A glance at the above tables will reveal the countries having a The extent of the world's enormous traffic in live stock; an - American farmer. 66 PUBLIC BENEFITS OF GREAT LIVE STOCK ERHAPS the most remarkable development of the last quarter of a century in this country has occurred in the marketing, manufacturing, and distribution of the daily necessaries of life. The power of organization applied to these commercial functions, so vital to the welfare of the people and so necessary to national supremacy, has demonstrated that great markets, vast manufacturing plants, and immense, far-reaching systems of transportation, bring the producer and consumer closer together and conduce more to the prosperity of the whole people than can possibly be done by individual effort or a large number of small independent concerns. The greater economy and superior facilities secured by large combinations of capital, labor and talent make them much more successful in supplying the wants of the people than is possible under old methods. In brief, it has been demonstrated that the concentration, manufacture and distribution of the daily necessaries of life can be accomplished on a large scale much better and cheaper than on a small scale. CHIEF ELEMENTS OF GROWTH. The main factor in this development has been organized cooperation, embracing as chief elements, (1) combination of capital, (2) division of labor, (3) expert management, and (4) labor-saving machinery. These have resulted in a degree of commercial efficiency and economy never before approached in any age. Of course this means, relatively, that the producer gets more for his products and the consumer gets better and cheaper commodities than ever before. The natural laws of commerce, manufacture and trade make this conclusion inevitable. The final result of such improved methods and means on the part of those who supply the world with food and other necessaries has always been the greatest good of the greatest number, and this development may eventually resolve itself into universal co-operation. In no direction has this development been more pronounced, and more direct in its bearing upon the welfare of the whole people, than in the live stock marketing and meat packing industry. The singular form of the word industry is here used advisedly, because great live stock markets and packing houses on a large scale are so mutually dependent upon each other, and their interests are so dovetailed together, that they are practically inseparable in any consideration of this kind, and they may therefore properly be regarded as different departments of the same industry. DISADVANTAGES OF OLD METHOD. When the live stock trade of Chicago was scattered around among six or seven small markets, located in different parts of the city, as existed prior to 1866, it was an unprofitable arrangement to both buyers and sellers, accompanied by many inconveniences, disadvantages, and losses of time and money. The buyer could seldom find at any one yard a sufficient number of the kind of animals he needed, and so was obliged to travel around from one part of the city to another at a considerable distance, often finding himself too late, or else the stock not yet in, owing to the confusion and delays caused by poor switching facilities. On the other hand, the seller found the market almost without buyers during a light run, and was obliged to submit to severe reductions in price during heavy runs, often as much as 50 cents or 75 cents per 100 pounds decline in a day, while he nearly always had to sell at a sacrifice some portion of his consignment in order to get a clearance, there not being a sufficient number of buyers at any one mar MARKETS ket to give him full competition on everything. Moreover, the railroads found the maintaining of individual stock yards expensive and unsatisfactory to themselves, as well as to their patrons. ORIGIN OF A GREAT MOVEMENT. As a measure of economy on the part of the railroads, to facilitate and lessen the expense of transfers, to obviate the delays and other serious objections occasioned by the location of the yards at long distances from one another, and to offer the public greater and better market facilities, thus to attract more business and encourage production, it was decided that the live stock interests of Chicago should be concentrated in some sure quarter, and the great Union Stock Yards of Chicago was established, the first of its kind, and the nine railroads then chiefly in the stock trade subscribed $925,000 of the $1,000,000 capital stock. ADVANTAGES OF MODERN METHODS AND GROWTH OF When the various isolated small stock yards were consolidated into one great market with prompt and adequate switching facilities, a large number of buyers, and ample market facilities of all kinds, it was much better for both buyers and sellers and for everybody concerned. Buyers no longer had to purchase what they did not want in order to get a sufficient killing, but always found a supply of just the right kind of animals to choose from, while sellers had full competition on everything, and were always able to close out their entire consignments on the day of arrival at the full cash value of every animal. The manifest advantages of such a union of markets to buyers already in the field brought other buyers from the East and exporters to the Chicago market, and the increased demand brought more stock, so that the Chicago market grew and became the great meeting place for buyers and sellers that it now is, where both can meet and trade to greater mutual advantage than at any smaller market, or than would be possible at any number of smaller markets. DEVELOPMENT OF THE WEST. The opening of this great market, with a sure and constant outlet at all seasons for all kinds of live stock in any quantity at full spot cash value on day of arrival, enabled the railroads to offer most powerful inducements to producers of live stock, and it did encourage and increase production wonderfully. The Western, Northwestern, and Southwestern ranges soon began teeming with cattle. and sheep, and there was a marvelous increase of all kinds of live stock in the corn belt, together with a wonderful advance in quality, breeding and size. An increased production of corn and other grains and forage for live stock necessarily followed, and the prairie states, where stock raising and farming were carried on together, prospered amazingly, until to-day they constitute the area showing the greatest advance in wealth, population, and education in the United States, and are fast becoming the seat of greatest political power. The increased production of live stock thus encouraged, and still further encouraged by the establishment later of other centralized live stock markets at Kansas City, St. Louis, and Omaha, patterned after the Chicago market, was the primary cause of the most marvelous extension of railroad systems ever known, all throughout the West, Northwest, and Southwest; and this railroad building in turn caused the settlement of vast regions of territory previously unoccupied save by the roaming herds of cattle and buffalo. This opportunity for homes on virgin soil attracted from Europe thou sands of her most capable and enterprising agricultural families, who have since become numbered among our most prosperous and valuable citizens. The benefits to the nation, flowing directly and indirectly from the establishment of the first great centralized live stock market at Chicago, are almost too great for description. ADVANCE IN THE PACKING INDUSTRY. But the greatest public benefit arising from this enterprise came through its making possible and encouraging the development of the great modern packing-house, with its marvelous economy in the preparation and handling of meats and complete utilization of the offal. Without the concentration of an immense number of animals in a constant stream at great centralized markets, so located as to be equally or nearly equally tributary to both producers and consumers, no great advance could have been made in the packing industry, and without the wonderful development of the latter, which has taken place as the logical result of the establishment of the former, neither the great live stock markets nor the general live stock industry throughout the nation could have reached their present magnitude, the farm animals of the United States now numbering over 212,000,000 head and their present value exceeding the enormous sum of $4,870,000,000. THE MODERN PACKING PLANT. The modern packing plant is one of the most complex and highly organized commercial developments of the age. It is the most perfect realization of that amazing phenomenon of modern business, the utilization of the by-product. It makes its profits, not on the sale of beef, mutton, and pork, but off the sale of byproducts obtained from the cattle, the sheep, and the swine. The miraculous system and amazing attention to detail which characterize its conduct, are revelations. Nothing escapes, nothing is wasted. Everything is utilized and turned into money, even to the smallest hair and the last drop of blood. By superior economy in their methods of handling animals and meats, enabling them to pay better prices to producers of live animals, and furnish better and cheaper meat products to consumers, the great modern packing plants superseded the old and wasteful village slaughterhouse method, which they never could have done without the power to reduce the margin between cattle and beef, for example, between producers and consumers. The modern packing plant requires acres of big buildings, a vast network of expensive machinery, together with enormous power, thousands of refrigerator cars, a monster office building filled with managers and clerks, and an army of skilled workmen, besides cold storage plants and wholesale markets scattered throughout the civilized world, all under the most systematic regulation and perfect discipline. In short, it is a vast and complex organization of capital, brains and labor, conducting enormous operations based upon an accurate understanding of conditions more varied and changeable than those confronting any other manufacturing business, and turning out a great variety of products which are distributed to nearly all parts of the earth, directly affecting nations, armies, and nearly every department of mercantile life. ORGANIZATION OF LIVE STOCK INTERESTS. Without centralization, no compact and effective organization of the general live stock interests of the country could have been formed. Few farmers' organizations have ever proved widely influential, because their forces are so scattered as to limit their operation. The establishment of great live stock markets made possible the formation of the powerful live stock exchanges, composed mainly of the direct agents of the producers and shippers of live stock, and through these organizations have been voiced in no uncertain way the needs and convictions of the entire live stock industry. These bodies exist for the purpose of encouraging the production, sale, and distribution of live stock and meat products, and for defense of all interests identified therewith. They are voluntary associations of live stock producers, shippers, packers, commission men and bankers, organized not for profit, but to secure, in the mutual interests of producers, consumers, domestic distributors and exporters of live stock and meat products, uniformity of business usages and customs, adequate inspection of animals and meats, needed legislation for the protection and promotion of live stock interests, and all other legitimate advantages to be secured through the power of organization. There is a local live stock exchange at every principal market, and the National Live Stock Exchange is a general organization composed of all the local exchanges. These bodies unite in the consideration of questions and matters concerning all live stock markets and their general interests at home and abroad. The first of such organizations was the Chicago Live Stock Exchange, and it was the direct outgrowth of the establishment, at Chicago, of the first great, centralized live stock market. This general organization of live stock interests has, by its demands and directly by its efforts, secured the quarantine of Southern cattle, and it is now safe at all seasons of the year to either buy or sell stock and to feed cattle on the market. It has also made it safe for exporters of cattle to buy and ship their cargoes, and has eliminated from that trade an enormous percentage of loss which they always met with through the contagion from fevered cattle. And this loss the producer had finally to stand. Such organization, by its representations to the national government, the Secretary of Agriculture, and through various other influences, brought about the national inspection of animals and meats, and thereby secured the opening of foreign markets to our live stock products, increasing wonderfully the foreign demand therefor, and creating the only effectual stop to foreign antagonistic legislation. Without centralization, no adequate system of public inspection of animals and meats would have been made possible. Without Government inspection, no considerable and lasting export trade could have been built up. LAST YEAR'S AGITATION UNCALLED FOR. The public agitation of the past year against packing interests. was uncalled for. The packers never opposed Government inspection. They helped to establish it in the first place, in the interests of their foreign trade, and soon found that it was a great help to their domestic trade also. They, therefore, asked the Government for more inspection, and during the Spanish, Boer, and Russo-Japanese wars, they offered to pay the additional cost if the government would only furnish a sufficient force of inspectors to do the work, the supply having always been inadequate to meet the needs of the business and petitions of the packers for more inspection until the present year. These are facts of history which can be verified from the records of the Department of Agriculture at Washington. ADVANCE IN THIRTY YEARS. As further indicating the public benefits of great live stock markets, of the local, state, and Government systems of inspection, all in operation at such markets, and of modern packing-house methods, not only in the protection of public health, and in creating foreign demands for American animals and meats, but also in encouraging increased and improved production of live stock, the following passage is quoted from an interesting review of the live stock and meat export trade of the United States, written several years ago by John H. Lee, of Boston, the oldest cattle export representative in the country: 66 'Along about the year 1870, some 20,000 to 30,000 head of live cattle were being exported each year, mainly to Cuba and the West Indian islands. These cattle were sent mostly from Texas and Florida, the average price being about $16 per head and never going above $20 until the era of fat beeves commenced. I find that the average value of the live cattle exported in 1870 was $15.98, in 1877 the average had reached $31.86, while to-day the average is $75 to $85, the difference between the stock shipped in 1870 and the better bred stock now exported being in the same ratio as $15.98 is to $80, while the number exported has risen from 20,530 in 1870 to 468,395 in the year just closed. "The history of the trade, which shows such a wonderful change in less than thirty years, is not only interesting, but serves also to prove the wonderful business ability of the American citizen." The forces gathered at the great centralized markets have wrought the above change in the cattle industry, and through the power of compact and efficient organization, possible only at such markets, have brought about and conferred upon the public at large numerous measures and methods of vast and far-reaching benefit, whose effects are felt in almost every department of civilized life, extending into many foreign countries. A FUNDAMENTAL LAW OF TRADE. As a general principle, admitting of no exception, the best market for both producer and consumer is the one where the largest number of buyers and sellers meet. There is greater satisfaction to both parties, and greater economy in the handling of the articles sold. Demand and supply are better understood, production better regulated, and more even and regular market prices prevail. THE WIDESPREAD BENEFITS FROM THE ESTABLISHMENT OF THE CHICAGO MARKET. Economy is the leading spirit of the age, in the commercial world. Some of the manifest and wonderful economies of the great joint industry may be summarized thus: 1. In handling animals by the railroads throughout the country. 2. In handling animals at market. 3. In the slaughter, refrigeration and curing of meats. 4. In the complete utilizing of the offal, mostly wasted under the old methods. 5. In distributing meat products and by-products to consumers, at home and abroad. All of which result from concentration of the live stock and meat-packing industry at a few great central distributing-points, bringing in their train, among others, the following great benefits and advantages to the community at large: 1. Increased profitable production of animals, in the corn belt and on the ranges. 2. Increased corn production. 3. Increased railroad building. 4. Reduction in cost of food to the people at large. 5. Improvement in the quality of food animals and animal foods. 6. A splendid export trade in animals and meats. 7. Increased banking, transportation, and other lines of business directly concerned in the live stock industry. 8. Better regulation of commerce, superior markets, more even and regular prices for live stock. 9. Improved legislation, prevention of abuses, protection of the individual rights of producers and consumers, secured through organization possible only in great centralized markets. 10. Increased fertility of the soil, together with greater utilization of farm waste in keeping animals. 11. Increased agricultural prosperity. 12. A general increase of prosperity throughout the country. The improvement of legislative control over the conditions and methods of the business through its centralization and organization, the encouragement and expansion of better general agriculture throughout the country, embracing combined farming and stockraising as its chief feature, and the extension of foreign commerce and the attendant diffusion of the ideals and practices of civilization throughout the world, are among the more broadly social benefits arising from this great systematization of business at the Chicago Stock Yards, recent demonstrations being the legislation concerning animal and meat inspection, the public success of the movement headed by the International Live Stock Exposition, and the general movement toward closer commercial relations with foreign nations, agitated primarily as a means for a wider outlet for our surplus animals and meats, and leading directly to a more complete political and social unity throughout the world. REVOLUTION OF METHODS EXPLAINED. It is impossible in the limited space of this article to describe more in detail the vast and far-reaching consequences growing out of the establishment, in 1866, of the first great centralized live stock market at Chicago. But in further explanation of the public benefits arising therefrom, we may emphasize the fact that the modern packing plant, with its many acres of big buildings, its vast network of expensive machinery, together with enormous power; its wonderful refrigerator system and thousands of refrigerator cars; its army of skilled workmen, managers, and clerks; and its cold storage plants and wholesale markets scattered throughout the civilized world, all under the most systematic regulation and perfect discipline; its capacity for disposing quickly and easily of 10,000 to 25,000 animals per day, and utilizing every particle of their carcasses absolutely without waste this great institution, with its marvelous economies and benefits, not only revolutionizing the methods of handling animals and meats, but greatly extending abroad the market for American meat products of all kinds, was rendered possible only by the foundation laid in the establishment of great centralized live stock markets. WHY LOCAL SLAUGHTERING FAILED. Perhaps the clearest demonstration of this fact may be found in the remarkable attempt and failure of the Marquis de Mores during the latter eighties to establish a large packing business at Medora, North Dakota, near the source of supply, instead of at a great centralized live stock market. Not understanding either the reasons for his failure or the reasons for the wonderful success of the same business at Chicago, many people have marveled at the ability of the latter to supply far away points, even in the cattlegrowing regions, with meats in successful competition with local or home slaughterers. This ability of the Chicago wholesale beef market to compete successfully with far-away local slaughterers in supplying the home demand for meats is explained in the following article, which was prepared by the writer several years ago, entitled: BENEFITS OF BIG PACKING CENTERS. The Denver Stockman, official reporter for the Denver live stock market and official organ of the National Live Stock Association, recently said: "For a matter of fact it would appear that now the home packers will do better to buy the dressed product East and sell it here instead of buying on the hoof and losing the waste. "To a man up a tree it does not seem possible that Eastern packers can pay 60 cents per cwt. freight charges and lay down the dressed product here at a price that competes with the home packers, who pay as much for the live product as is paid at the River for the same class of stock. The Eastern man puts the stuff in here, all the same." It does seem strange to those not acquainted with the live stock and meat packing business that the large packing plants at Chicago or Kansas City could afford to buy cattle shipped from Denver and return to Denver such portions of those same cattle as the people of Denver want, in competition with Denver packers. Yet modern methods make this possible. The Eastern packer, instead of "losing the waste," turns it into money in a hundred different ways, which the Denver packer cannot do, and instead of having the greater portion of the carcasses left on hand because the local demand does not require it, he has in his immense canning establishment and in an immense laboring and manufacturing population close at hand ample outlet for his coarse meats at good prices. These advantages, together with the greater economy of doing everything on a much larger scale, enables him to send to Denver and sell in competition with the Denver packers only those cuts which the Denver people want for local consumption. About a dozen years ago the Marquis de Mores, a French nobleman of wealth and great enterprise, built a large packing house for the slaughter of cattle in the heart of the range country, at Medora, North Dakota, his idea being that the nearer to the place where grown the beef is killed, the better and cheaper it will be. The packing house was run, at great loss, for two seasons, and then shut down forever. Its proprietor found that having no competition in buying he was compelled to pay Chicago prices for most of his cattle; that he had no constant and regular supply of cattle to depend upon; that out there labor was scarce and high, and not very well skilled; that fuel was scarce and dear; that refrigeration was costly; that he was obliged to waste the offal, and was in fact put to heavy expense to get rid of it; that, having no local demand for beef, he was compelled to ship all of it a long distance to dispose of it, and that having no facilities for storing it, as do Chicago packers, for instance, he was obliged to sell it immediately in large quantities at a time of year when the market for that kind of beef is always largely overstocked. The inevitable end of such enterprises soon came, the idea being a fallacious one when applied to cattle and beef. LAST VESTIGE OF A DREAM. Out at Medora, on the line between North Dakota and Montana, a fire occurred the other night. Metropolitan papers did not even mention the incident, but that fire effaced the last vestige of a dream. It incinerated the ruins of the slaughter house constructed in 1888 by the Marquis de Mores, who spent $300,000 on a chimerical enterprise. He conceived the idea that the butcher should go to the steer rather than the steer travel hundreds of miles to Chicago for slaughter. Theoretically, he was wrong; in practice, he but |