The Dawson news. (Dawson, Ga.) 1889-current, 1919-02-25
THE PACKER CAMOUFLACF

Inc volumes OF opinion and conclusions
which are being read into the record at the
packers hearing before the committee of
congress entirely fail to inform the public.
The whole matter is camoufage adroitly
used to make good appearance for the
corporations which, in a sense, are on the
carpet, without limiting at a reason why
meat prices are high or what justification
there is for them remaining so. The pack
ers claim they are making but small per-
centage on their production. They are en-
titled to fair business return like any man.
But they are not entitled to profit which
robs the consumer. This is the point at
issue between them and the federal trade
commission, which Investigated the packing
industry.
The weakness of some of the arguments
advanced by the packers is illustrated in the
hearing few days ago when the president
of one of the "big five" concerns asserted
that the profit on an average beef animal
was not more than 81. This would not be
unreasonable or unfair. But Attorney Fran
els j. Heney, who conducted the inquiry for
the federal trade commission and who has
been requested by the senate committee to
examine the packers witnesses, asked if
this dollar profit included the hide of the
animal. The witness admitted it did not.
So far in all the evidence given by the pack
ers there is no real information. They as
sert the percentage profit is certain
amount, but nothing is said of by-products
and the profits on them. In this connection
we would refer to a communication in this
issue of The News from Amour & Co.,
written in defense of the packers They as
sert in eXtenuation of the high prices of
packers products that during last year theyI
paid live stock producers more than $515,-|
100000. That, doubtless, is true, but it is
not proof that the consumer is not being
charged an exhorbitant price 1t represents
an increased volume of business. 1t is GER
tainly fact that the Georgia producers of
hogs have been compelled to sell their prod
uct to the packers for II to 10 cents a !
pound-less than they received year ago
and no one can dispute, not even the pack
ers, that there is wide margin for profit be-
tween those figures and 80 to rs cents a !
pound the consumer is paying for meats.
If the packers want to give the public evil
dence which they will accept and which will
show where the high cost of meats lies they
could do so by simple process. Suppose
they were to take 100 beef animals of or
binary trade runs give the cost of each
animal on the day it is purchased, together
with its gross weight; give the amount of
each kind of beef which the carcass produc-
ed, such as porter house steak, rib roast,
oh nil tbo +bo, "a, Al
public buys. The public could then figure
the price which the meat carcass would
bring the packers. BY taking a sufficient
number of animals a general average could
be reached in the same manner that insur-
ance companies by comparison of the lives
of large number of insured persons reach
a fixed life expectancy at every insurabie
age of man.
This calculation would not include by
products. But the amount of these the
hide and other material which is utilized
for commercial purposes, could be given in
the same manner as the amount of the
available meat in the edible carcass With
these facts before him any householder
could determine whether the packers are
responsible for the prohibitive prices of
meat or whether it lies in the clutch of
someone else. The packers would get a fair
hearing, and if they are making only reas-
enable profit, as they say they are, the
public criticism of which they complain
would be eliminated. If they are not max
ing more than the profits which they claim
they should seek to present the facts to
the public. No one cares about their phi
lanthropy. Every one knows men and cor
porations are not engaged in business for
these motives. No man can advance that
argument and not meet derision. If he is
engaged in public service and is making a
fair and honest profit on his business and
wants to stand on that reputation the public
will judge him justly if he gives the public
the figures in unvarnished and undisguised
form upon which his profits are based.
In practically every city and village in
the country the packers deliver their prod
ucts directly to the retail butcher and meat
broker. Few of these are becoming million
aires, so they may be eliminated as excessive
profit takers.