Tonopah daily bonanza. [volume] (Tonopah, Nev.) 1906-1929, 1918-03-20

1 '"s HA7VGANHSW ANRAAst
| OMAHA, March 20.-Francis ].
Heney, general counsel for the Fed.
eral Trade Commission in its inves-
tigation of the nations packing house
industry, introduced evidence at the
resumption of the hearings in Oma-
ha yesterday designed to show:
First, that the packers maintained
stockyards in different cities in an
effort to hold down prices paid pro-
ducers by forcing them to sell
wherever quotations were the low
est.
Second, that there was an agree
ment In effect among the packers
pro-rating the amount of livestock
any one of them could buy in any
market
Third, that the influence of the
packers even extended to the banks
in which cattle producers were forced
TO discount their notes and obtain
loans.
Fourth, that millions Of dollars
wrung from shippers by unjustifiably
large charges for yardage and feed,
we're distributed among the packers
in the form of stock diyidends which
virtually amounted to rebate.
Two bankers, two livestock men
and NJ R. Murphy, general super
intendent OF the Cudahy Packing
Company, were the leading witnesses.
Several letters from the files of
Swift & Company also were read at
the hearing, which was before S.
Evans, examiner for the trade com
mission
Mr.. Murphy, who appeared in re-
sponse to a subpoena, was subjected
to detailed examination concern
ing the packers buying plan after
he had testified that he was In
charge of purchases for Cudahy at
Omaha, Kansas City, Wichita and
Sioux City. Although he declared
that he knew of no agreement be.
tween the big packers to divide the
cattle receipts at different yards,
he added
I'VE know what we are entitled
to- This he explained by saying
hat the bigger plants were entitled
o the biggest receipts.
Heney then introduced letter
written to Murphy by f. A. Cudahy,
n which he said that R. c. Howe, Of
Armour 4 Company, had called to
see him and in which he referred to
our 80 per cent of purchases of
hogs" AT the bottom OF the letter,
Heney said, the following figures
we're written in pencil Armour &
'ompany, 80; Cudahy, 80; Swift &
Company. %; Morris & Company,
10" Heney declared that this con-
stituted 100 per cent of the gross
receipts of hogs
Heney then introduced second
letter dated June 30. 1911, and ad-
dressed to Murphy, which said:
Buy your full 80 per cent this
week at Omaha and so per cent in
Sioux City"
A. F. Stryker. secretary and traf- |
fic manager Of the Omaha Live Stock
Exchange, was examined along lines
which indicated that Heney was en-.
deayoring to establish the extent OF
influence exerted by the packers over
The market by reason of their own
ership of stock in the yards COM
pany The witness replied that he
was satisfied that the quotations sup
piled from Chicago, Kansas City,
st. Paul and other points were fair
and we're not dictated in their own
interest by the packers. w. B. Tagg.
president OF the Omaha Live Stock
Exchange, testified along similar
lines.
In reference to the control Of
yardage facilities by the packers,
Stryker said that It was generally
that Armour controlled
the Omaha yards, Swift, Sioux City;
Swift st. Paul; Morris, Oklahoma
City; Swift and Armour. Fort Worth:
Swift and Armour. Denver; Morris,
Kansas City; Armour, Chicago. and
Morris, st. Louis.
Heney then read a record OF the
earnings Of the Union StOckyards