The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1905-03-03
"BIG SIX" RULES
: PACKING CENTERS
Large Cities of the United States
Shown to Be in Packers
Grip.
PRIVATE CAR LINES
YIELD BIG PROFITS
Average Net Profit Of Three
Packers in a. Year SO
Per Cent.

Per Cent.
Washington, March 3.-President
Roosevelt to Jay transmitted. to con-
gross the report Of the COMMISSIONER
submitted in compliance with the rcso-
luton Of the house of representatives,
adopted March I, 1904. The presl-
dent letter Of transmittal is as fol
lows:
1 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 ana
profits Of the corporations engaged in the
beef-packing industry.
In view Of the fact that the department
of justice is now engaged upon other
matters involved In the resolution. the
secretary of commerce and labor cannot
at this time report thereupon.
What Garfield Finds.
The report of the commissioner of
corporations is to the effect that SIX
packing ompanies-Armour & Co.,
Swift & Co., Morris & Co., the National
Packing company, the Schwarzchild Il
Sulzberger company and the Cudahy
Packing company-slaughtere in the
year 1908 about As per cent of the total
indicated slaughter in the United
1903 for three of the companies was
90 cents a head; that the year 1902,
instead of being one of exorbitant prof
its, was less profitable than usual that
during the months when prices Of beef
, were the highest. some, at least, OF the:
leading packing companies were actual
ly losing money on every head slaugh-
tered.
The changes in the margin between
prices Of cattle and beef are in them
selves no indication 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 especially discussed are APP
percentage of profit on the gross vol
ume Of business is comparatively small
and that during the years 1902, 1908
and 1904 Swift & Co.'S profits have not
exceeded per cent Of the total sales;
Cudahy & Cos is stated at 1.8 pei
cent for 1904 and 2.3 per cent for 1902
Liberal Profits Made.
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 Il to II per cent
being indicated; but it is added that
reckoned on the basis Of dressed bee:
transported, the profit would add bu
little to the cost of beef to the con
sumer.
The profit Of one concern, the Cudah,
Packing company, on it's investment il
cars, was as high as % per cent in on
Further, it stated that the six prin
cipal packing concerns, while the,
slaughtered but As per cent of tn
total cattle killed in 1903, slaughtere
nearly SO per cent Of the cattle kille'
in eight leading western packing cen
ters; that they control a very larg
percentage of the trade in beef, par
ticularly in the east, and that they fu1
nish New York about IS per cent, Bos
ton more than S5 per cent, Philadelphi
about 60 per cent, Pittsburg more tina
60 and Baltimore about so per cent.
The report says that the Nationa
Packing company mentioned as one o
the "Big Six,' is a merger of var
Gus packing plants, but except for tina
concern there. appears to be no genera
inter-ownership of stock among the 81
principal companies.
Summary Of Report.
A summary Of the report follows:
That SIX packing companies-Armou
& Co., Swift & Co., Morris & Co., Th
schWarzseh fa'& gzb epmRae eompa tn
and the Cudahy Packing Company, fl,
quently designated in the trade as eth
. Big Six ''-sIaug in the year 100
1921 ,697 head of cattle out Of tot;
indicated slaughter in the United State
of 1880 900 head, or about As per cen
hot fhn t,t,,n or rNf& f/
three companies-the Armour, Swift
and Schwarschild & Sulzsberger-ft
the twelve months ending June 80, 100
as shown by their actual book-keepin
records, was 80 cents head not inclu
ing incidental profits mentioned below
Packers Lost Money.
That the year 1902, instead Of beir
one Of exorbitant profits as has bee
commonly supposed, was less profitab
than usual. During the months whe
least, of the leading packers were act
ally losing money on every head of co
tie slaughtered.
That the changes in the margin b
tween the prices Of cattle and the pri
Of beef are in themselves no Indicate
whatever of the changes in the prof
of the beef business.
That the margin between the pri
of cattle and the price of beef duri1
the year 1908, instead of being unusus
ly high, as popularity supposed, was f
each half Of the year lower than tt
margin for any corresponding half ye
since 1898, and that the increase in tt
margin for the second half of 49,
over the first half was no greater thu
the similar change in other years.
average margin, covering total KILN,
of cattle by most Of the packing hous
in five leading western markets al
sales Of beef at twentyfour cities ha
80 naa4;a.aa a.. o. pana Oh na1......