Arizona republican., 1916-07-08
Invest g alton of the Packing Industry

Investigation of the Packing Industry
The Borland resolution for an investigation of the
packing industry, the consideration of which is
now in progress in Washington preciptated by
the marketing committee of the American National
Live Stock Association under instructions from the
E. Paso convention the association, Complaint
for long time been made of the unsatisfactory
condition of the industry of the apparent
want of relation between the prices charged by the
great packers and the prices paid by them
cattle Tables compiled and covering 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 essentially
changed, profits shown: 1t appeared therefore
that the law of supply and demand had ceased to be
operative that the fate of the live stock business de-
pended upon the caprice of the packers, most un-
certain and unsatisfactory foundation for any in
dustry.
Though the beef trust had been apparently dis
solved years ago, apparent that under
standing just affectual and harmful had taken
its place. Prices of meats in various parts of the
country appeared to be fixed without regard to the
supply and the prices paid by the packers for cattle
without any relation to the demand
1t observed and shown that the price for
cattle in any market dominated by one of the large
packers adjusted nicely to the price paid by any
of the packers in of the cities dominated by them
Thus the price offered by of them in Denver
exactly the the price that would be paid by
any of the large packers other city, less the
freight from Denver that city There evidence
showing that if of cattle offered for sale at
center, Denver, and that if the shipper was
dissatisfied with the market there and shipped the
another point Kansas City Chicago. all the apex
those cities apprsed that the
equal to what he had been offered Denver plus
figure covering the amount his freight Denver
to that point.
From the the packers have resisted the
Borand resolution, or any other inquiry their
methods. Their objections TO it unsound and
lacking in good faith their statements to the
profits of their business presented at the meeting in
Washington Thursday, are unsatisfactory.
For instance when a representative of packing
stated profit per head for Strengthening
cattle s119 could be believed that if that
the profit in any year. that would measure
the profit another year when meats higher and
the prices of live stock lower.
We do think that the plea of the packers that
inquiry would be "humiating" to them should
be given much weight. Only the result could be
'humiating" If it should be shown that their
methods are clean. the inquiry would be indicating
and live stock growers and and consumers
would have for complaint.
Though this inquiry has been suggested by the
live stock for their protection they have
desired that shall also become the bene
ficares of it. They have expected that a result
the investigation would give them all the differ
between the prices they receive for their
and the prices the pay for meats
Uhat is they do contend that the price
of cattle shall be based the price of meats),
but that consumers be protected against the
extortons of the packers that they themselves may
receive a just from their stock based an
equitable price for meats leaving the packers only
equitable profit.