Fergus County argus. [volume] (Lewistown, Mont.) 1886-1946, 1904-03-16
Congress Will Look Into the Alleged
Combine of Paekers-Robbinn
the Stoekmen.
MARTIN STARTS BALL ROLLING
South Dakota Congressman Gives
Figures and Makes Statement
Of Undenisble Facts.
walter Wellman in Chicago Record.
Herald.)

packers combine" is. without much
doubt, to be ordered by the House of
representatives. Western members
OF congress want to know why such
great differences exist between the
prices which the packers pay for cat
tie and the prices which they charge
for dressed beef. They allege that the
combine" is making money %altogeth-
er too fast by of collision at
both ends OF the turnover-an under.
standing by which they do not com.
pete in buying cattle, and the same
sort of an arrangement when it
ome to selling the beef. 1t is charg-
ed that they are grinding the cattle
men Of the west into poverty by pay.
ing inadequate prices for beef. while
the poor consumer of beef is com
PEELED to pay dearly for his steak and
roasts.
That congress will call upon Secre-
tary Cortelyou's Department of Com
merce to make an investigation of the
methods of the beef trust was fore
Swallowed today when the house COM
mittee on interstate commerce order
ed a favorable report on a resolution
introduced by Representative Martin
of South Dakota. 1t is a ~foregone con-
clusion that the house will adopt the
resolution, which reads as follows:
THAT the secretary of commerce
and labor is requested to investigate
the causes of the low price of beef
cattle in the United States since July
1, 1903, and the unusually large mar
gins between the prices of beef cat
tie and the selling price of fresh beef,
and whether the said conditions have
resulted in whole Or in part from any
contract, combination in the form of
trusts or otherwise. or conspiracy in
restraint of commerce among the sew
eral states or territories or with for
eign countries; also whether the said
prices have been controlled in whole
or in part by any corporation, joint
stock company or corporate combina-
ton engaged In commerce among the
several states or with foreign nations;
and IL SO to investigate the organiza-
ton, capitalization. profit. conduct
and management of the business of
such corporations. companies and
corporate combinations and to make
early reports Of his findings as pro-
vided by law"
Representative Martin made a state
ment before the committee today
which was eagerly listened to by all
the members present, and at the con-
clusion of his remarks the commit.
tee without a dissenting voice, order
ed a favorable report to the house.
In explaining the resolution Mr.. Mar
tin said: THE price of cattle since
early in 1903 fell until last Deem
Der, when 1t reached the lowest price
In five years. The price of dressed
beef during the first six months of
1903 correspondingly declined. and
about the first of July 1t began to re.
cover. and last fall reached a point
at which the spread between the
price of cattle and dressed beef was
from s12 to SIS, a difference greater
than any preceding record. Dressed
beef is bringing as much as in 1901,
while cattle are much lower. There
is consequently a great loss to pro-
ducers of cattle in the west. and many
OF the stockmen hayS become EN-,
barrassed by the present condition OF
affairs, which cannot be brought
about by natural auses The foreign
market for American beef is good and
the local market is probably the best
in many years. The people are enjoy.
ing prosperity and have money. They
are buying beef.
Unnatural causes are at work, -
declared Mr.. Martin. THE condition
is due to the combinatiop of large
packing houses. Seven OF these
houses made profits last year in ex
cess of ordinary profits. due to these
methods, ~aggregating $4,000 daily
This sum would permit OF the pay
ment of a $4,000 a day fine by the
seven companies for violating the in
junction and still leave a handsome
profit resulting from the control oil
the price of beef. In August, 1908
the price OF dressed beef was $S.37t5
per 100 pounds, although 1t cost but
$5.17 on the hoof. In February, 1901
dressed beef sold at the anne price
but beef on the hoof cost $3.50. de
not pretend to say that this manipu
lation of the price of dressed beef ant
the depression of the price OF cattle
Is a technical violation of Juds,
Grosscup's injunction. There is al
understanding somewhere between
the packing houses. Friends OF mine
western stockmen, tell me that thu
packers do not bid against each 9th
er in any market. While there ma,
be no conspiracy to regulate prices
1t seems there is something here Ie
curing investigation. | understan,
the packers arrange to prevent com
petition in the stock markets ant
then get together at frequent interval
and divide the profits"
Mr.. Martin informed the committe'
that some stockmen, friends of his
had sent a shipment of cattle to tn
Chicago stock yards, and the lack O
competition, the absence OF a rea
market and the failure to get offer;
aroused suspicion, and the investigd
tion which followed disclosed a cond
ton which, in Mr.. Martins judgment
calls for federal interfei vnce.
Mr.. Martin said that he was toll
by a stockman that he had Just sol
a trainload OF fat steers in Chicago
When he arrived in that city h
sought bids for his stock. He wen
to the various concerns. but could S,
cure a bid from only one. He finall
accepted this bid. His curiosity ha
been aroused and he resolved to Sc
what the reason was for this cond
ton. That night the steers were sci
arated into seven equal lots and ser
to the seven different concerns.
Mr.. Martin does not question III
sincerity OF the department of jui