The Daily Ardmoreite. [volume] (Ardmore, Okla.) 1893-current, 1919-01-22
ARMOUR IS At RAID
GOVERNMENT VII |.
TAKE ON PACKING
TELLS HOUSE COMMITTEE
MEAT INDUSTRY IS
COMPETITIVE.
NET PROFITS 9 PER CENT
Calls Proposed Legislation "Reac-
tionary" and Like Throwing Mon
key Wrench into Machinery
Says Refrigerator Cars are Run
at Loss by the Packers.

dt LOSS ny tnc PACKETS.
Washington, Jan. 2l.-J. Ogden
Armour told the house interstate
commerce committee today that
pending legislation to regulate the
meat-packing industry is reaction
ary, part of it probably unconstitu-
tional," and warned congress that
''if monkey wrench is thrown into
the gears OF this business its ef-
fects would be felt in many other
lines of industry.
81 interpret this bill as an effort
to dissolve ar alleged monopoly and
to decentraize the meat-packing in
dustry," Mr.. Armour said. at seems
to be constructed in the belief that
a great number of small units en-
gagged in purveying orofood is pre-
ferable to a few which are organized
on a national scale.
'If the ability of the packing in
dustry to function properly is i'm
paired, it will affect the livestock in
dustry 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.
"The theories on which pending
legislation is based, are not con-
structiye; they are not progressive
they are reactionary; they would
disrupt the great manufacturing and
marketing machines which half a
century OF enterprise has evolved
and the results would be detrimental
not alone to the leading industry OF
this nation, but even more so to
that portion OF the population which
produces, and the entire public
which consumes food
Possibility OF government owner
ship Of stockyards and other adj
juncts to the packing industry drew
from Mr.. Armour reference to red
tape" and controversies over "triv-
ial matters" such as underground
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 that
must eventually be borne either by
producer or consumer. Government
ownership implies, too, the abolition
OF the private initiative and enter
prise which has made it possible to
erect efficient stockyards almost over
night when occasion justified it. The
government, YOU know, does not
make up its mind very quick or
such matters. as is evidenced by the
year-old controversies over the
building OF post offices or such com
paratively trivial matters as tc
whether or not cities should have
underground mail chuteS 1t is only
because fear less efficient opera.
tion and the consequent serious re-
suits that | make these comments
but ! am entirely willing and ready
at once TO relinquish my holding,
upon being allowed Just compenSa-
siou therefor
Profits made by Armour < Co.
Mr.. Armour declared, we're negll
gible insofar as either the produces
or the consumer was concerned,
Says Profits are Small.
"On our total volume of business
he said, they represent return o.
less than two cents on every dollar
OF sales. The margin of profit il
ahe packing industry is the smallest
enjoyed by any industry OF nationa
! consequence
= Gross volume OF sales by hi,
company in 1918, the witness said
totaled SS4l 100000 compared witt
$575,000,000 in 1917, but the net in
come was at the rate OF nine pei
cent on the average net capital in
vested.
The 400 per cent stock dividend
in 1916, whereby the capital Stocl
was raised from $20,000000 to $780,
100000 was said Mr.. Armour to hay,
been made possible by re-inveStmen
during preceding years OF Il pc
cent OF the aggregate earnings, Sc
that the increase represented no
water, but money actually spent il
development. In this connection h,
called attention to the fact that tn,
firm is almos entirely owned with
in his family.
Mr.. Armour, in the course OF hi
statement, made detailed answer 10
Armour & Co., OF which he is pres
ident, OF the charges made by tn,
federal trade commission report OF
its meat-packing investigation ant
recommendations by the commission
by which the legislation now be
fore congress is based. He declared
that the high price OF meat was th'
real reason why President Wilson
ordered the investigation. Within
the past four years, the price of liv
hogs had increased PAS per cent ant
costs of labor, clerical help and fue
|. /had doubled
Why Bacon is So High.
AS only 20 per cent of hog i
(Cop+;pued from pagn ~