Show i TF t 7 ia 0 0 U a v 1 WHO WIlD GETS TIlE THE BENEFIT E OF I INCREASED CREASED TARIFF DUTY ON II HIDES IDES Los Angeles August 16 In 16 In a rec recent rec- rec recent recent ent newspaper article the question was raised as to how far the cow cow- cowman cowman cow cowman man will feel the effect of the high high- higher higher higher er tariff on foreign hides in the sale of his cattle and the article con con- concludes concludes con concludes that the packer will not in increase in- in increase increase crease the purchase price notwithstanding notwithstanding notwithstanding standing the increased duty on the hence hide hence the public will pay the bill I In all of these questions we should form our conclusions only after a at aI I careful analysis of the facts keep keep- keeping keeping keeping ing in mind that the best policy is l I that which best serves mos most moat t of the people all an of 01 the time The reason the duty should be increased on hides hide is i because the tanner can buy hides of foreign takeoff at a price lower than our cost of production especially from froni the Argentine where production costs are lower than we can hope to ever approximate This principal also governed the Commit Commit- Committee's Committee's Committee's tees tee's action in recommending an in- in increased increased in increased creased duty o on on livestock Manifestly the purpose bf of this ii H to protect one of our greatest st reate-st fundamental indus indus- industries industries industries tries and an industry upon which succesS successful ul agriculture has always de- de dep de depended p There is a difference of viewpoint point between the producer and the ultimate consumer which can only be abridged ed by a complete under under- understanding understanding understanding standing of our underlying ing structure structure structure ture and we must harken to the fact that agricultural s success success is essential to our national welfare Our ability to employ labor and the efficiency of labor depend upon the bality of the farmer to buy manufactured pro pro- products products pro products ducts and rind to furnish an adequate food supply The turned out of an Eastern steel plant must eventually find its way to the Western farm So at the outset we must mUrt agree trat and in- in in agriculture industry are and inseparably associated Prices on ever everything thing we use have greatly advanced in recent years On the other hand these advances have been generally met by increased in- in income income in income come Thus we find relatively ely Supply and demand will alwa always s 's regulate the ebb and flow of prices prices Meat food products are sold in com com- competition com petition with every other kind of food product one the other as to price possibilities and a surplus of anyone any one thing is likely to bring down the price of other foo food pro pro- products products pro products ducts so there is a decided limit in inthe inthe inthe the selling price of beef pork and It is reasonable to assume that the increased duty on hides will be great great- greatly greatly greatly ly reflected in the live stock industry of this country because it is import import- important important important ant in determining the amount of money obtained for the merchantable products of the bullock The packer supposedly buys burs his hise l live e stock to the best beat advantage and sells his product to the best advantage advantage advantage tage The thing that influences the packer in his daily purchases is 3 i what will the meat cost on the hook book and this is determined by br deducting the market value of the offal including the hide so that themore the themore themore more money meney the hide sells s for the less the cost of the meat on the hook The packer sells the meat meal to the con consuming consuming consuming suming trade realizing realizing- all that lac he can for his product and what he re- re receives re receives constitutes S the market price for such products If the hides sell at a low price it adds to the cost of the meat on the hook and the difference must be ab- ab absorbed absorbed ab absorbed by the remaining products if ifa ifa il a loss is to be avoided Assuming that the increased dut duty on hides realy real- real ly really y means an increased cost of leather leather leath- leath er cr goods is it not best that this increase increase in- in increase crease should be made in articles of ol occasional purchase rather than in our daily meat food ration The cattle interests of the country appreciated the fact that without an ar increased tariff on hides the pick- pick picker er would immediately be confronted with a loss in the sale of the hide and that this would work a hardship en the try industry undoubtedly result result- resulting resulting resulting ing in I less s purchasing tend power power tend tending in ing to create a surplus out of wat hat wo would ld ordinarily be a normal sup sup- supply supply pI ply Price slumps logically follow surpluses and are most keenly felt feltI Lb the farmer Thus the conclusion conclusion conclusion sion seams ems justified that the better I the outlet for all of the products of the animal each one carrying carr ing its share of the load the nearer he t packer can come came to dis- dis distribution distribution dis distribution of costs and stabilization of his business all nil of which goes to the point of sustained purchasing power The tanner also supposedly ly buys the hides to the best advantage and sells the leather to the best advantage advantage advantage tage meeting the competition of many called so-called so substitutes for leather leath leath- leather leather er including the snake family parti parti- parti- parti particularly particularly in the manufacture of shoes so SIO that the tanner has very little to t say about the price of leather The laws of supply and demand deman still prevail and govern every feat feat- feature feature feature ure connected with live stock production production production tion and the distribution of meat food products and while we may not be able to find the increased duty branded on each hide of the critter purchased from day to day dw yet we know that it is a material factor and andone andone andone one of great reat benefit to the industry as a whole It is good business to protect our basic industries and we should en- en en deavor endeavor to strengthen the public con con- con confidence in eVer every feature of this im- im important important im important industry from the grass grassroots grassroots roots to the table The situation is much like the proverbial chain no stronger than its weakest link and the packer is and probably factor always in win will be an a im- im I imI i our meat food dis- dis distributing tem system I |