The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-01-29
PACKERS SEE PERIL
IF RULES INCREASE
Present Laws Adequate to
Deal With Abuses, Norris
Tells Legislators.
STOCKS GAIN BY DEAL
Federal Price Fixing Plan Is
Called Disastrous, as
Profits Are Barred.

wAsHINGroN. Jan 2s.--Presidents Of
two big packing companies to-day ad-
yised Senate and House committees
against enactment OF any additional
legislation to regulate the meat packing
industry. Louis f. Swift of Swift a
Co. told the Senate Agriculture Com
mittee present laws were adequate to
deal with any abuses charged. and Ed
fed before the House Interstate Com
merce Committee that any further legis-
lation would Just muddle things up.
]. ogden Armour, president OF Armour
& Co, announced yesterday he expected
TO consult representatives OF all other
packers concerning measures to be Of
tered as substitutes for legislation now
pending before Congress Mr.. swift.
when asked to-day by Senator Gore
tOkla) II he expected to assist with
such legislation. said he felt much OF
the so-called feeling against the pack
ers" was exaggerated and that legis-
laton would not affect the situation.
Some Limitation OF capitalization OF
hacking companies was suggested by
Senator Grona IN. d. after Francis j.
Heney had cross-examined Mr.. Swift
concerning a series of increases OF his
company's capital stock
stock Ira nss ction PrObed.
Mr.. Heney said that by separating the
Swift concern into three organizations
recently the market value OF the original
stock had been increased more than
800. 900. 900 Mr.. Swift denied this and
agreed to inform the committee as to
the transactions dealing with the separa-
ton of the one company into Swift h
Co. Swift International and Libby, Nc
Neil & Libby.
Profits of his company under Food
Administration regulation were much
lower than in the previous year Mr.
Swift said Representatives OF the five
big packers and OF the American Ma
tional Live Stock Association had
agreed, he told the committee not to
oppose the recent Federal Trade Com
missions investigation OF the industry.
He declared the inquiry was one sided"
-Afiidavits were presented to show that
Swift & Co.'S advertising expenditures
were $4,000 in 1918. and not 81 900.
900 \ month, as has been stated.
Mr.. Swift and Mr. Heney engaged in
q verbal ti,t over the evidence presented
In the Federal Trade Commissions re-
port.
only kilograms which showed the
worst side TO the packers were put in.
Mr.. Swift said, while others d!sprov!ng
their charges We're omitted"
That is not true interrupted Mr..
Heney. we put in al we could ge;
from the files"
The committee gave Mr. Heney per
mission to introduce kilograms brought
Regulation of Markets.
Mr.. Swift said the big packers tried
to keep all markets on level with
Chicago, but that Chicago prices were
we'll.
If any market is hieh." asked Mr..
Heney. do you try TO bring It down.
We do what We can to bring II into
line" Mr.. Swift replied.
And If it's low" continued Mr..
Heney
We all pitch in and buy there and
the price rises"
Thirty per cent OF his company's out
put or 500 900. 900 pounds Il meat. Mr..
swift testified. was sold to American
and allied Governments for war pur-
poses last year.
Members OF the comm ttee question:
figures presented by Mr.. Swift showing
profits.
There is doubt in my mind how you
people keep books" said Senator Gronna.
I'VE found that Armour & Co. had not
included SO, 100000 South American
profits in their statement"
You must not blame me for that"
replied Mr.. Swift.
He testified that swift 4 co. made
7.j5 per cent. on the capital employed in
1918. While the Food Administration per
m!tted per cent, profit.
When you say your profit Is two cents
on the dollar you intend to convince the
average man your earnings are a mere
trihe." said senator Gore tOkla.). We
want to know what you made on your
capital stock"
Fifteen Per Cent. Made.
Mr.. Swift said he made Is per cent
Surplus ought to be eliminated too,