The Hartford herald. [volume] (Hartford, Ky.) 1875-1926, 1913-09-10
Ranchman Got $40; Con-
sumner Paid 500.
JUST WHAT COMES IN BETWEEN
Posted Writer Throws Some
Light On Very Import
ant Matter.
WHERE HIGH PRICES COME IN

If you must know, give heed
now! It's like lesson in arithme-
tic.
A ranchman sold steer for
$19.25. When killed and cut Up
the edible parts of the steer brought
ceived $19.25 and the consumer
paid 1921. Somewhere between
the two $79.96 of the consumers
money disappeared. Who got it?
The chuck of the steer alone
brought within as cents of the price
that the ranchman received for the
whole steer. The loin at retail
prices would almost pay for it and
the flank would more than pay for
| it.
Nor is that all, for the packer, in
addition to what he sold to this re-
taller. disposed of the unedible por-
lions of the carcass for $3.50, or
25 cents more than he paid for the
steer. He had paid for the steer,
therefore. before he sold a pound of
meat, and the grand total received
for the animal, quoting the retailers
prices for so much of it as passed
through the retailers hands, was
$11S.71, or $99.46 more than the
ranchman received.
Somewhere between the producer
and the ultimate purchase practi-
cally 500 disappeared. That would
seem to give color to the stories of
the exorbtant profits of the middle
men. 1t is what some of us have
surmised all along-that most of
our money is side-tracked on its
way to the producer. That's all
right, of course, if the men who get
it render adequate and necessary |
service. That point may be passed |
over now, however, the idea being |
first to see where the money goes. |
The packers are not given to unnec-
essary handling, but there may be
some along the road somewhere.
This particular steer was follow
ed from the field almost to the ia
BILE by writer for the Country Gen
tlemen. and the figures assume es-
pecial importance because Armour |
e. Co. put the stamp of their approx
al on them and declare them to be !
correct They come. therefore. as
officials the Armour explanation |
of where the money goes in the
matter of beef.
They not only follow the steer
from the field to the consdm err. but
they also follow the consumers
money from his pocket back to the
farmer. showing just what is alb
stracted along the line and for what
reason.
The consumer. speaking collec-
lively, for many consumers were in
volved in this transaction. paid the
retailer 1921 for the meat from
this steer. The retailer paid $72.9S
for the same meat, buying direct
from the packer and thus cutting
off any intermediary profits. There
profit of $26.2S right there, but the
retailer charged up $20.73 against
this as the cost of doing business.
leaving a profit for himself of only
$5.45. Moreover, he says this is no
guess work. the percentage of cost
of doing business having been care
fully worked out. so that he knows
exactly what to charge up for it. He
says further that trife more than
half of this cost of doing business
say about Sill in this case-is cost
of delivery. There is something de-
cidedly significant in that, In view
of the frequent assertions that 1t is
the service we require that is put
ting up the cost of living. The price
of that service has to be added to
the cost of the goods.
More than so per cent. of the
cost of doing business charged up
to the cost of delivery.
or course II is not so great in
some other lines of business, but
perhaps We think the articles them
selves have increased in value when
IL is only the added cost of the ever
increasing service that We demand
However. $26.2s of the consum.
ers money fingers in the retailers
hands. and $72.s3 of it goes to the
packer. To this the packer adds
$3.50 that he received for the by
products, making the total received
by him $s2.43. The steer cost him
$685., being bought from a feeder
that is. a man who makes a bus