Northwest Arkansas Times from Fayetteville, Arkansas on July 1, 1974 · Page 7
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July 1, 1974

Northwest Arkansas Times from Fayetteville, Arkansas · Page 7

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Fayetteville, Arkansas
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Monday, July 1, 1974
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Everybody Has A Gripe Northwest Arkansas TIMES, Monday, July 1; 19T4 · FAYITTKVILLE ARKANSAS ^^^^___^ Meat Price Situation Is Confusing And Contradictory By LOUISE COOS from the livestock producer who's losing money; to the supermarket operator whose costs are up; to the consumer struggling to stretch the family budget. The situation they face is full of confusion and contradiction: · --The farmer is getting less money for his cattle, but the consumer is paying almost as much for meat as he did last year. . · , · . ---The livestock producers who raise the calves and fatten the cattle for market and the middlemen who slaughter the steer and sell the meat to you, are faced with higher costs. Some are losing money. Even those .doing, better than last year say profits are lower than they were five years ago. --The administration is en corn-aging people to buy mea' and has promised to buy $100 million of beef and pork to help boost the farmer's income. --Looking ahead, the govern merit hopes large grain crops this year will cut the price o feed grains, making mea cheaper to produce. But even i riis happens, nobody knows now much of that saving would e passed on to you at th« re- all meat counter. The question s whether inflation of other terns can be controlled. .RETAIL PRICES FOLLOW Normally, farm, wholesale and retail prices go up ! and down together. It isn't working hat way with meal'. Why hot? To understand what's happen' ng to your meat budget now, you have to go back to early 1973. A little more than a year ago, farmers were getting prices for their cattle. high Consumers, paying an average ol $1.36 a pound for meat, got angry and- organized a weeklong meat boycott. The government, meanwhile! put ceilings on what packer; could charge supermarkets ant w h a t supermarkets coul charge you for 'beef, lamb snt pork. Farmers, however, were allowed to charge more money for their livestock. The bottom was allowed to go up, but the top and the middle stayed put. The packers and retailers rebelled, refusing to pay more ecause they couldn't charge 'ou more., Farmers held on to heir animals, creating an over- ·upply on the farm. When con- rols came off last September, armers sent all the cattle to market, there .was a greater supply than demand and farmers got less.money than they expected. STILL A BACKLOG The backlog is still there. It got even bigger in December and February because of truckers strikes that kept meat from the market. Farmers are still getting less money than they did one year ago, but re- tall ' prices, until recently at least, were at or near 1973 lev- y--from $1.36 a pound lo $1.35. Why? , . , , . . Industry sources, who don t .ke to talk for attribution about his sensitive subject, give this explanation: Suppose you are els. Where is your meat dollar go ing? Here ,.is a government breakdown in cents: Apr 72 Apr 73 Apr 74 Retailer 31.0 26.7 30.6 Packer 6.3 6.2 7.4 Farmer 62.7 67.1 62.0 Another set of governmen figures shows that the farme got about 8 cents less for a pound of beef this May than he did in April, 1973. The retai price was down only one' pen a retailer vho buys a product for $1 and resells it for $2. Of the dollar markup, 80 cents goes for costs of running your store: 20 cents s profit. :COST ANALYSIS Now, suppose the amount you pay for the product goes down :o.50 cents. At the same time lowever. your other costs go uj cents. That's $1.40. Add your 20 cents profit and you lave a $1.60 selling price. The wholesale price has dropped 50 cents, the. retai price only 40 cents. That's what's happening to mea prices right now. The American Meat Institute ents , | A other expenses 1.6 cents Profit .3 cents The institute said it coud not rovide comparable figures for 973. But a spokesman said vages alone had risen 12 per cent in the past year--from an average of $7.41 an hour last year to $8.29 this year [or salaries and fringe benefits. Ellas Paul, president of John Morrell Co., one of the largest packers,. said that until . this year the industry had been av- profit of · between of 'a cent and 1.2 which represents the packers, broke down what havpens to the 7.4 cents the packer gets of your meat dolar: Wages and salaries 3.7 cents Rent, depreciation and interest 1.5 cents · Supples and containers 1.0 eraging a nine-tenths cents for every dollar of sales. This year, he said, earnings were less. SUPERMARKET COSTS. The National Association ;ol Food Chains, representing retaijers, said labor costs ac count for 65 per cent of the su per market's share of the dollar The rest goes to utilities, rent depreciation, taxes, rnainte nance' and repair, promotion and insurance. Clarence Adamy, president o the assgciation, offered breakdown of the percentage o nonlabor cost increases froi 973 to 1974: Hauling meat to store 17.9 Refrigeration cases 25.7 Meat coolers 10.5 Meat saws'15.7 Packaging-25.0 ' Utility rates 10.0 to 60.0 Industry profits are expected o'rise 50 per cent this year, he association said. A; spokes man said that in dollars and cents, this means the store will make three-fourths"of a cent or every dollar in sales, in stead of one-half cent. Arid a spokesman said that in 1968 and 1969, the retailer made ibout a penny for each dollar in sales. In response.to.complaints by Ivestbck producers--ranchers who raise the calves and feed lot operators .who fatten them tor ' market--the ' governmen has .launched investigations o whether the spread between thi price the farmer gets and thi price the consumer pays is toi large. · . .., SOME MARGINS HIGHER "It is high time that . ... low er farm prices show up mor fully in lower retail stor prices," said Agriculture Secre ary Earl Bait on May 10. While food prices al stores ave leveled otf some, margins re still higher than normal.' An Agriculture Department pokcsman said late last month fiat the problem with meat iriccs stemmed from "chains ind packers, especially chains. Chains don't like to lower )rices because they're afraid hey'll have to raise them in .he future," Supermarket spokesmen say :his isn't true. They say they lave lowered meat prices and claim the drop is more than the government says it is. "They don't give enough weight t specials," said A.D. Davis chairman of the board of Winn Dixie Stores, one of the nation' 10 largest chains in terms o sales. Pantry Pride-Food Fair su permarkets, another of the to 10, pointed to prices for Philn dclphia stores which it sai were typical: Sirloin steak to $1.39 a pound, compared t $1.45 a year ago; rib roast fo $1.19 compared to $1.29 a yea ago; boneless chuck for $1.0 compared to $1-29 a year ?go. The consumer, contributed t eeping meat price's high by ating more beef than ever be ore. : ' . . ' . - . ! · The government figures per apita consumption .figures, ased on the carcass weight, of; an animal--after such things 'as he hide are removed, but be- orc the byproducts are .discarded. I V Consumption of beet and veal rose steadily until last year. lere'are the figures: , 1971: 116 pounds ''. ; 1972: 118 pounds .: ; : 1973: 111 pounds But this year, the figure .is up again. The American National Cattlemen's Association, gave these per person'figures for the first five months of this year, compared to 1972 and 1973: 1974: 47.37 pounds 1973: 45.16 pounds 1972: 47.10 pounds If Americans keep eating, at the same rate, per capita consumption tor 1974 would -be about 114 pounds. .But Americans traditionally eat more heel in the summer months when barbecues whet the appetite for red meat. Homosexual Rape, Torture, Murder Henley Trial For Mass Murders Begins SAN ANTONIO, Tex. (AP) -- yer--Henley and another youth, Houston and an assistant, Don This morning 500 potential ju-|David Owen Brooks, 19. told ol- " ' '''' ""'" """''"'" rors report to a Bexar Countyjficers of a three-year orgy-of courtroom where 12 of their "--- -' '--' ~ J number are slated to decide the fate of Elmer Wayne Henley. Jury selection starts today in the murder trial of the 18-year- old-Henley, accused in six O I F -- _ _ _ § the 27 deaths of teen-aged; area in East Texas where four have become;more bodies were buried; and Houston mass to a Gulf of Mexico beach at males which known as the murders. District Court Judge Preston|more were found. Dial says he hopes to select a jury by Wednesday, send them : home for the 4 t h - o f July holiday weekend and start hearing testimony next Monday. Brooks into court. Defense attorneys Will Gray .. Hatten ruled , te tn and Ed Pegelpw are expected week heari . Houston in to again seek to delay the trial - - ° or move it out of San Antonio because of what they allege is excessive and prejudicial publicity here. Gray has already been turned down by the Texas Supreme I Court on his motion to force Judge Dial to rUle on his motion for a change of venue. In an April pre-trial hearing Dial told Gray he will first try to select a jury, then move the trial if one can't be chosen. DENIED MOTIONS . In April Judge Dial also turned down motions by the da- fense to allow individual questioning of all potential jurors, to excuse all potential ; jurors who have read or heard-about the case, to limit questioning of the panel -as a whole about their opinion of the guilt or innocence of Henley and to lock up the jury at night to keep them away from outside influences or pressure. The judge will allow individual examination -- outside the presences of the others--of all potential jurors who have heard or read about the case. Gray said earlier he was going to present more motions ten day to delay or move the trial. A San Antonio lawyer, former state , rapreseritative Rudy Esquivel, "as been appointed : by Dial to aid the defense team in questioning 'jurors, Both Gray and Pegelow were originally hired by Henley but were appointed by the court to conduct his defense when the case was moved here from Houston. Henley had protested the change of venue, saying he wanted to be tried in his home town. After District Court judge William M. Hatten ordered ,the trial moved on his own motion, Henley, cursed, and struck al jailers on his (way back to his cell. . ARRESTED AUG. 8 Henley was arrested last Aug 8 in the Houston suburb ol Pasadena after he telephonec police and told them he hac shot and killed Dean A. Cprll 33, following an all-night sex and drug party at Corll's home Then over the next three ' days--and before he saw a law Babysitter Wages Not Covered By Law WASHINGTON (AP) - Hep. Ray Thornton, D-Ark., said today that the Labor Department had interpreted -a law establishing a minimum wage or $1.90 per hour to mean that it would not apply to babysitters who care for children^ in the babysitters' own homes. Thornton and other congressmen asked for the interpretation. The Labor Department .said the wage provision would not apply to babysitters who care · for children in the babysitters' own homes because the work would not be performed "in or about a private home of the person by whom he or she is employed." "As long as a mother takes her child to a Day Care'Center or someplace like that, she's all right," Thornton ami. He also said that babysitters who work on a "casual basis" are exempt from the wage provision. The Labor Department has not interpreted the term casual, but the agency may use a 29- hour week as a yardstick. Thornton pointed out that families who pay for child care services are entitled to an Income tax deduction of $2,400 for one child, $3,600 for two children and $4,800 for three or more children. BUSH-FUNERAL PRIVATE: AFFAIR BELMONT, Mass. (AP) --' Private 'funeral services were planned for Dr. Vannevar In Marathon Telethon Democrats Raise $7 Million remaining one-third will go toy Entertainment came from Establishment, balladeer singeri Lsmbright, will be trying the - ase. At one 'time Vance publi- By The Associated Press pected the total to top $7 mil- iy offered to let Henley plead dent Franklin D. Roosevelt. Americana, plus some old-fash- Cost of the air time and gainst him but would only of- bned pleading, the Democratic The two youths led officers tQ Eartha Kitt, Helen Reddy and to be $2.5 million. party amassed about $7 million a Houston boat shed rented by co-hostess Delia Reese; screen mum sentence of life in prison. He was the first civilian rep Sen. Hubert H: Humphrey of Corll where the bodies stars Paul Newman, Cliff Rob- Under 'Texas law, the accusa- resentauve of science to sit in boys were found; to a wooded highest war councils ions against Henley do not car- would top last year's · pledges ceiling ol the CBS studio in Los ceremonies and was joined for ry the death penalty. by about SI.5 million. Angeles as the telethon ended, most of the time by Democratic Randall, Bette Davis and newly and participants and audience married Robert Vaughn. members clapped, cheered and Island, Tex., where six that ended Sunday was said to atomic bomb be used against ed all states with "Answer, America. shows in the history of network Brooks has been charged ' ' Bush was a former professor, News of the slaying of Mrs. rom Henley and the results of its 1973 telethon. vice president and dean of engineering at the Massachusetts wn ° Institute of Technology. Martin Luther King Sr. in At- Callers were still phoning in Johnson and Harry S. Truman. after the Henley trial to bring vas raised during an eight-hour --Marty Ray Jones, 18, shared an apartment with obble and vanished with him. --Frank Anthony Aguire. 18, pledges as the telethon ended in Political satire was generally sadness to the otherwise festive he Western states at 11 p.m. light but the Democrats poked Viewers were told that two EDT Sunday. Party spokesmen Juvenile Committee thirds of the money would go to January that one written and County Judge Vol Lester, who s seeking re-election on the Re- Heights neighborhood in Hous- made while in custody and be- nublican ticket and Bruce Cri- the Democratic candidate appeared in 1972. voluntarily given. for the position will be guest --Homer Garcia,.15, vanished ORAL STATEMENTS July 1, 1973, after attending a noon meeting of the Washington Judge Dial still must rule on County Juvenile Court Advisory DIL admitting the v oral statements --Johnny Delone, 16, believed The candidates will speak on killed in May of 1972, who also lived in the Heights.. ol the Juvenile Court when the --William Ray Lawrence, they lead directly to recovers another Heights resident, miss- of physical evidence. ing since July of 1973. Now For A Limited Time Buy Beautyrest Back Care One or Supreme Normal Firm ^ At These Low Prices! , MOM., TUES., WED. 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