New-York tribune., 1919-01-22
u. s. ContrOltO
Make 1t Soar.
Says Armour
Testifies impairment Of the
Packing Industry Affects
Stock and Corn Prices
Labor, Too, " ould Suffer
Declares Big Five" Plants
Are Not in Collusion and
His Profits Are Small

WASHINGTON, Jan. 2l.- Widespread
and disastrous results, J. Ogden
Armour told the House Interstate
Commerce Committee to-day. would
attend the passage OF the legislation
proposed by the Federal Trade Com
packing industry
III a monkey wrench is thrown into
the gears of this business" he told the
committee, cts effects will not be con-
fined to the meat packing industry. If
the ability of the packing industry to
properly function is impaired, it will
affect the livestock industry and it in
turn will affect corn prices. Wheat
viii then be drawn in and so will bread
and so will labor and so will everv-
thing that has for its basis the wealth
produced by agriculture
The head Of Armour & Co. was heard
by the committee in connection with
the bill. which provides for the acoui
sition and ownership, or regulation,
control and operation. by the govern
ment of stockyards, exchange build
ings, rendering plants, serum plants,
market newspapers, refrigerator cars,
cattle cars, cold storage houses. branch
market houses and their several ad-
junts. appurtenances and facilities, and
foT the licensing by the government of
the meat packing industry.
Heard for Three Hours
His examination Will be continued
tomorrow. More than three hours of
the hearing day were spent by him.
with the aid of an assistant, in the
reading of a siXty-e ight-page printed
statement detailing the enormous busi-
ness of Armour & Co., telling of its
growth. detailing its many side lines
and passing judgment on the various
proposals contained in the programme
of the trade administration.
Categorically he denied that the big
fve' group of packers are in collusion
TO control prices or could control
prices, and, under long cross-exam-
nation. he steadfastly adhered to this
assertion. He complained of the fact
that various sensational charges con-
tanned IN the report of the Federal
Trade Commission as having been not
only without foundation in fact. but
based on testimony collected in an in
vestigation by the commission in which
the packers had no opportunity to be
heard
Taking up correspondence, portions
of which the Trade Commission had
cited in support of its contention that
price controlling arrangements existed
among the big five" packers, Mr.. Ar
mour showed in one instance, referred
20 by the commission. that this ar
rangement was made at the direct re-
quest of the United States Food Ad-
mlnistration as a means of stabilizing
prices on cottonseed oil.
Calls 1t Unconstitutional
Seated at the table with Mr. Armour
was his counsel, Levy Mayer, of Chi
cago. who, though he took no part in
the proceedings, is present, it is under
stood, to argue at the proper time that
the proposed legislation was unconsti-
tutional Mr.. Armour in the course of
his address declared it would be uncon-
stitutional.
For two hours Mr.. Armour read
steadily from the printed manuscrip pt
before him, until his voice broke from
the strain, and he begged permission
to transfer the task to one of his as,
slstants Before adjournment only fou,
members Of the committee had hac
time TO question him. and their in.
quiries showed a general friendlness
for the proposed legislation. They
were Chairman Sims, of Tennessee, anc
Doremus OF Michigan, both Demo
Gratis, and Esch, of Wisconsin anc
Hamilton of Michigan, Republican,.
Representative Hamilton delved intt
the alleged relationship between the