THE PROFITS 381 



system of several plants, with transportation lines and marketing 

 facilities, is not so large as seriously to hinder new competition 

 in case a very high margin of profit should be maintained by the 

 present concerns." 



Little fresh beef is sold to dwellers in the country. In fact a 

 large proportion of the packers' beef is consumed in a few large 

 cities. The packers might by predatory competition and price 

 cutting in one locality, drive out a competitor, and recoup in other 

 localities. But, says the Report, such a practice was unlikely, 

 for the cutting of price in any of the large cities would mean a 

 general reduction in that entire local market. 



(4) The Price Question. " During the year from July 1902, 

 to June 1903, these packers slaughtered at the selected plants 

 2,017,864 cattle. The average live weight of these cattle was 

 1,092 pounds, and the actual average cost $4.45 per hundredweight, 

 the cost per head being $48.58. The cost of operation and adminis- 

 tration at the packing plants averaged $1.90 per head, making 

 the total cost $50.48. The weight of the beef derived from these 

 cattle was equal to 55.68 per cent of the live weight, or 609 pounds 

 per head. The average net selling price of the beef was $6.47 per 

 hundredweight, or $39.32 per head. The net value of by-products 

 from the cattle was $11.96 per head, making the total proceeds 

 $51.28 per head. This showed an average profit of 80 cents per 

 head, or 13.1 cents per hundredweight of dressed beef." This is a 

 profit of about % of a cent a pound on the beef sold. 



"For the year from July 1903 to June, 1904, the computation 

 covered 2,013,658 cattle. The average live weight was 1,115 

 pounds, and the average cost at $4.15 per hundredweight was 

 $46.23 per head, the total cost, including killing, etc., being $48.19. 

 The average selling price of the beef was $6.25, or $39.26 per head, 

 the average dressed weight being 629 pounds. The net value of 

 by-products was $9.75 per head, or more than $2 per head less 

 than in the preceding year. The total proceeds of the beef and 

 the by-products were $49.01, leaving a profit of 82 cents per head, 

 equal to 13.5 cents per hundredweight of dressed beef." 



(5) The Profits. This Report states the profits of two of the 

 large packers, based on the total volume of the year's business, 

 the figures for Swift & Company being 1.9 per cent, and for Cudahy 

 & Company 1.8 per cent. 



The 1912 Case. A lawsuit was carried through the courts in 

 1912, with a regular jury trial, to decide the question of "monopoly 

 control." It was found by the jury that no monopoly existed. 



