The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1918-06-29
FEDERAL TRADE
COMMISSION rs
ION THE TRAIL OF
THE PROFITEE;RS
Makes Charges Of "Inordi-
nate Greed and Bare
faced Fraud"
REPORT FILED
I'M THE SENATE
Five Packers Are Reported
to Control the Meat
Industry
(By Associated Press.

Washington, June 29.-Investiga,-
lions have led to tine conclusion that
profiteertng exists among American
industries at the present time due
in part to "inordinate greed and
barefaced fraud" the federal trade
commission announced today in q
report sent to THE senate. The re-
port was submitted at the request
OF senate in order that steps might
be taken to remedy present con-
dftions.
Outstanding features Of the re-
port, each supported by extensive
data, are:
The heavy profit made by the low
cost due to a government fixed
price for the whole country.
The heavy profit made by the
meat packers and allied industries
and by the flour millers.
The trade tendency TO increase
and maintain prices against the
forces OF competition. The prod
ucts which the report covers are
steel copper, zinc, nickel, sulphur,
lumber, flour, canned milk and can
ned salmon. Salaries and bonuses
paid high officials also were the
subjects Of inquiries.
Price fixing, by the government,
the reports said, tended to prevent
the market from running away but
at the same time, 1t strengthens the
stronger factors in industry in their
position and enriches them by prof
it's which are without precedent"
Price Is Stabilized.
While the price OF flour has been
stabilized by fixing a prce for wheat
and a maximum margin Of profit
for flour the report shows that
profits increased from On average
Of IL per cent on the investment for
the -four years ending June 80, 1918
to nearly 38 per cent in the year
ending June 80. 1917. These prof
it's" it is stated, ARE indefensible."
Many mtllers exceeded the gov
eminent maximum for profits and to
that extent the profits were larger
and in general, in fact were very
great"
The reports declared that five
meat packers, Armour, Swift, Nor
ris, Wilson and Cudahy and their
and affiliated companies
have nEonopolistfc control OF the
meat industry and are reaching out
for Like domination in other prod
ucts. Their nlanipulations Of the
market embrace every device that is
useful to them Without regard to
law THEM reward Expressed in
Eerrns of profit, reveals that four OF
these concerns have pocketed in
1915 1916-1917 $140,000,00 How
ever delicate a definition is framed
for "prodteering, these packers
have preyed on the people.
=
industry reveals in the opinion Of
the commission that despite govern
naent price fixing large margins Of
profit have been made.
Steel companies made abnormal
profits before the government fixed
a price for the product, and it is
shown that some have since made
returns. Profits of the Uni
ted States Steel corporation are
estimated, 24.9 per cent in 1917 as
with 1876 per cent in 1915
and 90 per cent in 1915. In prac-
ttcally every one Of the other in
dustries covered by the report it is
shown unusually heavy profits have
been made.
Chicago, Ill, June 29.-Armour &
Co. today issued a statement re-
ferring to the report Of the federal
trade commission for which Francis
J. Honey was attorney, as designed
to Impress the headline readers"
eff a profit of one quarter of a
cent on a pound Of product which
q government. audit shows we make
is profiteering then there is no hon
est business in the world, for no
successful business in the world
makes smaller profit per unit OF
product" says the statement.