The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1889-09-04
THE COMBINE" LAID BARE
How the Big Chicago Packers Seek to
Hold a Monopoly on the Beef Trade.
Agreement Between Armour, Swift, Morris
and others to Keep Down the Price Of Cat
tie and Sustain That of Dressed Meats.

CHICAGO. Sept 3-Philip Armour, Nelson
Morris, G.. +. Swift, Frank Vogei and John
3. Sherman refused to appear before the
Senate committee this morning. Harvey
L.. Goodale, the publisher of the Drovers
Journal and Daily Sun at the stockyards.
the only witness who had been summoned
present, was placed the stand. Mr..
Goodale did not have the figures at his
tongues end, and submitted Ashley c. Hal
hwelI an employee. to the questioning of
the Senators. Witness said that his esti-
mate showed that the receipts of cattle at
Chicago during the last eight months
had been $4,000 head of cattle.
Of these about 5000 came from
Texas. 1900 from Montana. Wyoming
and the Northwest. and the remainder from
the central States, Illinois being in the
lead He was unable to state any reason
why the ST. Louis trade should not be in
creasing, unless it be on account of the fact
that St Louis has a reputation of being
little slower than Kansas City and Omaha
IN getting business. At Kansas City and
Omaha the business had steadily increased,
but at st. Louis the trade had barely held
its own.
an instant. Said he: Did you ever hear
of the 'eveners'' combinationp
The witness admitted that he had some
twelve years ago. Senator Vest continued:
We'll, did you not hear that clique OF
Chicago shippers made combination with
some of the railroads by which cheaper
rates were obtained from Chicago, and that
by this the ST. Louis business was rulnedY"
The witness had heard some talk OF such
things. The Senator pressed him harder,
and brought in the names of Nelson
Morris and Allerton,e and some Others,
as having been parties to the "eveners
combine. The examination over. recess
until 2 o'clock was taken; Before adj
journing however, Senator Vest made O
statement. He said that the committee
was here for tho purpose OF learning all
there is to be learned about the matters III
hand and proposed to do So. The dressed
beef and stockyards people had paid no at
tention to the summons of the committee,
but they must come forward and testify.
There was no way out of it. Word was
sent to them to that effect.
Charles E. Ingersol was the first witness
in the afternoon. He said when he first
went into the dressed-beef business there
was twice the quantity of dressed beef sold
to Eastern buyers that there Is now. I'm
der the old system there was a great deal
more competition. Ont of LOO pound
steer, witness believed about 675 pounds of
good beef could be obtained. That class
of beef would bring from 314 to cents
pound In the last ten years cattle were
the highest in 1882. They commenced going
up in 1881, and reached high-water mark in
June. 1882. A rapid decrease began In 1885.
went lower in 1886, and reached the lowest
figure in 1887. In 1883 there was a slight i'm
provement during the summer months. but
that was only for the best grade of cattle.
Now said Senator Vest, 1T has been
said here that the enormous fall in the
price of cattle in 1882 was by Over-produc-
ton. but see that since 1882 there has been
a very marked decrease in the supply, and
still the price went down. How do you &C
count for thatV
I, g. -
replied the witness. After few more ques-
tiOns the witness was allowed to go.
Joseph Eastburne, a stOckyards COM
mission man, said he saw a very marked
the supply of stock increased, the number
of buyers showed no propOrtionate in
crease. "How do you account for the fact
that the number of buyers have not in
creased with the supply of materialF" asked
"I attribute it to the dressed beef men,"
Albert McCurdy, another stockyards
commission man, said he, too, noticed con-
siderable of a change in the manner of do
ing business in his trade of late years.
do understand you to saw asked the
chairman, that the most of the cattle
bought out there are bought by the dressed
beef men'n
"Yes.n
would it not be possible for these men
to manipulate the marketsW
Eyes / think they have it in their power
but as far as my observation goes, they do
not do So"
Fred j. Rowland, former chief book
keeper and confidential man for Nelson
Morris q Co., was the next witness.
Can you state" asked the chairman,
whether you know of any agreement or
Armour 81 Co., Swift q Co.. and othersW
Am obliged TO answer that question:"
Yes, sir, you are"
We'll, they, have made combination
among themselves"
"a combination of whatw
"A combination to sustain the price of
dressed beef. They agreed on certain prices
to pay for cattle In certain States, and there
were certain other States excluded. That
Is. in those States they could pay any price
they chose"
TELL me,n said Senator Vest, "have you
been spoken to by any one since you were
subpRnaed to come hereW
''Yes. sir; / was told by the Fairbank
Canning Company that / need not come
here at all; that 1t was not necessary
Mr.. Rowland afterwards returned to the
stand to suggest to the committee that his
idea of the solution of the present difficulty
was the organization of a cattle-raisers'
syndicate. to ship cattle to Europe and kill
them there.
That's what Think said Senator Vest,
but that is what they can't do. They have
not the money. If they had the 800. ZOO. 900
the dressed-beef men have they might do
1t, but the producers have to get their
money as soon as they CAM
Finally recess was taken until t0-mor-
row morning, there being no other wit
nesses present. With an impatient gesture
Chairman Vest said: "Other witnesses have
paid no attention to our subpoena. OF
course am helpless without action by the
committee. You gentlemen understand
that we have power to issue writ of at
taehment. 1t is impossible for the COM
.mlttee TO submit to this treatment"
Resignation of General Manager Jeffery.
CHICAGO, Sept. Be. L. Jeffrey is no
longer general manager of the Illinois Cen
trail railroad. He has had sharp disa-
greement with acting President Hartman
and peremptOrily resigned. to take effect
instanter. The spicy story of Mr.. JEFF
fery's sudden retirement is told in a
letter made public by him this evening.
Mr.. Jeffery has been over thirty wears in
the service of the Illinois Central. COM
mencing as an Office boy. becoming. step by
step. one of the foremost railway officials
in the United States C.. A. Beck. second
vice-president OF the road. will temporarily
succeed him.
The split between Mr.. Hartman and Mr..
.Jeffery had for Its occasion circumstances
growing out of the removal of the presi-
dents Office TO New York, some two wears
ago. at a time when other companies were
moving West. and the fact that all but one
of the directors are New Workers. Mr..