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Show leclares Industry Is : Now Competing in Many Lines of Business Busi-ness Outside Packing. tjattle Against High Cost of Living Continues; Con-tinues; Cities Now Retailing Re-tailing War Supplies. :. WASHINGTON, Aug. IS. The danger, ::. seen by the federal trade commission, : -"j the entrance of the packing industry ilo lines of business beyond the packing ':mcat was described by William B. ."oiver, member of the commission, today ;t the senate agricultural committee. In '. i opening hearing on the Kenyon bill f. -1 divorce ownership of the stock yards ' ud refrigerator cars from the packing '. )ncerns of the country and to regulate r license their operation, the committee as taken over much of the ground trav-!e0 trav-!e0 by the commission in its Investiga--'. on of the packing industry. ..; "Tho refrigerator car and their use of ," said Commissioner Colver, referring ; ) the five big packers, "was not in Itself v-bad thing. But they have turned the Ifrlgerator car Into a traveling whole-' whole-' lie grocery, peddling at every city in the - Juntry every day almost everything that ' eople eat. "When the packers," he continued, . have found their customers buying some-: some-: ling else besides the meat they have to HI or Its by-products, they have gradual gradu-al Or commenced to get into the business '.' supplying the other things. 'RANCHING OUT INTO IANY NEW FIELDS. ::. 'TUon they have themselves been large : ,yer' t a given commodity, they have :: Wen into the production of that ar-: ar-: He. and gone into competition with their ler purveyors. When they have found -.' -nbatance which has become to some ;. a substitute for meat products, "y hive Pne into the business of mak- ana selling that substance." Extreme instances of the tendency, the . amlssloner asserted, had turned meat : : ',r8 t0 operating when they had ::. ei only to sell soap; to making ten-( ten-( racquets because gut strings went Into cn articles, and to selling soda foun- "si,Dne""lboet tea was there served. ,' a " T of business," -Senator Ken-one Ken-one nli'n,l'C,r of tlle committee, asked '- :t che, - '." the mquiry, "sell prod-" prod-" relini'r , the consumer in these : J I. thi, dev'op efflciencv of sup-' sup-' P'e -hi,.V, , ,1 a sound economic prin-;.. prin-;.. ve "Nell Is being worked out?" JCLARES "EFFICIENCY" , WES NOT EXIST. ; Pjtce, I can't accept any : bn," w,, " which you put the ques- : r Colver'B reply. This m no, ",.f efficiency of the packers '' t"1 dc I in 11 overhead absorbs a trj,., ' n these great business con- 'WirlT tI"na' committee chairman. demerit r,t pr?ce!dlngs with a brief '' iMdin, . ndltloMS which, he said, rUon of 5,1 a B"eral demand for llm-' llm-' '?r Ktnyon ral rof't- So did Sen- 'hlc'1"aMerav,rM,,Cal bi"' wlth teoth it. ' I" It I) ' , lne most careful scrutinv, " Senn,B,"-Vernme,u ownership - ,nt, m(hod,0r, Kc"-vo- "It provides ' "unii-v i. corporate control in fcktr. thV h, ""Blasts the licensing of k"rtls LriVO','c,0l"0nt from them of '.""ir com 5h'P,anrt the elimination 'W ', ' rcfngerator cars. The X?4 tnmmlsL 6 ""v11"''' of t,le federal a"d '"formation before LONGER PRIVATE I'ESS, IS CLAIM. f'irtw P'T?k,',ng ls no longer a private ; Z dpcree " e monopoly has grown to fr"tle in ""derstand it has. It is In- l'ltl, ffiei. '"tolerable. There mav be ?vll "prom,1 il '" an attack on ' Llht Pacl'e,; ""SJU UlG propaganda ' '? hM s fr!S"tened business Mened ",' can,e u". nd mav have J"late. M-i's out of the attempt to - I!1"555' nor ,,' ,10t tr-viS 10 Injure j lCris Profit! reasonable profits, but h"' ' trca3',able K'o,, C,,er Pf ,he federal trade ' .k,si of il' illness, outlined Sdy. '"vestigation made by ' "ennn "business of this trolied by the f,ve great of extra clerks were neceasary to wait on the customers of Uncle Pam. There were i Ion? lines on the sidewalks when the stores closed for the day, ami tt was estimated es-timated that 20,000 sales had been marie. The sale will he continued tomorrow at ten department stores located In different parts of the city. Postmaster Carl He will begin the delivery de-livery of foodstuffs by parcel post Thursday. Thurs-day. District Attorney Charles F. Clyne said today that he would demand prison terms, and not fines, for the punishment of food hoarders and profiteers. COLVER HHPS PACKERS 11 MEAT PROBE (Continued from Page Ono.) ! packers whose headquarters are at Chicago," Chi-cago," he said, "and that independents in the industry exist only on iuf ferance." He told of the creation of the livestock pool, which he asserted was a combination combina-tion of the larger packers to guide their daily purchases of livestock. PREVENT MEMBERS FROM BIDDING UP. "Chiefly," he said, "it was to prevent members from bidding up prices on days when a short supply of animals came into the .yards. Various successful attempts were made by the packers to keep up the pools, but one by one they ran into the law. "At the principal markets of the country, coun-try, then, a condition emerged by which the five packers, Armour & Co., Swift, Cudahy, "Wilson, and Morris & Co., in combinations of one, two, three or four, occasionally all five, year after year, bouprht exactly a predetermined proportion propor-tion of cattle offered for sale." Mr. Colver said this was the condition at Chicago, Kansas City, St. Joseph. Fort Worth, Denver and St. Louis, and presented pre-sented statistics in support of his statement. state-ment. Explaining the commission's investigation investiga-tion of the packers, M Coiver said: ""We were not interested in profits, and were not looking for people who simply had money. It is a factor in the business busi-ness that fresh meat can be sold at a loss and the whole business yet be run at a profit." "Ownership of yards and refrigerator car lines." Colver continued, "are two of ! the great advantages which have brought I the five packers to their present domina- : tion. Eleven hundred refrigerator car routes originally started to deliver fresh meats at smaller- consuming points, now are practically traveling wholesale gro- I ceries, delivering almost every food prod- I uct people consume, things which the ! packers manufacture and sell. So far has this gone that the five concerns ; named now control 662 corporations and j manufacture or deal in 700 commodi- ties. I "Whenever a substitute is developed , for a meat product, they begin to go : into that, When they are large buyers : of any partciular commodity, such as railroad hardware, to equip their cars, i they go into that. Then when they sell anything, they find that their purchasers need other supplies, and presently they begin to manufacture or deal in the other supplies. "The 1920 model of industrial combination, combina-tion, as against the o!d ones, represents the successful combination of competing industries, instead of combination inside a single industry."- I Kenyon's Inquiry. I "What's the 1920 model?" Senator Ken- yon inquired. "The packers have a Tittle one running 1 over in England now," Mr. Colver responded. re-sponded. "It entails the combination of all manufactures for production and distribution dis-tribution of foodstuffs, the practical 1 elimination of the wholesale establishments, establish-ments, since the business will go on down to the retail shops. We find that in thirty-four English cities the packers control sixty-five wholesale meat establishments estab-lishments and over 1000 retail shops. They are doing business under new names and charters which allow them to make and sell anything commonly sold in shops, and build steamers and carry mail." Commissioner Colver indorsed the regulation regu-lation theories involved in the Ken yon bill. "It goes a little further than our re-! port," he said. "Are the packers interested in shoes?" Senator Harrison, Democrat, of Missis- ; sippi. asked.. i "Not yet, but they carry the hides through the annlng process clear to the , shoemaker." No Justification, Claim, "Is there any relation between the packers and present high shoe prices?" Senator Smith, Democrat, of Georgia,, asked. "We have found and stated the conclusion con-clusion that there is no justification for present leather prices." Mr. Colver stated, "although we have not applied that conclusion to the packers. They I control 78 per cent of the hides pro- duced, and 85 per cent of stocks of I leather accumulated. These stocks are l only to go on the market slowly, in re- j sponse to rising prices." When Commissioner Colver concluded his testimony the committee adjourned hearings until Wednesday and authorized ; Chairman Gronna to notify all opponents 1 of the measure to be ready to appear j after that time. - i Chicagoans Buy Army Stocks. I CHICAGO, Aug. 18. Many thousands of: householders patiently stood in line to- I day at two downtown department stores. awaiting their turn to purchase army j surplus stocks of foodstuffs. Hundreds i |