The Powder River County examiner and the Broadus independent. [volume] (Broadus, Mont.) 1919-1935, 1922-04-14

name, In the FOLLOWING outlines ?h(
reasons why Americas modern ccm.
pick life has given birth to his owr
ana similar companies ana and VIII,
their existence IL importance to ever,
citizen OF the United States. It Is 6
clearly written article and present.
the packers side Of a disagreement
that IL OF many years standing.
We have been hearing for a great
many years. especially during the war
about the economies CT producing
goods on large scale. Most Of the
textbooks on economics tell us that
the large concern IL able to carry on
its business at lower costs than a
small concern for the following rea-
sons:
1t buys and sells IN larger quarti.
ties and IL able. therefore, to buy raw
materials and to sell finished products
to the best advantage; If it is a man
ufacturing concern: large output
permits greater specialization on the
part Of it's labor forces. and permits
the use Of the best manufa cturing
methods, with the result that manu-
| featuring costs are reduced to the
loves possible point: large scale cper-
| atoms make 1t possible to employ high
~ efficient managers and to maintain
research specialists: the large concern
can utilize Its by-products more eco
nomically.
In these respects the packing indus
try il like all ether industries. The
large packing plant can be operated
more economically than a small liant
chiefly on ccount o" the economies at
tending the utilization Of by-products
on a large scale But strang as 1t
may seem this fact alone does not
really explain why large packers nave
come into existence. a very real rea-
son for the development of large pack
ing concerns ia to be found in the dis
tinctive and absolutely necessary
service they render in transporting
meat products long distances from the
producing to the consuming sections
Of the country.
It so happens that approximately
two-thirds Of the livestock Ct the
country is produced west of the Mis-
sissippi river while two-thirds of our
population lives to the east of it, Eth
err live animals CIR rfesh meats must
be shipped from west to east, and tt
has been found to be more economical
to slaughter the animals in the pro
ducing sections and to ship the meat
products in refrigerator cars to- the
consuming sections than to ship the
live animals.
Before the development of the re-
frigerator car it was impossible to
ship fresh meats. The livestock of th'.
west had to- be shipped east for
slaughter because. 1t was impossible t"
transport perishable products any
great distance. The shipment Of Nc
stock to eastern markets for slaughter
was exceedingly vastcful. Many or
the animals died on the 'onE Journey.
Owing to the length CT the haul the
stock arrived much skrnnk in we Eht'
At certain points on the road 1t was
necessary to unload the stock and
give them feed. water and rest. All
this involved heavy expense. In addi-
ton there was the fact that only
little more than half the am mails
dressed out as meat. and In thcS" days
go balance, with tn" exception Of tho
hide. was largely waste. To the other
wastes Of the system would be added
nearly half the freight costs.
The large packer has been instru-
mental in eliminating these wastes.
Herein lies his distinctive service. His
packing plants are located near the
source Of production. Refrigerator
cars transport the products Of these
plants long distances tin many cases
more than a thousand miies) to branch
houses located in consuming centers
His cars are also used to carry perish
able meat products to the small towns
located along the railroad lines ex-
tending out in all directions from the
packing plants.
In shcrt. the refrigerator cars Of
the large packers. together with his
packing house and branch house or
ganization. have made possible the
even and economical distribution Of
perishable meat products all over the
country. Notwithstanding the fact that
ton are far removed from the large
centers Of meat consumption.
This nationwide service of the
large packer has made for greater
stability beth in the price of meat
products and in the livestock prices
1t prevents, as far as is humanity pos
sible. gluts in one market and search
ties in another. 1t thereby benefits
both producer and consumer. In adj
dition to the benefits that are derived
from a nationwide distributing or
ganixaticn. there is the fact that the
economical utilization Of by-products
by the large packer enables the pro-
Queer to get a higher price for his
livestock and reduces the price the
consumer must pay for his meat rro-
ducts.
While it Is we'll to. point out the
economies of large scale operations in
the packing industry. it should not
be overlooked that the. reason for the
existence OF large packers Is net to
he found alone in the economy with
which they operate. The significant
fact il that large packers are abso-
lutely necessary. The producers and
consumers for meat products must
have the long distance service which
only the large packer can render. OF
course. they must also have the serv-
ice Of small packers who buy live
stock and sell meat products in local
markets. In this respect the service
rendered by the small packer Is es-
senttally different rom that rendered
nv fh0 largo sNoNGo~ rmo1n 1t A4s~sv