Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1919-07-12
20; and 80 Der cent of tine stetson 6

Co.: and 80 per cent Of tine Stetson &
Ellison Co.. engaged In canning.
"AiEcur, Wilson and Morris have
! likewise entered the manufacturing
phase of the canning field through
requirement of ownership or control
of canning companies.
| "Beth canned salmon and other
canned fish, as we'll as dried and salt
| fsh-foremost meat substitutes-are
handled BY Swift an1 Arrn"cr
tia ough their branch fovse systems
Staple Groceries and Vegetables
Recently the big packers began
cealing in various staple groceries
and vegetables. such as rice. potatoes.
beans and coffee. anl increased thci.'
sales at such a rate that III certain
lines they have become factors OF
great moment. Here again the selling
organization of the packers, built up
in connection with their meat tusi-
ness. assures them almost certain SILL
premacy In any line If food handling
'" hich they may wish to enter.
"Armcur's drive into the rice mar
Kat in a single year IS perhaps tine
most striking instance Of their To-
tentialities in this direction. Early
IL 1917. Armour & Co. first undertook
the handling of rice, and il that one
year sold more than 100000 % unds
OF rice, thus becoming at a single
move. on the statement IF the vice
president Of the company. the great
est rice merchant in the world Dur
inc ;4I ,-I,
of rice increased IS per cent.
! Even the Oldest and most strong
ly established wholesaling houses find
that line after line of their mer-
chandise is being absorbed by the
packers branch house system. First
the packers encroached on the han
ding of butter, eggs and cheese, then
| on canned goods. and on various kinds
of package goods; and now are han
ding increasing quantities of rice
coffee and other staples.
an 1917, the Big Five's combined
sales of meats and all other COM
modities tutaled $2,127,245,OO in
1913 they were over $4,000. oOo, 600.
Big Five Dominance In Meat Industry
The Big Five In 1916, according to
commission figures, slaughtered s2.2
I per cent. Of all cattle slaughtered by
interstate slaughterers; 1914 per cent
of all sheep; 1853 per cent of ali
calvesi and 6l.2 per cent. Of swine.
AS to both cattle and sheep" the
report states, "the percentage Of con.
troll by these five concerns consti.
tutes a monopolistic position. consid.
+, ering the harmony with which the
five work together in their purchase
Of animals and the extensiveness Of
their distributing systems. These
combined percentages of control in.
dictate potential degree of influence
over the price paid to the producer
and over the price paid by the con.
sumner, sufficient, if exercised, to ac.
count for large share of the sus.
picions and complaints that hav,
arisen over the meat industry"
The explanation of the S1.2 pei
cent. slaughter of hogs lies, the re
;. port points out, in the nature of the
products. The advantage of the bis
packer to utilize products mos
efficiently has less scope in hos
slaughter because only some 10 pei
cent. Of the live hog goes to by-pro.
ducts as against 20 per cent. of cat
tie. Also. the big packers lose the
special advantage of their highly de.
Veloped refrigeration and private car.
line systems, since cured hog pro.
ducts do not require refrigeration ir
shipping. For these reasons, the re.
port stated, nearly all the independent
interstate slaughterers confine theii
interstate trade to cured hog pro-
ducts; and in fresh meats do princi-
pally a local business.
/ Including besides all interstate
slaughterers, all wholesale local or
interstate slaughterers. the Big Five
percentages of slaughter in numbers
of head are cattle, 745; sheep, 1855;
calves. 62.5: swine. 56.9.
i THE ability Of the large packers
to undersell the small slaughterer To-
cally." says the report, "is a potent
weapon, even If unused, to keep him
from undertaking any aggressive
campaign to increase his business
The branch houses and 'peddler car
routes OF the Chicago packers cover
the country with such a network that
the local slaughterer realizes that he
cannot maintain himself against their
distributing system if he should at
tract their unfavorable attention by
aggressively trying to increase his
volume of business. The local pack
er. though able to compete in the To-
cal market. fears to exert his fun
powers. His strong tendency is to
come in under the umbrella of big
packer prices and to content himself
with a modest share of the nearby
business. Evidence on this point and
on competitive conditions generally is
given in other parts Of the report"
Average monthly holdings of nom
perishable meats during 1916, the re-
port shows. were for the Big Five
as against all other interstate slaugh-
terers; of frozen beef: $50 per cent.
smoked ham and bacon, GAL per cent :.
dry salt pork. 69.S; picked pork. 70.6:
total meats from swine, TOO.
Big Five Control in Packing centers
The Big Five control of Interstate
slaughter at the ~ great packing cen .
ters-Chicaso, Kansas City, Omaha.
st. Louis. New York City, ST, Jo-
seph. Fort Worth, st. Paul. stony
City. Oklahoma City. Denver and
Wichita-was during 1915, s4.4 per
cent. of cattle. R91 ca1vou. o. o