Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1918-01-30
Elimination of Small Con-
Germs Going on Continual
ly, Says Heney.
BIG CAN
STAND THE LOSSES
Letters Introduced to Show
That Competition is Elm
mated by big Five"

Washington. Jan. 3o.-Diniculties
Of independent packing firms in ON
peting with the big Five" occupied
today's session of the federal trade
commissions hearing.
The commission and the depart
ment Of justice both have the power
to prevent alleged unfair trade prac-
petitors out Of business. Francis j.
Heney, special counsel, declared aft-
er reading af11davits from independ-
ent' packing firms, charging price cut
ting by the big firms. "~"f'
II have tried to make it clear to
all the small firms that the commits
sion and the department of justice
have such authority" Mr.. Heney told
the commission.
desire" intertected Commissioner
Elimination Continues.
elimination Of the small packers
Is going on right nov while this in
vestigation is in progress" Mr.. Heney
replied. There are only two inde-
pendents left between the Rocky
mountains and the Mississippi river,
one In Ottunlwa, Iowa, and the 9TH
.er in Austin, MINI.
'"Their territory has been appor-
toned among. the big packers in All
effort to put them out OF business and
out the Minnesota plant. I have EVIL
dence On that to introduce later. APP
parently nothing will stop the big
packers except the big stick landing
on them"
Sold Much Lower.
An affidavit from c. w. r. Thelan.
general manager of the Reiland
Packing company Of Grand Rapids,
Wis, charged that the big packers
sold for lila to 1912 cents a
pound in competition with the Reil-
and firm the same beef which they
priced at II 1-2 to IS cents in terri
tories where the Reiland firm did no
business.
That's price discrimination" said
Commissioner Murdoch. g
y 1.-THE big packers can afford to
stand: Local losses for ten years IL
necessary to put, a competitor down."
Mr.. Heney replied. because their
profits elsewhere more than take care
of such losses" .
Competition Gone.
With the intention of showing that
competition between the big packers
virtually has been eliminated by un-
derstanding regarding all business.
three letters were introduced con-
corning a proposal to go into the Ell
Paso market. Arthur Meeker, vice
president of Armour & Co., wrote
Louis +. Swift. March. IS, 1915. ask
ing: How do you feel about our
going to Ell Paso?" Swift replied he
think the Ell Paso connection
was important tfors .fthe Fort ,Wolsth.
stockyards. A. memorandun FROM
II. Swift to Louis F.*Swift, dat
ed October 81. 1916, gave a list Of
trans-shipments of cattle said to have
been made by various big packers.
Mr.. Heney introduced this, he said.
with the intention Of showing that
there were more cattle at these points
named than needed by the big pack
ers and hat the existence of other
Independent firms was ~justifable.
'Ip trans-shipping cattle. the pack
ers were going in the face of eco
nomic law and adding to the cost to
the consumer" Commissioner Muir
dock remarked.
All the great packing houses were
given $500, 600 of stock in the Cleve-
land stock yards last year after they
had threatened to establish a yard
there themselves, Attorney Heney for
the federal trade commission declared
at the packers hearing here today.