Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1889-12-01

P. d. Armour Closely Questioned by Sem
ator Vest.
WASHINGTON, November 30th.-Senator
Vests committee, which has been 1nvest1-
eating the dressed beef business, resumed
the examination of witnesses this morning.
P. D. Armour, of Chicago, the first wit
ness, said that he had been in the beef bus
mess all his life The dressed beef business
began to be important ten years ago. For
TWO or three years it has not been very re-
munerative.
prices are lower now" said the witness,
Than they were when l began the dressed
beef business. In range cattle the decrease
in prices, however, has not been so great as
40 or As 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. ]. Quinn, one OF Ar
mours "young men," as he termed him,
read long statement, which included fig
ures for term of years, and comparison
of prices at Chicago in 1888 and 1889. The
paper showed a reduction in prices OF the
canned beef product of 10 per cent. In
conclusion, the statement denied that
Armour e. Co. were engaged in any cornbi-
nation whatever to fix the price 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 d Co., during 1888, the
year in which it was alleged, according to
this statement, the profits OF the business
was immense and in which public agita-
ton occurred, resulting in the appointment
of the committee conducting the investiga-
ton. This abstract showed that $40, $50
head had been dressed, on which there was
a profit of S41S, 105 an average of 81 % per
head"
Resuming his oral testimony, Armour
said that over production and over-market-
ing were responsible for the decrease in
Vest asked the witness if the Chicago
market did not control the prices.
~ do not think so" was the answer.
at is the largest market, and of course in
luences the prices at other places. Chi
cago prices regulate prices largely"
Senator Vest reading from the annual
report of the Chicago Stock Yards OF 1888,
called the attention of witness to the fact
that in 1881 there were marketed there l.
49S, 900 cattle, which brought $lS3 00OO0O
and in 1888 2611 900 cattle sold for 1882
600 600. "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 state
ment showing that the increase OF cattle
and population ran along In about the same
proportion. The attention OF the witness
was directed to his statement that hides
were upon the free list, resulting in large
importations of them. Vest stated that
hides were placed on the free list in 1872,
while the table of prices in the statement
begins with 1876.
Vest then discussed with the witness the
combination of packers to Tx prices on bet
ter cuts, to prevent a decline from over
supply. The witness said that this COM
bination 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 ~
THAT l decline to state until after con-
sulting my attorney responded the wit
ness.
Armour admitted being member of the
hog packing pool of 1888 in Chicago.
1--WE paid % cents hog for the privilege
of killing them. Thers was no limit to the
number we killed. There were eighteen
firms and persons interested in the agree
ment."
Have you any agreement with any per-
son as to the prices that shall be charged in
certain districts?"
Absolutely none"
us there any agreement as to the division
of the territory? ?"
The witness declined to answer
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 consumers, he said
beef packers did not enter into competition
with retail butchers anywhere, except at
their own packing houses.
Our firm has never done so anywhere"
said he. I'VE never endeavored to force
the local butchers to buy our meat, or en-
tered into competition with them, except
in one instance at Akron, where an unjust
boycott was made upon u.s."
As to the state of the market, Armour
said if be were in the cattle business he
would stay in it now; that he sees indica
tons of greatly improved condition of
prices within the next three years.
Il suppose you know said Plumb,
"that cattle men all over the country ut
terly disbelieve in competition between
packers in buying cattle"
Armour said such belief is due to misin-
formation. If any man does believe it, he
would surrender it after visiting the stock
yard and packing-houses and studying the
methods of their business. A combination
does exist for the purpose of fixing prices
of the better cuts of beef in New York,
Pennsylvania, Ohio, Indiana, Illinois,
Michigan, Kentucky, Tennessee and Min
nesota.
Secretary Williams of the Chicago Stock
yards Company said no railroads were
stockholders in the company. When asked
if the officers of any roads were stockhold-
ers, he declined to answer On the ground
that it was the private concern of the COM
pany.