The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1919-12-27
PACKERS FACING
MONOPOLY TRIAL
Federal Trade Commission
To Ignore Surrender to
Attorney General.

Complaints filed against the packers
by the Federal Trade Commission Will
be prosecuted regardless Of the recent
surrender by the packers to Attorney
General Palmer's demand that they
relinquish control Of numerous non
related industries.
While harmony is said to prevail be-
tween the Federal Trade Commission
and the Department Of Justice. the
Federal Trade Commission does not
intend to withdraw the thirty odd
cases pending against the packers un-
der the Clayton act.
These complaints concern section
OF the Clayton act. which forbids a
corporation from acquiring the stock
OF a competing corporation when such
acquisition tends to create a mon
opoly.
Under the agreement made by the
packers to accept without opposition
a permanent injunction forever di-
vorcing them from non-related indus
tries and from control Of stockyards.
they will confine their activities to
meat. butter, eggs, cheese and poultry.
Monopoly Issue Remains.
But this leaves unsettled the ques-
ton of a monopoly by the packers
in these restricted enterprises and II
is with this question that the Fed
eral Trade Commission is concerned.
1t was said yesterday that the Fed
eral Trade Commission in its far
reaching and extensive investiga-
tions of the packing industry turned
over a great mass Of information to
the Attorney General for use in his
dealings with the packers.
But the information collected by the
Federal Trade Commission was segre-
gated in two distinct classes. All data
relating to or coming under the Sher-
man antitrust act was turned over
to the Department OF Justice, but in
formation coming under the Clayton
act was retained by the Federal Trade
Commission.
Commission Claims Power.
The Federal Trade Commission
maintains It has power to institute
proceedings which came within the
purview OF the Clayton act. In a
statement sent to the White House
about the time the settlement with the
packers was announced by Attorney
General Palmer, the Federal Trade
Commission had this to say:
The commission found that with
respect to the meat packing industry
there existed monopolies, controls,
trusts. combinations. conspiracies,
and restraints Of trade out of har-
mony with the law and public in
terest.
The commission so reported to the
President and to the Congress and
placed its mass Of facts as rapidly as
they could be digested in the hands
OF the Department of Justice for such
action as it might deem wise.
The commission has responded 10
the call OF committees of Congress
which were considering proposed re-
medal legislation and to the call OF
the Department of Justice in the fur
Their study of facts transmitted.
Control of Food Feared.
THE commission found that. start
ing with a practical control of the
meat packing industry. the present
state of affairs made possible unfair
invasions into other industries to an
extent that an ultimate control of the
food supply of the nation in a few
hands was possible and probable. To
this situation il has directed the at
tention of Congress.
I'VE should say to you that in this
examination the commission has
brought out certain facts the admins.
tratiOn of which IL is particllla ri =
charged. In a number OF these mat
tiers formal proceedings have already
been instituted. In others formal pro-
ceedings are in process of formulation
These things the commission will
carry forward in due course and in
the orderly prosecution Of its work