The daily banner. (Cambridge, Md.) 1897-2008, 1918-07-01
AT MERCY
Of PROF|TEERS
Trade Commission Report Show
Enormous Profits.
PACKERS WORST OFFENDER
The Country's Five Leading Meat
Firms N Last Three Years Pocket
ed $40 100000.

| Washington July l.-Protiteering
! on II tremendous scale i'll practically
| all the basic commodities OF life were
| reported to the senate by the federal
| trade commission as the result of an
| exhaustive investiga tion.
"Inurdinale greed and barefaced
| fraud, ;S we'll as war pressure for
| heavy production" the commission re-
| ported as The causes
| ACCOMPLISHMENTS OF properties were
! made by great concerns When ii be-
! came evident that the government was
| about to fix prices on basis OF re-
| turn on investment, the report says,
and salaries, allowances and expenses
were in many instances padded TO
| show increased costs of conducting
| business
/ The outstanding feature of It's inveS
! tigat.ulI. rhe commission repnried. Nan
| the evidence of d tendency To increase
/ and maintain prices against tnrCcs o.
! competition.
"Of all the big profits disclosed by
! the Investigation" the report says. he
| profits of the meat packers amh those
allied with them. and by The hnir mil
! lers. stand foremost. despite the hN-
| Ing of prices by the government
Manipulation of the marker by the
! five great meat packers
! Swift. Norris. Wilson and CHdahy-
! the commission asserts. embrace
! every device that is useful TO Them
! without regard to law.
The report charges that the five
! concerns have monQpolistic control Of
! the meat industry, and ARE reaching
! for like domination in other products.
! During 1915 1915 and 1917, the re-
! port says, these companies pocket
ed' S14O000,000.
| In the leather industry. the profits
| of one concern jumped from SCH. 900
| In 1914. to $3.5760O0 III 1917. The
shoe business meanwhile showed large
| profits and the report says, lit appears
| that the retailer has profited more in
! proportion than the wholesaler
To show the manner III which 1t is
| charged big concerns reappraised
! their assets when government price
! fixing appeared imminent the com
mission included in its report copy
| of a letter i'll which ii was proposed
| by Swift & Co. to reappraise six tan
! ming companies in which it owns 30
! per cent.
Il approve if done quietly and
/ promptly" was the memorandum Ell
! ward F. Swift placed upon the recon-
/ mendation.
! In the flour industry. the report
says the millers for 1917 will show q
profit of fifty-two cents q barrel, or
nearly 3S per cent on their investment.
| One mill shows a profit of 81 barrel.
! Despite the fact that the food admin
! istration succeeded in reducing profits
| they still were twice rs high In 1917
as in previous years.
The report covers many principal
| basic industries and makes much the
same charges as to exchange.
The senate directed The association
| to make the investigation and report
so 1t could consider legislation 10
reach the practices disclosed.
Outstanding features of the report.
each supported by extensive data,
are:
The heavy profit made by the low
| cost concern under a government fix
ed price for the whole country.
The heavy profits 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.
Price fixing by the government, the
| report says, fastened to prevent the
market from running away. but at the
| same time il srreng henes the stronger
| factors in industry in their position
| and enriches them by profits (which
| are without nrecelent-"