The sun., 1919-09-25
PACKERS PROFITS
TREBLED, CHARGE
Federal Trade Commission
Tells Results Of Inquiry in
Report to Wilson.
HOOVER VOICES PROTEST
Asks Withholding of Find
ings, Which He Criticises
as Destructive.

WASHINGTON, Sept 24.-Despite licens-
ing and other restrictions imposed on
the big Five" packers during the war
their profits were from two and a quar-
ter to three times as great as during
pre-war years, the Federal Trade Com
mission found during its investigation of
the packing industry, as set forth in a
report to President Wilson under date OF
June 28. 1918.
The report, which was not made pub
lilo, Food Administrators Hoover having
requested It. be withheld. reached the
Senate to-day in reply to request un-
der Senate resolution introduced by
Senator Norris (Neb.). Accompanying
II were copies Of letters sent by Mr..
Hoover to the President Directing to the
commissions conclusions and asserting
that no useful purpose Is being served
by public ventilation of interdepart-
mental disagreements as to Government
tai policy"
At Senator Norrls's request all the
documents were referred to the Agri-
culture Committee. which Is now con
sidering legislation providing for Fed
eral regulation of the meat packing
industry.
The commission in It's report charac-
terized the packers maximum profits rs
being "unreasonably high" and asserted
that the Food Administrators plan OF
, regulation makes impossible adequate
safeguards to the interest of the public
Recommendations made by the COM
mission inclujed
THAT net worth (actual invested cap
ltal represented by stock issued and
surplus), as OF November /, 1917, be
the basis upon which the allowed rate
of profit be computed for all packcrn
large and small.
That the normal rate for the five
| chief packers be per cent. on mel
| worth, with u per cent. increased al
lowance for every 10 per cent increase
in weight slaughtered and u per cent
decrease in rate for every 10 per cent
| decrease In weight slaughtered tn,
maximum profit allowed not to go abov,
Q per cent
THAT the maximum allowed tn,
smaller packers be Q per ,cent.. IN
creasing on a sliding scale to IL PEI
cent. but without decreasing scale.
THAT profits in excess of the pre-
scribed rates be either turned over I,
the Treasurer of the United States OF
applied against further Government pur
chases"
| In his letter to the President, dated
July s. 1913, Mr.. Hoover added:
| "If Congress passes sufficiently stroni
excess profits legislation II will auto
matically correct the situation and NEE
the views OF both the trade commission
and ourselves. My proposal is that tn
whole matter shall be laid aside unit
the action Of Congress Ii determinable.'
In another letter Hoover said:
THE Food Administration regulation
permit earnings upon borrowed as wei
as packers own capital: whereas thu
trade commission proposes that M
profits should be allowed on borrower
capital. This appears to US to strik
at the base of most business enterprises
j "A we understand It. large part o
the commerce and trade of the countr!
is founded on the earnings of an excess
sum or borrowed capital over the bar
interest cost, and we feel that II thi
principle proposed by the trade com
mission were laid down as a preceden
It would produce an absolute state o
panic in the United States"