The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-10-17
VAST FOOD CONTROL
BY PACKERS SHOWN
Effect of Powerful Organize
ton on Social Fabric
Causes Query.
WILL 1T CUT PRICEs9
Federal Trade Commission
Finds Secrecy Surrounds
Deals by Concerns.

WARRINGTON, OCT 1b.-ttefteration OF
the claim that the five big packing COM
panies OF Chicago bid fair to dominate
the wholesale grocery trade and already
handle more than 200 foods unrelated
to the meat packing industry. many Of
them directly competitive as meat SUBJ
stitues. Is made In Part ". Of the
Federal Trade Commissions report on
the industry. published to-day.
The extent to which the packer
should be permitted to enter unrelated
food lines (even assuming legitimate
competitive methodist" the report said,
"is a matter which the public interest
| alone should determine.
Two questions, primarily economic,
are involved:
Does this widening Of activity result
| in additional economies Of production
| and distribution?
Does 1t result and will IL continue TO
| result to the public in lower prices and
better quality Of product and service?
"A third question. not here discussed,
| relates to the ultimate effect of such vast
| and powerful organizations on the politi-
cal and social fabric of American institu-
| tons"
Included in the list of commodities
| said to be falling under control of the
big Eve" are poultry and game. dairy
products, lard and butter substitutes,
| canned and dried vegetables and fruit,
canned, cured and frozen fish. cocoa,
| coffee, molasses and cane, corn and
| maple syrups. In addition Armour q
| Co., one of the five. Is said to be han
| ding extensively soda fountain prepara-
| tons and utensils.
Extent of Control Varies.
The extent Of packer control varies
| with the locality and commodity, land
the dealer whose business Is being alb
sorbed,' the report asserts
lowing to the maze and secrecy OF
| the packers methods of conducting
much of his business" It adds, exact
statistics on many OF these commodities
are not available for the country as a
whole. which win show just how far
the packers control has reached.
MANY companies manufacturing or
handling these commodities are con-
trolled by packer interests no hint Of
which is disclosed by the names under
which they operate and even thorough
going examination may fail to uncover
the packer connection In every case"
Four Of the packers. Swift. Wilson,
Armour and Cudahy, the report states.
through their subsidiaries and not in
GLIDING family controlled companies,
handled In 1918, 495 per cent. of the
estimated total of shipped dressed poul-
try and SO per cent Of shipped eggs.
The same four handled 40 per cent.
of all factory made cheese in 1918, the
report says, and adds:
THAT the big Eve are in position
to control rs to so per cent. of the
| oh If ha lNNiGC0nginl q
orally conceded"
| Libby, McNeill & Libby, a Swift con-
Germ. alone handled 1914 per cent o: all
| evaporated and condensed milk in 1918.
according to the report.
The Armour Grain Company, a fac
tor In the cereal and breakfast food
business, reported surplus undivided
profits for the year 1917 of s5.426,s3O
after deducting n IS per cent. dividend
on capital stock, the report says. add
ing:
THE years net earnings amounted to
s2,90S.912, or 200 per cent. on the cap
ital stock and CT per cent on the net
worth of the company. including capital,
surplus and undivided profits. as re-
ported at the close OF the fiscal year
1916"
Almost Half of Lard Compounds.
ProQuctlon OF lara compounds anu
substitutes by the five packers during
the first six months of 1917 was placed
at 4e.4 per cent. of the total and oleo-
margarine at 81 per cent Complete
figures to show the packer interest In
canned foods. such as fruits and fish
were not available, the report says. bu,
the business Of the big five" was shown
to be large and growing. The Libby
company's canned food sales alone
showed a 225 per cent. increase in 1915
over 1915. Libby sales of canned sal
mon increased from 4.6 per cent Of the
world pack in 1915 to 81 per cent. ir
1918, the report shows.
!, 80 complete has become the control
, especially by Libby, Mcneil & Libby
over the pineapple supply" the repor
reads, that one Of the largest wholesal,
: grocers in the country was unable IL
the summer of 1918 to secure any supply
whatever"
There is sufficient evidence, the repor
: continues, that the big five" are dlvid
ing the field among themselves.