Fergus County argus. [volume] (Lewistown, Mont.) 1886-1946, 1905-03-08

time, were attributable wholly to those
abnormal cattle prices"
That in 1903, the price OF cattle
fell very sharply, chiefly because OF
a large increase in the supply. The
number of the cattle killed in five
leading western markets during the
first half of 1903 was more than Is
per cent greater than during the first
half of 1902, and on account Of the
increased size of cattle the quantity
Of beef produced increased 2 per cent.
The change in the margins between
the cattle and of beef are in them
selves no indication whatever of the
change in profits, says the report.
Price conditions for the years 1902,
1903 and 1904 are reviewed and in the
conclusions are stated that the six
companies especially discussed are
apparently not over capitalized; that
the per centage 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 2 per cent of the
total sales. Cudahy & Co. are stated
at 1.S per cent for 1904, and 2.3 per
cent for 1903.
with reference to the private car
lines in the packing industry it 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 transported the profit
h1,f tn tho oe
beef to the consumer.
The profit Of one concern, the Cud.
ahy Packing company, on it's invest.
ment in cars was as high as 20 per
cent in the year. Further, it is stat
ed that the principal packing concerns
while they slaughtered but As per cent
of the cattle killed in 1903, they
slaughtered nearly SO per cent of the
cattle killed in eight leading western
packing centers. That they control
a very large per centage of the trade
in beef, particularly in the east and
that they furnish New York about Is
per cent, Boston more than IS per
cent, Philadelphia about 60 per cent,
Pittsburg more than 60 and Baltimore
so per cent.
1t was found that for the year from
July, 1908, to June, 1904, the book
keeping profits of the three companies
named, for the same plants as were
covered by the detailed computations,
in each case somewhat exceeded the
computed profits.
The greatest difference was 80
cents per head. The weighted average
of the bookkeeping profits of the three
companies for the IL months named
was 80 cents per head, or II cents
higher than the computed profits.
In addition to the average profits
just indicated are the further profits
arising from elaboration of bi.pro-
ducts which, as already stated, may
together add not more than SO cents
per head to the average profits of 80
cents just given. The additional pro.
fit derived from minor bi-products is
over and above their value as raw ma
terial, which is already included in
the profits of the beef business. The
great packing establishments have nu.
merous auxiliary departments, some
of which are virtually distinct indus
tries, not strictly belonging to the
packing business.
The profit on private refrigerator
cars is that derived froul the mileage
paid by the railroads, which, roughly
speaking, averages slightly more than
three-fourths of cent per mile for
every mile travelled by refrigerator
cars, whether loaded or empty. The
average distance to which beef is
transported from the packing house
before consumption does not exceed
500 miles. The gross mileage receiv
ed by the owner of the refrigerator
car would therefore be roughly ST.
per round trip. Estimating that a
car of dressed beef weighs not less
than 10000 pounds, the gross mileage
receipts would not exceed six cents pei
100 pounds of beef OF these gross
mileage receipts fully one-third is alb
sorbed in the cost of maintaining
equipment, including all allowance fol
depreciation, this leaving not more
than four cents per 100 pounds o.
dressed beef as the net return derived
from the ownership of private car:
handling that product. This is equiv
alent to 25 cents per head of cattle.
The statistics of margins between
prices Of cattle and prices of bee
| SIuCc 1870 arc ouOWu Ol luc UdSIo "
the live cost of all cattle at fou
plants in different packing centers
as compared with the average prize
of beef sold by a leading packer il
nine important cities.
On this point the report says:
THE average margin for the who'll
period from January, 1898, to June
1904, was 1852; the lowest margil
was in the first half of 1903, namely
1921, and the highest margin was il
the last half of 1908. The year 1905
instead of being characterized by uu
usually high margins, had, in fact
the lowest average margin for tn
whole period for which l, reliable rec
ord is Obtainable. 1t cannot be en-
phasized too strongly that changes il
the margin between prices of cattl
and prices of beef are of little valu
as basis for judging the margin G
profits. This may readily be apprt
ciated from the mere fact that on tn
average only 54 to 81 per cent of tn
live weight of cattle is retained
dressed beef"
/ Tho ro~or% ~, ooU ol,,s1o- eo1,e