New-York tribune., 1919-08-26
Licensing Packers
Will Raise Prices.
Says Swift's Man
Tells Senators Kenyon Bill
Will Cut Production or
Increase Manufacturing
Costs to Meat Consumers

WASHINGTON, Aug. 25. - Fur
ther imitation Of foodstuF prices
would result from the passage of the
Kenyon bill to regulate and license the
packing industry, L. D. II. Weld, man
ager of the commercial research de-
partment of Swift q Co.. testified to-
day before the Senate Agriculture
Committee, whcrc the bill is under con-
side ration.
"The main objection to the BILL" Mr.
Weld said, "is the fact that it was
based upon reports of the Federal
Trade Commission, which are saturated
with glaring inaccuracies and misstate-
ments. This would be serious enough
but the latter does not rest there, be
cause the bill, if passed, will further
initiate the already high cost Of living.
elemental facts in the meat busi-
ness" Mr.. Weld said, "prove that the
packer profit on meat transactions was
about cents on a dollar.
Packer or Farmer"
"The Kenyon bill must either inter
production, or with the packers part Of
the business, if designed to affect the
high cost Of living" he said. "lf the
farmer is hit he viii cut down produc-
tion, which will bring higher stock
prices. II the packer is hit and his
business crippled the result viii be
higher manufacturing costs, and these,
too, Will have to be passed on"
Mr.. Weld paid his respects to Com
smissioner Colver OF the trade commits
sion, a previous witness, remarking that
aggerated and Inaccurate" Swift &
Co. owned no retail stores in England,
and Mr.. Weld said that he had been
unable to find that any other American
packer did.
"Mr. Colver came in here and told
you gentlemen that the five large pack
ers controlled more than rs per cent
of the business in hides" he continued
They handle less than so per cent,
and assure you there Is the keenest
competition.
He told you the packers handled 700
commodities. Let me reveal to you
some Of the processes by which he
reached this figure He mentions as
separate items butterine, oleo and oIeo-
margarine. All three are the same. He
took twenty-three cuts of beef and
listed them as twenty-three items. He
gave 115 items as list of by-products
of cattle dressing He mentioned
thlrty-seven items of sausage.
Cites Issue of Stock
"Mr. Colver made the fiat statement
that the packers have not put any new
capital into the business from outs de
sources since 1904. Swift e. Co. alone
has added $85,000000 new cash capital
from sales of shares"
Mr. Yields statement as to Swift &
COS profits on meat drew general fire
from the committee.
"The packers, controlling the by
products prices, would find it possible
70 switch the figures around in be-
tween the accounts, wouldn't they?"
Senator Kendrick asked
1T would be possi BILE if we were tc
Juggle the accounts and fool our
seiVes," MIR. Weld answered.
Henry Veeder, general counsel for
Swift & Co., Interrupted to say the
company would gladly open its books
TO The inspection of any accountants
the committee might have
1T is the general public impression
that the profits are made and concealed
in the byproducts business" Chair
man Gronna remarked
Books Open, He Says
Our books are run for the purpose
OF showing actual faccs,' Veeder re-
piled.
Senator Capper read from letter
IRON cattle broker on the Chicago
yards to a Kansas stock man, who had
forwarded a shipment of calves to the
Cnlcago market after failing to sell
them in Kansas City. Swift and Ar
mour knew just how many calves there
were IN each load" the letter said, "and
each man had instructions not to bid
on any calves until the head man had
seen them. We got thirty-four of yours
sorted IN special pen. and Swift's
ealf buyer bought them, but when the
mead man found out about il he threat
ened to fire him. There doesn't seem
to be any, way for you to make money
shipping here
Doesn't that show d blacklist against
these cattle which were forwarded ?"
he asked.
mo. there's nothing unfair about
It," Weld responded.
wouldn't it have been fairer to tell |
THIS shipper that he couldn't make any
money by refusing to accept the pack /
ers' price at Kansas City?h
1T would have been collusion then. |
but there's nothing wrong in telegraph
ing ahead concerning shipments. That /
IS proper market information"