The morning news. [volume] (Savannah, Ga.) 1887-1900, 1889-12-02
ARM0UR'S BIG BUSINESS.
TIE FAMOUS PACKER BEFORE THE
SENATE COMMITTEE

| Meats On Account OF South Amer
can Competition - The Present De-
preston N the Cattle Market At
tributed TO Over-Product.or-
WASHINGTON, Dec. 1.-Senstor Vests
COMMITTEES, which has been investigating
the dressed beef business Of the country for
some months, having visited the centers Of
that business IN the course OF their inquiry,
! during the recess OF congress, resumed the
I examination Of witnesses in the room Of
! the Senate committee on commerce yes
terday. There were present of the CON-
| mittee Senators Vest, Coke, Far veil, Man
/ dersOn and Plumb, and a number Of persons
/ interested as witnesses or otherwise.
| Among them was P. D. Armour, the Chi
| cago beef and pork packer. whose
presence the committee failed 70
secure at its sittings in that city.
He was accompanied by his attorneys
As part of his testimony, Mr. Armour read
written statement. which includes figures
| OF the business OF Armour & Co., for
! term Of years, and comparison Of prices
at Chicago ia 1888 and 1889
In the course of the statement, Mr. Ar
rnour said that there had been a reduction
IN the price of canned meats because Of the
CJA4 pctlOu OF NQDSS pEOuQCLS WIN cheap
south American and Australian beef and
muttons, Of fully 50 per cant. The depreci-
alton Of thsss products had reduced the
value of range cattle SO to S12 head.
CAUSE OF THE PRESENT DEPRESSION.
Re said: The depression in prices and
the present state of the cattle market, is
due TO over-pr0duction, especially of grass
fed cattle, and the marketing of immature
animals which are too thin for the block
This mas affect ID all corn-fed and native
cattle except the choicest, and enforced
competition on farmers raising cattle on the
higher priced and highly improved farms
Of Illinois, Iowa, Missouri, Kansas, and Ne
braska, with the ranchers of the west and
southwest, who herd thousands of inferior
cattle upon the public lands or lands OF
little value. The gradual Absorption
OF the ranges by actual settlers and the
over-production of range cattle have greatly
over-crowded the remaining range country,
and consequently lessened the quantity of
grass, and impaired its nutritious quality
As natural result, CRASHED range cattle
have deteriorated in weightand value, and
the southwestern steers now coming weigh
from 10 to 20 per cent. less than steers of
similar character did six years ago."
CENTRALIZED MARKETS.
He said that the changed condition OF
the cattle had necessitated and compelled
they are called, without which large raisers
could not dispose of their cattle, nor could
the export trade in dressed salt or pre-
served meats be carried on He charged
that suca markets are the effect of the pres
ent condition of cattle growing and market
ing, and not the cause. The dressed beef
industry, he says, has proved most bene-
fetal to the cattlemen and beef consumers
alike, for without it, 1t is safe to say. that
cattle would bring price sometimes not
more than the freight. The dressed beef
business is SO concentrated, and is con-
Quoted upon scale of such magnitude that
the dressed beef men can profitably utilize
the ofPal and otherwise waste products of
slaughtered animals, which are absolutely
useless TO small slaughterers.
COMBINATION DENIED.
Mr.. IArmour denied that he or his firm
had ever boon in any combination or agree
ment Of any kind with any other party.
or parties, to fix or control the prices which
should be paid for live cattle, or that either
he or his firm had ever arranged with
others in the dressed beef business or with
shippers of beef in carcass to fix the price
at which such carcasses should be
sold. He did admit, however, that
the prices of cut meats and canned meats
were arranged from time to time with 9th or
producers of those commodities according
ply and demand required, as it was abso-
lutely necessary to do TO protect the dealers
in these articles from sudden violent de-
clines in prices, but in no cases were the
prices exorbitant, nor would it be possible
to make them such, and maintain them SO
for any length Of time, because of the I'M
limited supply OF such cattle, and the
limited demand which the market
| affords for these articles.
PRICES TO THE CONSUMER.
Upon tbesubject of prices to the consumer.
| Mr.. Armour said: THE prices of meats
have changed with live cattle prices as far
as the demands of the public and the
change1 conditions of the butcher business
/ would permit. A butcher who successfully
| completes for the trade of our more omfort-
| able citizens must keep we'll
| equipped and extensively furnished store
| IN locality of high rents
| to be convenient to such trade; must sell
| prime beef and incur considerable expense
| for delivering the purchases of customers to
| their homes. The prices of all coarse meats
have been reduced several cents per pound.
| but the finest roasts and sirloius and porter
| house steaks are sold at range of higher
| and lower figures. The fact that Halstead
| 81 Co., Chamberlain 81 Rowe, Swift & Co.
and my firm regularly take off the hands
| of the butchers of New York, Philadelphia
and Chicago coarse parts of beef from
| prime steers, such as are converted into salt
| beef for the domestic trade and export. at
| "a and 20 cents per pound, and the fact
that these butchers must rely!upon our ira de
largely for disposition Of coarse cuts proves
conclusively the lack of demand for and the
cheapness of such cuts
ARMOUR'S PROFITS
An abstract of the firms business for
1883 showed an average profit of $l.32 per
head of the beef slaughtered
Resuming his oral testimony, Mr.. Armour
said that over-production and ver-market-
ing were responsible for the decrease in the
prices for cattle. The attention of the wit
ness was directed to his statement that the
| prices of hides had fallen because
of the placing of hides upon
the free list, resulting in large importations
| of them.
Senator Vest stated that hides were
placed on the free list in 1872, while the
table Of prices in the statement begins with
| those in 1856.
II do not discuss the causes of the change
in the prices OF hides. l take them as
find them"
Why didn't you begin comparing the
| prices of hides, then, in 1872, when they
were placed on the free list, instead of
1885,"
II do not know wonld ba va 70 Oh NV