South Bend news-times. (South Bend, Ind.) 1913-1938, 1917-12-21
.U.S. GRIPPEDBY
FOOD TRUST
SAYS HENEY
Disclosure of Giant Grganiza-
ton Controlling 80 Percent
of EdibIeS Promised by
Trade Commission.
InternationaI News Service .

international News Service:
WASHINGTON, Dec. 21.-The
United States Is in the grasp Of a
combination which controls so per
cent of the commercial food pro-
ducts Of the nation. as we'll as
saany other products of vital neces-
sity. according 10 information in the
hands Of the federal trade commits
sion. This evidence. il is promised
is 10 be made public i'm the course
Of the hearings now being conduct
ed by the commission in connection
with the presidents special investi-
cation into food prices.
The newly discovered food trust
has so adroitly covered its opera
tions that il could sell food products
at less than the wholesale market
price and yet make handsome prof
SIS. according TO the evidence the
commission has gathered. counsel
Tor the latter. Francis j. Heney de
clared today.
System of Profits.
Tire system of indirect profits on
food products is partially as fol-
lows:
The packers and affiliated fnan-
ciaI interests control the terminal
railways Of Chicago. The money
paid for handling shipments of meat
"a Chicago. the great packing cen
ter. is so great that a high price
must be exacted for the meat pro-
duct TO make up this item Of cost
OF production But the money paid
by the packers for this transpOrta-
ticn and handling service comes di-
rectly back 10 the packers pockets
because of the ownership Of stock
81 the railway system.
By-prOduCts Profitable.
This Is but one of a series Of
methods alleged by the commission
10 I've used 20 add 10 the price the
public must pay for food. Further
more. the commission says it has
evidence that the packers realize
sufficiently large profits from the
manufacture and sale Of meat by
products. such as rendered fats.
hides. skins. hair and bones to en-
able them to sell the actual food
meats for much less than apparent
cost and yet wax rich.
I'm addition. the food com bine now
IS extending into other lines besides
meat Through interlocking corpor-
ate control. il is alleged the same
interests which control the meat
situation. have a firm grasp on
many other food supplies and par
ticipate largely in the profits from
sales 20 the public.
Prosecutions Likely
In all probability there viii be
prosecutions Of the food dealers.
shortly following the close OF the
commissions Investigation. As there
is declared by officials OF the COM
mission 20 be an overwhelming
amount Of evidence against them in
their possession The commission
will not permit any persons involv-
cd In these proceedings 10 obtain
immunity by testifyinE
The investigation now i'm progress
here later will be transferred to
Boston. New York and Chicago.
Refuse Records.
Swift and company have refused
90 surrender their records Henev
announced at Re opening OF the in
vestigation today and the federal
trade commission viii be forced 10
resort 10 drastic court action TO OBJ
tain them.
G. c. Chase. auditor Of the Union
stock Yards and Transit Co tele-
sraphed the commission today that
he is seriously in and cannot an
swer its subpoena. He has been COR
dered south for an indefinite
period" he said