The Madison daily leader. [volume] (Madison, S.D.) 1890-current, 1905-03-04
OPINION OF COMMISSIONER OF
CORPaRATIOkS ANENT THE
EEGF INDUSTRY.
REPORT TRANSMITTED TO CONGRESS
PRIVATE CAR LINES SHOW VERY
LARGE RETURNS FOR CAPi-
tai INVESTED.

Washington, March 4.-President
Roosevelt has transmitted to congress
the report of the commissioner of cor
porations upon the beef industry sub
mitted in compliance with the resolu-
tion of the house of representatives
adopted March Z, 1904. The presidents
letter of transmittal is as follows:
ITO the Senate and House of Rep
resentatives: l transmit herewith a
report from the secretary of commerce
and labor upon that portion of the
resolution of the house of representa-
tives adopted March Z, 1904, having
to do with the prices of cattle and
dressed beef, the margins between
such prices and the organization, con-
duct and profits of the corporations en-
gagged in the beef packing industry.
"In view of the fact that the depart
ment of justice is now engaged upon
other matters involved in the resolu-
tion the secretary of commerce and
labor cannot at this time report there
upon
Summary of the Report.
The report of the commissioner of
corporations is to the effect that six
packing Companies-Armour a. Co.,
Swift & Co, Nelson Morris, the Ma
tional Packing company, the SchwarZs-
child & Sulzberger company and the
Cudahy Packing company-slaugh
tered in the year 1903 about 45 per
cent OF the total indicated slaughter in
the United States; that the average
net profit in 1908 for three of the COM
panies was SO cents per head: that
the year 1902, instead of being one OF
exorbitant profits, was less profitable
than usual; that during the months
when prices of beef were the highest
some at least of the leading packing
houses were actually losing money on
every head slaughtered. The changes
in the margin between prices of cattle
and beef are in themselves no indica-
tion whatever of the change in profits,
says the report. Prices and conditions
for the years 1902, 1903 and 1904 are
reviewed and the conclusions are
stated that the six companies espe-
cially discussed are apparently not
oVercapitaliZed, the percentage of
profit on the gross volume of business
is comparatively small and that during
the years 1902, 1903 and 1904 Swift &
Co.'S profits have not exceeded per
cent on the total sales; Cudahy & Co.'s
is stated at Is for 1904 and 2.3 per
cent for 1902.
Private Car Lines Profitable.
With reference to private car lines
In the packing industry it is stated
that the profit is a very liberal one,
net return of from Ii to II 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 to the con-
sumer. The profit of one concern, the
Cudahy Packing company, on it's in
yestment in cars was as high as %
per cent in one year. Further, 1t is
stated that the six principal packing
concerns, while they slaughtered but
45 per cent of the cattle killed in 1903,
they slaughtered nearly 98 per cent of
the cattle killed in eight leading West
ern packing centers; that they control
very large percentage of the trade in
beef, particularly in the East, and
they furnish New York about rs per
cent, Boston more than IS per cent,
Philadelphia about so per cent, Pitts
burg more than 60 and Baltimore
about so per cent.
In conclusion the report says that
the National Packing company, men
toned above as one of the big six"
is a merger of various packing plants
and is controlled by Armour, Swift
and Morris interests, who constitute
its board of directors. Except for the
National Packing company, however,
there appears to be practically no gen.
eral interownership of stock among the
six principal companies.