East Oregonian : E.O. (Pendleton, OR) 1888-current, 1918-02-01


following preliminary report ON tho
hide and leather situation:
Exceedingly high prices are at pres
cnt being charged for shoes and other
leather products, for leather itself,
and for. packer" hides from which
the better qualities of leather are
made. This is In the face of the fact
that very largely stocks of packer
hides are on hand.
In view of this situation the Com
mission deems it its duty to submit
now to congress Il preliminary report
on the hide ana leather situation. The
commission submits this Information
for the use of the congress in its
consideration of pending legislation.
Increased Slaughter of Cattle.
\ salient, fact in the report is that
the slaughter of cattle and calves in
the United States Increased during the
past five years by 100000 head, or
practically 80 per cent, 100000 of
the increase being in calves. Such a
record of slaughter of food animals
ought not at the same time to mean
THAT the country should be forced to
pay abnormally high prices for lea
ther products made from the corre-
T
Another salient fact is that the pro-
4 fits of the largest packers III their
/ hide and leather business ANA OF the
many large leather manufacturers
/ have been excessive during the past
two years.
( The investigation of conditions in
the hide ana leather industry and in
tho manufacture and distribution of
o., ~ rft
ducts was undertaken by the Federal
Trade Commission by its resolution of
December 81, 1917. Tho investigation
with respect to shoes, etc, has not
proceeded far enough to warrant any
statement. but a preliminary report is
now made as to hides and leather,
many facts bearing on this matter
having already been ascertained in
connection with the study of slaugh-
tering and meat packing in the COM
missions food investigation.
All available information indicates
that the present supply of hides is
much larger than in previous years.
/ First. The number of cattle and
calves slaughtered in the United
States has increased. Government es-
Inmates show an increase in number
of cattle slaughtered from 1900 600
in 1918 to 100000 in 1917. The
calves slaughtered increased from o.
10000 in 1913 to 100000 in 1917.
Hence approximately 100000 more
cattle hides were taken off in 1917,
or an increase OF 80 per cent The
increase of 100000 in calfskins am
cunts to nearly the same percentage.
Estimates of the International In
stitute of Agriculture up to 1916 do
not indicate any shortage in the world
total of cattle.
/ Second. The quantity OF hides stor-
cd by the five large Chicago packers
Swift & Co. Armour & Co.. Morris &
Co, Wilson * Co., Inc, and Cudhay
\ Packing Co.-increased ~ per cent
during 1915 and the first half of 1917
These five concerns are undoubtedly
the chief factors in the hide market
in the United States. and the Swift
and Armour interests are among the
( important leather manufacturers
Their stock of hides on hand on July
81. 1917, amounted to 12T694,169
/ pounds as against 7S,607,9S4 pounds
on July 81, 1916,
Held by Smaller Packers.
Third. The stocks of hides held by
the smaller packers also increased.
From 1O,947.533 pounds on January
81, 1916, their stock went up to 20,-
OS6.1O2 pounds on July 81, 1917, or
SO per cent. The grand total of the
275 interstate packers, including the
big ISjve," advanced during the peri
cd from 9S,9SO,726 pounds to 147,-
4 7S0,271 pounds, an increase of prac-
tica1ly one half.
Fourth. The imports of hides have
increased. The total imports of hides
! into the United States increased from
342, 100000 pounds in 1912 to 612,-
100000 pounds in 1916, an increase Of
four fifths. In 1917, even with the
scarcity of tonnage, the imports were
about 5S0,O0O,O0O pounds. or an in
crease of 20 per cent over 1912.
These great increases in imports
have been principally from Argentina.
Brazil and Uruguay, where the large
Chicago packers are very prominent
factors in the hide business.
Fifth 1t appears from general in
formation from many sources that a
very unusual supply of country"
hidcs-thc take-off of farmers and of
local butchers who do not operate
packing houses--is now on hand.
Prices Increase in Spite of Supply.
First. From 1914 to 1917 the price
at which heavyweight Chicago pack
or hides were held increased from 10
to 100 per cont. LightwciGhts in
creased almost as much. but in 1918 /
have declined sharply.
Second. The increase in the values !
which the packers have placed on /
their hides is mucli greater than the !
increase in the price they have paid |
for cattle. Thus, at five principal |
plants OF Swift & Co.. the price paid |
for cattle in nine months ot 19l5-1G |
with the same nine months .
of 19t6-17 increased approximately |
II per cent, but the value which
Swift e Co. put on the hides from /.
these same cattle increased 35 per /
ccnt.
Third. While in spite of increasing
.'""ks of packer" hides the price at
which such hides arc held remain
very high, the prices on country"
hides are relatively much lower and
there is said to be little market for
bpr