The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1902-05-12

exists among the packers whereby prices are
raised or lowered at will. 1t will set forth
that fluctuations due to the action of the
law of supply and demand, except where in
dividual packers undersell their competitors.
The six houses named underselling the
small butchers, in their own territory-proof
that they are not making an undeserved
profit.
The answer will set forth that present high
prices are not caused by the concerted action
of the packers but by the scarcity of cattle.
Figures will be presented showing the cost
of slaughtering the amount Of shrinkage, the
value Of by-products and the prices at which
the dressed beef must be sold to bring
profit. These figures are intended to demon
strate that the packers are selling beef at
loss of so per cent per hundred. .s
The answer will admit that there are fire.
quent meetings, but will deny that these are
held to fix prices consider anything in re-
straint of trade. 1t will admit the existence
of a credit agreement, but will deny the eX-
istence Of a blacklist. Under the credit
agreement all customers have a weeks credit
as long as they, pay for their beef by Tues
day of the succeeding week; otherwise all
parties to the agreement refuse to sell to the
customer except for cash. The carriage agree
ment will also be admitted, but it's illegally
denied. -.. *-
The answer will freely admit that the pack
ers received rebates from the railroads for
ten years previous to Jan. 1, 1901, but will
deny that the rebates were secured by pres
sure or were enjoyed by the packers in the
alleged combination alone The railroads
gave the packing industry reduced rates IN
the form Of rebates to prevent dissatisfaction
among the shippers of other commodities,
such as livestock, which, of necessity, called
for higher rate. 1t will aver that any ship
per Of provisions in car lots. received the
ohoto md hot No
bate did not act in restraint of trade. 1t will
aver that the rebate system was the source
of actual loss to the packers, as the prices
| of their products were based on the actual
freights paid, and the clerical force 'neces-
! sary to conduct the correspondence and book
keeping made necessary by the rebate sys-
| tenn was an added expense.
The answer will assert that the packer pre-
! fers a stable, published rate tThe consumer
| pays the freight is the burden of the argu-
| ment, and the packers are Indifferent as long
| as the rate is net so high as to shut him of
| from competition with local butchers.
What May Happen.
In case the allegations of the bill for in.
Junction are proved true by events, the
/ government may apply for permanent
injunction at the end of thirty days. The
following results would then accrue from
the dissolution of the packers trust:
l independent packers anu Shall slduSuleIiu6
1 houses will be afforded immediate relief. Com
! petition will be possible equal basis
It is not probable, however that more pack
ing houses will be established. The houses
now doing business are more. than sufhcfen
1 to supply the demand. This competition
would bring about a reduction in the pric
of dresset beef and consequent reduction
|,in the prices of other meats. The amount c
i the reduction will depend on the advance Il
the price Of cattle. According to the bill
cattle are not selling as high as the deman
:, warrants, and when subject to competition
4 the price will reach the level created by tn
law of supply and demand and 1uctuate a
the supply and demand fuctuate. Betwee
the fall in price of dressed beef and the ris
in price of cattle, the exorbitant profits Q
& the packers would be wiped out.