The Fargo forum and daily republican., 1918-12-03
FEDERAL TRADE
officials SAY
P PACKERS HOLD
ABSOLUTE POWER
Completely Control Price
of Livestock and Divide
Purchases
fRy Associated Presa. )


day charges the five big meat pack
ing companies Of the country with
combination in restraint OF trade
and with controlling the sale OF
liVestocks and fresh meats.
Evidence is cited at length to sup
port the charges. Swift Sc So, Arm
our & Co., Morris & Co., Wilson
company, Inc, and the Cudahy Pack
ing company are named.
Proof Strong.
"The evidence OF the present day
existence Of meat combination
among the five big packers is volum-
this evidence is convincing, consist
ing as it does largely of documents
written by the packers to their
agents and including the memoranda
made by one of the participants in
the combination Of terms and con-
Editions agreed upon at various meet
ings Of the packers"
The Findings.
In a summary of it's conclusions
regarding collusive livestock buying,
the commission said it finds:
"That the big packers together
control the livestock markets.
THAT such competition as appears
to exist is limited and not real.
"That they together fix livestock
prices"
"ColIusion in buying" the report
said, Ifs in operation at all princi-
pal markets" -
"The buyers begin buying at the
same time" the report stated. IF
one holds off the market all hold off.
So strong is the influence of the big
packers buying that the market is
not made until their buyers begin
bidding.
There exists, therefore, for each
of the big packers, a centralized
buying system so simply contrived
and organized that it controls the
smallest details Of livestock pur-
chases at each of the markets and
can be set in motion and directed by
single word. Only a few men in
each company need know that there
is an agreement or understandings.
Check Each Other.
The report said the big FIVE"
Jointly employ men at markets to-
gather market conditions and thus
check each others operations.
Analyzing conditions at various
markets, the report said that at St.
Joseph, Mo-, Swift, Armour and
Morris operate at yards controlled by
Swift. -
2"At times" it was stated, Swift
has difficulty in getting Armour and
Morris to support the market.
Swift -& Co. controlled at ST
Paul, but now Armour has a share or
the livestock receipts there"
$3.50 Deals. s-.,e
At Omaha and Sioux City, the re-
port declared, the Cudal1y and Arm
our plants are the largest and Swift
q email In6a-
pendent plant at Sioux City.
"At this market (Sioux City, the
arrangement is for Cudahy to buy
'just as many hogs as Armour buys
the report declared. ..
."The flfty-fifty division Of hogs at
Sioux City Is of long standing" the
report added, quoting messages from
E. A. Cudahy to Manager M. R.
Murphy.
"At Omaha" the commission said,
"the divisien Of hog purchases Tor
many years was in the following
arbitrary percentages: Armour 80,
Cudahy go, Swift 25, Morris 10"
The commission said wilson
Co. in 1917 tried to establish a
fright" to buy at Omaha, but was re-
buried by Arthur Meeker OF Armour
Oklahoma City, TT. Worth and
Denver, the report stated. all are
''ifty-fifty" markets. THAT is," i'll
was stated, there are only two bigl
packers operating at each of these
markets and each packer Is expected
to purchase an equal amount OF live
stock.
Same Everywhere. 49,.
At Oklahoma City, Morris & Co.,
and Wilson & Co. control the stock
yards and buy practically an equal
number of animals. ]
cat Fort Worth and Denver, Arm
our g. Co. and Swift e. Co. are the
only big packers. The stock yards
and allied facilities are jointly con-
trolled. Therefore, both must sup
port the market alike"
Proof offered.
Detailed statements Of respective
livestock purchases at the various
markets were appended by the com !
mission in support of its charge that
agreements exist.
'It is obvious" the report con
tinued, "that the livestock pool Is
not only an automatic regulator OF
the business Of each company, put
also secures substantial uniformity
OF prices, With each packer pur-
CnaSlnEt OILY a. SSA Ic1ltA PSA
the hoof each is bound to have re-
latively the same proportion Of the
meat for sale. Thus the compeu-
tive chance that any one or the
packers will flood the market as
eliminated
The commission also declared there
is proof that "the big packers take
of livestock purchasers
and sellers" and added:
"The shipper who refuses TO ac-
cent the price offered at the nrst
market has a chance to sell his live
stock on its merits to small pack
erg. buyers and traders but the
chance is slight"
Regarding the alleged packers
regulating the sale or
meat products In this country the
report said:
Sales Agreement Also.
aTheir present agreement as TO the |
division of livestock purchases re-
suits in limiting the amount OF
dressed meats each will have for sale
in nrnnortton approximately to the
percentage OF live animals plrcnased
under the purchase agreement. by
inspection Of one anothers
branch house stocks, they are en-
abIed to prevent an over supply OF |
fresh meat in any market.
BY their exchange OF information !
as to the raargine on sales OF meats
at the different markets they are
able to keep their average prices SO