The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1905-01-09
MOODY ARRAIGNS
PACKERS COMBINE
Attorney General Cites Practices
of the Meat Magnates Done
in Unison.
DECLARES INTERSTATE
COMMERCE LAW FITS
Points to Restraint of Trade in
Price Agreements Among
Big Packers.

Washington, Jan. 9.-Attorney Cen
eral Moody t,1ay resumed his argument
on behalf of he government before
the supreme court Of the United States
in the case of Swift & Co. VS.. the
United States, commonly known as the
beef trust case. begun last Friday.
Mr. Moody said none OF the agree
ments or acts complained of related to
manufacture or production, but to COM
merce-commarce as distinguished from
manufacturing or, productions They 90
not accomplish fusion OF property inter
ests. he said, but are simply agree
ments between strangers to each other s
business affecting their freedom OF &C
ton in certain respects, and by that
consideration the case at bar is shown
to be devoid of those features from
which differences Of opinion arose IN
He said the inquiry is. narrowed
down to only two questions for the de-
termination of the court: Whether the
commerce in the case was commerce
among the states, and II so, whether
the agreements constitute a monopoly
OF any part OF 1t.
Three Main Agreements.
Mr.. Moody said it appears clearly
that there were three main subjects
upon which the defendants entered into
an agreement, and that the following
state of facts is clearly shown:
Persons owning livestock and living
in other states and territories than
those where the stockyards are situated,
were accustomed to send such stock to
the various stockyards named for the
purpose of sale there. The defendants,
who were severally engaged in the bust
ness of buying such livestock, for the
purpose of Strengthening and converting
it into fresh meat, entered limo an
agreement with each other to refrain
from bidding against each other, except
colorably, in the purchase of such live
stock. with the purpose and result of
suppressing all competition in such pur'
chases.'
AS Interstate Commerce.
An agreement having been thus
clearly alleged, he said, the question
arose as to whether the agreement re-
proceeded to argue that proposition,
saying that the same sort Of bargain is
made for cattle produced and owned
within the stae of sale as for cattle
produced and owned in another state
and sent to the "locus' Of the trans
action for the purpose Of sale there
The interstate character OF the transac
ton, he said, where an owner OF COZ! com
modify living in one state ships 1t tt
another, continues from the beginning
of the shipment to an including tn
sale of the commodity, if it has not los
it's identity by the breaking OF thu
original package in which it had beef
imported.
Mr.. Moody cited numerous decision
as to what constituted an 1nterstat
commerce and an original package. II
added:
eff the original package conception
hos rolauann1- tn this discussion
surely it must be that the package
which nature itself has made are tn
original packages
In conclusion Mr.. Moody said:
These are the main subjects Of the un
lawful conspiracy among the defendants
Others are set forth in the petition. tn
purpose Of which Is to make more Ell
fective the main conspiracy and rende
it less easy for the defendants them
selves to escape from the performanc
of the unlawful conspiracy which the
have formed. I will now consider thes
subsidiary agreements.
Scheme to Buy Cheap.
It appears that the defendants hay
agreed upon this device: In pursuanc
of the conspiracy among themselVe
their agents bid up the price of livestoc
at certain selected times to abnOrm
point. This naturally induces the shil
ment from other states of livestock
the points where the price is bid up
quantities much larger than under norma
conditions. Then. taking advantage
this congestion Of the markets, they n
fran from bidding against each other
the purchase Of livestock. with the r.
suit that the producers and owners Of tt
stock are forced to sell at ruinous price
Thus. the unlawful conspiracy to refra
from bidding against each other is mao
doubly profitable, and the great prof
which come from the. transaction in tut
increase the power Of the combinatic
and tend to fasten upon the people
monopoly. The conspiracy in this ca
is ancillary to the conspiracy to refra
from bidding and to the creation of II
monopoly which this whole case disclose
Restricted Shipments.
It is alleged that for the purpose
aiding in the raising, lowering, fixi
and maintaining Of uniform prices
fresh meat, the defendants colusive
restricted and curtaled shipments
meats to the various markets thruo
the poultry. The word "collusiNel
fairly interpreted means that they CT
tailed shipments by agreements wi
each other. Doubtless. such Transact
sometimes may be entirely legitima
This condition is recognized in the deere
which exempts from it's prohibition t
curtailing of shipments made in go
faith to prevent the congestion of ma
ketS. z
! other by defendants for all deviatIons f.,
the prices fixed, which needs no spec
comment.
1 Rules for Credits.
Uniform rules for the giving of cred
i are agreed upon. This Of itself might
I d, harmless; but it's purpose Is auxiliary
I the main conspiracy stated in that pal
1 graph, namely, the suppression of all CO
petition among the defendants. They Y
L not allow themselves even to compete
j the term Of credit which may be given
II their respective customers No purcha
4 may go from one to another of these
| PENDANTS and obtain the advantage OF
single days delay in the shipment of
j bill.
I The same purpose is behind the agr
u Continued on I'd PAGE 1st Column