Montana labor news., 1936-11-19
ECONOMIC NOTES
FATTENING THE FOOD



COMPANIES
AS we have indicated in previous
issues of the Notes, while the cost
of food is rising for the consumer,
the situation of the companies pro-
ducing and processing food stuffs is
anything but depressing-for those
who profit from their operations.
The Wall Street Journal (8-19-36)
announces:
"a marked change for the better
in volume and profits has been ex-
perienced in the food products bust
ness during the past two months"
Emphasis ours.-LRA.)
And in another report (8-2l-36)
the same paper announces:
$50 far the drought and country
wide hot weather have been more
of a help than a hindrance to the
large dairy companies" They give
the following reports on the net
profits of leading companies in this
field:
National Dairy Products Corp. and
subsidiaries including Sheffield
Farms Co., showed a net profit of
S5,928,0 96, after depreciation, inter
est, federal income taxes and sub
sidiary preferred dividends for first
half of 1886 compared with So 1884,
1898 in first half of last year-$9,33 $685.
205 for the year as a whole. SALARY
OF president of this company was
$l08,680 in 1885; nine other officials
of the company received salaries
ranging from $35,500 to $60,733 a
year,
Borden Company and subsidiaries
for the year ended December 81,
1885, showed a net profit of $4,842,-
349, compared with 81, 490,0 45 in
1884. Quarterly or semi-annual
statements are not issued by this
company
Beatrice Creamery Co. and sub
salaries for II months ended May
81, 1886, report net profit CATER all
charges and preferred dividend re-
quirements) of $1,153,237, compared
to $853,125 for IL months ending
February 20, 1885.
Reports from the food field show
that other lines are bringing in
creased profits to the manufacturers
and professors. A Wall Street Jour
nal story (8-19-36) says that earn
ings of the major baking companies
are currently running ahead of a
year ago" For the third quarter it
is estimated that profits will show
"a Is per cent to 20 per cent increase
over 1885," This comes on top of
first six months profits which were
well ahead of last years first half.
Continental Baking Corp. and
General Baking Co. are two leading
beneficiaries of the drouth. As the
Wall Street Journal puts it: "a
shortage of staple foods and result
ing high prices fostered by the pro-
tracted dry spell in many of the
farming centers will increase the
consumer demand for baked goods"
Chicago dispatch to the same pa
per (8-31-36) declares that for the
food Gamers "this will be a fiscal
year of good earnings"
A still later story ~(9-18-36) from
Chicago Bureau of this paper states
that profits of leading meat packing
companies will be about as high as
the substantial pickings of last year
when Armour & Co. cleared $685.
900; Cudahy Packing, $1,211,O73;
Swift & Co, $8,7 900; Wilson g.
Co, $4,110,00O; George A. HORNED &
Co., $685., 900; and John Morrell &
Co., $685. OO.
Some food companies + making
so much money they are able to
hand out extra dividends to stock
holders in addition to the regular
dividends. Among those that ia
vored the capitalists in this manner
at the beginning Of September were
Quaker Oats Co., South Porto Rico
Sugar Co., Wesson Oil & Snowdrift
Co, and Columbia Baking Co.