Fort Worth daily gazette. (Fort Worth, Tex.) 1882-1891, 1890-06-19
ROUND-UPS.
rt of Vests Committee to Investi,
cate the Beef Combine.
or.sr statements by Phil Armour as to
,be Profits on Cattle Bought for
the slaughter Pen.

rss report submitted by the select
,r,;ttee Of the United States senate,
'rroint,d in 1888, to investigate the
.n,s. Of depression in the cattle trade,
'wbieb Hon. George G. Vest is CHAIR
saws the Las Vegas Stock Grower,
'r.r. over GOO pages and it is therefore
..,ibIe TO do much more than refer
.,o principal points of the document.
..,,be existence of combination to
..roI the prices of beef and beef cattle,
% a,,, the committee does not contradict
wa, ,rmo,Ir' statement that there was
wv s,Icb combination the report says:
w ,r.is fair 70 presume that men found in
.binatiou for mutual self-interest in
hing will combine as to another, if
Wv Wv motive and opportunity occur, - and
~ -.a. the fact that the overwhelming
l.iob, Of testimony of witnesses of the
s;r5sset character is to the effect that
-,,la owners going with their cattle to
.bs chicago and Kansas City markets
god no competition among buyers, and
~ ,bqy refuse TO take the first bid are
.,rerslly forced to take a lower one.
Eba ranort goes on to say that the same
asr,ies or their agents, combined and
Dorfsderatei in other matters of like
character beyond question.
r,is admitted that they combined to FIX the
20 of beef to the purchaser and consumer, so
!. 70 keep up the cost In their own interest.
n is admitted that they have an agreement
- ~ interfere with each other in certain mar
I Io' and localities in the sale of their mest.
Is II Is proved beyond doubt that they acted
~ -s~TI
..c.sgamDton. Va, the national hospital for the
:r,sne ana other public institutions at Wash
,1,fon, D. c.. the bid for the contracts being
made by one, and the meats being then supplied
Ir each o. the dressed Deer men alternately Tor
" Tbey combined in opening shops and un-
ssrseIllng the butchers of cattle at Detroit and
o.6er places in Michigan, and at Pittsburg, Pa,
N or5er TO force them to buy dressed meat.
They combined in refusing to sell any meat
., bptcbcrs at Washington, d. c., because the
bptrhers had bid against them for contracts to
srnDly with meat the government institutions In
he District OF Columbia.
These conditions are sustained by evil
dence from many parties, but which is
Zoo yOuminOus even to refer to.
As to the profits of the "Big Four, -
,ba report shows that there is variance
IN the testimony of several of the parties.
According to Mr.. c. b. Armour his
proht on a Texas steer weighing 1000
mounds and costing S25 was 3S cents. On
cornfed steer weighing 1900 pounds and
costing S45, the loss was S6.27. Mr.. P.
D, Armour testified that the net profit
Der head on all cattle slaughtered in Chi
caro was 81 %. OF course the commit
lee must conclude these statements are
uncomfortable. In figuring the cost of
the cattle dressed by the firm P. d. Ar
mour puts the cost of $40 ,649 cattle
slaughtered in 1889 by his firm at
1894 $500 per 100 pounds. This the
committee shows is entirely too high, as
the highest priced cattle during that : ear
did not average so high price, and IT is
yell known that large percentage of
the stock bought by the firm we're cheap
cattle. To show that the dressed beef
firms made more profits than those re-
turned by P d. armour, the committee
refers to the sale of the plant of G. H.
Hammond Y Co. to the English syndi-
cate. II says:
at apperas from the advertisements in tbe
London papers that the American company md
capital OF 8 AS, 600, as stated by the Chiotgo
company s. 400 900, consisting of 81, ZOO 20 in
Gper cent mortgage debentures, 81, $50 900 IA s
yer cent cumulative preference shares, and
1850 OuJ IN ordinary shares. The prospcctae
undertakes to show that the new company cih
pay per cent on the debentures, per cent. s6li
The preferred shares, and even l6 per cent onshe1
ordinary shares, and still have surplus ot8d0la.
thzn 8IO,JDU. This showing Is based upon 8
statement Of the company's profits for tfe last
three years taken from the books by Che new
eompany's auditors, Price, Warehouse & Co.,
Of london
This statement is that the profits for these
years were respectively $40, 2l2, Sel6, G62, and
SIS, 666. It will be seen that the profits of the
l-si year were about % per cent on the capital
sock. There are various contracts connected
win the business as going concerns, says the
pFo'pec;us, which from the nature of the bust
ness II might be injudicious to publish.
II Is not probable that this refers to any
agreement for the suppression OF competitions
GAhough II may suggest such an agreement to
lae American reader familiar with the manner
IN which the industry has been carried on"
The committee, from the facts before
1t, made the profits of the dressed meat
companies 81. 10 per head instead OF the
sum given by the Armours.
As to the transportation of meat pro-
ducts, the committee shows that there
vas discrimination by the railroads in
favor of dressed meats. The cattle cars
aud refrigerator cars gong from Chicago
70 New York have both to be hauled |
Uack empty. A cattle car is much the |
Agltest, yet no drawback would be given
Oh them, but the refrigerator car, being |
great deal heavier, was allowed three |
Iolrths Of a cent mile for each mile |
travelled, going and coming, making the |
uFaWosck $50. The railroads, in other |
words, gave the owners of the refriger- |
s.nr cars which carried the dressed beef |
go round trip for the use of each car, |
=, they would not give the owners of !
,S cattle cars anything for the use of |
:, As to the export trade the report shows
'uA| the export OF live cattle has in
VI, % per cent. in six years, and the
, ~ Of dressed beef "a per cent. in
'ls same time. The testimony that the |
,aIe Efforts were made TO control the /
. ~ trade that were made TO control |
.us domestic trade was conclusive. Con-
naV's would be made with agents of |
,s'seiS and of lines of vessels for their
~, "IU'e space months ahead. OF course
' ,-s created monopoly of The business,
as.i Il was impossible for those outside to
rs.tle.
Bills have been introduced to remedy |
~ t4t as possible all these evils, aud if (
~ sIa'e legislatures will cooperate with !
'ses the evils will be greatly les
''N'u' II they do not disappear entirely.
A CUT IN CATTLE RATES.