The evening world., 1919-01-21
J. 0. ARMOUR CALLS
CURB ON PACKERS
PERIL TO INDUSTRY
Denies Huge Profits and Ex-
iStence of Pool in Attacking
Inquiry Methods.

WASHINGTON. Jan. 2i.--F1atly
denying charges OF conspiracy with
other packers, ]. Ogden Armour re-
piled to the recent FIRE OF the Fed
oral Trade Commission to-day. Tcs-
tirylrg before the House Interstate
Commerce Committee. he built up an
elaborate defense OF his concerns
business conduct lie finished with
this sweeping denial.
Il say to you positively that We
have not for many years been and
arc not now in any pool, combina-
ton or arrangement OF any kind.
either directly or Indirectly. or open
ly or secretly or under cover. All
such charges are utterly unfair and
untrue"
Throughout Mr.. Armour attacked
tho Federal Trade Commissions
methods during the recent invcsti-
cation directed by Francis J. Honcy.
His company has not previously boon
given chance to answer accusations,
nc said.
Mr.. Armour earnestly urged Con-
gross not TO pass pending bills pro.
viding Government licensing OF pack
ing houses, and Government owner
ship or operation OF stock yurds re-
frigcrator cars. branch houses and
other adjuncts to the packing bust
ness
"lf monkey wrench is thrown into
the gears Of this business its effects
will not be confined 20 the mca.
packing industry" he went on. The
theories on which pending legislation
is based are not constructive; they
are not progressive. They are re-
dictionary"
Touching briefly on high prices the
witness said live hogs had increased
/ in price 2i5 per cent. in four years
Labor and fuel costs have also gone
up. he pointed out. Charges OF excess
sive profits, however. were denied. In
1918 Armour's profits arc said TO have
been is cents on each dollar Of sales
as compared with 81 in 1917.
Recalling that on Nov. 1. 1917. the
Food Administration limited packers
| profits 20 per cent. on the capital
invested in meat producing lines. Ar
mour declared shat only about one
half OF this allowance was actually
earned.
"DurInE the last eighteen years. in
Guiding tho war period" he said. the
earnings OF Armour & co. on the ac-
tual investment and appraised value
OF the business averaged 80 per cent.
on everything, including all our by
products and all our associated lines"
Mr.. Armour submitted a comparison
Of the earnings Of Armour d co. viii
those Of thirteen other large corpora
tons II showed that IN 1917 Armour.
percentage OF profit on capital stool
was exceeded by ten OF the companies
and that only three were lower.
side lines pay the bills" Mr.. Ar.
mour said in explaining tho policy OF
pushing byproducts. Soap. violir
strings. soft drinks and perfume were
classcd as legitimate sido-lInes foi
packers.
Rcfcrr.ng 10 the pending bill wh cl
would take refrigerator cars out o.
packers hands, Armour insisted n,
had lost money on refrigerator car'
for the last six years, but that the!
| were essential.
He considers Government owner
| | ship OF stockyards .mmatcrlal a
| long rs efficient service is rcndcro,
| and defended present control by tn
! packers.
Price agreements as to lard sub
| stitutCs were not a result of 'cOllu
| sion" Armour told the committee
| They were fixed by the Food Admin
| istr,uion TO stabilize prices.
| The 400 per cent. stock dividcn
| WAS "mcrcly a bookkeeping transac
| ton, perfectly honest and legal /
| every respect" according to Armour
| cit merely gave each stOCkholdcr iiN
| shares OF stock where formerly u
| held one. tho value Of which wa
| ,,rar IN tho five which repllCCl IT,