Omaha daily bee., 1902-05-07
Counsel for Packers Says Proceedings
Are Unfair to His Clients,
LATTER NOT ALLOWED WITNESSES
Attempt of Attorney General Grow il
Called q Fishing Exhibition.
TESTIMONY OF STATE is ADMITTED
witness from st. Joseph Says Four
Packing Companies Control the
Beef Market in that City
and Increase Prices.

JEFFERSON CITY, Mo-, May 6.--None Of
the officials OF wholesale packing houses in
St. Louis, St. Joseph and Kansas City ap-
peared before Judge Burgess Of the su-
preme court this morning In the inquiry
begun by Attorney General q. c. Crow into
the alleged beef trust. Charles B. Armour
OF the Kirkland B. Armour estate of Kan
sas City and o. w. Waller OF st. Joseph,
the last named as agent for Swift and Com
pany. we're represented by Attorneys Frank
Hagerman and Alexander New.
In the absence of the big packers, st.
Joseph retail butchers, some OF them former
managers and salesmen for Armour. Swift
Nelson Norris Cudahy and Hammond, told
of trust methods in st. Joseph.
The testimony at the morning session was
TO the effect that damaged and partly
spoiled meat is sold to the butcher at a
reduced price for sale to restaurants and
boarding houses after a concession has been
granted to the wholesaler by the arbitrator
repr ,senting the other firms: that an ar
blt7ator ixes the price of meat for all the
packers and imposes fines. and that rebates
are paid retailers by the packers.
Expects More witnesses.
At the afternoon session Charles wiss-
math. jr., and Thomas Kroeger Of st. Louis
Attorney General Grow expects that more
witnesses will arrive tonight and that the
inquiry will last through Wednesday. He
said:
The packers who have declared that there
was no trust have been given an oppor-
tunity to show the fact. and have failed
TO appear. think they could be com
PEELED to attend, but l do not know that
that will be attempted.
The proceeding is merely an inquiry, pre-
limlnary to possible prosecution. The facts
brought out this morning demonstrate that
an ironclad agreement exists in st. Joseph.
I'VE represent" said Mr.. Hagerman,
''the concerns which Attorney General
Grow charges with unlawful combination.
"Our clients on our advice are not
present The present campaign is an unfair
one to them, as they have not been allowed
to summon witnesses
I'VE wish to proceed by an application
for a writ Of prohibition for certiorari,"
said Mr.. Hagerman. 1--WE wish TO bring
the law before the supreme court, to be
passed upon as to its constitutionaIity.
This proceeding Is merely a fishing expedi-
tion on the part Of the attorney general"
Attorney General E. G. Crow replied,
stating that the inquiry had been called
for the purpose of learning whether pro-
ceedings should be commenced to prevent
them from doing business in this state
iut dlNOTHtgb III lut dDbenC6 OF the
packers have no right here. but will ex-
tend the courtesies Of the court and allow
them to cross-examine my witnesses"
No Report of Service.
Attorney General Grow has received no
report OF service Of the subpoenas on the
Armours or on o. w. Waller OF Swift and
Company of st. Joseph. Most Of the men
on whom service was obtained are retail
dealers Of st. Joseph. Mo.
The Judge ruled that the inquiry should
proceed and Frank Staudenraus, a st. Jo-
seph retailer, was called as the first wit
ness. He was questioned by Attorney Gem
eral Crow concerning the coolers main
tained in St. Joseph by Morris, Cudahy,
Armour and Hammond.
THE coolers are near together" said
the witness, they do not do a retail busi-
ness, but they sell to large customers on
the quiet
The witness said that the st. Joseph
butchers union. OF which he is president
was organized for the purpose OF protect
ing retailers from the competition Of
wholesalers by "sales on the quiet
In response to numerous questions, the
witness testified that 1t was customary for
the packing companies TO notify their best
customers In advance OF a raise in the price
OF dressed meats to give them the benefit
OF buying before the advance; that rebates
were paid by packers and that he had re-
ceived such rebates from both Armour &
Co. and Cudahy & Co.
John Wood. st. Joseph retailer, testi-
ned that four packing companies controlled
the beef In st. Joseph. Wood said that the
price OF meat had increased four or hye
times since January 1.