The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1919-01-21
He Demands Leaving OF Packer
Trust Alone Now.
LEGISLATION IS REACTIONARY
And Insists That Some OF 1t Is
Unconstitutional.
Laws Made Would React on
Other Industries Soon.

Washington Jan. 21.-J. Ogden Ar
mour told the house interstate COM
merce committee today that pending
legislation to regulate the meat pack
ing industry was "rea ctionary and
part of it probably unconstitutional,
and warned congress that IF mon
key wrench is thrown into the gears of
4his business its effects would be felt
an many other lines of industry.
: L interpret this bill as effort to
dissolve an alleged monopoly and to
tiecentralize the meat packing indus
1ry," 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
10 few which are organized on ma
tionRl scale.
Affect Corn, Wheat. Labor.
s eff the ability of the packing indus
try to function properly is impaired,
ct will affect the livestock industry and
1t in turn will affect corn prices.
Wheat will then be drawn in and so
will bread and so will labor and so
sis the wealth produced by agriculture.
The theories on which pending
Legislation is based are Feactionary.
They would disrupt the great manu-
featuring and marketing machines
which half u century of enterprise has
evolved and the results would be det-
rimental. not alone to the leading
industry of this nation, but even more
$50 to that portion of the public which
produces. and to the entire public
(which consumes food"
Possibility of government owner
ship of stockya rds and other adjuncts
iof the packing industry drew from Mr..
Armour reference to red tape" and
controversies over trivial matters"
such as underground mail chutes.
1t Means Rcd Tapc
Ownership by the government" he
said, Implies red tape and reStric-
tons which cannot help but add to the
costs of the service. costs which must
eventually be borne either by the pro-
-ducer or the consumer. Government
ownership implies. too, the abolition
of the priVite initiative and enterprise
(which has made it possible to erect ef-
ficient stockyards almost overnight
when occasion justified it. The gov
.ernment you know, does not make up
its mind very quickly on such matters,
tas is evidenced by the years old con-
rroVersies over the building of postt
offices or such comparatively trivial
matters as to whether not cities
should have underground mail chutes.
1T is only because l fear less efficient
Operation and the consequent serious
results that l make these comments,
but am entirely willing and ready to
at once relinquish my holdings upon
being allowed just compensation
thercfor."
Profits made by Armour 81 Com
pany. MIR. Armour declared were neg
Eligible in-s far as either the producer
or the consumer was concerned.
ION our total volume of business"
she said, they represent a return of
1ess than ? cents on every dollar of
sales. The margin of profit in the
packing industry is the smallest en-
sjoyed by any industry of national con-
Sequence"
RAISED the Capital Stock.
Gross volume of sales by his COM
spany in 1918, the witness said, totaled
1881. 900. compared with $575.-
100000 in 1917, but the net income
was at the rate of per cent on the
average net capital invested. The 400
per cent stock dividend in 1916.
WHEREBY the capital stock was raised
From $4,000. 900 to S1O0.000.000, was
said by Mr.. Armour to have been made
possible by re-investment during pre-
Aceding years of II per cent of the ag-
sgregate earnings, so that the increase
represented not water but money ac-