Fast Food Nation

The nations chicken meat had traditionally been

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Unformatted text preview: price fixing in the meatpacking industry, and for the next two decades the federal government tried to break up the Beef Trust, with little success. In 1917 President Woodrow Wilson ordered the Federal Trade Commission to investigate the industry. The FTC inquiry concluded that the five major meatpacking firms had secretly fixed prices for years, had colluded to divide up markets, and had shared livestock information to guarantee that ranchers received the lowest possible price for their cattle. Afraid that an antitrust trial might end with an unfavorable verdict, the five meatpacking companies signed a consent decree in 1920 that forced them to sell off their stockyards, retail meat stores, railway interests, and livestock journals. A year later Congress created the Packers and Stockyards Administration (P&SA), a federal agency with a broad authority to prevent price-fixing and monopolistic behavior in the beef industry. For the next fifty years, ranchers sold their cattle in a relatively...
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This note was uploaded on 02/25/2014 for the course MGMT 120 taught by Professor Litt during the Spring '08 term at UCLA.

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