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The Clinton New Era, 1917-07-26, Page 4PAGE. 4 Clean to handle, Sold by all Drug. gists, Grocers and General Stores. The key to business success is ADVERTISE, This is the combination which unlocks the safe of pro$peritty. Patronize The New Era and be corvine. ed, 11111IV111111 illlllllllllllllViVV11111111 111111111111V11111111V11101110VI11V(VuuIVVIVVuu OUR SBRIA1 STORY THE TRUE LOVE Off' AARON 13URREj by Lo.ulse Kennedy )Yiabie 11111 VVI�IUIIIIIIVIIQIIIIIVVIlIUIIIIIIIIIIIIIVIVIIIIIIIIIIII!lIUIIIIIIIIiIIIIIIIIIIIIIIIIIIIIINIVIIIIIIIIIIIIIIG (Continued from lust week) With a sullen face and head held high the \venom moved past Burr, past Theo shut Cis, with Praiieis Greene like a dug at her heels. At the door she turned as 1f to speak, and then, thinking better of it, dropped a defjant Courtesy and was gone, The general's voice stopped Greene in the act of following. "Captain Greene you have not been dismissed A word with you, 'n the future pray remember it is not well to exceed your duty, For what you have done you will be suitably rewarded, Let me advise you to think less of the lady just gone. Attempt tt nobler part than that of tt mere hang - IE r fit a or I; f T r c t ;; ! Pr fits Tw THE CLINTON NEW ERA.. The man went out in dull astonish- ment at the turn of affairs, Theo sigh_ ed hapily as the doer *fused upon h m. it seemed to her that the air Was Clear- ed and the room brjgbtier with their going, You, Ni;t)or Bellwood, 1 shall find it convenient to keep," the general went on, He was 11 man who wasted no time upon rhetoric, "A little hardship may be good fora one of your temper. 1 will warrant that you blackmail no more ladies, Remove him, and await my or- ders." Bellwood and his guard disappeared in silence, The major was beginning to think himself beaten, "Here is your letter, Mistress Pre - said the general in a kindlier voice. "I do not want it," she said with a shiver. "Perhaps Colonel Burr---" began er-on of a light woman, If you want the general. help in you ,upward endeavor,,come to. She looked up quickly at Burr, Then me. You may now withdraw, sir." she advanced, took the letter, and, with e a .flesh on her cheek, held it 051 to hint. "WBI yon( read It, Golottel Bur'?" she faltered, He took it slowly, his eyes on her face, ,and hesituteci a moment, Then he walked to the mantel -shelf, and took up one of the dim candles, 'I have your perinlselon, sir?" he Said to Washington; and that gentle - Man shrugged his shoulders. Where- upon Aaron Burr burned the letter in the candle ;lame until no trace re- mained. "And my punishment, sir?" he said then, very humbly, "Ah, yes," answered Washington. "Colonel -Burr, you have been most culpably to blame. You run matters to so line a point that it becomes hard to say just where to stop, 1 with no more of such detaings. You will so conduct yourself In the future that no misconstruction can, be put upon your movements, There are to be no more night rides in secret, Soldiers attend strictly to business. I will admit"— s . c ' Cens p r F ¢U. irds o, 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 pubic unrest. 0 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 For the last fiscal year eating:Afarc.h 27th, 1917, The William Davies Com- pany bought and killed 1,043,0.00 head. of Liye Stock (Cattle, hogs and Sheep.) This, plus purchases of outside Meats, produced 160,000,000 pounds of Meats. The Company handled 6,550,000 pounds of Butter and Cheese, 5,650,000 dozens of Eggs, and manufactured 26,50(1,000 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 Butter and Cheese, 1.04 cents per dozen on Eggs, and .47 cents (or slightly less 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 served at its retail stores 7,500,000 customers, the average purchase of each customer was 85c,, 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 27th, 1917, was $40,000,000. The net percentage of profit upon this turnover, after deducting war tali, was 1.69 per cent., or including war tax Respecting the Report of the C Last Winter the Commissioner, under authority of Order -in -Council, required packers to submit statements under oath for seine years back and up to December 1st, 1916, of incoming stocks of Meats and the cost of such, as well as statements of outgoing product and the selling value. This Company represented in writing at the time that the information as specifically required was not in accordance with Packing 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 secut;e a viewpoint as to the best way of collecting data which would be of use to the Government, This offer was declined, and there Was,nothing to do but fill in the 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 under a specific classification and leave the factory as a 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 the selling price. There was nothing in the report which could be read so as to determine a profit and loss statement. The very fact that with only ii statement based upon cost of raw products and value of sales in Great Britain a Government Official has deduced "Large tnargies," Profiteering" and "Criminality" if it had occurred since the passage of a recent Act, shows too dangerous a 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 the series of reports he has singled out two items—the Bacon and Egg reports—and from their 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 c. using excitentent deals with cold storage bacon. The terra cold -storage" is not defined, and the public is allowed to,mat a is own definitions. As all Bacon in a packing house is un er refrigeration it is really all cold -storage, and therefore this Company's figures of cold storage Bacon represent the complete quantity of Bacon handled ifs its entire Plant, wh ther in freezers or in process of cure for immediate shipment. That some com- ,1„ C "nt, per nd the facts be laid before the Attorney -General for consideration as to their criminality." The situation created 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 m 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 of the statement of the Government Official. 3.45 per cent. The William Davies Company has assets of $13,385,000 of which $3,865,000 is tied up in fixed investments. To provide the necessary facilities for the increased volume of business the Company expended $750,000 in buildings and equipment during the year. Companies 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 lmpe'ial 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 fork and Beans at the service of the authorities, on the 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 Company has secured War Office business by open competition with the world. nmissioner on the Cost of Livin panics interpreted cold -storage product as "freezer" product only is evidenced by the smallness or entire lack of figures on the Baehr' 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 Miss McKenna in Ottawa a few weeks ago, and the failure to make the distinction after having had it pointed out evidences lack of desire for accuracy of the real information desired. It is true The Wiliam Davies Compiny, in 1916, exported 97,701,039 pains a of Bacon, but ss: et) to t know how the margin of 5.05 cents per pound is arrived at Ly Mr. O'Connor, as there were no firares to justify such a conclusion, The probabilities are Out the margin is arrived et by taking the average cost per poi:nd of incoming product from the average selling price per pound of outgoing product. This may be a rough way of estimating the gross margin when 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 important difference in the total, and one must be careful to snake sure that the outgoing product is the same finished merchandise of the incoming product reported on. Ailowing it to pass, however, as a rough estimate, we with to point out—(first)--Une ingwry of the Commissioner allowed only for incoming, freight tied, unloading charges, and made no provision whatsoever f, r operating charges of any kind, such as labor, curing materials, refrigeration, et cetera. Sucit actual ehnraes on the 97,791,000 pounds exported were $1,142,000=or 1.2 cs.ts per pound,. This amotnnt coverers all themes up to the point of placing the Bacon on ears f,n,b. paek'neaboese. .addition to th's was the'aetunl cost to Mud and soil this 07, 791,000 pounds i:: Iina- lsutd after leaving 1.I:e pnc.i:y tnse, which involved charges of 2.9 cents per pound—or 12,S3ti,004. Thais 2,9 cents per pntme Metaled inland and, ix:eaut freight, landing cearres, war and marine inestrance, cables, soul ellfn l cammissicm to agents. The ocean freight and war risk nlo'e would matte up 2.4 cents of the cleirge of 2.0 cents per pnond. Th's I 2 cents, plus 2.9. cents --a total of 4.1 conte—nn et be dc.;iietrd front ,sir. O'Conner's margin of hale eenla per pound, leaving a margin of .95 cents, or slightly Ices Ilit't a cent per pound which still has to he reduced became of the error of premises and because of farther factors which have to Le considered to determine net profits. It is quite evi;lent some of the "tier packers did not show selling values -in the cuuutry in which 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-C'euncil directing that inquiry be made, but will place the experienee of its officers at the disposal of the investigating committee, if it is considered they 'can. render any se'eice which will be of value. The Company has not now --nor at any time during, the fifty years of its operation—anything to conCeai in method or practice of carrying* on its business.' It does, howeve, claim the right to con- duct its export' business without abusive colnnient from Government civil servants --especially when the conclusions drawn from the data asked for are improper and false. . " One of Canada's chief exRert industries is the packing business. It is essential to the live stock industry sand, along with. other export industries, it maintains the financial stability di tl s<s country, and should, providing rt is on a sound basis, receive eneouriigedlent` and 'not slanderous abuse. In view of the publicity given to the report of the Commissioner on the cost of Hying, ,the Company demands the sante publicity in having an official Government investigation of this report to determine the truthfulness or uutruthfulnese of its conclusions. We do not seek public consideration as a corepany, but• we :do say that untruth- ftil official stateniients, or sfatentents the effect ofwh:ch.is tai create an untruth, e sold—a proceeding quite proper, as the forms submited to be filled in were indefinite and ambiguous, thus permitting with- out charge of evasion a variety of interpretation as to the information required. It is tbns possible that of all the figures submitted by the different packers that no two sets of costs and sales prices are determined at the sante common point. It is this difference of interpretation of what was required that accounts for the difference of the alleged "margin" made by the different companies. Common conclusions, however, have been drawn by the author of the report from varying bases of premises. The figures of the Egg business were submitted on the same basis as Bacon, and similar deductions must be made. (Second)—The above margin is further reduced in that the author of this inquiry singled out the Bacon figures as an item in which the selling price shows an alleged improper advance over cost, but he did not give us credit for the statements of other products, of which figures were submitted the selling prices of which were under cost. The reason of this was that through failure to inquire the Department entirely overlooked the fact that product may come in as pork and, through the process of manufacture, go out as Bacon or, in another instance, enter the factory as beef and go out in the form of canned meats; for egomple: much of the product which cane in as pork, and which was entered oh the pork sheet submitted to the Commissioner—about which he makes no mention -was cured and left the factory in the form of Bacon, and suns, therefore, entered on the outgoing side of the Bacon sheet—the result is that the Bacon sales are increased by this amount over the incoming stocks of Bacon, and, like- wise, the sheet showing sales of pork is reduced by the amount that went out in the form of Bacon. If the Department takes one set of figures that show favorable to the Company they should take another set of figures that show unfavorable, as the principle in either case is the sante, and failure to do so looks as if the author of the report was exercising more enthusiasm than sound judgment in his investigations. (Third)—It is queried in the report, that"if the margin of 3.47 cents," alleged to have been made in 1015, "was satis- factory, why was it necessary to show increased margin in 11116?" Assuming again for the moment the soundness of the premises in asking such a question basal on an erroneous "margin", it will he found that the increased margin is chiefly absorbed in increase t ocean freight rates and war risk in- surance in 1916, of which apparently the author of the report was in ignorance. adversely affect the live stock industry of this eciuutry, which is so valuable and essential a wealth -producing power and, in the long run, are harmful to the very pcop1c'thae the statement sock s to benefit. 11 the passing out of existence of a corporation such es The 'William Davies Company, er if mat ienalizntion of packing houses would materially and per- manently reduce, 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 because of the war, and the tremendous destruction of food products incident to war, there is no remedy for the high prices of food while such conditions last, except the renedy of thrift and increase of production. Long before there was talk of a Food Controller in the United States 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 realized at Haat time the upward tendency in the price of food commodities unless checked by official effort: At the most a great deal cannot be done in reducing food prices while currency is inflated and until the scale of prices of all kinds of commodities declines also. What can be done our only be done by a Food Controller. We wish to point out that nothing at all can be accomplished Nnless the data secured are aecurately and clearly made and the deductions the# frorri sound. Only public harm arises from dangerous innompetency in the haphazard collection and careless use of important figures. As far as The William Davies Company is concerned this terminates all public statements of the Company, and it will pay no more attention to specul ive and k hatarcl statements Made tidier by stews a ssn or civil servants. The onPy further statement that will be made will bo at an o eial:investigation. (lp J p p � C. FQXS General- Manager THE WILLIAM DAVIES CoMPANY, LIMITED Toronto July llth„ *01 Thuraday, July 26th, 1917 with a courtly bgw to Theo—that (he sight of this lady is a great polus in your excuse; yet 1 cannot but bitt:na you severely." "And my punishment, sir?" said Burr again, humbly, "That I may leave In the bands of Mistress Prevost, since site has a stead• ler head than yourself, sir, You must deal with hint harshly, macinm," said the general, a slow smile showing in his eyes upon the look upon their faces, "You will return to your regiment and await orders from the lady," "Sir, 'tis my ardent wish tto eke orders from her for the rest of my lite," cried Burr, "indeed, Is it so? You surprise me, Culp/let Burr, I did not dream of it," said Washington dryly. may 1 sugest that you return with the lady to her coach, so that you may be more easily at her command? I hesitate to suggest the thought before such bright eyes, but, in short, I tau sleepy.' There was more than the hint of a smile upon his face now, Ile bowed low, cutting short their graceful words. Burr opened, the door, and the ladies swept deep courtesies. Cis passed out, cheeks burning and eyes alight, turned to follow, but changed her mind, She flew back across the room to the gen- eral by the fireplace, sank down quick- ly, and, before he could prevent her, laid a warns kiss upon his hand, Then she. was gone in a flash. Without a word, Washington held out his hand to the young man, "You will not grudge me that, sir," he said kindly. "Allow me to wish you every happiness(" Without u word, because of the lump that had gathered ( nhis throat, Burr wrung the great commander's ]rand hard, and passed out quickly. Cis, who had spoken ne word thru the interview, recovered speech in the FIIT IIF A. NEW' rERSO Takia Only One Box Of After Taking y � `'Fru tra-fives" Rem San' IInanopn, N. S. crit is with great pleasure that write to tell you of the waadeiiai benefits 1 have received from taking " Frult-a- tives", For years, I -was a dreadful sufferer from ConsIs5alion and head- aches, aaen was miserable in every way, Nothing in the way of medieln es seemed to help me. Then 1 finally tried "Fruit -a -fives" and rho otlect was splenclld. After taking ono box, 7 fool like a new person, to have relief from those sickening headaches". Man. 112ARTIIA, DE WOLFI:. 50e. a box, 6 for $2.50, trim sine, 255.. At all dealers or sent postpaid by Frait- a-tives Limited, Ottawa. darkness of the carriage. - "Is not General Washington a won* derful gentleman?" she began politely, and bridled with indignation when no attention was given her. THE END. Chilaren Cry 1 1i FOR FLETCHER'S CASTof to WHAT is so beautiful as the soft, rosy, delicate skin of the baby. And yet baby's skin is so tender and so easily chafed and irritated that It must have care and oonsider- ation. It is a fine habit for mothers to have Dr, Chase's Ointment at hand for use after the bath. By its soothing, healing influ- ence it soon allays the inflammation, brings relief and comfort. and prevents the development of eczema, for eczema Is the natural result of neglected skin irritation, Mrs. W. L. Barnes, Timmins, Ont., writes : "I want to tell you about the ease of my little boy who had baby eczema when he was three months old. it started on the top of his head, on his forehead and around hie ears. The doctors failed to do him any good, so I tried Dr. Chase's Ointment on the recommendation of a friend, and in a month's time the child was entirely free of this disagreeable skin disease. ire is now four years old, and has never had any further trouble from ailments of this kind." Dr. Chase's Ointment � 60c a box, all dealers, or Ddmanson, Bates & Co., Ltd., Toronto. Do not be talked into accepting a substitute. Imitations only disappoint. elfi ,'ll l(f eft f . .,, ; 4,7es of this famous War -time Sweetmeat are sent to the soldiers, sailors and aviators at the front. If you have a friend there, see that every parcel or letter contains a few bars or a package of i lgilrel? i'` S, the great chew- ing confection that is used around the world. Keep it always on hand. It helps teeth, appetite, digestion. Seale r: tight Kept right "Affter every meal" MIME PM CANAI'dN The- ,Flavour hosts