Eagle Valley news., July 11, 1918, Image 8

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Are the Packers Profiteers?
Plain Facts About the Meat Business
Tho Federal Tradp Commission h) its rocont roport on war profits,
stated that t he fivo largo moat packors have boon profiteering and
.that they have a monopoly of tho market.
Those conclusions, if fair and just, aro matters of serious concern
not only to those engaged in the meat packing business but to
evory other citizen of our country.
The figuros given on profits aro misleading and tho statement
that tho packers have a monopoly is unsupported by tho facts.
Tho packors mentioned in tho roport stand ready to prove their
profits reasonable and necessary.
Tho meat business is one of tho largest Amoriean industrii?.
Any citizen who would familiarize himself with its details must
be prepared for largo totals.' - ,
Tho report states that tho aggregate profits of four largo packers
wore $ M0,000,000 for tho threo war years.
This sum is compared with $19,000,000 as the avorago annual .
profit for the three years before tho war, making it appear that
tho war profit was $121,000,000 greater than tho pro-war profit.
This compares a three-year profit with n one-year profit a man
ifestly unfair method of comparison. It is not only misleading,
but the Federal Trade Commission apparently has mado a mistake
in tho figures themselves.
The aggregate three-year, profit of .$140,000,000 was oamod on .
sales of over four and a half billion dollars. It moans "about
three cents on each dollar of sales or n mero fraction of a conF
per pound of product.
Packers' profits are a negligible factor in prices of live stock aii'd
meats. No other largo business is conducted upon such small1
margins of profit. ".
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Furthermore and this is very important only a small portion of -this
profit has boon paid in dividends. Tho balance has boon put
back into the businesses. It had tovbo, as you realize when you
consider tho problems tho packers lmvo had to solvo and solvo 1
quickly during these war years. " . ,
To conduct this business in war timos, with higlior costs and tho '
necessity of paying two or thrco times tho formor pricos for livo
stock, haB required tho uso of two or threo timos tho ordinary
amount of working capital. Tho additional profit makes onlv a '
' . 1 A 1 1 1 t i I t II .
iair return on uns, auu as nas noon siateu, tno mrger portion of
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tho profits named hits buon used to finanoo hugo stook of goods
and to provide additions and iiiiprovomnt8 mud) noeoMary by the
enormous demands of our army and navy and tho Allies.
are a business man you will appreciate tho Hignifluancu of
fact). If you aili unacquainted with businuxti, talk this
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theao fact
mattgr over with soino business acquaintance with your hanker,
pay and iwk him to compare profits of tho packing industry with
t.A...i r l .1 - i i!
No ovidenco is offered by tho Federal Trado Commission in Blip
port of tho statement that the largo packer lmvo a monopoly.
Tho Commission's own report shows tjio largo number and impor
tance of other packors.
Tho packors montionod in tho olalomont Htand ready tOvro,yo to
any fair minded person that thoy aro in keon competition' jv'ith
each otlior, ajid that thoy have no iowor tojnanipulato prices.
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If this wero not true they would not daro to make this positive
statement.1
Furthormoro, govommont figures show thai tho fivo largo packors
mentioned in tho roport account for only njiotit one-third of (1)6
moat business qf the country.
Tho' wish it woro possiblo to interest you in tho -details of thoir
business. Of how, for instance, thoy can soil dresapd buof for leas
than tliocost of the live animal, owing to utilization of by
products, and of tho wondorful story of the methods of distribu
tion throughout this broad laud, as well as in othor countries.
Tho fivo packors montioucd feel justified in co-operating with dauh
othor to tho extent of together presenting this public statmuout.
Thoy havo boon able to do a big job for your
limn if nnnrl' t.lwiv Imvri nw)t. nil u'lii' finwi linn
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jiii)niiiii linn tuuv uiu Hiiiinn iu iiiiBL -mim uunu in in
indednoss of tho American people with the facts before th
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L'ovnrnmont in its
mands promptly and
the fair-
om.
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Armour and Company
Cudahy Packing Co.
Morris & Company
Swift & Company
Wilson & Company
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