The Washington times., 1919-11-04

CharacteTizing certain features of
the price of pork products in Wash
ington as "puzzling," and asking for
marketing causes these price phe-
nomena." Clarence r. Wilson, ederaI
Food Administrator for the District of
Columbia, today sent a letter of in
quiry to Thomas E. Wilson, president
Of Wilson & Co., Inc, of Chicago.
In the letter the food administrator
bases his statements upon informa-
ton received from the local manager
OF Wilson & Co, meat packers.
In his letter Mr.. Wilson shows that
although the raw materials y. meat
packing have less than IS per cent
added to their value by manufacture.
and whereas these raw materials have
decreased in price, the public has re-
celyed less than half the benefit of
that decline.
Text Of Letter.
The text of the letter follows:
November 3, 1919.
Mr.. Thomas +. Wilson.
PRESIDENT, Wilson d Co. Inc
Chicago, III.
Dear Sir: / have the honor to
make inquiry with regard to certain
features of the prices of pork prod
ucts in the District of Columbia
which are, to say the least, puzzlinr.
1t appears that the consumers OF
Washington are not getting the benc-
fit of the sharp drop in the prices
Of live hogs which has been pro-
crossing during the last three
months.
Anticipating one probable reply II
may be said that the buying and
selling prices of retailers are receiy-
careful attention. This letter of liz
quiry relates only to wholesale prices.
Quotes Wilson's Address.
In your address TO the American
Institute of Meat Packers at Atlantic
City, you said:
THE raw materials of meat pack
ing. according to census figures. have
only 12l2 per cent of their value
added by manufacture. Only about =
per cent of this increase represents
the packers rate of profit"
If this is true, the principal pat
of the cost of hog products is the cost
of the live hog. 1t seems that con-
sumers have a right to expect a very
substantial drop in prices of hog
products.
In response to my request your
Washington representative has fur
nlshed me with a statement of selling
prices and costs in Washington which
presents some surprising features.
Your local manager reports that in
the week ended August 16, your COM
pany sold pork loins at an average
price of $3.50 and that in the week
ending October 4, seven weeks later.
you sold the same product at an aver
age price of 1851. a drop of S2.13.
! have assumed that it takes week
to slaughter in Chicago and get fresh
pork products to Washington.
have therefore. taken live hog prices
of August o ($21.2O) and September
- (S1G.55) and find a drop of S4.65.
The public gets the benefit of less
than half of that decline.
Costs Are Remarkable"
In the matter of costs the state
ment furnished by your manager is
still more remarkable. He reports
the cost of pork loins advancing from
S34.O3 August 16 to S34.32 October 4,
while live hogs declined as stated
above S4.S5 a hundred. If the raw
material constitutes S5 per cent of
the cost, as stated in your speech at
Atlantic City, such an increase in cost
is impossible.
In his statement for the week ended
September 20, your manager reports
cost of pork loins at S34.1S and cost
of Regular Laurel hams at S33.50. In
other words, a cured pork product
costs less than an incurred pork prod
uCt.
Furthermore, taking five weeks for
the preparation of hams for the mar
ket and a week for the preparation of
pork loins, the raw material for the
hams cost 5000 a hundred and the
raw material for the loins cost $3.50
a hundred. Yet your manager in
forms me that the cost of the loins is
greater than the cost of the hams,