OLEOMARGARINE. 805 



Mr. LAVERY. No, sir. 



Representative COONBY. And what you state is simply from your 

 best information on that subject, according to your recollection? 



Mr. LAVEBY. And from experience. 



Kepresentative COONEY. Now, there is another question in connec- 

 tion with that matter which I want to ask, and that is, if, in making 

 this statement, you meant to say that to the stock raisers of the country 

 their beef cattle are worth $2 per head more than they would be if 

 there was no manufacture of oleomargarine? 



Mr. LAVERY. The figures certainly show that. 



Representative COONEY. These $2 go, then, to the cattle raiser, do 

 they? 



Mr. LAVERY. Yes, sir. 



Representative COONEY. None of that amount goes to the oleomar- 

 garine manufacturer? 



Mr. LAVERY. Why should it? If it increases the value of a beef 

 steer, the man who owns the beef steer certainly reaps the benefit of it. 



Representative COONEY. Then the oleomargarine manufacturer and 

 the man who buys and slaughters the steer make none of this extra 

 profit; that is, they receive none of this extra profit of $2. 



Mr. LAVERY. I do not see how they could, except the profit through 

 the manufacture and sale of oleomargarine. 



Representative COONEY. Well, do they receive part of that $2 in that 

 way; and if so, how much? 



Mr. LAVERY. None whatever, that I can see. 



Representative COONEY. Do they receive any profit on the balance 

 of the beef, then? 



Mr. LAVERY. How is that, sir? 



Representative COONEY. Do they receive any of the profit out of the 

 balance of the beef, or is it all given to the cattleman? 



Mr. LAVERY. According to the method of buying cattle to day, the 

 value of a steer is arrived at by figuring what the beef contained in 

 that steer is worth, together with the by-products. 



Representative COONEY. Yes. 



Mr. LAVERY. If there is a by-product contained in the steer which is 

 of value in bringing a high price on the market, it increases the price 

 which the packer can pay for the steer just that much; but if you 

 reduce the value of that by-product $1 a head, it simply cuts off that 

 much money from the price of your steer. 



Representative COONEY. This is what I want to get at, Mr. Lavery. 

 You state that a slaughtered steer will contain about 50 pounds of this 

 fat, out of which you make oleo oil? 



Mr. LAVERY. Yes, sir. 



Representative COONEY. And that that fat is worth 4 cents per pound 

 more than it would be if it were made into lard? 



Mr. LAVERY. I said tallow, not lard. 



Representative COONEY. Into tallow, I mean ; and that 4 cents, you 

 say, goes to the stockman? 



Mr. LAVERY. Yes, sir. 



Representative COONEY. Now I will ask you if you treat the stock- 

 man, and if the stockman is treated in the market, upon the same basis 

 of the value of his steer on all other parts of the steer ? 



Mr. LAVERY. Yes, sir. 



Representative COONEY. And if he is not, why is he not! 



Mr. LAVERY. Well, he certainly is. He is given credit for all the 

 by-products in the purchase price of that steer. 



