The evening times. [volume] (Grand Forks, N.D.) 1906-1914, 1912-01-11
Witness Got Down to Bee
Rock in Trial of Indicted
Packers
COST SYSTEM REDUCED TO
EXACT SCIENCE BY PACKERS
Every Item Of Expense Was Charged
Against the Carcass While 1t Was
Credited With Every By-Product
Produced by Any Process.

Chicago. Jan. 11-Henry Meyer, the
expert accountant in charge of figur-
ing the test cost Of slaughtered ami
mails for Armour and company, re-
sumed the witness stand today as the
sixth witness for the government in
the trial Of the ten Chicago packers.
District Attorney Wilkerson continued
his direct examination of the witness.
Meyer produced a bundle Of print
60 forms which he said were used in
hguring the test cost of cattle at the
armour company's office. Attorney
Wilkerson questioned him closely re-
garding the use made of each sheet.
Meyer explained in detail the meth
ods employed in figuring the test cost
carcasses. beginning with the killing
charge OF $2.75 per head.
He then enumerated the credit al.
iowance deducted for by-products. He
said the different credits for by-pro-
ducts were figured in the '.memoran.
dunn" or red" cost and last" or
test" cost.
The cattle. he said, were divided in
to lots and designated by the namo
OF the company's buyer who purchased
them.
THE weight of each animal and the
purchase price are then entered on
what is called the purchase sheet, ;
said the witness.
An arbitrary charge for the slaugh-
tering and dressing of each carcass is
made and a credit given for the but
ter fat, hides. hoofs, tallow and 9TH
er by-products.
| These figures are left on loose
sheets and are not entered in books,
preserved for six months. when they
are destroyed. From these sheets the
average test cost of each lot of cattle
is obtained every week."
The average test cost of cattle az
compiled weekly was given to r. E,
White. head of ,the dressed beef de-
partment wherever he asked for it,
Mr.. Meyer said.
| How often does Mr.. White ask fol-
this average test cnst?" 4a
sometimes every week and some
times once month";" replied the wit.
ness.
He said the margins were figured In
the invoice department and were kept
on loose sheets similar to the test
cost records and a weekly summary
showing the average margin was COM
piled for each territory. No copies OF
these margin summaries were made,
the witness declared.
| Meyer said there were two meth
DDS Of figuring the cost. 1t was called
the memorandum" or red" cost and
the other was last" or test cost
He said the credits for by-products in
| the 'memorandum" or red" coat
were different from those used in the
final test" cost.
The witness said that twenty-five
years ago Armour and company's
charge per head for killing was 81.
A few years later it was increased to
$3.50. Then it went to So the witness
road strike in 1894 the killing charge
rose to $3.50. When the strike was
over the charge was reduced to $2.75
and has continued at that figure until
now.
The witness said that all instruc-
tions in regard to items considered in
figuring the test cost wore given him
suance of Judge Grosscup's injunc-
ton In 1902.
What credit did you allow for caul
and ruffled fats in figuring the test
cost in 1902"
MY recollection is 1t was $3.15 per
hundred pounds" replied the witness
IA year later it was reduced to SO a
hundred pounds and has remained at
that figure ever since"
What credit was allowed for hides
in the same period?"
| II do not remember the exact fig
ure but It has been the same for the
last three years"
'ls it not true that for time nc
allowance was made for hides?"
''Yes, during the panic of 1907 there
was no demand for hides and no cred.
it allowance was made. The packers
had a quarter of million hides stored
in their plants"
The direct examination of the wit
ness had not been concluded when
court adjourned for the day.