VOL. XXIV.
INDIANAPOLIS, IND., NOV. 2,1889.
NO. 44
SOME DETAILS OF A GEEAT WBONG.
The  Low Price of Cattle, How it Was
, Brought About.
The cause for depression in the price of
oattle whioh is under consideration by a
Senate oommittee, is so remote and complicated, as to be somewhat difficult of
comprehension, the method which caused
the decline was of suoh an extraordinary
nature that its effaet is not understood,
and the heresy of overproduction is put
forth instead of the true cause. Faots are
entitled to more consideration than hypothetic assumptions whioh it Is sought
to substitute as a reason for the depression.
It is somewhat singular that as yet no
oattle grower examined by the oommittee
admits overproduction, but all the evidence of this kind comes from buyers.
The cause of the deoline dates back 15
years. There was no pretext for its exercise other than the difficulty in maintaining rates of transportation, and much better methods might have been applied than
the cowardly one whioh was adopted.
From competition between the roads for
the business, or from strife between a few
large buyers for oontrol of the trade, or
from general pressure from all shippers
for reduotion of rates,the tendency downward usually prevails, but regardless of
responsibility for this,- even lf the fault
was all chargable to the shippers, it was
no excuse for the extraordinary method
that was adopted for maintainanoe of
rates.
It is not likely that the parties responsible for the aotion that was taken had
any proper comprehension of the calamity their aotion was to bring upon cattle
growers. If so, it ls not likely they would
have resorted to the scheme whioh they
adopted, and yet considering their reputations for sagacity, they could not have
been wanting in general knowledge as to
the effect that suoh an unbuslness like act
must have upon producers. If the desire
and intent was the shutting out of cattle
producers from the head of the market,by
putting obstructions in the way of their
shipping, and to so arrange matters that
they would have to deal with only a limited number of shippers, and forcing the
producers to sell only to these, they were
eminently successful, for this was effectually accomplished.
The wrong and resulting damage to producers was in lessening the number ot
buyers—substantially for the bulk of
the business for seaboard cities. These
-were reduoed from hundreds to a very
small circle of not over one dozen, and If
the objeot had in view was the financial
ruin of producers, no more certain and
effective method oould have been devised.
Mauy seem to have diffloulty in clearly
. apprehending  what effeots are due to, or
spring from the causes,but there are those
who are familiar with the faots as here
stated.
THE FIRST METHOD AS PRACTICED.
In the year 1873 the competition between
the trunk lines or seaboard roads became
ao severe, that an agreement was made
between three of them, and a limited
number of shippers, that if thelatter
would divide their shipments as directed
by the said three lines, and ostensibly pay
the published rates, that they should be
paid a rebate of $15 per car on all live cattle transported from west of Dunkirk,
Buffalo and Pittsburg to New York regardless of ownership.
Now, estimating that the favored few
-were shipping as owners one-third of all
the cattle going forward at, or previous to
the date of the agreement,(no one familiar
with the matter believes that they were
owners to this extent), the rebate on what
theyaotually owned amounted to $45 per
car load, or about one-half the tariff rates.
One oan readily comprehend the eflect
whioh was that the buyer who was paying
full tariff rates soon ceased business as a
shipper. Nor could any producer go as
formerly to Eastern markets with his cattle. The inevitable result was the concentration of the bulk of the cattle trade
in the hands of the favored few, and
mainly at one point in the West, where
there was hundreds of sellers to one buyer.
The natural result of this sale of privilege
was a deoline in the price of oattle to the
producers. The reduction to producers
was not immediate, but as soon as effect
could naturally follow cause, in a oase of
of suoh magnitude.
The exercise of discrimination in favor
of a few buyers has brought 2,600,000 head
of oattle into a single market per year,
while the trade has remained stationary
at some points and largely decreased at
others.
The enormity of the wrong perpetrated
in shutting out hundreds of thousands of
cattle growers from the open and compet
itlve markets of the East, and giving so
limited a nnmber of buyers the privilege
of fixing prioes for producers, oannot be
appreciated by the general public, only
those who have toiled for years without
return for tffjrt,and those who have been
stripped of a lifetime's earnings, have any
jast conception of the monstrous wrong
that was perpetrated.
The discriminating method we have detailed was ln force long enough to concentrate the bulk of the cattle trade at one
point, and to make the existing opportunity whieh enables a half dozen men
buying at their own price and shipping
alive, dressed, or canned, so large a portion of the whole output of Western cat
tie, long enough to have ruined large
numbers and to have lessened the value
of the output and property used ln cattle
production one half in value during the
last six years, prices having steadily declined since 1882.
It mnst be further explained that the
reason why these few buyers still control
the trade is, that while they had the $45
per car rebate, they were paid millions
with whioh they placed themsslves in
possession of facilities in the way of cars,
packing-houses and appliances beyond the
reach of the ordinary buyer, and had in
addition millions of cash capital with
which to operate and break down all opposition.
Thus we have given an outline of the
causes which not only broke down the
cattle market of the United States, but
finally led up to the passage of the interstate Commerce law by Congress, which
stopped this drawback discrimination ln
favor of the few shippers. As already
stated, however, the outrage had gone on
long enoughjto enable certain parties to
en trenoh themselves with great capital,
by whioh they supplied themselves with
great packing houses, refrigerator warehouses all over the oountry, and lines of
refrigerator cars. With these they took
the other step, and throwing great bulks
of dressed carcasses of beef Into all parts
of the United States, said to the small
buyers and butchers, "take onr dressed
beef, or we will drive you out of the consumer's market." And thus they out off
the hundreds of local markets, and compelled cattle growers to ship their surplus
to their own markets and where they now
buy at their own prioes, because there is
no adequate capital, facilities and competition. This is the situation to-day, and
these are the steps which were taken to
reach it. As the Farmer has before
stated, it seems now that only the embarkation ot new capital in the business
and competition on their own ground
can so ad jast the cattle business as to assure justioe to cattle growers. The immense profits to the great paokers and
dressed beef shippers must oome to tbe
knowledge of capital soon, and induoe it
to compete in the business and beoome
competitive buyers in the markets. These
profits are palpable to all who will reflect,
that while cattle are one-half lower ln
price than formerly, beef to the consumer
is as high as ever.
Written f nr the Indiana Farmer
FABMEBS' INSTITUTES.
The Work Progressing—Efficient Corps of
Speakers    Available—Where   Institutes Will be Held—Opening Institute at Purdue Uuiversity.
As the opening of the Institute season is
almost upon us, the readers of the Fabmer
will be glad to learn what has been done,
thus far, towards inaugurating the work.
Although the work is entirely new in
many parts of the State, the numerous
letters of enquiry and requests for Institutes show a commendable Interest,
and a general desire on the part of farmers
to avail themselves of the benefits offered
by the Institute law. Indications already
point to a "rush" during the midwinter
months.
THE FIRST INSTITUTE
of the season will be held at Pardue University, Oat. 3lst and Nov. lst, (a program
of whioh appears in another column). November is practically all taken for Institute work in the 12th, 10th, 14th, 3d and
lst agricultural distriots, ln the order
named. As but few applications for the
month of December have been received,
and as it will probably be impossible to
grant all requests for January and February, the county associations are urged
to apply, as far as practicable, for dates in
Dacember. We desire to hold Institutes
in about 50 counties this year, and prefer
to go into alternate counties, in order to
secure a more uniform distribution
throughout the State. It will be impracticable, however, to adhere closely to
this plan; and hence, with the approval of
the membera of the State Board of Agrioulture, the order will be largely "first
oome first served." Whenever practicable,
however, the several oonnty associations
of any agricultural district Bhould act
jointly with their member of the State
Board of Agrioulture in arranging for
A CONSJ-CmTVE series of institutes.
This plan would secure an efficient corps
of speakers, and greatly reduce traveling
expenses, in whioh case the $40 apportionment to each oounty from the State Institute fund would more nearly cover all
necessary expenses. To aid the local committees in getting up programs, a full list
of available Institute workers, with subjects, has been prepared and will be sent
post paid on application. This list
speaks well for the
PUBLIC SPIRIT OF INDIANA FARMERS,
as lt is composed very largely of farmers,
horticulturists and stockmen who are
willing—almost without exception—to assist in Institute work without charge beyond necessary expenses. The members
of the State Board of Agriculture have all
promised to assist in the work, and several of them will take charge of the Institutes in their respective distriots. Their
advioe and suggestions .should besought
in all matters relating to Institutes. The
authorities of Pardue University are also
willing to render efficient aid, although to
do so will involve a considerable expenditure of University funds proper, in payment of salaries of the professors and
specialists who may engage in this work.
The professors of the Agricultural Department and the members of the Experiment Station staff will be permitted,upon
invitation of the local associations, to attend Institutes whenever practicable, without charge for actual and necessary expenses. * As the terms of the Institute law
make it necessary to employ
SPECIALISTS IN AGRICULTURAL SCIENCE J
and as specialists from outside the State
would cost $10 to $25 per Institute in addition to expenses, the above offer of the
University authorities is a liberal one,and
the local associations will do well to profit
by it. As stated in a former artlole, the
superintendent of Institutes will give his
entire time to tio work, and attend every
Institute, lf possible, without any charge
whatever to the lccil associations. In
every county where an Institute is wanted
this year, prompt action should be taken,
and notice of same sent to this office, as
well as the member of the S Late Board of
Agriculture. All correspondence relative
to Institutes will receive prompt attention, and further information will be
cheerfully given if desired.
W. C. IjAtta, Superintendent..
Lafayette, Oot. 26 „h.
FAEMKES' IKSTITUTES.
The Tippecanoe Co., institute was held
Oot. 31st and Nov. lst.
The papers read were Increasing profits
in Farming, by Hon. J. A. Mount, Relation of agriculture to other industries, by
W. M. Blackstock, Insects Pests by Prof.
Webster, Farm and City life by Miss Lulu
Davidson, Oar Live Stock interest by Albert Henderson of Lifayette, Experimental Agriculture by Dr. Stockbridge, Sheep
Husbandry, by Henry learning, Erhaus-
-iUvi of Hoils by Arthur (Joss, Sx-lal Culture on the farm, by Hon. Jjb. Osborn,
and Banefits of the Institute by B. D.
Moore.
HOT A BAD BUSINESS AFTEE ALL.
Farming cannot be quite so poor a bnsiness as some of our correspondents would
have us think. We hear of no failures in
it, and we know of many farmers who are
making money. Farther than this, we
know that farmers have no difficulty in
borrowing money, lf they need It for improvements. Bankers are very careful to
whom they loan their money; they do not
take many risks with it, and they are less
afraid of the farmer than most other customers. One of our largest insurance
companies that always has a large proportion of its surplus funds in the hands of
farmers, has this good word to say of the
class: "They are not borrowing near so
mnch money, and what they do get ls in
small amounts. They are paying the interest on old loans promptly, and don't
have to make new loans to pay ofl old
ones. As it is with us, oo lt Is with all the
other money lenders, and this all goes to
show that times are better and the money
-xarkot easier."
CIRCULAB OU STATE INSTITUTE W0BE.
Prof. W. C. Litta.ot Pardue University,
Lafayette, Saperintendent of Farmers' Institutes in the State, has issued a circular,
ln which he offers a number of important
suggestions to all who desire to have institutes held in their counties. Among
the suggestions are the following; Three
15 minute papers are enough for eaoh
session. Interest the ladles and young
people in providing music, etc. Half pf
the papers on the program should oome
from home talent. As an outline for a
program he names the following topics:
Grasses and Forage crops, Feeding, The
Dairy, Household Eoonomy, The Home,
The Farmer and his family, Live Stook-
olasses, Breeds, etc., Cropping and Rotations.
These subjects are merely suggestive,
Theciroular contains a list of persons
available for institute work with post-
offlse address, subj acts, terms, etc The
list, though incomplete, contains 68 names
of persons, more or less familiar to most
of our readers. All who are interested in
this Institute worts should address Prof,
•Latta, for a copy of this circular,