Who Really Sets the Price of Meat? A Puget Sound Monopoly Under the Knife

The Tacoma Ledger has been investigating the meat market, and gives the result in a lengthy article, of which the following are extracts:

There seems to be unanimity of opinion among the butchers concerning the real cause of high prices. For instance, some of them argue that there is no difficulty in obtaining cattle and sheep, while others say that the severe winter of 1880-81 killed many of the yearlings in Eastern Washington and Oregon, and this, with the advent of eastern purchasers, so lessened the number of cattle that the market is difficult to supply.

One of the butchers insists that the Smith Brothers of Yakima county are the cattle kings of the Territory, and that they are able, with their own large herds and an implied agreement with other ranchmen in Eastern Washington, to virtually control the Puget Sound market. As the trade is in the hands of one middle man or firm — namely, Samuel Coulter & Sons — the monopoly of the trade is argued by some of them to be more effectually maintained. This firm, they say, kill from 250 to 275 beeves and about 600 sheep per month. They supply the Carbonado mines, the Steilacoom asylum, the Tacoma, Port Blakely, Port Ludlow, and what is known as the Puget Sound Mill Company, with many other mills and public institutions in Western Washington. Mr. Coulter is said to be one of the shrewdest buyers and best judges of stock in the Northwest.

Another retail firm in this city attributes the high prices, in addition to those above given, to the great increase of all kinds of expenses in connection with handling the stock. They claim that rents are about 100 percent higher than a year ago; that hay, which twelve months since could be purchased at $12 a ton, is now selling at $25 and $30 a ton. The two percent shrinkage in handling the meat, from the time it is quartered and hung up on the blocks and sold directly to consumers, is, they also claim, no small item in the business.

These are the real reasons assigned, but they were brought out in every case but one only by the most vigorous cross-questioning. Much more that was submitted by the dealers seemed to be nothing more than a general attempt at making an argument, with the argument left out. The ideas were disconnected, and would be difficult to present in any logical shape.

Most of the cattle come from east of the Cascades in this Territory, and from the same side of the mountains in Oregon. Some, however, are brought here from Victoria. The sheep come here largely from the Willamette valley. Lately a good many cattle have been brought in from Chehalis county. There are plenty of cattle and sheep, but no hogs of any note. On the eastern side of the mountains, thousands of acres of land are devoted almost wholly to cattle raising. The valley of the Yakima river and its tributaries, the Kittitas valley, and the Palouse country produce annually thousands of cattle that find a ready sale on Puget Sound.

From the statements herein printed, it appears that the middle man above mentioned have a monopoly of the trade, on account of large capital and extensive experience, and are enjoying a season of large profits. The retail dealers say that Mr. Coulter is undoubtedly making large sums out of the trade. They also admit they are doing exceedingly well themselves. They say that a dealer who is doing any kind of a business is steering the hides and tallow, and a man who is doing that much is making large profits. In their own line they say they are making much larger profits than those from hides and tallow. The whole matter summed up then is that the firm supplying the retail dealers, and the dealers themselves, are all making what they call fair profits, and the people are paying the prices and enduring it. Can competition speedily come in the people would be better off. In about six weeks the grass-fed cattle of the Yakima country will be coming across the mountains, and people may then expect a drop in prices. As soon as the snow disappears in the Snoqualmie pass the younger cattle will be brought to the Sound. Then prices will fall.