Fort Worth daily gazette. (Fort Worth, Tex.) 1882-1891, 1889-09-11
THE BEEF COMBINE.
The Senate Committee Resumes Its In
vestigation at Kansas City.
G. P. Armour is silent on the Chicago Com
bination, but Says He Ras No Con-
necfi6n with 1t.

-
The first witness was David Reagan,
dealer for forty years IN cattle in Atch-
son county. His testimony tended to
corroborate the evidence given yesterday
concerning the lack of competition at
present at the Chicago market ana the
existence of a combination between
packers.
James Fl. PAYNE, live stock commls-
sion merchant Of Kansas City, thought
the only method Of restricting the spread |
of Texas fever and of ultimately stamp
ing il out was the establishment OF d
permanent system of sanitary regulation
Under the national department of agrl-
culture.
Mr.. Reagan was recalled by Senator
Farwell. who wanted to know why the
nrice of cattle had fallen so much during
The last ten years. It was for two rea-
| sons. the witness thought. First, over
sunplv, and second, the controlling OF
| the market by few men.
''Which has the greater efectF asked
! Mr. Farwell.
s'The over supply" answered the
witness.
ssThe control of the market by buyers
does not amount to much, them
ono, very little. -
b. Armour, uSdu VI LLC [AAAAAO'AA
hacking company of this city, next took
! the stand. He had no agreement with
| railroads by which he got lower rates on
| shipments than any other firm. Inc
| witness denied that he was 4 member or
any combination whose purpose 1t was TO
| control either the prices OF cattle OF
dressed meat. Territory was not divided
up between packers. All packers were
in all markets. Competition was very
brisk-so brisk, in fact, that even he ana
his brother often cut each others pusl-
ness throats.
ssDid he have knowledge of any COM
bination in Chicago? Senator vest
asked.
Armour refused to answer. He had no
connection with the business OF
the Chicago Armours in any way.
S.B. Armour said as preface to his
testimony that he desired to assure the
committee of his profound respect, bat
TO inform them at the same time that ne
should refuse to answer any and all
questions that would have a tendency TO
reveal the inside of his private business
or TO eXDOse to his competitors his trade
secrets.
Senator Vest assured him that the
committee lad no disposition to prT INTO
private affairs, only so far as they might
be of exceptional interest to the puDilc'
GAS to YOUR refusing to answer ques-
lions, we shall record your refusal ana
refer the questions to q higher tribunal
Be- the senate Of the United States, as to
whether or not we can make you answer
questions.
Armour explained that the Kansas
CITY .Armours and the Chicago ArmourS
conducted entirely separate packing
houses. They were, IN fact, competitors
: in the same market. In replying tC
} Questions regarding the prices paid by
the witness for cattle and the prices re-
celved for various parts of the animal al
20 ter il had been slaughtered and dressed
it was found that the profit only Inquired
I'D 60 cents per head at liberal esti'
tnate.
sIsr's Hum-m-m there must be some mis-
4 Blake there - meditated Senator Vest.
ESQ YOU think so?' asked Mr.
al Armour ''Now what do you thinl
+ would be a fair profit on steer of av
erare weight and quality?'' The senate
q would not venture an opinion. Armou
g had as.haIanCe sheet with him SHOWING
NrT71fff, but he did not wish to expose M
business. He would not give the tota
profit but would let reporters figure
ont. The balance sheet showed, he SAID
j that he had killed IA ,S63 head OF cattl
- during the year of 1887. They had net
tea him Just 80 G cents per head profit.
''Your testimony, said Mr.. Vest
shows that the price of beef to the con
49, sumer had not decreased during the tim
that cattle had deprecated IN value
How did that come about and who game
profit?
l ssThe prices of meat to consumers ha
6 decreased on all except butchers cuts,
said the witness. 1.-The prices of the!
had been maintained because the de
mand for that kind of meat had il
), creased. and more people eat bette
meat - Coming to the question of tt
cornllfBe, Mr. Armour denied that the
lsFFa5a any combine, at least any that he Wi
81 fhterested in Wherever he bought ca
. tie he came in competition with other bu,
q ers. and wherever he sold dressed mea
=, he met other firms who compett
so oL with him for trade There was !
ms agreement as to prices between packe
wi; so far he knew in Kansas City. p
. md '.How about Chicago packers?'' ask
Mt Senator Vest.
W. u decline to answer" replied t
. witness.
In regard to the alleged agreement b
y. tween some of the railroads and the b
~ packers, Mr.. Vest wanted to know if t
! roads made any special rates.
/ So far as the witness was cOnceTne
!. the witness knew of no such agTeemen
= He was quite sure that rates to all pac
= ers and shippers were practically on t
. same basis.
s~u .sWhat rate are you paying now,
asked Nj. Plumb.
q decline to answer.
Returning to the question of compe
-. ton between packers, Mr.. Armo
-" stated it was very brisk; so brisk
fact that there was very little profit
dressed meat business. Even he and
brother, P. D. Armour, cut each 9th
. business throats every day i'll nea
5lv every market III the country.
DO After recess several shippers Of cat
ven were examined TO determine wheti
ii5 there was any favoritism slsgwn by
railroads. The testimony Showed Il
49, there was not. Comw1tee then {
6ssspned until to-mogsNEFs