THE NATIONAL

PROVISIONER

5

*.-

ading Publication in the Meat Packing and Allied Industries Since 189

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Does not taint food or cause it to taste.

When you paint with Damp-Tex, on wet or dry surfaces, there is no loss of time or

production due to moisture or wet surfaces. That is why Damp-Tex is recommended

for brine tank rooms, coolers, sausage and casing rooms, smokehouses, killing floors

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FUNGUS TEST -Treated Damp-Tex will re- fungus, mold or mildew

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ACID TEST Damp-Tex is unafiected by lactic and other com mon food acids.

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The National Provisioner—January 8, 1949

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Page 4

PROVISIONER

Volume 120 JANUARY 8, 1949 Number 2

Table of Contents

Program for WSMPA Meeting......... 9 Armour Has Net Loss for 1948......... 9 Rath Profit Drops................... 10 Army Buying Argentine Meat.......... 10 Little ideas Help Bartusch............ WI Wholesaler Builds on Service.......... 13 Processing Pointers.................. 15 Picture Story on Livestock Changes..... 21 Market Section Begins................ 28 New Equipment and Supplies.......... 27 Up and Down the Meat Trail........... 17 Classified Advertising............... a4

EDITORIAL STAFF

EDWARD R. SWEM Vice President and Editor HELEN PERET, Associate Editor GREGORY PIETRASZEK, Associate Editor EARL H. BERKY DOROTHY SCHLEGEL

ADVERTISING DEPARTMENT Chicago: 407 S. Dearborn Street (5), Tel. WAbash 2-0742

HARVEY W. WERNECKE, Vice President and Sales Manager FRANK N. DAVIS H. SMITH WALLACE JOHN L. McGUIRE FRANK S. EASTER, Promotion and Research F. A. MacDONALD, Production Manager New York: 740 Lexington Ave. (22), Tel. Plaza 5-3237, 5-3238 LILLIAN M. KNOELLER CHARLES W. REYNOLDS los Angeles: DUNCAN A. SCOTT & CO. 2978 Wilshire Bivd. _ San Francisco: DUNCAN A. SCOTT & CO., Mills Building (4)

DAILY MARKET SERVICE (Mail and Wire) E. T. NOLAN, Editor

EXECUTIVE STAFF OF THE NATIONAL PROVISIONER, INC.

Publishers of THE NATIONAL PROVISIONER DAILY MARKET SERVICE ANNUAL MEAT PACKERS GUIDE

THOMAS McERLEAN, Chairman of the Board LESTER |. NORTON, President E. O. H. CILLIS, Vice President F. BORCHMANN, Treasurer A. W. VOORHEES, Secretary

Published weekly at 407 So. Dearborn St., Chicago (5), Iil., U. S. A., by The National Provisioner, Inc. Yearly subscriptions: U. S., $4.50; Canada, $6.50, Foreign countries, $6.50. Single copies, 25 cents. Copyright 1949 by The National Provisioner, Inc. Trade Mark registered in U. S. Patent Office. Entered as second-class matter October 9, 1919, at the Post Office at Chi- cago, Iil., under the act of March 3, 1879.

The National Provisioner—January 8, 1949

THE Cuesnnat! wees SUPPLY COMPANY

CINCINNATI 16, OHIO

The National Provisioner—January 8, 1949

Naturally, sausages have that tangy, smoke flavor in

Armour Natural Casings

The natural, evenly distributed porosity of Armour Natural Casings allows smoke to penetrate evenly, deeply, easily ... gives sausages the

delicious, zesty smoke flavor customers like.

Choose these fine natural casings to give sausages these important advantages:

Appetizing Appearance Inviting Tenderness Finest Smoked Flavor Protected Freshness Utmost Uniformity

ARMOUR

AND COMPANY

Page 6 The National Provisioner—January 8, 1949

SEATTLE PUBLIC LIBRA)

For Better TEMPERATURE CONTROL

ee tee

One of many types of Powers Controls

Powers Air-Operated Recorder Regulators are also available for any of these processes.

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A TERR Te

The National Provisioner—January 8, 1949 Page 7

You can reclaim larger amounts of marketable fats, boost your profits and offset high operating costs easily . . . today! Look what Globe offers in Dry Rendering Equipment:

Globe Dry Rendering Cooker starts your fat re- covery program off right by efficient use of thor- ough agitation and modern steam pressure and vacuum action.

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Globe HPM 500-Ton Hydraulic Curb Press puts the clincher on your economy program by re- covering more grease from cracklings than small- er, less efficient types. Built of heavy materials with a high factor of safety, this press is usually maintained at less than 14¢ per ton.

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Page 8

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The National Provisioner—January 8, 1949

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The 2 TE P. rovisioner ° Viakinis 120, Pithibes ee January 8, 1949

Round Out Plans for Third Meeting of Western States Packers, February 9-Il

EPRESENTATIVES of livestock producers, the food chain retail- .ing field, the USDA meat grading agency and experts on hides and leather and meat research will be among the speakers at the third annual meeting of the Western States Meat Packers Association, to be held at the Palace hotel in San Francisco on February 9, 10 and 11. According to E. F. Forbes, president and general manager, the first day of the convention—Wednesday, February

M. ENSMINGER R. W. DOE

9—will be devoted to the final session of the present board of directors and accounting and hide committee meet- ings and the meeting of a special com- mittee to consider the effects of im- portation of Canadian meat and live- stock without restriction.

At the morning session on Thursday,

* February 10, Henry L. Coffin of the

Gibson Packing Co., chairman of the board of directors of WSMPA, will talk, and at the afternoon session Alan Rogers, chairman of the public rela- tions committee of the American Na- tional Live Stock Association, will speak on “Producers and Packers Have a Pub- lic Relations Job to Do With the Con- sumer.” Rilea W. Doe, vice president of Safeway Stores, Inc., Oakland, will address the group on “Don’t Be Your Age,” while Robert R. Gros, manager of publicity and advertising for Pacific Gas and Electric Co., will speak on “What of Tomorrow.” Harry E. Reed, director of the livestock branch, Pro- duction and Marketing Administration, USDA, will demonstrate and explain the use of new color photographs in U. S. meat grading. He will be assisted by Lloyd Tobin of the grading section and John Maize, who is in charge of meat grading on the Pacific Coast.

The morning session on February 11 will be devoted to business, including reports by officers of WSMPA, election of directors and officers for 1949, re- ports of committees and open forum

discussion by those in attendance.

At the afternoon session, J. G. Schnitzer, chief of the textiles and leather division, U. S. Department of Commerce, will discuss “The Outlook for Hides and Leather for 1949,” while Dr. M. E. Ensminger, chairman of the department of animal husbandry of the State College of Washington, will talk about “New Frontiers through Meat Research.” Merryle Stanley Rukeyser, economic columnist for International News Service and editorial writer of the New York Journal American, will dis- cuss “What’s Ahead for Western Busi- ness Men,” in an address on economic conditions as they appear at the time of the convention.

Exhibits of packinghouse equipment and supplies will be located in the corridor and Gold room immediately adjoining the Concert room at the Palace hotel where the general meet- ings will be held. To date 49 suppliers have reserved booths, compared to 26 suppliers reserving booths as of this date last year. There still remains con- siderable desirable space available for suppliers who wish to exhibit; in total there are 7( booths available for ex- hibits, about 10 more than were avail- able last year. Many companies who did not exhibit last year are exhibiting this year.

On Friday, February 11, a luncheon and fashion show will be given by the

J. SCHNITZER M. RUKEYSER

association in the Colonial ballroom of the St. Francis hotel for the ladies at- tending the convention. Music for the show will be furnished by Arnold Miller and his string ensemble.

A dinner-dance and entertainment will be held in the Garden court of the Palace hotel on Friday evening, Feb- ruary 11. A floor show has been planned and one of the highlights of the en- tertainment will be the appearance of Miss Barbara Luer, a talented soprano, daughter of Mr. and Mrs. Albert Luer of Los Angeles.

Armour Suffers Net Loss of $1,965,291 on 1948 Operations

RMOUR and Company sustained a

net loss of $1,965,291 on its con- solidated operations in the fiscal year ended October 30, 1948. Loss on its do- mestic meat operations alone amounted to almost %c per pound, and profits on the balance of operations were down 50 per cent from the excep- tionally good prof- its obtained from these operations in each of the two previous years. In 1947 Armour and Company had net earnings of $30,- 950,269 and in 1946 earnings were $28,026,342.

George A. East- wood, chairman of the board of Ar- mour and Company and chief executive officer, told stockholders that the un- favorable results were due to a strike which affected the company with par- ticular severity and to several unfavor- able price situations.

Sales totaled $1,991,434,034, an in- crease of about 1% per cent from sales of $1,956,490,057 in 1947. Tonnage vol- ume on domestic meat operations de- clined 8 per cent in 1948 due to the strike.

Eastwood stated that the strike also played a part in one of two abnormal price situations during the year which arose when operations were resumed fol- lowing the strike in the plants that had been shut down. Efforts to get the plants back into operation so intensified competition for the purchase of live- stock that livestock costs increased far beyond the amounts which could be ob- tained for meats.

G. EASTWOOD

The other price situation occurred in February when there was a sudden and sharp break in meat prices. Coming at the time of the heaviest seasonal ac- cumulation of inventories, it resulted in substantial inventory losses. “While we carry base quantities of some of the products in our inventory on a last-in, first-out basis and while we are pro- tected against inventory loss on the base quantities of such products, the break in price came at a time when even as to such products the quantities in inven- tory were considerably in excess of the base quantities,” Eastwood explained. “We were unable to recover these sub- stantial inventory losses in the sub- sequent period of gradually rising prices

4 t BS % ¥ , e

and relatively lower quantities of in- ventories,” he added.

In 1946 and 1947 Armour earmarked a total of $17,500,000 of earnings for the contingency of inventory price de- cline. This amount is being held inas- much as inventory prices are still up. These earnings, along with the balance of retained earnings, are used in assist- ing in the financing of inventories and receivables. To the extent that earnings were retained the company was relieved of the necessity of increasing bank bor- rowings.

In regard to common dividends, East- wood said that as a result of ten years of persistent effort to overcome long standing inherited obstacles to the pay- ment of dividends to the Common stock- holders, the management was in a posi- tion at the beginning of the 1948 fiscal year to recommend to the board of di- rectors that common dividends be ini- tiated. Two dividends of 30c per share each were paid early in 1948 and with the February inventory loss and costly strike over and in the belief that opera- tions the rest of the year would be profitable, a third dividend of 30c per share was declared and paid in July. The company then encountered the pe- riod of difficulty in acquiring livestock and so was forced to defer further dec- laration of dividends on common stock until such action could be justified by profitable operations.

Working Capital Rises

Armour’s working capital was strengthened during the year by the proceeds from the sale in October of $40,000,000 principal amount of 3% per cent sinking fund debentures, due September 1, 1968. Working capital at the end of the fiscal year amounted to $172,901,760, an increase of $19,528,739 for the year.

During the last two years capital ex- penditures for plant and equipment amounted to $13,645,000 in 1947 and $16,470,000 in 1948, which considerably exceeded provision for depreciation and sales. The major construction projects for meat plants which were completed or started during 1948 were: A meat processing building at Portland, Ore.; installation of canning facilities at S. St. Paul; modernizing beef killing fa- cilities at Avellaneda, Argentina; con- structing a new hog yard at Kansas City, Kans.; reconstruction and expan- sion of the branch house at Charleston, W. Va., and expansion of wool process- ing facilities at Chicago, Ill.

The Armour report included a finan- cial resumé of the ten years 1939-1948, which showed how the economy of the nation has moved to a much higher price plane during the period and how this condition imposed upon manage- ment the obligation of providing addi- tional funds in order to maintain unit volume of operations and employment.

At the beginning of the ten-year period Armour had a high ratio of senior obligations in its capital struc- ture, making it necessary for the com-

(Continued on page 25.)

Page 10

Rath Net Off 57%; Sales and Tonnage Also Fall in Year

ET earnings of the Rath Packing Co. for the fiscal year ended Oc- tober 30, 1948, declined to $1,280,675, amounting to $1.42 per share, from $2,- 945,722, an average of $3.27 per share,

R. A. RATH J. W. RATH

in the preceding year. Reduced profits were attributed to the two and a half month strike by the CIO union and to the fact that prices of livestock and product remained at an extremely high level during most of the year. Results were also affected, to a lesser degree, by the decline in inventory prices.

Sales for the year were $185,779,222, a reduction of about 10 per cent from 1947. This de¢rease resulted from cur- tailment of livestock slaughtered and other operations during the strike, the annual report of John W. Rath, chair- man of the board, and R., A. Rath, presi- dent, explained. The reduction in the number of animals slaughtered was uap- proximately 18 per cent from the pre- vious year.

The company maintained a strong financial position and had a net work- ing capital of $11,927,738 at the end of the fiscal year. The ratio of current assets to current liabilities at the year’s end was 2.61 per cent. Regular cash dividends of $1.40 per share were paid during the year.

Investment, after depreciation, for plant maintenance and improvement amounted to $1,264,283. This included extensive improvement of the branch at San Francisco and a new processing branch at Dallas. A contract has been let for the erection of a new building at the Waterloo plant, which will fur- nish improved facilities for maintenance and construction, The report stated that the company will continue its program of construction to improve its operating, processing and manufacturing facilities.

Referring to operations in 1949 the report stated that the company has made considerable progress in the effi- ciency of operations and with the trend toward an increased meat supply, it looks forward to a satisfactory business in 1949.

Income and surplus statements of the

(Continued on page 25.)

Eastwood Resigns as Chairman of Board of Armour and Company

The board of directors of Armour and Company, at its monthly meeting Fri- day of this week, received and granted a request by George A. Eastwood, chairman of the board and chief execu- tive officer, to be relieved in large de- gree of his responsibility in directing company operations, effective at the next annual meeting, February 18. In order that the company might continue to benefit from Mr. Eastwood’s long ex- perience and recognized business judg- ment, the board prevailed upon him to remain with the company in an advisory capacity as chairman of the executive committee of the board of directors.

Following the annual meeting in Feb- ruary, Frederick W. Specht, who has been president for the past two years, will take over as chief executive officer.

Mr. Eastwood has been with Armour for 52 years, beginning as a clerk in a branch house in Albany, N. Y. He be- came the company’s chief executive officer in 1939 and has completed ten years in that capacity.

WSMPA Protests Buying Army Beef in Argentina

The Western States Meat Packers Association has protested to both the Secretary of the Army and the Secre- tary of Agriculture against the pur- chase from Argentina of frozen bone- less beef for use by the Army in the far eastern areas of the Pacific.

The Army has adopted a new policy to go into effect until the end of the present fiscal year on June 30, under which one-half of the Army’s frozen boneless beef requirements in the far eastern areas of the Pacific will be pur- chased from Argentina. Secretary of

the Army Kenneth Royall has stated’

that the Army must buy foreign meat at a price lower than domestic meat, due to lack of funds. It is also stated that the Army has secured the approval of General Douglas MacArthur to accept meat from the Argentine for the Army in Japan.

Late this week the Army announced purchase of nearly 5,000,000 Ibs. of Argentine meat, including 4,141,560 lbs. of boneless beef, 410,000 lbs. of beef liver and 390,276 lbs. of lamb carcasses.

It is understood that the Army will put several refrigerator ships on the run between Argentina and the Far East and it is anticipated that Argen- tine meat will be bought at the rate of 3,000 short tons per month.

The law states that no foreign meat may be used on government contracts within the continental United States and its territories, but does not prohibit its use in other areas.

WSMPA has also protested the pur- chase during the period of January through September of 6,890 short tons of tallow in Argentina for Japan.

The National Provisioner—January 8, 1949

‘ina ‘kers } the ecre- pur- pone- | the

olicy the inder ozen » far pur- y of tated at at , due that al of ecept irmy

inced » ) Ibs. beef sses. will . the Far ‘gen- te of

meat racts tates hibit pur-

uary tons

1949

Little Devices in Modernized Bartusch Plant Ease the Work and Turn Out Better Product

ITTLE devices and arrangements LE which speed and ease the work are by no means least important among the improvements made in the plant of the G. Bartusch Packing Co. of St. Paul, Minn., during a two-year building program to expand facilities and modernize the plant’s operations to conform with BAI specifications. When the building program is com- pleted, the four-story frame ice house in which the company began operations 31 years ago will be razed and the stor- age space which it now supplies will be provided by new facilities above the plant’s new rendering department. Increased killing capacity, greater cooler space, new offices, the new ren- dering department, new locker and rest rooms for employes and enlarged steam generating and refrigeration capacity are the major items in the improve- ment program. Orderly product move- ment, ample sales cooler space and ef- ficient utilization of hot offal cooler space are some of the outstanding features of the rebuilt plant.

Operations Not impeded

Rebuilding and modernization work has been carried on with no disruption of operations.

Several points in connection with the handling of offal are worthy of note.

Viscera are delivered to the hot offal room via paunch trucks. After dropping the heart, liver and lungs at the proper stations, the worker places paunch and gut section in lift which operates pneu- matically. The paunch lift is raised by action of the air piston until it locks with two tripping hooks on the paunch working table. These automatically dump the paunch onto the working table. During the return flight the empty lift requires no attention as the air piston lets it descend slowly.

In washing the paunch the workman employs a tong-acting gripper arrange- ment suspended from a track directly above the paunch washing hopper. The

BARTUSCH PLANT PHOTOS

1) E. R. Gustofson, assistant superintend- ent, with foot on rollers used to protect platform scale and ease loading. 2) Several of these easy-to-reach, dripless offal racks have been built in cooler. 3) O. Kirkeby, offal cooler foreman, with one of the com- pact cages used for livers. 4) Gripper used for holding paunches during rough clean- ing operation. 5) Pneumatic lift automatic- ally dumps its load on paunch table.

The National Provisioner—January 8, 1949

worker opens the trimmed paunch, empties the contents into the washing hopper and places the ends of the paunch between the teethed gripper bars (see Photo 4). The weight of the paunch keeps the opposing teeth locked and keeps the paunch spread out for good cleaning with a hose. The mecha- nism can be released with one move- ment when paunch cleaning is finished.

The washed and trimmed hot offal is trucked into a nearby offal cooler, a unit built during the war. A number of useful product storage racks have been constructed in this cooler which increase the capacity of the room and the ease of branding the offal items. Items such as tongues and hearts, which require stability for branding, are hung on bars which are supported at one end by the cooler wall. The bars are set about a foot apart and stepped back as they rise. The pieces of offal can hang on the rack without dripping on those below and each piece can be reached for branding without difficulty and with- out reaching under or over others. The hanging bars are locked in place while product is on them but can be removed easily for cleaning.

Livers are hung on a rail cage con- structed of welded piping and support rods which are stepped back to provide product clearance and ease in branding. Once loaded and with the product branded, the cages can be moved very close together.

In the hot offal cooler the plant uses a wire basket for washing and draining ox tails prior to packaging for ship- ment. The firm has found that ox tails reach retailers in better condition if they are spread and allowed to drain until the surface moisture is removed from the product. For handling and

Page 11

eek 8

F

freezing items such as cheek meat, the plant has constructed a holding rack for stainless steel pans of 8-in. depth. These pans are held in the hot offal cooler until filled when they are moved to the freezer adjacent to the offal cooler.

The freezer location exemplifies the excellently-planned product flow in the plant. Hot offal moves from the killing floor to the hot offal work room, to the offal cooler and to the freezer or the loading dock which is near the sales and offal coolers.

The loading dock is equipped with three rollaway doors; two face the rail- road spur and one the truck loading dock. The loading dock is constructed of glazed tile with vitrified brick floor and is equipped with Fairbanks rail and floor scales. To protect the floor scale from excessive jarring as the loaded barrels are placed upon it, the plant has mounted two rollers on the loading side of the scale (see Photo 1). The jars resulting from placing the barrels are transmitted to the frame of the scale. At the same time the re- sistance to the upward movement of the barrel is reduced and loading is ex- pedited. In photo 1 E. R. Gustofson assistant superintendent, demonstrates the protective nature of the rollers.

As was stated at the beginning, the plant has excellent product flow, which is illustrated in its rendering opera- tions and the movement of the carcasses from the killing floor.

Inedible materials from the killing floor and hot offal room are fed via chute to a hasher and washer located a half floor below the hot offal room and in turn are fed into a blow tank on the basement level. The accumulated charge is then blown to the rendering depart- ment on the first floor. Crackling cake is stored in a room adjacent to the rendering department which opens onto the railroad spur, while the clarified tallow is pumped to an outside storage tank located above the railroad track. The tank is equipped with heating coils to permit rapid gravity feeding into cars. Throughout processing the in- edible product is moved toward its load- ing point.

The carcass movement is similarly well planned. From the present three- bed killing floor, which is being en- larged and equipped with electric hoists and steel beams to support new offices

Page 12

REFRIGERATION CONTROLS

which will be located directly above the floor, the carcasses move to a chill room which is being rebuilt to have a ca- pacity of 170 head. The present hot carcass cooler, along with a boning room, will be converted to a sales cooler of 170-head capacity. Carcasses from either the hot carcass cooler or the sales cooler will move into the fabricat- ing cooler where boning will be done and sales activities on primal cuts will be conducted. The present sales cooler, after which the new coolers will be modeled, is equipped with eight Geb- hardt units, cork insulation and fluo- rescent lighting. The refrigeration units are equipped with automatic controls which trip out four of them alternately during light load periods.

To permit correct location of the refrigeration units the plant had to equip each one with a small overflow pump to take care of the condensate as the units are below the beef rail, pre- venting the use of gravity.

The electrical controls for the re- frigeration system are located in the loading dock area. Selection of this spot for the controls was prompted by

OFFICIALS IN SALES COOLER

Two of the plant’s offi- cials are shown here. Left to right are War- ren R. Schaetzel, sales manager, and Carl G. Bartusch, secretary-treas- urer. Other executives of the Bartusch com- pany include Richard E. Bartusch, president, and Elsie R. Olsen, vice pres- ident.

its dryness and freedom from the need for maintenance on account of damp- ness.

The plant found that its telephone system broke down frequently in the hot carcass and sales coolers because of condensation. This has been over- come by installation of taxi cab stand type of housing for the phones in these rooms.

The plant has installed its own laun- dry and has reduced its costs by doing so. Savings are made by prolonging the useful life of the laundered articles and eliminating the loss of valuable cloth- ing, such as frocks.

Best Record in Safety Race Made in November

Meat packing plants participating in the National Safety Council safety con- test pushed the accident frequency rate way down to 9.32 in November, the best record for the first four months of the safety contest. The excellent safety performance of November regained ground lost in October and improved the overall cumulative average for the con- test period. November’s lower fre- quency rate brought the cumulative rate down from the average of 11.47 for the three months ended with October to 11.21 for the four-month period.

The overall frequency rate was low- ered by the excellent safety record of Division 1, which reduced its rate from 12.04 in October to 9.17 in November. Within the division the medium-sized packing plants made the best showing with a low group rate of 7.17 compared with 11.08 for October.

The smaller slaughtering plants of the division also markedly reduced their frequency rate from 19.34 in October to 14.82.

Division 2, composed of processing and manufacturing meat plants, re- duced their frequency rate from 22.68 to 17.79.

The four-month cumulative rates for the various units are well below the national average for all industries be- ing 10.23 for Group A of Division 1, the large slaughtering units; 9.47 for Group B, the medium-sized slaughter- ing plants; 17.66 for Group C, the smaller slaughtering plants, and 17.01 for Division 2.

During November one-third of all the contestants worked without a lost time accident.

Illustrative of the fact that a good safety récord is possible in any plant is the excellent showing made by the leaders in Group A of Division 1, slaugh- tering plants working 300,000 and more man-hours per month. The Swift & Com- pany Kansas City plant leads with a frequency rate of 2.31, followed closely by the company’s National Stock Yards plant with a rate of 5.79 and the Kingan & Co. Indianapolis plant with a rate of 6.81. These excellent safety records represent production activities for more than a million man hours.

The National Provisioner—January 8, 1949

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Wholesale Firm Guarantees Exact Serving Cost Control

Leon Oppenheimer Meat Co.,

wholesale meat purveyor, Balti- more, Md., attributes the success and rapid growth of his business to the personalized service he gives his cus- tomers.

Li OPPENHEIMER, president of

“Our organization caters to our cus- tomers in every way possible and we have become personal friends and ad- visers to them rather than a meat sell- ing organization,” he explained. “Our customers—restaurants, hotels, snack shops, luncheonettes and a very small percentage of retail stores and indi- vidual homes—look to us for advice and help in seeing that they get the most for

their money so that they can realize a good profit from our meats.”