Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1918-01-24
ARMOUR TRADE
SHOWS GROWTH
FOR PAST YEAR
Percentage of Profit About
the Same as Last Year,
But Sale is Larger.

But Sale is Larger.
Chicago, Jan. 24.-Armour and
company's business in the United
States in 1917 amounted to $676,0O0.-
900. on which a net profit Of &el,0o0,-
firms financial report made public
today. The firms business in proc
ucts originating in this countryside
both here and abroad-was 360,000,-
600 greater than the world business
OF the firm in 1916. M
Net income was equivalent to 1A.6
per cent on invested capital or 81 per
cent on the capital stock. The profit
from the sale Of meat and other food
each dollar Of sales.
In 1916, Armour's total profits were
$20.100, 00o-14.7 per cent on invest
ment and 20 per cent on capital stock.
J. Ogden Armour. in a statement
accompanying the financial report, Of
fers as an explanation for the high
price of meat products during the past
year, the fact that live meat animals
cost approximately 81 per cent more
than they did the preceding year. Mr..
Armour's complete summary Of the
'AAtoAAS404 SCAtcIIICllL 1OuOWSs
7 the stockholders Of Armour q Co:
I submit herewith q statement Of
income for the fiscal year ending Oc-
tober ~. 1917, also Of assets and
S2l,2s3.562.s7 is equivalent to 81 per
cent on our capital stock. and 14.5 per
cent on the average net capital in
vestment. The usual dividend Of 3
per cent has been declared, payable
January Is, 1913. the balance Of the
years earnings being reinvested in the
business. ~
I'VE have found it advisable to
segregate our foreign and South
American from our North American.
interests and local corporations now
operate those properties. We have
been compelled to do this because Of
the great expansion in their business,
reflected in the necessary construction
OF new packing plants at Sac Paulo
and Santa Anna do Libramento. both
in Brazil. n Santa Cruz. Argentine
republic: these in addition to u
Aires and La Plata. in the Argentine.
These corporations have retained their
earnings to assist in financing the cost
OF those new plants.
The gross volume of our business
from sources within this country has
been $575. 600. 600. The ratio of profit
on meat and other food products was
2.21 cents on each $1.OO of sales. Alb
normal economic and general business
conditions throughout the country,
due to the war, are reflected in our
business in the great increase in tho
cost OF live stock, approximately 81
per cent. We paid out in 1917 for live
stock over sos, 200, 900 more than the
same weight would have cost us at
prices prevailing in 1916, from which
l would estimate that h live stock
producers of this country received ST.
OO0,000.000 more in 1917 than in 1916
for the same amour of stock. The
result has been a very high cost of our
product and is reflected in Dur state
ment in the unprecedented Inc n
anticipated amount of working capi-
tai We have been called upon to fur
nish. indicated in the volume of our
the one hand and our bills and ac-
counts payable on the other.
Initiation of 'Meatless Days."
which we favored. has proven most
beneficial. enabling us to meet the
unusual demands made upon our ia
%cilities. Our sales department report
an estimate of the decrease in con-
sumption of meat due to meatlesa
days at IS per cent. which saving was
AiAO4C Id NOISuIIlCO III CAIluR lOE
the vast number Of men in training
for u army and navy. N for or
ders received from our Allies.
During the year the federal gov
eminent has assumed control Of our
operations under the bill creating the
United States Food Administration
and giving it authority to license
packing house operations. Incident
thereto We are now operating under
l ~o0fSloSiorc ~~Ns~~sh;-- g. 1S~SkS-.
our profits for the future. We well
come government supervision and
regulation under existing war condi-
tons, believing that to enable US to
most efficiently do our part in the wal
the close cooperation which we have
received from the food administrator,
MI. Hoover. and his representative in
the meat industry, Mr.. Cotton. en-
aiding them as representing the gov
eminent to appreciate our many COM
pick problems. will prove most bene-
fetal.
ITO insure as far as practicable
continuity OF the operation Of
packing plants during the val We re-
Gently agreed at the instance Of the
ton to submit all questions arising
during that time as to wages and
working conditions Of our employees
to an administrator selected by them
for that purpose. At the present time
we have a total Of 57,546 employees in
all branches of our activities. Our
payroll for the fiscal year under re-
view totaled $49,519,952.O6
Il believe we may point with par
donable pride to the part our organi-
zation is playing in the war. We
have 1.493 employees in the service.
approximately one-half Of whom en-
listed voluntarily before the draft. and
$500 subject to call. OF those here
tofore called less than twenty were
compelled to ask for exemption. In
addition we have gladly furnished
many men now in civilian service at
Washington and elsewhere. serving
without cost to the government. SOf
the two Liberty Loan jesue4 our en-
ployes. with our aid. subscribedeto q
total Of $ 100000 Of bonds, in addi-
ton to the subscription Of the COM
pany itself of $4,000, 900.
Armour and company in its entire.
ty-every facility it possesses. every
bit of product and every employs
at the disposition OF the government
for each one and all Of us : strain
ing every nerve and every muscle to
do our bit in aiding the government
in the world conflict"
~. Ogden Armour.
|"Uncle Joe" Cannon
Back at the Capitol,
But In Wheel Chair
Washington, Jan. 23.-"Uncle Joe..