The Washington herald., 1919-01-30
DENIES PACKERS
LIABLE FOR VAST
STORES OF MEAT
Swift Has No Theory on
Why Prices Stay Up De-
spite Plentitude.
WILSON TELLS OF RISE
From $40 Clerical Position
He Went to Head Of
Great Industry.

Testimony at the Congressional
hearings on the bills to regulate the
packing business was given by
presidents of three of the five big
companies yesterday. Louis f.
Swift, president of Swift and Com
pany, appeared before the Senate
Agriculture Committee. Thomas L.
Wilson, president of Wilson and
Company. and Edward A. Cudahy,
president of Cudahy and Company,
were heard by the House Interstate
Commerce Committee.
Citing figures showing a large
surplus of foodstuffs Senator Nor
ris demanded OF Louis F. Swift why
prices do not come down.
Norris read an Albany IN. " ware
house report, showing storehouses in
that State are overfiowing with accu-
mulated foodstuffs.
Packers Not to BIame.D
You can't blame the packers" Swift
retorted. Large packers are not espe-
cially involved. as they don't own
over 10 per cent OF the stored food
referred to-"
Swift added that prices already are
somewhat lower.
Norris repeated figures showing
that fish stocks doubled while the
price went up at the same time.
q don't know about fish" Swift
! explained.
ut is also true of other food
stuffs." Norris continued. These fig
ures are for New York State. and
l want to know if they are typical
of the country generally"
Not exactly. because New York
is a seaport" Swift replied.
Warehouses are full" Swift ad-
mitted, but n lot of it is meat for
England which is waiting for
steamers. 1t makes an unfortunate
showing" Swift explained.
Rose from Minor Position.
! How he rose from a minor clerical
position paying $50 a week TO the
presidency of one OF the big five
packing companies with an annual
, salary of $4,000. was told by Thomas
/ L. Wilson.
Unlike the presidents OF the four
other big packing companies who have
appeared before the committee, Mr..
| Wilson did not fall heir to his posi-
| ton
Wilson's only manifestation Of feel
| ing came when he denied the truth
of statements which he said Mr. He
ney had made concerning operations
I of Wilson and Company. He declar-
! ed that in the period of nearly three
years that he had been identified
with his present company it had not
been a party to any agreements or
understandings with other companies
nor had it conspired with other or
! ganizations TO hamper activities OF
| independent packing companies.
! Mr.. Wilson said that he became
president of Wilson and Company
! in March. 1916, when the property
of Sulzberger and Sons Company
was taken over. At that time, Mr.
Wilson said. the stock of the latter
company had been offered for sale
at ) cents on the dollar. He was
given a salary of 3125.OOO per an
mum. s1,J0O.000 stock in the com
pany and also an option on $4,000
| 600 of the stock at 10 cents on th'
dollar. This option has since beer
closed. In 1915 Sulzberger and Sons
| Company did a business of Sl22.OOO.'
600. while last year the total bust
ness of Wilson and Company
amounted to almost $500, 100000.
( Deem. Cooperation Need.
| According to Mr.. Wilson. there Is
no necessity for additional leGlsla'
ton for the packing industry but
rather for corporation between the
! government and the packers. ano
! between the latter and producer
and consumers.
| Right now" said Mr.. Wilson
there is ample legislation to cure
all ailments of the packing industry
but not enough cooperation
Furthermore, an investigation OF th'
meat product from the calf to th'
table would result in great Good
but only harm can come from m
yestigating a slice out of the middle
the packers. and leaving the pro
| ducing and retailing ends alone.
| Cross-examinat tion of Louis SWlI
by Francis ]. Heney was continued
before the Senate Agriculture Com
mittee. Swift admitted that since Tho
declaration of truce by the biz
five in 1890 the profits Of each of th'
fvo concerns had been considerably
greater.
InQuiring as to the larger profits
Heney suggested they were the direc'
outgrowth of the agreement 10 stln'
competition.
"It was because of better conditions
OF the market" Swift replied
Heney read into the record a lettel
written to Swift by f. r. Shugert
manager of the Western Meat Com
pany, in which he recommended cleo
tion Of Jesse W. Lilicnthal. president
of the United Railroads. as vice
president Of the Western Meat Com
pany to quiet the agitation.