The Cordele dispatch. (Cordele, Ga.) 19??-1971, 1916-10-22
BUSINESS OF
PACKERS HUGE
DECISION OF ARMOUR AND SWIFT
TO INCREASE CAPITAL 100000
GOO SHOWS MAGNITUDE OF THE
CHICAGO PREMIER INDUSTRY.
RY CLEARANCE L. SPEED

| ID
The proposal of Armour e Co., made
public today, to declare stock dlvl-
dend of 400 per cent, thus increasing
the CAPITAL to $100,000,000, following
so closely the declaration by Swift &
Co. of a 25,O00,000 cash dividend, to
be followed by the issuance OF new
stock to the same amount to sell at
par, thus increasing this company S
capital to the 00000,000 mark, calls
attention to the fact that probably no.
where in the world is concentrated so
much business as is done in the square
mile of territory known as the Union
Stockyards of Chicago.
The combined capital stock and
bonded Indebtedness OF the companies
operating there approaches that Oh the
worlds premier corporation, United
States Steel The surplus of the COM
bined COMPANIES is of an amount COM
pairing with that of the Steel corpora
ton, and the volume of business done
each year exceeds that of the Steel
corporation even when it's plants are
running at capacity to fill the demand
for shell abroad and industrial needs
at home.
Net Profits Smaller.
The net profits do not approach
those of the great steel company for
the reason that in no other line of
business is the margin of profit so
small as in the work of feeding the
world Still the profits are Of large
proportion-ample to pay good divi-
dends regularly on all the stock out
standing, and the packing business is
not subject to the same ups and downs
as is that of making steel. OF course
there are good years and bad but the
hacking business never drops into the
depths into which a year of depression
DlungeS the steel Industry for the rea
son that the great majority Of Ameri-
can people are able to eat, and eat
meat, even in the hardest of times.
The total aggregate business of the
packing companies will aggregate
close to $1,500000,000 a year. Accord
ing to reports, the business Of Swift
e. Co.. alone for 1910 crossed the $780,
OC0 900 mark. Armour is said to be
doing close to half billion dollars
year in gross business. The other
concerns annual turnover is well up
in the hundreds Of millions.
Of course. not all the business is
done from the stockyards. The pack
ers have branches all over the cOun-
try, and at least two of them are now
reaDing large profits from their plants
in South America. But the business
center here. is directed from here and
the major part Of the profits are dis
tr3uted here.
Is a Personal Business.
The packing business, more than al
most any other, has been a personal
business. 1t was developed by few
men of great initiative and broad Wis
ion. 1t remains in the hands Of the
same families that built it up. Armour
& Co.. at least, is a close corporation.
The Swift Stock has become more
widely distributed than any other, be-
ing listed on the New York, Boston
and Chicago stock exchanges. But its
control is still centered right here in
the city among the sons of the found
ers of the business.
The packing industry in spite OF the
fact that it has been greatly maligned
at times by the general public is one
which has proved it's utility and eff.
cheney most; has had least to do with
stock jobbing- operations, and has serV
cd the public at reasonable profit
so small, in fact, that many farmer
finds it cheaper to ship his hogs 10
Chicago and buy his winters supply
of meat here and have it shipped back
than to kill his own hogs on the farm
The packers make their profits on the
by products that the farmer has had
to throw away.