The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-04-26
THE BEEF TRUST AND BEEF PRICES.

vote of the highest candidate on the first
ballot.
THE BEEF TRUST AND BEEF PRICES.
The action of Attorney General Knox
leaves no doubt that in his opinion there
is a combination among the large dressed
beef dealers that is violating the interstate
commerce law by monopolzing and manip
ulating the beef business TO put up prices.
If the attorney general were not convinced
of this fact by the examination he has
made Of the question he would not have
directed suits TO be instituted against the
meat dealers. His opinion as TO the legal
aspect of the case is. of course, likely to
be correct Whether the combination is a
trust in the technical sense or rot is not
important. The interstate-commerce Law
applies to "every contract. combination in
the form of trust or otherwise. or con-
spiracy i'm restraint of trade or commerce
among the several States" To constitute
trust in the technical sense such combi-
nation would have to be among incor-
porated companies, but similar cOmbina-
ton among firms or individuals falls equal
ly within the operation of the law. 1t
makes all such combinations illegal and i'm
poses severe penalties of fine and imprison-
ment on those who engage in them or who
conspire in any manner "to monopolize any
part of the trade or commerce among the
several States" 1t is said proceedings will
be instituted at once against Swift & Co..
Nelson Morris & Co, Armour & Co, the
Cudahy Packing Company and other large
dressed beef dealers in Chicago and Kansas
City. There may have been some kind of a
contract or combination among these
houses for years past. or it may be a new
thing. 1t may be mainly responsible for
the present advance in the price of meat
all over the country, or il may ne only a
contributing cause. These questions are not
material If the combination exists, and if
it's object is to restrain or monopolize trade
and control prices it is illegal and should be
broken up without regard TO how long it
has existed or how far it may have sue
ceeded in accomplishing its object. There
has been no general complaint as TO the
prices of meats until within few weeks
past, and there is reason to believe that
the large houses referred to have been
serviceable in supplying the trade at prices
satisfactory to retail dealers and consum-
ers. They could hardly have done even
this without some sort of combination and
agreement as to territory and prices which
would be virtually a contract in restraint
of trade, and it may be that with the ma
chinery at their disposal for putting up
prices they have taken advantage OF the
situation 10 do so. Whether they have or
not the combination itself is a violation
of law and should be broken up. There is
reason to believe. however that investiga-
ton will disclose other important factors
contributing to the present high price OF
meat. From the evidence at hand there can
be little doubt that the scarcity of cattle.
which has been growing more pronounced
for several years past, is one factor in the
case. and that the shortage of last years
corn crop in the Western States is an
other These causes would increase the
cost Of live cattle and hogs. and as a mat
ter of fact they have increased very ma
terially. With corn at so cents a bushel at
the farm all kinds of meat are bound TO 60
up. The corn crop last year was a failure
in southern Illinois. southern Iowa, Mis-
souri, Nebraska Oklahoma, the Indian
Territory and. to a greater or less extent,
in other States. With scarcely any winter
food for cattle in "a large area of country
prices were sure to advance. The National
Provisioner in a current number quotes
Secretary of Agriculture Wilson saying:
| / 90 claim to know something about the
raising and selling of beef. Others may
/ talk about the beef combine as much az
/ they like, but TO me the rise In the price OF
\ beef is very easily explained. 1t is due al
most wholly to short corn crop last year
and TO a great demand for beef caused by
| the prosperity of the people of the United
/ States. The high price of corn has made #
send to the South for cotton-seed meal 10
/ feed their stock with. The price of fat cat
\ tie on the hOOf at the Chicago Stocky6rds
| has advanced from TO cents a pound to
| I cents. Men who have fine beef cattle To
sell can almost get their own prices.
| On question OF this kind only the opin-
ions of those are worth anything who have
had experience or who are in possession of
information on which to form an intelligent
/ opinion. The secretary of agriculture
1
question. and there is good deal of con-
/ nrmatory evidence that he is right in the
view that the present high price of meat
/ is due more TO natural than to artificial
! causes. Nevertheless, if there is a beef
i trust or combination aiming at monopoly OF
restraint in the meat trade it should be
/ broken UP. and that evidently is what the
/ attorney general thinks. The fact that he
/ has first ordered an investigation and then
| the filing of suits shows a determination
| 10 protect the people against extortion OF
/ combinations i'm restraint of trade in as
/ far as it can be done by a vigorous enforce
/ ment of law.
An AGED CONTENTION.
/ e fI.