Evening star. [volume] (Washington, D.C.) 1854-1972, 1904-04-19
BACK FROM CHICAGO
Commissioner Garfield Has
Been Gathering Information.
METHODS OF TRUSTS
QUESTIONS BEING PROPOSED BY
BUREAU OF CORPORATIONS.
The Alleged Beef Trust First TO Come
Under the Searchlight Of
the Department.


the Department.
Commissioner James r. Garfield of the
bureau Of corporations OF the Department
of Commerce and Labor and the force at
his command. are at work preparing sched-
ules of questions which will. when ready
for USE mark the real beginning Of work In
his bureau and determine Just how much
can be learned OF the methods in use by
the great corporations in their business ope-
rations.
The law permits the department to require
the production of the books of the corpora
tons and answers by these amalgamated
business enterprises to questions put to
them by the officers of the government. The
department can require the corporations to
tell precisely just how they conduct their
business, how much their profits are, the
size of their dividends and many other re-
lated questions that it is generally supposed
are Objectionable to them. They can be
compelled to reply to the questions asked
them and to produce their books to sub
stantiate their answers. 1t is not the pur-
pose of the government to contract the
business of the great trusts, but rather TO
enable them to enlarge that business pro-
vfded they do SO in accordance with the
laws regulating them.
1t is generally the impression that the
trusts are the enemies of the great mass
of the people. If they are not the bureau
of corporations will soon give them an OPP
portunity to clear themselves of the sus-
picion. They will be sent the series of ques-
lions that apply to their particular case
and their replies will be carefully cat
alogued and investigated, one by one, until
the department is familiar with their man
moi Of ING uvi
laws are being violated and where. and
will find the remedy by reporting the viola
lions to the President at whose discretion
will be made public all parts or none or
these reports.
The Beef Trust
The first of the combinations TO come
under the searchlight of the department Is
the beef trust. This happens because of
the resolution of the House of Representa-
tives, adopted at the instance of Repre-
sentative Martin of South Dakota, who
charged that this trust was operating in d.
rect violation of the law. He said that
combination now exists the purpose OF
which is to maintain the present high price
OF beef to the consuming public, while the
trust pays less than ever to the cattle
rasers The law gives to the Department
of Commerce and Labor the authority to
demand of any corporation doing an inter-
state business reply to any questions ask
ed regarding the manner in which 1t con-
ducts it's business. The beef trust comes
under this class and will receive a thorough
investigation at the hands of the bureau of
corporations which has charge of this class
of work. Commissioner Garfield has re-
turned from Chicago, where he has been
for some days engaged in inspecting the
packing houses of that district and formu-
lating plan of action for further guidance
in his work. While there he was shown
over the plants by the owners or their
immediate agents and every facility given
him for the prosecution of his study of the
question.
Method of Operating.
Although the department is operating
quietly it is not doing any detective work.
Every action is above board The officers
go to the principals Of the trust which
they wish to investigate and tell them
frankly just what is wanted. The trust
Is obliged to obey the suggestion that it
produce figures such as are required by
the department. and there Is therefore little
likelihood of there ever being an open clash
between corporations and the officers of the
government. Such course on the part
OF the enterprises would have a disastrous
effect upon them. for the reason that the
law would then have to be enforced and
this would rebound to the disadvantage
Of those defying it. 1t is well known that
the rights of every one are to be re-
spected. but the law declaring illegal re-
strictions of trade by combination will be
rigidly enforced through the Department of
Justice whenever that branch of the gov
eminent service Is called upon to act in
any specific ease.
The trip of Mr.. Garfield to Chicago was
no secret. and his work while there was
the same time there is necessarily GER
tain secrecy maintained in order that what
ever is learned may not be used by other
business enterprises to the disadvantage of
t,fy,of fny, laiya tod To-
the special wish of the department that
the combinations of capital doing an inter-
state business understand that the gov
eminent does not wish to contract their
field of operations. but rather to permit
their enlargement when it has been shown
that their existence is advantageous to
the individual interests of the people
Cause of Lower Prices.
While in Chicago Mr.. Garfield was told
by the packers that there was nearly as
much competition now as ever had been
there in the selling prices Of cattle on the
noof. and that the raisers and dealers
were getting nearly as good prices as be-
fore the formation of any of the combines.
II there was not the same amount of COM
petition. they told him. it must be explain
ID that some of the smaller companies
had merged their interests. fact that
brought fewer competing forces into the
Held. the result being that the prices might
be lower than some years since.
The competition that seems to be going
IN in the Chicago market was found by
Mr.. Garfield to be artificial according to
information which was given him while
here by a competitor of the trust this
nan saying that the representatives of the
packers had daily meetings at which the
top prices for the day We're arranged. They
hen went into the open market and made
their bids, always being careful not to
,verbid the price which had been set at
the meeting. Whatever evidence Mr.. Gar
1eld obtained while on this tour of inspec-
lion and investigation will be arranged in
,orm for reference when the time comes for
The questions to be put to the beef trust.
The entire matter will at that time be
carefully gone into. and the complete re-
port Of the work submitted to the President
1t its conclusion.
At this time there Is nothing to make
public; the work has only Just been opened
md any information which might be given
,ut from the Department Of Commerce and
Labor would be a discouI tesy to the Pres
dent. who has been by Congress given the
,rerogative of using his discretion regard
ng publicity of these matters after they
nave been reported to him by the Depart
mani Of COp1marcp