676 ax:n^ual, reports of department of agriculture. 



act, and a vast amount of correspondence has been and is being con- 

 ducted in an effort to determine the proper status of these concerns. 



The resuks of a simihxr survey of the financial affairs of the pack- 

 ing industry conducted in the previous year were used as the basis for 

 figures furnished to the Senate and published in response to a Senate 

 resolution in connection with the question arising out of the acquisi- 

 tion of Morris & Co.'s business by Armour & Co. 



A thorough investigation of the financial and accounting affairs 

 of Armour & Co. and Morris & Co. is in progress in order to aid in 

 arriving at a proper understanding of the issues involved in the- 

 formal proceedings instituted by the Secretary of Agriculture. 



ECONOMICS. 



DOMESTIC ECONOMIC PROBLEMS. 



Various economic problems in connection with the livestock and 

 meat packing industry involving the Packers and Stockyards Ad- 

 ministration both directly and indirectly have been given attention 

 during the fiscal year, and as an indication of the nature of such 

 problems brief reference is made here to some of the typical ones. 



THE EASTERN LAMB MARKET. 



In cooperation with the Bureaus of Animal Industry and Agricul- 

 tural Economics, the Packers and Stockyards Administration has- 

 given considerable attention during the year to efforts intended to 

 stabilize conditions on the Jersey City lamb market. In this effort 

 representatives of growers' organizations. State bureaus of markets, 

 and the agencies of distribution at Jersey City and New York have 

 assisted for the purpose of eliminating violent fluctuations in prices,, 

 as far as this could be accomplished by proper means. 



New York City is the greatest outlet for mutton and lamb in 

 America. The Jersey City market is its gateway. If prices drop to 

 unduly low levels or fluctuate greatly there, the situation is reflected 

 in lower or disturbed prices all over the country. The period of 

 greatest disturbance occurs during June, July, and August, when 

 the bulk of shipments comes from Ohio, Kentucky, Virginia, West 

 Virginia, Tennessee, Pennsylvania, and New York. The situation is 

 complicated by the fact that, in addition to eastern receipts, large and 

 varying amounts of live and dressed lambs are received direct from 

 western markets by eastern packers and packing connections. 



Investigations soon disclosed that some of the causes of the trouble 

 were remediable. Lambs and sheep that were properly docked and 

 trimmed and well finished suffered relatively little from price dis- 

 crimination. Inferior qualities brought from 50 cents to $1 per 

 100 pounds less than the desirable market grades. 



This cooperative work is being continued during the new fiscal 

 year. A number of demonstration shipments have been made and 

 extension livestock agencies in the various States have taken ener- 

 getic measures to improve the quality of shipments. The commis- 

 sion and other agencies in New York and Jersey City have helped 

 distinctly by seeing to it that well-finished animals brought their true 

 worth. 



