Evening star. [volume] (Washington, D.C.) 1854-1972, 1919-08-08
ASSERTS PACKERS
PROFITS SMALL
Swift Representative Tells
Senators 1.9 Cent Pound
/ Margin on Sales Here.
MAKE BUT 10 ON DOLLAR

L. -. h w elQ OF chicago, REPRESENT
ing Swift & Co., told the Senate Dis
trict subcommittee investigating al
legged profiteering in foodstuffs In
Washington at its hearing yesterday
afternoon.
I'VE feel that we should have help
in spreading the truth about the
packing industry: That the only way
to overcome radical tendencies, boil
shevism, which are ENCOURAGED BY
stirring up prejudice. is to have the
truth spread abroad. and to kill OF
the ignorance that exists"
Cover Tremendous Business.
Mr. Weld produced carefully pre-
pared figures to show to the COM
fnittee that the profits OF the pack.
ers. spread over q tremendous busi.
ness. have little effect upon the whole.
TO the producers Of live stock. Take
away these profits, he said. and there
would be little difference in the price
when the Federal Trade Commits.
sion was instructed to investigate the
Investigate the entire business from
the calf on the farm to the steak In
the kitchen of the consumer" said Mr.
Weld. But the commission gave at.
tention only to the packing end.
will say. however. that there is moth.
ing in the reports Of the commission
which says to what extent the profit
Of the packers affects either the price
paid for live stock to the producers
or the Wholesale price of beef. If the
that the profits Of the packers have
practically no effect on these prices"
Admits Increase in Hides.
Mr.. Weld admitted that the price Of
hides had increased very greatly with.
In the last four months, but he in
sisted that this had not unduly boost
Cd the profits of the packers, but that
the increase had been largely ab.
SOCK ~eh was ss 'h Sishss
because OF the increase In hide prices
than 1t would be today II hides had
not increased, and by the reduced
price of wholesale dressed beef. The
price Of hides. he admitted. had 10.
cents in August for heavy steer hides,
and from 30 cents to 81 cents on the
lighter hides.
I'VE believe" said Mr.. Weld, ..tnat
the packer. sell meat Wholesale as
It. The only way In which It could be
sold moro cheaply is through the re.
duction Of the price paid for live
stock, and We are not suggesting that
live stock prices be reduced when we
say that"
Profit Under Q Per Cent.
HE said that the total business Of
the beginning Of the fiscal year for
over $500. ooo, 900. The profits had
been for those eight rnonths about
t1s;5oo. 600. or 10 per cent prof1t On
did. He said he was not able to give
without figuring the profit on the
capital stock this would represent.
The capital stock, he said. was $780,.
c e a rhs ,ss maas !, per ,S cert
per cent the previous year. Limits In
profits imposed by the food adniinis-
tfation were responsible In part for
the reduced profts last year. he add.
quoted at 100 while year ago 1t
was at par. He insisted that IL had
gone up along with other stocks and
not because OF any profteering or
stock manipulation. The profits Of all
nve big packers on their beef bust.
ness alone. had only been about sc
per cent on their investment. Mr..
Weld said.
Mr.. Weld declared that the packers
had no objection to the railroad I'd.
ministration furnishing refrigeratof
cars TO any one. He insisted, how
ever, that 1t should not take over the
refrigerator cars. some 1000 in mum.
Der. which are the property Of his
company ceuld get better service
from operating its own cars.
Tells Of Business Here.
Taking the meat business which
Swift & CO. does in Washinrto1s.
where better grade Of beef ts sod
than In many other cities. Mr.. Weld
showed that the expense Of killing.
freighting, selling, and Insurance. On
LOO pounds OF dressed beef was only
$3.50. or ~ cents per pound. he eaid
that hel did not believe there was any
government regulation which would
make 1t possible to reduce these costs.
The company paid for 100 pounds Of
amount Of beet obtained i1 from i IeS
pounds Of live cattle was 55.1l pounds.
The raw material, therefore. coSt
a tho company Pan $500 per hundred
The company charged against this,
however. $s.s7. which 1t got for hides
and other by.products, making the net
cost $3.50 per hundred pounds Of
dressed beef. This was sold In WASH
ington for $1s,01. or at a profit OF II
OF cent per pound.
Packers In Competition.
Mr.. Weld said that the big I'VE pack
ers were in the strongest kind Of
competition with each other. a. evil
denced from the manner In which
their selling was conducted in their
hundreds Of branch houses throughout
the country.
Members Of ths committee aslssd M.
Weld about the prices charged BY re-
tAtlers. but he replied that he had no
information a. to their costs and the
committee would have to get that data
from the retailers. He said that the re-
tailers had wastage Of fat. bone ana
shrinkage when they came to cut up
the major cuts Of beef which are sold
them wholesale by the packers. The
prices Of the major cuts charged By
his company In Washington he rave g
follows: Loin. 10 to 90 cents Q pound !;
round. to 80 cents rib. 8 to 81 chuck,
to 80; plate. 8 to 20; brisket, 5 to lS,
and shanks, 8 to rs.
Mr.. Weld said that In 1915 tia aver.