Standard Oil Company; Trusts, Industrial -- United States
S---- was a local butcher. He testified that he was approached by
the agent with a proposition that he should sell dressed-beef. He
refused, and was then informed that he would be broken up in business.
Notwithstanding this threat, he continued to butcher, and made his
purchases of cattle at Buffalo. From the time of his refusal to sell
dressed-beef as proposed, he could not buy any meat from Chicago,
and could not get any cars from the Erie Railroad to ship his cattle
from Buffalo. He was boycotted for his refusal to discontinue killing
cattle.[37] One of the combination, when testifying to this matter,
disclaimed responsibility for the despatch, but stated that he did not
think a butcher should be permitted to kill cattle and at the same time
sell dressed-beef. "He could not serve both interests." "We have no
hesitation in stating as our conclusion, from all the facts," says the
report, "that a combination exists at Chicago between the principal
dressed-beef and packing houses, which controls the market and fixes
the price of beef cattle in their own interest."
When pork is cheap, less beef is eaten. Beef monopoly must therefore
widen into pork monopoly. This has happened. There is a combination
between the pork-packers at Chicago and the large beef-packers. It
began in 1886. The existence of such an arrangement was admitted by its
most important member; and it is found to have seriously affected the
prices of beef cattle, both to the producer and consumer. It was shown
that one of the companies of the Big Four made in 1889 profits equal
to 29 per cent. on its capital stock--which may, or may not, have been
paid in--and this was not the largest of the companies. As to the idea
that other capitalists might enter into competition with those now in
possession, the report says: "The enormous capital of the great houses
now dominating the market, which each year becomes larger, enables them
to buy off all rivals."
The favoritism on the highways, in which this power had its origin in
1873, has continued throughout to be its main stay. The railroads give
rates to the dressed-beef men which they refuse to shippers of cattle,
even though they ship by the train-load--"an unjust and indefensible
discrimination by the railroads against the shipper of live cattle."
The report says: "This is the spirit and controlling idea of the great
monopolies which dominate the country.... No one factor has been more
potent and active in effecting an entire revolution in the methods
of marketing the meat supply of the United States than the railway
transportation."[38] There have been discriminations by the common
carriers of the ocean as well as by the railroads. The steamship
companies exclude all other shippers, by selling all their capacity to
the members of the beef combine, sometimes for months in advance. It is
useless for any other shipper to apply.
Public-domain text, read in full here on John Shaqi.
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