, 1889-12-05
DRESSED BEEF
Senator Vest Resumes the
Examination.
PHIL ARMOUR ON THE STAND
Chicago Prices Regulate the
Beef Markets.
0VER.PR0DUCTION IS RESPONSIBLE
And Over Marketing the Cause
for the Great Shrinkage

wAsHtSGros, Nov. 30. Senator Vests
committee, which has been investigating
tho dressed beef business, resumed the
examination OF witnesses this morning.
p. ID. Armour of Chicago, the first wit
ness, said he had been In the beef
business all his life and that the dressed
beef business began to be important ten
years ago. For two or three years It
had not been rcmuncrative. Methods
had to be studied and the business
learned. In 1882 1t became paying
business.
prices arc lower now," said witness,
''than they were when we began the
dressed beef business. In range cattle
tho decrease i'm prices, however, has not
been so great as 40 or 80 per cent"
Armour was asked as to what he
attributed the decrease in prices.
He said that he had prepared written
statement which would give his views.
w. j. Quinn, one of Armour's 'young
men" as he termed him, then read n
long statement which included figures of
the business for term of years, and q
comparison of prices at Chicago in 1888
and 1880. The latter year, it was asserted
u
prices of the canned beef product of 80
per cent. In conclusion the statement
denied that Armour & Co. were engaged
tn any combination whatever to fix the
price TO he 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 were immense and in
which the public agitation occurred, re-
sulting in the appointment of the COM
mittee conducting the investigation.
This abstract showed that $40, $50 head
had beon dressed, on which there was
net profit of $4ls, los, an average of 81 81
per head.
Resuming the oral testimony, Armour
said, "Over-production and over-mar
keting were responsible for the decrease
in prices.''
market did not control prices.
~ do not think So" was the answer.
at is the largest market and of course
influences prices at other places. Chi
cago prices regulate prices largely"
Senator Vest, reading from the apnu-
al report of the Chicago stock-yards for
1888, called the attention of the witness
TO the fact that In 1881 there were mar
keted there 1,40s,000 cattle which
brought $1S3, 100000, and in 1888 Q, ,6il,
GOO cattle sold for $ls2, 100000.
How do you account for that" he
asked.
ut is in accordance with my state.
ment," said Armour, that the growth
of the amount of cattle largely exceeded
the growth of population"
In response to this Vest presented a
statement showing that the increase of
cattle and population ran along in about
the same proportion.
The attention Of witness was directed
to his statement that the prices of hides
upon the free list resulted In the large
importations of them. Vest stated that
hides were placed on the free list in 1872,
while the table Of prices begins with
1879,
Vest then discussed with witness the
combination of packers to fix prices of
better cuts so as 10 prevent a decline
from over supply.
Witness said this combination in
cluded other packers. They all make
the same prices.
well, then, don't You des troy the
operations of the law ofsupply and de-
man1P"
mo, sir. don't think we do"
with whom do you fix these pricesG
THAT | decline TO state until after
consulting my attorney" responded the
witness.
Armour admitted being a member of
tho hog packing pool of 1886 in Chicago.
We pnid 25 cents hog for tho privilege
of killing them. There was no limit to
the number We killed. There were
eighteen trims and many persons inter
ested in the agreement.
Have you any agreement with any
person as to prices that shall be charged
In certain districts?"
absolutely none"
"is there an agreement as to divis-
ion of territory"
Witness declined toanswcr.
Armour said his firm had no private
contract with any railroad or railroad
association for reduced rates, and return
ing to the question of prices to consum-
ers, he said:
Beef packers did not enter into COM
petition with retail butchers anywhere.
except at their own packing houses.
Our firm has never anywhere" said he,
''cudcavored to force local butchers to
buy our meats nor entered into competi-
tion with them except In one instance at
Akron. where an unjust boycott was
made upon us"
As to the state of the market Armour
said If lie were In the cattle business lie
would stay in it now that he sees indi-
cations OF n greatly improved condition
OF prices within the next three years.
II suppose you know said Plumb,
"thnt cattle-men all over the country
utterly disbclieve in competition between
packers III buying.caftle?
Armour said such belief was due TO
false infoI nation. Ii any man did
believe it he would surrender his belief
after visiting the stock yards and pack
ing.houscs and studying the methods Of
the business. \ combination does cx-
lat for the purpose of fixing the price of
better cuts of beef In New York, Penn
byivania, Ohio, Indiana, Illinois. Miehi-
gan and Tennessee.
Secretary Williams of the Chicago
Stock Yards Company said that no ra IL
roads were stockholders IN the company.
When asked if officials of any roads were
stockholders lie declined TO answer ON
the ground that IL was the private con-
cern of the company,