In the rough way, over any long period of time, this is approximately true, but it was probably not true in late 1917. Hog prices at that time were over 200 per cent of the ten-year period, whereas packers’ manufacturing costs were probably not in excess of 170 per cent of the ten-year period. It is conceivable that as the packing business becomes even more centralized and further improvements in the use of by-products are discovered, it may be possible for packers to sell short-ribs, as an average of a ten-year period, for a price no more than the cost to them of 133 pounds of hog flesh. Under conditions as they prevail at present, however, the 135-pound ratio is approximately correct. [Illustration: Illustrating when short-rib sides have been above and below their ten-year average ratio to live hog prices. ] The ratio method of determining profits and losses in the manufacture of various packers’ products is not put forward as an aid in any method of packing house accounting. It is, however, put forward as a method by which the consumer and the farmer can discover in a rough way when the packers are absorbing more than their customary share. A similar chart worked out for lard gives much the same results, altho at times the profit and loss of the two products do not always coincide exactly. For instance, in 1914, lard sold for far less than its normal ratio during the entire year, whereas ribs sold for slightly more than their normal ratio. In 1919, lard sold far above its normal ratio and ribs were below. Similar ratios might be worked out for all the various hog meats, and also for cattle and the various cuts of beef. What examination we have made of some of these ratios indicates that the packers, in their buying of live stock and selling of products, regard each product as a law unto itself. If there is a large amount of stored lard on the market, on account of the shutting off of the German demand, lard prices may be reduced, even tho hog prices are such as to warrant lard selling at a dollar or two more per hundredweight. On the other hand, if the Allies at the same time are in the market for ribs, the prices will be advanced, even tho ribs may be made from hogs at a dollar or two less per hundredweight. The problem of the packers is to buy as cheaply as possible and sell as high as possible, in the knowledge that too wide a spread will invite competition. In the case of hog products, a loss may be withstood on a rapidly rising market, because the manufacturing loss will be compensated for by the speculative profit. This was illustrated during a considerable part of the year 1917, when most hog products sold at considerably less than their normal ratio, but when the packers actually made splendid profits, owing to the continual advance of prices and speculative gain on products on hand.