The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-08-19

GR0NNA FEARS NEW
BOSTON TEA PARTY
Tells Kenyon Committee Cor
porations May Figure in
Role of George III.
PACKING HEARING OPENS
Colver Says Licensing Packers
Might Involve Licensing
Business in General.
PACKING HEARING OPENS

Special DespatcA to TIE Sun.
wAsHINoroN, Aug. ls.-Hearings on
,he Kenyon bill to restrict activities OF
The packers and provide for complete
\ Government regulation OF the meat busi-
ness without Federalizing the industry
we're begun to-day before the Senate
Committee on Agriculture.
As preface to the hearing. Chairman
Cronna IN. d. told the committee that
there was a nationwide demand for
regulation of corporate profits which
Congress could not refuse TO ignore II II
took into proper account the present day
tendency toward revolution in world
politics and the dissatisfaction with the
conditions OF living which high prices
and lost buying power In the dollar had
produced.
Those who are the possessors Of
great wealth should carefully regard the
present situation" said Senator Gronna.
We know of revolutions that have been
justihable. We despise anarchy and
violence. rioting and the application of
irsensate force, but II has been sug
gested that another Boston tea party
may be about due, with the corporations
rlaying the undesirable part OF George
Ill"
Packing No Longer Private.
Senator Kenyon (IowA). author Of the
oh, told the committee that he con-
sdered his measure a radical move In
the right direction.
But it must be borne in mind said
ne. that although this measure is
drastic it is not a government owner
: ship measure. II does provide a new
method of corporation control for this
country. II suggests the licensing OF the
packers, the divorce 70 the packing con-
Germs from stockyard ownership and
elimination of their control of refrig-
orator cars. 1t is based directly on the
report of the Federal Trade Commission,
used in combination with definite infor-
nation in the hands OF this committee"
Mr.. Kenyon said the business of meat
packing was no longer private business
and that II the monopoly of the whole
industry has grown to the extent appar-
emily disclosed in the report of the Fed
ersl Trade Commission and the evidence
given before the Agricultural Commit
tee it is to-day indefensible and in
tolerable Its efficiency can be dis
counted on the ground of its other dis
advantages and shortcomings, he held.
Senator Kenyon further asserted that
the committee planned no attack on pri-
vate property, despite the impression to
this effect 1--WE are not trying to in
jure business or stop reasonable profits
but excess profits to-day are treason
able said the Senator
Chairman Colver OF the Federal Trade
Commission was the first witness. He
reviewed the findings of the long IN
vestigation which the commission had
undertaken. describing in detail the con-
troll of the whole meat business Of Amer
ica ~ Armour q Co. Swift. Wilson,
Mons s. Co. and Cudahy. the Big
Five"
Mr.. Colver held that the Independent,
packers outside the great group, with
its headquarters in Chicago. were a
negligible factor in providing competi-
ton or influencing prices toward lower
level.
The packers control prices through an
agreement in combination not 10 permit
bidding up of cattle prices on days when
subnorTnal supply of cattle come 20
market. said Mr.. Colver. He described
the live stock pool as a combination to
prevent higher prices to the producers
II live stock.
Various successful attempts were
made by the packers to keep alive these
pools. but one after the other they ral
atoul Of the law" said Mr.. Colver.
AT the principal markets OF the coun-
try there has arisen a situation by which
the big Ave In combinations OF one, two
three. four and even all i've buy year
after year a predetermined proportion OF
the animals offered for sale"
General Licensing an Issue.
Mr. Colver gave to the committee a
vast array of figures in support OF this
assertion. Then, regarding the investi-
cation, he said I'VE are not interested
In profits and were not looking for peo-
pie who simply had money. It IL the
outstanding feature OF the packing in
6ustry. however, that fresh meat can b
sold at a loss and the whole bushes:
conducted at a profit
The hearings developed the fact that
an issue which must be decided by the
committee Is whether Congress wishes &c
embark on the sea of general licensing
for American business. Senators Francs
CMd.) and Smith (Ga), asked Mr. Col
yer numerous questions along this line
and all members OF the committee en-
gagged In the discussions before the sub
,ect Was passed over.
Your line of argument would lead
10 the conclusion that 20 reach one class
OF industry with licensing Legislation
you have got to include them ALL" Sen
stor Smith said TO Mr.. Colver. Yes.
think all will have to be reached" Mr.
Colver said. "All commodities will have
TO be included"
Il want to 20 slow in comforting ar
bitrary powers of any kind, especially
such as licensing" Senator France said
After our experience during the wal
we do not want any one man going be
hind closed doors and settling things &c
suit himself"
Senator Kenyon asked Senator France
IL the vesting Of the proposed powers In
board would do away with any OF The
dangers
Il do not care whether Il is a board
or az Individual" Mr.. France returned
TT IS bad ] am talking from practiea
things which went on during the wal
under the licensing by various Govern
ment agencies. II is a proposition which
think bears close scrutiny"
Mr. Colver also attacked the five larR,
packers for engaging In the cotton sect
oil industry. He charged. FIRST tina
they controlled" 1t. Later. however
he asked th-t the record be corrected
70 show that the hve large packer
together have about one-third OF tn,
cotton seed oil mills"
The Institute of American Meat Pack
efs made the following comment regard
ing Chairman Colver's statement:
Mr.. Colver's testimony was merell
long rehash OF the numerous Fedora
Trade Commission reports which hav
been issued during the past year. Tn
Position taken by him to-day Is who'll!
unsound and every point made in hi
testimony will be answered In the mex