The Globe-republican., 1890-05-07
THE BEEF COMBINE.

Report Of tho Select Committee-The 'Bag
Four Controlling Prices-State Legisla-
ton Must Supplement That OF Congress %
Remedy the Situation.
WASHINGTON. May 2.-!The report OF
the special committee of the Senate sp-
pointed in May, 1888, on the transporta-
ton and sale of meat products, was pre-
sented to the Senate yesterday by the
chairman Mr. Vest. 1t is long docu-
ment, accompanied by copy of the tes-
timony taken by the committee in prose-
cutting its inquiries at st. Louis. Chica-
go and New York, and is signed by all
the members of the committee, Messrs.
Vest, Coke, Plumb, Henderson and Far
| we'll. The several legislative measures
proposed by the committee to remedy
the evils of the traffic are set forth in
Mr.. Vests statement in the report Of the
Senate proceedings.
The committee says that when the
examination of the witnesses began in
st. Louis it was evident that conflicting
influences were at work and especially
in the International Cattle Range AssO-
citation, and that Industrious efforts were
being made to prevent the inquiries OF
the committee affecting injuriously the
dressed beef interests of Chicago.
There was nodiversity of opinion among
the witnesses as to the fact that the
methods of selling beef cattle had been
entirely revolutionized in the past ten
years. The revolution took the form Of
concentration of the market for cattle
at few points, with the controlling
market at Chicago. This change, the
committee says, is due principally to
| the fact that few enterprising
men at Chicago are able through their
enormous capital to centralize and con-
troll the business at that point. The
dressed beef and canning business is
practically in the hands of four estab-
lishments in Chicago-Armour & Co.,
| Swift & Co., Nelson, Morris & Co. and
Hammond & Co. Whatever difference
of opinion was expressed as to the exist
ence of a combination between these
firms not to bid against each other in
the purchase of cattle there was no hes
itation on the part of witnesses, even
when obviously prejudiced in favor of
| the packers, in stating that the control
| of the market was absolutely in the
grasp of these four houses if they chose
| to exercise it.
AS result of the influence of these
houses the committee noticed reluct-
ance on the part of cattle raisers and
commission men to testify to facts or
opinions which might prejudice them in
future transactions.
The principal inquiry which the COM
mittee was directed to make was as to
the existence of a combination ''by
reason of which the prices of beef and
beef cattle have been so controlled and
affected as to diminish the prices paid
the producer without lessening the cost
of meat to the consumer" The facts
developed, some of which are detailed
in the report, the committee thinks,
prove overwhelmingly a combination
such as is described in the clause of the
resolution quoted above.
The committee quotes statement
from Mr.. Armour's testimony that beef
cattle had increased more rapidly than
population during the last five years,
from which he argued that the low
prices of beef cattle were partly due to
overproduction. This argument the
committee states, is not warranted by
the facts and the committee has no hes
itation in stating that com binatiOn
exists at Chicago which controls the
market and fixes the prices of beef
cattle in its own interest.
The railroad trunk lines, says the
committee, control the meat traffic of
the country in the interest of the rail-
road companies Comparing the rail-
road charges on car of wheat and a
car of dressed beef, the committee
shows discrimination in favor of
dressed beef of about 60 per cent
AS to the remedies to relieve the situa-
ton the committee says that Congress,
in the bill recently passed by the SEN
ate on the subject of trusts, has gone SO
far as its power extends. State legisla-
ton must supplement that by Congress
to punish combines operating within
State lines, and active, intelligent Of
ficials must be found to enforce the laws
enacted. '1f the Federal and State
author ties" it continues, ''shall thus
act in concert and the other legislation
as to unjust discrimination by railroads
in transporting cattle, the removal of
quarantine restrictions as to American
cattle shipped to Great Britain, and the
breaking up of the monopoly in the
steamship carrying trade of cattle to
foreign ports be enacted, we have great
confidence in obtaining relief from ex-
listing evils
In conclusion the committee says: "If
the cattle raisers of the United States
are only true to themselves the imme-
date future promises deliverance from
present influences. There is no excuse
for panic. The worst feature of the cat
tie trade is the fact that so many cows
and veals are being thrown upon the
market, the indication being that pro-
ducers are panic-stricken and anxious to
realize now without regard to the
future. There were marketed at
Chicago during the past year S,02S,-
PSI cattle, of which from 25 to 80
| per cent. were cows and 4 per cent.
were calves The cattle raisers of the
United States should be and are the
| p,Ocf cop, ;,,dnoa IN thai ou,u