New-York tribune., 1905-01-10
BEEF TRUST ARRAIGNED.
NR. MOODY'S ARGUMENT.
Packers Engaged in Interstate Com
merce-Consmracy Charged.
tFRoM THE TRIBUNE eunEAu.I


| Attorney General and showing keen interest in the
clean cut legal points of the speaker was Senator
tlox under whose direction the battle against the
Northern Securities Company fought ard won
Many oe the ablest lawyers in both branches o.
Congress and visiting attorneys Of national repu a
ton were IA the iHclosure set apart their &C
commodattOn. ard they gave their undivided atten-
uoa to the argument. The Attorney General ste
ceSsfu'ly withstond tremendous fusiiade Of rapid
hre questions froiA The berch. and demonstrated his
AGILITY 10 acquit himself creditably IN nil4r battles
| ~ IN 'he future against the legal giants composing
the army of trust defenders
! dr. Moody said il appeared clearly in the peti-
! t i mat there were three main subjects on which
ne de'endants entered into an agreement Elnni-
-r'hS all the statements by which the p.eader
| "i'cterzed the purpose ard effect Of the agree
| is clearly shown.
refsons owning livestock and living in other
ana Territories than those where the stock
.1 " situated were accustomed to send such
! 80, !" me various stockyards named for sale
e, Inc defendants who were scveralIy en-
eage9 II the business Of buying such livestock for
me purpose OF saughtering and converting it into
- meat. entered into agreement with each
o.er 10 refrain from bidding against other. ex-
~ co'oIdoly In the pursuance OF such livestock
with the purpose and result of suppressirg ,;II
competition in such purchases
CLEARLY INTERSTATE COMMERCE
An agreement having been thus clearly alleged
nc Sald' the question rs TO whether the
agreement relates to interstate commerce and ne
proceeded TO argue that proposition. saying that
the same sort OF bargain is made for cattle pro-
duced and owned within the State Of sale az for
cattle produced ard owned in another State and
sent to the locus of the transaction ror Tho ,r
pose or sale there The interstate character OF the
transaction, he said, where an owner of a com
modify living in one State ships It to another
continues from the beginning OF the shfpn,ent and
lhcludes the sale Of the commodity. If it has not
Iost It's identity by the breaking Of the original
package in which il had been imported
Having cited certain species of contracts which
he did not believe should he held to be within the
prohibition of the interstate commerce act Mr.
Moody said
But each age has its own evils and there has
come into view in more modern times another kind
or contract which, unfortunately, as I venture to
6i 6, @ @uade Athough there are some resemblances
petWecn this kind Of contract and the one which
sential distinction between them. This kind of
contract is not made as ancillary collateral to
any other contract between the parties but on the
other hand is the main subject of agreement be-
for saSe 10 The III S se o n not @ to Pae M
good Will nor to be ancary to any other main
pendent persons as will result in the controlling
titnn b o it Lhe suppression OF compe-
customers; the destruction OF competition others
means of monopoly in the modern sense of the
SeTe bssn gc b b a as asse If not gnversa
10 De against public policy and unlawful in the
must concede that he courts have nT 1o+ sTa
made the distinction which l am endeeyorng to
OF things. and the neglect observe it has led /
make bold to say, to some confusion OF thought
After citing a long list of decisions including
those in the Addyston Pipe and the Northern Sc
curities cases, Mr., Moody said;
l conclude therefore that the agreement disclosed
in the sixth prasraph of the petition to suppress
purchase OF livestock so situated as to the sub e
ject of interstate commerce is within the meaning
in the words of this court in the Northern Securi
ties case Ito destroy restrict free competition in
in rstate commerce is TO restrain such commerce"
CONSPIRACY TO REGULATE PRICES
Speaking on the second main subject of agree
ment. he said
1t appears d.. . that the defendants have combined
and conspred arbitrarily to raise, lower and hx
among themselves. This conspiracy is rendered eff
the countrv by the agents and attornoys OF tbe de-
PENDANTS. At these meetings uniform prices
greed upon. and the defendants adhere to the
prices thus fixed. That such an agreement relates
10 and restraints commerce. according to the well
settled rule Of this court Is so plain that cannot
ton that ought to be noticed is whether the com
merce which 1t restrains is commerce among the
gress and the purview of the act
Taking up the allegation that the defendants are
only engaged in making the sales. but IN ship
ping the goods sold pursuant the sales Mr.
Moody said light thrown the meaning of
the allegation by paragraph 10, in which he said.
1t appears that the defendants engaged in the
common enterprise of obtaining unlawful rebates
Further replying to counsel for the defendants Mr.
Moody said:
It is not the the less Interstate commerce because in
product into another State for purposes OF sale
and there selling IT, sees fit TO transport it to
result But these defendants have not
always contended that transactions of this class
When they wished the protection OF the national
interstate. and therefore under the protection of
the nation, and their claim has been twice
tained by this court
Two cited, IN which he said the defendants
the real parties. establish beyond doubt or
caviI that the transactions Of their agents in
selling meats in other States than that OF their
preparation are interstate commerce. He asked IL
these transactions not subject to the re-
strctions which may be imposed. and continued:
The offence is complete when the combination is
n no IS not not cured OF & its vice VICE
carcasses before they are sold Let the offence
Of those defendants be obscured by any refinement
concerning the details of their conduct. Control
ling 60 per cent of the fresh industry of the
Nhoie country they SIT down at their slaughtertng
and packing establishments, and, with the aid OF
the telegrap1: through the nstrumentality of
the country. clothing their ctons and shell
lower raise. and when thus lowered or raised
hx and maintain absolutely as among themselves
necessaries of life as IT enters and follows the
lawful restraint of commerce among the States
and was SO declared in the AddystOn Pipe case.
from which all the ingenuity OF counsel cannot dis
IL appears that me defendants ale all engaged
in the common effort obtain unlawful rates
which they subsequently, share pool among them
the pooling OF these unld"ful rates. but the ex-
cluson of all outside competitors from obtaining
them There is set forth, perhaps nsrthcially. a
combination upon this subject.
No competiti9In can long endure against those
joying rates for the TRANSPORTATION of their prop
preference over all others in the same business. No