The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1919-01-21
OGDEN ARMOUR
TESTIFlES FOR
MEAT PACKERS
(By Associated Press,


WASHINGTON, Jan. 2O.-J. Ogden
Armour told the house interstate COM
merce committee today that pending
legislation to regulate the meat pack
ing industry was "reactionary" and
part of it probably unconstitutional,
and warned congress that IF a
monkey wrench is thrown into the
gears of this business" it's effects
would be felt in many other lines OF
industry.
Il interpret this bill as an effort to
dissolve an alleged monopoly and to
decentralize the meat packing indus
try" Mr.. Armour said. 1T seems to
be constructed in the belief that a
great number of small units engaged
in the surveying Of food is preferable
to few which are organized on
national scale.
''If the ability of the packing in
dustry to function property is impair
ed, it Will affect the livestock indus
try and it in turn win affect corn
prices Wheat will be then drawn in
and so will bread and so will labor.
and SO will everything that has for its
basis the wealth produced by agricul-
ture.
The theories on which pending leg
islation is based are not constructive:
they are not progressive. They are
reactionary. They would disrupt the
great manufacturing and marketing
machines which half a century OF en-
terprise has evolved and The results
would be detrimental not alone to the
leading industry of this nation, but
tn hot IF &.
public which produces, and tC the Ell
tire public which consumes food"
Possibility of government owner
ship of stock yards and other adjuncts
to the packing industry drew from Mr..
Armour reference to Red tape" and
controversies over trivial matters"
such as underground mail chutes,
Profits made by Armour and COM
negligible insofar as either the pro-
lon our total volume of business"
he said, they represent return OF
less than two cents on every dollar
of sales. The margin of profit in the
packing industry is the smallest en-,
joyed by any industry D. nstion;.! ca,n-
sequence"
Sales Increased.
Gross volumes of sales by his COM
pany in 1918. the witness said. totalied
1851 100000 compared with S575,00o,-
900 in 1917, but the net income was at
the rate Of nine percent on the aver
age net capital invested.
Mr. Armour in the course of his
statement made detailed answer Cor
Armour and company. OF which he Is
president. to the charges made by the
federal trade commission report on
its meat packing Investigation and
recommendation by the commission
on which the legislation now before
congress is based. He declared that
the high price of meat was the real
reason why President Wilson ordered
the investigation. Within the past
four years. he said. the price of live
hogs had increased c45 percent aud
costs of labor, clerical help and fuel
had doubled
Denies Price Collision.
As only seventy percent OF a hog
is edible and the remaining thirty
percent of hyproducts have not iu-
creased in value as rapidly as the
live animal, Mr.. Armour said. 1t could
be understood why bacon today costs
three timese what it did four year ago
He added that prices of live cattle
and sheep have advanced at a pace
with that of hogs.
Charges by the commission OF col
fusion among the five big packing
firms to control prices we're denied
categorically by the witness for Ills
firm.
In denying that there was any COM
bination among the packers to fix
prices, Mr.. Armour declared that one
instance of alleged price-fixing point
ed out by the federal trade commits
sion was taken at the request and
with the approval Of the food admin
istra ton. This was the agreed price
Of 22la cents a pound for lard com
pound, reached. the witness said, by
voluntary agreement between the
manufacturers SO as to stabilize the
cotton seed industry He quoted
circular Of the food administration. is
sued Dec. IS. 1917, to give the details
of the agreement.