Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1922-05-04

It is q clearly written article ano
presents the packers side of a dis
agreement that is Of many years
standing.
We have been hearing for a great
many years, especially during the
war, about the economies of produc-
ing goods on a large scale. Most of
the textbooks on economics tell us
THAT the large concern is able to carry
on its business at lower costs than
a small concern for the following
IreasOns:
It buys and sells in larger guam
titles and is able, therefore, to buy
raw materials and to sell finished
products to the best advantage; if
it is a manufacturing concern, a large
output permits greater specialization
on the part of its labor forces, and
permits the use of the best manu-
featuring methods, with the result
that manufacturing costs are re-
duced to the lowest possible point;
large scale operations make it pos
sible to employ highly efficient mana
gers and to maintain research special
lists; the large concern can utilize its
by-products more economically.
In these respects the packing in
dustry is like all other indsutries. The
! large packing plant can be operated
more economically than a small plant
chiefly on account of the economies
attending the utilization of by-pro-
ducts on a large scale. But strange
as it may seem this fact alone does
not really explain why large packers
have come into existence. A very
real reason for the development of
large packing concerns is to be found
in the distinctive and absolutely
necessary service they render in
transporting meat products long dis
tances from the producing to the
consuming sections Of the country.
Stock in West.
| 1t so happens that approximately
two-thirds of the livestock of the
country is produced west of the
Mississippi River, while two-thirds
Of our population lives to the east
Of it. Either live animals or fresh
meats must be shipved from West
| to East, and it has been found to be
more economical to slaughter the
animals in the producing sections
and to ship the meat products in re-
frigerator ears to the consuming sec
tons than to ship the live animals.
Before the development of the re-
| frigerator car it was impossible to
ship fresh meats. The livestock of
the West had to be shipped East for
slaughter because it was impossible
to transport perishable products any
great distance The shipment of
livestock to Eastern markets for
slaughter was exceedingly wasteful.
Many of the animals died on the long
| Journey Owing to the length of the
| haul the stock arrived much shrunk-
en- in weight At certain points on the
road it was necessary to unload the
stock and give them feed, water, and
rest. All this involved heavy eX-
pense. In addition there was the
fact that only little more than half
the animals dressed out as meat, and
in those days the balance, with the
exception of the 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. Refrigera-
tor ears transport the products of
these plants long distances Tin many
eases more than q thousand niles) to
branch houses located in consuming
centers. His cars are also used to
carry perishable meat products to
the small towns located along the
railroad lines extending out in all di-
rections from the packing plants.
As to Distribution.
In short, the refrigerator ears 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 the big centers Of livestock pro
duction are far removed from the
large centers of meat consumption.
This nationwide service of ths
large packer has made. for greater
!, stability both in the price of mea
), products and in the livestock prices
d 1t prevents, as far as is humanity pos
2 sible, gluts in one market and scarci
); ties in another. 1t thereby benefit
/, both producer and consumer. In ad
s dition to the benefits that are de
D rived from a nationwide distributing
organization, there is the fact tina
the economical utilization of by
e products by the large packer enable
It the producer to get a higher pric