The Washington herald., 1918-08-09
PACKERS VAST
PROFITEERING
NOW EXPOSED
Conspiracies and Illegal Re-
straints Laid Bare IN
Commission Report.
CURB BY U. S. CONTROL?
Relief Suggested Is Govern
ment Ownership Of Roll
ing Stock, Etc.
CURB BY U. S. CONTROL =!

ing otock, Etc.
Profteering on gigantic scale Is
shown in the summary of the report
of the Federal Trade Commission on
the packing Industry released yester-
day by direction of the President OF
the United States.
Monopolies, controls. trusts. combi-
nations, conspiracies or restraints OF
trade out Of harmony with the laws
and the public interests are conclu-
sively proved, according to the letter
to the President which prefaces the
abstract of the evidence.
Relief by Control.
The method of relief from this
packing industry monopoly, which at
the present rate of expansion would
in a few years control the wholesale
distribution of the nations food
supply" and which Is sending out its
tentacles for the food supply Of the
world, is stated by the commission to
be government ownership through the
Railroad Administration Of all rolling
stock, stockyards, cold storage plants
and other properties needed in the
handling of food supplies, especially
meats, throughout the United States.
I'VE have found" says the COM
mission report, IAN intricate fabric OF
'monopolies, controls, combinations,
conspiracies and restraints. which
would seem to indicate a similarly
complex and minute system Of legis-
lative or administrative remedies. but
we believe that an adequate remedy
may be more simply arrived at.
IF we are rightin this judgment.
the task of applying legislative and
administrative remedy is greatly sim
plihed.
Five Are Dominant.
'It appears that five great packing
concerns of the country-Swift. Ar
mour, Morris, Cudahy and Wilson-
have attained such dominant positions
that they control at will the market
in which they buy their supplies. tic
market in which they sell their prod
ucts, and hold the fortunes of their
competitors in their hands.
Not only is the business Of gather
ing, preparing and selling meat prod
ucts In their control, but an almost
countless number OF by-product in
dustries are similarly dominated; and
not content with reaching ont for
mastery as to commodities which sub
stitute for meat and its by-products
they have invaded allied industries
and even unrelated ones.
I'VE have followed these five great
corporations through their amazing
and devious ramifications-follow
them through important branches of
industry, Of commerce and of finance
we have been able to trace back to
its source the great power which has
made possible their growth.
I'VE have found that it is not so
much the means of production and
preparation, nor the sheer momentum
Of great wealth. but the advantage
which Is obtained through a monopo-
listic control of the market places
and means of transportation and dis
tribution."
Would Eliminate Monopoly.
In the body Of the report some fig-
ures are given on the results Of the
profiteering Of the Big Five monopoly.
with the thought that the road to
reasonable food prices lies in the d.
rectIon Of the elimination of monop-
oily, the curbing OF unfair practices
and the assurance of a fair and rea-
sonably stable market, the commits
sion here gives a relatively small
space to the question of profits and
costs.
There is no doubt that the pack
erS profits. particularly since the be.
SHINING Of the European war, hav,
been enormous. both in the United
States and in foreign countries. Meas.
ured by pre-war profits, the 1871
profits were $50 per cent greater thar
in the average of the three years be
fore the European war; measured b,
the amount of sales, they averaged II
1917 46 cents on the dollar, which wa!
sufficient to produce for the Eve com
panies a total profit of S96, ,1S2, 900
measured by the net worth Of tn,
combined corporations Capital stool
plus surplus). they averaged in l91'
us per cent: measured py the capita
stock. outstanding. as an indication oI
the dividend possibilities, they aver
aged in 1917 Ss.5 per cent. and meas.
ured by the packers actual ILvest
ment of new capital. they amount Il
several times even this last figure.
Accounts Conceal Profits.
All lnese are m1n1murn figures, fol
the reason that the packers account.
are so constructed that they concen
profits rather than reveal them. Their,
are numerous secret reserves there
are endless transfers Of material from
department to department at fictitiou.
or arbitrary values. and there are al
sorts OF improper items charged in a!
expenses. ranging from I.ems prop.
eriy chargeabie to capital to improper
payments which have no place in an,
business"
The effect Of the activities of tn,
Big Five i taken up in the first snc.
tion Of the body Of the report. Th,
power Of the monopoly is being usct
unfairly and illegally, the report dc.
clares- ito manipulate live-stocix mar
kets; to restrict interstate and in.
ternational supplies of food: TO con.
troll the prices Of dressed meats snt
other foods; to defraud both the pro,
ducers OF food and the consumers: 4
crush effective competition: TO secnr,
special privileges from railroads
CONTINUED ON PAGE TWO.