The labor journal. [volume] (Everett, Wash.) 1909-1976, 1920-10-08
PACKERS MAKE
BIG PROFITS

There is ample evidence that the
plan which the packers have sub
mitted to the courts, under the COM
promise consent decree, for holding
company to own fifteen big stock
yards which handle II per cent Of
the total slaughter for interstate COM
merce, is well adapted and probably
designed to pump from 25 to so mil
lion dollars of new water into the
already water-logged valuation of
the stockyards of these fifteen mar
kets. The plan provides that the
packers are the same old packers
with Just as much confidence that
they can gull the public and with just
as little conscience.
Four Packers Profits Over $413,000,-
900 in Fifteen Years.
The attorney general in the petit
/ ton for the compromise decree as
serted that in the Is years from
1904 to 1919, Swift & Co., Armour
Cudahy Packing Co., according to
their own financial reports grew
from a net worth of $92000,000 to
a net worth of approximately $479,-
100000 and in the same period they
paid in cash dividends $105,0 100000.
AS only $89000,000 of their increased
worth represented new capital, the
net profits in these Is years amount
ed to 100000 on a net worth in
1904 of $92,O0O,O00. The attorney
general says:
"In addition to these profits there
have been other vast profits difficult
of entertainment realized by the in
dividuals by virtue of either their
personal control of other packing
houses and Strengthening companies
of their interest in stockyards, ter
minal railways, rendering companies,
cattle loan institutions and banks,
and other corporate all of which
corporations have their inception and
depend on their prosperity upon adj
vantages or privileges growing out
of the interlocking control of the
stockyards and stockyard appurten-
| ances."
Attorney General Shows Monopoly
Advantages Packers Enjoy.
| The attorney general also states
that among the advantages of con-
troll of the stockyards and facilities
connected with them are: "a profit
derived from the meat industry, a
potential means of favoriteism in
dealing with commission men and
| of influence over them, a power to
grant monopolies, carrying with it
consequent profit, to banks, cattle
loan institutions, rendering plants,
to concerns supplying food for live
stock, and to others: a means to
prevent the establishment of new
packing plants and to hamper the
growth of those in existence; means
to prevent the development and linn
1t the number of new markets and to
centralize and restrict business to the
stockyards so controlled; peculiar
and exclusive access to information
concerning the receipts and sale of
live stock, it's disposition and the
| dissemination of information to the
producer"
Packers Plan for Stockyards Holding
Company Might Authorize $50,000,-
900 Additional Watered Stock on
Capitalization.
The plan for the holding company
prepared by F. H. Prince, the Boston
Banker under the compromise decree
entered by the court, will enable the
packers to retain control of the
stockyards, and the courts, if it
authorizes the valuation placed on
| these yards will establish the pur-
chasing price as value which will
be binding upon every State Public
| Utility Commission or other agency
which may be entrusted with the
regulating of the stockyards charges.
The present capitalization of the
fifty-six incorporated stockyards is
approximately $66,519,7OO, the CAPT
talization ranging from $4,000 to
$13,200,000. They are bonded for
$1O,816, 200 and list holdings in other
companies amounting to $2,190,800.
The total valuation claimed by them
is therefore $79,528,7OO, while an ad-
dition of fifty million dollars more
of straight water to the fifteen yards
covered by the plan would add about
60 per cent, and an addition of even
25 million dollars would add 31.5
| per cent to the present valuation.
making it about $13O,00O,OOO at most,
or sos, 100000, at least.
| According to the plan for the
holding company the packers defend
ants are to reserve half cash for
their holdings and if approved by
the court, securities of the holding
companies are tc have the same
privileges as the packer defendants
fer the trade commission report has
pointed out that members of the
packers far lilies ard other packer
interests that are not defendants in
the case hold II per cent of the
stocks in these fifteen companies.
For internal evidence it seems. that
the chairman of the valuation COM
mittee of the stockyards which enter
ed its report in January, 1920, a
month before the decree was entered,
was Mr.. A. G. Leonard, president of
the Union Stockyards and Transit
company, which operates the Chicago
yards. Each of the five defendants
packers writing to F. H. Prince &
Company, tell him that he, Prince,
has copy of this report of the val
uation committee. The public, how
ever, has not seen it and it is not
known whether a copy has been filed
with the attorney general.
How Water Was Pumped Into the
Chicago StOckyards.
The history of the Chicago stock
yards and others shows the method
which the packers followed to flood
the stock of the company. In 1890
in the organization of holding COM
pany in New Jersey for acquiring
| the stock of companies operating the