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Show ' - ; I .. J - '" ' ' " . . . ' . . ' - 1- ; j . ' ' " : ' ' - T -" .1 i ' " ' ' ' i K " Are the Packers Pfi'cuf itcers? Plain Facts About the Meat Business . . : .... ::: .:. . ' , . . ' .v., .. . , -f ' ' .. - .' The Federal Trade Commission in its recent report on war profits and to provide additions and improvements made necessary by stated that the five large meat packers have been profiteering . the enormous demands of our army and navy and the Allies, and that they have a monopoly of the market. ' V ., These conclusions, if fair and just, are matters of serious concern 11 ' . . A, . . ' i .. . a uw4 If you are a business man you will appreciate the significance of II 7 not only to those engaged in the meat packing business but to ' .. II , .. ... - x these facts. If you are unacquainted with business, talk this ' n every other citizen of our country. . H I ' ',' t ; ; ... . matter over with some business acquaintance with your banker, II , ." "The. figures given' on profits are misleading and the statement' say and ask him to compare profits of the packing industry II T hat the packers have a monopoly is unsupported by the facts. with those of any other large industry at the present time. II The packers mentioned in the report stand ready to prove their profits reasonable and necessary. - 0 i.c Vp !-' No evidence is offered by the Federal Trade Commission in H ,jM' r ' 1 I II ' The meat business is one of the largest American industries. support of the statement , that the large packers have a monop- " Any citizen who would familiarize himself with its details must oly. The Commission's own report shows the large number and I be prepared for large totals. importance of other packers. I The report states that the aggregate profits of four large packers The packers mentioned in the statement stand ready to prove to I were $140,000,000 for the three war years. any fair minded person that they are in keen competition with I This sum is compared with $19,000,000 as the average annual each other, and that they have no power to manipulate prices. jj t profit for the three years before the war, making it appear that H not true would not dare to make this Positive I the war profit was $121,000,000 greater than the pre-war profit. statement. I This compares a three-year profit with a one-year profit a . . . . ; . I ' ' -v ... Furthermore, government figures show that the five large pack- I manifestly unfair method of comparison. It is not only mislead- ... I I ers mentioned in the report account for only about one-third of Q ing, but the Federal Trade Commission apparently has made a . ' I tne meat business of the country. mistake in the figures themselves. , ; . I -,-.,. -I They wish it were possible to interest you in the details of their I . . . The aggregate three-year profit of $140,000,000 was earned on . . , , . ' II , business. Of how, for instance, they can sell dressed beef for II , sales of over" four and a half billion dollars. It means about three . 4. . ... .. . . . ' .... .. .. II lt . . . ... , . T, less than the cost of the live animal, owing to utilization of by- , U " r cents on each dollar of sales or a mere fraction of a cent per . . , . " . . , ... ... ...... I ; r products, and of the wonderful story of the methods of distnbu- I B . i, . pound of product. . . . tion throughout this broad land, as well as in other countries. Packers', prof its are a negligible factor in prices of live stock and The five packers mentioned feel justified in co-operating with meats. No other large business is conducted upon such small each other to the extent of together presenting this public state- t ':,' margins of profit. ment. ' . . I lf: Furthermore-and this is very important only a small portion They have been able to do a big job for your government In its F v ' of this profit has been paid in dividends. The balance has been t!mc of nedJ they have met aU war time demands promptly and f , put back into the business. It had to be, as you realize when ' completely and they' are willing to trust their case to the fair- 1 jrou coasider the problems the packers have had to solve and mindedness of the American people with the facts before them. . , solv, nkur-teb. ti.es. war year. Armour and Company To conduct this business in war times, with higher costs and the ClldtltlY PQCkilUT Co II necessity of paying two or three times the former prices for live . " I tock. has required the use of two or three times the ordinary ' Morris & Company I amount of working capital The additional profit makes only a Swif t & GODipSiny H fair return on this, and as has been stated, the larger portion of Wil II & C II f the profits earned has been used to finance huge stocks of goods V J 11 |