The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1889-12-01
The Dressed Beef Business.

WASHINGTON, Nov. S0.-Senator Vests
committee, which have been investigating
the dressed beef business, resumed their
examination of witnesses this morning.
P. D. Armour, Chicago, was the first wit
ness. He SAID he had been in the beef
business all his life; the dressed beef bust
ness began to be important ten years ago.
For two or three years it had not been
remunerative; the methods had to be
studied and the business learned. In 1881
or 1882 it became a paying business.
Prices are lower now" said the witness,
Ethan they were when we began the
dressed beef business"
An abstract was then given Of the
dressed beef business of Armour & Co.,
during 1888. Vest then discussed with Ar
mour the combination of packers to fix the
prices better, and cuts to prevent decline
from over supply. Witness said this com
bination included other packers; that they
all made the same prices. ''Well, then,
don't you destroy the operations of the
law of supply and demand?"
NO sir; don't think we do"
with whom do you fix these prices?"
THAT decline to state until after con-
sulting my attorney" responded the wit
ness Armour admitted being a member
1--WE paid % cents hog for the privilege
of killing them; there was no limit to the
number we killed; there were eighteen
firms and persons interested III the agree
ment."
''Have you any agreement with any per-
son as to the prices that shall be charged
in certain districts!"
absolutely none"
SIS there any agreement as to the divi-
sion of territory!n
Witness declined to answer
This abstract showed that $50, $50 head
of beef had been dressed, on which the
net profit was S4lS, los, an average Of 1872
per head.
Resuming the oral testimony Armour
said over-productiop and over marketing
are responsible for the decrease in prices
Vest asked Armour if the Chicago market
didn't control the prices, Il dou't think
SOD was the answer. 1T is the largest
market and of course influences the prices
at other places. Chicago prices regulate
prices argely" Senator Vest reading from
tine 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 1,49S,000 cattle, which
brought SlS3, 00O, 900. and in 1888, 2,6l1, 900
cattle sold for 1882, 100000.
"How do you account for that?"
at is in accordance with my statement"
said Armour. "The growth of the amount
of cattle marketed largely exceeded the
growth of the population" In response to
this Vest presented the statement showing
that the increase of cattle and population
ran along in about the same proportion.
The attention of the witness was directed
to the statement of the placing of hiies
upon the free list, resulting in the large
Importation of them. Vest stated that
hides We're placed on the free list in 1872,
while the table of prices IN the statement
begins with 1876.
Armour said his firm had no private con-
tract with any railroad or railroad associa-
ton for reduced rates. Returning to the
question of prices to the consumer, he said
the beef packers did not enter into compe-
tition with the retail butchers anywhere
except at their own packing houses. Our
firm has never anywhere" said he, ''en-
deavored to force local butchers to buy our
meats nor entered into competition with
them, except once in Akron, where
an unjust boycott was made upon u.s." AS
TO the state of the market, Armour said if
he were in the cattle business he would
stay in it now; that he sees indications of
n greatly improved condition of prices
within the next three years.
II suppose you know,n said Plumb, that
the cattle men all over the country utterly
disbelieve in competition between packers
in buying cattle"
Armour said that such belief was due to
false information. If any man does believe
it, he would surrender his belief, after visit
ing the stockyards and packing houses and
studying the methods of business, That
combination does exist for the purpose of
fixing the prices of the better cuts of beef
in New York, Pennsylvania, Ohio, Indiana,
Illinois, Michigan, Kentucky, Tennessee.
Secretary Williams, of the Chicago Stock
Yard company said no railroads were
stockholders in the company When asked
If tie officials of any of the roads were
stockholders, he declined to answer on the