Arizona republican., 1919-01-25
TWO BIG PACKERS
 FAVOR CONTROL
(Continued from Page One)

members of the committee. Henry Needer. counsed for Swift and com pany. insisted that the expenses came out of stockholders profits and not out of consumers.
 Any expense so unessential is | public injury in business vital to the country. because otherwise you could reduce your prices that much" de- clared Chairman Sims. Tt is sv;h things that have put q bad taste in the public's mouth as 10 the packing industry
 r Mir. Swift said advertisements were placed without any thought of influ- encing the policies of papers.
 At the close of the hearing Mir. Sims thanked Mr Swift for being frank and not quibbling. and said he thought the witness" opportunity given a fair and square" opportunity of presenting his side. MT. Swift said he was positive he had.
 Armour Explains Dividends When he appe Aed before the senate committee Mir. Armour was questioned at length by members regarding prof it's He said the stock dividends Of 400 per cent declared by his company in 1916 was made possible by an ac- i cumulation of surplus since the eS tablishment of the business. but in re- | ply 10 questions, said this was in ad dition to regular dividends.
 Is it your idea" asked Mr. Heney that it's to the consumers and pro ! ducer's advantage if a few concerns i get such a volume that they can ptac- ] tically take care of the country's de- mand?" fx
 Naturally. think so. said Mr. Ar 1 mour. We couldn't do business on such small margin of profit if our 1 volume were smaller
 MT. Armour testified that Armour and company and Morris and company conduct packing plant jointly in Ar gentina, but denied in reply to q ques- tionvIy Mir. Heney, that there was any combination between the packers there in making shipments to England
 Senator Gore of Oklahoma asked if it would be satisfactory to continue the present system of price fixing.
 If price level such as is fixed at present by the food administration could be determined in the future il would be agreeable to the packers
 said MT. Armour
 Did MT. Hoover go to Europe tC secure d larger market for the pack ers?" asked the Oklahoma senator.
 T think he went to determine needs
 of the people there" was the reply.
 Profit of S1 Head Replying later to questions by MT
 Heney, MT. Armour said his company made about one dollar a head on cattle Does that include the profit or
 hides and other by products" Mir
 Heney asked
 Probably not" said the witness Armour's South American compan, made a profit of SIG, ,000, 900 in 1918. MT
 Armour replied in answers to question:
 from members of the committee. bu , all of this and more was expended il : the business there he said , Senator Gronna asked why this sun ! was not included in the profits of tn American corporation which owns tn
 entire stock of the South American x concern. Mir. Armour said it was
 separate company but added that tn s capital invested appeared in the re 1 ports of the American concern. : Then your reports will show smaller percentage of profit than yo 0 actually make" Senator Gronna con 9 tended.
 c That can be satisfactorily explained l but l cant do it just now MT. Armou said.
 MT. Armour will appear before tn committee again tomorrow Edwar Morris, president of Morris and com pany will testify before the hous committee when it meets again Mon day.