New Britain herald., 1919-07-11
Federal Trade Commission Warns
 Against Packer Domination REPORT TO PRESIDENT
Fundamental Action to Prevent It Must Be Taken-PackerS' Growth Interwoven With Illegal Combina- tiOnS, Statement Declares.

Washington, July 11.-An approach ing packer domination of all import ant foods in the United States and an international control of meat products with foreign companies seems a cer- talntN unless fundamental acton IS taken to prevent it, the federal trade commission declared today ill part one of it's report to President Wilson on the "eXtent and growth of power of the five packers ill meat and other in- dustrieS.'
 "A fair consideration of the course the five packers have followed and the position they have already reached" said the report" must lead to the con- clusion that they threaten the freedom of the market of the cOuntry's food industries and of the by-product in dustries linked herewith. The meat packer control of other foods will not require long in developing.'
 Many Illegal Combinations.
 Declaring the history of the pack CTS growth is interWOVen with illegal com binations, rebates and with un- disclosed control of corporations the report urged the importance of full publicity of corporate ownership for all industries.
 'As to devices for securing control, there does not exist adequate law the report said. 'In it's absence unfair competition may run it's course to the goal of monopoly and accomplish the ruin of competitors without the secret ownership being suspected and consa- quently without complaint to the commission or investigation of facts. The competitor is in jeopardy so long as he has not the knowledge of true ownership, and the public is entitled to such knowledge.'
 Big Five" Control Business.
 Alleging that the ''big' i've packers Swift & Co.,, Arm our & Co.,, Wilson & Co.,, Morris & Go. and the Cudahy Co.,, jointly or separately wield con- trolling interest in 574 companies, minority interest in 95 others and un- determined interest in 93-a total of 762 companies-and that they produce or deal in some T75 commodities, largely food products, the report gives this picture of growing packer inva- sion into related and unrelated indus tries:
 "In addition to meat foods, they produce or deal in such diverse com- modities as fresh tomatoes and banjo strings, leather and cOttonseed oil, breakfast foods, win fig, curled hair, pepsin and washing powder. Their branch houses are not only stations for the distribution of meat and poul- try but take on the character of wholesale grocery stores, dealers in various kinds of produce and jobbers to special lines of trade.
 Are Extending MonopoIieS.
 "They have interests large enough to be a dominating influence in most of the services connected with the pro- duction and distribution of animal foods and by their by products, and are reaching out for control, not only of substitutes of ani- nal food but of substitutes for other lines into which the integration of their business led them. They are fac tors in cattle-loan companies making the necessary loans to growers and feeders of livestocks; are interested in railways and private car lines trans porting livestock and manufactured animal products; in most of the inn pOrtant StockyardS COmpanieS-the C public market for bulk food animals; and in livestock trade papers on which growers and feeders rely for market news.
 They are interested in banks from which their competitor packing houses borrow money; in companies supplying machinery ice, salt, mate rials, boxes, etc., to themselves and their competitors; they are principal dealers on the provision exchanges where future prices in standard cured animal products are deter mined; they or their subsidiaries deal in hides, oleo, fertilizer, material and other crude animal by-products; purchase from other packers these crude by-products and themselves carry the manufa cture thereof to | further stage than most of their competitors.
 "They are important factors in the leather industry, in OleOmargarine @ and lard substitutes, in cotton seed oil, in fertilizer, in soap, in glue. etc.
 Have Unlimited Advantage.
 ''Their vast distributing: system, with the advantages arising from the control of private cars, cold stora ge, enabled them to extend their activi- ties on a large scale into poultry. eggs, cheese, butter, rice, breakfast foods, canned vegetables, soda foun- tain supplies and other lines
 "Individua1s of the Armour family are owners of grain and elevator
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