Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1919-01-31
nmcl,cr. Baker and Cnn,llosticls aluknr

Butcher, Baker ana CandIcstick Maker
TESTIMONY which has been given during
the past week before the House and SEN
ate Agriculture Committees concerning tho
activities OF the Dig Five" meat packers
mas brought forth information OF vast in
terest to the American people. Iato the
hands Of these live packers has been con-
ccntrated controlling influence in almost
every branch OF business having to do with
tho feeding of the American people, and in
very many other kinds of businesses besides.
What is even more important. that
the question before Congress is that OF reg
ulating this vast group Of monopoies, is tho
statement, very frankly made on the stand
by j. Ogden Armour, that his ideal would
be TO have in place of tho five big packers. Il
single concern. under such government SUI
pervision as would provide fair margin OF
profit to the owners" He says it would in
sure such further economies in the manage
ment OF the business as would permit high
prices to be paid to the producers OF live
stock. and lower prices to be charged TO the
consumers Of meat.
Evidence brought out in the hearings has
been that the business OF the meat packers
has ramifed TO such extent that. to use the
words OF Mr. Armour himself they deal in
everything from potash to perfumes" In
addition TO killing live stock and packing
meats, they operate their own Stockyar(lS.
which are practically the only stockyards of
consequence where tho producers can market
their output; operate their own fleets Of live
stock cars and refrigerator cars; manufac-
turc fertilizers; engage in the manufacture
OF oleorargarne and OF butter and cheese;
sell poultry. manufacture and deal in cereals
and serums, and manufacture and deal in
canned goods and countless other lines. In
addition. il has been shown, the packers own
large interests III various railroads, upon
which independent packers must depend for
refrigerator cars and cattle producers for
live stock cars; and large interests also in
banks from which competitors might want to
borrow capital.
In the case OF oeomargarine, the case is
particularly interesting. The five big pack
ers, Mr.. Armour admitted under cross-exami-
nation. control SO per cent Of the oleomarga-
rine industry, and Jelke G. Co., which buys
its materials from Armour & Co., % per
cent, leaving Is per cent OF the business to
any competitors, Now tho price OF olco-
margarine. Mr.. Armour said. was controlled
in large measure by tho price Of butter, it
being substitute for butter, and, theoreti-
cally competitor OF butter. Mr.. Armour
vas unable to tell the committee just what
proportion OF the butter industry the five
packers control. but he said 1t was very
large" and admitted that Swift & Co. alone
produced 50,000.00O pounds of 1t a year
lie admitted 1urther that the proportion OF
the butter industry the packers control is
large enough perhaps TO influence" the price
Of butter.
With respect to Mr.. Armour's confidence
in the ability OF a single large company, con-
trolling the entire meat-packing industry to
give the public the benefit OF all economies
possible through elimination of competition
and volume of business, Francis j. iieney,
counsel for the Federal Trade Commission
who was permitted TO cross-cxamine the wit
ness, offered come interesting facts. lie
produced figures submitted to a Senate COM
mittce thirty years ago by the father OF the
present head OF tho Armour Co. showing
that at that time. when the by-product
branches Of the industry were by no means
what they now are. and much more OF the
steer went to waste than is now the case, the
profit to Armour & Co. test steer was
$l22. At the present time. when no part
OF the steer, not even his blood, goes to
waste the profit to Armour & Co. on a steer
of the same test weight according to figures
submitted by the packers themselves is 81
a steer, whereas Swift Il Co. admit a profit
Of Sc.
Thus IT would seem that there is not much
saved TO the public by Economics due TO
elimination Of competition and greater vol
umc Of business"