New-York tribune., 1918-08-09
Packers Accused Of Monop-
olistic Control of Essen
tial Food Supply
New York Bankers
Involved in Charges
Report Is Made Public
Through White House
Without Any Comment

WASHINGTON, Aug s.-Investiga
tion of the packing industry of the
country by the Federal Trade Com
mission eliminated to-day in an an
nourcement that the commission had
recommended to President Wilson that
the Government commander and op-
crate for the public benefit stock yards
cold storage plants, warehouses and
refrigerator and cattle cars.
Monopolistic control of the essential
food supply not only of the United
States and its army and navy, but also
of the Entente countries, was charged
by the commission against the nve
great packing companies Swift, Ar
mour, Morris. Cudahy and Wilson. The
last named company, the commissions
report said, is controlled by three OF
the strongest banking groups in the
United States-Kuhn, Loeb Co., the
Guaranty Trust Company and the
Chase National Bank.
Further close affiliation between the
packing industry and financial inter
ests was reported. The commission
said that in the great financial centres
the packers had representation on the
directorates of large banks through
members of the individual families or
through officers, directors or canfden-
tial employees.
No White House Comment
The commissions report on the
packing industry was the third made
in it's 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 and
had not before been made public be-
cause the President desired first to get
full information.
Basing its statement on great vols
ume If evidence examined, much of it
taken from the confidential files of the
pockinc companies, the commission
said the power of the five packing com
panies "has been and is being unfairly
and illegally used" to
Manipulate livestock markets.
restrict interstate and irtcrnation-
al supplies of food, control the
prices of dressed meats and other
foods, dcfraud both the producers
of food and consumers, crush ei-
fective competition, obtain special
privileges from railroads, stock
yard companies and municipalities,
and profiteer.
"Whle we have found" said the COM
uission's report to the President, and
will disclose to you, an intricate fabric
of 'monopolies, controls, combinations,
conspracics and restraints which
would seem to indicate similar COM
pick and minute system of legislative
or administrative remedies, we believe
that an adequate remedy may be more
simply arrived at.
1--WE believe that if the fundamental
and underlying evils are rooted out
the whole structure of conspiracy, con-
troll, monopoly and restraint must fall
"If these five great concerns owned
no packing plants and killed no cattle
and still retained control OF the in
struments of transportation, of mar
keting and storage, their position
would be no less strong than it is"
The commission then recommended:
~U That the government acquire,
through the railroad administration,
all rolling stock used for the trans
portation of meat animals, and that
such ownership be declared govern
ment monopoly.
through the railroad administration,
the principal and necessary stock
yards of the country. to be treated as
freight depots and to be operated un-
der such conditions as will insure
open, competitive markets, with uni
form scale Of charges for all services
performed, and the acquisition or es
tablishment of such additional yards
from time to time as the future de-
velopment of livestock production in
the United States may require. This
to include customary adjuncts Of stock
yards.
"(S That the government acquire
through the railroad administration,
all privately owned refrigerator cars
and all necessary equipment for their
proper operation, and that such owner
ship be declared government monop-
oily.
"(4) That the Federal government
acquire 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 cen
tres of distribution and consumption.
The same to be operated by the gov
ernment 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. Supplementing the marketing
and storage facilities thus acquired,
the Federal government to establish,
through the railroad administration,
at the terminals OF all principal points
OF distribution and consumption cen
trail wholesale markets and storage
plants, with facilities open to all upon
payment Of just and fair charges"
Nation Held Responsible
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 in
L