New-York tribune., 1918-01-31
Packers Hearing
Is Halted; Heney
Seeks Secret File
He Goes to Chicago to
Search Sealed Vault for
Big Firms Records
independence 'mplain
Charge Unfair Tactics; Rec
ord Of Trusts Capital
Agent Revealed

WASHlNGTON, Jan. 30.-Readlng Of
letters and documents from the con-
fidential files Of the Chicago packers
into the record Of the Federal Trade
Commissions meat packing hearing
ce1nc to sudden halt late to-day to
permit Francis J. Heney, special coun-
ael, to return to Chicago and direct
the search for further material.
Henry Veedcr's vault, containing the
correspondence Of the lawyer who was
characterized by Mr.. Hency as the
"clearing house" for the joint opera
tions of the packers. has been sealed
by Hugh Mc1saac, the commissions ex-
aminer, who obtained most Of the
documentary evidence already intro
duced. Unless Veeder reconsiders his
refusal to permit the examination Of
his papers to continue, court action
will be taken by the commission.
Before Veedcr decided the examiners
could not continue their search they
obtained documents which Mr.. Heney
said were SO important as to justify
termination Of the hearings here and
his leaving for Chicago tomorrow to
direct the investigators, who arc dig
ging into the files Of others Of the
packers counsel as we'll.
Small Firms Driven Out
Methods pursued BY the big packers
in connecting with smaller firms which
Mr.. Hcney declared virtually had
driven many Of tic latter out of busi-
ness, and the activities of Colin II.
Livingstone, Washington representa-
tive Of Armour & Co., were described
in documents put into the record to-
day.
When the afternoon session of the
hearing began, it was announced that
Mr.. Livingstone, who was expected to
testify, could not be located, but A. B.
Adams, an examiner for the commits
sion, took the stand to identify letters
taken from his files in the bank of
which he is c-president. An original
draft of one Of Mr.. Livingstone's let
tcrs said:
"In the fall of 1914 and during 1915
and 1916 I rendered valuable assistance
in connection with the settlement Of
the claim Of the five large packing
government. Practically everything at
the inception of the negotiations hap
pcncd because Of representations I per-
sonally made, direct and sometimes
through the Canadian government,
where I had recognized influence
through my intimate friend, Sir Thomas
Shaughnessy. now Lord Shaughnessy,
and the Governor General of Canada,
who Endorsed my efforts.
al !, IL
crs) had repeatedly expressed himself
in most favorable terms toward recog-
milton of my services in this and other
connections where the benefit vas
mutual and general"
Mr.. Heney told the commission that
the "other connections" referred to up-
doubtedliy meant Mr.. Livingstone'e SER
vices against the passage of the Bor~
land resoltion for an investigation Of
the packing industry.
Telegram Tells Of Senators
A telegram from the legal depart
ment of Armour & Co., dated August
3, 1916, instructed Mr. Livingstone:
"You will please represent Armour &
Co. III munltion matter, and get in
touch with Stone and our two Senators
this matter is the fact that we are
supplying munition manufacturers with
large quantities Of lint and fibre"
Difficulties of independent packing
firms in competing with the "big five"
were considered at the morning ses-
sion.
The commission and the Department
Of Justice both have the power to pre-
vent alleged unfair trade practices in
an effort to put small competitors out
of business Mr.. lIeney declared, after
reading ailidavits from independent
packing firms, charging price cutting
by the big firms.
ILLUMINATION OF the small packers is
going on right now while this invest-
CATION is in progress" Mr.. Heney
added. There are only two indepcnd-
ents left between the Rocky Mountains
and the Mississippi River; one in OF
tumwa, Iowa, and the other in Austin,
Mimi.
"Thcir territory has been apportioned
among the big packers, in an effort to
put them out OF business, and Wilson
& CO. have been trying to buy out the
Minnesota plant. Apparently, nothing
Will step the big packers except the
Dig stick landing on them"