New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1919-02-19
Hoover W ants
4 ards rested
From I acIxers
Report 90 Wilson on Recon-
mendations Of Trade Com
mission Is Made Public
Sees Domination Danger
Favors Placing Refrigerator
and Stock Car Service
Under u. s. Control

u
WASHINGTON, Feb. ia confden-
tial report made to President Wilson by
Herbert G. Hoover six months ago on
the big meat packers was made public
to-day by the food administration at
the direction of the President "to estab-
llsh the real position of Mr.. Hoover
and the food administration on the con-
troll OF the Chicago packing industries. y
In recent hearings before Congressional
committees witnesses for the livestock
men charged collision between Mr..
Hoover and the five leading packers.
In the report, in response to g re
quest from the President for his views
on the recommendation of the Federal
Trade Commission, Mr. Hoover said he
reatllrmed his opinion given nearly a
year before that "there is a growing
and dangerous domination of the ma
tion's foodstuffs," and approved some
Of the commissions proposals. He
recommended constructive regulation
rather than stretching temporary war
powers of the government, and ex-
pressed the belief that the domination
Of the packers did not necessarily imply
wrongdoing on their part, but was the
natural outgrowth of various factors
which need CORRECTION
Mr.. Hoover accepted as economically
sound the Federal Trade Commissions
recommendation regarding Federal con-
troll of animal and refrigerator car SER
vice, and said stockyards should be CEN
tlrely dlsassociated from the control of
the packers" He contended, however,
that wrong practices between buyers
and sellers would not be corrected by
the government controlling or owning
yards.
Opposed Taking Over Plants
His own instinct, Mr.. Hoover said
was against Federal ownership of the
packers branch houses and cold stor-
age and warehouse facilities Going
into aspects of the packing industry
not covered by the Trade Commission,
he said:
of proper abattoirs could be ex-
tended near the larger towns, possibly
with municipal help, and the operations
therein protected from ilegitimate
competition, l believe they would not
only succeed, but would greatly stimu
late the local production of meat ami
mails. One effect would be great
sterilization Of prices by & wider based
market than that now so largely de-
pendent upon q small group of buyers"
The report says in part:
Il scarcely need to repeat tho views
that ! expressed to you nearly year
ago. That there is here a growing and
dangerous domination Of the handling
Of the nations foodstuffs.
Il do not feel that appreciation Of
this domination OF necessity implies
wrongdoing on the part Of the pro-
prietors, but is the natural outgrowth
Of various factors which need correction.
entirely aside from any question OF
conspiracy to eliminate competition
among themselves and against out
slders, 1t appears to me that these five
firms, closely paralleling each others
business as they do, with their wide
knowledge Of business conditions in
every section, must at least follow
coincident lines Of action and must
sharp competitive action toward each
other. They certainly avoid such COM
petition to Il considerable extent
Advantage in MARKETING
"Of equal public Importance is
tho fact that their strategic ad
vantage in marketing equipmcnt
capital and organization mus; tend
% further increase the area of
their invasion into trades outside Of
animal products. Furthermore, as
these few firms arc the final reservoir
for all classes Of animals, when the
few yards where they buy become err
ratlcally oversupplied with more ami
mails than their absolute requirements
Il remains in their hands to Auctuatc
prices by mere refusal to buy. and not
necessarily by any conspiracy In
ether words. the narrow number Of
buyers undoubtedly produces an un-
stable market which reacts to discour-
age production.
'The problem We have to consider,
however is the ultimate social result
Of this expanding domination and
whether it can be replaced by sys-
TEN Of better social character and of
equal economic efficiency for the pres
cnt and OF greater promise for the
future.
Trade Commissions Views
he Federal Trade Commissions
recommendations fall into three parts:
'tA) That the railroad administration,
take over all animal and refrigeration
car services.
"( - That they take over the stock
yard terminals
"lC) hat the Federal government
itself take over the packers branch
houses, cold storage warehouses. ETC., etc
with view, assume, to the establish
ing Of equal opportunity Of entrance
INTO distribution among all manufac-
tuners and Traders