The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-08-23
PACKERS DENY
RESPONSIBILITY
FOR MEAT COST
Dodge Blame for Spread of
Price Between Farmer
and Consumer.
BY DANIEL VI. KIDNEY
Times stan Writer

WASHINGTON. Aug. 23-Lead-
ing packing companies. through
their Institute Of American Meat
Packers, Chicago. have protested
against interpreting the spread in
meat prices between farmer and
consumer in any large measure 10
their prOdt-taklng.
They point out that Agriculture
Department figures for 1884 reveal
only a fraction Of a cent profit a
pound fOr the packers.
A CEeckUp today revealed that
this is entirely true. Il also revealed
that the only figures the Agriculture
Department has regarding packers
operating costs, profits and other
charges are supplied by the packing
companies themselves. The depart
ment conducts no independent
checkup Of their own, officials said.
AAA Checkmated
The AAA sought such power, but
was checkmated.
Demand and supply ratio is sole
" responsible now as always for
meat prices" a telegram from the
packers institute protested. AS for
packers profits, the Department Of
Agriculture report on operations of
S5l concerns in 1884 shows average
profit OF only about IL cents a dol
lar of safes.
This figure means profit OF very
small fraction of a cent a pound
of meat sold and has virtually no
effect either on price of livestock
bought or Of meat sold. Government
figures also bear out statement that
out OF every 81 in plant value OF
packing house products, 50 is used
to bug livestock. OF remaining 81
nearly half goes to pay rolls, about
one-fourth for supplies, power ana
fuel and one-hfth for repairs, insur-
ance, depreciation, taxes, interest
and other operating expenses, leav-
ing small decimal Of a cent pound
as profits to packing industry
Claim Departments Figures Err
The message contended that sta
tistics showing pork and beef pur-
chase and sale prices and marginal
statistics for May. June and July,
released by the Agriculture Depart
ment, were 'fallacious and mislead-
ing"
They offered the following rea-
sons:
y Farm prices Of cattle and hogs
used are averages Of prices reported
for entire country covering all classes
and grades. irrespective OF quality,
whereas retail meat prices used ap-
parently cover only better grade o.
beef and pork sold in larger East
ern consuming centers."
How packers have fought off any
effort 10 permit the department to
make any original examinations Of
their accounts was related by Off
Gals here. They pointed out that
after the World War, when high
meat prices brought congressional
action. a law was passed supposedly
giving the Secretary Of Agriculture
power 10 investigate packing COM
pany costs, but he was checkmated
BY court action on the very first
attempt
T. was such a provision that
cased defeat of the AAA amend
ments last year.
Price Investigation Asked
In the present AAA amendments
the secretary Is given power only
to get information already procured
by the collector Of internal revenue.
However. the Wheeler resolution
for a S150.000 Federal Trade Com
mission investigation into the price
spread Of fOOdstuffS from producer
to consumer does grant the power
to 60 into the packers books. The
Federal Trade Commission waS
thwarted when it sought to do this
in the chain store investigation.
The Wheeler resolution has passed
the Senate and is up in the House
today. Rep. Dingell Cd, Mich)
will try to amend it so that the
investigation will take up the meat
packers first.