The Washington times., 1919-01-23

method of procedure would be Gov
ernment SUPERVISION to see that no
laws are violated in any respect. In
case of violation of the law, we ex-
pect to suffer the consequences. but
it is not our intention 20 violate the
law
believe that the Government should
have full access to the packers books
and figures and should see to it that
the laws are not violated in any way.
Packers i'm Competition.
Let me say emphstically that Swift
& Co. has no agreement of any kind
with other packers to control the
prices of live stock or meats, to con-
troll the division of live stock pur-
chases. or to divide territory in the
purchase or sale of products.
There are cases in which we have
co-operated with other packers in the
joint ownership Of general facilities,
such as stockyards. but this joint ac-
tion has been for the purpose Of pro-
viding facilities which either did not
exist or which existed in imperfect
form, and such acton extends in no
way to the control of prices or ship
ments.
The packers are in open and keen
competition with each other in the
purchase of live stock and the sale of
meats.
Small Profits Proof.
Perhaps the most conclusive proof
of what 1 say is that, after investi-
cation of over a year the Trade Com.
mission is unable to deny that the
profits of the packers are so small
that they could be wiped out with
out affecting the price of live stock
or the price of meat by more than
fraction of a cent a pound. 1t IL
difficult to see how this profit could
be lower, and there is no other bust
ness that is conducted on such a mar.
row margin.
This profit also fiuctuates from weeK
to week and often becomes a loss
During twenty-one weeks of the year
ended June 80, 1918. for example
Swift & Co. either made no money al
all or suffered an actual loss on its
beef operation.
Certainly. If there was a combina-
ton it would be worthless II 1t could
not prevent losses and If it could
not result in more than a bare mini
mum living profit.
Construction of New Plants.
l have never known of as many new
packing houses under process of con-
struction as there are now-one al
Omaha-the Skinner Packing Com
Sioux City, the Midland Packing Com
pany costing in excess OF $1,000, 900
the Anheuser-Busch people in st
Louis are going into the packing
business, called the "Bevo Packing
Company" with a capital of 100000
Numerous other plants have beer
started, all of which goes TO show thai
there are no restrictions and that al
have a free hand.
The packers have made money. but
not an unreasonable amount. They
have made il because they are good
merchants and handle the business in
a business-like manner.
Divi.ioA of Live stock Receipts,
Mr.. Colver explained to you on De
cember 10 that he believed that the
packers exercised a control oveI
prices by means of a division OF live
stock receipts. He said
(Pamphlet-p s. "The Commission
believes and has reported that in tire
rketing of live animals. 1t ha;
found that a free market does nct
exist, in that five very large packing
concerns and the five largest in TIE
country-divide amongst themselves
proportionately and in a continuing
proportfon-the purchase of the live
animals"
The statement that a free mar,
does not exist is absolutely incorrect
1t is based upon the improved as.
LnN iS n,,S
covering the proportionate purchase
of live stock.
No such allotment or agreement
does exist, and the market is just ss
free and open to anyone who wishes
to sell or purchase live stock as tn,
Union Station in Washington is open
to the public.
1t takes a very small percentage OF
the number of livestock killed to
make a really great difference in the
number of head. As an example. aC-
cordinG TO the Federal Trade Com
missions own figures. We increased
our own ratio from 1913 to 1917. so
that we slaughtered about 10000
more cattle in 1917 than If we had
not increased that percertage.
stock Yards.
The reason that our company be-
came interested was because Of the
necessity that new interests should
take hold of and develop the stock
yards as facilitis where the stock
growers could market their output.
This feeling on our part was devel
oped by the pressure of tho live stock
interests and the local people of st
Joseph, St. Paul, Denver, Sioux City
and Fort Worth. and we are assoCiat
ed with from 20 to 200 tockholders
(meaning the general puhlic) in each
case, and in nearly every case own
less than the majority.
Each one of these stockyards com
panies owns an exchange building and
rents office facilities to both the
commission and the buyer without
favor. At each place we were instru
mental in organizing a small bank
and a cattle loan company, simply to
give the livestock growers and stock
men facilities and to help establish and
maintain the live stock market and
outlet.
Since the primary desire OF the