New Britain herald. [microfilm reel] (New Britain, Conn.) 1890-1976, 1919-01-21

AsSSuhaS Meat Packing IIOuSEr,
Reactionary and Partly Uncor
tutionaI.
Washington, Jan. 21.-J. Oe
Armour. president of Armour &
told the house interstate comm
committee today that pending 1e
lation to regulate the meat pac1
industry was 'reactionary" and
of 1t probably unconstitutional
warned congrtss that IF a mol
wrench is, thrown into the gearl
this business" its effects would Id
In many other lines of industry.
Predicts National UpheavaI,A /
IF the ability of the packing
dustry to function properly is
paired" he asserted, 'it will III
the livestock industry and it in
Will affect corn prices. Wheat
then be drawn in, and so will III
| and so will labor, and so will 81
thing that has for it's basis the WI
produced by agriculture.
Pending Legislation ISeactionaB
The theories on which O.
legislation is based are not con IN
tlce; they are not progressive. 81
are reactlonary. They would di@
the great manufacturing and rnaM
ing machinery which half a, c@
OF enterprise has evolved and IL IhA
suits would be detrimental not N
to the leading industry of this n III
put even more so that portion c8
pubic which produces and to til l
tire public which consumes fod8
Government Ownership Impra 1
Regarding the possibility of 8
ernment ownership of stockyardw HI
other adjuncts to the packing M
try, Mr.. Armour said: 2
Ownership by the governne erI I
plies red tape and restrictions s
cannot help but add to the co 8
the service, costs which must e1 M
ally be borne either by the pro 1
or the consumer. Government 4
ership implies too the abolition M
private initiative and enterprise W WNa
has made it possible to erect al 3
cient stockyards almost ovel M
when occasion justified it. The a
crnment, you know, does not ma S
it's mind very quickly on such a
ters, as is evidenced by the yea
controversies over the building
post Offices or such comparaa a
trivial matters as to whether SB
should have underground M
Chutes."
Have Only 2 Per Cent. Prof I
Profits made by Armour & Col M
Armour declared represent q a
of less than two cents on eVerN8 8
lar OF sales. The margin of pro H
the packing industry is the SIN a|
enjoyed by any industry of ma M
consequences"
Gross volumes of sales by his 8
pany in 1918, he said, totalled 1
100000, compared with $575, o
in 1917 but the net income was
rate of nine per cent. on the av Hg
net capital invested. He added
the 400 per cent. stock divide
1916, whereby the capital stock
raised from $20,000,000 to $100 B
600, was made possible by rei1 8
ment during preceding years o
enty-one per cent. of the aggr
earnings.
Blames High Price of Mea
The high price of meat, Mr.
mour said, was the real reason
President Wilson ordered the
packing investigation by the fe
trade commission. Within the #
four years, he said, the price o
hogs had increased 245 per cent
costs of labor, clerical help and
had doubled.
AS only 70 per cent. of h
edible and the remaining 80 ner I
OF by-products have not increas
value as rapidly as the live I'M
he said, it Gid be understood Z
bacon today costs three times w
did four years ago. He added
prices of live cattle and sheep
advanced at a pace with that .af s
ColIusion stoutIy Denied. W
Charges by the commission Of
fusion among the five big pa
firms to control prices were denid
the witness, who asserted:
Armour & Co. are not now al
have not been for many years a
to any pool, arrangement, agree
or combination for the control, @
lation or limitation. or restrictid d
the purchase of livestock or the
Of any of the products or bypro
thereof"
Mr.. Armour declared that |
was keen competition between M
firm and Swift, Morris, Cudahy NH
Wilson, and denied that there was
Continued on Ninth PagN1 W