The daily morning journal and courier. [volume] (New Haven, Conn.) 1894-1907, 1905-03-04
BEEF TRUST REPORT.
FINDINGS OF COMMISSIONER IN
FAVOR OF COMBINE.

Six Leading Packing Companies AS
certained to Have Made Small Profits
During Period OF High Retail Prices,
and Part Of the Time 20 Have Been
Losing Money-Concerns Not over
capitalized, and Slaughter Only A5
Per Cent. OF the Total.
Washington, March S.-President
Roosevelt to-day transmitted to con-
gress the report of the commissioner
of corporations upon the beef industry,
submitted in compliance with the reso-
luton of the house of representatives
adopted March I, 1904. The presidents
letter of transmittal is as follows:
ITO the Senate and House Of Repre-
sentatives:
81 transmit herewith a report from
the secretary of commerce and labor
upon that portion of the resolution of
the house of representatives, adopted
March 7, 1904, having to do with the
prices of cattle and dressed beef, the
margins between such prices, and the
organization, conduct, and profits of the
corporations engaged in the beef pack
ing industry.
In view Of the fact that the depart
ment of Justice is now engaged upon
other matters involved in the resolu-
ton, the secretary of commerce and la,
Dor cannot at this time report there
on.
Theodore Roosevelt.
White House, March 3, 1905"
The report Of the commissioner of
corporations is TO the effect that six
packing companies Armour & Co.,
Swift & Co, Morris & Co., the Nation
al Packing company, the Schwarzschild
& Sulzberger Co., and the Cudahy
Packing company slaughtered in the
year 1908 about forty-ive per cent. of
the total indicated slaughter in the
United States; that the average net
profit in 1908 for three of the companies
was ninety-nine cents per head; that
the year 1902, instead of being one of
exorbitant profits, was less profitable
than usual, and that during the moths
when prices of beef We're the highest,
some at least OF the leading packers
We're actually losing money on every
head slaughtered.
The change in the margin between
prices of cattle and beef are in them
selves no indications whatever in the
change in profits, says the report.
Prices and conditions for the years
1902, 1908 and 1904 are reviewed, and the
conclusions are stated that the six
companies especially discussed are APP
parently not overcapitalized; that the
percentage of profit on the gross vol
ume of business is comparatively small;
and that during the years 1902, 1903
and 1904 Swift & Co.'S profits have not
exceeded two per cent. of the total
sales: Cudahy & Co.'s is stated at is
for 1904 and 2.S per cent. for 1902.
With reference to private car lines
in the packing industry it is stated
that the profit Is a very liberal one, a.
net return of from fourteen to seven
teen per cent. being indicated, but it
is added that reckoned on the basis Of
dressed beef transported, the profit
would add but little to the cost of beef
10 Lie GOIlSuUleEs 1He profit Oh one
concern, Cudahy Packing company, on
its investment in cars was as high as
twenty two per cent. in one year. Fur
ther it is stated that the six principal
packing concerns, while they slaghter-
ed only forty-five per cent. Of the to-
tai cattle killed in 1903, they slaugh-
ter nearly ninety-eigt per cent Of the
cattle killed in eight leading western
packing centers; that they control Al
very large percentage Of the trade in.
beef, particularly in the east, and that
they furnish New York about 70 per
cent, Boston more than So per cent.
Philadelphia about so per cent, Pitts
burgh more than so, and Baltimore
about SO per cent.
The report in conclusion says that the
National Packing company mentioned
as one of the "big six" is a merger of
various packing plants, but, except for
that concern, there appears ito be no
general interoWnership Of stock among
the six principal companies.