, 1889-12-01
The Dressed Beef Business.

' ~ HhiNh hao pCCh
tigating the dressed beef business re.
sumed the examination of witnesses this
morning. p. d. Armour of Chicago
was the first witness. He said he had
been in the beef business all his life.
The dressed beef business began to be
important ten years q. For two or
three years it has not been renumerative
Methods had to be studied and the bust
ness learned. In 1881 or 1882 it became
a paying business. Prices are lower
now," said witness, than they were
when We began the dressed beef business.
In range cattle the decrease in prices, how
ever. has not been SO great as 40 or so
per cent" Armour was asked to what
he attributed the decrease in prices. He
said that he had prepared a written
statement which would give his views.
w. j. Quinn, one of Armour's young
men," as be termed him, read a long
statement which included the figures Of
the business for a tenn of years and a
comparison Of prices at Chicago In 1858
and 1889. The latter year. it was as
serted in the paper, showed a reduction
in the prices of canned beef products so
per cent. In conclusion, the statement
denied that Armour & Co.. had engaged
In any combination whatever to fix prices
to be paid for cattle or the price for which
the product should be sold.
An abstract was given of the dressed
beef business of Armour & Co. during
1888. the year in which it was alleged, ac-
oQrding to this statement. that the profits
Of the business were immense and in
which the public agitation occurred which
racrIlfaH II. tho nnotptpnaz Af N a1,.t
tee conducting this investigation. This
abstract showed that $40, $50 head had
been dressed, on which the net profit was
$4lS, los, an average of 81. 80 per head.
Resumipg his oral testimony Armour said
over production and over marketing was
responsible for the decrease in prices.
Vest asked witness if the Chicago mar
ket did not control prices.
do not think so, vas the answer.
1T is the largest market and of course in.
fuences prices at other places. Chicago
prices regulate prices largely
Senator Vest, reading from the annual
report of the Chicago stock yards for 1888,
called the attention of the witness to the
fact that in 1881 there were marketed
there . l,498, 900 cattle, which brought
$lS3, 900, 900, and in 1888 9 Gil 900 cat
tie sold for 1882, O00, 900. How do you
account for that?"
1T Is in accordance with my state
ment," said. Armour. The growth of
the amount of cattle marketed largely ex.
ceeded the growth of population"
In response to this Vest presented a
statement showing that the increase of
cattle and population ran along in about
the same proportion. The attention of
witness was directed to his statement that
the placing of hides upon the free list re-
suited in large im%porlatlons Of them.
Vest stated that hides were placed upon
the free list in 1872, while the table of
prices in the statement begins with 1876.
Vest then discussed with witness the
combination OF packers to fix prices OF
better cuts to prevent a decline from over
supply. Witness said this combination
included other packers. They all made
the same prices.
well, then, don't you destroy the
operations of the law of supply and de-
mand?"
No, sir; don't think we do"
with whom do you fix these prices?"
"Thatll decline to state until after con
sulting my attorney, responded witness.
Armour admitted being a member of
the hog packing pool of 1886 in Chicago.
I'VE paid 25 cent? a head for the priv
leRe OF killing them. There was no limit
to the number we killed, There were
eighteen firms and persons interested in
the agreement"
Have you any agreement with any
person as to prices that hal be charged
in certain districts2"
Absolutely none"
is there any agreement as to the di-
vision of territory"
Witness declined to answer.