Saturday news. (Watertown, S.D.) 19??-19??, 1918-01-31

(The appended article is contrib
uted by a man of broad experience
in the live stock market and is com
mended t. the thoughtful considera
tton III teaders.-Editor.)
Mr.. Heney in his investigation OF
the packers, brings to light some
facts that are new, but as a whole
have been an open book to the mi
tiated for years.
There is nothing new IN the fact
that the large packers .~ntrol the
stockyards' terminal facilities, ren
dering plants, financial institutions,
and newspapers at all the large stock
centers, However, the use made OF
this control viii be news to practi-
cally everyone. Their ownership of
the terminals does not hurt to any
great extent, owing to the fact that
if they did not take this rake-off some
railroad company would. There be-
ing a profit in the switching of cars
from the various roads to the yards
is sufficient inducement for the pack
ers to own them.
The ownership of the stockyards
themselves is Of more serious i'm
port. The farmer consigns his live
stock to some commission firm with
Offices in the Exhange building who
has certain stock pens and other ia
cilities provided by the Stockyards
Company for which he pays very lib
orally. The commission firm is nat
urally supposed to work solely for
the interests of the farmers who con
sign their stock to them, n to get
the very highest price possible and
the greatest fill. but is it possible to
do this when he is compelled to sell
the most of his offerings TO the very
people to whom he pays for all his
facilities for doing business? The
Live Stock Exchange of which he
must be a member in good standing
is composed of Commission firms do
ing business at the yards. q seat In
which costs, in ST. Paul, for instance,
5000. The value placed on this
membership does not indicate there
is much trading in that particular line
but would lead one to believe that
more members would not be desired.
Mr.. Heney developed the fact that
some ~ Western Union operator at
the Chicago yards made the prices to
be paid for live stock at other centers
daily. Whoever this party proves to
be, 1t is plain from the evidence that
he had a gTudge against the patrons
of the st. Paul market as it was
shown that the average top price
paid for hogs during the past year
was 63c per hundred under Chicago,
and we have known the difference to
be as high at $1.T0. during the last
few months. The fact that the live
stock placed on the ST. Paul market
is generally inferior to Chicago would
account for a portion of this spread,
but would assume it mostly due to a
lack OF competition. One witness
stated that when Mccormick operated
i plant in South st. Paul, he always
received 1oc per hundred weight for
his hogs above the price paid at the
packer controlled yards. The fact that
the Mccormick plant is no more
might Justify us in thinking he had
paid too much for the safety of his
business. There is an independent
plant In st. Paul proper that pays
South st. Paul prices, allows a sub.
stantiai number OF pounds per car OF
hogs to more than offset the fill gained
at the yards, and saves the farmer
numerous charges. This concern does
4 large business and is prospecting
Along this line OF reasoning it is
apparent that the live stock produc.
ers' salvation lies in nero indie.
pendent plants located so as proper.
IA to care for the demand OF the sec.
ton which they would serve. Lack
of competition is less noticeable al
Sioux City than ST. Paul, due 10 sew
eral eastern and middle west packers
supplying taeir needs from that mar,
ket These purchases have made
City better relative market
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