The Penn's Grove record., 1905-02-03
BLOW TO THE BEEF TRUST
Supreme Court at Washington, D. c.,
Sustains Judge G~rosscup.
PROSECUTIONS MAY FOLLOW

ers-Efect will Be to Prohibit Com.
bination to Suppress Competitions
Statement by Acknowledgement Moody
Case Begun in March, 1909:
Washington, d. C.--Without dissent
the Supreme Court sustained the on.
tention of the Government in it's fight
against the Beef Trust, affirming the
decision by United States Circuit Judge
Grosscup, of Chicago, ILL.,, granting an
injunction against Swift & Co., and
other packers in the Beef Trust. The
opinion was written by Justice Holmes,
and the decision was expected by At.
torney-G General Moody, Solicitor-Gen.
eral HOyt, and Assistant ATTORNEYS of
the Department of Justice who were
present.
Attorney-General Moody when asked
to indicate the consequences of the
decision said that it was a matter of
such Importance and delicacy in its
relation to administrative action that
he was peculiarly DESTROYS of not be.
ing interviewed. However, in view of
the great interest throughout the coun.
try in the subject, he consented to give
the following analysis of the decision:
"First-It prohibits the continuance
of a combination to suppress cOmpeti.
ton in the purchase of cattle for
slaughter. This branch of the injunc.
ton will rebound to the benefit of the
cattlemen and farmers.
''Second-The injunction forbids com.
binations to maintain uniform prices in
selling meats. This section of the in.
junction will more directly affect the
consumers.
"Third-It forbids combinations be.
tween parties to obtain discriminating
rates from the railroad companies. This
branch of the litigation will be of ben.
eft to the cattlemen and consumers
alike
Mr.. Moody refused to state whether
or not criminal prosecutions would fol.
low the decision because of the def
ance of the packers in their refusal to
obey the injunction. 1t is stated, how.
ever, on good authority, that this phase
of the matter has been carefully con.
sidered, and that the decision has been
reached by the President and the At
torney-General to make such criminal
prosecutions.
District Attorney Bethea, of Chicago,
ILL.,, was i'll Washington week before
last, and had several conferences with
the Attorney-Genera and the President
on this part of the case, and it is I'M
derstood that Mr.. Bethea received
definite instructions how to act if the
decision was favorable to the Govern.
ment and that a part of these instruc.
tons related distinctly to criminal
prosecutions.
Of very great Importance was the
declaration of the Court that govern.
ment by injunction is unjust and il.
legal. No man, according to this view,
can be restrained by injunction from
violating the law. This sustains the
contention of labor organizations that
strikers cannot be restrained by in.
junction and then punished for con.
tempt of court. 1t radically concerns
trusts and great corporations, as their
most potent weapon in recent years
has been the injunction granted
against organized labor.
A brief summary of the prosecution
Of the case is here given i'll a chrome.
logical form:
March %, 1902-The existence of the
Beef Trust was shOyl and the fight
vas begun.
April SIT was shown that the trust
was able to control railroad freight
rates so as to sti1e competition.
April 5-Proof was offered that while
'~sQueezing" Americans the trust was
selling beef cheaper in England than
at home.
April .6-The secret agreement be
tween the trust packing houses was
published in full.
April General Knox be,
gan active proceedings against the
trust.
April 15-State Acknowledgement Da-
vies began preparation of suit to have
the trust declared illegal in New York
April 25-Attorney-Genera Knox de
cided that be had sufficient evidence to
obtain an injunction to restrain the
trust from further proceedings under
its agreements.
April 2S-Announcement that the
Government would proceed against the
trust in Chicago.
May 1S-Letter book of Armour &
Co. adds greatly to the strength of the
case against the trust.
May 21-Temporary restraining order
issued by Judge Grosscup against the
trust.
August 5-Demurrers to the injunc-
ton filed by the trust.
February 10, 1903-Demurrers over
ruled and injunction continued against
the trust by Judge Grosscup.
May 15-Trust permanently enjoined
by Judge Grosscup.
January Z, 1905-Case argued before
the United States Supreme Court.
IanuarV 2Q=Einal decision A0AinSt