For every boxcar stuffed with live cattle, there would be a certain amount of those cattle that were useless upon arrival. Some cattle would lose weight, decreasing the amount of usable meat, and some cattle would become sick, or even die. Another cost that Swift incurred was the feeding cost of keeping cattle alive and healthy...
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With all of these inefficiencies, Swift saw the opportunity to reduce costs significantly. Swift wanted to shift their operation West, slaughter the cattle there, and freight the "dressed" or cut meat East, therefor reducing transportation costs. Hathaway strongly disagreed with this proposition, pointing that it was "too radical a change"(source)...
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