Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1919-08-02
Control of Livestock Markets

IeTS
Control of Livestock Markets
"The ability of the Big Five to de-
teruline from day to day the general
level of livestock prices Is incon-
troyertible," says the report. Their
MANIPULATION of the livestock market
ia summarized by the Commission as
follows:
1.-THE livestock market in the
United States is dominated by the
five big packing companies because
-. They control the principal
stockyards at which livestock prices
for the nation are made.
"2. They buy most Of the live
stock which are sold at the principal
stockyards markets; and
IS. They have. through their con-
troll over the stockyards and the eX-
ercise in concert of their great buy
ing power, influence over the activi-
ties of many of the livestock COM
mission men who are supposed to
represent the interests of the live
stock producers. whose agents they
are.
In the exercise of their power
over the livestock market
Il. They discriminate against. and
nut at great disadvantage. indie
pendent buyers-independent pack
ers. order buyers, and traders-who
are their competitors in the market.
%. They manipulate on occasions
the livestock market in such a way
as to cause extreme and unwarranted
fluctuations in the daily prices paid
for livestock.
THE principal results Of their
dominion over the livestock market
are:
Il. They have eliminated many of
their previous competitors at the
stockyards and have prevented new
on,s from coming into those yards.
"2. They have restricted the meat
supply of the Nation by manipulating
daily livestock prices and thus dis
couraging the producers of live
stock.
The Way They Buy.
when the packers buy animals In
the country. the price is based on the
prevailing price at the stockyards
markets. AS to whether the pro-
Queer is benefited by country buying
depends mainly on whether there Is
competition. In the corn belt the big
packers compete with the indie
pendents in country buying. whereas
on the Pacific coast there Is q divi-
sion Of territory between the packers.
The advantage Of the big packers
through their concentration stations
in the corn belt lies to q degree in the
way in which railroad tariffs are
made"
AS to their great buying power and
control of market prices by the Big
Five, the report further says:
las they buy most Of the animals
slaughtered at the IL great markets,
their ability to determine from day to
day the general level Of livestock
prices is incontrovertible. That they
do determine 1t is generally recog-
nized by livestock producers and
commission men and this is con-
firmed by correspondence from their
files. The big packers through their
centralized buying system determine
the general level of prices each day
at Chicago before the market has
opened and send out the orders to
their buyers at the different markets
as to the prices to be paid. The local
buyers for the different packers go
into the market at the same time and
assume the same buying attitude"
The report presents numerous let
tiers from the packers files indicating
collision among the Big Five in buy
ing, determination Of prices and
manipulation Of the markets.
Why and how they dominate in
the manufacture and distribution Of
meat products 10 summarized as fol.
lows:
"Of the meat trade in the hands of
interstate slaughteners in the United
States. the I'VE big packing COM
.panies have more than 70 per cent Of
the total OF the meat trade OF both
interstate and wholesale local
slaughterers they have more than 81
Per cent Of the total"
kpAekers Obtain chsspsr crsdit.
Addition to the superior ad.
xes over the Independents In
the hdying Of livestock. the big pack ;
ers obtain cheaper credit. 0ay Sup-
pltes for teas, .get better t1aaspogfa.