Standard Oil Company; Trusts, Industrial -- United States
"So far has the centralizing process continued that for all practical
purposes," the report says, "the market of that city dominates
absolutely the price of beef cattle in the whole country. Kansas
City, St. Louis, Omaha, Cincinnati, and Pittsburg are subsidiary to
the Chicago market, and their prices are regulated and fixed by the
great market on the lake."[35] This great business is practically in
the hands of four establishments at Chicago. The largest houses have
a capacity for slaughtering 3,500 cattle, 3,000 sheep, and 12,000
hogs every ten hours. When the Senate committee visited Chicago,
it was found impossible to obtain the frank and full testimony of
either the commission men doing business at the Union Stock Yards, or
of the employés of the packing and dressed-beef houses. The former
testified reluctantly, and were unquestionably under some sort of
constraint as to their public declarations. In private they stated
to the members of the committee that a combination certainly existed
between the "Big Four;" but when put on the stand as witnesses they
shuffled and prevaricated to such a degree as, in many cases, to excite
commiseration. The committee reported that the overwhelming weight of
testimony from witnesses of the highest character, and from all parts
of the West, is to the effect that cattle-owners going with their
cattle to the Chicago and Kansas City markets find no competition among
buyers, and if they refuse to take the first bid are generally forced
to accept a lower one.
As to the effect upon retailers, local butchers, and consumers, it was
admitted by the biggest of the Big Four "that they combined to fix
the price of beef to the purchaser and consumer, so as to keep up the
cost in their own interest."[36] They combined in opening shops and
underselling the butchers of cattle at places all over the country, in
order to force them to buy dressed meat. They combined in refusing to
sell any meat to butchers at Washington, D.C., because the butchers
had bid against them for contracts to supply with meats the Government
institutions in the District of Columbia.
The compulsion put upon local butchers is illustrated in the S----
case. The following telegram was sent from the office of one of the
combination at Chicago to an agent in Pennsylvania: "Cannot allow
S---- to continue killing live cattle. If he will not stop, make other
arrangements, and make prices so can get his trade."
Public-domain text, read in full here on John Shaqi.
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