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via 9 i EDWARD KRESS i mucosa-0.000».- Council met July 21st, members all present: minutes adopted. The Reeve reported regarding the meeting of committee from Wel- lington county council and officials from the townships of Proton, West Luther and Egremont, interested in the boundary line between the counties of Grey and Wellington, held in Mt. Forest on July 9th. The matter was discussed regarding the condition of said read. and it was finally agreed that on account of part of road being represented to be in a deplorable condition, and a considerable amount of gratis labor being promised. that this township grant $100 towards remedying it. Ferguson-Hunterâ€"That reeye‘s report on boundary line road be adopted, and the members of com- mittee receive $3 each for services. adopted, and the members of com- mittee receixe $3 each for sen 1cm. Hunter-Brownâ€"That the account of All. Trout for $7.35 expenses in- curred in connection with sending r‘ficDougall- Bro“ nâ€"That a grant of $200 be made to the xarious pai- riotic societies of the towriship. . Rugs, Oilcioths Window Shades Lace Curtains and allfiousehold Furnishings TINSM ITHIN G Mr. M. “Kress has opened a. shop at the rear of the furnituxe snow room and is piepared to do all kinds of tinsmithing. Undertaking receives special attention UN DERT AKIN G g V'v" Evans to the reformatory. be BGRBMONT COUNCIL PAGE 6. AND :30; Gem. fees. 85; overseeing work at. Garson’s hill, 5". Comr. Brown reported: J. Keller, wire fence bonus, S?1;Arthur Lee, S150; A. .HOOper, $10.50; D. Hamil- ton, shovelling gravel, $1.50; P. Da- ley, gravelling, 313; W'. \Vells, gra- veiling, ‘36; W. Ramage, 36; D. Ham- ilton, rep. Egt. and Glenelg town lline, 85; T. Harrison, rep. bridg, HE 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 . .. o 1 1 D n. ' _- 3 _ 1n1n ---.] ILAL M V bub munvwv â€" __ “There were two in'div‘idiiai cases of profiieering in 1916 and that had these cases occurred since the passage of the cost of living Order-inâ€"Council, he would consider it his duty to recommend that For the last fiscal year ending March 27th, 1917, The William Davies Com- pany bought and killed 1.043.000 head of Live 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 26,500,000 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 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 Byâ€"Products derived from these accounts. , J -1. :1... ._-.L,.:I -Ln-nn Pl :nn nnn nsac+nmore S: Last Winter the Commissioner, under authority of Order-in-Council, required packers to submit statements under oath for some years back and up to December 15:, 1918, 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 Ofiice of the Company to examine the books for any iniormation desired, and to secure a viewpoint as to the best way of collecting data which would be of use to the Government, This ofier 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. -_..‘ “M“...‘U‘J... We submitted a series of accurate figures based upon our interpretation of the oficial 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 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 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 itemsâ€"the Bacon and Egg reportsâ€"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: AAL jAA'- m:‘u uuu UULaLauu1u5 CliULD ALL 5“. ayyv--. The principal item that is causing excitement deals with cold storage bacon. The term “cold-storage” 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 cold-storage, and therefore this Company’s figures of cold storage Bacon represent the complete quantity of Bacon handled in its entire Plant, whether in freezers or in process of cure for immediate shipment. That some com- imp} Toronto, July 17th. 1917 A ctual Profits Two = Tb irds Respgcting the Report of the Commissioner on the 59; F. Lawrence, shbvelling, 82.25; Com. fees $2.50. Com. Hunter reported: J. Rawn, covering bridge, 83; G. Aitken, ce- dar, 320; Buller Brebner, sawing and delivering same, 86; W. Halli- day, wire fence bonus, 37, J. Ravm $7; WJ. Kelly, rep. .culve'rt £1.70; P. McEachern, operating grader,_ $24.85; W. Halliday, grading, $23.50; THE WILLIAM DAVIES COMPANY, LIMITED panies interpreted cold-storage product as “freezer” product oniy IS evidenced by the smallness or entu'e lack of figures on the Bacon hst for some Plants, 1nd1catmg that 1. any figures on the bacon 11st Ior some wants, lIlCllcat 111 11111 1 111 Av Firms (1: d not submit statements of their complete st 3 :s, as (11 d this Company. An Official of this Company pomted out tnis cold-s- Lorage distinction to Mr. t) ( ozznor and Miss McKcn.-a in Otta wa a few weeks ago, and ti e 1ailure to make the dzstincton after having had it 31021112 Cl out evidences lack of desire for accuracy of the real information desired. It is true The W'illiam Davies Company, in 1916, exported 97.791000 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 :1 figures to juszify such a conclusTon. The probabilities are that the margin is arrived at by taking the average cost per pound of lilCUlfllng product from the av *rage selling price per pound of outgoing product. This may be 3. rough way of estimating the gross margin when dealin 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 make sure 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 outâ€"(firstlâ€"the innuiry of the Commissioner allowed only for incoming freight and unloading charges, and made no provision whatsoever f'r operating charges of any kind, such as labor, curing materials, refrigeration, et cetera. Suci actual charges on the 97,791,000 pounds exported were 81.162.000â€"or 1.2 cents per pound. This amount covered all charges up to the point of placing the Bacon on cars fob. packing-house. In addition to this was the actual C"°t to land and sell this 97,791,000 pounds in Eng- land aiter leaving the packing house. which involved charges of 2.9 cents per poundâ€"or $2,836,000. Thus 2.9 cents per pound included inland and ocean freight, landing charges. war and marine insurance. cables, and selling commiss'. rn to agents. The oceanfrei'rht and war risk alone would nzake up 2.4: cents of the charge of 2.9 cents per pound. This 1.2 cents, plus 2.0. Centsâ€"a tot-:11. of 4.1 Centsâ€"must be deducted from Mr. O'Connor’s margin of 5.05 cents per pound, leaving a m rgin of .05 cents, or slightly less than 9. Cent per pound, which still has to be reduced because of the error of premises and because of further factor which have to be considered to determine net profits. Allowing wish to point allowed only and made no It is quLt e evident some of the other packers did not show se. '21 ng, r \alues in the country in which the goods were DO 00! llbblbwovo uou yum/9w oowvuvv-wu VJ or civil servants. The only further vé't‘lztgflevfitvth‘lz't will be macle {Dill be at an oficial invéstigation. B: C. FOX, General Manager W. P. Horsburg, $30; shovelling gravel, $3; Com. McDougall reported: W. Maâ€" pletoft, rep. culvert, $1; W. Kirlv- ness, filling bridge approach, $5; ’5. Peckover, rep. bridge, $3; W. Mc- Donald, gravelling, $18.75; A.H. Wal- lace, rep. approach to bridge, $9; A. Hopkins, filling washout, $5; H. Hofl'man,_ rep. approach to bridge, 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 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 of the statement of the Government Oficial. 3.45 per cent. . The “'illiam Davies Company has assets of 813,385,000 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. _ - r- m 1 . .1 ‘r ° ‘ _ j1_-_:L:-_ Ar. "A1106 v V.“ ’\‘-.-v" and lossxbased upon the investments made in the business. The ‘William Davies Company ofi'ercd to the Imperial authorities, as well as to the “at Office .Lervice (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 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 “. illiam Davies Company has secured War Ofiice business by Open competition With the world. adversely affect. the live stock industry 0: essential a wealth~produeing power and, i: peOple that the statement seeks to benefit If the passi"'g ("It of existence of a co adversely afiect the live stock industry of this country, which is so valuable and essential a. wealth-producing power and, in the long run, are harmful to the very peOple that the statement seeks to benefit. If the passi“ g ("t of existence of a corporation such as The “'illiam Davies Company,«0r if nationalization of packing houses would materially and per- man ently 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 remedy of thrift and increase of production. . - . Long before there was talk of a Food Controller in the Umted 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 that 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 can only be done by a Food Controller. We wish to point out that nothing at all can be accomplished unless the data secured are accurately and clearly made and the deductions therefrom sound. Only public harm 321568. from dangerous incompetency in the haphazard collection and careless use of Important figures. W. Fairpairn, Com. fees 506. McDou-gail-Brownâ€"That the fol- lewing accounts he paid: Gravel ac- counts, 8158.48; 1. Kerr, com. tax, $9; G. Hargrave $6; W.T. Pinder $1.50; G. Pollock $1.50, S. McMurdo $3; G. Alles, sheep injured, $12.50; J. Ferguson $14, R. Aitken, inspecting, 81.25; S. Patterson, inspecting, $1.75; 81.75; P. McEachern, operating gra- der, 318; com. fees, $5. and it will pay Eamon attefiiqq t9 spequlafive soldâ€"a proceeding quite proper, as the forms submited to be filled in were indefinite and ambiguous, thus permitting with- out charze of evasion a variety of interpretation as to the information required. It is thus possible that of all the figures submitted by the different packers that no two sets of costs and sales prices are determined at the same common point. It is this difference of interpretation of what was required that accounts for the difference of the alleged “margin” made by the difi'erent 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. (Seeond)-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 “~EDDC‘OIW V- vâ€"â€" râ€"v â€"â€"â€" 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 example: much of the product which came in as pork, and which was entered on the pork sheet submitted to the Commissionerâ€"about which he makes no mentionâ€"was cured and left the factory in the form of Bacon, and was, therefore, entered on the outgoing side of the Bacon sheetâ€"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 same, and failure to do so looks as if the author of the report was exercising more enthusiasm than sound judgment in his investigations. (T hird)â€"It is queried in the report, that “if the margin of 3.47 cents,” alleged to have been made in 1915, “was satis- factory, why was it necessary to show increased margin in 1916?” Assuming again for the moment the soundness of the premises in asking such a question based on an erroneous “margin ”, it will be found 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 the report was in ignorance. J.W. Hunt, tile, 824; of council room, $2; sheet. $15. Council adjourned to meet AU- SUSt 18th,. to strike the rates and general business. â€"D. Allan, Clerk More than 100 iron moulders are on strike at Guelph, three factories being affected. July 26th, 1917. J. McGrath, use ebuncillors’ pay FARMS FOR SALE Being Lot 53, Concession Glenelg. containing: 100 :u‘ emises are new frame 11:: ouse, sheds and nutlunhiir ning stream t11x‘m1gh DI‘UI' bout 10 acres Inn‘dxwmd h in «1? further Pm ises to Mrs Glenelg, cc Durham. 0 ’;._â€"-â€"-â€"'~ 7.... LOTS FOR SALE . North part of Lot 6, the mg Rink site, Garafr‘axa ham, and the nurth part Albert. St. Apply to All. Durham. Ont. Advertisements of one inchj for each subsequent inserq double the above ammm L. 1 térms and Telford, I) Lots West. PROPERTY F0 . That. splendid mesh 1: Upper Tuwn lwiu Pate Mrs. \Vilsnn. \\“ masonable terms: cu more or less: vumfux“ 7 rooms; hi hearing are] situation. .- ThOS. Bitch Executow 7â€" FOR SALE One 14â€"114). traction 1 erloo; one 36x48 sopa stacker. dust, 0.0110qu \Vaterlno; one No. 3 M Blizzard aim cuttm"i 3 n £000 pr1ce.â€"â€"1. “ Toronto, 0111 afiteed not. LU year of corset The n? 100 acres paration 25 acres buildings; on Saddler modern in‘ Comb. PI‘OI "7’ ’ roa SAL A brick house and land just outside of to able stables. hen-bout other buildings are . ises. \VZill alm s1 - 1“ i?“ EEK-i, and a paruculars, Lambton Si Top buggy first-01:15.9 V“ McFadden. I 0_n m11;:oatsonable fight. Apply ' WANTED ~55 to take (3113339 e“‘an. ()I‘I‘,‘ \\ W95 App 1 .V' U Durham nections II and 10 hn improvemé 30p” Durh SHAY} y and d87 (nldition; Durham- \V 100 DR h m‘