Daily capital journal. (Salem, Oregon) 1903-1919, 1919-01-21
BY Raymond Clapper

Omitted Press Staff Correspondent
Washington, Jan. 21.--Flatly deny
ing charges of conspiracy WIN other
packers, j. Ogden Armour replied to
the recent fire of the fedcral ssade
commission today.
Testifying before the house interstate
commerce committee, he built UP an
elaborate defense of his concern s busl-
ness conduct
Armour finished with his sweeping
denial:
81 say to you positively that we have
not for many years been and are not
now in any pool, combination or ar.
sangement of any kind, either directly
or indirectly, or openly Or secretly or
uader cover. All such charges are ut
tcrly unfair and untrue"
Throughout Armour made the federal
trade commission his target, attacking
its methods during the recent investiga-
tion directed by Francis J. Heney.
Armour's First Appearance.
This was Armour's first appearance
before government body. His com
pany has not previously been given a
chance to answer accusations, he said.
In the investigation made by tho
federal trade commission, and which
mas resulted in the pending bills, it
has been admitted by Chairman Colver
that we were afforded no opportunity
to produce witnesses to inroduce testi-
mony or to expain Or answer any oi
the documents introduced at that hear
sng," Armour asserted
He earnestly urged congress not t.
pass pending bills providing govern
ment licensing Of packing houses, and
government ownership or operation Of
stockyards, refrigerator cars, branch
hnuses and other adjuncts to the pack
ing business.
eff monkey wrench is thrown into
the gears of this business, its effect
will not be confined to the meat pack
ing industry" Armour went on.
"The theories on which pending leg
islation is based are not constructive,
they are not progressive. They are re-
dictionary"
'sSuch laws probably will be uncon.
stitutional, Armour s legal advisers be-
ieve.
Touched High Prices.
Touching briefly on high prices, the
witness said live hogs had increased in
price 245 per cent in four years. Labor
and fuel costs have also gone up, he
pointed out.
Charges Of excessive profits, how
ever, were denied. In 1918 Armour s
profits are said to have been 1.8 cents
on each dollar of sales, as compared
with 37 in 1917.
Recalling that on November /, 1917,
tho food administration limited pack
ers to per cent on the capital invest
ment in meat producing lines, Armour
declared that only about one.half Of
this allowance was actually earned.
"fThe federal trade commission" he
continued, "has failed completely to
iustify its charges of unduly large prof
Its.
.sDuring the last Is years, including
p<lc ndI pCliout Inc ChtulllSS VI AiAhVui
and company, on the actual investment
and appraised value of the business av-
eraged SO per cent on everything
Guiding all our by-products snd all cur
associated ines.'i
"Side lines pay the bills" said Ar
mour, in explaining the policy Of push
ing by-products. The sales organiza-
hon can be used and factories and EN-
ployes can be kept busy in offseason
periods. soap, violin strings, soft
drinks and perfume were classed as
legitimate sidelines for packers.
Had Lost Money.
Referring to the pending bill, which
would take refrigerator cars out Of pack
ers hands, Armour insisted he had lost
money on refrigerator cars for the last
six years, but that they were essential.
They are subject TO the interstate com
meree commission, he said, adding that
he failed to see any advantage to the
puohe by government ownership of
them.
Armour considers government owner
ship Of stoekysFds immaterial as long