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year 1921 was 15,624,000,000 pounds. Of this amount Armour & Co. produced 1,587,000,000 pounds, or 10.15 per cent, and Morris & Co. 795,000,000 pounds, or 5.08 per cent.

The total sales of Armour & Co. for the year 1919 amounted to $1,038,000,000; for 1920, $900,000,000; and for 1921, $600,000,000. The total sales of Morris & Co. for the year 1919 were $400,000,000; for 1920, $370,000,000; and for 1921, $260,000,000.

PACKING HOUSES.

For the purpose of showing the large number of concerns engaged in the packing business in the United States and how widely they are scattered over the entire country, we have shown in the appendix pp. 154 to 176) a list of such concerns taken from the Packers Encyclopedia Blue Book of the American Meat Packing and Allied Industries, published by the National Provisioner of Chicago, during the year 1922. The list contains a total of 947 establishments, and shows their location, their capital, and their killing capacity where obtainable. It appears that packing companies are located in every state in tlae Union, and in some of the States there are a large number of companies operating.

We have also attached to the appendix copies of the United States Department of Agriculture Directory of the Bureau of Animal Industry, corrected to July 1, 1922, which shows, among other things, the total number of the United States meat-inspection establishments, Di numbers, and the total number of meat-inspection establishments, by stations. This will show that there are a large number of companies operating a great many Federal-inspected plants scattered throughout the United States.

In the census circular covering the Fourteenth Census of the lnited States Manufacturers, 1919, appears data from which we have prepared a statement, shown in the appendix (p. 67), showing the number of meat-packing establishments in the United States for the Pears 1909, 1914, and 1919, and also the size of the establishments, F Falue of products, together with the character of ownership of be establishments. It appears from this statement that in 1909 there were 1,221 establishments; in 1914, 1,279; and in 1919, 1,304. The relative size of the establishments is shown by value of products, and the greatest increase appears in establishments having products worth $1,000,000 and over. In 1909 there were 166 of these estabkhments; in 1914, 206; and in 1919, 310. The statement also shows lai the ownership of these establishments is distributed among

dividuals, corporations, and others, showing that in 1919, for instance, 481 plants were owned by individuals, 582 by corporations, and 241 by “all others." . There will be found in the appendix (pp. 68 and 69) statements showing that the slaughter of hogs, cattle (including calves), and sleep, at 53 points in the United States during the year 1921, taken Tom the Drovers Journal's Yearbook for that year. We have oso indicated by (a) on the statements the points at which Armour & Co. slaughters, and by (6) the points at which Morris & Co. slaughbers of the 53 points shown, Armour & Co. slaughters at but 14, and this comprises all of the points in the United States at which Amour & Co. slaughters, and Morris & Co. slaughters at 7 of the

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points, which also comprises all of the points in the United States was showi at which Morris & Co. slaughters.

xhte Arma At these 53 points during the calendar year 1921 there were fra stark slaughtered 26,267,849 hogs, 10,917,063 cattle (including calves),

uning this and 12,855,256 sheep, out of a total slaughtered throughout the

path Omah whole United States, as shown by the Government records and set

tere both forth upon the statements referred to above (appendix, p. 63),

statement of 62,172,856 hogs, 20,925,848 cattle (including calves), and 16,

TIe Tear en 707,438 sheep, lambs, and goats. The percentage which the

in total du slaughter of the 53 markets shown bears to the total slaughter in the United States is as follows: Hogs 42.25 per cent, cattle (including

si prebases calves) 52.12 per cent, and sheep, lambs, and goats 76.93 per cent. This shows that live stock is slaughtered in large quantities at a

i maurse, as i great many points in the United States other than the points at which Armour & Co. and Morris & Co. slaughter.

560, and I For the purpose also of showing how widely distributed is the

wered to. purchase and slaughter of hogs, we have placed in the appendix

to the (pp. 69 and 70) a statement taken from the price current year- te stock books for the years 1921 and 1922, showing the total packing and

omber marketing of hogs for the year from November 1, 1920, to November

2. In additio 1, 1921, at 134 different points, counting as single items such as Dets, etc. unenumerated West, other Ohio, etc., showing a total purchase ofTill the hogs at these points of 38,920,262, out of a total everywhere in the banta of th United States, including the farms, of 62,172,856.

There will be found in the appendix (pp. 71-76) statements into or other showing the total purchase of hogs, cattle, and sheep on the Chicago de stock is market, which is the largest live-stock market in the United States, for the years ending October 31, 1920 and 1921. These statements de in mi show that for the year 1920 there were purchased on the Chicago - Marke market 7,695,324 hogs, of which Armour & Co. purchased 16.14 pers. The cent and Morris & Co. 7.39 per cent. During the year 1921 there were will be purchased on this market 7,801,436 hogs, of which Armour & Co. purchased 15.35 per cent and Morris & Co. 7.69 per cent. During the year 1920 there were purchased on this market 3,226,426 cattle, of which Armour & Co. purchased 13.10 per cent and Morris & Co. muodom 10.43 per cent. During the year 1921 there were purchased on this ston market 2,922,411 cattle, of which Armour & Co. purchased 12.55 so per cent and Morris & Co. 9.98 per cent. During the year 1920 din there were purchased on this market 3,639,697 sheep, of which one Armour & Co. purchased 17.70 per cent and Morris & Co. 12.47 via per cent. The sheep purchases for the year 1921 were 4,054,859, of which Armour & Co. purchased 16.35 per cent and Morris & Co. 12.53 per cent.

It will be noted that the statement for cattle purchased during the year 1921 does not show as many purchasers as the statement for the year 1920. This is because we did not have available the figures for the year 1921 covering the purchases of all the concerns which were shown on the 1920 statement.

Under the heading “ Butchers and shippers" on the statements, . of course, the purchases of many concerns buying on the Chicago market are represented but the names of them were not available.

It will be seen from this analysis of the purchases on the Chicago market for these years, that there is a great amount of competition de toun from a large number of sources, and that this competition will not be eliminated by the consolidation of Armour & Co. and Morris & Co.

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For the purpose of showing the situation of the different live-stock markets, where both Armour & Co. and Morris & Co. have packing plants and buy live stock, we have placed in the appendix (p. 76) å statement showing this situation on the markets at Chicago, Kansas City, South Omaha, St. Joseph, and St. Louis, which are the markets where both companies have packing plants and buy lire stock. The statement shows the total receipts of hogs, cattle, and sheep for the year ending October 29, 1921, at each of these markets, also the total purchases of the respective classes of live stock by Armour & Co. and Morris & Co, and the percentage which each company's purchases of the respective classes at each market bears to the total.

There are, of course, as is well known, a number of packers other than Armour & Co. and Morris & Co. buying live stock upon the markets above referred to. The directory of packing plants which we have attached to the appendix shows that there are 43 local packers buying live stock upon the Chicago market, 12 at Kansas City, 4 at South St. Joseph, 9 at South Omaha, 30 at St. Louis and East St. Louis. In addition to these there are a number of traders, speculators, shippers, etc., all buying live stock upon these markets in competition with the packers. We have not detailed figures showing the amounts of the purchases of these various buyers, but, of course, all that are not purchased by Armour & Co. and Morris & Co. are purchased by other concerns, and it follows that the larger percentage of live stock is purchased by persons other than these two companies.

It should be borne in mind that there is competition between the various live-stock markets and shippers are not compelled to ship to any one market. They have a selection and ship to the market which they think will bring them the best price.

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What has heretofore been said has related principally to the pur-
Case of the live stock and the manufacture of the finished product.
We will now discuss briefly the methods of distribution.

There are two principal methods of distributing fresh meat and
parking-house products, the principal one being through branch houses
a distributing stations located in the larger cities throughout the
country, and the other is through car routes which reach the smaller
atles which are not of sufficient size to justify the maintenance of
branch houses. The branch houses are simply district warehouses,
most of them being equipped with refrigerating facilities according
to the class of products handled by them. These branch houses are
30 ditierent in their purpose than the distributing stations scattered
Throughout the country belonging to many other industries. They
serve the purpose of local warehouses for temporary storage. The
Tesh meat and packing-house products are shipped to these various
Oranch houses from the packing plants, principally in refrigerating
Cars: The branch houses have their own sales organizations, who
squat orders in the town where the branch house is located and in
e surrounding territory. The products are delivered by the branch
uses in the towns where situated by local delivery or by the local
ders calling for them themselves. Deliveries are made in the sur-

rounding territory either by auto, express, or freight. As stated above, the route cars are used for delivering the products to towns which are not of sufficient size to justify the maintenance of a branch house and not located sufficiently near a branch house to justify delivery by auto truck, express, or freight.

The route over which a car will travel is first selected over some particular line of railroad serving the towns which it is desired to reach. Salesmen travel over the route selected, calling upon the retail dealers in the various towns, and take orders for these commodities for delivery the following week. The route cars usually leave the packing plants so that they will reach the towns intended the following week, the orders having been made up and loaded into the car. The car travels over the route, stopping at the various towns for which it contains shipments, the products being unloaded at the stations by the railroad trainmen, and are called for by the retail dealers who have purchased them. No representative of the packers travels with the car, and no goods are sold from the car. It contains only goods which have been previously ordered.

There is also some distribution by the larger packers through consignees and brokers, and to a large extent this method is used by the smaller packer.

The above are the methods of distribution used by all engaged in the packing business, the only difference being that the distributive system of the larger packers is more extensive than that of the smaller ones, which is naturally so, of course, because of the difference in the volume of business.

We have placed in the appendix (pp. 72–74) statements showing all of the towns where Armour & Co. has branch houses and all of the towns where Morris & Co. has branch houses. We have also inserted in the appendix what we call “competitive sheets” (pp. 80– 126) showing the competition existing at the points where both Armour & Co. and Morris & Co. have branch houses. It will appear from these competitive sheets that at no place throughout the country where both companies have branch distributing agencies will the acquisition result in a control of the distributing facilities. In fact, the statements, to the contrary, will show that there is a great deal of competition at every such point with local packers, the branch houses of other packers, local butchers who slaughter locally, brokers, and salesmen of concerns located in other cities who solicit business in the particular towns. They will also show that such towns are reached in many cases by the car routes of other packers.

There is also keen competition in the car-route business because in many cases the car routes of the different packers parallel one another. Some of the towns are covered by the car route of one packer and reached by the branch house of another through auto trucks, express, or freight as shown clearly from the competitive sheets above referred to, but in all cases the principal towns covered by car routes are covered by a number of packers in one way or another, and it is safe to say that there is no branch of the business in which there is any more competition than there is in the car-route business. There is also, of course, the competition from the local butchers and slaughterers which has to be met.

It should be kept in mind in considering the distribution of these products that the fresh products which are of a very perishable is stated to towns

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nature must be sold promptly, even at a sacrifice in many instances, because if they are held for any great length of time they will deteriorate to such an extent that they will be unmarketable. In order, therefore, to accomplish the prompt marketing of these fresh products they must be shipped from the packing house within a few days after they are slaughtered. Live stock is slaughtered a day or two after it is purchased.

There are no figures available showing the amount of products sold by all packers in any particular location, but in the report of the Federal Trade Commission (pt. 1, p. 150), is a statement covering the year 1916, showing the amount of sales made by the five principal packers in a few of the large meat consuming centers of the country, including New York, Chicago, Philadelphia, Boston, Atlanta, and Washington. These figures are limited to the five larger packers and do not show the total sales by all packers in these centers, but they are the only figures available and do show the percentage of Armour & Co. combined with that of Morris & Co. is about the same 3 Swift & Co.'s, and considerably less than the combined sales of Swift & Co., Wilson & Co., Cudahy & Co., and would, of course, he Fery much less than the total sales of all packers in these centers. This statement is reproduced in the appendix (p. 74).

In this connection attention is called again to the competitive sheets above referred to, showing the competition at the above points, from which it will be noted that there are a large number of concerns engaged in the business at the points named other than those mentioned by the Federal Trade Commission in their statements.

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SECONDARY PRODUCTS.

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In addition to the primary meat products resulting from the live stock there are various so-called by-products made up in whole or in art from the remaining portions of the animals. Under the class of du may be included hearts, livers, and other similar items which burally follow the primary products. We will consider further

those products which are the result of further processing, such k soap, glue, curled hair, sandpaper, fertilizer, hides, and wool, and Audition to these items there are also to be considered butter, eggs, wiltry, cheese, ammonia, and cottonseed oil, which are not livesaek products.

We are submitting no figures on hides because our production of ples must of necessity follow our purchase of live stock, the figures for which have already been given in detail.

figures secured from the Department of Agriculture show that during the year 1921 the total wool clipped was 225,000,000 pounds, and the total wool pulled was 41.000.000 pounds, making a total of 2.100,000 pounds, of raw material produced in this country. The sumption of wool by manufacturers during this same year was 100,000 pounds, more than 50 per cent of which was imported. pour & Co.'s production during 1921 was 7,500,000 pounds, or per cent of the total wool consumption in this country for that while Morris & Co.'s production was considerably less because not slaughter as many sheep as Armour & Co.

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