The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-04-04

The public will await with interest the
result Of the inquiry about to be made by
the attorney general of the United States
into the operations of the great packing
companies and their effect on the price of
beef TO consumers. The inquiry will be
made by order of the President with a view
of ascertaining whether the companies
come under the prohibitory clauses of the
Sherman antitrust act. If they have COM
Lfned to control the cattle trade and to put
up the price of beef to consumers in differ
ent States they certainly do come under
the federal antitrust law. That law says:
Every contract, combination in the form
OF trust or otherwise, or conspiracy in re-
straint of trade or m among the
several States is hereby declared to be
Illegal" and every person who enters into
such contract, combination or conspiracy
is made punishable by fine and imprison-
ment. A combination to control the cattle
market, the shipments of beef TO different
States and the price to retail dealers and
the public would. of course, come under
the prohibition above quoted. The recent
investigation by the Interstate-commerce
Commission disclosed the fact that the large
packers in Western cities, notably in Chi
cago and Kansas City, have for some time
past been receiving rebates of freight from
the railroads, thus becoming parties to the
violation of the interstate-commerce law.
If hey would violate that law they would
not hesitate to violate the antitrust law
/ nv combining or CON OfrinO IN n1f m the
price OF beef. One thing is certain: during
the last few weeks or months there has
been an advance of 20 to Is per cent. in the
retail price of beef all over the country,
and the burden of proof is on the packers
to explain it. Since their action in regard
to rebates has been exposed they cannot
complain if the public suspects they are
largely responsible for the advance in the
price of meats. That is the view taken in
some of the Eastern cities where beef is
fast becoming a luxury that only the we'll
TODD can afford. On behalf of the packers
it is claimed that the recent increase in
price is due to the increased cost of cattle
and the increased demand for beef. The
increased cost of cattle is attributed partly
10 lHelT OlmlnlSnllS numbers ana partly TO
the short corn crop of last year. which
has made feeding expensive. On the other
hand. the increased demand for beef is at
tributed TO the universal prosperity which
now prevails throughout the country.
There may be something in these claims.
Everybody knows the corn crop was short
last year. and everybody knows also that
in a time of general prosperity like the
present there are a great many more beef
eaters than there are in hard times. These
conditions would tend to put prices up, and
there is enough in the theory to justify in
vestigation. At the same time the increase
in prices has been so sudden and so marked
as TO raise a suspicion that the market has
been manipulated. Retail dealers as we'll
as the public generally believe that the
packers combination has a hand in it.
Men who have been caught taking freight
rebates in violation of law would not hest
tate to put up the price of beef in every
market they could control. The matter de-
mands investigation, and if there is a beef
trust ii should be smashed.