The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1919-07-11
Federal Trade Body Urges Con-
gress To FOrestalI 1t.
Makes First Report of Investi-
CATION of Meat Industry.
BIG FIVE SWAY STA CONCERNS
Have Interest in Total of 762,
According to Report.
Control Kansas City p. U. c.
Into Many Businesses.

Washington, July 1.-THE "big
five" meat packers will soon exercise
a powerful domination over the ma
tion's food supply and international
control of meat products unless con-
gress takes immediate steps to fore
stall these aims. the federal trade
commission today reported to Presi-
dent Wilson
IAN approaching packer domina-
tion of alT important foods in the
United States and an international
control of meat products with foreign
companies seems a certainty unless
fundamental action is taken to pre-
vent it," says the report which is part
one OF the commissions investigation
of the meat industry.
"a fair consideration of the course
the five packers have followed and
the position they have already reached
must lead to the conclusion that they
threaten the freedom of the market
of the country's food industries and
of the by-products of the industries
linked Herewith. The meat packer
control of the foods will not require
long in developing"
Charge Illegal Commissions.
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 all
publicity of corporate ownership for
all industries.
'As to devices for securing control
there does not exist adequate law"
the report said. 'In its absence un-
fair competition may run its course
to the goal of monopoly and accom-
plish the ruin of competitors without
the secret ownership being suspected
and consequently 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"
Swaycd 574 Companies.
Alleging that the big five" packers
Swift & Co., Armour & Co., Wilson
& Co., Morris & Co., and the Cudahy
company, Jointly or separately WELD
controlling interest in 574 companies,
minority interest in 95 others and un-
determined interest in 93-a total of
762 companies-and that they produce
or deal in some 775 commodities
largely food products. the report gives
this picture of growing packer in
vasion into related and unrelated in
dustries:
I'm addition to meat foods. they
produce or deal in such divers COM
modities as fresh tomatoes and banjo
strings, leather and cotton seed oil.
breakfast foods, vim fiz, curled hair.
pepsin and washing powders. Their
branch houses are not only stations
for the distribution 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.
In Other Lines of Business.
"They have interests large enough
to be a dominating influence in most
nF
production and distribution of animal
foods and their by-products, and are
reaching out for control. not only of
substitutes of animal food. but of sub
stitutes for other lines into which the
integration of their business has led
them. They are factors in cattle loan
companies making the necessary loans
to growers and feeders of livestock; /;
are interested in railways and private
car lines transporting livestock and
most of the important StOckyardS
companies-the public market for the
bulk of food animals; and in the live
stock trade papers on which growers
and feeders rely for market news.
They are interested in banks from
which their competitor packing houses
borrow money; in companies supply
| ing machinery. ice, salt. materials,
! boxes. etc, to themselves and their
competitors. they are principal deal
ers on the provision exchanges where
] future prices in standard cured animal
products are determined; they or
their subsidiary companies deal in
hides oleo, fertilizer material and
other crude animal by-products: pur-
] chase from other packers these crude
/ by-products and themselves carry the
manufacture thereof to a further stage
than most of their competitors.
Interests Outside of L. S.
They are important factors in the
/ leather industry, in oleomargarine and
7 lard substitutes, in cotton seed oil, in
fertilizer, in soap. in glue. etc.
Their vast distributing system. with
the advantage arising from the con-
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