Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1917-12-29

packing nrm or swirl ~ 20, ndu LOU
him when he first entered the Boston
field hat the rendering business here was
very unhealthy" He said he was not
frightened by this statement and was next
informed the rendering combination had
become wealthy and could afford to raise
prices, with the intimation that they did
not believe he would be able to meet the
competition for waste products. He was
invited, he said. to come into the COM
bination or get out of business, but he
added that he intended to do business just
as he had been doing it right along.
Asked by Mr.. Heney if he could COM
answered: Il certainly could. Their
overhead expenses are too heavy"
So large was the crowd at the hearing
that a larger room In the federal build
ing was provided for the afternoon ses-
sion.
Murdoch Presides at Hearing
The investigation into the packing
mouse industry. begun by the Federal
Trade Commission at Washington last
week, was resumed here today. Francis
J. Heney. special counsel for the COM
mission, said before today's hearing
opened, that the commission came here
TO develop a few flag ends of the in
N~Cstigation regarding the Chicago Stock
Yards &C. CONTROL" and to develop the
question of competitive conditions il!
the meat industry. particularly IN
Boston n vicinity. Victor y. Muir
dock, a member of the commission, pre-
sided at the hearing.
Whitcomb First Witness
Frank +. Whitcomb of the Eastern
Oil Il Rendering Co, was the first
witness He said the company was now
controlled by the American Agricul-
tural Chemical Co. and had moved from
Portsmouth, y. H, in 1912 to Boston.
From butchers waste the
manufactures oleo oil and cleo stock,
tallows and the like. while from the
residue il makes poultry food. fertili.
ger. lard compound and glycerine
When the company began to collect
waste in Boston, prices rose rapidly
and the competition became 50 keen
the Eastern Oil and Rendering Co. lost
money for IS months.
The examination of the witness was
interrupted at this point to read into
the record copies of indictments re-
turned in September. 1912, against Of
fcials of various rendering companies
for alleged unfair practices.
II was brought out that various rem
dering companies in this vicinity wern
now controlled BY the large packing
companies. The Various consultations,
the witness said, We're brought about
to stop the existing competitions. The
plan, witness said, had not worked out
so well as hoped for as breaches Of
faith were always occurring. Witness
said there vas nothing ia hinder on"
rendering company taking away an
other firms customers. Bonuses have
been paid new butcher shops for their
waste business. Whitcomb said.
Examiner Heney brought out that
the combination of rendering compa-
MES brought about by the packers
made it difficult for n~on-rendering
firms to enter the field. The same on
ditions prevailed throughout the coun-
try, Mr.. Heney asserted. with gentle
mems agreements to divide territory
and tie up customers for life. In Bos-
ton. the firm of McCaffery & Co. of
PtNNtucket. r. L.. was at present try
ing to fight the combination. 1t was
developed by the testimony that other
firms trying from time to time to en-
ter the field had been driven out Of
business.
Mr.. Henry brought out that the Am
erican Agricultural Chemical Co. was
paying unusually high prices in Phila-
delphia to get business.
Police Commissioner McCaffrev of
| paN"tlrEat y IA If thn E,,N, af
What Cheer Chemical Co. the next
witness, testified that he had been fore
led out Of Providence by the trust
and had to collect waste in Boston in
order to keep the firm alive. He said
the Consolidated Rendering Co. con
trolled by the Swifts, always offered
his customers from one-half to one
cent a pound more for waste than he
did.
McCaffrey said he was approached
by f. G. Wolf of Providence whom he
! identified as an agent Of the SWifts
and asked how much he would take to
get out Of business. He said there was
not enough money to get him to re-
tire.
When he came to Boston. Mccartney
said he was told by representative Of
the packers that conditions here were
very unhealthy" He was told. he
said, by Edward T. Murphy, Who CON
trolls the Consolidated Rendering Co.
a Swift concern, that the renderers
here were Very wealthy and were 60
ing to jump the price Of suet in Provi-
dence. where Mccartney was collect
ing waste, from 10 cents a pound to
ID cents. He was later told, when he
persisted i'll taking Boston business
that he would either come into the
rendering combination in Boston or get
out Of business.
With great emphasis Mccartney said he
announced his intention to continue bust
ness as he saw fit and as a result. he
testified, he became involved in one law
suit after another, instituted by the pack
ing companies for taking away their bus
mess. He was told by his competitors
that they would keep him so tied I'D for
life by lawsuits he could not move.
McCaffrey said he could compete sue
cessfully with the t~rust-controlled rem
dering companies on fair grounds.
Their overhead expenses, he said. were
too heavy while his firm kept them down
In Providence. he said. citing unnecessary
overhead eXnpnGeG tho r1v rr.rolt..