The sun., 1918-08-01
CITY BANK SCORES
TRADE COMMISSION
Declares Charge Of PrOfiteer-
ing Against Meat Packers
Is III Considered Talk.
REPORT ALSO MISLEADING
Circular Says Country Is Try
ing to Do Business En-
cceding It's Facilities.
REPORT ALSO MISLEADING

Poundly scoring the Federal Trade
Commission for the manner in which IL
has handled the business situation OF the
nation In respect to prices ana pronts'
the National City Bank In Its August
circular declares that the subject Is
one which should be treated oflciaiiH
tn a temperate manner" and tnat ~,
Considered utterances under the coior Oh
authority" have tendency to thto"
sand into the bearings at time "heh
the highest efficiency is needed
Particular reference Is made In the
circular to the recent report OF the coi'-
mission on their investigation INTO rue
activities OF the meat packers me
large meat hackers come In for the most
severe denunciation.' the report ue-
clares and continues: "FlNe concerns
who are named are said 10 nave NJ
nopolistic control of the meat Industry
md m no eaching out FOR like domina-
ton in other products. and their mani
nuIations of the market embrace every
device that is useful to them, without
regard to law However delicate
definition is given OF profiteering.' says
the commission, these packers nave
rreyed upon the public unconscion-
ably
1.-THE commission report COlN!HuVS
the circular, tells nothing about the
profits Of the meat packing companies
that was not known to everybody who
reads the printed reports sent TO their
thousands Of stockholders and summar-
,zed in financial columns, but II makes
emissions ond comments which misiead
a reader unfamiliar with such affairs
and without other sources of informa-
ton. All emphasis is laid upon aggre-
gate profits. but among business men
the test OF whether business profits are
large or small Is in their relation to the
volume OF business handled. the capital
employed and the character OF the ser
vice rendered. Judged by these fac
tors the meat packing industry for
many years has made a remarkably
creditable showing"
Prohteering Not Easily Defined.
"Profiteering," the bank adds. lis
something readily denounced but not so
easily defined. and all those who dis
course upon the subject have not demon
s,rated their capacity to Judge Of profits
with practical sense and discrimination.
In theory there would seem TO be a
field for the Federal Trade Commission
IN which useful work might be done. Its
functions are supposed TO be those OF a
semi judicial body. with powers to in
vest!gate competitive practices and other
business methods and conditions. with
view to procuring for the public an
authoritative and reliable account OF
such AFFAIRS in order that largely by
publicity and party by legal procedure
fair play and honest dealings may be
maintained as rule in business life and
unfair and dishonest practices sup
pressed"
Business" the bank declares. lis
being done at the present time under
great difficulties and uncertainties and
profits are not closely calculated In ad-
vance Up to this time fortui-
tous circumstances have been favorable
20 profits, but experience has taught that
the profits which come under such condi-
tons are needed in the long run 10 meet
the losses which come IN the same man
Mer The favorable turn of year does
rot warrant a departure from the usual
business methods. nor can ideas which
no one adopts in his own affairs save
under exceptional circumstances, OF
which he would insist upon being the
sole Judge. be successfully set UP as an
official standard Of conduct.
Money Getting Tighter.
With respect to the money situation
the circular says that the banks in the
interior. being generally loaned UP, are
unable to meet the fall demands for
money and are passing the demands for
accommodation either to the Federal Re-
serve banks or to their New York corre-
spondents. The tendency of money to
work tighter. II says is something Of a
disappointment, but the heavy demand
is ascrhed tn the more rapid movement
Of wheat to market, the farmers having
no inducement under fixed prices to hold
back the product, and to the country's
attempts to do greater volume Of busi-
ness than It has the facilities or the
labor for doing. The bank says:
Money Is quotably on about the same
basis as a month ago. The tendency
however. has been for money TO work
closer all over the country which is
something Of n disappointment. as It was
hoped that after the June tax payments
and with third Liberty Loan payments
out OF the way, there would be little
respite before the fall demands were
felt This has not been the case Re-
norts from the interior show that the
banks are generally loaned up. and in
position where they feel that future de.
lnands upon them must be passed up
either to the reserve banks or to city
correspondents.
The wheat crop is moving to market
rapidly, as under the fixed price tAs
farmers have no inducement to hold Il.
and this Is nslA.ng a heavy demand for
credit. On the other hand there should
lie soon n corresponding relaxation of
pressure n the winter wheat territory.
hut 1t has not yet begun TO show. The
distribution of $75O,00O.000 of Treasury
certificates bi-weekly (only $500, 600, 900
IN last instalmenD to the banks raises
numerous appeals for assistance. based
upon the plea that rediscounting Is i'm
peratiVe in order that they may take
care Of local business. Usually they ex-
plain that they are turning down every
thing but the current requirements OF
trade which they assume must be met
This, however. is the very cruX of the
whole situation. The country is trying
10 do greater volume OF current bust
ness than 1t has the facilities for doing"
DnAn,o YrYNn y 4