The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-03-10
THE BEEF TRUST REPORT.
CONGRESSMAN MARTIN TAKES
ISSUE UfTH GARFIELD.
He Declares the Yearly Front Of the "Bis
Six" a. shown by the Report, are
From IL to 30 Fer Evidence Of
Combine Withheld From Publication.


WASHINGTON. March "a vigorous
criticism OF tho report Of Commissioner Of
Corporations Garfield on the beef trust,
together with an analysis Of tho report,
is contained in statement made public
to-dny by Representative Ehen W. Martin
OF South Dakota, the author Of the House
resolution under which tho Garfield in
vestigation was made.
Mr.. Martin says that the report ia mis-
leading. and that IL 1is in the nature Of n
special pleading in defence Of the BUSH
ness of the six large packing companies
involved in the investigation He points
out that whilo Commissioner Garfield se-
cured his information from original
sources the defence only OF the packers
Is given. little space being devoted TO the
complaints OF the stockmen, who were
primarily responsible for the inquiry. Mr..
Martin contends that the document Is fun
OF inconsistencies, in that the summary
makes no mention Of evils which are dis
cussed at length in the earlier pages Of
the report. He sharply takes issue with
Commissioner Garfield "a TO the profits OF
the packers.
Mr.. Martin directs attention 10 the wide
spread public criticism Of the report, saying
thnt -tlis has resulted partly from what
the report does not contain and partly
from tho predatory statement purporting
70 be a summary Of what the report does
contain" MIR Martin continues:
The public, from a hasty reading Of |
this Introductory statement, has received /
an impression that the Commissioner con- |
cludes that the great packing companies |
are struggling along at dying rate under
a 81
hining TO control the prices OF cattle or
dressed beef. and that ii they should make
an effort in that direction it would be I'M
successful. because tho volume Of their husi-
ness Is too small proportion Of the total
meat business of the United States
Il an not surprised that the report in
the form in whichit is presented has created
this impression. This is particularly I'M
fortunate just at this time when the De-
partnent of Justice is enga ged in vigorous
criminal prose cutions, based partly, at least,
upon important evidence developed in the
course Of this investigation 10y the Depart
ulent of Commerce and Labor
The House resolution of March Z. 1904,
under which the investigation has been
made, requested that the investigation
should cover four inquiries
First-The causes Of the low price Of
beef cattle and the unusually large margins
between the prices of beef cattle and the ,
selling prices Of fresh beef I
standardization these conditions re- a
suited in whole or in part from any con- !
ract combination, trust or conspiracy In
-estraint of interstate commerce..
-Third-Whether the prices OF cattle and
,eef were controlled, in whole or in part. By (
corporations engaged in interstate com
nerce, and, If so.
"Fourth-To investigate the organization n
"a capitalization and profits Of such corpora N
ions. {,
"The report just made" continued Mr. ~
talfIn. covers only the first and fourth =
divisions Of the investi legations and covers u
hem only in part. The second and third /
divisions of the subject relating 10 the
question of the existence Of combine in n
e5trant of trade are not intended % be re- II
erred 10 in the present report. II is well d
Understood that q vast amount of evdeuc. :,
IA been taken by the Commissioner and his in
gents upon this branch of the investiga- oI
ion. There is manifest propHety in with
odlng the evidence OF the alleged trust III
perations from publication at tins time e.
Mr.. Martin then discussed Commissioner r.
iarteld's sources Of information and an 70
lyled his conclusions as 10 the profits Of the ,,s
eef combine. lie said: ~
1t is apparent that the basis Of most OF al
DC Ihla Gllilli4tI mas Dec N furnished by 4
ne packers themselves and TO this extent
is a one sided compilation. The Commits .,
Toner claims that the Big Six under in ~
control only IS per cent. OF the ~
leat business of the United States II this Il,
q true there would have been manifest -,
ropHety in publishing the statements and
stimates Of Independent packing com 4
anies and individuals. which, We arc told
o the other s. per cent. of the business 4,
Upon the question Of profits the 90 called
states that tho packers make
My 9Icent- upon n steer and that the profits
o not exceed from IS TO per cent on the tn
ales. Nothing il snid as to how often the 90
apital Is turned during the year nor "a 10 !
hat are the annual net profits on the cap -.
al invested IN the business, which is the W.
aal test Of whether a business il profitable We
r unprohtaole. The body Of the report bo
self shows TINT for the war 1902 swirl 4 be
o.. made 10 per cent. and the Cudahy com OF
any 20 per cent. on their total captali- =
alton. The report also shows that in re- ~
mt years the various large packing com a..
anieI have realized regularly annual vi
rofts Of not less than from II to 20 peyn. w
snt. upon their investments. THIS ~ ma
noWn from tAe statements Of the packers eN
lemneiy-S
While this particular report does no eei,tl
-eat II the subjects Of competition or ~,
Jmhination in restraint of trade. the so -'l'
He'd summary makes use Of language r.
hich by inference, conveys the impress W.
on that there i5'no combination and that
lHllTtlliDu l. tOUIifte, ffee and potential.
he packers themselves put this constr1lc-
on upon the document and consider them ord
lives indicated This impression has l
suited naturally from the emphasis given 10,
the summary 10 the fact that the Big ne,
X do only about IS per cent Of the meat Ch
lsiness Il the country. that their control TO-
rem II they acted IN harmony would be =,
,nilned TO comparatively narrow limits me
I'd from the frequent references TO the 1
otential competition Of local butchers a'
The report, however. shows that the ." f.
Jig six concerns slaughter gs per cent Of To
the cattle killed in the eight leading iir
e6ten packing centres which furnish w,
aciically tho only markets for the cattle mi
-oduct OF the West and Northwest. and ole
is evident that this entire business H. as $40
mpletely in the control Of the six con- .r
rms mentioned as though the same com G
mics had es per cent. Of the cattle business and
the balance Of the United States The re- Rar
'rt also shows that the six concerns usually 70 e
ntTol from - TO 100 per cent of the dressed Pen
-ef business in localities where these com r
mics establish their operations The Chi
mpeteness OF their control Of the markets ~
ey enter IL not lesseued bv the fact that n
ere are other sections Of the country q. &
here as vet they do little or no business e'sc
II their control Of any portion Of the Il"
tile or meat markets j. exercised in free ZION
mpeuuon, II Is legitimate: II by com NJ
nation IN restraint Of commerce. il Is in en-
9lalon OF the law and against public y
Icy. That precise Question IL tg,,t ,,v,,;.r Nv