New-York tribune., 1919-08-19
Packers to Control Entire
Food Supply Of Country
by 1925 Unless Curbcd,
Says Trade Commissioner
Data OH Combine Ready
Licensing System Is Urged
as Precau,ion Against
Revolutionary Activities
!Ncw Ycrk Tribune
NCs1,irUfCu Bureau

Washington Bureau
WASHINGTON, Aug. 1s.-The entire
food supply Of the United States will
be in the hands of the Big Five" pack
ers by 1925 unless action is taken by
Congress to curb their activities. W.
B. Colver, member of the Federal
Trade Commission, told the Senate
Committee on Agriculture to- day. Mr..
Colver said the Federal Trade Com
mission has found evidence Of COM
bne by the packers to stifie competi-
tlon.
The 1920 model Of the trust is
bringing together the competing in
dustrics," Mr.. Colvcr told the commit
tee
What will the 1925 model be-" SEN
ator Kenyon asked.
THE 1925 model will be owning all
the packing plants, controlling Gamer
les of fresh vegetables and fruits, own
ing and controlling factories to turn
cereals into food, controlling wholesale
distributing plants and continuing on
down to the retail store. They will
leave nothing. | don't know how much
further they can 60 unless they eat
our food for us
Two members of the committee urged
passage of the bill before them for
placing the packers under Federal
license as necessary precaution
against revolutionary activities.
Gronna Hints Revolution
"The people will no longer tolerate
reasonable profits by those who have
acquired monopoly of the necessities
of life." said Senator Kenyon, author
of the bill. This is not bill for gov
ernment ownership; it simply is bill
for Federal regulation of the packers.
1t divorces the packers from stockyard
and refrigerator car ownership"
I've despise anarchy and violence,
but we know of revolutions that have
been justihable," Senator Gronna,
chairman of the committee. said at
would seem that those who control
great corporations should carefully
view the present situation"
Mr.. Colver told the committee the
packers have already set up in Eng
land the sort of monopoly of fod they
will have perfected in the United States
by 1925 unless action is taken to reg
ulatc the industry.
I'm England the five big packers
tSwift, Armur, Morris, Cudahy and
Wilson, have control that runs down
to the retailer" he said. "These gem
tlemen now have in England in thirty
! four cities over sxty-four wholesale
meat distributing plants and over 1000
retail meat shops. 1t seems that is the
1925 model of the trust having it's trial
rum"
Says Profits Are Hidden
Mr.. Colver insisted that the efforts
! of the packers to convince the public
that they are not making large earn
ngs is an attempt to cover hidden
profits.
"Proits cannot be estimated on the
basis of pound of meat" he said,
because meat can be sold at loss
and the business still be profitable.
Enormous profits are taken out before
the figures appearing IN the ADVERTISE
mentS are arrived at"
Mr.. Colver said the Federal Trade
Commission did not advocate govern
ment ownership of the packing indus
try. but did advocate government
monopoly of the rolling stock for
transportation of meat animals, gov
ernment ownership Of the stock yards
and government ownership Of enough
branch houses and cold storage plants
to insure a competitive market.
The five big packers control 7S per
cent of hides of animals killed for
transportation in interstate commerce.
MIR. Colver testified, and have S5 per
cent of the visible supply Of hides un-
der their control.
Replying to statements by represent
atives of the packers that the Federal
Trade Commission has not made public
all the correspondence it seized during
its investigation. Mr.. Colver revealed
that the Department of Justice has
been at work ten months building up
a case against the packers out of the
evidence secured by the Federal Trade
Commission. 1t is upon this evidence,
he said, that the proposed antitrust
suits against the packers will be
brought.
Free Competition Needed
Elimination of profits would not
work with the packers" said Mr.. Col
yer, in reply to a suggestion by Chair
man Gronna. "They would simpy pass
the burden back to the consumer. The
only way to meet the situation is to re-
store free competition and then ex-
cessive profits will be impossible.'
The Commissioner said that at the
present time the big Five" owns or
controls 563 different corporations
manufacturing or dealing in over 700
different commodities
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