Arizona republican., 1919-01-26
ADOPT LEAGUE 0E NATIONS POLICY
Says Entire Meat Industry Should Be Supervised For Producer and Consumer Closely Questioned By Heney-Ceverly Evades By Not Denying Admits
 "Tact Understanding g'-Aso Private Pool
Republican A. p. Leased WireJ

WASHINGTON, Jan. 25.-J. Ogden Armour today suggested a monopoly, under government supervision, of the entire meat industry of the country, as best for producer and consumer.
 Testifying before the senate agri- culture committee, he declared that by this plan millions of dollars could be saved, which would help increase the profits of producers of livestock and at the. same time cut down the cost of meat to consumers.
 The necessity of close government supervision was emphasized, however, by Mr. Armour in connection with his proposal
 Such concern must be regulated by the government" he told the com mittee, because few men, with such enormous power, would use it proper ly."
 There was no discussion of MT. Ar lnour's plan, which he proposed during cross examinations by Francis J. Heney, who conducted the federal trade commissions packing house in quiry. The questioning then touched upon alleged existence of a combina- ton among the leading packers, which MT. Armour denied.
 MT. Armour explained that the pack Grs contributed to a general fund, such as might be used in joint legislative action, and said he believed this was a common practice among industries Payments were paid on a percentage basis, which followed, he said, the basis adopted during a pool by these concerns many years ago, ito prevent an over-supplied market'
 Eventually Big Packers
 Each of the companies, he testified, now tried to maintain about the same share of business as at that time, but he denied that there was any actual agreement to that effect
 Don't you think that there is a decided tendency, MT. Heney asked, toward eventual growth of only three big packing companies-Armour and company. Swift and company and Morris and company.
 I've heard some such statement be- fore,' MT. Armour replied.
 MT. Heney contended that the coun- try would benefit if the business were conducted by more small packing houses, widely distributed. He ac- cused the packers of wasteful methods, made possible by their great volume of business.
 Mir. Armour contended that the pack CTS acquired no advantage from the relationship with banks and railroads. He gave the committee a full list of all banks and railroads of which he is director, and small companies in which he holds stock.
 MT. Armour will continue his testi- mony Monday, and probably will be followed by his counsel, Levy Mayer, who will discuss the validity of the kendrick bill to regulate the meat in- terests.
 Doesn't Deny Understanding
 MT. Armour denied any agreement existed between the big packers to buy only certain percentages of hogs at various markets. He said Armour and company, and he thought the others, tried to maintain the same relative position held when the National Pack ing company was dissolved.
 What's the difference between such a tacit understanding and an actual agreement to control a market?" asked MT. Heney.
 Well it's hardly tacit understand ing. We simply try to do our share, 2 replied Mir. Armour.
 Armour and company buy on a "5O- 90 basis" with Swift and company, al Fort Worth and Denver, the witness said, because of the condition of the industry there.
 If Wilson and company, or any other packer, bought in competition with Armour and Swift at Fort Worth" asked Mir. Heney, wouldn't you go into Q market where he was strong, as a retaliatory measure?" Yes, if his activity continued fol any length of time" Mr. Armour re- sponded.
 Approves U. s. Regulation
 The government should approve some agency to regulate the supply ot meat that comes on the market each . day, to prevent a glut," Mir. Armour said This would replace the "Veedel pool set up by the packers for that purpose and discontinued in 1902, he added.
 Mir Heney asked if there was not ar understanding now that none of the big five should interefe with business of the other four. as,it was determined at the time of the Veeder pool?"
 That's true in part" Armour re- piled.