Richmond planet. [volume] (Richmond, Va.) 1883-1938, 1910-02-05
COLLISION IN
BUYING CATTLE
How Packers Keep Up High
Prices Of Meat.
NO INDEPENDENT BIODING
Packing Houses Control Quantity and
Price Of Live Stock In Daily Buying.
Profits In the Business.

FHSe OF 1--we STOCK IN Daily Buying.
Profits In the Business.
The corner stone Of the fight now
under way before the federal grand
jury IN Chicago for lower meat prices
turns upon the effort OF the pack
Ing interests In the country to
form a 100000 GOO trust. with an Eng
fish charter so framed as 70 dodge the
operations of the laws OF the United
States. -Four years ago this idea for
operating all OF the packing house
plants In America was started upon its
way
II died a speedy death when attor.
neys who looked into the question re
ported 10 the chief movers that an
Englich corporation operating under an
English charter could do nothing in
America that a local corporation
~ould be prohibited from doing.
Then the National Packing company
became the sole reliance OF the meat
interests. Following the train OF this
company the grand jury will find the
allegation that a combination exists
for controlling the Quantfty and price
In the daily buying OF live stock ThiG
matter goes 20 the life OF the packers
present defense. that the high prices
OF meat are due 20 the operations and
greed OF the farmer.
Here Is what the evidence IN the
hands OF the government on this point
will show:
Practically all OF the live stock that
comes TO the Chicago packers is pur.
chased In the daily market al the
yards OF the Union Stock Yards com.
pany. Car after car daily empties its
burden OF cattle. hogs and sheep into
the vast pens OF the concern. Each OF
the big houses has It's stan OF buyers
Who spend the day In the pens buying
for their respective houses.
The evidence will show that each
day between 3 and 10 o'clock the on
erauons OF the buyers are mapped out
oJ them. network OF private tele.
phone lines, leading 20 each pen and
from each packing house. is brought
into service to tell each buyer what
he must buy. what he must keep of OF
and how the days buying has been al
iotted among the packers.
There is no Independent bidding OF
emo house against another. as the fol-
lowing incident will show. One day
the buyers were all assembled in the
hog pens In preparation for the DAYS
business. but after consulting the cen.
trail once Just before the opening or
the market Il was noticed that all the
buyers except one drew OF. They had
been ordered TO let that house do all
OF the buying and not to make a pur.
chase or one hog at any price. The r.
suit was that sellers who had brought
hogs 20 the pens had them left over
until the following day. The hogs mus,
- fed. the men must maintain them
selves at hotels. and the cost OF wait
ms Tor rise In price was thus made
TOO great TO warrant a fight for n
higher price for the hog shipments.
Next day the price OF hogs went
down and everybody bought. The gen
sral program was to limit the buvjne
squeeze the price. and then by concert.
ed action stock up on hogs at the re
duced price. Just before the law OF
supply and demand" quoting the pack
ers. forced up the price again.
From an inside source about tho
stock yards IL is learned that there IS
less justification for high price OF
meat under the latter day system Of
utilizing the by-product than there has
ever been since the packing industry
began This is because these bv-pro-
Ducts are now sold for about one-tbird
the cost OF the animal These are the
figures on which this estimate IS has.
ed: A 1900 pound steer on the hoof
bought at price which nets the seller
Sss. will dress $50 pounds Of meat for
the market. This will be sold for $50
more or less, according to the mar.
ket leaving the packer the by-products /
on which 20 make up the deficiency
and make his profit He will do this
IN the following manner:
Tallow and cleo fat. $40; hide 50: |
tongue. 75c-; OK tail. loo; liver. Csc;
castings, 35c.; glue. 81: horns. Csc:
switch. lOc-; tripe. 81; shank bones
and knuckies. zoe; palates. 1Oc.;
brains. Toe: lips. 10c.; cheek meat
roc; sweetbreads. 10c.; blood. 81. To
tai. $2460.