Evening star. [volume] (Washington, D.C.) 1854-1972, 1895-04-20
Impression That the High Price Of
Beef is Due to the Combine.
FULFILLING PROBLEMS PRESENTED
Beef Sold Cheaper in Suburban
Illinois Than in Chicago.
SECRETARY MoRToN's VIEWS


/ rise in the price of beef the Department of
| Agriculture has run up against some prob
lens. which are very difficult of solution
| and which tends to confirm the impress
sion that the increase is the result of con-
certed action on the part of the big pack
ers Of Chicago and Kansas City.
/ One of these came to light today, as DR..
Salmon, the chief of the bureau of ami
NAL industry, explained to a Star reporter
this morning. In the mail this morning
there came letter from one of Dr. Saim-
on's correspondents, who lives in a town in
central Illinois According to this CORE
spondent he is able to purchase beef, and
of the very best quality. for about one
half what it sells for here and in New
York. Loin and porterhouse steaks and
roasts sell for 10 cents. as opposed to %
and 30 here; other prices quoted there are:
Round, u IL; best rib roasts. II IL; Shout
der and rump. and 10; chuck, 10; pork
and sausage TO-
Sold by Swift & Co.
I These meats are sold through an agent of
Swift & Co., and are brought from Kansas
City and Chicago. the prices being less
than the same cuts sell for in Chicago.
How this can be done, If the representa-
lions of the packers can be relied on. is
one of the questions over which the officials
Of the department are puzzling their heads.
AS It costs just 81 of a cent to transport
beef from Chicago to the New York mar
ket 1t Is hard to see just how the dealers
can afford to retail beef in Illinois for 15
cents, when they are compelled. by the
short grass and scarcity of CATTLE" to
charge 2S and 80 cents for the same cuts
here.
The Chicago and Kansas City packers
still insist that there is nothing in the ma
ture of a combine, and that this whole
trouble is started and kept UP by the De-
partment of Agriculture. There are so
many inconsistencies in the facts that the
investigation has developed, however. that
the department is becoming daily more and
more fixed in the idea that there Is some
thing wrong somewhere. The problem now
Is to find out just where it Is. What will
be done afterward depends mainly upon the
character of the evidence which may be
discovered. If enough is found to warrant
action the whole matter will undoubtedly
be turned over to the Attorney General for
prosecution under the provisions of the
antitrust law.
As showing the methods which the pack
ers are pursuing in the premises, one in
stance may be cited. The impression has
gone abroad, and has found its way into
the, local papers, for example. that the re-
cent action of the department in raising
the embargo on Mexican cattle is likely to
the southwestern portion of the United
States. A cry has gone up for the protec-
ton Of home industry. From information
| in the possession Of the department just
| the reverse of this state of affairs is what
actually exists.
The cattle men in southern Texas, par
| ticularly, are among those who were most
/ in favor of the admission of Mexican cat
| tie. Their own herds being depleted they
need the stock to fill their ranges. During
| the years when grass was poor and burn
| ed out, the herds in that section of the
country became decimated. either being sold
| off for what they would bring driven
across the Rio Grande to save them. This
resulted in great Improvement in the
Mexican herds but now, with every pros
| pect of splendid grass crop this summer,
the Texas cattlemen find themselves with
no cattle to take advantage of 1t. 1t Is safe
| to say that the bulk of the cattle coming
in will be kept to Craze and fatten on the
southern ranges before being sent to mar
ket. and that will be just so much clear
profit to the Americans, who would other
wise make nothing out of the scarcity Of
beef.
Secretary Morton's Opinions.
Secretary Morton. when questioned with
reference to the reports from Chicago to
the effect that his agitation on the SUBJ
ject of high prices had led to reduced con-
sumption of beef and a consequent break in
| the markets for live stock, said that so far
as had been learned there had been no
break in the price of beef. Notwithstand-
Ing the smaller receipts Of cattle during the
last two or three months, he said, the mar
ket at Chicago had been reported dull and
weak, and it had been difficult for shippers
to obtain market quotations for their cat
tie. The quotation on these animals had
recently been advanced from a half to
three-fourths of cent pound, but it had
not been easy for the producer to obtain
the higher prices. He added:
IT supply and demand is the only in
f1uence which is being exerted. why should
the price Of beef continue high and the
price of cattle be suddenly lowered? It
is now stated that Chicago and other
Strengthening points will soon have all the
cattle needed, and the result will be that
prices will begin to tumble, but We see no
predictions that the price of beef will
tumble. 1t is not long since the large
packers were claiming that the price of
hides was unremunerative in this country,
owing to the competition with hides i'm
ported from other countries, but with the
falling on in the receipts of cattle the
price of hides has been suddenly marked
up. Is it not plain that the Chicago pack
ers have more power over the markets
than has generally been supposed?"
The Elsmere Contention.