South Bend news-times. (South Bend, Ind.) 1913-1938, 1917-09-22
SAYS TRUTH ABOUT
M { At BELONGS To
AMERICAN PEOPLE
J. Ogden Armour, Chicago
Packer, Issues Statement
on Prices to Public
Through Eastern
Magazine.

J. ogden Armour proclaims as
the new ethics of big business that
the people have a right to know the
factors that enter into determine
tion of prices and that 1T is up TO
the purveyors of food 10 fully eX
plain the causes of high prices and
TO rely on the American people 10
approve those advances which are
shown TO be justifiable or unavoid-
able" For after all" he says. 'busi-
ness cannot exist without the con-
sent Of the people-and ought not
exist without their approval"
In conformity with these new
ethics. Mr.. Armour discusses The
Truth About the Price of Meat" in
an article in the Sept. 10 issue of an
eastern magazine. He lays the re
sponsibility for high prices on the
advancing cost of the raw material
and on the costly service which
American consumers demand from
their retail distributors. Excerpts
from his article follow:
Meat is such an important item
on the American table, that its in
creased cost has attracted attention
and comment somewhat of proper
ton 10 the rate of advance"
Meat price increases are not due
TO big profits, 50 far as the meat
purveyors are concerned. 1t
is actually a fact that the fresh meat
from the steer or hog or sheep. is
sold by the packer TO the retailer at
a figure which often fails to pay for
the raw product-that is the animal
on the hoOf. The profits which en-
able packer TO handle meat at less
than cost are due TO the utilization
of those portions of the animals
which until recent years were vast
ed or destroyed.
1T is necessary that there be a
profit in raising meat animals = the
supply is 20 keep pace with the de-
mand. The world demand for food
was never greater than it is today.
" Demand, in short, has run
away from supply.
1T is my opinion. however. that
before the price of meat and of
other food products as well-can be
materially reduced, there Will have
10 be a far reaching change in the
demands made by the public upon
the retail trade =" He (the re-
taller is compelled 10 charge in the
neighborhoo6 OF 20 percent Of the
cost price Of each article or each
pound of meat, in order to cover the
cost of doing business. The
retailers will welcome a change in
the national methods of retailing
which will enable them 10 reduce
their cost of doing business.
"In the first place there are too
many stores. It is obvious that if
there were only third rs many as
now exist. each one would do about
three times the volume OF business
it is now doing and a huge amount
of overhead and fixed expense would
be cut off making it possible to sell
goods on a much smaller margin
than is now the case. Those mer-
chants who are now doing a legiti-
mate business should be aided but
I believe the public has the same
right 20 limit the number Of stores
as a means for reducing prices as it
has to limit the number Of saloons
as a means for combating the liquor
evil.
IF the people of today would
adopt the cash and carry system OF
purchasing instead of clinging TO
the credit and delivery plan. il
would be n boon 10 both dealer and
consumer.
In a word. when the buying pub
lie permits the retailer 10 dispense
with frequent and costly deliveries
when consumers pay their bills
promptly so that the merchant can
meet his obligations before having
70 pay interest. when quick moving
advertised and standardized food
crowd the slow moving stuff off the
shelves. and when the number OF
stores is limited 10 a point which will
permit Of \ big business being done
by each-then. and not till then
will the retailer be able 10 pass meat
and other foods along 60 the con-
sumner at price which viii not
seem high when compared with the
wholesale price thereof"
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