The Coconino sun. (Flagstaff, Ariz.) 1898-1978, 1916-07-14
THE MEAT SITUATION
As II REALLY EXISTS

NeSIlSdtloH VI tic Ceht-pnSnlhS III
dustry, the consideration of which is !
now in progress in Washington, was
precipitated by the marketing of the
American National Live Stock Asso-
citation under instructions from the FL
Paso convention of the association.
Complaint had for long time been
made of the unsatisfactory condition
Of the live stock industry, of the ap-
parent want of relation between the
prices charged by the great packers
for meats snd the prices paid by them
for cattle. Tables compiled and COW
ering several years showed that in
majority of the years the business of
live stock growers had been conducted
at loss, while in other years when
prices of meats were no higher and
other conditions were ESSENTIALLY un-
changed, profits were shown. 1t ap-
peared therefore that the law of sup
uly and demand had ceased to be
operative, that the fate of the live
stock business depended upon the cap
rice of the packers, most uncertain
and unsatisfactory foundation for any
industry.
Though the beef trust had been ap-
parently dissolved four years ago, it
was apparent that an understanding
just as effectual and as harmful had
taken its place. Prices of meats in
various parts of the country appeared
to be fixed without regard to the sup
ply and the prices paid by the pack
ers for cattle were without and rela-
tion to the demand.
1t was observed and shown that the
price for cattle in any market domi-
mated by one Of the large packers
was adjusted nicely to the price paid
by any of the packers in any of the
cities dominated by them. Thus the
price offered by one of them in Den
yer was exactly the same as the price
that would be paid by any of the
large packers at any other city, less
the freight from Denver to that city.
There was evidence showing that if a
car of cattle was offered for sale as
one center, say Denver, and that if
the shipper was dissatisfied with the
market there and shipped the car to
! another point, Kansas City or Chica-
go, all the packers at those cities
were apprised that the car was en-
route. On its arrival the shipper was
offered price equal to what he had
been offered at Denver plus figure
covering the amount of his freight
from Denver to that point.
From the outset the packers have
resisted the Borland resolution, or
any other inquiry into their methods.
Their objections to it are as unsound
and as lacking in good faith as their
statements as to the profits of their
business, presented at the meeting in
Washington on Thursday, are unsatis-
factory.
For instance, when representative
of one packing house stated that its
profit per head for slaughtering cattle
was $1.19, it could not be believed
that if that was the profit in any one
year, that would measure the profit
another year when meats were higher
and the prices of live stock were low
/ er.
We don't think that the plea Of the
packers that mere inquiry would be
"humilating" to them, should be given
much weight. Only the result could
be "humilating." If it should be
shown that their methods are clean,
the inquiry would be vindicating and
/ live stock growers and consumers
would have no cause for complaint
Though this inquiry has been sug-
.gested by the live stock men for their
own protection they have desired that
the consumers shall also become the
heneficiaries of it. They have not
expected that result of the investi-
cation would give to them all the diff
ference between the prices they now
receive for their cattle and the prices
the consumers pay for meats (that is,
they do not contend that the price of
cattle shall be based on the price of
meats), but that consumers may be
protected against the extortions of
the packers, that they themselves may
receive just return from their stock,
based on an equitable price for meats
leaving to the packers only an equit-
able profit.-Arizona Republican.
The Wise Fool