Los Angeles daily herald. [microfilm reel] (Los Angeles [Calif.]) 1884-1890, 1889-12-01
DRESSED BEEF.
r. ID. Armour Before Senator Vests
Committee.

WASHINGTON, November 30.--Senator
Vests committee, which has been invee-
tigating the dressed beef business, re-
sumed examination of witnesses this
P. d. Armour, OF Chicago, the
first witness, said he had been in the
beef business all his life. The dressed
beef business began TO be important ten
years ago. For two or three years
ii had not been remunerative.
Methods had to be studied and the busl-
ness learned. In 'Sl or 'S2 it became a
paying business. "Prices are lower now
said witness, ethan they were when we
began the dressed beef basiness in range
cattle. The decrease in prices, however,
has not been 30 great as 40 or so per
cent. per annum."
When asked to what he attributed the
decrease in prices, he said that he had
prepared written statement which
would give his views.
w. ]. Quinn, one OF Armeur's "young
men," as he termed him, read long
statement which included figures of the
business for term of years, and o COM
parison of the prices at Chicago in 'S3
and "a. The latter, it was asserted in
the paper, showed reduction in the
prices of canned beef products of 90
per cent.
In conclusion the statement was denied
that Armour & Co. engaged in any com.
bination whatever TO fix the price to be
paid for cattle, or the price for which the
product should be sold.
Vest then discussed with witness the
combination of packers to fix the prices
to prevent decline from an over-supply.
Witness said this combination included
other packers. They all made the same
prices.
"Well, then, don't you destroy the
operation of the law OF supply and de.
mand?"
''No, sir; don't think we do.''
With whom do you fix these prices ?"
That decline to state until after
consultation with my attorney"
Armour admitted being member of
the hog.packing pool of 1886 in Chicago.
1--WE paid twenty-five cents hog for the
privilege of killing them. There was
no limit to the number we killed. There
were eighteen firms and persons inter-
estsd in the agreement.
Have. you any agreement with any
person as to the prices that shall be
charged in certain districts?"
Absolutely none."
us there any agreement as to the di-
vision of territory?"
Witness declined to answer.
An abstract was given of the dressed
beef business of Armour & Co. during
88, the year in which their business was
20 immense, and in which public agita.
zion occurred, resulting in the appoint.
nent Of the committee conducting the
Investigation. This abstract showed that
$40, $50 head had been dressed, on which
he net profit was $41S, Jos, an average of
81 80 per head.
Resuming the oral testimony, Armour
laid production and over-marketipg
we're especially responsible for the de.
,rease in prices.
Vest asked witness il the Chicago
market did not control the prices.
II do not think so," was the answer.
IT is the largest market. and of course
Influences prices at ether places. Chi
ago prices regulate prices largely"
senator Vest reading from the annual
eport Of the Chicago stockyards for 1873,
allied the attention of witness to the
act that in 81 there were marketed
bore ,498, 900 cattle, which brought
lS3, 900 900, and in 'S8 2,6lI 900 cattle
old for 1882 ZOO, 900. elbow do you
ccount for that"
1T is in accordance with my state
aent," said Armour. "The growth Of
be amount of cattle marketed largely
xceeded the growth Of population"
In response to this, Vest presented a
tatement showing that the increase oil
attic and population ran along in about
he same proportion. The attention of
fitness was directed to the statement
nat the putting Of hides upon the free
st resulted in large importations of
lem. Vest stated that hides were
laced on the free list in ~, while
70 change q. Of prices in the statement
egins with '76, II
Armour said his firm had no privste|
'ntract with any railroad association II
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