The Washington times. (Washington [D.C.]) 1901-1902, 1902-04-22
New Yorker Gives Reason
for Present Steep
Rates.
PRICE OF CORN TO BLAME
High Value of Cereal the Cause, Says
Man Who Should be Authority-what
the Agreement Between the Big Pack
ing Houses Really Means.

NEW YORK, April 21.--An effort has
been made during the past few weeks to
prove the existence of an Industrial CON-
bination called the beef trust. and to
trace to the methods of such combination
the causes of the present high price of
meats.
+ The Assertions Made.
Among other assertions the following
have been made:
Fifst-The six largest dealers in Dress
ed beef in the United States have sign
ed an agreement under which the whole
sale price OF meat is regulated and its
supply controlled.
Second-These dealers are heavily inter-
ested in the cattle ranges of the West
all of them-and therefore control the
meat business from the live animal to
the shop of the retail butcher.
Third-They also control freight rates.
Fourth-Beef is sold cheaper at whole
sale by these dealers in England than
in the United States.
1t is not known whether there is
beef trust or not, but every one knows
that the price of beef is higher, whatever
the reason. That there is a beef trust,
however is denied by those interested in
the selling who say that such a COM
bination could not exist in this or any
other country.
There is one man in New York Just
now who probably knows as much about
the wholesale meat business as any other
man in the United States. To a reporter
today he said:
"All this agitation about an alleged
ments made by the agitatorS are not
founded on fact. The reason why some
beef has been extraordinarily high for
the past few months Is due entirely to
the law OF supply and demand.
Higher Cuts Advanced.
tTn the first place, only the choicer
cuts of meats have advanced in price.
Tenderloins and sirloins and porterhouses
and ribs have gone up. The inferior cuts
have not. at least the wholesale prices
have not II the retail price has advanced
the retailers have made the advance Of
their own \volition. But the inferior cuts
do cost the wholesaler more than they
did six months ago for the reason that
the price OF live cattle has greatly ad-
vanced.
This is the season for corn-fed cattle.
From the time grass stops growing on the
ranges until ii starts again the cattle that
supply the market must be fed on corn.
Corn has been higher for the last eight
Dr. nine months than it ever has been in
many years. / think the price Of corn
Turing the last six or eight months has
,een the highest in the country's history
n times of peace.
1T ought to be evident that cattle fed
m 60-cent corn must be higher than steers
ed on 40-cent corn. This. then, Is the
situation and the cause of 1t. 1t will
continue for just about month longer,
IT until the cattle can be turned out on
he ranges. During this month. however,
should not be surprised to see the price
4 meat take another jump.
About the Agreement.
THE agreement which has been pro-
uced to show the existence Of a beef
rust is the same kind of an agreement
which the merchants in nearly every re-
all business in this town have to make
o insure the payment Of bills owing to
hem. Under that agreement the retail
+ must pay cash for his dressed beef,
S the packer has to pay cash for live cat
lie. and he must pay within a week.
If he docs not he is blacklisted and
cts no more meat Of the big packers I'M
II he settles. nat is al Kat agreement
S for. but he IA buy elsewhere. l pre-
ume, since. il stead Of controlling the
utpu: OF the dressed beef. Jha big pack
RS supply only little-CyCr 4J PCS cent
I the demand