New-York tribune., 1919-01-10
Huge Turnover
Produces Smaller
Packing Profits
Net Earnings of Swift & Co.
S2I,l57,277 on Volume
of $1,000, 100000; Prof
its Limited by Food Board

On record turnover of business
approximating 20O,0O0,00O Swift G.
Co. earned net profits. after all
charges, of S21157,277 in the twelve
months ended November 2 last, accord
ing to the annual report issued to the
stockholders yesterday. This was
equivalent to S14.1O share earned on
the $l50,000,000 outstanding capital
stock of the company.
In the preceding fiscal year, which
ended September 20, 1917, the COM
pany earned $34,6500OO net over bond
interest on total business of S875, ,OOO,-
COO, which was equivalent to S3405 a
share on the $1O0,00O,000 outstanding
in that year.
Earning on Capital
A considerable portion of the busi-
ness handled by Swift G. Co. last
year was transacted under the regula-
tions of the United States Food Ad-
minlstration, which limited profits on
slaughterlng and meat packing to 9
per cent on the money employed in the
business. Earnings on this kind of
business amounted to S18,786,G96, while
the capital employed totalled $248,214,-
lo9, the percentage of earnings to cap
ltal employed being 757 per cent. Sales
OF products under the Food Admins
tration's regulations aggregated 1922
1856 in value.
Earnings Of the company from de-
partments not subject to government
control and from American invest
ments amounted to $23 1928 .O9S, while
income from foreign investments ag-
gfegated S4,22l. .4T3. Federal and for
clgn taxes emounted to $1l,828,164,
end interest on borrowed money and
other charges totalled $l3.745 1926. After
paying $4,000 000 in dividends the COM
pany transferred SI2157,277 to sur
plus account.
j.. f. Swift, president Of the COM
pany, IN his remarks to the stockhold-
crs. referring to the recent allegations
Of tho Federal Trade Commission con-
corning the activities of the meat
packers, says that Swift e. Co. have no
agreement misunderstanding with COM
petltors and is in keen and open COM
petition with every other packer, both
IN buying and selling.
Live Stock Market Open
"Al ]ive> stock markets are open to
the public" Mir. Swift says, cor buy
ING and selling on equal terms. We
nave never been given an opportunity
ty the Federal Trade Commission to
refutc their allegations. We know
that any unbiased referees would eX-
oncratc US Of the charges that have
been made"
In reviewing tho extraordinary char
acter of the years business in the
meat packing industry Mr.. Swift points
out that Swift e. Co.'S profits in
the meat departments alone were only
2.04 per cent of the turnover, being
approximate ely Z ner cent per pound
before paying taxes or interest on
borrowed money.
According to the report the receipts
OF cattle at nine principal markets in
creased from l2,278,GG0 in 1917 to a.
$4,000 in 1919. an expansion of II per
cent. Reccints Of hogs at eleven prin-
clpal markets increased rs per cent
over 1917.
"Thc increased receipts Of live stock
which have been taking place since
1914 have not resulted in depletion of
the stock of animals on the farms"
says Mr. Swift; Sin fact, the estimates
of the United States Department of
Agriculture show that the number OF
animals on the farms has been stead
lily increasing. The past year has been
one of unparalleled prosperity for the
live stock producer. Not only have the
livestock receipts at the great central
markets increased fully 30 per cent
without depicting the total supply of
live animals, but they have been sold
at prices uneoualled in the history of
the business, prices averaging IS per
cent more than the already high prices
Of 1917 rhc effect of these high
prices is shown bv our payments Of
682,000,000 to livestock raisers dur
ing 1918, an increase over 1917 of
$227 100000"
In conclusion Mr. Swift tells the
stockholders that from a financial
standpoint the outlook for business
for the company in 1919 is satisfactory.
Thomas Bradley, of Philadelphia
and Pasadena, and II. H. Swift, of
Chicago. were elected TO the board
The other directors were reelected.