Evening capital news. (Boise, Idaho) 1901-1927, 1917-11-25
PROF|TSOF THE
PACKERS FIXED
BYC0VERNF|ENT
Head of Meat Division Of the
Federal Food Administra-
ton Announces It's Policy
as to Prices.

ton Announces It's Policy
as to Prices.
Wholesale Meat Industry
(. Profits Reduced to 21a
Per Cent on the Dollar Of
Sales - Further Restric-
tions on Big Concerns.
Chicago. Nov. a4.-Prorts Of the
wholesale meat industry have been cut
to ~ per cent on each dollar of sales,
with the five large packers Of the
country further restricted to yearly
profit of per cent on the average
a capital used in the business and tenn
porary returns Of Is per cent on by
products.
Joseph p. Cotton, head Of the meat
division of the federal food admins
tration today announced this policy.
The restrictions cover the business
from Nov. /. 1917.
PROTECT SMALL PACKERS.
Packers are prohibited from adjust
ing the price of one variety Of meat
at the expense of others. Their bust
ness will be subject of close scrutiny
by the administration. They will not
be permitted to conceal or divert the
returns by use of other industries.
Small packers will be protected from
The larger ones.
The details Of how all this Is to be
accomplished were not given out in
the statement tonight by Cotton. Fur
Their regulations AMI details Of the gov
eminent control will follow. Cotton
said. Special orders for particular
packers will be announced later.
INTO TWO GROUPS.
Packers of the nation are divided
Into two groups. Armour and COM
pany, Cudahy & Co.. Morris Co..
Swift & Co., Wilson and company are
in one division and other packers are
in the second class. The five larger
packers are to be charged with the
duty Of supplying all meats for the al
lied and United States government
The others will be required to furnish
meats for domestic consumption, the
report indicated.
Investigations Of by-products OF
the packing business. consisting Of
'hides. weel. fat bones. offal ano
tankage, produce and feeds not pri-
marily of animal nature. soap, tan4ed
leather, glue and fertilizer" is to be
undertaken Immediately. The regula.
ton of is per cent profit in these by
product trades is temporary, Cotton
announced. permanent profit regu
lation will be made following the In
vestigation.
CANNOT DIVERT PROFITS.
"The packer should be permitted te
earn in these speciality branches a fail
profit but not more than other con-
Germs in the same line OF business.
said Cottons report "On the other
hand, 1t is clear that any attempt to
regulate the profits of the meat busi-
ness must make certain that profits
are not diverted to or concealed in the
speciality departments"
The food administration was aim
ing at making the price of meats te
the consumer cheaper and keeping the
market stable, Cotton said. Tho COM
mission intends to abolish specula.
i've profits and to prevent unfair prof.
IT'S
PROFITS LIMITED.
AFTER investigation and considera
lion It has been determined to permit
packers Except the five larger ones,
to earn an annual profit equal to
$40 per cent OF their total annua
sales" says the report. This prof.
is to be net after expenses are paid
interest on money borrowed will Of
treated as an expense. but expenses d.
not include federal taxes.
"The five large packers stand in {
different class. 1t has been deter
mined that tho meat business of tn,
larger packers will be subject to
First, to the same restrictions as tn,
smaller packers; and second, to q fur
ther and additional restriction; tina
ne total annaal earnings of the larg,
packer from his meat business shall
be limited to 8 per cent on his averag,
capital" said Cotton.
PRICES WILL BE CUT.
The small packers, as a result, prob
ably will reap greater rewards from
the meat industry than the five large
ones. Their gain is based on "turl
over" of sales, probably resulting II
10 per cent profit year.
Meat prices will be cut as a result
of the regulations, Cotton declared. II,
refused to say to what extent presen
prices would be reduced. Reduction
In by products will also result, he said
FIREMAN SUCCUMBS
To nEAnI,v FTTMEs