Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1919-02-19
Confidential Views Given Wilson Form
Basis of Answer to Collision Charges


Wilson by Herbert C. Hoover six
months ago on the big meat pack
ers was made public today by the
food administration at the direc-
ton OF the president ''to establish
me real position OF Mr.. Hoover and
me food administration on the con-
troll of the Chicago packing indus
tries" In recent hearings before
congressional committees witnesses
for the livestock men charged col
fusion between MIR. Hoover and the
Eve leading packers.
In the report, in response to a re
quest from the president for his
views on the recommendations of
the federal trade commission, Mr..
Hoover said he reafirmed his opin-
ion given nearly a year before that
mere is a growing and dangerous
domination of the nations food
stuffs," and approved some of the
commissions proposals. He rec
commended constructive regulation
rather than stretching temporary
war powers Of the government, and
expressed the belief that the dom
inatton of the packers did not nee
essarily imply wrongdoing on their
part, but was the natural OutgrOwth
"of various factors which need cor
rection."
Favcrs Car Control
Mr.. Hoover accepted as econom4-
cally sound the federal trade com
missions recommendation regard
ing federal control, of animal and
~ fri al
stockyards should be entirely dis
associated from the control of the
packers. He coItended, however,
that wrong practices between buy
ers and sellers would not be cor
rected by the government cOntroll-
ing or owning yards.
His own instinct, Mr. Hoover
said. was against federal ownership
OF the packers branch houses and
cold storage and warehouse facili-
ties. Going into aspects Of the
packing industry not covered by
tie trade commission. he said:
IF proper abattoirs could be en-
tended near the larger towns. pos
sibly with municipal help and the
operations therein protected from
competition, L believe
they would not only succeed, but
would greatly stimulate the local
OF meat animals. One
effect would be a great sterilization
Of prices by a wider based market
than that now so largely depend
ent upon a small group of buyers
Text of Report.
The report to the president fol-
lows:
sept. II; 1918.
Dear Mr.. President:
I'm response to yourNrequest,
beg TO set out my observations on
the recommendation of the federal
trade commission with regard to
the five large packing firms.
Il scarcely need to repeat the
views that expressed to you near
ly year ago, that there is here a
growing and dangerous domination
Of the handling of the nations food
stuffs.
Il do not feel that appreciation OF
this domination of necessity i'm
plies wrongdoing on the part Of the
but is the natural out
growth of various factors which
need correction. In an objective
understanding of this situation, it
IS necessary to review the under
lying economics of It's growth.
AT one time our food animals
" ere wholly slaughtered and dis
Lributed locally. The ingenious
turning to account of the by-prod-
Icts from Strengthening when dealt
with on large scale gave the foun-
tation for consolidation of Slaught-
aring in the larger centers. From
his grew the necessity for specia!
rarS for livestock transport and the
arge stockyards at terminals. The
creation of those facilities were
largely stimulated and to a consid-
cradle extent owned by the pack
ers. Added to this was the appIi-
cation of refrigeration processes
or the preservation of meat, which !
1t once extended the period of pre-
and the radius of distri- |
,ution from the slaughter Centers, |
larger slaughtering nearer |
he great western producing area, |
md further distributed to the CEN |
radiation of the industry. This en- |
arged scope. particularly the re- |
operations. require not |
,nly the expensive primary equip !
nent, but a network of refrigera- |
or cars. icing stations and cold |
itorage at distribution points. This /
ipecial car service in products is of /
he nature of the Pullman service; !
/ must traverse railroad lines in
of ownership and more
,ver, it is seasonal and varies re-
,ionally in different seasons. For
ach railway 10 have foreseen and !
o have provided sufficient of this
tightly specialized equipment is
skiing the impossible. and. in any
vent, no particular railway could
e expected to provide sufficient of
hese cars to answer the shifting
I seasonal and regional demands
utside its own lines
Thus, the provision of a large
art Of the stock yards and car ser
ices has naturally fallen in con-
iderable degree to the larger and
lore wealthy packers who have
sed their advantages as in effect
special and largely exclusive rail-
ray privilege with which to build :,
p their own business.
From the stage of establishment
( a multiplicity of marketing IA
ilities, such as cold storage, ware
OuseS, branch offices, etc. grew
irect dealings with retail dealers
nd finally resulted in a large elm
IL