The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1889-09-12
ARMOUR'S STORY.
FURTHER TESTIMONY BEFORE THE
SENATORIAL BEEF COMBINE
COMMITTEE.
p acker Armour Details What He Knows
and Denies that He Knows of
Any Combine.

KANSAS CITY, September 1O.-The sena-
Ttorial cattle investigation committee re-
sumed its session to-day. Senator Farwell,
"of Chicago, joined the committee at its
morning session, having arrived on the
early train.
The first witness was David Reagan,
dealer for forty years in cattle in Atchison
county. His testimony tended to corrobor-
ate the evidence given yesterday concern
ing the lack of competition at the present
Chicago market and the existence of COM
bination between packers.
James H. Payne live stock commission
merchant of Kansas City, thought the only
method of restricting the spread of Texas
fever and of ultimately stamping it out was
the establishment of a permanent system OF
sanitary regulation under the national de-
partment of agriculture.
Mr.. Reagan was recalled by Senator Far
well who would know why thelprice of cattle
had fallen so much during the last
ten years. 1t was for two reasons witness
thought. First, over supply and demand,
and second, the controlling of the market
by few men.
(Which has the greater effect?" asked
Mr.. Farwell.
"The over supply" answered witness.
"The control of the market by the buyers
does not amount to much, then?"
"No very little"
S. B. Armour, head of the Armour Pack
ing company in this city, next took the
stand. He had no agreement with the rail-
roads by which he got lower rates on ship
ments than any other firm. Witness de-
MED that he was member of any combi-
nation whose purpose was to control either
the prices of cattle or dressed meats. The
territory was not divided up between the
packers. All the packers were in all the
markets. Competition was very brisk, so
brisk, in fact, that even he and his brother
often cut each others business throats.
"Did he have knowledge of any combina-
ton in Chicago2" Senator Vest asked.
Armour refused to answer. He had not
any connection with the business of the
Chicago Armours anyway.
s. B. Armour said as preface to his tes-
timony that he desired to assure the COM
mites of his profound respect, but to in
form them at the same time that he shonld
refuse to answer any and all questions that
would have tendency to reveal the inside
of his private business or to expose to his
competitors his trade secrets.
Senator Vest assured him that the COM
mittee had no disposition to pry into his
private affairs only so far as they might be
of exceptional interest to the public. As
to your refusing to answer questions we
shall record your refusal and refer the
question to a higher tribunal-the senate
of the United States-whether or not we
can make you answer the questions.
Armour explained that the Kansas City
Armours and the Chicago tArmours con-
Quoted entirely separate packing houses.
They were in fact competitors in the same
markets.
In replying to questions regarding prices
paid by witness for cattle and prices re-
ceived for varions parts OF the animal after
it had been slaughtered and dressed, it was
found that the profit only figured up sixty
cents per head at liberal estimate.
tHum Hum! there must be some Emis-
take there" meditated Senator Vest.
so you think2" asked Mr. Armour,
'Now what do you think would be a fair
profit on a steer of an average weight and
quality2"
The senators would not venture an opin-
ion. Mr.. Armour had a balance sheet with
him showing the profit, but he did not wish
to expose his business. He would not give
the total profit, but would let the reporters
figure it out.
1.-THE balance sheet showed" he said,
"that he had killed 144,S63 head of cattle
during the year 1887. They had netted him
JuSU 900 Genus per nedu pIOLG'
"Your testimony" said Mr.. Vest, "shows
that the price of meat to the consumer had
not decreased during the time that cattle
had deprecated in value. How did that
come about and who gained the profit2"
"The prices of meat to consumers had
decreased on all butcher cuts" said wit
ness. "The prices of these have been main
tanned because the demand for that kind of
meat had increased. More people eat bet
ter meat"
Coming to the question of the combine,
Mr.. Armour denied that there was any
combine, at least so far as he was interested.
Wherever he bought cattle he came in COM
petition with other buyers and wherever he
sold dressed meats he met other firms who
competed with him for the trade. There
was no agreement as to prices between
packers so far as he knew in Kansas City,
"How about Chicago packersP" asked
Senator Vest.
81 decline to answer" replied the wit
ness.
In regard to an alleged agreement be-
tween some of the railroads and big pack
ers, Mr.. Vest wanted to know if the roads
made any special rates.
So far as witness was concerned, he
(witness) knew of such an agreement. He
was quite sure that the rates to all packers
and shippers were practically on the same
basis.
What rate are you paying now2' asked
Mr.. Plumb
81 decline to answer"
to the question of competition
packers, Mr.. Armour stated that it
was very brisk, so brisk, in fact, that there
was very little profit in the dressed meat
business. Even he and his brother, p. ID.
Armour, cut each others business throats
Every day in nearly every market in the
After recess several shippers of cattle
we're examined to determine whether there
vas any favoritism shown by railroads.
The testimony showed that there was not.
The committee then adjourned until to-
morrow.