Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1919-01-23
Counsel For Packers
Asserts Clients We're
Gagged in u. S. Inquiry
Claims Federal Trade Com
mission Refused to Give
Industry a Chance to Pre-
sent Own Side of Case
Louis Swift Takes Stand.

dIIdCheu dI IOudy . AcdiA1l6 "a eAAS
house interstate commerce committee
on legislation to regulate the meat
industry in accordance with the COM
missions recommendations. Levy
Mayer, counsel for Armour & Co.,
was on the stand discussing the con-
stitutionality of the bill and the COM
missions inquiry.
when the federal trade commits
sion took testimony and found a YER
dict of guilty against the packers, do
you mean to say your clients were
given no chance to reply?" asked
Representative Sanders Of Liuisiana.
None whatever" Mr.. Mayer re-
piled.
"You don't mean to say that when
witness took the stand to give dam
aging testimony against your clients
you were not allowed to question
him."
II was not allowed to participate in
the hearing at ALL"
'You were not allowed even to
establish the credibility of the wit
nesses -
mo"
"Then what credence can we g,ve
to these findings?" continued Mr..
Sanders.
None whatever"
DO you mean to say that the fed
eral trade commission undertook to
investigate great industry without
giving the industry chance to pre-
sent it's side?"
Absolutely none," Mr.. Mayer said.
He. said that some departments Of
the government were unmindful that
the powers Of congress in peace was
quite different from its powers in
time Of war, and that situation
which no longer exists was the inspir-
ing motive for the legislation under
discussion
IF you can regulate private indus
try, such as the packing plants, then
you can regulate the manufacture of
hairpfns,s rubber boots. everything"
he asserted, ''and it won't be long be-
fore you have every dissatisfied ele-
ment in the community appealing for
the great panacea of congressional
= 5:-&s,9a =. Z.
I The licensing provision Of the bill
was declared the most drastic be-
cause It entrusted to one man. the
president, the right to issue and re-
woke licenses. Mr., Mayer said the
power given the government to pur-
chase and publish market newspa--
pers staggered the imagination and
might lead to powerful political In
fluence.
Representative Barkley Of Ken
lucky defended the commission and
Mr.. Mayer agreed with hom that 1t
had instituted it's investigation under
direction of the president! Mr..
say whether the commission had act
ed illegally.
"No law covers the case, but I
think the commission acted unfair
and anything that is unfair is illegal,
Mr.. Mayer replied.
| Louis F.. Swift, president OF swift
&; Co., followed Mr.. Mayer on the
stand. He said that Swift & co; made
only 1.76 per cent. on each dollar OF
sales in the fiscal year 1913, when
they were under control Of the food
administration. while in the year pre-
yious they had made 1898 per cent
Mr.. Swift submitted an affidavit to
show that the firms total pupnclty
expenditures had been $1,7OO,Oo0 IN
twelve, months ended November q
1918.
Pleaded for Hearing.
| 1T made three trips to Washing.
ton to plead for the opportunity, pu'
they refused and gave no reason
They sent scores and SEQ res ., OF ex, x,
i aminers to go through the files. OF
| Armour e. Co., and took many let
ters."
"Of course they took all the letters
to Show the context?" Mr.. Sanders
interrupted.
'They did not" Mr.. Mayer an
swered.
The witness said mistaken infer
ence drawn from one letter referrint
to an agreed price on lard compoune
was due to the failure Of the com
mission to take other letters which
would have explained that the price
was fixed by the food administration
and not by the packers.
1T is the most remarkable thing
ever heard of In my life." Mr.. San
ders remarked, as he finished hi
questioning.
Drastic. war measures were givel
by Mr.. Mayer as the reason for al
acute tendency in. legislation. o
an example.
! Swift Testifies.
\ Testifying before the house com
! mittee, Louis F. Swift, president o
Swift &Co.. asserted that such legs
iation as is proposed in the Sims ant
|Kendrick bills would cripple tn
packing industry. He assailed the re
port Of the federal trade commission
as grossly unfair. He said that tn
Hearings conducted for the commits
sion by Francis j. Heney were one
sided in that the packers were no
|allowed to answer any Of the allesa
tions made against them.
4 The witness charged that after al
investigation of more than = year tn
4 commission was nuable. to deny tina
the profits Of the packers were 81
small that they could be wiped ou
without affecting the price Of live
! stock ori the price OF meat by NOR
4 than a fraction Of cent pound
.,'This profit continued Mr.: Swift
|''fluctuates from week to week. an
! often becomes q loss. During 3:
weeks of the year ended June 81
11s1s, for example. Swift & Co. eithe
made no money at all or suffered. al
4 actual loss on its beef operations.
The witness denied that there wa
4 any combination Of packers, and as
serted that IL there was 1t could no
lprevent losses. u
Cars Operated 1T Loss. !.
4. '.The only thing that ID wrong witt
the packing business is the public I'm