Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1919-01-21
Move to Regulate
Packers Assailed
by j. 0. Armour

washington, Jan. ZI.-J- ORQeI
Armour told the house interstate
commerce committee today thai
pending legislation to regulate the
meat packing industry, was reac-
tionary" and part of it probably un-
constitutional and warned congress
that IF a monkey wrench is thrown
into the gears of this business" its
effects would be felt in many other
lines of industry.
Il interpret this bill as an effort
to dissolve an alleged monopoly
and to decentralize the meat PACK
ing industry" Mr.. Armour said
1T seems to be constructed in the
belief that a great number of small
units engaged in the purveying OF
food is preferable to a few which
organized on a national scale.
IF the ability of the packing in
dustry to function properly is i'm
paired, it will impair the live stock
industry and it in turn will affect
corn prices. Wheat will then be
drawn in and so will bread and SO
will labor and so will everything
that has for its basis the wealth
produced by agriculture
Gail Move "ReactiOnary."
THE theories on which pending
legislation is based are reaction
ary. They would disrupt the great
manufacturing and marketing ma
chimes and the results would be not
only by the leading industry of this
nation, but even more so to that
portion of the public which pro-
duces, and to the entire public
which consumes food.
Possibility of government owner
ship of stOckyards and other ad-
juncts to the packing industry,
drew from Mr.. Armour reference
to "red tape" and controversies
over trivial matters" such as un-
derground mail chutes.
Ownership by the government -
he said, implies red tape and re-
strictions which cannot help but
add to the costs OF the service.
costs which must eventually be
borne either by the producers or
the consumer"
Profits Negligible.
Profits made by Armour & COM
pony WI al AlOllI uGNldi GU. "GIC
negligible insofar as either the pro-
ducer or the consumer was con-
cerned.
"On our total volume of bust
ness" he said, they represent a re-
turn of less than cents on every
dollar of sales. The margin Of
profit in the packing industry is the
smallest enjoyed by any industry of
national consequence.
-Gross volumes of sales by his
in 1918, the witness said,
1851 900, 900, compared with
S575. 100000 in 1917, but the net in
come was at the rate of nine per
cent on the average net capital in
vested.
Answers Charges.
Mr.. Armour, in the course of his
made detailed answer
for Armour & company of which
he is president to the charges made
by the federal trade commission
report on its meat packing investi-
cation and recommendation by the
on which the legisla-
ton now before congress is based.
He declares that the high price of
meat was the real reason why Pres
Ident Wilson ordered the investiga-
ton. Within the past four years,
the price of live hogs had increased
245 per cent and costs of labor,
clerical help and fuel had doubled.
Charges by the commission of
collusion among the five big pack
ing firms to control prices were
denied categorically by witness for
his firm, as follows:
Armour & Company are not
now and have not been for many
years a party, in the most remote
legree. to any pool arrangement
1r combination of any kind what
soever for the control. regulation,
Or limitation, or restriction of the
purchase of livestock or the sale
If any of the products or by
products thereof"
Competition Keen, He Says.
Mr. Armour declared that there
vas keen competition between his
irm and Swift, Morris, Cudahy and
Wilson. Percentage of purchases
~ each firm at various markets.
which the commission alleged
howed that there was an agree
nent for each packer to take only
certain amount of the livestock
'ffered for sale, thereby eliminat-
ng competition, was assured to be
Iictated by plant capacity and the
experience of years.
Regarding the invasion of out I
ide lines" by the packers and the /
e ,se-r. TrNvN Ent
tempt was being made to control =
he grocery trade, Mr.. Armour /
ketched the development of by |
of the company's pack /
ng plants and declared the COM
any had undertaken the sale of
many lines which it does not (
only because of the
emand from their customers. who
Ould not obtain satisfactory ser
ice elsewhere. He denied that his
rm intends to enter the retail!
usiness. and said it did not own.
nd has no interest, direct or in
irect, either as a corporation or
in the Canneries
-hichl pack salmon, tuna fish and
egetables.
Armour & Company. the witness
owns no livestock cars
nd only sufficient refrigerator
ars to handle its own goods effic-
ntIy. He said the refrigerator
ars were operated at loss. He
ointed out that the railroad ad-
did not assume con-
'ol of refrigerator cars, although
had authority to do so.
Mr.. Armour submitted a compari-
m of the earnings of Armour &
with those of thirteen 9th
; large corporations. 1t showed