The Dickinson press., 1905-03-18
The Beef Trust.

A few remarks on this all-important
subject seem to be of special interest
now in view of the recent report of Mr..
Garfield, commissioner of corporations.
who was directed by the PresidentFto
investigate this trust. "
The beef trust is composed Of six
packing houses-Armour & Co., Morris
& Co., Swift & Co.. the Schwarzchild &
Sulsberger company, the Cudahy Pack.
ing company and the National Packing
c~ompany-all with headquarters at
Chicago, who are known to the trade as
the big Six" These six companies in
1903 slaughtered about ff,y-6ve per cent
Of the reported slaughter of cattle in the
United States, and ninety-eight per
cent Of the cattle slaughtered in eight
leading western packing centers. They
have for years dominated the packing
industry, regulating the prices; when the
run of cattle was low putting the price
up, and when the influx came letting
the bottom drop out of the market; so
that the stockman, with his beef at the
market. is obliged to take what he can
get.
The report of MI. Garfield, which re.
views the situation Tor 1902, 1903 and
1904 in substance says: that during
1902, when beef was so high, these six
companies actually lost money on each
head of cattle slaughtered; and that
during 1903 and 1904 the profits of these
companies were from OLD to o2.3 pei
cent on their capital stock, which is a
very low dividend. And he furthel
states that the packing companies are
not over capitalized, so the small divi
dends could not be accounted for or
that score; and that he found practl
cally no inter-ownership Of stock among
these six companies, thus indicating thai
there is no combination. In short, thu
report is a vindication of the packers OF
every point. MIR. Garfield does say tina
the private car lines, which are Target!
controlled by these packers, yield unus
ually large dividends. but he adds tina
this does not increase the cost Of bee
to the consumer, He offers no explana
ton Of this assertion. The report shows
that the public have been misled in TIL
matter OF the beef trust; that wher'
immense dividends were supposed t
have been paid, small profits wer'
actually earned, and that there is NJ
combination.
The public should be pleased when i
is shown that corruption does not exis
where it is popularity supposed to exist
and we must admit that the packer
are entitled to fair play. But we know
the courts, after an exhaustive inquir.
into the matter, have decided that tn
packers we're violating the anti-trns
laws. And after reading the Garfield
report, one cannot help reaching tn
conclusion that MIR. Garfield has beef
buncoed or taken in by the packers.
We have conclusive evidence that tn
prices paid the stockmen have bee1
lower since the combination than be
fore, while the prices charged the con
sumer have been higher. There is
large margin between the prices pai'
the stockmen and the price charged tn
consumer which is not accounted for il
Mr.. Garfeld's report. This will b
plain to persons in this part of tn
country who have been selling thei
beef for three or four cents. Allowin
for what is dressed away in slaughter
ing, there is still quite a margin left. t
: say nothing of the b%y-products whic
: now figure enormously in the profits {
this business. Then when the gres
beef strike came on last year the pric
of meat to the consumer was raised {
once, while the prices paid by tn
packers was not increased. After tn
strike the market went to pieces an
very low prices prevailed, while tn
prices charged the consumer were keI
up for some time.
Again, the colossal fortunes made b
the packers, which are a fact, could nj
have been built up from the niggardl
profits allowed them by the CARTEL
report. We noticed recently the al
nouncement that the packers are goin
to build a million-dollar plant at Kans:
City. These men would not 60 I'M
this if it was a losing business, or eve
paying only one, two or three p'
cent.
Mr.. Gar6eld's report certain!
strengthens materially the position
the packers, who can now hide benin
an official investigation. But it is NJ
likely that his report will sidetrack II
steps being taken by the legal depar
ment to prosecute these packers f
violation of the antitrust law. And
is very doubtful if the report will salts
the President and the people. The
may be something in the report whit
is held back and not made public.
any rate, the trial of the packers whie
ia inst ahead of ra will he awaited I