The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-01-10
CASE AGAINST THE BEEF TRUST
ATTORNEY GENERAL MOODY,S
ARGUMENT IN SUPREME COURT.
He Contended That tho Packers Violated
the Law by Entering Into an Agree
ment for SuppFessing Competition
Roth I'm the Purchase OF Live Stock
and I'm the Sale OF Fresh Meat.

anu III inc SAFE OF Fresn meAt
WASHINGTON, Jan. 9.-Arguments in thu
so-called Beef Trust case we're concluded
in the Supreme Court to-day, Attorney
General Moody appearing for the Govern.
ment in favor OF continuing the injunction
issued by Judge Grossoup at Chicago. anc
Attorney Miller closing the case in favoi
Of Swift, Armour end other packers. The
space within the ailing was crowded Will
members OF the Var, who listened to the
arguments with close attention, particu-
larry those Of the Attorney General.
Mr.. Moody said it appeared that the de-
PENDANTS, who we're seven corporations,
one copartnership and twenty-three In
dividuals, were engaged In the business OF
buying live stock, converting It into fresh
meat and selling the meat throughout the
country. 1t was obvious that the bust
ness included both manufacture produc-
ton and commerce. They were charged
with violating the law by entering into an
agreement for suppressing competition
In the purchase OF live stock and OF com
petition In the sale Of fresh meat. None
OF the charges related to manufacture or
production. but all related to commerce,
not necessarily interstate commerce, but
commerce as distinguished from manu-
facture or production.
In this 1t differed from the Knight case,
which concerned only manufacture or
production. There was no fusion OF acquisi-
ton OF property interests, as in the Northern
Securities case, but simply agreements
between strangers to each others business
affecting their freedom OF action In certain
respects. Tho charges did not relate
to any matters merely incidental or col
lateral to commerce, or which aided OF
facilitated 1t. On the contrary, they
related to commerce itself. and we're made
and done by those who were conducting
10 with respect to IFS conduct These
propositions narrowed the inquiry and left
for the court the determination OF only
two questions
case was commerce among the States,
and II 30
Seoon(lt,Whether the agreements con-
stituted restraint of such commerce, or
created or promoted a mopoly OF no
part Of II,
Tn cafe Of the Government required
that both OF the Questions should DO an
swered In the Affirmative, otherwise Il
failed.
In taking up the charge of suppressing
competition in buying live stock, Mr..
Moody said the agreement to that effect
having been clearly alleged. the question
arose whether that agreement related to
Interstate commerce. That depended upon
whether the sales OF stock with which the
agreement concerned itsslf-wss q part Of
Interstate commerce.
Tho transactions Of purchase and SALE
he continued, are themselves begun snd
ended within State Indeed, every trans-
action Of interstate commerce must take
place within a State. Considered as a
mere sale and purchase. the transaction is,
superfcially, precisely tho same whether
tjne subject OF the sale or purchase il an
article Of Interstate commerce or Of intra-
state commerce. The same sort Of bar
gain is made for cattle produced and owned
within the State Of sale az for cattle produced
and owned in another State and sent to the
locus OF the transaction for the purpose
OF sale thaFa In the former case. how
ever, the transaction 10 governed solely By
the rules Of the local law; In the latter case
IL Is governed by the rules OF the national
law.
'Where an owner Of commodities living
In one State transports them to another
State for sale the Interstate character Of
the transaction continues from the be-
ginning of the shipment 10 and including
the sale of the commodity II the com
modify has not lost its identityby the break
ing of the orr ginal package in which it has
been imported
Mr.. Moody reinforced his conclusions
by long list Of decisions Of the Supreme
Court In interstate commerce cases giving
similar points. particularly in the original
package decisions, In the American Steel
and Wire case the court had laid down the
principle that where goods imported into
a State for eale had arrived at their destina-
ton, were ct rest and under tho protection
of the laws Of the State they were subject
10 the taxing power Of the State, even
though their interstate character con-
tinued and the interstate transaction was
not ended That showed clearly that
the point OF time when the taxing power
Of the State interviewed was not identical
with tho poinb-of time when the interstate
character OF the transaction ended.
As TO the contention Of tho defendants
that tho unloading Of the cattle from the cars
IN which they were transported and their
diaposition In the various pens IN the stock-
yards constituted breaking OF the original
package and oommingling OF the property
with the domestic property of the State 70
such an extent that the purchase and sale
Of them are domestic commerce Mr.. Moody
said IL was difficult to treat it seriously.
II tho original package conception had any
relevancy to this discussion surely II must
be that the packages which nature itself
has made were the original packages.
Referring to tbs soious OF the hackers
Ia controlling the selling price of frosh
meat oy secret meetings throughout the
country by their agents atwhich uniform
price was lxed Mr.. Moody said twas
clearly O pestraint Of interstate commerce
in view Of other decisions by the court.
As TO the claim that that commerce was not |
domestic commerce he said the packers
themselves had invoked the Federal law
against the contention in several instances
and had been sustained by the courts.
In concluding his argument the Attorney |
General said:
'The offence is-complete when the conhl- |
nation is made. The combination il not |
cured OF its vice H. perchance, some agent
see fl 20 divide the carcasses before they |
are cold.
Let not the offence Of these defendants !
be obscured by any refinement concerning |
the details OF their conduct. Controlling 60 !
per cent. of the fresh meat industry OF the |
rhp1a fhaty 81 NJ h.,fr