Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1919-07-11
FEDERAL TRADE COMMISSION
LAUNCHES new ATTACK ON THE
FIVE BIG j. S. PACKING FIRMS
Declares That Step. Must Be
Taken To Stop ''Packer
Control Over All Import-
ant Foods In Country;
762 Companies Controlled.
By big Five Charge.

iOZ companies IOntrolled.
By big Five" Charge.
: Washington, July 11.-An ap-
preaching packer domination of all
important foods in the United States
and an International control of meat
products with foreign companies
seems certainty unless fundamental
action is taken to prevent it, the fed
eral trade commission declared today
in part one of its report to President
Wilson on the extent and growth of
power of the five packers in meat and
other industries"
"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 idea
that they threaten the freedom of the
market Of the country's food indus
tries and of the by-product Of the in
packer control of other foods will not
require long in developing"
Declaring the history of the pack
ers' growth is interviewer with illegal
commissions. rebates and with undis-
closed control of corporations" the
report urged the importance of full
publicity os corporation ownership for
all industries.
"As to devices for securing control
there does not exist adequate law"
the report said. "In its absence unfair
competition may run it's course to the
goal of monopoly and accomplish the
ruin of competitors without the secret
ownership being succeeded and con-
sequently 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
Control Many Firms, Charge.
Alleging that the big five" pack
ers-swift and Company, Armour and
Company. Wilson and Company. Nor
ris and Company and the Cudahy
company jointly or separately weld
controlling interest in SAT companies.
minority interests in 95 others and
! undetermined interest in 93-a total
Of 7s2 companies-and that they pro-
duce or deal in some IT'S comm odities.
largely food products, the report gives
this picture of growing packer inva-
sion into related and unrelated indus
tries. 49,
I'm addition to meat foods, they
produce or deal in such commodities
as fresh tomatoes, banjo strings,
foods, vim fz, curled hair, pepsin and
| washing powders. Their branch hous-
es are not only stations for the dis
trtbuti tion OF meat and poultry but take
| on the character Of wholesale grocery
stores. dealers in various kinds OF
produce and jobbers to special lines
of trade.
| Hold Large Interests.
They have interests large enough
| to be a dominating influence in most
of the services connected with the
production of animal foods and their
by-products, and are reaching out for
control. not only of substitutes of ami
/ NAL food but of substitutes for other
lines into which the integration Of
their business has led them. They are
factors in loan companies, making the
! necessary loans to growers and feed
erS of livestock: are interested in rail-
ways and private car lines transport
| ing livestock and manufactured ami
NAL products; in most Of the impor-
I lie market for the bulk of food ami
mails: and in livestock trade papers on
which growers and feeders rely for
! market news.
! They are interested in banks from
which their competitor packing hous-
es borrow money; in companies sup
plying machinery, ice, SALT materials,
J
| comp EDITORS: they are principal deal
ers on the provision exchanges where
future prices in standard cured animal
products are determined: they or their
smaller companies deal in hides. oleo.
! fertilizer material and other crude an
imal by-products: purchase from 9TH
er packers these crude by-products.
and themselves carry the nanufac-
! ture thereof to further stage than
most of their competitors.
"They are important factors in the
| leather industry, in oleomargerine and
lard substitutes. i'm cottonseed oil, in
! fertilizer. in soap. in glue, etc.
/ Big Distributing System.
Their vast distributing system.
with the advantage arising from the
control OF private cars. cold storage
and a network Of branch houses has
enabled them to extend their activi-
{, ties on large scale into poultry.
foods. canned vegetables. soda foun-
tani supplies and other lines
| Individuals Of the Armour family
are owners Of grain and elevator COM
panies and j. Odgen Armour is a per-
manent factor In the American Inter
( national corporation with its shipping
and shipbuflding interests. its import
and export companies in various lines.
its interest in q company organized to
develop cattle raising, meat packing.
Quebrache extract and allied bust
nesses in Paraguay, its control of a
large tea importing company and a
| sugar machinery corporation, and its
| minority stock in the United Fruit
/ company.
Some Of Swift and Company's sub
salaries are growing tropical fruits in
Hawaii; subsidiary Of Wilson and
| Company has reached into the salmon
! fisheries Of Alaska and a Morris cosSA
Germ cans shrimp taken in the waters
;of the Gulf Of Mexico. 81.
In England, France, italy. Holland
and other European countries large
/ meat distributing companies have
been organized by the packers to sell
the meats from their plants In the
United States Argentina, Paraguay,
Uruguay Brazil and Australia. !"
The big AVE." the report said, have
A control OF or interest Ii public utility
corporations In Sioux City, South st.
/ Paul, Portland, Oregon, q South San
/ Francisco. South st. Joseph, No, Hill
4 City. Mimi. Fort Worth. Tex., and
! Chicago. 81 q
Cnnixsl Several nanlEAl
AZ to financial power ths report
me packsr has aravn /, 1 alAsksa
degree upon me banks u II ~ nxfy
for LIQUID funds 10 = ~ ~
loans Anaple To- his purl ~ NJ
packer hes eecurAd Atal1ati06 fAeo11h
stock CvnssSslsip ~ tion - q.
IrectDra4Ass and An Other NAya NltA
il aS13e 3eEoue Aii1EA Aad trIat e. il = asitnos
alr Ai14eas. Mr. Gaa99 NJ 1gaslls