Returns in the Western Range Cattle Industry: Reconstructing the Financial History of the Matador Land and Cattle Company, 1883-1920

Essays in Economic & Business History Volume XXXV(2), 2017

26 Pages Posted: 22 Nov 2022

See all articles by Mary J. Billiot

Mary J. Billiot

New Mexico State University

William McFerrin

New Mexico State University

Douglas Wills

University of Washington, Tacoma - Department of Business Administration

Date Written: June 17, 2017

Abstract

Much has been written concerning the rate of return earned by investors in cattle ranching during the open range era of the American West. Individual and foreign investors supplied large amounts of capital to stock the ranges; fortunes were made and lost in a short 20-year span. Financial histories abound in the literature regarding the return on investments. Most, if not all, rely on published financial data to determine performance. Yet, accounting practices of the time render any financial performance calculated from published financials problematic. This article estimates the financial performance of the Matador Land and Cattle Company for the years 1882-1920 by adjusting the published financial data to conform to modern accounting practices. In doing so, a more accurate picture of the financial performance of a large Scottish cattle firm operating on the open range emerges. Additionally, the article estimates the return that a typical investor earned holding stock in the Matador. Taken together, these measures provide a reflection of the rate of return during the open range era of the American West.

Suggested Citation

Billiot, Mary J. and McFerrin, William and Wills, Douglas T., Returns in the Western Range Cattle Industry: Reconstructing the Financial History of the Matador Land and Cattle Company, 1883-1920 (June 17, 2017). Essays in Economic & Business History Volume XXXV(2), 2017, Available at SSRN: https://ssrn.com/abstract=4218976

Mary J. Billiot

New Mexico State University ( email )

College of Business
Las Cruces, NM 88003
United States

William McFerrin (Contact Author)

New Mexico State University ( email )

Las Cruces, NM 88003
United States

Douglas T. Wills

University of Washington, Tacoma - Department of Business Administration ( email )

1900 Commerce Street, Box 358420
Tacoma, WA 98402-3100
United States
253-692-5626 (Phone)
253-692-4424 (Fax)

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