Report of the Packers and Stockyards Administration

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Material Information

Title:
Report of the Packers and Stockyards Administration
Physical Description:
4 v. : ; 23 cm.
Language:
English
Creator:
United States -- Packers and Stockyards Administration
Publisher:
U.S. G.P.O.
Place of Publication:
Washington
Publication Date:
Frequency:
annual
regular

Subjects

Subjects / Keywords:
Meat industry and trade -- Law and legislation -- Periodicals   ( lcsh )
Packing-houses -- Periodicals   ( lcsh )
Stockyards -- Periodicals   ( lcsh )
Genre:
serial   ( sobekcm )
federal government publication   ( marcgt )

Notes

Dates or Sequential Designation:
1st (Aug. 15, 1921/June 30, 1922)-July 1, 1924 to Mar. 30, 1926.
General Note:
Title from caption.

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004886183
oclc - 25936265
lccn - sf 93091682
Classification:
lcc - WMLC 93/1165
ddc - 338.176 U64
System ID:
AA00008545:00001

Related Items

Succeeded by:
Report of the chief of the Packers and Stockyards Administration

Full Text

Ii


REPORT


THE PACKERS AND
ADMINISTRATION.


STOCKYARDS


UNITED STATES
PACKERS


DEPARTMENT OF
AND STOCKYARDS
Woshington D.


SIR: I submit herewith the first report
yards Administration.
Respectfully,

A4
Hon. H. C. WAXJACE,
Secretary of Agriculture.


of


AonICTrIURE,
ADMINISTRATION,
C. September 9, 1922. *
the Packers and Stock-


CHESTER MORRILL,
ssitant to the Secretary.


This is the first report of the Packers and Stockyards Administra-
tion; It covers the period from the date of the passage of the packers
and stockyards act, 1921, on August 15, 1921. to the end of the fiscal
year, Jule 30, 1922. Substantial progress has already been made in
the development of the organization under the act and the accom-
plishment of its purposes, notwithstanding the embarrassment caused
for several months by the litigation instituted by certain commission
men and traders to test the constitutionality of the new statute.
The live-stock and meat-packing industry, taken altogether, is
ore important, if not in fact larger, than any other single class
of business in the whole industrial organization of our country, and
for a long time prior to the passage of the packers and stockyards
not a general impression existed, especially among live-stock pro-
ducers, that conditions prevailing in the live-stock markets and the
meat-packing industry were such that the Federal Ggvernment
should exercise general supervisional authority over the various
phases of this great activity. There had arisen a general lack of con-
fidence, as well as deep-seated dissatisfaction, with reference to the
mannermin which the live-stock marketing machine was functioning.
There were known to be certain specific evils which the legitimate
"dments in the industry disapproved but found it difficult to combat,
a Which apparently could be dealt with only through some disin-


p






ANNUAL


REPORTS


OF DEPARTMENT


(F AGRICULTURE.


'yard
Siar']
and
acldi


is throughout the country. The assurance of open compete
ket conditions and reasonable marketing costs in the live-s
meat-packing industry is the prime purpose of this statute.
fi;ln +i n\ m +^^. Tljntrfttn r n an1 ran n\n T<^" /t / i4i/ II C t1 l _


titni. IA) u r-~~ ix 1 ci.; PttCIUzwn


Agrincuilt
respect 1
( ommnis:
are grar
ment of
effect of
paired.
Secretary
about w


them
been


a


ure. those possessed by
to the enforcement of
sion act in connection
ited also to the Secret
the packers and stocky:
the existing antitrust
Not the least import
y of Agriculture is tha
which there has been s


trom time to time,
unjustified.


even v


the
the
witl
;ary
ards
law
tant
t of
o il
vhen


itive
itock
In
f


Svcolr ec il on e oecreiary o0
Federal Trade Commission with
provisions of the Federal Trade
i unfair methods of competition
of Agriculture for the enforce-
act. On the other hand, the full
"s of the country remains unim-
responsibility placed upon the
gathering and determining facts
uch controversy and publishing
they show that complaints have


THE PACKERS


AND STOCKYARDS


ADMINISTRATION.


The packers and stockyards act,


congresss, was approve
culture is charged w
immediately to (level


of the
der of
gIress,.
1921.
Secret:
activity


amount of fun


th(
and
As
ary
ies.


as a separ
tary, who
nated on


fiscal y
$200,00(
a means
might


ear

of
giv,


the Packe
ate unit of
reports di
September


the organization
law. The first


#or the purpose of I
developed. These p1


1921, Public No. 51, Sixty-seventh


ed August 15, 1921. As the Secretary of Agri-
ith the enforcement of this statute, he began
op plans for its administration. An estimate
ds required to defray expenses for the remain-
ending June 30, 1922, was submitted to Con-
as provided in the deficiency act of August 24.
effective administration, and in order that the
e his close personal attention directly to its


rs and stockyards Administration w
the department under an assistant to
rectly to the Secretary. This officer
6, 1921, and began immediately the
and the work of carrying out the p
work was that of securing competent
handling the different phases of the
hases were naturally grouped into fiv


as


created


the Secre-
was desig-
formation
purposes of
associates
work as it
'e parts:


Administrative.
Law.
Audits and accounts.
Rates, charges, and
Trade practices.


registrations.


This does not constitute a separation of the
is solely a division of administrative labor
needing attention may be handled properly
i .- I n--*^w4 k rw^ JV^/tf-.-lI* w L J- 4./ *1/-. V


work into projects, but
in order that matters
and by persons having


t


N1 1


1


T







pA~lCKEtS


~~ND)


STOCK YAlD)S:


ADMIX ISTRATION .


in the Division of Accounts and Disbursements of the Department of
Agriculture, was appointed chief clerk of the new organization.
For handling legal questions, Judge Bayard T. Hainer, a man of
mature years, a former Federal judge in the State of Oklahoma, who
had also been engaged for a considerable time in the active general
practice of the law, was selected as attorney.
The work connected with the auditing of the books of the various
persons subject to the act and the study and analysis of their ac-
counting systems was placed under the direction of Arthur S. French,
a certified public accountant, who had had considerable experience
of responsible character in public accounting work in the Middle


West.
The
dealers
question
assigned
who hi
lines ai
and in
tions f
The
ing of


duties relating to the registration of market agencies and
at the various public stockyards and the determination of
ns relating to the reasonableness of rates and charges were
dh to G. N. Dagger, specialist in live-stock marketing costs,
ad had considerable training along both economic and legal
nd, having previously been engaged both in live-stock farming
State public activities, possessed highly desirable qualifica-
or this work.
questions of trade practices in the marketing of live stock be-
the utmost importance, Howard M. Gore, of West Virginia, a


lifelong cattle and sheep raise
ford Breeders' Association oj
board of education of that S
interests which brought him
ness methods, and who, in ad


r

t

d


, wh(
Wes
ate,
thor
ition


committee of fifteen of the Ame
in the consideration of plans for t
stock, was selected to handle trade
Provision has been made also for
phases of the work of the Packers
t.i I Ll 1 T* P


) had been president of the Here-
t Virginia and a member of the
and who had banking and other
oughh knowledge of general busi-
, had served as a producer on the
irican Farm Bureau Federation


he cooperative n
practices.
the handling of
and Stockyards
,N...1 .... T ..


marketing


live


certain economic
Administration,
1 Fi T 1 I


unaer tne immediate airection oi0 Cnares Jt. nrana, alner July 1,
1922, as consulting specialist in marketing in the Department of
Agriculture, who established the Office of Markets, later the Bu-
reau of Markets, of the Department of Agriculture, and continued
with it until 1919, since which time he has been vice president and
general manager of a nation-wide commercial fruit and vegetable
marketing organization, in which capacity he has had unusual op-
portunity to familiarize himself from a nongovernmental standpoint
with the commercial aspects of marketing and distribution questions.
The work to be done in the various public stockyards throughout
L1 2J J 1 Jl 1 I


1<







ASSXN AL


REPORTS


OF DEPARTMENT


AGRICULTURE.


Other public


were handled by
the nearest super
time to time for
as require action.
which require mo
visits, but which d
will be placed fro
markets for period


quirements of
understood, w
for similar we
visors, an imy
ceding the pa;
ried out is be
as far as poss
the ground wi
of the matter


ocky
pla
visol
the
A


re
lo
m
ds


the P
then s


ards to


which such men hi


cing them under the sup
, who is required to visit
purpose of giving attend
plan is being developed
tention than can be given


not seem to require per
time to time supervisor
of a month or longer
ackers and Stockyards
uch supervisors will i


)rk. Through
)ortant policy
ssage of the p
uing put into


ibl
th'


is


thereon. In this
complaints recei


As a
visors a
with a
ports tc
parti ci
reports
of deve
in four
be resp
division


means o


the medium of
that it was ind
packers and stoc
execution. Th


Le, of local matters through
out the necessity for formal
in question to Washington
, way unnecessary delays are
ve prompt attention.
,f coordinating the activities


ind giving assurance that they
common and well-thought-out


) Washington once
pated during the
is furnished to all
lopment a plan by
general divisions,
onsible for the con
i. This will be


are
pol


a week all of the


prevlou


the.
whi
each
ductk
in a(


su
ch
U]
of
dd


week,


perv
all
under
Sthe
ition


ad not been assigned
)ervision usually of
such markets from
ion to such matters
whereby in markets
on occasional short


manent sui


)ervisors, there


rs who will remain in the
until the policies and re-
Administration are fully
proceedd to other markets
these local market super-
icated in the debates pre-
kyards act should be car-
is involves the handling,


informal adjustment on
proceedings or reference
before action is taken
avoided and meritorious


pro


LI


'isors.
of the
a divi
work


I


ass


o0 tne van
ceeding in


ous super-
accordance
*


cy, every supervisor re-
activities in which he has
nd a summary of these
There is also in process
markets will be handled
sion supervisor who will
of the supervisors in his
urance of uniform and


proper application of the provisions of the packer
act.
In addition to the supervisors in the various
organization of competent accountants is in process


and


rs


s


stockyards


markets, a field
of development,


with the expectation that specially qualified men will be assigned
at central points from which they can carry on the investigational
work of an auditing character which is necessary to supplement the
activities of the supervisors and to furnish the administration with
information required in order to determine facts as to the reason-
ableness and justice of rates and charges, as well as such informa-
tion as may be desired on the economic phases of the live-stock and
meat-packing industry that may be gathered from a study of the


ste


fS







PACKERS


ANL)


STOCKYARDS


ADMINISTRATION.


meeting enabled the Washington office to send the supervisors
into the field with confidence that they should carry out the
visions of the packers and stockyards act in a more intelligent
than could possibly have been accomplished merely through
respondence. In view of the very great benefits resulting from
conference, other similar conferences will be held from time to
not less often than once a year.


AGENCIES


back
pro-
way
cor-
this
time


SUBJECT TO THE ACT.


The act wen
packers who ar
special formally
provisions. On
by Title III of
had been inquiry
stockyards that
this was among
yards Administ
Up to June
the provisions o
70 cities in 35
public stockvar
stockyards wern
of the stockvarc


t


into


effect


S *~6


nll]


e sllbject to Tit
ty was necessary
the other hand,
the law were not
y, formal deter
were embraced '
the first of the
ration.


30
If
St
d(


1922, it
the act t
:ates, are
markets,
formally


is compani


upon which their stockyar
no date is shown the post
covered in the next annual


immediately upon its passage as to
le II, and no registration or other
in order to bring them within its
market agencies and dealers covered
subject to its provisions until there
lination, and public notice as to the
within its operation. Consequently,
activities of the Packers and Stock-


been


Sa scetalt~inedl


hat 78 stockyards, listed
subject to the provision
and prior to June 30,
posted as required by
es, the places where loca
'ds were posted are set o


ing took
report:


place


after


in accordance


below,
ns of Ti
1922, 6i
law. T
ted, and
ut below


June 30


ar


with


located in
tie III as
) of these
'he names
the dates
7. Where
id will be


Name of yard.


Western Stockyards ........... .... .......
New Orleans Stockyards (Inc.) ........
Miller Union Stockyards ..................
J. W. Patterson Commission Co..........
Suttles, Bragg & Millsaps.............
Augusta Stockyard Co .................. .
Union Stockyard Co. -......-,.. ..........
Union Stockyards Co. of New Jersey......
Birmingham Stockyards Co...............
Brighton Stockyards Co...................
New York Central Railroad Co............
Foust-Yarnell Stockyards... .............-
Pursley Stoc r-ds .......................
Union Stockyard & Transit Co. of Chicago
Cincinnati Union Stockyard Co...........
Cleveland Union Stockyards Co.........
Columbia Stockyards Co .................
Drovers Union Stockyards ................
Union Stockyards........................


*f- 4 4 4 4 -i

* 4 4** 4 -* 4 -

* 4. -* 4 4


1 **-- 1*1**
* 4 H- ft- 4- 4
* 4. 4 4*
* 4 4* 4 4 -:
*.-. 44 4 4
*-------------------


Amarillo, Tex.
Arabi, La.....
Atlanta, Ga....
..... do. ......
Augusta, Ga..
Baltimore, Md
Benning D. C.
Birmingam, J
Brighton, Mass
Buffalo, N. ..
Chattanooga, T
Chicaeo, B.....
Cineinnati, Ohi
Cleveland, Ohic
Columbia, S. C
Columbus, Ohi
Dallas, Tex ...


ity.




- -----------------------4 4- 44

l .. ... ...
0a4..............



:::::::.......::..........


Date posted.


Nov. 1,
Do.
Apr. 1,
Do.
Nov. 1,
Do.
Do.
Do.
Do.
Do.
Do.








ANNUAL REPORTS OF DEPARTMENT OF


AGRICULTURE.


Name of yard.


Marion Union Stockyards Co.


Jos. A. Maxwell & Sons Corn. Co...........
Dixie National Stockyards .................
South Memphis Stoclards ................
Milwaukee Stockyards Co..................
Union Stockyards Co. of Montgomery (Inc.
Moultrie Stockyards ........................
Nashville Union Stockyards (Inc.).........
St. Louis National Stockyards Co..........
Newark Stockyards .................
New York Stockyards ..............
Union Stockyards ........................
Portland Union Stockyards Co.............
Salt Lake Union Stoclcyards ..............
Union Stockyards .........................
Oklahoma National Stockyards Co ........
Pasco Union Stockyards Co................
Peoria Union Stockyards Co. (Inc.)........
West Philadelphia Stockyard Co...........
Pittsburgh Union Stockyards Co...........
Pueblo Union Stockyards ..................
Richmond Union Stockyards Co..........
Southern Stockyards Corporation..........
Union Stcckyards, S. A ....................
Sioux City Stockyards Co.............
Sioux Falls Stockyards Co.............
Union Stokyards Co .......................
Union Stockyards Co. of Omaha (Ltd.)....
St. Joseph Stockvards Co ...................
St. Paul Union Stockyards Co.............
Spokane Union Stockyards Co.............
Springfield Union Stockyards Co...........
Inter-State Stockyards Co.............
Toledo Union Stockyards Co...............
Wichita Union Stockyards Co..............
Patrick Horan & Sons Stockyards..........
The Billings Stockyards ...............
Union Stockyards....................
The Laramie Stockyards..................
Union Stockyards ..........................
The Oregon Shortline Railroad Stockyards.


"*."'.


*.......................



- .. .


*............................

* -. .......


Date posted.


. I
* 1 1 *. *** .* l

* -* I

** ** ,. *
111. .. .

* I
* -. .. }


City.

[Marion, Ohio........
i Memphis, Tenn.......
!. -do..
Milwaukee, Wis.......
Montgomery, Ala.....
Moultrie, Ga.........
Nashville, Temn .......
National Stock Yards,
Newark, N.J l -
New York, N. Y......
I Norfolk Va...........
I North IPortland, Oreg.
North Salt Lake, Utah
Ogden, Utah..........
Oklahoma City, Okla.
Pasco, Wash...........
Peoria, Ill.............
Philadelphia, Pa......
Pittsburgh, Pa........
i Puleblo, Colo..........
Richmond, Va .....
-..3 do....... ...... .. .....
I San Antonio Tex ....
Sioux City, Iowa ....
SSioux Falls, S. Dak...
Seattle, Wash.........
South Omaha, Nebr...
South St. Joseph, Mo..
South St. Paul, Minun.
Spokane, Wash.......
Springfield, Ohio......
Toledo, Ohio.........
.... do.................
Wiihita, IKansas......
IWest Albany, N. Y...
Billings, Mont........
Caldwell, Idaho.......
Laramie, Wyo........
Laredo, Tex...........
Pocatello, Idaho.......


,.* .*...........


The posting
which requires
are defined in
shall register v
the posting, a
shall engage 1
pendency of t
act many marl1
others register
all market ao


Cr


of these yards brings into play the provision of t
that all market agencies and dealers, as these
the act, that are engaged in business in these
ith thle Secretary of Agriculture within 30 day
nd thereafter that no new market agency or


in1
rhe
":4


rem


business x
litigation
agencies a
under prot
cies and


without


ng


involving


nd
est,
leal


t


dealers re
but it is n
[ers in th


registered, and there were on file 4
3,436 dealers and 1,075 market agency
tain that every market agency and d4


on J


he
LfO


;e
unf


;he law
terms
yards
s after
dealer


registered. During the
constitutionality of the
sed to register and many
believed that practically
various stockyards have
e 30 the registrations of


ties. As a means
ealer registered w
1I 1 1" 1


of making cer-
ith the Packers
1 4


Nov. 1,
Do.
Do.
DO.
Do.
Do.
Do.
Do.
Do.
Do.
Do.
May 1,
Nov. 1,
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Mar. 1,
Oct. 31,
Do.
Nov. 1,
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Do.







PACKERS


ANID


ST OCKYARDS


ADMINISTRATION.


charges had
do so.


been filed


by practically


of the


persons


required


GENERAL


RULES


AND REGULATIONS.


The prove
practically
but it was
regulations
and dealers
quirements
fully unde,
o/


visions of Title II of the act with respect
self-operative immediately upon the p
deemed necessary to establish certain
under Title III as to stockyard owners
, to cover certain matters with respect
of the Secretary of Agriculture might
rstood. Consequently, tentative rules


with respect to stockyard


prepared and furnished
gestions and criticism, a:
Portland, Oreg., Nov. 8, 1921.
Denver, Col., Nov. 12, 1921.
Fort Worth, Tex., Nov. 14. 1


owners.


market agencies.


to all classes of persons ii
nd public hearings were hK


*t to packers


were


assage of the act,
general rules and
. market agencies.
to which the re-
not otherwise be
and regulations
and dealers were
interested for sug-
eld as follows:


Kansas City. Mo.. Nov. 15. 1921.
Chicago, Ill., Nov. 18, 1921.


I921.


After full consideration had been given to the informant ion received
through the medium of these hearings and correspondence, the formal
general rules and regulations of the Secretary of Agriculture were
issue(1 on Novemnler 30. 1921. as (ircular No. 156 of the Office of


the Secretary.
At the close of the fiscal
in formal proceedings un
course of preparation,
handling such matters.


1 ear. regulations governing the procedure
der the packers and stockyards act were in
based upon our practical experience in


LITIGATION.


About the
regulations 0
the Federal
traders who
Government
stock vards a
it being assei


tinlne


of the Secreht
district court
do business
from earryi
ct. with speci


rteI


and that the
the authority
yards Admin
trict court a
United States
preme Court
ing, the conm


t(
iof
of


1ry
at
in
ng
al i
~tI i


ht at the act


suance of the formal genera
of Agriculture. a suit was i
Chicago by certain coiulllissi
the C(hi out the )rovisions of the 1
etferenc( to commission men
was unconstitutional as to, s


finition of interstate
Congress. The attor
ration represented th
Ahicago and assisted
i the preparation of 1
the United States.


comilmerce in the an
ney for the Packers
e Government bef<
the Solicitor Genm
the briefs presented
While this litigatior


* S 1 1 1, li


1 rules
institute
on men
a


en]
>ack
irnd
uc.h
(ct e


at
wre


Br


it


exceeded
1 Stock-


ral of
to thel
was p)


lis-
the
Su-
jl(1 -
A


ussion men and dealers. altnougn promising cooperation
^ -* A. -* a


*


I







ANNUAL REPORTS OF DEPARTMENT OF


Court


expressly
of the de
than had
for such
Supreme
Court, th
intention
tion and


AGRICULTURE.


I May 15, 1922, upheld the decision of the lower court,
sustaining the constitutionality of the act and the validity
finition of interstate commerce, which is somewhat broader
been carried in any previous statute, although the basis
a definition had been established by earlier decisions of the
Court. Immediately following the decision of the Supreme
le commission men and traders generally announced their
to cooperate with the Packers and Stockyards Administra-
to comply with the law in every respect.


Certain statutes of the State of Minnesota, passed prior to the
enactment of the packers and stockyards act, vest the railroad and
warehouse commission of that State with authority to supervise the


operations of
traders in tha
State weigher
stockvards ac


the public stockyards and the commission men
t State, to regulate rates and charges, and to main
s in the stockyards. The enactment of the packers


t raised the question of tl


enforcement of these
supervision was mai
per head for State


statutes, and bl
ntained by the
weirrhinr colle


ecal
imt
ctec


live stock marketed in the St. Paul sto(
charge was imposed at other stockyard


was
shoi
and
four


made on behalf of shi'
ild not be allowed. T
Stockyards Administ
id that the railroad a


ppe
his
rat
ndl


rs outside (
caused an
ion of the
warehouse


that its jurisdiction should be maintain
weighing service and the charges there


It appeal
which wa
yards Ad]
act cover
State law
interstate
General o
proposed


and
charge
The
$75.0(
tuted
takin
the I


sh rin
es t


led that the,


was


a quest io1


s considered by the attorney
ministration, who decided thai
ad the whole field involved ii
s were in conflict therewith
commerce. This opinion wa,
f the United States. At this s
to take over the entire weigh
ikage of hogs and absorb t
o the shipper and without i


annual revenues o


I per
uit in
this
(deral
-r '- :


annum fro
the State
action, and


district c(
i-^-. -U


f the


State


4


m these source
court to enjoin
later the corn
:urt to enjoin


and
tain
and


hie validity of the continued
ise of the fact that the State
position of a special charge
1 from the shippers of all
yardsd. and that no similar
Is in the country, complaint
)f Minnesota that this charge
investigation by the Packers
whole situation, and it was
commission was contending
led unimpaired and that the
for should not be disturbed.
i of conflict of jurisdiction
of the Packers and Stock-
t the packers and stockyards
n the question and that the
and therefore invalid as to


S
ta
in
lhe
nc


amo
s.
the
'niss
the


sustained by the Attorney
ge the stockyards company
g service and the dockage
expense without special
reasing its existing rates.
united to from $60,000 to
The State thereupon insti-
stockyards company from
ion men institute suit in
State from enforcing its
S t


Jo
S'
('P


I


*


re


v







PACKERS


AND


STOCKYARDS


ADMINISTRATION.


bringing


about


some


would be fair to all
retain for the Secreta
the purposes of the pa
pending at the close
factory adjustment thi
weighing charge would
would pay the salaries
weigh lire stoc, but
thority of the Packe
subject matter involve
Supreme Court of thi
in the Federal court. o


r
C,
f


equitable disposition
parties and which w


y7 0
ker
of
)ug


d be
Sof
with
rs a
ed.
e Ui


would


f Agriculture full auth
's and stockyards act. T
the fiscal year, with p
h the means of a plan bU
discontinued and the st
the State weighers who
i full recognition by th
nd Stockyards Admin
pending the final dete
lited States, on appeal


matter
the san


ority to (
Fhese mat
respectss
y which tl
ockyards
would co
e State o
istration


?ari


which
* time
yv out


ters were
of satis-
he special
company
ntinue to
f the au-
over the


>rmination by
from the leci


the
sion


f the question of conflict of jurisdiction.


AUDITS


AND REPORTS.


For the period of two months,
quarterly thereafter reports ar


men in the variot
ing to a simple cl
yards Adhministr
commission men,
the question of r
tions, and be in a
special investigate
reports include co
of advertising th


comparatively


sn


is mnarke
assificati
action in
in nirdpr


e



IA
II


... .'-


a- '.t


November and


e


ts as to
on design
touch
that it n


'asonableness of
position to deal
ons in particul 'i
rtain items of s
e business. It


all


percentage c


being


tainted(


their earnings ant
ned to keep the P
vith the financial
iay observe variat
rates and charge
intelligently with
* markets from tin
special interest, su
is found in this
,f the total numb


December. 1921.,


and


from commission
I expenses accord-
ackers and Stock-
condition of the
ions bearing upon
s and other ques-
i the necessity for
we to time. These
ch as the expense
connection that a
er of commission


men in the country keep adequate accounts,
become apparent that the Packers and Stock
must devote study to proper accounting system:
In order to throw light on controversies tha
facts of the commission business, and in antici
for making future determinations as to the
rates exacted by commission men in various


the books of cor
sentat,ives of thi
Worth, Pittsbur,
selected* with a
marketing condi
audit included t]


and


therefore


it has


:yards Administration
is for commission mien.


It
P


mission men was arranged
e exchanges and started in
gh, Pa., and Portland, Oreg.,


vii
tio
he


ew to the
ns in widely
tabulation


representation o:
y separated parts
from the account


;had arisen as to the
action of the necessity
'easonableness of the
markets an audit of
r with certain repre-
. Paul, Omaha, Fort
ese five markets being
t distinctly different
of the country. This
sales of the comnmis-


sion men for 1921 of all of the items of expenditure in
with the sale of the live stock and of the information relt


connection
tina to the


n


1


-


re





ANNUAL


REPORTS


OF DEPARTMENT


AGRICULTURE.


dental audits of commission men's
purpose of special investigations.


books


other


markets


various audits have disclosed i
ory action has been taken or
ig about improved conditions.
the markets that commission
ien their assets were insufficient


)rodt
i the
has I
on m
ship


icers whose
necessary
)een taken u
Len to keep
>pers in sep


live
imme
Ip wi
the p
arate


stock
diate
th the
roceed
bank


pany bonds for the protection
bonds are already in force,
commission men several years
rate banking system for the p]
eration with the Packers and
market a system of separate
the close of the fiscal year.
Reports were obtained frol
merce throughout the country
operations during 1921, and a
nation contained in these rep
piled in tabulated form, and r
study of the accounting system
pressing work of the account
Administration would permit.


they


c


orr
var
of
acc


1 of th
and in
ago vo
proceeds
Stocky
bank at


Ti


irregularities concerning which
is planned for the purpose of


It has been
men were co
t to enable t
had sold.


ective attenti
ious markets
sale of live
ounts and to
eir shippers.
at least one
luntarily put


discovered in
continuing in
hem to settle
These cases
on, and the I


sev-
busi-
with
were
ques-


of re(uiring coin-
stock belonging to
give surety corn-
In some markets
large market the
into effect a sepa-


of sale of live stock. By coop-
ards Administration in another


accounts was


packer:


showing
t the close
iorts was
)lans wern
ms of the
tants of


being


developed


s engaged in interstate cornm-
the financial aspects of their
e of the fiscal year the infor-
being consolidated and com-
3 being made for a systematic
packers as soon as the other


Packers


and


Stockyards


TRADE


PRACTICES


HANDLED


INFORMALLY.


Whenever it is possible to


anticipate a


conditi


ductive of complaint, or when complaints are
Packers and Stockyards Administration endeav
make the necessary investigation and to bring a
rective action may be justified through inform
agreement of the parties affected. It is quite a
this is possible the results are accomplished with
ture of labor and expense and with the greater I
nent beneficial results than when matters are a.
extremely controversial stage of formal proceedir
ant possibilities of suspension by later court act
number of formal proceedings is being kqpt at a
formal proceedings do not represent entirely the
,4! ftn TIn nl rnnci nnr Q innlryirrn A Ar yyini mck'rwo+ t ^ inn


on that may be pro-
actually filed, the


rors imm
bout wh
al method'
apparent
much le
likelihood
flowed t(
igs with


ediately to
atever cor-
ds and the
that when
ss expendi-
of perma-
) reach the
the attend-


ion. Therefore the
minimum, and such
results of the work
fk nnmhn yy Kjrif#"11^1


The


regulate
bringing
eral of


WI


ness
the j
given
tion
missi
their






PA(!KERS


AND)


STO( K YARDS


ADMINISTRATION.


tainted
merely
being
tended
unfair
ing pa


only 15
changed
15 ounces
by other
and uneco
rties must


receiving t
tion' took u
of the meat
consisting (
together wi
organization
presented tP
I^Xi~o ll-v-iA f


ounces


butter, 1
substitute


he labels, in
a statement


most


instead of 1 pound previously shown.
packers and distributers of butter that
nomic practice, but that, if permitted, t
do likewise in order to maintain their t


complaints,
the question


packers,
)f represe
th other r
p


n o:
o th


with
ntativ
epres(


the Packers an
informally witl
the result that
res of the part
mntatives of the


1


r creamery-butter mn
is committee on the


economic aspects and result
recommendation bv thle comic
continued, together with an
ard containers. Specifically,
ter that the contents of retail


half and


quarter


were indorse
immediately
had been lod
necessary. A
to have been
only was a


butter
section


were


d by
)put i
ged.
is sale
in ve
desire


pounds.


ed in
nittee


ini( lo
the


carl


The


the two nati
nto effect by
Thus all for
is of butter in
3ry considerable
ible principle


afforded


1tt


anu
basi
the
tha
elle

MIS I;


Ld

a
ie
i


Stocky a re
the nation
committee
s immedial
industry an


factur
s of it
e iinla
It the
mnt of
nittee


on t


recommendat


onal orgat
the packer
mal proce
such shor
'le quantit
established


immediate


and


where the short-weight cartons


niz,


pers.


's
ii
wV
:el
(Ii


The


s Practical
nimolus co
practice s
the princi


cases, being
contents as
It was con-
this was an
he complain-
:rade. Upon
Administra-
organization
as appointed
vi concerned,
of a national


question
business


nrpelu

pie


S
d
o


recommended
he basis of p0ou
ions of this co
nations referred


Against whom comply
edings were rendered
t-weight cartons were
ies, it is believed that
id but that consumer
substantial benefit in


ion
be
f st
for
nds
nmm
to


,I


had


was
and
anI
dis-
and-
but-
and
ittee
and
laint
un-
said
not
s of
the


been sold.


DISCRIMINATION IN BUTTER-FAT BUYING


AT COUNTRY POINTS.


different


packers
chase b
facture
through


type


involves
certain


into but
financial


of business by bi
competition and
lowering prices
tions as to the
dulged in with
investigation of
year, the compla
has been notified


complaint


with


the charge of unfai
packers at country p<


ter, it being
il power or
idding up th(
then, when
to recoup.
extent to w
ut becoming
which was


int wa


found


charged,
otherwise


e pri


ces of


the comp
Such com
which comr
unfair or
completed
d to be un


respect to the operations of
r discrimination in the pur-
)ints of butter fat for manu-
in some cases, that a packer,
, has driven competitors out
butter fat during periods of
etitors have been driven out,
plaints disclose serious ques-
petitive methods may be in-
unlawful. In one case, the
before the close of the fiscal
Justified and the complainant


I accordingly.


)it~





ANNUAL


REPORTS


OF DEPARTMENT


()F AGRICITLTURE.


has been taken up
ers and Stockyard
markets, with the
added annually to
paign for tubercul


by the Bureau of Animal Industry and the Pack-
s Administration with the large packers at these
result that many thousands of dollars are being
the prices paid for such live stock and the cam-
osis eradication materially aided.


SOFT AND OILY HOGS.


Thle Packers and Stockyards Administration is cooperating with
e Bureau of Animal Industry in working out plans for the identi-
ation of soft and oily hogs purchased and slaughtered by packers
a means of developing an equitable solution of the problem with
ichl the producers of southern hogs are contending.


STRING SALES.


Thie practice
been followed .
ing, in most in
owners in one t
by the Packers
mined upon t]
provided in 0o


dividual


known as string
it many stockyards,


S
1
r
F(


owner


Administration
by the live-sto<
commission mei
Packers and St
operative sale o
the plan has bee


tances of the
"ansaction at'
and Stockyai
at the pract:
der to prevel
s. The cone
have been a
ck market su
I and packer
;ockyards Ad
f live stock ti
'n understood


ales," o0
and wh


sale of live s
one price, has
rds Administr
ice should be
nt unfair adv
lusions of th
announced an(
mervisors wil


buyers.
ministrat
o the best


Not


r tying together, which has
ich consists, broadly speak-
tock belonging to different
been carefully investigated
nation and the policy deter-
eliminated or safeguards
-antage being taken of in-
e Packers and Stockyards
i are being put into effect
Lh the cooperation of the
thing in the position of the


ion, however, prevents the co-
advantage of the owners when


and agreed upon.


FILLING ORDERS FROM CONSIGNMENTS.


Another


extent
filling
signed
tignmc
yards
Drincii


practice


that


was


in some markets was th
purchase orders received
to the commission men
rnts of live stock on the o:
Administration is estab
)le that live stock consi


their respective s
reasonable length
commission men
purchase orders s


four


at o
fro
fo


nd in
>n the
m cus
r sale


pen mar
lishing,
Cned to


tockyards must be pla
of time before purcha
are filled out of such


k


existence to a considerable
part of commission men of
tomers out of live stock con-
without placing such con-
et. The Packers and Stock-


through its supervisors, the
commission men for sale at
ced on the open market for a
se orders received by the same
consignments, and then such


should be filled at prices equal to or better than those


a ffWrdrI hr tho linPn nn rrklPt


!
[






PAC KERS


AND


STOCK K YARDS


ADMINISTRATION.


selling price o
afforded for u
men involved.
instructions fr
show the true
prevent the co
on cooperative


If


live


stock


and


also


through


opportunity


unfair advertising of the sales results of the corn:
Therefore the live-stock market supervisors
om Washington, are requiring the commission
sale prices on their accounts sales; but this d
nmmission men from performing the prorating
shipments when instructed by consignees to do


mission
, under
men to
oes not
service
so.


CALIFORNIA LIVE-STOCK PRICES.


In the State o
that commercial
misleading, and
State, the Packe
with the Bureau
thorities for the


f California
quotations o
there being
mrs and Stoc
of Markets
purpose of E


mental market news service tl


considerable complaint has been made
f live-stock prices were inaccurate and
no public stockyard markets in that
kyards Administration is cooperating
and Crop Estimates and the State au-
tiding in the development of a govern-
hat will give authentic information.


PATRONAGE DIVIDENDS BY COOPERATIVE SELLING AGENCIES.


The packers and stock
published schedules of
and does not permit reba
patronage basis of excess
their bona fide members
lation of these require,
operative organizations,
patronage dividends to i
cooperative associations
to whether he was a me
un informally with each


1. .1


yards


rates
Citing,
s earn
on th
ents.
nro


requires


and charges
but provides
wings of coope
eir live stock
However, in


-; i;;nn1


p .I ..... a
anyone who
for market
mber or not
of the assoc


that they are now confining the
dividends exclusively to bona i
them from doing business with
earnings derived therefrom to
no refunds or deductions from 1
nonmembers.


ir pla
ide n


strict


of
that
rativ
does
som
1


adherence


commission agencies
the distribution on a


sociation


n
e
i*


was made To
might utilize
ng his produ


ot
of
tr
th
cts


This question
tions involved


2enI


constitute
the plans
the paym
Le services
without
i has been
I. with the


7


among
a vio-
of co-
ent of
of the
regard
taken
result


for the payment of patronage
ibers. This does not prevent


nonmembers and adding the surplus
their dividends, provided they make
the scheduled rates and charges to the


Numerous other matters involving special handling, such as ques-
tions of proper assignment of pens to the various agencies in stock-
yards, better railroad service, the inhumane handling and injury of
live stock through the use of clubs and other improper implements,
disputes arising out of the mixing of live stock in the yards, whole-
some feed and proper feed charges, and the like, have been disposed
of locally by live-stock market supervisors without formal action.


I






ANNUAL


REPORTS


OF DEPARTMENT


OF AGRICULTURE.


packers anti stockyards


adopt and enforce
which, upon being p
observed, and that t
a local standpoint.
in conference with t
lished and filed and


a encies


areas
ubli
hey
As
he 1


act expressly requires the market agencies
enable rules and regulations of their ow
shed and filed with the Government, must
could handle many matters effectively fri
a result they formulated a number of ru
local supervisor. These rules have been pi


are being observed to the general satisfaction of


concerned.


FORMAL PROCEEDINGS.


Whene
does not
formally,
Packers
had been
scribed ii


vet after a complaint is filed the stage is reached where it
seem possible to accomplish a satisfactory adjustment in-
the proceeding is given a place on the formal docket of the
and Stockyards Administration. Prior to June 30 there
instituted eight such proceedings, and each will be de-
n this report under its caption and docket number.


t No. 1.-Kansa
Co. and Fowler
sociation, The Mi
Live Stock Pro
Farmers Union


s City Live Stock Exchange. complainant, v. Armour &
Packing Co., respondents. The Kansas Live Stock As-
lissouri Live Stock Producers' Association, The National
ducers Association, Missouri Farmers' Association, and
of Kansas. interveners.


This
change,
market,
respect
known a
distance
ing Co.
Mistleto
the mea


was a complaint
which is compos
against Armour
to the operation
is the Mistletoe S


<


should be
also coml
were cont
rating to l
leged unf
further b
cerns wer
shippers
pressing 1
Kansas C
before an
The vari(
hearing~ f


filed


Kiians


commission


& C
by t
tock


O.
bhe


rom the Kansas City
s owned by Armour
Stock Yards were re4
ing of Title III of
so determined by t]
linedd that the meth
rary to Title III rela
packers under the pac
'air, unjustly discrim
because the buying oj


e a
wh<
the
'ity
ex
)US
or


llegedl
o patr
prices
, Mo.,
amine
assoc
the n1


and
Fo


Yards
public
& C
ally a
the p
hte Se<


iods of
ting to
Skiers an
*y


inatorn
)eratio]


to affect adversely
onize the Kansas
s in that market.
beginning March
r of the Packers a
nations named as i
urpose of assisting


;as
me


the Fowl
wler Pack
, at Kansa
stockyard
. It was
public sto
packers anm
iretary of


do
st(
ds


j, a.
ns (
th
Cit
A.
27,


City
n in
er P
:ing
s Cit
-s-. J


Live St
the Kan
backing C
Co. of it


y, Kans.
[he Fowl


complained
:kyard market
l stockyards
Agriculture.


Sock Ex-
sas City
o.4 with
;s yards,
, a short
er Pack-
that the
t within
act and
It was


ing business in these yards
)ckyards and to Title II re.
;tockyards act because of al-
nd deceptive practices, and
)f the two respondent con-
e interests of producers and
y public stockyards by de-
formal hearing was held at
1922, and lasting 12 days,
Stockyards Administration.


rveners
having


par
thel


ticipated
facts de


in the
veloped


rn,
be

les
ib-


I)ocke


[


,-rKI'-






PA('KERS


ANDi)


STOCK YARDi)S


AI)MINISTRAT ION.


that


were


members of the


it was complained by
were being subjected
live-stock exchange a
buyers in that market.
amicable adjustment (
therefore, a formal c4
which was unfair and


boycott by the respo
an examiner of the ]
entered upon, but ii
be reached by comic
actually worked out
by all parties, direct
the continuance of
sumed on an open-m
amended its rules to
since then several of
rules voluntarily in


Louis


Live


these independent selling
to a boycott by the entire
nd by practically .all the
Repeated and persistent
of the matter between the
complaint was issued, the


I unjustly disc


indents. The heal
Packers and Stock


t appeared that a satisfactory adjustment could
mon agreement of all concerned, and this was
, resulting in the issuance of an order, accepted
ted to the respondents to cease and desist from
the boycott, and business was immediately re-
arket basis. The St. Louis Live Stock Exchange
conform to the requirements of the order, and
the other leading exchanges have amended their
a similar way.


Exchange,
acies that


and
they


Docket No. 3.-The Secretary
tional Stock Yards, Ill.


of Agriculture


C,-. FLHilton andt


oth(~rVS.


This complaint pertained to an advance by the Order Bu
sociation in commission charges for buying hogs at Nation
Yards, Ill., on eastern orders from packers. As the result o
lution passed by the association, commission charges wer
from $3 per single deck and $5 per double deck to $10 per car
single or double deck. Provision was made also that all e
on drafts must be paid by the purchaser. It appeared that
posed charges were not wholly just and reasonable and a
schedule offered by the association subsequent to the issuance
Secretary's complaint, fixing a rate of $6 per single deck and
double deck, together with the requirement that all exchange c
be paid by the purchaser, was substituted after a hearing
sideration of all the facts including rates for similar services
markets.


years' As-
al Stock
f a reso-
e raised
whether
Exchange
the pro-
revised
:e of the
I $10 per
n drafts
tnd con-
in other


Docket No. 4.-The Secretary of Agriculture i. The Belt Railroad & Stockyards
Co., Indianapolis, Ind.
On March 10, 1922, the Belt Railroad & Stockyards Co. of In-
dianapolis, Ind., announced an increase in the price of corn from
$1.10 to $1.30 per bushel. This advance appeared unreasonable on
its face and the tariff was suspended by the Secretary. Prior to
the date set for hearing the stockyards company canceled the pro-
nosed advance and restored the nriee to $110 )nr bushel, nendina


Stock


agei


membership of
traders and or,
efforts to secure
parties failed, a
principal charge


'iminatory practices through a
ring was set for April 3, before
yards Administration, and was


ft
I





I~"x":s"
ii I
~"x;;.s;
5i; ~,

"i bic


"::,".
:i


REPORTS (1I


V.E "il:/. '
Thh II~I

urrMEN'r O


UNIVERSITY OF FLORIDA


3 1262 08739 5082


Follo wing


Agricult
and Ch i
imposed
on. aeoul
actions.
panies a
stock in
-


p


ure a
cago,
was t
nt of
The
re de
the h


the


,t ti
Il1
hein
the


ma


assumption
he stockyards
., it appeared
g exacted by
reweighing o
jor portion o


rived from
ands of com


ii 1 rw*1


the
miss


stoc in t.ne yards. mne traaer
unfairly discriminatory and
the consideration of other ch
case it was found that any re
in order to satisfy the comply
sisted upon the propriety of ti
content, ,and accordingly :
saints. The 6s upon t
huave but n: tdrtio mie1t th
have been pned until Sep
Docket No. 8.-The Secretary or Ag
Baltimore, Md.


LVcuur,
jrj.U ltuLre


IUGT&.I


ix :4N11 1iiiii


SI.. lind other.


The complaint in this proceeding was issued as a result of the
receipt of -complaints from shippers who protested against a pro-
posed schedute of charges of the Baltimore Live Stock Exchange,
whereby there would be exacted, in addition to the regular comms-
sion charge, 50 cents for each additional account sales after the first
two on cooperative live-stock shipments handled by exchange mem-
bers. This charge on its face appeared to be excessive compared
with the value of the service rendered, and the tariff was suspended.
Formal hearing has been set for August 17. A general inquiry in
connection with this proceeding will be made, into the basis for the
various rates and charges made by members of the Baltimore ex-
change.


:I.

*I:
ih'*LH:
N.E x
.q/~
H
: *i'r

H *


ANNUAL


''


I" DEP
*^ *


Y


L


.*: 3 .: '.
of jurisdiction by t"he Sec tary' "o.
at Peoria, Ill., South Omaha, ebr.,
d that a new charge not previously ;
the stockyards companies from traders
f live stock necessitated by their traeis- Li: :.
f the revenues of the stockyards corn-
yardage charges assessed against i. "'7i
;ion men and from the feeding of live 7 1)
's complained that the new charge was ,
excessive. Its consideration involved
arges of the stockyards& companies in
adjustment of charges should be made
aints. The stockyards companies in-
ie new charges and the justice of :their
it was necessary to issue formal com-
;hese complaints were set for dates in
:e wishes of various parties interested .
l,- 1i non fllf