HomeMy WebLinkAboutThe Signal, 1917-7-26, Page 6e 'I IU PSDAY, JULY 26, 1417 ."
National Service
The need of the couutry de-
mands trained women to take
Ineai . places et ltauk', wholesale
houses. railway and all types of
business offices.
Are you ready to do your
share
This is what you cau do.
You can take a man's place in
the business world and earn for
yourself a good income at the
same time.
The more you kuow the more
you cau do.
If you are interested in "do -
your bit" we shall he pleased
ve WI particulars of our
Cour: by means of which yon
can fit 'ourself to render effic-
ient sery e to Canada in her
tiatrof nee
School of Commerce
CLINTON, ONTARIO
B. F. WARD, B.A., M.'Accts.
PHONE 208 :rlatipal
School Opens Tues.,
Sept. 4, 1917.
v
DECLINED $7,500 SAADT
TO SERVE PUBLIi. ,FREE
auecn.w,r. to McDonnell a filed hill
EXCLUSIVE AGENTS FOR
LEHIGH VALLEY
THE COAL THAT SATISFIES
We deal in Hard and Soft Coal,
Lime, Cement, Fire Brick, Fire
lay, also Hard and Soft Wood,
plc and Hemlock Slabs.
F tcars of Lime and
Cent just received.
OFFICE HONE - - - - I.,
B. 3. Santis' Residence 275
W. W Saults' Residence 202
olliseteeweisateSseiesiNOWIPtiletsweletieWe
New Perfection
Oil Stov
Why not econo hhise
using less coal or w
The New Perfection Oil
Stove is just what you
need. We have them
for sale-- three -burner
and four -burner Stoves.
Call and See Them—
W.
hem—
W. R. PINDER
Phone IC.'. Hamilton Street
GIRLS WANTED
For osteo work to 11l1 the placen of
men who nave gone or ate going In the
front. Young women can remit the
rottidry real service by prenatitK to
twee puaitnoun in bank, and bustaeae
oniem.
Ayer hal Conr*en of training In itook-
keepbig. Stto,thand and all other l'om-
n.errial .nbjeete now in iregrww.
Ft eAwut.. admitted :u., lime. III not rated
r+l, Imus (r. ,
Northern Business College, Ltd.
I,N'IN t1Ul15It. UNT.
0. A. FLILMIN0, Principal.
*Ohne**
6 = rya ''.1;
MR. JOHN G. KENT. a man of
wealth and extensive business in-
terests, who has refused to accept
any remuneration whatever for hie
services as General Manager of the
Canadian National Exhibition, pre -
(•,(erring to serve the public free of
charge. He'Ia President of the To-
rontd Board of Trade and has been
on the Exhibition Board dace 1905,
always showing a close interest in
the work. Fre-wits President In 1912-
13, the two beat years -In the history
of the institution.- Mr. Kent is head
of the Boy grouts In Toronto and
1s Ideetifled with many philanthropic
enterprises. Ldne: and continued 111 -
nese has compelled Dr. Orr, Manager
since 1905, to seek a long rest.
MacEW.itn Estate
Exclusive agents for
SCRANTON
COAL
for Goderich
and District.
Best Coal Mined.
Any quantity hest all Maple
Slate, Mired Wood, Hemlock
and Kindling (Cedar or Pine.)
TELEPHONES, Mere ea
rendeece 212 `it M
ST. AUttiUSTINiv.
(Intended for b,a week.)
TrltaIAY, July li.
News Nu'ra —Jiro. 9peeeer, of
Toronto, and Mire Arniatrbns, of
Be time's, ase visiting et Wm. 'ibontp-
.on'u.... Miss 'Kate Bropby. of De-
troit, is apendinlr her holiday. at her
home here Rev. Father Murray.'
of 'fcrunto, visited in this vicinity
last week John Glen has started
bedding the wall under An.hsnse
Brophy's shed.... A number of
young people frow this vicinity at-
tended the garden party at Dungan-
non " on Monday evening -Mss
'Nora Gomm, of Dungannon, .pent tbe
weekend with friends here. Rev.
Jatnee Wilson, of Toronto, visited his
brother on the 7th concession haat1
week Mn. Richard Miller and
children, of RRosetowo, Sask., are visit-
ing at Wm. McAllister's this week.
Mr. and Mrs. and Master Frank
Phalen, of Goilrrich, and Mei. John
Phalen and children. of (liven Sound,
&pent -Sunday at (iiilh.rt Grieves'.
A pessimist like; a thing he can't
enjoy and an optimist enjoys a thing
he can't like.
CONSERVATION
SONE little time ago the C. .. R.
realising trot economy In toe
use of food products was an
essential of true patriotism doting the
war, inaugurated a policy In coonao-
tion with their dining car service
wblch ptobtbfted the purchase of
calves. young lambs. little chickens,
and baby pigs, as result of *bleb
thouuI1de-DFCtlrasj tender nut imma-
ture animals w1110 be conserved w
fuller growtb and a very tnatertal in-
crease In thetr value as food supply
will result. This action was due to
the beitet that In the face of the seri-
ous food shortage which the present
world crisis threatens to bring upon
us, It is criminal to waste an ounce
of food or to indulge in eights which
are secured to -day at the lost of to-
morrow.
The practice has been extended tp
embrace all services operated to top
Canadian Pacific; and ether Cauadtad
and American noes reeognlslne the
lmportauce of tbis plan 61 eobeerva-
tlon or young stock, have mod •
similar course.
The Canadian Pacific di as car
service has aq contrived t t the
high cost of loving does not es in -
;afar as that service to coneereed,
it always being possible to obtain. to
a Canadian Pacific dining car. a good
Ee.sal at • moderate price. 'Min Las
n made possible by making a close
udy of the traveller's wants and
root's* portions lett nseaten wbkh
on convinned the company that the
old establl,bea custom of serving ex-
tremely large portion* was wasteful
'and extravagant. The result was that
moon the war broke out and the
price of foodstuffs began to soar the
argument was advanced that *miller
Mt satisfying portions et reasonable
prices would better meet the epee.
Eon Nan the former large portions.
libel maintenance of which weeld have
dmeessltsted h/goer primo with much
'caste. The dletetsc b9.nd.d menus
were then introduced, first out of
consideration for weak digestionsbut
otic with the eoemomlc viewpoint that
it costs ler to have a menu compos-
ed of a few dishes for which tbere la
likely to be • general demand than
it doss to offer a bundred dtehea tbs.
d.m,and for any nee of which Is uta-'
'.rima. This brought shout the intro-
daetlon of the single onetime or indl-
vidasl service. particularly for the
tssaeet of lady travellers. who. as a
rule, are lees beavy esters than ism.
to the practical form or price ear*
trot and food romeovatfnn. the C. P1
R. dining CST iyatem has lie s MIM(
shirtba HOP ta omission tram their,
means of all Allahee eonststing et that
lima or emcee voting navies. WWI
,Ntcsen.1. and baby Mrs LAM -
a. aw..`ibre.ada and tetra fiver
Am are no longer perehsls.d fir SOW
0641 C. P. Ft service, oe the ge
.that the 4...I(.p.d eenyal
jeer• forwl for the nation and
Moly bill crews ashes* abeate
yiaenghtered-
Ne,tel.•re-,t:"?t^i a•`x,°:. .^ i�A',-''''ti.':1
TIM SIGNAL - GODICH,- ONTARIO
A'
Alleged Profits ot`�fh William movies Company in
116�nBacoflhisIiticated by Department of
Labor to be rive Cents per Pound, Untrue:
Actual Profits ?Ivo -Thirds of a Cent per Pound
THE statement issued by the Department of Labor concerning
the business of The William Davies Company Limited has
been given widespread circulation throughout the country and
provoked public unrest.
Whatever the technical wording of the report was, the effect has
been that the newspapers have published that "the profits on Bacon
alone" of this Company "for 1916" were about "five millions of
dollars." This interpretation of the official report is not surprising
in view of certain statements that the Commissioner of the Cost of
Living makes. The Commissioner is reported as saying that
"There were two individual cases of profiteering in 1916 and that
had these cases occurred since the passage of the cost of living
Order -in -Council. he would consider it his duty to recommend that
the facts be laid before the Attorney -General for consideration as
to their criminality." The situation crested by such erroneous
and damaging statements is serious as emanating from a Govern-
ment official, from whom one looks for not only accurate statements
but correct conclusions. •
The William Davies Company, being a private concern. has fol-
lowed the practice of all private corporations, except when it made a
bond issue in 1911, in that it has not published reports of its assets and
liabilities or profit and loss. The present circumstance, however, in
which a Government Official has led the public to false conclusions,
makes it advisable for this Company, for both the public interest and
its own interest, to publish particulars of its business as well as point
out the error ofthe statement of the Government Official.
For the last fiscal year ending March 47th, 1917, The William Davies Com-
pany bought and killed 1,043,000 head of Live Stock (Cattle, Hogs and Sheep.)
This, phis purchases of outside Meats, produced 100,000,000. pounds of Meats.
The Company handled 6,550.000 pounds of Butter and Cheese, 5,850,000 dozen
of Eggs, and manufactured 48.500.000 tins of Canned Goods.
The net profits on these were .68 cents (or two-thirds of a cent) per pound on
meats, 1.04 cents on Batter and Cheese, 1.04 cents per dozen on Eggs, and .47
cents (or slightly leas than one-half a cent) per tin on Canned Goods. These
profits include profits on all By Products derived from these accounts.
During the year the Company servea at its retail stores 7,500,000 customers,
the average purchase of each customer was 35c., and the net profit upon each
sale was 5-8 of 1 cent.
The turnover of the Company from all its operations for the last fiscal year
ending March 47th, 1917, was $40,000,000. The net percentage of profit upon
this turnover, after deducting war tax, was 1.09 per cent., or including war tax
J
3.45 per cent.
The William Davies Company baa assets of $13,385,000 of which $$,96L000
tied up in fixed investments.
To provide the necessary facilities for the increased volume of business the
COnipany expended 9750,000 in buildings and equipment during the year.
('ompaniea of other character present no more reasonable statement of profit
and loss based upon the investments made in the business.
The William Davies Company offered to the Imperial authorities, as well as
to the War Office Service (which represents the Imperial authorities in Canada)
to place the output of its Factory with respect to Bacon supplies, Canned Beef
and Pork and Beans at the service of the authorities, on tate basis of cost plus an
agreed percentage. These offers were successively declined as the authorities
evidently desired to purchase in the open market, and on this basis The William
Davies t'ompany has secured War Ofcebusiness by open competition With the
world.
Respecting the Report of the Commissioner on the Cost of Living:— :
Last Ranter the Commissioner. under authority of
Order -in -Council. required packers to submit statements
under oath for some years back and up to December lit,
1911$, of incoming stocks of Meats and the cost of such. as
well as statements of outgoing product and the aelliag value.
This Company represented in writing at the time that the
information as specifically required was opt in accordance
with i-acking House, Accounting methods. and invited the
Commissioner to send an Officer to the Head Office of the
Company to examine the books for any information desired,
and to secure a viewpoint as to the best way of collecung
data which would be of use to the Government, This offer
was declined. and there was nothing to do but 611 is she in-
formation required as literally as we could determine it.
For example, there was no recognition of the fact that a
raw product may enter a factory 'andel:a specific classification
and leave the factory ash finished product under some other
classification.
We submitted a series of accurate figures based upon our
interpretation of the official requirements which made no
provision for charges of any description other than incoming
freight and unloading charges to be included in the cost or
to be deducted from tbe selling price. There was nothing
in the report which could be read so as to determine a profit
and loss statemed'i. ?he very fact that with, only a statement
based upon cost of raw products and value of sales in Great
Britain a Government Official has deduced "Large margins,"
"Profiteering" and "Criminality" if it had occurred since
the passage of a recent .Act, shows too dangerous • trifling
and incapacity to be permitted to deal with any important
situation. The statements of this Company have been treated
by the author of this report as if the out -going product was
identical with the incoming product, and from tbe series of
reports he has singled out two items—the Bacon and Egg
reports—and from them deduced an erroneous "margin"
which the newspapers have interpreted as "profit." The
author of the inquiry shows a strange lack of even a funda-
mental knowledge of simple bookkeeping and a dangerous
inability to co-ordinate figures. The following are specific
and outstanding errors in the report:
The principal item that is causing excitement deals with
cold storage bacon. The term "cofdestorage" is not defined,
and the public is allowed to make its own definitions. As all
Bacon in a packing house is under refrigeration it is really
all cdid-storage, and therefore this Company's figures of
cold storage Bacon sepreaent the complete quantity of
Bacon handled in its entire Plant, whether in freezers or in
process of Dore for immediate shipment. That some com-
panies interpreted cold -storage product as "freezer" product
only is evidenced by the smallness or entire lack of
figures on the Baeen list for some Plants. indicating that many
Firms did not submit statements of their complete stocks.
as did this Company. An Official of this Company pointed
out this cold -storage distinction to Mr. O'Connor and Mus
McKenna in Ottawa a few weeks ago, and the failure to make
the distinctiodvafter having had it pointed out evidences lack
of desire for accuracy of the real information desired.
It is true The William Davies Company. in 1916, exported
97.791.000 pounds of Bacon, but we do not know how the
margin of 5 05 cents per pound is arrived at by Mr. O'Connor,
as there were no figures to justify such a cow -Moon. The
probabilities are that the margin is arrived at by taking the
average cost per pound of incoming product from the average
selling price per pound of outgoing product. This may be
a, rough way of estimating the grass margin whets dealing
with small figures, but when dealing with figures the size
that Mr. O'Connor has to deal with, a very small fraction of
a cent per pound of error makes a very importariadifference
in the total, and one must be careful to make *lee that the
outgoing product is the same finished merchandise of the
incoming product reported on.
Allowing it to pass, however. as a rough estimate, we
wish to point out—(first)—the inquiry of the Commissioner
allowed only for incoming freight and unloading charges.
and made no provision whatsoever for operatnyt charges of
any kind. such as labor, curing materials. ref,iserarion, et
cetera. Such actual charges on the 97.791,900 pounds
exported were 1;1,102000—or 1.2 cents per pound. This
amount covered ailtchargee Vp to the point of piecing the
Bacon on cars f.o.b. packing -house. In addition to this was
the actual cost to land and sell this 97, 91,0(5) in Eng-
land after leaving the packing house, w ich in charges
of 2.9 cents per pound --fir $2,836.000. Thus T9 cents per
pound included inland and ocean freight, lanai cleanses. war
sad marine insurance, cables, stud selrng cot toagents.
The octan freight and war risk alone w mate up 2.4
cents of the charge of 2 9 cents per pond. 'ilius 1 S cents,
plus 29. soots—a total of 4.1 teals—must be ed frorn
Mr. O'Cnnnor's margin of 5.05 cents per powaitl. haying a
margin of .itfi cents, or sdielitly less than a Beat per pound.
which still has to be reduced herau!e of the caw al premises
and because of further factors which have to Ise moldered
to determine net peofits.
It is quite evident some of she other packers did not
show setting values in the country in wheal the goods were
The Company does not challenge either the legal or moral right of the Govern-
ment to investigate business enterprises when public interests directs such an
investigation should be made. If an investigation of the packing and meat
business is ordered, the Company will place at the disposal of the Government
not only the data it would be required to supply under Order -in -Council
directing that inquiry be made. but will place the experience of its officers
at the disposal of the investigating committee, if it is considered they can
render any service which will be of value. The Company has not now—nor
at any time during the fifty years of its operation—anything to conceal in method
or practice of carryief( on its business. It does, however, claim the right to con-
duct its export business without abusive comment from Government civil
servants --especially when the conclusions drawn from the data asked for are
improper and false.
One of Canada's chief export industries is the packing business. It is essential
to the live stock industry, and. along with other export industries, it maintains
the financial stability of this eountry, and should. providing it is on a sound basis,
receive encouragement and not slanderous abuse. In view of the publicity
given to the report of the Commissioner on the cost of living, the Company
demands the same publicity in having an official Government investigation of
this report to determine the truthfulness or untruthfulness of its conclusions.
We do not seek public consideration as a company, but we do say that untruth-
ful official statements, or statements the effect of which is to create an untruth,
sold—a proceeding quite proper. as the forms submited to be
filled in were indefinite and ambiguous, thus permitting web -
out charge of evasion a variety of interpretation as to the
information required. It is thus possible that of all she
figures submitted by the different packers that no two seas
of costs and sales priers are determined at the since common
point. It tit this difference of interpretation of what was
required that accounts for tote difference of the alleged
"margin" made by the ditfereat companies. common
conclusions, however, have been drawn by the author of the
report from varying bases of premises.
The figures of the Egg hwsinese were,suhmitted on the
same basis as Bacon, and similar deductiuos must be made.
(Second)—The above margin is further reduced in that
the author of this ingiftry singkc9 nut the -Dania figures as an
item in which the selling price shows an alleged itnpvOper
advance over wet, but he did not give us credit he the
statements of other products, of which figrres were sub,u w I
the selling prices of which were ander cent. The reason
of this was that through failure to inQ{1ire the Department
entirely overlooked tbe fact that prnduct may coupe in as
pork and. through the process of manufacture. go out as Baton
or, in another instance, enact the factory as beef and go out in
the form of canned meats: Inc example: much of the product
which came in as pork. and which was entered on the post
sheet submitted to the Commissioner—alxut which be makes
no retention—,was erred and left the factory in the dorm of
Bacon, and *as, therefore, entered on the outgoing shot of the
Bacon sheet—the result is that the Bacon sales are increased
by this amount over the incoming stocks of Baron, and, libr-
wise, the sheet showing sales of pork is reduced by the animal t
that went out in the farm of Bacnn. if the Department
takes one set of figures that show favorable to the Company
tbev should take another set of figures that show unfavorable,
as the principle in either case is tbe same, and failure to do so
looks as if the author of I4te regnrt was exereiong more
enthusiasm than sound judgment in his invesligatroM,
(Third)—rt is queried is the report, that "if the margin of
3 47 cents," alleged to have been reside in 101.5, "pas satis-
factory. why was-it..plememy kaehbw-irtereased margin in
1916?" Assun+ ie again for thi moment the, 'soundness of
the premises ie asking such a gneslion based on an erroneous
"martin ", it will be fosnd that the increased margin is chiefly
absorbed in increased ocean freight rates and war risk in-
surance in 1916, of which apparently the author of thEreport
was in ignorance.
adversely agent the live stew industry of thisennntr', which is so vatuahte and
essential a wealth -producing er and, in the long run, are harmful to the very
people that the statem�enat seekks t benefit.
if the passing out `etc existence Of a corporation such as The William Davies
Company, or if nationalization of packing houses would materially and per-
manent,' redw-e food prices. then in view of the present world tragedy it ought
to be consummated without delay. The fact of the matter is, however, that
with millions of people in Europe turning from producers into consumers becanse
of the war, and the tremendous destruction of food products incident to war,
there is no remedy for the high prices of fond white such conditions last, except
the remedy of thrift and increase of production.
Long before there was talk of a Food Controller in the United Statlts or
Canada The William Davies Company urged the Government at Ottawa, in
writing, to appoint a Food Controller with full power to do what he saw fit, as
we realised at that time the upward tendency in the price of food ceammoilities
unless oheoked by official effort. At the most a great des) cannot be done in
re4`lttcing food prices while currency is inflated and until the scale of prime of all
kinds of commodities declines also. What can be done can only be done by a
Food Controller. We wish to point out that nothing at all can be accompliehed
unless the data secured are accurately and clearly made and the deductions
therefrom sound. Only public harm arises from dangerous incompetency
in the haphazard collection and careless use of important figures.
As far as The William Dories Company is concerned this terminates all public statements of the Company. and it will pay no more attention to speculative
and haphazard statements made Maier by newspapers or civil servants. The only further statement that will be made will be at an official investigation,
Toronto, July 17th, 1917
E. C. FOX, General Manager
THE WILLIAM DAVIES COMPANY, LIMITED
WiN THR WAR.
Ontario Liberals Stand Behind Laurier in
War -time Endeavor.
A conference of Federal Liberal
meinb.rs from Ontario and Liberal
eondi4ates for Ontario Beate in the
Hous. of Common. was held on Fri-
day at Toronto in the rooms of the
Reform Association. Mr. W. A.
(iharlton, M. P., was appointed
chairman.
No formal resolutions were passed
at the conference, but every member
and candidate present Mats given and
accepted the npportninity to state bis
convictions. At the conclustoa of the
general discussion Hon. Georg* P.
Graham took the os' stir of the $spher-
ing 'a to the unanimous opinions
reached. Thee. were eummarhu+d and
unanimously endorsed se follows :
"That the platting forth of ()amides
whole effort. towards winning the
war is the first consideration of party
peltey and party effort.
That the patriotism, Integrity of
purpose and atateemansblp of Mir
Wilfrid Laurier is unquesti9ned, and
that, under his Dominion leadership
the coming campaign will he fought
and won.
•
"That there should be no etttensioo
of the present Parliament, but that
an appeal should he made to the
people for a new Parliament and a
new administr,.tinn.
"That the war •dminlat•ation of
the Borden (L•ve.nmeni due.. , o• war.
cant any fno. n r t, lot by the ,,. •,,le of
Canada.
'That at the present time and ander
the 'eats of the present Government,
coalition dr union government of
Llherais and Oeneervativee Is im-
praetioanie and undesirable.
"That before attempting an enfnrn.-
ment of the present eoneeription
measure, and having regard to ill
national conditions, there should he a
united and whole -hearted effort, under
the voluntary system, and that oon-
tempotimeoualy there should he steps
taken forthwith looking to the eom-
pletest possible inventory and mobill-
tuition of all the resources of the na:
Mon for war effort ; oleo an intelligent
and adequate aeeertaining in proper
p.rapectlye Of all the needs of the war
situation."
it le understood that biter, when all
the candidates are in the field and the
Gnvernment'a policy and attitude to
regard to cnneeriptlon and other fe-
ptas has been more clearly defined
another conference will he bead to deal
more felly with the whole situation.
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