Decorah public opinion. (Decorah, Winneshiek County [Iowa]) 1895-1928, 1905-03-08
THAT BEEF TRUST REPORT.

| Liz preSlueuG Oh lHurSuay CrauS-
mitted to congress the report of Com
missioner of Corporations Garfield up
on the beef industry, submitted in
compliance with resolution of the
house of representatives, adopted
March Z, 1904.
A summary of the report. in part,
is to the effect that six packing COM
panies, Armour & Co., Swift g. Co. +,
Morris & Co., the National Packing
Co., Schwarszchild & Sulzberger Co. d,
and the Cudahy Packing Co.. fre-
quently designated as the "big sin, -
slaughtered in the year 1903, 5,521, ,697
head Of cattle out of a total slaughter
in the United States of 12, 500, 900 head,
or about As per cent.
That the true average net profit for
three companies, Armour, Swift and
Schwarzschild & Sulzberger, for the
twelve months ending June 80, 1908,
as shown by their actual bookkeeping
records, was 80 per cent per head, not
including incidental profits.
That the year 1902, instead of being
one OF exorbitant profits, as has been
commonly supposed, was less profitable
than usual. During the months when
prices of beef were the highest, some
of the leading packers actually lost
money on every head of cattle slaugh-
tered.
That changes in the margin between
the prices of cattle and the prices of
beef are in themselves no indication
whatever of changes in the profits of
the beef businesses.
That the margin between the price
of cattle and the price of beef during
the year 1908 instead of being unusual
ly high, as popularity supposed, was
for each half of that year lower than
the margin for any corresponding half
year since 1898; that the increase in
the margin for the second half of 1903
over the first half was no greater than
the similar change in other years.
In this connection the report says
"In the face of strong demand, the
price of cattle was forced to the high
est level ever known. The high
prices of beef, which caused so much
complaint, were attributable wholly
to the abnormal cattle prices. -
That in 1908 the price of cattle fell
very sharply, chiefly because of the
large increase in supply.
That the six leading packing COM
panies, especially discussed, are ap-
parently not ver-capitalized.
That the percentage of profit on the
gross volume of business, including
hog and sheep products and other
minor commodities, is comparatively
small.
The statement that the six large con-
Germs mentioned slaughtered in 1908,
only about 45 per cent of the total
cattle killed in that year indicates
very clearly the existence of active
competition by other concerns at least
in many places. This is chiefly ex-
planned by the operations of large
number of small slaughtering estab-
lishmen.
Prices and conditions for the years
1902-3-4 are reviewed and the conclu-
sion is reached that the percentage of
profits ON the gross volume of business
is comparatively small and that during
these years Swift & Co. IS profits have
not exceeded per cent of the total
sales. Cudahy & Co. s is stated at
l.S per cent for 1904 and 2.3 per cent
for 1902.
With reference to the private car
lines in the packing industry, it is
stated the profit is very liberal one,
net return of from IA to II per cent
being indicated, but it is added,
reckoned ON the basis of dressed beef
transported, the profit would add but
little to the cost of beef to the con-
sumner. The profit of one concern, the
Cudahy Packing Co. ,on its investment
in cars. was as high as 32 per cent in
one year.
The report in conclusion says the
National Packing company, mentioned
as one of the "Big Six" is merger
of the various packing plants, but ex-
cept for that concern there appears to
be no general inter-ownership of stock
among the six principal companies.