, 1888-11-22
CAUSE OF LOW PRICES.
Proceedings of the Senate Com,
mittee at St. Louis.
Investigating the Cause of De-
preston in Prices.
The Chicago Combine and Its
Methods.

mittee investigating the cattle question
resumed work this morning. The first
witness was j. l.. Bush, a cattleman of
Colorado City, Tex. He related the deca
dence of prices on cattle and attributed 1t
principally to over production. He had
heard of a combination of dressed beef
interests in Chicago, but did not have
personal knowledge Of its existence.
Witness had no personal knowledge of
discrimination by railroads.
The next witness was j.. M. Osborne,
division freight agent of the Wabash.
Witness said he had been in the freight
business forty-two years. He owns a farm
in Nebraska and raises cattle. His evil
dence was substantially as follows:
There are fourteen classifications in
cattle. Thirteen of these are sold by
weight. while mich COWS are sold by the
head. Chicago was undoubtedly the
largest cattle market in the country and
shipments from Chicago to the interior of
illinois were very large. Illinois farmers
buy good cattle, but the production there
has largely decreased, Osborne then ex.
planned how the consolidation of commod-
tiles at any point reduced prices. He did
not know personally of the existence of a
combine in CHICAGO for the purpose of
reducing prices To Tue producer. There
was an element in railroad tariffs now
which had never existed prior to the pass
age OF the interstate commerce law. That
was printed rates so that a shipper knew
just what he had to pay. One-sixth of
the cattle shipped from Illinois to Chicago
averaged 1900 to I,500 pounds. Cattle
rose 81 per hundred in May last, but have
deprecated five cents since Ootober.
Senator Nest-What caused the rise in
price in May?
Witness-I think it was the appoint
ment of this committee. | may be hung
by some of the cattlemen for saying this,
but L am not here in the interest of cattle
men. | never saw, and | think no cat
tlemen ever saw, a rise in the price of
cattle in the summer before.
Senator Vest-Is not the concentration
of a market at Chicago an injury to cattle
raisers?
Witness-I think so, but others are of
the opinion that it is an advantage be-
cause they take all light cattle and use
them for canning purposes.
Senator Vest-ls it not a fact that St.
Louis as a cattle market has largely de-
creased?
Witness-lt has not increased.
Senator Vest-But Chicago has gone
ahead?
Witness-Yes.
Senator Vest When did this great
difference between the two cities begin?
The maximum was reached here in
1881, when the receipts were 500, $50
| had ChIoa uoic raoaiNto that ,,oor xuono
l.49S, $50. St. Louis dropped in 1886 to
81, $50. and Chicago in that year was
] 1868, 900.
Senator Vest-To what cause do you
attribute this? Was there a combination
called the 'Eveners" in 1883 that divided
the cattle business?
Witness-Yes. There was such a COM
bination, and there was a rumor to the
effect that that combination took business
from st. Louis and put it in Chicago. |
know OF no other transportation reason
for the change in the market from st.
Louis TO Chicago.
Senator Vest-Did not the "~eveners"
get $l5 per car?
Witncss-There was a rumor to that
effect.
Senator Vest-Was the Wabash asked
to pay its share to the combination?
Witness-Yes. Such demand was
made in 1855. but the Wabash declined
to do so.
Senator Cullom-What roads were in
this combination2
Witness-The New York Central, Erie,
Pennsylvania and connections. From the
beginning of this combination Chicago
commenced going ahead at a phenomenal
rate and st Louis fell back. The comb.
nation was for the benefit of Chicago, and
the rebate did not apply to st. Louis or
any other place.
j. c. Beatty of FL Paso, Tex, was
raiser, buyer and seller of cattle. He was
in the same business in California before
going to Texas. The firm with which he
was connected put up a $4,000 r~efriger-
ator which enabled them to have fresh
meat from four to FIVE days old. This was
entirely new there. A railroad agent in
formed them that his obligations to Mr..
Armour were such that he would not get
cars tor them to ship cattle out to the
Pacific coast. The result was that
the refrigerator had to be shut down. Then
Mr.. Armour began putting beef in re-
'rigerator cars and he broke the market
from 81 cents to ] cents, and cattle rails.
ers near Ell Paso were compelled to ship
to Kansas City at a loss. His firm now
shipped beef to the City of Mexico,
which was a better market the year
around than arv in this country.
Senator Cuiiom-Thcn you we're driven
out of the United States?
Witness-It looks that way. Witness
said he referred to the Southern Pacific
and the Santa Fe roads.
Senator Plumb-Did you make com