The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1910-01-27
.BLAMES TRUST FOR
HIGH PRICES OF .
MEAT
A. S. Drake, Former Detroit Packer,
Says Big Cut Could Be Made and
Still Leave Comfortable
Margin of Profit.
Tells How the Octopus Gets Small
Butchers in It's Clutches-Good
Cattle Are Scarce.

That the packers trust can make
liberal reductions in the prices OF
meat and still make fair profit is
the interesting statement that comes
from A. S. Drake, formerly a Well
known packer In this city, but who
now owns a 10000 acre cattle rahch
in southwestern Kansas. Mr.. Drake
is paying his annual visit TO his
daughter. Mrs. w. e. Moss. No 1853
Alexandrine-ave. west, wife OF a
well-knOwn banker and broker. Many
Detroiters will remember Mr.. Drake
as member OF the old packing firm
Of Belnap K Drake. though it was
nearly 20 years ago that he retired
from the business and moved TO Kan
sas.
AS cattle raiser, Mr.. Drake is
thoroughly familiar with trust meth
DDS, and statement from him at this
time is of more than usual interest
There can be no question, he says
that the trust controls prices of meat
to a considerable extent, though the
law of supply and demand is. after
all, the most important factor and
for that reason, Mr. Drake points out
the present widespread meat boycott
is bound to result in lower prices.
This boycott is a good thing" he
said to The Times 1T will tend TO
clear things up and bring the trust
To time. II will show the big pack
ers that there is limit TO what the
people will stand Meat prices are
bound to take a drop. and the trust can
shave the prices quite a little and still
sell meat at a profit It will have to
come off the consumers end, because
we In the west cannot afford to sell
our cattle any cheaper than we have
been selling them. 1t is true that we
got IS per head more for cattle
last year than we did in 1908 because
1t cost us more to raise thine cattle,
but that does not explain the big adj
vance in the price OF meat The
fault is not with the cattle raisers.
1t IS with the trusts and the middle
men, who fix the prices TO their GUS
toners to suit themselves. as a rule.
but the trust has gone a little too
far. BY it's tactics 1t has defeated its
own ends in some sections. and the
consequence is that 1t now has more
competition than it had previously.
This is the way the trust works: It
will go to a butcher who is enjoying
a good trade, which he has built up by
his own efforts through years of strug-
gle and close attention TO business.
He has his own slaughter house, does
his own killing and is perfectly con-
tented. The trust agent comes to
him and says:
I'VE will sell you so-and-so at such
and such price, dressed and deliv-
cred to your shop. The price quoted
is Ii very liberal one. The butcher
sees where he can cut off the expense
and labor connected with his slaugh-
tel house and the proposition appeals
to him He closes down his plant. sells
OF his equipment and starts dealing
with the trust. Then he finds that the
trust demands a settlement every
week and will extend no credit beyond
that time, while the butcher is carry
ing many good customers who settle
monthly. He tells the trust that he
hasn't the necessary capital to meet
his bills weekly. That is the trusts
opportunity.
1--WE will lend you the capital and
take your note the agent tells him.
That is the opening wedge This lit
tic game has been worked on many
butchers throughout the country. with
the result that their shops are now
owned by the trust and they are sim
ply the hired men.
MANY OF the butchers. in reltalia-
ton, have gone back TO the old way
and are now running their own slaugh-
ter houses once more. BY buying q
cheaper grade Of meat they are able
70 undersell the trust and win their
old customers back. This Is the sort
OF competition the trust is now facing
in many towns and cities and the re-
suit is that prices have been reduced
In these communities
But, while prices Will be lower than
they have been heretofore as result
Of the present agitation, they will con
tinue to be fairly high for some years
TO come In my opinion. There IS "A
scarcity ~ good cattle, due partly TO
the unusual demand and partly 20 the
breaking mp Of many large ranches In
TO smaller ones. There is no danger
OF famine, but time must be allowed
to let these smaller ranchmen get a
start"
Mr. Drake has upward OF ZOO head
OF cattle on his ranch and sells about
500 head yearly.
Tile trust does not confine its oper.
atoms to cattle swine. and other live
stock Of the four-footed variety. Mr.
Drake says.
Last fall out In our state he de
clared, the trust sent It's men through
the country buying mp all turkeys they
could get their hands on. They nut
them I'm cold storage, and when
Thanksgiving time came around they
sold them to the dealers at % cents n
pound and told the dealers 10 charge
20 cents The result was that the peo
pie wouldn't buy the turkeys. but took
chickens and geese instead. So the
trust was stuck with the turkeys and
had to ship them elsewhere.
THE trust also has men out buyinp
up eggs. which are likewise held An
cold storage That is one reason why
eggs are 50 high"
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