wmp in M'vmwmmg&Mmmmi-
14
The Commoner.
VOLUME 5, NUMBER g
coal per head being $48.58. Tho cost
of operation and administration at the
packing plants averaged $1.00 per
llicad, making the total cost $50.48.
The weight of the beef derived from
ftheso cattle was equal to 55.68 per cent
of the live weight, or GOO pounds per
Jhead. The avorago net selling price of
tho boof was $G.47 per hundredweight,
or $89.82 per head. Tho net value of by
products from tho cattle was $11.00 per
head, making tho total proceeds $51.28
,por head. 'Jliis showed an average
profit of 80 cents per head, or 13.1 cents
per hundredweight of dressed beef.
For tho year from July, 1003, to June,
1004, tho computation covered 2,013,G58
cattle. The average live weight was
1,115 pounds, and tho average cost at
$4.15 per hundredweight was $4G.23 per
head; tho total cost, including killing,
otc, being $40.10. The average selling
prico of the beef was $0.25, or $30.26
per head, tho average dressed weight
boing 620 pounds. The net value of by
products was $0.75 per head, or more
than $2 per head less than in the pre
ceding year. The total proceeds of the
beef and by-products were $40.01, leav
ing a profit of 82 cents per head, equal
to 13.5 cent3 per hundredweight of
dressed beef.
In addition to the average profits just
indicated are the further profits arising
from elaboration of by-products beyond
tho first marketable stage, and from car
mileage, which, as already stated, may
together add not inoro than 50 cents per
head to tho avorago profit of 99 cents
just given. Tho additional profit de
rived from elaborating minor by-products
is over and above their value as
raw material, which is already Included
in tho profits of the beef business.
Tho great packing establishments
have numerous auxiliary departments,
Gome of which aro virtually distinct
industries, not strictly belonging to tho
Hacking business. Tho profit on pri
vato refrigerator cars Is that derived
from tho mileage paid by tho railroads,
which roughly speaking, averages
slightly more than three-fourths of a
cent per milo for every mile traveled
by refrigerator cars, whether loaded or
empty. Tho avorago distance which
beef Is transported from the packing
uuuau ueioro consumption does not
exceed 800 miles. The gross mileage
received by the owner of tho refrigera
tor car would therefore bo roughly
$12 per round trip.
Estimating that a car of dressed beef
weighs not less than '20,000 pounds,
the gross mileage receipts would not
exceed G cents per hundred pounds of
beef. Of these gross mileage receipts
lully one-third is absorlimi in n,n ni
of maintaining equipment, including
allowance for depreciation, thus leav
ing not more than 4 cents por hundred
pounds of dressed beef as the net re
turn derived from the ownership of
private cars handling that product.
Ihis is equivalent to about 25 cents
per head of cattle.
The statistics of margins between
prices of cattle and prices of beef
b nee 1S08 are shown on the basis o
tho live cost of all cattle at four nlantq
in different packing centers as 'com.
pared with the average price of
sold by a loading packer in nine im-
U0S' u thls point -"The
average margin for the whole
?on d fro J"""", 1898, to Tune
.1904 was 92.62; tho lowest margin was
. in the first half of 1903, namely Wi
half of 1902, namely, $3.02. The m?r
fiin in the last half of 1902, instead of
In planning your California trin
see that your ticket reads via The Co? '
orado Midland Railway TiiiJ
that you will enjoa day's ern8
through tho heart of tho Rockies a U,
your local agent about coioSls rit?
effective March 1 to Mav ir 1 atPs'
CII.SpeorsG.P.lenri0rte
being exceptionally high, was below the
average, as also the margin for the first
half of 1904. Tho year 1903, instead
of being characterized by unusually
high margins had, in fact, tho lowest
average margin for the whole period
for which a reliable record is obtain
able." In comparing tho margin between
prices of cattle and prices of beef, ex
haustive study was made of the value
by by-products, and sinco tho differ
ence. between the maximum and mini
mum value of such products per head
during the past two years has much
exceeded tho total profit of the pack
ers, this has been a most important
feature of the investigation. Thus the
price of hides, the most important by
product of cattle, after reaching a
maximum in 1902, declined sharply in
1003 and 1004.
The average price received for all
hides sold by the Armour, SVift and
Schwarzschlld & Sulzberger companies
from ten packing plants fell from 11.8
cents in the second half of 1902 to 9.7
cents in the second half of 1903, this
representing a decline in the net value
of the hide per head from $6.93 to $5.79.
Prices of oleo oil and stearne like
wise reached their highest level in
1902, and fell rapidly in the summer of
1903, partly as the result of anti-oleo-margerine
legislation, causing a loss of
over $1 per head in the value of fat.
These aro the principal by-products
of cattle. The others together are
worth only a little more than $1.50
per head, and their values have not
varied sufficiently to seriously effect
the margin between the price of cattle
and beef.
The error which would arise rrom
consideration of the margin between
the price of cattle and beef as an indi
cation of profits is well shown by the
fact that the true average margin be
tween the live cost of all cattle killed
uy uio Armour, Swift and Schwarz
schild & Sulzberger companies at their
leading plants for the year 1903-4 was
S cents per hundred pounds greater
than during tho preceding twelve
months, $2.10 as compared with ?2.02
As a matter of fact the computations
vl mu uuruuu snowea tnat there was
virtually no change in tlio pronts of
mo UUOIUUSS UCLWfiRn those i-nm -rn
riods, the profit being 13.1 cents per
hundred pounds of dressed beef in
1902-3 and 13.5 cents in 1903-4.
As already stated the bureau has
made its computations from the rec
ords of the companies. The bureau
has had access to all the price rec
ords of the leading packing compa
nies and also to all the accounts and
Ti i UAUP"ng car line accounts
wheh determine the profits of packers
of beef and its by-products. Owing to
the fact that the records of Morris &
Co the Cudahy Packing company and
the national Packing company did not
adapt themselves to the methods fol-
owed the detailed computation of prof
its was made for three companies only
Armour & Co., Swift & Co., and the
Schwarzschild & Sulzberger 'company
The computation made covered ton
Plants, killing upward of two min on
cattle and were based on the tot
number of cattle killed, the absolnfi
figures of live weight, the live cos of
all dressed beof cattle (together wm, f
moderate number of infedo r grTde3)
The actual cost of operation nlli I'
ministration of the various don"
ments was ascertained Trom the S "
keeping records and actual ouantlt?
and values were taken foi the Sn"
by-products items. fading
The actual quantity of dressed hnf
derived was ascertained dlwSv ef
the killing records nmin,tly from
from the books Trim taken
then determined w ith Z were
ready indionZ a? the r.Qs al-
te actual bookkeenimr n n? l0n of
-de for Morris Vu?
Packing company, as well aa for the
three companies named. Extensive
statistics of prices of cattle and beef
and other matters were al3o taken
from all five of these packers and
from the Hammond company- as well.
As stated, tho results of tho bureau's
investigation indicate that the larger
packing companies especially consid
ered are not over-capitalized. Presump
tive evidence in favor of fair capitaliz
ation is found in the very concentrat
ed holdings of the stock3 of these com
panies, nearly- all of which, with the
exception of Swift & Co., are held by
the packers themselves and their fam
ilies. In the case of S'wift & Co. the
entire thirty-five million dollars or cap
ital stock and five million dollars in
bonds were paid in cash and at par.
The conclusions of the report in re
gard to the operations of private car
lines are approximate. The bureau
arrives at an average cost for a re
frigerator car of $1,000, an average
yearly cost of maintenance of $115 per
car and a net profit from the mileage
alone as already stated of from 14
per cent to about 17 per cent.
A statement submitted by one com
panythe Cudahy Packing company
shows an actual net profit on the orig
inal investment in its cars of 22 per
cent in 1902, of 20 per cent in 1903 and
of 17.7 per cent in 1904. These profits
are entirely derived from the mileage
allowed owners of private cars by rail
road companies. For refrigerator cars
this mileage is generally three-fourths
of a cent, but for a considerable part
of the country is one cent per mile
traveled.
The National Packing company,
mentioned above as one of the "big
six," is a merger of various naoiiin
plants, particularly the so-called nn g
mond and Fowler properties ami i
controlled by the Armour, Swift Ji
Morris interests, who constitute u
board of directors. Except for the Na
tonal Packing company, nowJ"
there appears to be practically no iW
oral inter-ownership of stock among
the six principal companies. 5
An Old Tree
An old yew tree stands in tho
churchyard at Fortingal in Perth
shire, which De Candolie, neary a cen'
tury ago, proved tc the satisfaction o
botanists to be twenty-five centnrU
fold, and another is still standing at
Hedsor, in Buclas, which in 3,240 yeara
old. How De Candolie arrived at an
apparently correct estimate of tho
enormous age of these living trees is
a simple thing, and the principle is
doubtless well known today to all.
The yew, like most other trees, adds
one line, about the tenth of an inch, to
it3 circumference each year. But tho
oldest living thing in the world today,
so far as known, is a cypress tree in
Chapultepec, Mexico, that is 6,260
years old. Kansas City Journal.
CHRONIC HEADACHE
You can depend upon Dr. Miles Nervine to
euro chronic headache, because it removes tho
cause, by feeding and .building up th6 nervous
systom. It makes no diflerenco whothcr it bo
sick, blllious or periodic, all headaches yield
readily to its soothing influence upon thencrves
Tho flrat bottlo will benefit, or you can havo
your money back.
UNDER OTHER FLAG
9WVWHS
Me. Bryan's New Book
Travels, Speeches, Lectures.
S Ss descriSS hi P.T t?Ur Y?,a.r nB ho has bcon bos,eRCd by requests for copies of lot
other nnbUnnJirfc f a(i' ThCS l0tt0rs toethcr wlth a number of his lectures and
Scan lottc 2T5 T3 T mhrCd tOgCth0r and PMtahod In book form. Tho Euro
present "lC f 7;1SaCCOUnt0fWhathosawand lc1 while In Europe, and
Holland S? '. m "n?and- BnSton. 8" Fmnee, Switzerland, Germany, Itussla,
Stova "is visits with Count
London Ti .?!. ?" , ' ?haksvlng address, delivered before tho American Society In
SSadMoTfnn ai; Iath,3V0lu MPcar Mr. Bryan's accounts of his visits to
MtodSrtl ' w' ontorta,n,n1y of the "Birth of tho Cuban Republic." Ho l
SiXtaS and "Th0 Valu of d0V both of
Other aSosnMn inUmb0r f tImCS b0foro Chautauquas and other gathering .
o?to!JtoM"wanMon "taPorialtem." delivered on the notification
Post iTaee' Vamlng" Wrlttou for th0 Saturda ls,n"
venl'on speech Tlnl ,V T ' th nHand SocIoty dlnnor lQ ! bis St. Louis con
iuto InSE ZZrllVtTlnMOn oCSonator Coekrell. "Naboth's Vineyard," "British
cent trin S the r "J f Ph,1 SUerman Bouno". account of his re
IvZlaonu The book is illustrated, well
pnnieu on good papor and substantially bound.
tuSefr Europe," written after his re-
abroad, and giving in brief form a resume of the many interesting things ho sair.
NEATLY BOUND IN CLOTH 400 PAGE OCTAVO
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I Address,
v.
Mn I
inn UMONER, Uricok Neb.
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