Show 1 TRADE n t r BOARD ASSAILS iV PACKERS AGAIN 1 New Nev ew Law T Urged to Prevent f International Control 1 J- J Ji i of Industry Y J I July 11 An I packer domination of ot all Important I I r foods In the United States nn and an International In- In 1 control of or meat products pro I II I wIth i foreign companies seems a a. a certainty cerI I j t unless fund fundamental action Is i I taken to prevent It It tho the federal trade e er I r commission declared declare today in part one of of Its report to President Wilson n f l A A fair Call consideration of or the tho course the five tl packers have ha followed e and the position they lhor have o alrea already reached said the report must lead to lo the tho conclusIon conclusion con con- that the they threaten tho the freedom of the marl market et of the country's food Int in- in t and of the b products by-products of tho the Industries linked therewith The meat packer control of other foods will not require long lon lonIn In developing f J As to devices for securing securing- control there does docs not exist adequate law the report said f In its absence unfair competition may run Its course to the goal oal of ot monopoly monopoly mo mo- and accomplish the ruin of or com corn l' l the secret ownership being suspected and consequently out complaint tp the commission or in- in atlon of facts Tho The competitor lis jIS in Jeopardy jeonard so long long- longas as ho lla has not the knowledge of true ownership and ancI the public is entitled to such knowledge FI FI a Named Swift pack e Alleging that the bl bit big five e pack pack- Jers 1 ers Swift Co Armour Co WilLson ViI Wil- Vilson s son Lson n o. o Morris I Co an and the Cu Cudahy Cudahy Cud Cud- ah company compan jointly or or separately i wield controlling interest in 7 1 companies com com- minority interest in 95 others fand and undetermined Interest In 93 a 93 a total total to- to tal of companies companies and and that the they produce or deal eal in some commodities ties largely foo food products the report gives J es this picture of or growing packer Invasion into related and unrelated InI In- In I In Fin addition a to meat ment foods foo g they produce produce pro pro- duce or deal In such divers commodities commodities ties as fresh tomatoes and banjo strings leather and cottonseed oil breakfast foods vin In lz curled hair pepsin and washing powders their branch houses are not only stations for forthe forthe forthe the distribution of meat and poultry but take on the character of wholesale grocery stores dealers In various arlous kinds s of ot produce and jobbers to special lines of trade trae They have interests large larbe enough to o be a dominating influence In most of f the services connected with the pro- pro an nn an 1 l distribution of animal I I I foods and their products by-products and antI art are I reaching out for control not only on ol ot of substitutes of ot animal food tood but of ol substitutes for other lines into which the tho Integration of or their business has led them Factors Factor in Loans lonn The They are aro factors in cattle loan companies companies companies com com- making making- the necessary loans to Growers and antl of or live stock are are Interested In railways and private car linos lines transporting live lI stock and manufactured manufactured man man- animal products in n most ol of the Important stockyards companies companies- the public market for fon the bulk of food rood animals and nn in live stock trade papers on which growers an and feed feeders irs rs rely for market news The They are arc Interested in banks from which their competitor pa packing houses borrow money In companies supply supplying In log ing machinery ice salt materials boxes etc to themselves an and their competitors con thc they are principal al dealers on the provision exchanges where future fu- fu ture tuie prices In standard cured cure animal products are arc determined the they or their subsidiary companies deal eal in hl hides e oleo fertilizer r material an and other crude e animal pro by-pro products by-products purchase froth frona other packers these crude products by-products and themselves carr carry the tho manufacture thereof to a further stage than mo most t of ot their competitors They arc Important factors In to the leather In Industry in oleomargarine and lard substitutes In oil in fertilizer In soap In glue etc etc Their vast distributing system with the advantage ad arising from the control of or private ale cars cUS cold and anda a 3 network of branch houses has enabled them to extend their activities activities l ties on a lat large scale Into Into- poultry eggs cheese butter rice breakfast break ast foods foo s canne canned vegetables so soda a fountain supplies supplies sup sup- 1 plies 11 and other lines Armour In Family mil In Interests Individuals of the Armour family are arc owners of or grain and elevator companies and J J. J Ogden Armour is a prominent factor In the American In International International In- In corporation with its shipping ship ship- shipping ping and an shipbuilding Interests its import and export companies In various vari vari- various arlous ous lines Its interest In a company organized to to- develop cattle raisins meat packing quebracho extract an and allied businesses In Paraguay Its control control control con con- of a large tea Importing company company company com com- pany and a sugar machinery corporation corporation corporation corpora corpora- tion nn and its minority stock in the United d Fruit company Some of Swift Cos Go's subsidiaries are growing tropical fruits In Hawaii Hawaii Hawaii Ha Ha- a subsidiary of Wilson Co Inc has reached reache into Inlo the salmon fisheries fish fish- fisheries eries cries of Alaska and a Morris concern cans shrimp taken in the waters of the Gulf Gult of Mexico In England France Franco It Italy a I Holland and other European countries large meat distributing companies have o been organized by the tho packers to sell the meats from their plants in tho the United States Argentina Uruguay Paraguay Brazil and A Australia The rhe big five lve the tho report said have ha control of ot or interest In public utility corporations in Sioux City Kansas City South St. St Paul Portland Ore South San Francisco South St St. Joseph Mo Hill City Minn Fort Worth orth Texas and Chicago Ion Toner Power Cr In Finance As to financial power the report said sal in part The packer packeT has drawn dran to a marked I d degree ree upon the banks of oC the country country country coun coun- try for liquid funds To assure himself himself him him- I self loans ample to his purpose the big bI packer has secured affiliation I through h stock ownership representation I I I tion on directorates and In iii other ways was with numerous banks and trust companies Mr lr Armour Mr 11 Swift S Mr Ir I Morris and Mr Ir Wilson ligon are arc directors in banks affiliated closely with those I II who are arc strong at nt the thc sources of or credit I I In the United UnIte States Being Heinl thus allied with the tho powerful powerful powerful power power- ful Interests at the sources of credit the packers packers' power i Is h great reat not only for financing their own national and International operations but for affecting ar- ar af affecting for goo good or for Ill the cre credit lt of c cattle producers and of competitors or customers hi In any line Allied Industries After reviewing rc the interest of ot tho packers in the tho leather fertilizer cottonseed cotI cottonseed cot cot- oil grain rain and breakfast food I In industries u the report said The reasons sons why the packers are I seeking control of the substitutes for tor meat the meat the foods foo s that compete with meats are meats arc obvious ob I If the prices of I substitutes for meats are once bro l brought ht I under packing control the consumer will have little to gain in turning turning- to them for relief from excessive meat prices I Jud Judged ed conservatively by trade es estimates estimates estimates es- es tho the bi big five lve han handle le at nt least half halt of or the poultry eggs C 3 and an cheese In Inthe Inthe Inthe the main channels of interstate commerce commerce commerce com com- merce Recently tho big packers began dealing In various staple groceries an ane and vegetables e such as ns rice potatoes beans and coffee corree an and increased their sales ales at such a rate rale that in certain lines they have e become factors factors' of oC great moment Referring to tho the packers activities in South America the report sal said that from establishment of a single lc plant in Argentina in 1907 by Swift Co the American packers Swift Armour Morris an and Wilson ha had developed elope b by 1917 until for that year ear the they exported 57 4 per percent cent of all exports of frozen and chilled beef quarters from Crom Argentina Argentina Argentina Argen Argen- tina an and Uruguay Packers Reply to Trade Commission Chicago go Jul July 11 Char Charges Charges es a against tho the big big- bigmeat meat packers contained in the report issued by the federal trade lra e commission commission commission com com- mission today were denied h by Louis Louts F F. Swift president of tf Swift Co speaking speak speak- lag Ins InsCor for Cor his hrs own company compan and for the theother theother theother other bl big Chicago o packers Armour Co Morris Co Wilson Co an anI and Cudahy Co Mr Swift said the report was merely merely mere I ly an attack upon large larbe and successful business organizations and anti should be beI resented b by all Americans who are I proud of the Industrial progress of the nation naHon tIt It Is r to be regretted that in n these 1 days said Mr lr Swift when the public I I feels keenly the pressure of oC high prices a government go body does not give I e out outI I I facts respecting prices and profits This I I has hus never nc been done fairly by br the federal federal federal fed fed- eral trade commission as regards the I packing Industry although the commission commission commis- commis I sion slon has constantly ha had the thc most complete comI complete com com- information In ht Its possession I Tho The report Just Issued by the commission com com- commission omI I mission and rind the discussion of I ies companies C and Its Ils calculation o of percentages percenta es of oC the classes of or business I I handled handle b by the p packers are not only I erroneous but are arc entirely Immaterial I to the the- thereal real question In which the public pub pub- lie lic Is Interested namely wh why are prices I I high I do not believe e that the findings I I of such a n. prejudiced and unfair report should be bo use used to influence public opinion opinion ion or as a basis for the radical leg legis legislation lation lallon that has been Intro Introduced uce at atH H Washington Wilton's Statement Thomas E. E Wilson lIson president of or Wilson Wil Wil- Wilson I son Co Issued the following statement statement statement state state- ment the latest attacks I After reading upon the meat packing Industry I 1 must musti i i say that It Is unfortunate that a state of mind seems to exist amon among the I 1 members of the federal trade commission commission commis commis- sion slon that the they should be opposed to 1 large lare business s Interests I It seems strange e to me that In this i report the fe federal eral trade trado commission I failed falle to tL call attention of bf the people 1 to facts in tho the food tood administration report rei re- re i i port as shown on page 29 which relates re relates re- re lates Intes to lo a war time profit to the pack pack- ers This report shows that the packers were permitted to lo earn a maximum I profit of 9 per pur cent on Cn sales of edible I products upon capital Invested It also ahw stated slated that the profit of the tho five fl lart larger larger lar- lar t I ger packers for tor tho the year ending November November No No- vember ember 1 I 1918 1915 was a little over 40 10 on an nn Investment of over meaning a net profit of ot G jG 66 6 per percent percent cent or ar r 3 34 4 per cent less than author- author authorIzed authorized I by the government These figures passed through the i i hands of the federal trado trade commission and the thc accuracy of or these figures has hns I not been arid and an cannot bo ho questioned I I 1 do not think any sane Jane per person n can canin canin I fI figures ures accept the 1 in the face o of thc these c statement that the food situation Is tied lied up UI in tn the hands of the tho large lane packers If It were surely they would have made the full Cull amount of profit allowed bythe b by bythe the gl |