Tulsa daily world. [volume] (Tulsa, Indian Territory [Okla.]) 1905-1919, 1917-11-26
CHEAPER MEAT IS
NOW THREATENING.
United States Food Admins
tration Takes Up Matter
Of Packers.

CHICAGO, Nov. 25.-Regula'ion OF
the packing industry. effective No
Vember l, so that the price Of meat
to the retailer and consumer may be
both stable and cheaper, was an =
nounced yesterday by Joseph p. Cot
ton, chief of the meat division Of the
United States food administration.
In accordance with the announced
policy of the food administration to
abolish speculation and unfair profits
Mr.. Cotton in his statement to the
packers declared that profits in the
meat business must i'm no case exceed
20 per cent of the sales. Moreover, the
annual earnings of the five big pack
ers cannot exceed per cent OF the
average capital necessarily used in
the business, II being pointed out in
this connection that these five con-
Germs have diversified business ad-
juncts that are outgrowths Of but not
necessarily part of the actual pack
ing of meat.
To Prevent Conccalment.
Detailed rules and regulations are
to be issued to define the general prin-
ciples outlined and to prevent diver
packers accounts are to be subject to
inspection at all times. Mr.. Cotton said.
He also declared his intention to
protect the small packers and asserted
the adjustment Of pork prices at the
expense of beef or mutton is not to be
permitted, or vice versa.
THE system of regulation which re-
stricts the earnings of the small pack
er must be simple and easy to apply"
a
profit of 2.5 per cent allowed him is
to he net after expenses are paid.
interest on money borrowed being con-
sidered an expense. Federal taxes are
not considered an expense.
The five large packers stand in a
different class. They have vital and
important services to perform to the
national government in this war.
Upon them rests the burden of pre-
pairing the bulk of the meat food
products which our army and the
armies of tie allies require. 1t has
been determined that the meat bust
ness OF the large packers shall be sub
jected to the same restriction as tha.
OF the small packer, that is, 2.5 per
cent profit on total sales with the ad
dittOnal requirement that the total an
nual earnings from his meat business
shall be limited to per cent on his
him In that business, including bor-
rowed capital. This profit is to be net
after expenses are paid, but federal
taxes. interest on bonds and borrowed
money and dividends may not be
treated as expenses but must be paid
by the packer out of his profits
As TO Meat Business.
The meat business, the investment
on which the per cent profit is com
puted, includes slaughtering and pack |
ing of meats and all foods which are
mainly of animal origin. 1t includes
the operations of care and marketine
branches and the business in by-prod-
ucts OF live stock. 1t does not include !
products not primarily Of animal origin
or highly elaborated products con
tanning more or less animal material.
such as soap, tanned leather, glue or
fertilizer"
Mr. Cotton declared that on the |
specially business the large packer
should not be allowed to make a total |
profit excessive of 8 per cent on his
investment
The five large packers referred to !
are Armour X Co.. Morris & Co, Cad
ahy x Co, Swift & Co. and Wilson
* Co.
1t is understood the dictum of the
food administration as to profit regu-
lations is acceptable to the packers.