Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1907-05-27
Clash Between Packers and
Commission Men May Have
Serious Results
NEW RULE CAUSES TROUBLE
Decision to Pay for No Cattle Until
After Post Mortem Inspection Is
Passed Creates Unusual Condition
Hogs and sheep May Be Affected
Protest by Commission Mon.

! Chicago, May 27.-Meat prices In
Chicago may jump skyward this week
unless the 'beef trust" recedes from its
recently announced intention to delay
payment on certain of its livestock
purchases until they have passed the
government post-mortem examination.
The packers notified the commission
firms that beginning this morning they
no longer would stand the loss on con-
denned cattle. and in order to protect
themselves they had found it necessary
to refuse payment in Cow STUFF until
it has passed the government inspect
ors.
This attitude caused tremendous ex-
element in packing circles and 1t is
predicted by commission men that an
extremely acute situation will develop
unless the packers back down.
During the latter part Of last week
thousands of letters and kilograms
were sent out by the commission men
to their customers, notifying them OF
the action that had been taken by the
packers and advising them to withhold
all shipments of cattle to the big mar
kets controlled by the trust until the
difficulty is adjusted. This is expected
to cut the meat supply tremendously
before the week is over, and prices are
expected to go up Correspondence
Commission men declare 1t is the in
tention of the packers to enforce the
rule with regard to Cow stuff" now IN
the hope that similar action may be
taken later with reference to their pur-
chases OF sheep and hogs.
Ever since the new meat inspection
law was passed last year the packers
have complained because they rere
forced to stand the loss on condemned
cattle. and 1t has been known around
the yards for months that they were
seeking a way to evade that obligation
without arousing the ire of the ship
pers and producers. Several times 1t
was rumored an announcement similar
to the one made last week was about
to be sent out, and the commission
men say it would have come sooner
than it did had the packing interests
sibility of losing the benefits given
them by the government inspection
service. This latter fear, especially.
has had q powerful deterrent effect on
them.
Cow stuff Is a minor item in pack
ing house business. and commission
men say it is for this reason that the
packers selected It as the objective in
their new ruling. Less than 2 per cent
of this class of purchase is condemned
as unfit by the government inspectors,
and the loss on it alone would not
mean much to the shippers and pro-
ducers.
The commission men contend, tho,
that If the packers are allowed to re-
fuse payment on this class of live
stock they will extend the ruling later
to, all their purchases, and this, COM
mission men declare. practically would
drive most of them out of business
and make the cattle raising business
an extremely improbable one
One of the most serious objections
to the new ruling is that it would dis
rupt the present financial methods OF
the commission and packing business.
A packer, whit the rule effective, would
not be compelled to pay for any of the
cattle or hogs purchased by his buyers
until after all of them had passed the
government inspectors. In consign-
ment of cattle and hogs there might
not be single unsound animal, but
the packer could not be aware of that
fact until all of them had been killed,
and this would force the shipper and
commission merchant to wait week
or perhaps longer for their money.