Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1919-02-19
Hoover's Report to President on Meat
Industry Given--Packers Comment
LEADERS DO NOT
FORM MONOPOLY
SAYS L. w. SWIFT

Mr.. L. F. Swift, president OF
Swift & Company, made the fol-
lowing comments with regard to
Mr.. HooYer's letter to the presi-
| dent on the packing industry:
Il am naturally greatly inter
ested in Mr.. Hoover's letter to the
president, which was written last
September. and welcome it as an
honest expression of opinion about
the packing house situation. l am
| only sorry that Mr.. Hoover had not
had opportunity to avail himself of
| the information brought out at the
recent congressional hearings in
Washington.
'"Fhe principal issue seems to be
whether or not there is a monopoly
and l believe it was clearly DEM
onstrated at these hearings that the
large packers are in active compe-
tition with each other. There are
absolutely no agreements among
the five largest packers to control
prices, and they together handle
less than forty per cent of the
meat supply of the country The
largest company handles only
meat supply and less than twenty
five per cent of even the output of
houses that are under U. S. in
speCtion.
There are about two hundred
and seventy packing concerns, be-
sides those operated by the five
largest, that are under federal in
spection, and hundreds of local
houses that are not subject to in
spection. All large cities have
packing houses that compete di-
rectly with the five largest. Some
of their representatives appeared
at the hearings in Washington and
stated that they were prospecting,
and that there was fair and open
competition in the industry.
Il have publicly stated that we
have no serious objection to being
relieved of our interests in refrig
orator cars and stock yards. But
we have pointed out that it is de-
cidedly questionable whether any
efficiency or benefit can be gained
by such procedure We would al
so call attention to the fact that
during the recent hearings, no evils,
needing correction have been
brought to light in connection with
packer ownership OF these facili-
ties
Il quite agree with Mr.. Hoover
that there is no reason for the gov
ernment to take over the branch
houses of the packers, but I do not
feel that sufficient consideration
has been given to the question OF
handling otAer products than
meats. Swift & Company handles
only a few such products, and they
are distinctly related to our bust
ness, either as by-products of the
packing houses, or as goods which
can be economically handled
through our extensive distributing
organization.
Il hardly think that the govern
ment should assume authority 10
dictate what products any business
concern may or may not handle.
There is not only no need for such
a step in connection with the pack
ing business, but it would act as a
dangerous precedent which might
1T is a little difficult for me to
reconcile Mr. Hoover's criticism OF
the fact that the large packers
have eliminated middlemen and
gone direct TO the retailers with
the general opinion that marketing
should be as direct as possible
from producer to consumer. |
think it will be conceded that if VIC
have eliminated unnecessary mid
dlemen this has been to the ad-
vantage of the public at large.
Efficiency Will Continue.
Since there is no monopoly. the
facts do not justify the statement
that, as time goes on this efficiency
cannot fail to diminish, and, like
all monopolies, begin to defend it
self by repression rather than by
efficiency. AS long as the large
packers have to use their utmost
efforts in competition with each
other and with hundreds of smaller
concerns to earn their profits OF
only two or three cents on each
dollar of sales. there is no room for
a falling-off in efficiency.
However. l welcome such sin
cere and disinterested views as
those expressed by Mr.. Hoover !
The public and our legislators need
to understand our business much |
more thoroughly than they do now, |
before they are in a position to I'M
dertake restrictive regulation. |
Swift & Company has voluntarily |
before congressional |
to give such informa- |
ton as is desired. We have moth |
ing to conceal. All we want is an |
opportunity to get the facts before
the public, and when this has been /
accomplished, we shall rely on the |
sense of fair play of the American /
people. and shall abide by their
verdict"