The Washington times., 1918-08-09
FARMLOAN CHANGE
NEEDED TO BOOM
U.S.FOOD SUPPLY

Ed c. Lasater, member OF the
market committee OF the American
National Live Stock Association. was
view given to The Times. denied the
truth Of the statements issued by the
meat packers In regard to- their per-
centage Of profit on meat produc-
He predicted q food shortage unless
loan systems were Immediately re-
vised.
The point Mr.. Lasater emphasized
is that, granted the packers make
only per cent profit on meat prod
u:ts, as they claim. this profit Is made
on every turn over OF capital. which
occurs eleven times each year. and
which makes the profit on capital In
vested total % per cent annually. On
the other hand the farmer makes only
one turn over OF capital q year, and
in some forms of live stock produc-
ton, only one in three years Conse>
quently he has to make q much
greater profit on one turn over TO
equal the rate he Is charged Tor
credit used In his business
No Report ON Production
~At the time the President ordered
the investigation OF the packers oy
the Federal Trade Commission" Mr.
Lasater stated, "an investigation by
the Department OF Agriculture was
also ordered, to ascertain the costs OF
live stock production These studies
were supposed to have been given to
the public not later than July 1, 1913.
AS vet they have not been made pub
lie
.sThis report, when issued. VIII snow
that the farmers have received no
profit on their production, wnlIe =
1revious report Of the Federal Trane
| commission shows that the nve DIG
hackers Of the country, during these
four years Of war. have meoe m
unusual profit. their totai o pIVn'S 20
aggregating more than Sl4O'OOo,vvo
.rhis one-sided condition OF anaiIs =
h.s horne fruit to this extent-that II
f, A. nossible no longer to finance i've
| Stock production through its AceuS
.sThis week the chairmen OF the
rad.raI Reserve banks OF Dallas'
Tex. Kansas City. Mo-. and Minneap-
otis MINI. are in Washington 10 oe-
,,t.e means and methods Of saving
Itbs livestock industry to the nation
hy nuttinR into effect some praetlcai
| means of financing the same
Packer. Pronts Large.
Rsferrine to q statement issued oy
Armour & Co. yesterday claiming that
their profits were only cents on tne
dollar. which was less than the limit
allowed by the Federal regulation re-
.,rictins profits on meat to per cent
on the capital invested. Mr.. Lssater
said:
.The Joker in this statement n
that while the license Of the PACKER
by the United States Food ADMINS
tration apparently restricts-the PACK
er's profits to per cent. In reanty ne
Is permitted to make, on CAPITA s own
ed. IL per cent in Glass OF his PROD
nets. 25 per cent in clzNS 2. while
there Is no limit as to profts In
MI, Lasater claims. that there Is no
food surplus in any one Of the alhed
| nations. our own mot excepted. ana
that ct the commencement OF the
wheat harvest the granaries OF this
country had been swept bare
HThere is no possibility" he said.
"of this country in 1918 equaling its
PRODUCTION of food supplies Of 1917,
and unless marked changes are made
in the methods of financing the pro-
ducers of the country and in increas-
ing the labor that now can be COM
manded by the farmers, they cannot
possibly make the production Of 1919
equal that of the present year. The
well-being of our nation and its allies
demands an increase Will those in
authority make this increase possi-
ble7"