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The Columbia University Libraries reserve the right to refuse to accept a copying order if, in its judgement, fulfillment of the order would Involve violation of the copyright law. Author: Title: Plain facts regarding the attempted destruction of Place: [n.p.] Date: [1 886] COLUMBIA UNIVERSITY LIBRARIES PRESERVATION DIVISION BIBLIOGRAPHIC MICROFORM TARGET MASTER NEGATIVE # ORIGINAL MATERIAL AS FILMED - EXISTING BIBLIOGRAPHIC RECORD Business t)302.1?- P69 ■ Plain facts regarding the attempted destruc tion 0-: the dressed beef industry. c^^^^J 22 p. 1. Beef - Transportation. ^2.. Railroads U. S. - Rates. RESTRICTIONS ON USE: FILM SIZE: 3 \)hr\^ TECHNICAL MICROFORM DATA REDUCTION RATIO: l^X IMAGE PLACEMENT: lA (\\p\ IB MB DATE FILMED: Q-'T^O ^-S TRACKING # : _ INITIALS: V(h FILMED BY PRESERVATION RESOURCES, BETHLEHEM, PA. ^/ ST. .■9-/ '^ CJl 3 3 Q) O >> lOQ Q o :^ en Z < X OPQ ^ ::d N CO CO (Jl OOM o o m CD O CO X < N X ISI o: '>■ ^ 1-: > >^ .-9^ ^ J^A ^^. <^ '4t ^A Ol °^ ^ .^^^ ^^C^' ^^V" >^^ > in O O o en O r^^^^^%^ io III: 00 cs 00 b K5 io K3 In l.O mm 1.5 mm 2.0 mm AB DEFGHIJKLMNOPQRSTUVWXYZ abcd«lghi|klmnopqrstuvwKyzl234 567890 ABCDEFGHIJKLMNOPQRSTUVWXYZ abcdefghijklmnopqrstuvwxyzl234567890 ABCDEFGHIJKLMNOPQRSTUVWXYZ ' {hijklmnopc 12345678« abcdefghijklmnopqrstuvwxyz B90 2.5 mm ABCDEFGHIJKLMNOPQRSTUVWXYZ abcdefghijklmnopqrstuvwxyz 1234567890 ^o .< t <^ V 1^ ^^ ?cP '^o ^^ s.% ^ f^ f^ 4^ 4^ t*« *^ i. 1= ^ i. m H 31 O O ■o m -o OLl"o > C o> I TJ ^ A^ O 00 m 3D m Av *' *#^ c,^ ^1 ev ^- »— » ro CJl o n 3 £0 =■0 3i PV '^^^-r:- ■■? 1^ Colujnbta (Bnifteisftp THE LIBRARIES f V'- '%■ '! r I ^* ^*^ I af I ■ M •■ If TTT ra ' nr - - w 'J I 1 . M /\r .. PLAIN FACTS REGARDING THE Attempted Destruction OF THE Dressed Beef Industry, The following letter was written tt) L. J. Seargeant, February 11, 1886, in reply to his notification that it was proposed to revise the Cattle and Beef Bates: On April 11 and 12, 1883, we were invited to appear before Com- missioner Fink and furnish full information of the expenses attending the prosecution of the business of prt^paring and shipping dressed beef to New York, which we did to that ofl&cial's expressed sat- isfaction. The question then submitted to the Trunk Line Pool was how to fix rates so that the man who buys in the East- ern market dressed beef, should pay the same price per pound, whether the article was shipped fiom Chicago or dressed in New York from cattle shipped alive from the A\ est. The palpable question of the right of the railroads to thus absorb any advantage belonging to the dressed beef shippers fi'om improved methods, or from the advantages of conducting slaughtering in the West as against the East, was not considered. Nothing was said then about ' ' tenta- tive," or trial rates; but, on the contrary, the inten'ogation was ex- pressly full and thorough, for the purpose of removing uncertainty about the basis of future rates; and when, in 1884, Commissioner Fink submitted the question for arbitration to a board consisting of the pool arbitrator (who in this case was Judge Cooley), G. F. Swift and S. W. Allerton. The decision of this board it was expressly stated (in the articles of submission), was to be final On November 7, 1884, Judge Cooley announced his award in a letter to Commissioner Fink, T saying: *' Agreement, however, was impossible, and Mr. Allorton and Mr. Swift are about equally dissatisfied with the conclusion. / believe it to be just.'" On the 8th of December, 1884, the rates fixed by the award were put in force, namely: 70 cents per 100 lbs. on dressed b«>ef and 40 cents per 100 lbs. on live cattle, Chicago to New York, and we were compelled to submit to the same. We learn that the following was adopted at a meeting of the Trunk Line representatives in New York, last December, regarding the rela- tive rates on live stock and dressed meats. *' Whereas, dissatisfaction having been expressed by Live-Stock shippers at the basis upon which dressed beef and dressed meat rates are at present made: ' ' Resolved, That the Commissioner be requested to reconsider the arguments upon which the present differences in rates are established, to invite further argument from the interested companies and live- stock and dressed meat shippers, and to decide what relative rates so fixed shall be observed tentatively by all companies concerned for a period of three months from March 1, 1886." We feel that it would be useless for us (even if the time were not inadequate) to attempt to furnish arguments or data ihat would have any weight with the Trunk Line Pool, as this proposed revision of rates is based upon the ''dissatisfaction' of "Live Stock Shippers." It occurs to us that such a ' 'dissatisf a(5tion' ^ and assumt^d loss of profit to the live-stock shipper may be as well if not more justly claimed by the dressed beef shipper, whose losses in New York especially have been heavy and continuous ever since business was opened there. We beg to say that we object also to entering arguments on a question which is only to establish a "tentative" rate for three months, as proposed by the Trunk Line Pool. Smrh a remarkable scheme could only result in demoralization and uncertainty. Moreover, the dressed beef interest has always suffered additional loss whenever the (pestion of relative rates of dressed beef and live- stock have been "adjusted" by the Trunk Lines, namely, August 28, 1878, the dressed beef rate was made 50 per cent over cattle; June 13, 1879, the rate was made 60 per cent over cattle, and December 8, 1884, it was made 75 per cent over cattle, and the cause of these con- tinual advances was always the ' ' dissatisfaction ' ' of the live-stock shippers. The award of December 8, 1884, was severe upon us, but we submitted to it, because we felt we were bound to submit. C'er- tainly the right of appeal from the award rested with the dressed beef interest, who were the losers, and not with the live-stock inter- est which was benefited. The spirit and intention of that award was not carried out for a day by the roads toward the dressed beef inter- in CO "5^ 3 est. Large sums of money are justly due as overcharges to all the dressed beef shippers, caused by the secret cuts on cattle rates to favored paiiies. It would be well that the Trunk Line Pool would see to it that these settlements are made in good faith by all the roads with both dressed beef and cattle shippers, before proposing a new "tentative" rate, which at best can only offer superior facilities for further cuts. We consider it a breach of faith for the Trunk Lines to attempt to so lightly set aside the rights of the dressed beef ship- per. Additional large sums of money have been invested in the busi- ness on the supposition that rates were fixed, until the value of the plant for the purpose of preparing, shipping and selling dressed beef equals or exceeds the value of the Stock Yards and the Eastern slaugh- ter houses competing for the same business. We say this fact should be recognized, notwithstanding that Chicago owns one, and New York, Philadelphia, Pittsburgh and other cities the opposing interests. We want nothing unfair on either side. We want justice and fair play for Chicago enterprise, and for our legitimate business. We will not submit to any further discrimination and extortion, nor will we consent to a tentative rate. Such a rate we consider to be aimed at our destruction, for if we do not close our doors after a three months' "tentative" rate, it is clear that the "dissatisfaction" of the "Live Stock Shippers " would still continue to influence the Trunk Line Pool to further discriminations until the dressed beef industry was slain. We would suggest to the gentlemen investigating this question to take the incubus of the Stock Yards off the backs of Live- Stock men if they really wish to find a solution of this difficulty. We regret to be obliged to take this position, but we see none othei open before us: and we sincerely hope, in view of the interests your road, Chicago and the beef consumers of the country have in this industry, that you will be able to so present the case to the honorable gentlemen who are to pass upon the matter that they may be moved to refrain from committing this premeditated injustice. We shall be glad to assist in the consideration of the proper rates on Live Hogs, Hog Products and Dressed Hogs — also on Live Sheep and Dressed Sheep — whenever desired: also upon relative rates of Live Cattle and Dressed Beef, provided the cost of hauling these articles be considered, and the roads will agree with the shippers to be boimd by the findings of the investigation or arbitration for an agreed period, ind provided the overcharges resulting fi'om cut cattle rates are first |)aid. Youis respectfully, Armour &> Co. February 19, the above letter was given to the press, the exec^ I ntive committee on the 18th at New York, having resolved to advance rates taking effect March ], 1886, as follows: New York Boston Albany Philadelphia Baltimore and Washington. Buffalo and Pittsburg Cattle. ^Hoffsj Sheep. 35 35 28 32 20 30 30 28 28 27 17J 45 45 36 43 41 25 Dr. Beef Dr.H'gs Dr.Sh'p 65 r.5 52 m (J2 35 00 00 48 52 51 30 90 90 72 88 87 50 Commenting on this the Nnv York Times of February 20, under the heading " Kaising the Price of Meat/' says: The Executive Committee of the trunk line railroads has decided that the people of this city must pay higher prices for meat. At a meeting held on Thursday last the freight rates for live-sto<5k and dressed meat from Chicago to New York were greatly advanced. On and after March 1 these rates will be from 40 to 100 per cent higher than thev are now. New rates have been fixed for live and di-essed sheep and hogs, as well as for live cattle and dressed Ijeef, but it is very plain tliat the movement is one for the suppression of the trade in dressed beef. At present the rate for the transportation of live cattle is 25 cents, while for dressed beef it is 43^ cents. The dealers in dressed beef have been compelled to pay 74 per cent more for the transpoi-tation of their meat than the stock yard men have paid for live cattle. Hereafter the rate for live cattle is to be 35 cents (an increase of 40 per cent), but the rate for dressed beef is to be 65 cents (an increase of nearly 50 per cent), so that the discrimination against dressed beef will be measured by 85 instead of 74 per cent. Our dispatches from Chicago say that the dressed beef shippers regard this addition as an attempt to drive them out of business, and that they will seek justice in the courts as well as in Congress. The greatest interests to be affected here are those of consumers. The trade in Chicago dressed beef has grown rapidly. Last year the dressed meat of 1.000.000 cattle that ha(l been shipped from Chicago in refrigerator cars was consumed in thf^ East. If the new rates do not prevent the continued shipment of this meat they will raise the price of meat in this market, for the consumer will pay the additional cost of transportation. If they do drive the dressed beef men out of the business, they will cause a still greater incrc^aseof price, and deprive Eastern consumers of all the advantages that attend competition between the two systems of supply. Dealers say that the new rates will cause an advance of from 2 to 6 cmU a pound on beef, and of from 3 to 8 cents a pound on mutton, AEMOUR & CO. ON THE RECENT RATES MADE BY COMMISSIONER FINK. Chicago, Febrviary 28. — [Editor of the Tribune.] — The New York Times in discussing February 20 — in an editorial headed ' ' Raising the Price of Meat — " the effect of the proposed increase of rates of live stock and dressed meat from Chicago to New York by the Trunk-Line Pool, showing, among other things, that the price of meat in the New York market must be greatly increased, says: ' ' If the new rates do not prevent the continued shipment of this meat they will raise the price of meat in this market, for the consumer will pay the additional cost of transportation. If they do drive the di'essed beef men out of the business, if will cause a still greater in- crease of price, and deprive Eastern consumers of all the advantages that attend competition between the two systems of supply. ' ' The following questions are then propounded: ' ' Perhaps the officers who have undertaken to raise the price of meat in this city can account for their action in a more satisfactory way. If they have any good reasons for their course, they should say what they are. Why have the rates been advanced ? " Immediately Mr. Fink replies to the article in a letter of the same date. Mr. Fink is the commissioner of the Trunk-Line Pool, an asso- ciation of railways owning and controlling all the lines of railway transportation from the West to the East, and its purpose is to pre- vent competition and to enforce to the fullest extent the odious doctrine of the railways that they are entitled as a right to ' ' all that the traffic will bear. ' ' Mr. Fink is selected by the representives of the Trunk Lines to administer the affairs of the pool because of his distinguished ability as an expert to accomplish its i)urposes. As such commissioner he has power to fix rates, and as arbitrator, his decision is final as to rates and each road' s proportion of traffic. He is vested with power to enforce his mandates. He is the dictator of common carriers, and the traffic of the nation is subject to him. In his reply to the New York Times Mr. Fink says: * ' The principle upon which the relative = rates have now been determined is that the cost of transportation on a pound of beef from Chicago to New York, shall be the same whether the cattle are slaugh- tered in Chicago or slaughtered in New York. ' ' This is a complete change of base from the Commissioner's former position. April 11 and 12, 1883, Mr. Fink called the live-stock ship- pers and dressed-beef shippers together in conference with the repre- sentatives of the Trunk Lines for the purpose of fixing permanent rates on live cattle and dressed beef. At that meeting he announced the principle on which the rates were to be^fixed, as follows : "We are to consider how to place the dressed beef and live-stock « shippers upon an equal footing, so that a man who buys in the Eastern market dressed beef that is shippeil from Chicago as such, and dressed beef that is derived from live-stock which is shi]>ped from the West and slaughtered in New York, will have to pay the same money per pound. " Now the Commissioner says: "The railroad companies are now acting upon the correct principle of neutrality between both interests, and can readily sustain their position before a legislative or judicial inquiry. ' ' This is a confession by the Commissioner that his position in IHS'fi Was illegal, and he would now have the public understand that the railways have abandoned that position, so that hereafter they would occupy a position of neutrality. This declaration of neutrality sounds well, but examination shows that while compelled nominally to aban- don the position taken by him in 1 883, he has fixelan the Commissioner has fixed them at 85 per cent over live-stock. How does this accord with the Commissioner's protestation of neutrality, and his statement that the cost of trans] )orting the beef shall be the same whether the cattle are slaughteretl in Chicago or New York ? In this connection it is suggestive that his new rate is susj>iciously close to the one he claimed ought to be fixed when he oj>enly declared the right to compel the Eastern consumers to pay the same price per pound for beef, whether it was slaughtered in New York or (^.hicago, regardless of the cost of transportjition. Let the public understand that the change of "}>rinciple" aniiouiiced by Mr. Fink has not caused him to abandon his ])nrpose to discrimi- nate against the dressed-beef industry, and to swell th«* dividends of the stock yards and abattoir companies. Mr. Fink would have the public believe that under his new "principle," when the cattle shi}>per pays 35 cents on his live cattle, gross weight, he ri^ally i^ays r>5 cents a hundred on the net produce of tliose cattle in the form of beef at New York. Let us see if this be so; 40,000 pounds of live cattle At 35 cents equals $140; live cattle yield an average of 57 per cent dressed beef; 57 per cent of 40,000 equals 22,800 pounds; 1140 freight on 22,800 pounds net produce gives a rate of 61 j*o cents per 100 pounds from Chicago to New York; but the hides, tallow, hoofs, heads and offal also were brought through with the net beef for $140. The live- cattl&man has landed them in New York free. The dressed-bt*ef ship- per slaughters at Chicago, and forwards his net product, 22,80l) pounds, to New York at 65 cents per 1 00, equal to $148. 20, and still has the horns, hides, tallow, heads, hoofs and oflfal, which also go East, and upon which he must pay full tariff of 30 to 35 cents per 100. This, then, is the way Mr. Fink's new principle works: He pro- poses to carry a whole steer for the live-stock man for the same money he charges the dressed-beef shipper for half a steer — i. e., the net dressed beef, and fiu'ther invites the dressed-beef shipper to forward the remaining half of his steer at tariff rates! Mr. Fink's assertion that the railroad companies have no right to aid one party in destroying the business of the other can not be accepted as an honest statement in the face of the rates proposed to be exacted. What is the record of the roads on the proposition that they have no right to aid one party in destroying the business of the other? Will he say that under his control and supervision the railroads and theii* copartners, the stock yards, have not waged relentless war against this industry since it was first inaugurated? Will he deny that the "even ers' ' who gorged themselves on the railroads' and butchers' life blootl are not now the stock yards and abattoir owners and the live-stock agents of and the heavy shareholders in the trunk lines? Will he deny that it is the mighty influence of these stock yards and abattoirs which so pursues, cajoles, and threatens the Trunk Lines that th;» able commissioner is obliged to explain why the common carrier rate on dressed beef can not be fixed on that carrier's proper recompense for service rendered, but, on the contraiy, there must be an extra tax or unearned rate for the sole purpose of making the dressed beef business impossible ? Mr. Fink makes a feeble attempt to defend his course as a mt^thod of defeating monopolies. There are no patents on any of the appli- ances connected with the dressed beef business. The di-essed-beef shipper does not control the consumer. He can not limit the produc- tion of cattle. From the natui'e of the business he can create no monop- oly. The only monopoly connected with the business is the carrvinor of dressed beef to the Eastern cities, which is done hy the railroads which Mr. Fink represents. The ingenious scheme to force dressed beef from the market has been, and is, to make secret cuts or rebates to cattle shippers while professing to maintain the agreed relative rates. The plan is to be made simpler by making separate instead of relative rates, thus permitting the cattle rates to be cut while the dressed-beef rates can be held firm. Mr. Fink points to the rates on dressed beef as having been at one time $1 per hundred, then 90, 80, 75, 70, and March I. to be 65 cents. This sounds extremely well to the general public and leaves the Com- K H It i '^ missioner in the graceful pose of ]>ul)lic benefactor. Will he go further and tell what the secret rates on live cattle were during the same period ? Mr. Fink attempts to show that the increased rate makes little difference in the price paid by the Eastern consumer. If the dressed beef industry is crippled by the actions of the railways the price of beef in New York will advance to the extortionate price demanded and obtained when the consumer was at the mercy of the stock yard and abattoir rings. How does it strike the general public to see a legitimate industry so betrayed and robbed because the bringing of dressed beef iuto New York Citv hurts the abattoir and stock vard rings, and makes them sell meat at a reasonable price instead of at the extortionate figures de- manded and obtained before Western dressed !)eef came upon the market -t With the past record of the pool management are we to be- lieve in Mr. Fink' s neutrality ? In the face of repeated violations of compacts, rates, agreements, awards, are we not to expect that the 35 cent rate on cattle will be secretly cut, as it always has been, while the prohibitory rate on dressed beef will be exacted ? When Mr. Fink decides that fair rates on both live stock and dressed beef shall govern without reference to stock yanl dividends or abattoir profits we shall begin to believe in his neutrality. Until then we are forced to regard him as the exponent of methods for perpetuating stock yard and abattoir combination to raise the price of food, and the would-be executioner of the dressed-beef industry, which has cheapened food to the consumer and stimulated cattle raising on the ])rairies. Armouk & Co. LETTER OF G. F. SWIFT, GIVINCi A HISTORY OF THE CATTLE RING. Chicago, 111. , February 23, 1 S86. — Editoi^ of the TrPnme : I no- tice in your issue of Saturday, February 20, a letter from 8. W. Al- lerton, and as Mr. Allerton cuts a large figure in the Eastern stock yards monopoly, and has given you his side of the question and has made some reference to me, I feel justified in answering the same. August 24, 1878, the freight rate on dressed beef was made once and 50-100 the rate on live cattle. A railroad meeting was held at Cleveland in December, 1878, at which a move was made by the New York Cen- tral and Pennsylvania Railroad interests to advance the pro rate rate on dressed beef to once and 00-100 the live cattle rate. This propo- sition was opposed by L. J. Seargeant, who was then, and is now, traflic manager of the Grand Trunk Railway, and is now also Vice- President of the Chicago & Grand Trunk Railway. I was at that time strongly importuned by Mr. Allerton and others interested with him in the perpetuation of the Eastern stock yards, to waive my ob jection to the dressed beef rate Inking made once and ()0- 100 the live cattle rate, but as I did not yield to ^Ii*. Allei-tons impoilunities and as Mr. Seargeant would not consent to the dressed beef rate l^e- ing made higher than once and 50-100 live cattle rate, the said rate of once and 50-100 was continued, and the meeting adjourned. At a railroad meeting at Commissioner Fink's oflice in New York City, June 13, 1879, on the motion of J. H. Rutter, of the New York Cen- tral Railroad, the diessed beef rate was made once and (iO-KHUive cattle rate. In April, 1885, there were issueil fi'om the ofiice of Thomas C. Moore, joint agent of the east-bound pool from Chicago, a series of inteiTogatories to be answered by live cattle and dressed beef shippers. The said interrogatories were answered and returned to Mr. Moore, who forwarded them to Commissioner Fink at New York City. The cattle shippers and dressed beef shippers were invited to meet the railroad representatives at the Windsor Hotel, New York City. April 11, 1883, and discuss the relative * rates of freight to be charged on live cattle and dressed beef. This meeting was very largely attended by members of the Eastern stock yards ring, who were granted special privileges in said meetings. Two meetings were held on April 1 1 , and two meetings on April 12, at which the dressed beef shippers fully demonstrated that, in justice, the proportionate rate on dressed beef as compared to live cattle should be reduced, but Commissioner Fink, leaving out of consideration the fact that Chicago dressed beef was at that time selling in New York City at about J cent a pound less than home dressed beef, recommended to the trunk line committee a pro rate advance on di*essed beef as compared to live cattle, which recommend- ation the committee did not adopt. Within two weeks following our meeting at the Windsor Hotel I was interviewed by a representative of the New York Central Railroad and of T. C. Eastman, the cattle shipper, who now is a large abattoir owner of New York City, who said that Mr. Eastman and other New York cattle shippers did not wish to array themselves in a bitter fight against the Chicago dressed beef shippers, and if Annour & Co. , Ham- mond «& Co. and Swift & Co. would cease shipments of dressed beef to New York City and west of the Hudson River, the freight question would be permanently dropped, but that unless dressed beef shij)- ments to New York City and west of the Hudson River were discon- tinued the entire strength of the New York cattle shippers, the New York butchers, the Eastern stock yards interests, the New York Cen- tral Railroad and the Pennsylvania Railroad would be combined against the Chicago dressed beef interest until its destruction was ac- complished. 10 11 % , '• ^'^ : Pr J I answered the representative that I was under contract to ship beef to New York City and west of the Hudson River, and that I should endeavor to caiTy out my contract whatever might be the re- sult. In October, 1884, another arbitration of freight rates was forced upon us by the railroads, at which time a proper subject for inquiry, viz. : "The Cost of Transportation to the Railroaers received an enor- mous toll from the trunk lines for every car-load of live stock that was shipped to the seaboard, whether shipped by themselves or others. This outrageous monopoly, of course, made colossal fortunes for the few, at the expense of the many, and the officials of the railroads came in for their share. ' ' OPINIONS OF THE PRESS. Evcninq Journal, February 21. ATTACKING THE DRESSED BEEF INDUSTRY. The arbitrary action of the Trunk railroad lines in advancing the rates for transporting dressed beef, is wrong from every point of view. The new rates, which are 50 or 00 per cent above the old ones, were adopted for the purpose of driving the dressed beef shippt^rs out of business, in order that the shippers of live cattle and those who own cattle-yards and slaughtering-houses at the East may make a gi'eater profit. It is, in this respect, a direct interference by the railroad companies with an important department of the general business c»f the country, to destroy one branch of enterprise for the benefit of another branch of enterprise. It proceeded from interested motive- on the part of the railroad capitalists who made the order. They own I)roprietary shares in live cattle enterprises, the value of which was being impaired by the success of the dressed beef industry. It will compel the people in the Eastern cities to pay a higher price for poorer beef. It is a wanton attack on Western interests. Western enterprises and Western methods that should awaken the resentment of AN'estern people. The increased profits which Eastern railroad capitalists will derive from their cattle-yard and slaughter-house proi>erty will be in the nature of blood money extracted from the people. The dressed beef shippers are yet uncei-tain what coui-se they shall pursue. A very large amount of money has been invested by them in abattoirs, in refrigerator cars and in other equipments for use in theii- business. If they should abandon the production and shipment of dressed beef, their losses in useless plants would be very gi'eat. Thert- was no extraordinary profit at the best in preparing and shipping dead meat. But it was becoming a profitable industry, and was growing in extent, with the promise of considerable profit in the future. Either way, the increased rate i.f transportation for di'essed beef will come out of the cattle raisers, the farmers or the ranchmen, in the end, as the producers always suffer from the extortions of monoi>oly. If the dressed beef shippers should go out of business, it will leave an oversupply of live cattle, which will cause a decrease in their value. If they should continue in business they will be compelled to pay less #% 14 15 for cattle in order to make up for the increased freight exacted by the railroads. It is the man who raises the cattle at the West and the people who eat beef at the East who will be the sufiPerers from this advanced policy of the railroad trunk monopoly lines. THE DRESSED BEEF WAR THE SITUATION PRACTICALLY UNCHANGED. Evening Jouimal February 20, 1886. There seems to be no change to-day in the war on drensed beef. 'The dressed beef men, however^ are not going to lie down and submit •without making a vigorous fight, not only in the States, ivherever it •can be done, but also in Congress and in the courts. They believe that the discrimination against the di'essed beef interest is unjustifiable :and unreasonable, and cannot be upheld either in law or equity. They •claim that the railroads are already charging them more to carry fifty ^\e pounds of dressed beef to New York than they charge the live cattle men to caiTy 100 pounds. There is no doubt whatever that the present acticm is an attempt on the part of the live cattle shippers, assisted by their allies, the railroad officials, who are personally inter - •ested in stock yards, stock cars and termini abattoirs, to crush the dressed beef business. The roads have, it is claimed, for a long time acted in bad faith with the di-essed beef shippers by charging them high rates of fi'eight, and giving the live cattle shippers large drawbacks. This is seen, say the dressed beef men, in the ain'mm which has brought the present action, and they say further that they can not Jind will not submit to it any longer. They claim that by their improved meth *B>.^ » rj^; .j ,M yy- •* > • -K*^ 16 17 ri- tax for the express purpose of preventing their proteges from being^ injured by the enterprise of those who would feed the people more cheaply than before. In so doing they have carried the doctrine of protection to a length which its political advocates have scarcely dared to plead for, however much they may have been in favor of it. They profess to regard it as their duty to protect the shippers of live-stock to the East from the eifects of competition by the slaughterers of the West. They say, in effect, to the residents on our Atlantic seaboard that the latter must pay a price for meat whicli will permit the same to be supplied on equal terms by those who kill the animals at the East after having paid toll to the live-stock eveners of the coimtry. In other words, they are committed to a policy which is more offensive than trades' unionism in its worst form, and has not even the same apology as has that for its preservation. They seem to feel that the evener of live-stock is an eminently respectable man (which has never been called in question), and for that reason they cannot consent to have him abolished. And so these "common carriers" insist upon charging nearly 50 per cent more for the transportation of the beef as dressed than they want for carrying it on the hoof, though no one can deny that the ani- mal is a much more um*uly and unwieldy thing Ix^fore death than after- ward. We gave the figures in The Tribune of yesterday showing that the charge is 52 cents for hauling the same num])er of pounds of dead weight both ways against only H5 cents if the loail be alive wh(»n it begins the journey eastward. They do not pretend that any equivalent is rendered for the exaction of the extra 17 cents, nor can they prove any loss of business as an excuse therefor. The hide, horns and tallow of the animal may remain behind, while the meat goes forward, but a large pai*t of the first will ultimately be shipped in the shape of leather, and the last as soap or ' 'butter, * ' while even the entrails go to the sea- board arid thence to Europe under the name of ' 'casings" for sausage- meat. It may be added that the freight both ways on the tinned plate used here for canning portions of the carcass, and the transportation charges on the fertilizers which are manufactured from the oft'al and then sent East, fully make up any little differcuice remaining, so that the railroad actually loses nothing in the shai)e of business by the slaughtering of the animals here instead of at the seaboard. It thus becomes a merely vexatious imp(»sition which has no other excuse than the wish to i)rotect certain interests for which th(5 manager of the rail- road, in his capacity of common carrier, has no right to have any care or concern. It is no more of his business whether or not those inter- ests are crowded to the wall to give place to others than it is to inquire how the welfare of the man in the moon will be affected. A SUICIDAL POLICY. Pittsburgh Commercial Gazette, February 22, ISSG. The railway corporations could not have adopted a more effectual method of convincing Congress and the country of the absolute neces- sity for placing them under Government restriction than they have done in arbitrarily and outrageously discriminating against the ship- pers of dressed beef. The Trunk Lines interested have agreed (the shippers of dressed beef charge that they have "conspired together") to increase the rates to such an extent that the effect will be to destroy the dressed beef business altogether. As a consequence, the only recourse which those engaged in that industry^have left to them is an appeal to the courts and to the law-making power, which thej propose to make as jDromptly and vigorously as possible. The beef -packing interest has grown to very large dimensions, and it will not be crushed out at the mere dictum of a railway pool. That the consumers of beef all over the country, and especially in the popu- lous cities of the East, will give their moral support to the packers and shippers in their conflict with the raih'oads is not to be doubted. Not only is the health of the public deeply involved in this matter, since the beef can be shipped to the point of consumption in much better condition when dressed than while on the hoof, but the tortures that are saved to the animals is an additional reason why the business should be fostered and encouraged. The live-stock interests of the AVest, aided by those who control the stock yards at various points, are alleged to be at the bottom of the so-called conspiracy. The rate now charged for dressed beef is 85 per cent in advance of the rate charged for live-stock, and the argument of those engaged in beef packing is that this discrimination is imposed not for the purpose of earning money for the stockholders, but to force the packers into bankruptcy. Suits will be instituted at once, and in the light of a number of recent decisions in the State Courts, there is not much doubt that, if the charges can be sustained, the offending corporations will be mulct in heavy damages. In the meantime every influence will be brought to bear upon Congress td pass the CuUom Inter- State Commerce bill. A BIT OF HISTORY. Chicago Times, February 22, 1886. The motives of railroads in making tariffs and their disinterested efforts toward equalizing adverse interests — vide Commissioner Fink's late letter regarding the causes for advancing the dressed beef rates — will always bear inspection. Probably no more pertinent instance of . i. /Jif fJir ,.^Jfr.-^y rt-;-^^!^^!'-^,-* \. T^^ ^^ '\ ' ^f-. fl, i 18 the manner in which railway officials may be induced to lend them- selves to the schemes of outsiders, and discriminate as between parties in the same industry, could be adduced than tliat of the old ''evener pool." Its history has been published in this paper, and it was an infamous one, a plan by which the railroads deliberately gave to a trio of capitalists the power to levy a tax of $15 a car-load on every car of live-stock originating west of Buffalo and Pittsburgh, and shipped to the New Yoi'k market. The formation of this pool was due to the fact that the railways participating iii the business — the New York C-entral, Erie and Penn- sylvania lim^s — in active competition for the traffic had suffered losses, and with the idea of fortifying themselves they deliberately entered into a scheme that virtually turned the control of the business over to three outsiders. This trio wen^ the principal buyers in the West, and owned or controlled the stock yards at Jersey City, Buffalo, Pittsburgh and New Y(jrk. They were supposed to direct tlie shipments from the West over the three roads mentioned in the proportions agreed upon, and in return were to and did receive from the lailroads $15 for each car delivered at their stock yards. The natural result of such an out- rageous system followed. Every live-stock shipj)er in the country was at their mercy. In any capacity, that of buytT, dealer or shipper, they were enabled to crowd out any one not in the ring, their bonus, rebate or whatever it may be called, of $15 a car giving th«»m an ad- vantage that shut out everybody else, while as eveners of the traffic all they had to do was to dire(;t the shipments according to the divis- ions agreed upon and gather in the toll of $15 paid over to them by the pliant roads. It is almost beyond belief that such a system as this could obtain for any length of time, but it lasted and was in full effect from June, 1875, to the summer of 1879, when the ring was broken up by threatened congressional action. The only excuse or reason given by the ix)ads for entering into the combination was that they deemed it best to enter into such relations in order to maintain steady rates, which they had been unable to do before allowing the formation of the pool. The illustration is merely given to show that the motives behind the action of the railway officials, pertinent at this time in the dressed beef and live-stock controversy, cannot always be determined by the reasons they give to the public. When the inside history of the present move shall have been uncovered it will be found that stock yard interests are more concerncni in the making of the rates than any desire to impartially adjudicate between the live-stock and dressed beef traffic. 19 Neiv York Times, February 24, 1886. Armour & Co.'s open letter seems to call for further explanations from Commissioner Fink, concerning the rates on dressed beef. Their figures show that those rates have changed from time to time since 1878, so that they have been at first fifty, then sixty, and then sevent\ - five and are now eighty-five and two-thirds per cent more than the rates for live-stock, and that they are not fair even upon the Commis- sioner's "principle"' that the rate for a pound of dressed beef should be the same when the beef is carried in a live animal that it is when the beef is carried as beef. The Commissioner showed an apparent desire to maintain both branches of the business by means of railroad rates, and declared that railroad companies had ' ' no right to aid one party in destroying the business of the other." It certainly has no right to protect one branch of this business at the exj^ense of the i>eo- ple, simply because railroad men and railroad companies have large sums invested in stock yards and abattoirs. But what right has a railroad company to interfere with the beef trade for the purix>se of counteracting the results of legitimate competition ? As a common carrier it should take the fi*eight offered by both parties and can-y it at fair rates, without any anxiety about the fortunes of either. But if the railroads themselves, and the men who control them, have capital invested on one side, they will impose rates for the benefit of that side. COMMISSIONER FIXK ON "BEEF. " Chicago Tribune, February 26, 1886. On the principle of "hear both sides" we print in this issue a let- ter from Commissioner Fink in reference to the rates charged for the transportation of dressed beef by rail from the West to the Atlantic seaboard. And we call attention to it as a specimen of special pleading which is so strongly "special" as to defeat its own intention. He ^vTites as if it were fair to make a reduction of five cents per 1(H) pounds from the rates on both cattle and dressed beef that were paid l>efort^ the railroad war, they being 40 and 70 cents respectively. But any one can see that a drop to 85 cents in the one case should l)e accompanied by a reduction to 01^ cents in the other, if the original ratio was a fair one. That would be equivalent to 1*2 1 per cent off both. But the figures we have already printed show that even that ratio is not a fair one to the shipper of the beef, the true way of computing the charge being to find the totil number of pounds hauled lx)th ways for a given quantity of freight that is assessed with the cost. In fact this posi- tion is abandoned by Mr. Fink in his next paragraph, which is devoteii r n /) \'-i V 20 to a stafcement of the claim that the railroad managers regard it as their duty to equalize the competition between the parties who are en- gaged respectively in the transpijrtation of the beef on the hoof and in the di'essed state. No one who has kept track of the controversy thus far can fail to perceive that this is the sole motive for the dis- GAYLAMOUNT PAMPHLET BINDER Monuf octurad by [GAYLORD BROS. Inc. SyrocuM, N.Y. Sfocktoa Collf. COLUMBIA UNIVERSITY LIBRARIES COLUMBIA UNIVERSITY LIBRARIES This book is due on the date indicated below, or at the expiration of a definite period after the date of borrowing, as provided by the library rules or by special arrangement with the Librarian in charge. DATE BORROW£0 OATC DUE DATE BORROWED DATE DUE i i C28<25t)IOOM m^ . 1 I I ,'i ! • ( \ ■ v.; '■fi 0,. D302«12 P69 D302.12 P69 ■ IM ^^^^" facts regarding the attempted destruction of the dressed beef industry* :,/ , '"^k END OF TITLE