The sun., 1918-08-09
Says Packers Control Food of
U. s. and Allies and Are
Profiteering.

Morris. Cudahy and Wilson.
Control by Bankers Alleged.
| The last named company. the commits
sions report said. is controlled by three
/, Of the strongest banking groups in the
! United States-Kuhn. Loeb 4 CO.. Guar
anty Trust Company and the Chase Ma
| tionsl Bank
Further close afi,liation between the
| packing industry and financial interests
was reported.
The commissions report was the third
made in its general investigation Of food
! supplies ordered by President Wilson
and Congress last year. The report was
| made public through the White House
| without further comment than that It
| had been presented July S and had not
been made public before because the
| President desired first to get full infor-
| nation.
The commission said tho power Of the
| five packing companies has been and is
being unfairly and illegally used" to:
Manipulate live stock markets.
Restrict interstate and International
supplies of food.
Control the prices Of dressed meats
and other foods.
Defraud both tho producers Of food
and consumers.
Crush effective competition.
Secure special privileges from rail-
roads. stock yard companies and munich
palities. and
Proflteer.
The Recomm n dations.
The commission then recommended:
Il. That the Government acquire,
through the Railroad Administration, all
rolling stock used for the transporta ton
Of meat animals and that such owner
ship be declared a Government monop-
oily.
80. That the Government acquire
through the Railroad Administration
the principal and necessary stock yards
OF the country to be treated as freight
depots and to DO operated under such
conditions as will insure open. competi-
tive markets. with uniform scale Of
charges for all services performed and
the acquisition or establishment OF such
additional yards from time to time as
the future development OF live stock pro-
duction in the United States may re-
qulre. This 10 include customary ad-
juncts Of stock yards
go That the Government acquire
through the Railroad Administration. all
privately owned refrigerator cars and
all necessary equipment for their proper
operation and that such ownership be
declared a Government monopoly.
~ That the Federal Government ac-
qu!re such OF the branch houses, cold
storage plants and warehouses as are
necessary to provide facilities for the
competitive marketing and storage Of
food products In the principal centres of
distribution and consumption. the same
to be operated by the Government as
public markets and storage places under
such conditions as will afford an outlet
for all manufacturers and handlers Of
food products on equal terms. Supple
menting the marketing and storage IA
cilities thus acquired. the Federal Gov
eminent should establish. through the
Railroad Administration. at the termi-
mails Of all principal points OF distrbu-
| ton and consumption. central wholesale
markets and storage plants with fac!ll-
ties open to all upon payment of Just
and fair charges.
Getting U. 8. in Disrepute Abroad.
out of the mass Of information in
our hands" the report continued. "one
fact stands out with all possible en-
phasis. The small dominant group Of
American meat packers are now inter
national In their activities while remain
Ing American in their identity. Blame
| which now attaches to them for their
practices abroad as well as at homo In
evitably will attach to our country II
the practices continue"
The report says:
The commission. through Francis j.
Heney had to meet deliberate falsiflca-
tion OF returns properly required under
legal authority; we had to meet schools
for witnesses where employees were
| coached in anticipation OF their being
| called to testify In an investigation or
| dered by you 1.-THE President and by
| Congress: we had to meet a situation
| created by the destruction Of letters and
| documents vital to this investigation :
| we had to meet a conspiracy"
In detailing amazing and devious
| ramifications" OF the fve great packing
companies the commission reports the
packers control not only the meat sup
| ply but countless number OF by
product industries" and have invaded al
| lied Industries and even unrelated ones.
This control has extended now to the
principal substitutes for meat. such as
eggs. cheese and vegetable oil products.
the commission says. and repidly Is be-
| ing extended to cover hsh and nearly
every kind Of foodstuff.
This control Is made possible by the
advantage obtained through a monop-
olistic control of the market places and
means Of transportation.
The commission dismisses the claims
of the packers TO legitimate competition
among them by saying that some show
! Of competition us staged" but that 1t Ia
superficial
After detailing the control OF the five
! companies over the meat and allied In
dustries the commission says this con-
1 4.
Of Individuals. Ogden Armour. the
Swift brothers, Morris Bros. Thomas E
Wilson, acting under the veto of a group
Of bankers. Including the Chase National
Bank, Guaranty Trust Company. Kuhn,
Loeb & Co.. William Solomon & Co. and