The Minneapolis journal., 1902-05-12
THE BEEF TRUST CASE

The beef hackers have met complaints
OF arbitrary advances in the prices of
meats by the claim that prices of live
animals had corresnondingly advanced.
This has been offered as evidence that
the advance in meat is no part of a con-
spiracy and not the result OF combination,
but the result of natural trade laws. And
there is undoubtedly a basis of fact to
sustain this defense of the packers. T h e
Journal has shown in it's review of
the meat situation that the advance in
live animals has been nearly If not quite
corresponding to the advance in the price
Of dressed meats. The conditions at this
time, however, are peculiar. There is
shortage of the beef supply and not even
the combination has been able to so
manipulate prices as to prevent the pro-
ducer from getting some advantage out Of
the situation, and, perhaps, his full share.
But that does not go to the merits of
the proposition. The conditions just now
are peculiar. What the public is, largely
interested in, and what the president has
undertaken to develop in his prosecution
of the beef combine, are the practices in
operation during ordinary conditions and
the conditions which prevail a greater
part Of the time, and along this line the
allegations of the attorney generals ap-
plication for an injunction are very in
il teresting. They assert that the meat
combine has been conducting business
on basis little if any above the grade of
highway robbery. For instance, it has
haor oh ~, -
OF half dozen or so large operators, con-
stituting the combination arbitrarily to
raise prices at certain markets for the
purpose of inducing shippers to rush in
their animals to that market, and then
when the animals arrive there, take ad-
vantage of the heavy arrivals to- break
the prices. Producers of meat are. not
able to dispose of their wares for future
delivery as producers Of wheat, but must
accept the price which prevails at the
time when they strike the market, and
with combination so working together as
to make the price whatever it pleased,
the producer is absolutely at the mercy of
the big operators. Whether this has been
successfully done or not will be a matter
OF evidence to be presented to the court,
The attorney general further alleges in
his application for an Injunction the ,ex-
istence OF an understanding between the
combination and the railroads; that Sc
cret rebates have been given to the ex-
tent that independent operators have been
absolutely driven out of the market and
unable to successfully operate. This
charge there would seem to be no diff
Guilty in establishing in view of the ad-
mission Of the railroad men themselves
before the interstate commerce commits
sion.
Other charges are to the effect that the
members of the combination refrain from
bidding against each other except per-
functorily thus destroying the element of
competition In buying their live material,
and that they also conspire to fix prices
and to divide territory, to limit the OUT
put. impose penalties for violation of this
agreement, and keep what is described as
a black list, !" in accordance with which
any retail dealer delinquent with a mem
Y Der of the combination, no matter wheth-
er his delinquency be justified or not is
unable to purchase any supplies from any
other member OF the combination and is
practically driven out of the business
The government authorities appear to
be confident In their ability to establish
all these points. Some OF them certainly