Durango semi-weekly herald., 1904-03-07
AFTER THE
PACKERS
COMBINE

WASHINGTON, March 5.-An in.
vesiigation of the beef trust, or So
called 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 means OF c1lluslon at
| both ends of the turnoNer-an under.
standing by which they do not com.
pete in buying cattle. and the same
SORT oi an arrangement when 1t comes
20 selling the beef. 1t is charged that
thoy are grinding the cattle men OF the
west Unto poverty by paying lnnde-
qnate prices for beef. while The poor
consumer Of beef Is compelled to pay
dearly for his. steaks ans roasls.
That congress Will call upon secre-
tary Cprlelyou's department OF com.
merce TO make an investigation OF the
methods OF the beef 5rust was fore.
shadowod when the house committee
ordered a favorable report on reso.
luton Introduced by Representative
Martin OF South Dakota, 1t is a fore
gone conclusion that the house VIII
adopt the resolution, which reads as
follows
That the secretary Of commerce
and labor is requested to investigate
tie causes OF the low price of beef cat.
tie in the United States since July 1.
1908. and the unusually large margins
between the prices OF beef cattle and
the selling price of fresh beef, and
whether the said conditions have re-
suited in whole or in part from any
contract. combination IL the form OF
trusts or otherwise, or conspiracy in
restraint OF commereesa hong the sew
eral stntes or territories or with for
eisn countries: also whether the said
prices have been controlled In whole
or in part by any corporation, Joint
stock company or corporate comblna-
ton engaged in commerce among the
several states or with foreign nations;
and If so to investigate the organiza-
ton, capitalization. profit conduct and
management OF the business of such
corporations. companies and corpor-
ale combinations and to make early
reports of his findings as provided by
law"
Representative Martin made state
ment before the committee which was
eagerly listened to by all the members
present, and at the conclusion OF his
remarks the committee, without dis
5enilng voice, ordered a favorable re-
port 10 the house In explaining the
resolution Mir Martin said The
price OF cattle since early in 1903 fell
lntil last December. when 1t reached
the lowest price in five years. The
price Of pressed beef during the first
six months OF 1908 correspondingly de-
clined. but about tire first of July II
began to recover. and last fall reached
point at which the spread between
the price OF cattle and dressed beef
vas from $l2 10 SIS. difference great
er than any preceding record Dressed
peel Is bringing as much as in 1901,
while cattle are much lower. There
IS consequently great loss TO produc.
ers OF cattle in the west. and many of
The stocltmen have become embarras.
sed by the present condition OF affairs.
which cannot be brought about by ma.
ural causes. The foreign market for
American beef Is good and the local
market Is probably the best in mar.
yoars The people are enjoying pros
per'iy and have money They are
Guyiug beef
Unnatural causes are at work"
declared Mr.. Martin, THE condition
is due to the combination OF large
packing houses Seven of these
houses made profits last year in ex.
cess OF ordinary profits due to these
methods, agsregating $4,000 daily.
This sum would permit OF the payment
OF $4,000 day fine by the seven com.
panies FOR violating the Injunction and
SIN leave handsome profit resulting
from the control OF the price of beef
IN August, 1908. the price OF dressed
zee! was SS.51lA per 100 pounds, al
though 1 cost but S5I7 on the hoof
unuI last December, when IL reached
at the saine price. but beef on the hoof
cost SCI | do not pretend TO say
that this manipulation of the price OF
dressed beef and the depression oil the
price OF cattle is technical violation
OF Judge Crosscup's injunction. There
is an understanding somewhere be-
. tween The packing houses. Friends OF
mine. western stOckmen. tell me tnat
the packers do not bid against each
Diner Ia any market. While there may
be no conspiracy 10 regulate prices IL
seems there Is something here requlr-
ing investigation. | Understand The
packers arrange to prevent competi.
tion in the stock markets and then get
tosstner at frequent intervals and d..
VICE the profits"