The Bourbon news. [volume], July 09, 1918, Page PAGE SEVEN, Image 7

About The Bourbon news. [volume] (Paris, Ky.) 1895-19??

Image provided by: University of Kentucky, Lexington, KY

                
TUESDAY, JULY ? 1918.
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THE BOURBON NBWS, PAEIS, KT.
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Are the Packers Profiteers?
Plain Facts About the Meat Business
The Federal TradeCommission in its recent report on war
profits, stated that the five large meat packers have been
profiteering and that they have a monopoly of the market.
These conclusions, if fair and just, are matters of serious
concern not only to those engaged in the meat packing
business but to every other citizen of our country.
The figures given on profits are misleading and the
statement that the packers have a monopoly is unsup
ported by the facts.
The packers mentioned in the report stand ready to prove
their profits reasonable and necessary.
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The meat business is one of the largest American indus
tries. Any citizen who would familiarize himself with its
details must be prepared for large totals.
The report states that the aggregate profits of four large
packers were $140,000,000 for the three war years.
This sum is compared with $19,000,000 as the average
annual profit for the three years before the war, making
it appear that the war profit was $121,000,000 greater
than the pre-war profit.
This compares a three-year profit with a one-year profit
a manifestly unfair method of comparison. It is not only
misleading, but the Federal Trade Commission apparently
has made a mistake in the figures themselves.
The aggregate three-year profit of $140,000,000 was
earned on sales of over four and a half billion dollars. It
means about three cents on each dollar of sales or a
mere fraction of a cent per pound of product.
Packers' profits are a negligible factor in prices of live
stock and meats. No other large business is conducted
upon such small margins of profit.
Furthermore and this is very important only a small
portion of this profit has been paid in dividends. The
balance has been put back into the businesses. It had to
be, as you realize when you consider the problems the
packers have had to solve and solve quickly during
these war years.
8
To conduct this business in war times, with higher costs
and the necessity of paying two or three times the former
prices for live stock, has required the use of two or three
times the ordinary amount of working capital. The
additional profit makes only a fair return on this, and as
has been stated, the larger portion of the profits earned
hs been used to finance huge stocks of goods and to pro
vide additions and improvements made necessary' by the
enormous demands of our army and navy and the Allies.
If you are a business man you will appreciate the signifi
cance of these facts. If you are unacquainted with busi
ness, talk this matter over with some business acquaint
ance with your banker, say and ask him to compare
profits of the packing industry with those of any other
large industry at the present time.
No evidence is offered by the Federal Trade Commission
in support of the statement that the large packers have a
monopoly. The Commission's own report shows the large
number and importance of other packers.
The packers mentioned in the statement stand ready to
prpve to any fair minded person that they are in keen
competition with each other, and that they have no power
to manipulate prices.
If this were not true they would not dare to make this
positive statement.
Furthermore, goverment figures show that the five large
packers mentioned in the report account for only about
one-third of the meat business of the country.
They wish it were possible to interest you in the details
of their business. Of how, for instance, they can sell
dressed beef for less than the cost of the live animal, ow
ing to utilization of by-products, and of the wonderful
story of the methods of distribution throughout this broad
land, as well as in other countries.
The five packers mentioned feel justified in co-operating
with each other to the extent of together presenting this
public statement R?
They have been able to do a big job for your government
in its time of need; they have met all war time demands
promptly and completely and they are willing to trust their
case to the f airmindedness of the American people with
the facts before them.
'
Armour and Company
Cudahy Packing Co. ,
Morris & Company
Swift & Company
Wilson & Company
(
ALLEGED PRO-GERMANS AR
RESTED AT COVINGTON.
COVINGTON, KY., July 8. A
group of 'prominent Kentuckians,
living in and near Latonia, were
summoned into court early Thursday
by Covington police and members of
the Citizens' Patriotic league. The
men, including several widely known
business men, went to Covington
police headquarters and remained
there until a special "Court of In
quiry" was opened by Judge Read.
Henry Feltman, tobacco dealer,
Taylor Mill road, near Latonia, Ky.
C. B. Schoberg, former magistrate
of Latonia, shoemaker.
J. Henry Kruse, secretary and
treasurer of Bavarian Brewing com
pany, residence, 3625 Park Avenue,
Latonia.
Jake Momberg, tailor, 3907 Hunt
ington Avenue, Latonia.
The "Court of Inquiry" had been
called and the men summoned as the
filed with Judge Read by Common
wealth Attorney Blakely of Coving
ton. In the "information"
it was alleged that the men have
been "guilty of divers and sundry
treasons."
Sensational statements alleged to
have been overheard through use of
a dictagraph placed in the First Na
tional Bank building, Latonia, con
necting with the shoe store of C. B.
Schoberg, one of the men summoned,
were the basis of the action and were
put in form to be presented to the
"Court of Inquiry." The Citizens
Patriotic league of Covington,
through .Commonwealth Attorney
Blakely, had been making the investi
gations in Latonia for four months,
Mr. Blakely said.
The following, according to the
evidence submitted at the Court of
Inquiry in Covington, are extracts
from the dictasrraDh records of con
versations at meetings inthe Scho
berg shoe store. The names oi tne
men supposed to have uttered the
statements were given in the record.
"Germany knows more about war
in a minute than the United States
can ever know. The United States is
worn out."
"If Germany is successful in get
ting the territory they are after, then
the U. S. had better look out."
"American will be another Ru
mania. The U. S. is not training
their men. enough; they are just mak
ing more cannon fodder."
"I 'see where they have sunk three
ships that the U. S. sent over."
"The Germans are giving the Allies
p.n introduction to the fighting game;
look out for hell from now on."
"We will show these d fools
over here something."
" I hope the Germans tear through
France like they did in Belgium,
then they will be in a position to
control the seaports and give America
hell."
"Germany is going through like a
streak. Things look rosy all 'round."
"I knew about the rotten condi-
9
tion in cantonments, but have to keep
my mouth shut if I don't want to go
to jail."
"It is all right to sink transports
coming back, but what we want is
to sink them going over and kill
ever d one of them."
(Speaking of a German general) :
'"He licked the Russians and will
lick the English, French and Ameri
cans." "I am getting sick of cornmeal. I
wish the Germans were in Paris al
ready, then it would be over now.
The only thing that saves the U. S. is
the ocean. The American soldiers
are poltroons and bums."
"I hope the big Berthas have got
everyooay guessing. You can't hold
the Germans back. I see where tney
have sunk three ships the U. S. sent
over."
The accused men were placed un
der arrest on Federal warrants " fol
lowing their arraignment in the 'court
of inquiry. The same court room
then became a United States tribunal
and Federal Commissioner M.
B. Bell succeeded Judge Read on the
bench. The eight men pleaded not
guilty to the charge and preliminary
hearing was set for Friday, July 12.
They were required to execute bond
in the sum of $15,000 each, except
Herman Rawe, who was released on
his own recognizance, testimony hav
ing shown that Rawe, who is very
deaf and adyanced in years, had
stoutly defended the Red Cross when
it Avas attacked by a man in Scho-'
feergs store. ' """
SOLDIERS AND SAILORS CAN NOW
GIVE LOCATION.
American soldiers and officers sta
tioned at posts behind the front may
reveal the secrets of their where
abouts to friends and relatives at
home, according to a new ruling of
the army authorities. They may in
dicate freely that they are at Tours,
or at other behind-the-line posts and
may receive their mail so addressed.
It is still forbidden, however, to
send to America, or anywhere else
for that matter, any picture post
cards of the places where the troops
are stationed. The base censor does
not feel like -taking a chance on
sending out photographs that might
come into German hands.
CHAMBERLAIN'S TABLETS.
These tablets are intended especi
ally for stomach troubles, bilious
ness and constipation. If you have
any trouble of this sort, give them a
trial and realize for yourself what a
first class medicine will do for you.
They only cost a quarter.
v (adv-july)
It is not surprising that the Tur
kish loan has failed. You 'coujd
hardly expect a Turk to Tiave enough
trust in himself to lend himself
money. t
The Bourbon Laundry
DWIS & FUNK, Props.
Telephone No. 4.
West 5 Street
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Bourbon Laundry,
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