The Washington herald., 1921-08-10
PACKER INSTITUTE
HEAD PREDICTS
BUSINESS ADVANCE
T. e. Wilson Says Indus
try Has Nearly Com
pleted Readjustment.
DECLINE IN CATTLE
Believes Conditions Will Inn
prove When Tariff and
Taxes Are Settled.
DECLINE IN CATTLE

Of American Meat Packers, in ad-
dressing the annual convention OF
the institute at the Hotel Drake,
yesterday, said in part:
1--WE have every reason to look TO
the future with confdences yet we
should not be unmindful that a
continuation of the present policy
of strict economy Is very essen
tial."
Mr.. Wilson presented the insti-
tute's annual survey Of corporate
profits. He gave profit sales and
investment figures covering a con-
siderable share of American indus
tries. These statistics showed that
the 10 non-packers whose reports
were surveyed earned profits last
year of sS13.13s,417 on an invest
ment of ss,se6,5s1.3s5 and sales of
$10,i24,207,ss5, while the packing
companies surveyed earned profits
OF only S7,21S.06S on an investment
lof approximately s5so.o00.o0o and
sales of $3,013. 100000. The nom
packers did less than four times as
much business as the packers. ac-
cording to Mr.. Wilson. and made
more than 100 times as much profit.
Hides Decline 81 Per Cent.
Speaking further Of packing
house values, Mr.. Wilson said:
practically all by-products are
lower now than in 1918, and many
of them cannot be manufactured
except at a loss on account of the
poor demand"
The speaker stated that he re-
Gently directed the institute to make
survey OF hide and by-products
prices. II was found, he declared.
that between August 2, 1919, and
April 23. 1921, heavy native steer
hides declined 81 per cent. 40 per
cent below pre-war quotations:
Colorado steer hides, s3 per cent,
and so per cent below pre-war fig
ures; edible taIIow, II per cent, and
% per cent below pre-war level:
prime oleo stearine, IS per cent
from the peak quotation and more
than 40 per cent below pre-war
levels.
"The decline Of packing house
products" Mr.. Wilson declared.
should be conclusive proof of the
statements made by the packers
that the business Is governed by
TIC 10 " VI anu 0NN
is not and cannot be artiicially
controlled"
In summarizing the meat packing
business during the last year, Mr..
Wilson. while expressing conf
said in part:
The processes of readjustment
and reconstruction have been mani
fest throughout the year.
suffers Loss of Exports.
The producer of live stock and
the packer both have suffered from
continuous decline in values.
Heavy declines in exporE, as well
as decreased consumption. general
industrial depression. unemploy-
ment and restricted credits have
been contributing factors to very
unsatisfactory year for producer
and packer alike. We exported N
1919 practically 3.o0O,oo0.000 pounds
of meat products. worth approx
mately se4o,O00,00O. In 1920. we
exported less than 1.73o.ooo.ooo
pounds, valued at less than s4l",-
000. 900. a loss in one year in cN-
ports Of 1870, 100000 pounds. and IN
values of s520.013,456.
IF the farmer and the. laboring
man could study these figures and
the details of the several items in
cluded in such totals much of the
complaint about declining live stock
prices and the necessity for wage
reduction should disappear.
Figuring the packers possible
profit at Q per cent on the turnover.
on what he lost in this shrinkage
alone in 1920, as compared with
1919. It would amount to more than
eight million dollars. Since lab@r's
part in each dollar of turnover is
almost 10 cents, its loss in earnings
amounted to more than fifty-two
million dollars. while the producers
S5 per cent of each of the dollars
| represented a loss of receipts of
about four hundred million dollars.
If this lost volume of foreign bust
ness increased our local supply to
the same extent, it. of course, still
further affected and decreased the
scale of wholesale prices"
Sees Improvement Likely.
In discussing factors likely to in
fiuence future conditions. Mr.. Will
son said:
EVERY indication points TO the
fact that the industry has about
completed it's readjustment and the
position of producer and packer
alike should improve.
The recent census discloses fg-
ures which should strengthen the
economic position OF the producer.
According to the census figures the
number of cattle on farms on Janu-
ary 1st, 1890, was 66,S10.S36; swine.
5s.36S,167, and sheep, 34,9S4,524. As
compared with a previous official
estimate these figures are less by
1865, 164 in the case of cattle which
includes both beef and dairy ami
mails; 12,35S,s33 in the case Of swine.
and 12,12s,476 in the case of sheep.
The number of beef cattle report
cd was 35.42l.45S. which was $685.
542 less than the previous official
estimate.
The census of lao9 showed for
every 100 Inhabitants of the United
states: cattle. 50 head; swine. So
head: sheep. 33 head.
Thus 1t is manifest that the pro-
duction of live stock is not keeping