The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1919-08-25
THE PUBIIC,s ABOUT FACE.


So quick and marked a reversal OF
public opinion has seldom been seen
in this country as that resulting from
the proposal for government control
of the meat packing industry. In the
hearing before the agriculture COM
nittee on the Kenyon bill, witnesses
from nearly every class of citizens.
except the wholesale grocers, have
appeared in opposition to the meas
ure. Yet but a short time ago public
opinion appeared to be almost unani-
nous in the belief that the packers
activities should be curbed.
There are four bills now in the leg
islative mill at Washington which are
fraught with serious possibilities for
the millions OF dollars invested in the
packing industry. The bills are Sen
ator Kenyon's and Senator Hendricks
with their counterparts in the house.
They are so drastic and represent so
big a step in the direction of state So
cialism that it is hardly possible they
will pass. at least in their present
form. Nevertheless. as they have the
backing OF the federal trade commits
sion. they must be regarded as a seri-
Gus effort to hobble the packing in
dustry.
For the information OF shareholders
the packers have prepared a leaflet
showing how the Kenyon bill would
affect the owners of the stock of these
companies. from which is quoted the
following:
The proposed legislation. by singing
out the packing industry, would dis
credit this industry in the eyes OF the
public. and would undoubtedly affect
the value OF TIC stock.
1t would be step in the direction OF
government ownership. but in the
meantime the packing industry might
he sta rived. as in the case of the rail-
roads, and brought to the verge OF
bankruptcy.
There are grave dangers in the II.
censing systems proposed. The bill
requires every packing company to
take out license and gives the secre-
tary OF agriculture practically blanket
powers to regulate the industry as he
sees fit.
The packers would be deprived of
part of their earning capacity by be-
ing compelled to dispose OF their in
terests in stock yards.
BY taking away the refrigerator
cars, the orderly and rapid distribu-
ton of products would be interfered
with.
The power to say what products we
may or may not handle might serious
ly affect our operations.
The proposed legislation Is unneces-
sary. The evils that it attempts to
cure do not exist.
While accused at one time or an
other of about every offense in the
catalog of crime. the packers have yet
to be charged with inefficiency. On
the other hand. there is nothing in the
record OF government operation of
either the railroads or telephones
which promises results in government
operation of so highly complicated an
industry as the packing business at all
comparable for efficiency with pri-
vate management. The packers have
shown that they do business on a
profit margin of one-half cent a pound
on meat or per cent on gross sales.
Last year Swift & Co. earned for divi-
dends $21. 900, 900 on sales of $780,
900. 900. The United States Steel cor
earned 100000.
Passage of the Kenyon bill would,
in the case of the big packers, mean
disintegratlon. They would have to
divest themselves of their stockyards
and refrigerator car interests. and
possibly their holdings in subsidiaries
distributing food products other than
livestock. Recalling the Standard oil
and American Tobacco precedents
this would probably inure to the ad-
vantage of packing company stock
holders. but il is difficult to see where
the public would gain.
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