The daily Nome industrial worker., 1916-12-11
SOME PROFITS.


 Armour and Co. made 250 per cent profits last year and will slice a profit among the shareholders of eighty million dollars, in round numbers.
 That was made in the important industry of supplying the people with dressed and prepared meats, and disposing of the by-products which like glycerine for example are unusually remunerative due to the war.
 Ordinarily when profits expand ill this fashion in any industry, it will mean a vastly increased output. For example if the mills in the textile in- dustry increase their profitable ope- ration. and pay higher dividends, 1t is practically certain that they Will have only done so by an immensely increased output.
 It may be taken for granted that with the present boom in industries like steel munitions, explosives, cop per and so forth, it is accompanied by an altogether abnormal produc- ton. And that is correct.
 But the reason why the dividends splitting of the Armour company i: so interesting and important is be- cause there has been no unusual expansion in tho packing industry.
 Further than that, there has been for the past few years in tine United States rather a falling off In the cattle production which sup plies the raw material for the canning companies, and for that reason if for no other there is not possible any very great increase in the business as far as the ,otality of the output is concerned.
 What has happened, then, has been that the price of the commo- dity handled has been greatly in- creased and the same output, rela- lively speaking, to all intents and purposes, is compelled to produce 
 greater profits.
 Moreover what is true of Armour and Co. is true also of the other great packing houses, and they all made more money out of the same amount of production. The reason for this is of course not far to seek. The European war has directed at- tention to the wares which the pack ing houses put up, and quite exten- sive contracts increased the price set previously upon those wares. The American people who form -rly had been able to secure most of the output now have to play second fiddle. And they have to pay in pro- portion as much as the belligerent nations over in Europe are willing to pay.
 It is one peculiar feature of the war that the consumption of meat in Europe has been greatly increased. Because of the fact that soldiers to fight well must be fed well, the gov ernments are seeing to it that they get a per diem allowance of fresh meat.
 The English troops for example are recruited and conscripted from many centers where the industrial population enjoyed fresh meat but seldom; now it is part of their daily ration. Great Britain cannot nearly begin to supply that meat; nor can Canada, nor can Australia. Hence it is that America is called upon to make up what Is further needed in the armies of Europe. Ac- cordingly the foreign demand is now greater than ever before. and in- stead of the packers seeking a market, the markets seek the pack CTS.
 The domestic demand is placed in opposition to the foreign demand. and the same supply is required to furnish both with the satisfaction of the social needs in this respect.
 What the packers do is to take advantage of the situation and thus to make hay when the sun shines. They compel the old law of supply and demand regulating the price. to operate for their benefit, and both in the domestic and in the foreign market the price is raised.