle slaughtered at I've leading
western packing centers during the
first half of 1902 decreased only about
per cent. as compared with the
first half Of 1901, the total live weight
of the cattle slaughtered Is computed
TO have decreased 43 per cent, and
the computed dressed weight de
creased considerably more. In this
connection the report says:
TN 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 consumers at this
time, were attributable wholly to these
abnormal cattle prices"
That in 1903, the price of cattle fell
very sharply, chiefly because of a
large Increase in the supply. The mum.
Der of cattle killed in FIVE leading
western markets during the first half
OF 1908 was more than Is per cent
greater than during the first half OF
1902, and on account OF the increased
size of cattle the quantity OF beef in
creased 22 per cent
In the second half Of 1903 the quan-
tity of beef derived from cattle killed
at the same markets was about 10 per
cent. greater than in the correspond
ing period of 1902. Under these condi-
tons the price Of beef, instead Of re-
naming at the high level of 1902. fell
during 1903 by a larger absolute
amount, and by about the same per.
centage as the price OF cattle.
That the six leading packing com.
panies especially discussed are appar-
emily not overcapitalizod.