Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1905-03-03

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the United States, l2,50O,OO0 head or
about 40 per cont.
NORMAL CONDITIONS.
That conditions In 1902 were about
normal and that cattle prices for 1908
and 1904 cannot fairly be compared with
that year. Great prosperity OF the
country from 1899 10 1902 has partly
led to 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 TO live wight. As result,
while the total number Of cattle slaugh-
tered at five leading western packing
centers, during the first half Of 1902 de-
creased only about ] per cent as COM
pared with the first half Of 1901, the
total live weight Of the cattle slaugh-
tered Is computed TO have decreased 43
per cent, and the computed dressed
weight decreased considerably more,
PRICES FORCED UP.
In this connection the report says:
In 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 20 those
abnormal cattle prices"
That in 1903 the price OF cattle fell
very sharply chiefly because OF large
increase In the supply, The number Of
cattle killed In Ave leading western
markets during the first half Of 1903
was more than rs per cent greater than
during the first half OF 1902. and on ac-
count OF the increased size OF cattle
the quantity Of beef produced increas-
ed % per cent.
That the true average net profit for
Ihreo companies-the Armour swift
and Schwar2schild & Sulzberger--fOr
the - months ending June 30, 1908, a.
shown by their actual book Keeping rec
ords was 90 cents per head, not includ-
ing incidental profits mentioned below,
That the year 1902 instead Of being
one Of exorbtant profits as has been
commonly suopOsed was less profitable
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 mtrgln be-
tween the prices Of cattle and the prices
Of beef are I'm themselves no Indication
whatever OF the changes In the profits
Of the beef business
A POPULAR FALLACY.
That the margin between the price
Of cattle and the price Of beef during
the year 1903, instead OF being unusual
~ high as popularity supposed, was
90. Oh huIg of al 10
the margin for any corresponding half
year since 1925 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, covering total kill
ings Of cattle by most Of the packing
houses IN 0ye leading western markets
and sales OF beef nj "A cities. having a
total population OF about 100000 900, was
1881 per hundred-welght Tor January to
June, 1902; 1888 for July to December
1902; SEA for January to June, 1903
S24l for the second half OF 1903, and
1888 for the nrst half Of 1904.
In the second half OF 1903 the quan-
THY Of beef derived from cattle killed
at the same makets was about 10 per
cent greater than In the corresponding
period Of 1902. Under these conditions
the price Of beef, instead Of remaining
at the high level Of 1909, fell during 1858
by larger absolute amount and by
about the same per centngo as the price
OF cattle.
NOT OVERCAPGTALIZED.
That the six leading packing COM
panies especially discussed are ap-
paNntly not over.copltalized That
percentage OF profit on the gross volume
Of business, including hog and sheep
products and other minor commodities,
is comparatively small In the case
OF Swift & Coz during the three years
1902, 1903 and 1904 the profits have In
no case exceeded per cent Of the to-
tai sales. In the case of the Cudahy
Packing company for 1904, the net pro-
10 was rs per cent OF the total sales,
IN 1902 il WAS 2.S per cont,