interests in the general business which entitle him to all reasonable details of that 

 business. All business should be transacted in such a way as to encourage this confidence 

 and every effort made to understand the various problems of each end of the business and 

 to endeavour to solve these problems. 



To get the maximum trade it is essential that the manufacturer should be 

 given what he needs in the way of raw material, both as to quantity and quality 

 and with regularity. On the other hand, it is just as essential that the manufacturer, 

 acting as agent, should satisfy the producer that his product has been handled in a 

 business-like way, that the business has been run having in view the welfare of the 

 whole trade, and that the producer is receiving a reasonable share of the profits for the 

 product he supplies. It should be generally recognized, though it may perhaps 

 differ from the usually accepted theory, that the interests of the manufacturing industry 

 are best served by the payment of high prices for live stock, thus encouraging increased 

 production. It would appear that the greater the volume of business done by the 

 manufacturer the smaller the margin required to operate his plant and profitably conduct 

 his business. The two factors affecting this volume, without regard to ordinary com- 

 petition of trade, are the price charged the consumer by the manufacturer and the price 

 paid by the manufacturer to the producer. The lower the price paid by the consumer the 

 greater the consumption. The higher the price paid the producer the greater the 

 production. 



It therefore follows that as the profit of the manufacturer depends upon the volume 

 of business, it is in his interest to reserve the smallest possible margin on the turnover of 

 his business, so that the highest price possible may be paid to the producer and the 

 lowest price possible may be paid by the consumer. With lessened production and less 

 raw material for the manufacturer the cost of manufacturing will be increased and the 

 margin retained by the manufacturer will be greater, as the lessened supply cannot be 

 manufactured into dressed meats with the same economy as when the plants are running 

 at capacity. An increased price to the consumer will naturally follow. At the time 

 of the greatest consumption and of greatest supply of raw material, the price of live 

 stock should come nearest to corresponding relatively with the retail price of meat; 

 the manufacturers will be receiving the greatest aggregate profit but will be operating 

 on the smallest margin. 



The interests of the manufacturers will warrant preserving the balance of prices 

 between that received by the producer and that paid by the consumer, where it will 

 encourage the greatest production. So far as the producer is concerned, that price 

 must be sufficiently high to insure a profit on his breeding and feeding operations. This 

 is certainly common ground for establishing confidential relations. Confidence in each 

 other will generate a confidence in the live stock business, and will encourage the live 

 stock man to feed live stock to the full capacity of his farm and will enable the manu- 

 facturer to take care of the maximum amount of trade in dressed meats. 



BIG FALLING OFF IN BEEF CATTLE 



1910 1914 



Prince Edward Island 57,648 61,048 



Nova Scotia 180,189 148,269 



New Brunswick 110,389 99,256 



Quebec 600,277 625,958 



Ontario 1,629,364 970,445 



Manitoba 314,995 251,996 



Saskatchewan 431,164 474,436 



Alberta 926,937 633,032 



British Columbia 1911 105,230 99,091 



Totals for Canada 4,356,193 3,363,531 



108 



