The sun. [volume] (New York [N.Y.]) 1833-1916, 1910-04-04
TEE PRICE OF REEF.

and the Cattle Raiserl Association OF
Texas. In his testimony before the Sen
ate committee engaged In investigating
the cost Of living Judge CowAn expressed
his conviction that high prices for beef
are here 70 stay. and gave various reasons
for his belief Nevertheless there will
doubtless still BE- many Of Arm faith that
II the so-cAlled beef trust could be enec-
lively busted the price 81 meat on the
block would speedily drop IN its former
level. The known facts Of the case sup
port Mr.. Cowan. and the notion ~ widely
prevailing rests almost entirely on ignO-
rance or disregard Of conditions now exist
ing and those Of probable existence In
the days to come.
The system under which cattle are
raised for the market has been In process
OF rapid change for more than a quarter
OF a century. The farms are crowding
the ranges out Of existence and farm cat
tie cost more than range cattle. A dozen
years ago the price Of high grade steers
-on the hOOf" was IS so a hundred pounds.
The present price Is about 80. That
~. a 1900 pound steer worth $50 in lsDs
Is " orth about tiO2 to-day. IL is doubtful
u the cattle grower makes any more
money on his cattle at the present price
than he made on his stock at the prices
OF lsSs His land Is worth more. he must
pay higher wages 10 his herders and hands.
and the corn On which his beasts are fat
tened Is worth 20 cents n bushel in COM
parison with the % cents Of twelve years
ago. The increase In price OF cattle
on tho hoof represents little IL anything
has h. s,-,- -. -.
duction. This holds whether the cattle
are high grade beasts worth - or % a
hundred pounds or COWS worth several
dollars loss. The probability OF a return
to - cent corn IL remote. and decline in
land values and wages is now almost
incOnceivable.
II tho higher price Of cattle meant
larger profits for the raizers an increase
in the herds might be regarded a. a Ger
tainty. Present prices may induce some
herd increase. hut a price decline which
would presumably follow such increase
would result in quick reduction Of supply
and return of higher prices. Cheaper
corn would tend To increase the number
of cattle n the price OF cattle on tho hOOf
remained at its present level. but a decline
in cattle prices corresponding O. the
decline in corn prices would remove the
only inducement Ia increase the herd
In the probable future prices Of cattle
on the hoof there Is no promise whatever
Of cheaper beef on the block.
In any consideration involving quota
ton % prices on cattle or beef generaliza-
tiOn Is unavoidable. Quotations may vary
from day to day. and prices are based ON
grades and affected by large number 81
direct and indirect influences. Tedious
in a wilderness 81 statistics re-
vsals little that il concrete Their. Is no
clear evidence - any fixed or general
relation % cattle prices and beef carcass
prices. There is, however. nowhere either
proof or fair indication uf extortionats
charges for sides or quarters Judge
Cowan quotes a steer valued at SsS. the
carcass product of which the packer sold
% the butcher for So ~ Records cover
ing "A number % years show at times car
Ja-= sales az a small advance over cattle
cost. and at times such sales az 49, much
aS nearly $50 below cattle cost The pack
srs profits are. according 70 officially
gathered statistics. far from excessive
Or unreasonable. They appear To come
rather from hy-products than from beef /.
For instance the hide bought with the AMI /
NAL al : ar cents a pound may have a 1
market value 81 ~ OF ~ cents
The profits IT the siaughterinR industry I
AN only b. considered collectively. and
hey ar. evidently the result ~ a vast
amount II business rather than % a " ide
margin on dressed bsacf In fact IL may
- questioned whether on the average
4 a term % years sides and quarters
you'd show any profit at all An official
made a few wears ago shows the .
payment q SIsI .O0n1O for more than /
Or 0o head II cattle AMI the receipt - 1
IL, .sO pO from the beef product. which /
% p.r cent 81 the weight 81 \
he. animals GA th.. hoof The value Of /
d" hy-product- was So O'O.0o. The cost
4 killing was about g. NJ .uOp. thus leav-
ng profit u about 81 ?to n1O. or about
- cents y head This il probably below
he actual margin - profit on all the cattls.
IN the country. hut while
hese figure have b~en questioned there
la- come neither proof nor acceptable
~ their iuaCc,Irary. The dissolu-
ION ~ m" beef trust might carry out the
lerrr- u the sherman act. but there IL no
eason 20 believe that the dissolution ~ the
onc"rn would r.duca the price ~ hsaf
The NEXT and final stage IL the di-tri-
,ution ~ th" dreSs'-h beef. whether bought
rom wholesale packers or killed 10y the
peal butcher. This - chiefly a matter ~
grades and averages. The carcass. &C.
ording u it's quality and actual meat con-
ent. may have cost ~ cents a pound or IA
ents. The retailer gets his profit from his
verage for his different cuts. loin cuts.
teaks. rnasts. &c. down To an actual
Easta &c. Judge CowAn estimates the
ross profit 81 the retailer. out 81 which
must come the cost Of doing business. at
bout IS per cent. After an Investigation
n fifty different cities Secretary Wilson
eported this gross profit a. averaging -
er cent. The net profit does not appear
o he excessive.
The evidence in the case points to a
onclusion that the advance in the price
{ beef has.been legitimate. that there il
either robbery nor extortion in the vari-
Us PROGRESSES by which an animal In the
cid IL converted into food for the table.
I