The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-01-25
ARMOUR QUIzZED ON
p 400 P. G. DIVIDEND
Says 1t, Was Made From Sur
plus Profits Above Pay
ments to Stockholders.
HENEY BOMBARDS HIM
L. T. Swift Sees Disaster I'm
less Control Of Livestock
Prices Is Continued.

WASHINGTON, Jan. al. ogde
Armour. who testified at length thl
week before the House Interstate Com
merce Committee, appeared to-day be
fore the Senate Agriculture Commute
at continuation of its hearing on bill
for regulation of the meat industry
Much Of the testimony related to profits
Asked TO explain the stock dividend
or 400 per cent? declared by his com
pany in 1915 Mr.: Armour said this wa
made possible by the accumulation of q
SURPLUS since the establishment OF tn,
business
But this surplus was in addition q
dividends paid the stockholders was Il
not?" asked Senator Norris (Nebraska)
Mr.. Armour said 1t was
Opposes Bill to License Plants,
Mr.. Armour in a prepared statennen,
which he previously had presented 10
the House committee opposed tho Kan
drick Dill providing for the licensing of
packing plants.
francis ]. Heney. counsel for the Fed
erai Trade Commission in its recent
packers investigation, took up the ex-
animation Of Mr.. Armour late to-day
at the request OF the coTDmittee.
rms was done at the suggestion Of
senator Norris. Senator Page (ver-
monD asked IL the hearing was 10 de-
generate into prosecution"
Levy Mayer Mr.. Arm0ur's counsel.
consented to the examination when he
was assured he would have the privilege
or Questioning other witnesses.
is II your idea" asked Mr.. Hene,.
that It's to the consumers and pro.
aucer advantage II a few concerns get
such volume that they can practically
take care OF the country's demandS"
Naturally, I think So" said Mr.. Ar
mour. We couldn't do business on
suIh small margin OF profit II our
volume were smaller"
Mr. Armour testified that Armour &
20. and Morris & Co. conduct a pack
ing plant Jointly in Argentina, but de-
MED IN reply to question that there
was any combination between the pack
ers there in making shipments to Eng
land
Senator Gore (Oklahoma) then took
up the questioning of the witness 10 ask
II the ratio between buying and selling
prices was normally the same as when
the prices were set by the Food Admia-
istration. Mr.. Armour replied that II
RooaoIy was as nearly go as possible
senator Gore then asked II 1t would be
satisfactory TO continue the present sys-
TEN Of price fixing.
surplus Pork to Re Used.
IT price level such as Is fxed at
present by tho Food Administ ra ton
could be determined in the future u
would be agreeable to the packers" said
Mr.. Armour.
Packers have assurances from tho
Food Administration that all available
supplies of pork will be used during the
summer. the witness said.
Did Mr.. Hoover go to Europe to Sc
cure larger market for tho packers?''
asked the oklahoma Senator.
Il think he went to determine the
needs OF the people there" he replied
II any packing house by Its efici-
enCy could kill off its present competi-
tors asked Senator Gore. couldn't you
also prevent new concerns starting?"
Il suppose that might be true
theoretically" said Mr. Armour
Replying later to questions by Mr.
Heney, Mr.. Armour sail his company
made about 81 per head on cattle
Does that include the profit on hides
and other byproducts? Mr.. Heney asked
Probably not" said the witness
Armour's South American compa ny
maui ptoill VI sLp,'uV,uuO III 1915, alr.
Armour replied In answers to questions
from members of the committee. but all
of this and moro was expended in the
business there, he said.
Can Explain but Doesn't.
Senator Gronna IN. d asked why
this sum was not included in the profits
OF the American corporation, which
owns the entire stock OF the South
American concern. Mr.. Armour said Il
was a separate company. but added that
tho capital invested appeared IN tho re-
ports of the American concern.
Then your reports will show
smaller percentage OF profit than you