Omaha daily bee., 1916-07-10

which we are not posted and have no
control over; but | doubt very much
if the retail butchers of this country,
with the various problems they have
to contend with, make more than a
fair living out OF their business.
Perhaps a word or two would be
interesting as to how the beef business
is conducted
The receipts of cattle at the large
markets determine the aggregate pur-
chases of the slaughterer. Drouths.
weather conditions, feeding conditions,
the natural season OF maturity, and a
hundred and one other causes affect
the receipts OF live stock from week
to week, and, therefore, the weekly
supply of dressed beef is uneven.
What Determines Prices.
ut is impractical and impossible to
store live stock at market, and equally
impossible to keep refrigerated beef
on hand for more than few days;
therefore, the receipts of cattle each
week determine the quantity Of beef
that is shipped each week, and the
quantity OF beef shipped largely de-
termines the price at which it can be
sold. OF course, exceptional weather
conditions, varying receipts Of othef
food products like eggs, poultry, fruit,
fish, vegetables in the various seasons
affect the quantity Of beef that is
eaten. 1t is safe to say that 90 per
cent of the refrigerated beef that is
shipped by the large firms is unsold at
the time Of shipment. No fixed SELL
ing price can be put on it, based on
its cost, it has to 60 forward con-
signed to hundreds of markets to be
sold for the best price it will bring, no
more or less, but 1t must be sold
promptly on arrival or within few
days thereafter, while 1t is in fresh
condition.
at is a Fundamental fact in the beef
business that 1t must be sold while
it is fresh, and a price must be made
that will induce the retail dealer to
buy while it is fresh. We know by
experience that little increase in the
price of beef has an immediate effect
in reducing the quantity that the re-
taller will purchase, and decrease in
the price has an immediate effect in
increasing the consumption. The
beef market price is, therefore. the
highest price at which the beef can
be moved into consumption while i,
is fresh.
when the packer is face to face
with the condition of sluggish trade
where he is obliged to make conces-
sions in the selling price in order to
move the beef, which frequently hap
pens, he naturally tries to buy his
cattle at lower prices in line with the
new market conditions, has not de-
mand for as many cattle as usual
which occasions what is termed in the
trade 'glut' in the market and cattle
in order to be sold have to be sold al
a concession in price to stimulate the
demand
| "Glut" Not Favorable.
The live stock people from theit
testimony seem to be under the i'm.
preston that a glut in the live stock
market is favorable to the packer
while as matter of fact it is always
preceded by a glut in the beef mar.
ket, which occasions a heavy loss to
the packer and with continued heavy
receipts of live stock may mean sew
eral weeks Of losses to the packer be-
fore normal conditions reassert them.
selves. As a matter of fact, rea.
sonably stable prices would be most
satisfactory for the cattleshipper, the
slaughterer and the retailer were |,
possible to secure them, but under the
present haphazard method OF market
ing live stock, such condition is i'm
possible! t1t. =" -''''t
~ assume it is we'll known to ill oil
you that the present prices of live
stock are very remunerative to the
producers. Congressman Kent in.
formed me a fortnight ago that his
partner Mr.. Burke had advised him
that the last cattle they sold showed
them profit Of $50 per head. think
it would be just reasonable for the
packers to ask congress to make an
investigation Of Mr.. Burke and a
thousand of other shippers who are
making such a good profit on their
cattle this year as 1t is for Congress.
man Borland to want the packers in
vestigated for the unfavorable condi.
tons of last year. l would like to
point out to Congressman Borland
that the same five firms buying cattle
this year at these very remunerative
prices to the producer, are the same
five firms he complained of last year
and the reason for the high prices to.
day are the same as the reason for the
low prices Of year ago, namely "con.
ditions." In a nutshell, owing to the
industrial conditions last year it wa.
not possible to market as many cattle
as were marketed at any higher prices
while this year, owing to improved in.
dustrial conditions, more cattle are
being marketed at much higher
prices"