Audubon Republican. [volume] (Audubon, Iowa) 1894-1925, 1905-03-09
|B|G PACKERS
NOT So BLACK
The Corporations Commits
sloner Reports in Their
Favor.
SAYS PROFITS ARE NOMINAL
Year 1902 Was Not One Of Exorbi.
tant Profits, He Says-Finds Firms
Not Overcapitalixed and Profits On
Gross Volume Of Business Small

MOT correspondence ana FroritS On
Gross Volume Of Business Small
Washington, March president
Roosevelt yesterday transmitted to
congress the report Of the commits
sioner of corporations upon the beef
industry submitted in compliance with
the resolution Of the house OF repre-
sentatives adopted March Z. 1904. The
presidents letter of transmittal is as
follows:
ITO the Senate and House of Repre-.
sentatives:
II transmit herewith report from
the secretary of commerce and labor
upon that portion of the resolution OF
the house of representatives, adopted
March Z, 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
packing industry.
I'm 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
labor cannot at this time report there.
upon. (Signed)
THEODORE ROOSEVELT.
white House, March 3, 1905"
A summary of the report follows:
That six packing companies-Ar-
mour e Co., Swift & Co., Morris &
Co., the National Packing company,
the Schwarzschild & Sulzberger com.
pany, and the Cudahy Packing com.
pany, frequently designated in the
trade as "The Big Six"-slaughtered
in the year 1908, 5,521,679 head of
cattle out Of a total indicated slaught.
er in the United States Of 12,500,000
head, or about 45 per cent.
That the true average net profit for
three ompanies-Armour, Swift and
Schwarzchild & Sulzberger-for the
twelve months ending June 80, 1908,
as shown by their actual bookkeeping
records, was 80 cents per head not in
Guiding incidental profits mentioned
below.
That the year 1902, instead of be-
ing one of exorbitant profits, as has
been commonly supposed. was less
profitable than usual The report
says, in fact, that during the months
when prices of beef were the highegt,
some, at least, of the leading packers
were actually losing money on every
head of cattle slaughtered. That the
changes in the margin between the
prices of cattle and the prices OF
beef are in themselves no indication
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 unusu-
ally high, as popularity supposed, was
for each half of that year lower than
the margin for any corresponding 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, covering total
killings of cattle by most of the pack
ing houses in five leading western
market and sales of beef at twenty
four cities having a total population
per hundred-weight from January to
June, 1902; $3.50 for July to Deem
Der, 1902; $2.14 for January to June,
1908; S241 for the second half of
1903; and S2.33 for the first half OF
1904.
That conditions in 1902 were alb.
normal, and that cattle prices for
1908 and 1904 cannot fairly be com.
pared with that year. The great pros.
perity Of the country from 1899 to
1902 apparently led to considerable
increase in the per capita consumption
of beef. The practical failure of the
corn crop of 1901 induced many cat
tie feeders to send their stock to mar
ket in poor condition, thus reducing
the average weight per head, and the
average percentage Of dressed beef
TO live weight AS a result, while the
total number of cattle slaughtered at
FIVE leading western packing centers
during the first half of 1902 decreas-
ed only about per cent as compared
with the first half of 1901, the total
liveweight of the cattle slaughtered
is computed to have decreased Az
per cent and the computed dressed
weight decreased considerably more.
With reference to private car lines
in the packing industry, 1t Is stated
that the profit is very liberal one, a
net return of from IA to II per cent
being indicated, but it is added that
reckoned on the basis of dressed beef
exported, the profit would add but lit
tie to the cost of beef to the consum-
er. The profit of one concern, Cuda-
ny, packing on investment on cars
was as high as % per cent in one
year. Further it stated that the six
principal packing concerns, while they
slaughtered but As per cent of the to-
tai killed in 1908, they slaughtered
nearly SO per cent of the cattle kill.
ed in eight leading western packing
centers; that they control large
percentage Of the trade in beef, par.
ticularly in the east, and that they
furnish New York about rs per cent,
Boston more than So per cent. Phila-
delphia about 60 per cent, Pittsburg
more than go per cent, and Baltimore
about so per cent.
The report in conclusion says that
the National Packing company. men,
toned as one of the big Six" is a
merger of various packing plants,
but except for that concern there APP
pears to be no general ownership of
stock among the six principal COM
panies.
MORE iRooUols INDICTMENTS.