The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1918-01-29
Companies Alternated In
Taking Loss to Drive
Out Independents
HAPPENED ONLY
THREE WEEKS AGO
Wisconsin Man Says Stock
of Hides Is Largest In
History
fBx Associated Press.l

Washington. Jan. 29.-Charles h
May, manager Of the Farmers CO.
operation association, and independ-
ent and cooperative packing plants
of Madison, Wis, testified today at
the federal trade commissions near
ing that the five big packers TOOK
turns in cutting prices on beer anu
pork in the cooperative association
territory. so that the latter's sales
were reduced greatly. He said ne
knew from years of experience with
Swift & Co, that the packers prices
were below the cost Of production
"This happened some years ago?'
asked Francis ]. Heney. the COM
missions counsel. -
"It happened this year also, three
weeks ago., May replied.
How is that? Aren't they belng
regulated by the food administra-
ton?
Il haven't seen it,, replied May.
Since the commissions investiga-
ton began, May testified, it has been
impossible to obtain invoices of sales
by the big packers, although butch
ers readily gave them before. The
commission obtained a number by
peremptory orders. May testified al
SO that the grades now We're being
omitted from invoices. Attorney
Heney brought that out with the an
nounced intention Of showing that
the packers took steps to cover up.
their alleged efforts to stifie competi-
ton by making it difficult to COM
pare prices with those OF the inde-
.pendents.
II Difficulties In Marketing.
r. G. Lasater, of Faifurrias, Tex,
testified as to the difficulties In mar
keting livestock which the livestock
men long have contended show an
understanding between the big pack
ers to keep prices low. Mr.. Lasater
said he sent shipment Of cattle to
Fort Worth and received only one
bid, from the Armour buyer He de-
cided to send the cattle to st. Louis
and received only one bid there, from
the same firm. The cattle were sold
to Armour there for less than had
been offered in Fort Worth. He said
he had no doubt that the Fort Worth
buyers telegraphed ahead.
Mr.. Lasater declared that wiring
ahead such information was a COM
mon practice with the packers.
Numerous informal complaints
that cream and cheese factories Of
Wisconsin are being put out OF bust
ness by condenseries established by
the big packers have been filed with
the commission and are being in
vestigated. The fact was brought
out in connection with the loss of
skinned milk for pigs which was
said to be causing serious diminution
in pork supply by sending pigs to the
slaughter houses instead Of to the
fattening pens.
War Industries Only.
The Wisconsin cOmplainants
charge that the condenseries are war
Industries established to take ad-
vantage of the demand abroad for
milk and that the perman-
ent effect on the country will be SER
ious.
Difficulties which the Independent
packers find in marketing their by
products were described by Mr.. May
He said this was particularly true of
selling hides, due, he believed, to in
terests which the packers hold in
many tanneries. He declared the
stock Of hides on hand in the United
States at the present time is the
largest in history so that buyers are
out of the market and prices very
low. He was unable to explain why
the cost Of shoes and leather goods
should be abnormally high.
The premium commanded by the
so-called packer hides over "coun-
try hides" attracted the interest of
the commission. 1t was brought out
that country hides are those not talk
en- off animals by the big packers.
specifications call for
the use Of packer hides in all gov
ernment contracts which was said to
be the reason for the difference in
price between the two classes of
skins. Mr.. May said there was no
difference in quality.
There Is no doubt in your mind
when a country hide comes into the
hands of the packers, that it is sold
as a packer hide? suggested Com
missioner Murdock.
None whatever" Mr.. May replied.
Nor in the mind Of anybody else",
reioined Mr.. Murdock who is in
charge of the commissions investf-
cation into the hide and leather in
1ustry Mr.. May said the independ-
ent packers had difficulty selling
their grease because all the purchas-
Ing houses were owned by the big
packers. He said they could not sell
direct to soap manufacturers because
he believed they were owned by the
same packers.