Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1906-07-18
IH[ MEAT INDUSTRY
Prices Have Gone Higher in
Spite of Reduced Amount of
the Experts
WILSON EXPLAINS THE REASON
Apparent Reduction Not So Great
When the Facts Are Disclosed-Ab
normal Exports Of Last June Due to
the Japanese War-lnspccton to Aid
Foreign Trade.


Foreign Trade.
Washington. July 1s--'1'he situation
of the American meat industry pre-
sents a curious and interesting ano-
maly just now Exports of the Ameri-
can meat products are falling Off at
rate which would be positively alarm
ing but for the fact that prices OF Am
erican livestock are getting up toward
record breaking heights.
On the very day that statistics were
made public showing a startling de-
crease IN meat exports, hogs In Ch1-
cago touched the 81 mark-the highest
of the year-and steers in that markes
sold at $3.50 On the same day sheec
were up to 81, and spring lambs to
$3.50 There is no epidemic Of cholera.
Receipts at the big livestock markets
have been excellent. The crop is good,
and prices are now at the bonanza lev
ell Yet the foreign demand has drop
ped almost to the vanishing point as to
certain classes of products; and the
explanation has been eagerly sought.
The apparent anomaly is easily ex-
planned away. according to the statis-
ticians Of the government. In June
the exports OF canned beef fell over so
per cent. from 1913, 1873 to s291.774. Elk
ports of hams fell from $t,S54-O0O to
1856, O00 pork products from $941,-
900 to SSH, G00: lard from $3,95600O to
S3.915,OOO; all comparisons being with
June of 1905.
Much has been made of these figures.
but explanation of them really indt-
Gates that they have small significance.
In June, 1905, Japan was getting
great quantity of our meat products,
ordered for war uses. That demand
fell off when the war ended. In May,
1906. we sent only one-fifth as much
canned beef to Japan as in May, 1905.
Feared German Retaliation.
Our meat trade with Germany has
been in an unnatural condition for
much of a year because Of the threats
made the latter part of last year Of
German tariff retaliation against the
United States. Anticipating that the
duties on American meats would pres
emily be raised to q prohibtive point,
Germans imported immense quantities.
The Netherlands and Belgium were
even more affected by the threatened
German tariff change than was, Ger
many itself, for a curious complica-
ton of reasons, and they became pur-
chasers of even greater increases than
Germany. Then 1t came about that
the increase in the German tariff was
not put into effect. The Germans had
been stocking up on American meats,
and had to unload them. The process
of unloading was tremendous eldver-
tisement to the products. People dis
covered that they rather liked the
heretofore more-or-less despised Am-
erican meats; and the demand for
them rose to a record -lbreal1ing point.
Thus in May. 1906, we sent Germany
nearly twice as much canned beef as
in May, 1905, and almost four times as
much cured beef, and almost twice as
much bacon, and four times as much
hams May was the last month of
trade before the influence of the pack
ing house disclosures began to have
their effect.
In short, the American meat ir dus.
try was having tremendous and un-
precedented boom when the meat dis
closures came on. There has been a
small reduction in exports. Yet all the
pressure of this condition and of what
ever domestic effect the scandals may
have had, together with the undoubted
Willingness of the packers to make the
affair look like calamity to the meat
growers, have failed to find reflection
in the price of livestock. Instead, live
stock prices are now breaking records
Further Slump Expected.
1t is said that more foreign orders
have been cancelled for coming
months, and that during the remainder
of the year the decrease in exports will
be still more striking. This is likely
true; yet the packers, who know more
about it than anybody else are pay
ing 81 for hogs and almost as much
for steers. whose carcasses will have
to be sold in these coming months of
depression IF the packers are as
good business men as they are COM
monty supposed to be-" said one gov
eminent statistician they would not
pay fancy prices for live stock today,
in order to get the privilege of selling
it in a depressed market some months
hence, would they?'
The impression entertained by Sec
rotary Wilson is Endorsed by the sta
tisticians who have studied the world
market for meats lately. Never has
there been more earnest effort to de-
duce safe conclusions than has lately
been made in this study of the meat
condition. Secretary Wilson, the sta
tistician and the packers are in COM
plete agreement; they all insist that
the injurious effect of the packing
house disclosures on the meat trade
will be momentary and insignificant
and that it will be followed by another
boom in foreign trade.
True, the packers do not say these
things for publication. They express
confidence that the meat industry has
suffered a severe and lasting blight.
But their works. as the statistio.iaE
points out do not bear out their words
If they were expecting business and
prices to fall off rapidly in the next
few months, would they be paying rec
ord prices for meats that must be sold
in the midst of this period of lower
prices? That is the argument that the
statisticians regard as conclusive.
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