Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1919-01-23
L. F. Swift, Packer,
in Strong Denial
of Federal Claims

Washington, Jan. 23.-Testifying
before the house committee on in
terstate and foreign commerce to-
day Louis F. Swift, president of
Swift & Company, today entered a
long series of denials to state
ments emanating from the federal
trade commission.
Mr.. Swift asserted that such leg
islation as is proposed in the Sims
and Kendrick bills would cripple
the packing house industry He
assailed the report of the federal
trade commission as grossly un
fair. He said that the hearings
conducted for this commission by
Francis ]. Heney were one-sided in
that the packers were not allowed
to answer any of the allegations
made against them.
The witness charged that after
an Investigation of over a year the
commission was unable to deny
that the profits of the packers are
so small that they could be wiped
out without affecting the price OF
livestock or the price of meat by
more than a fraction of cent per
pound.
This profit" continued Mr.
Swift, "fluctuates from week to
week and often becomes a loss.
During 81 weeks Of the year end
ing June 80, 1918, for example,
Swift & Company either made no
money at all or suffered an actual
loss on its beef operations"
The witness denied with vigor
that there was any combination of
packers, and asserted that if there
were, it could not prevent losses.
The only thing that is wrong
with the packing business is the
public impression that something
is wrong" said Mr.. Swift eff that
impression, which has been
created by misstatements and the
inf1aming of public prejudice,
this so-called legislation, would be
remedied."
The witness said that his COM
pany built refrigerator cars be-
cause the railroads would not, and
that the 1000 of these cars owned
by Swift & Co. were 20 per cent
below their requirements. They
were operated at a loss, he said |
He had no objection to government |
purchase of them if adequate ser
vice were guaranteed.
1T looks to me very much as if !
the government were conducting an /
experimental operation, with the /
packing industries as the patient
If the patient survives ii can be
tried on other industries We OBJ
iect to providing the clinic. There
IS just as much sense in a railroad |
building hotels to take care of pas
sengers during a several days stop |
over as there is in their building
packing house branch houses. The
branch house is not a freight ter
it is merely a market house
where the food products are sold"
Mr.. Swift testified that if the
packers had been permitted to an |
swer at the Heney hearings they
could have convinced any fair
minded person that there is real
in the business and
hat no irregular arrangements ex-
st.
"I remember" he continued,
when we paid four cents a pound
or good live cattle, and the produc-
er was satisfied. Now we pay IA to
g cents and nobody is satisfied"
Mr.. Swift said that the proposed
egislatiOn gives practically an un-
limited and underlined power of con-
rol over private industry, and
Idded:
''It seems to me that a less dan
,erous method of procedure would
,e government supervision to see
hat no laws are violated in any .
aspect In case of violation we ex-
,ect to suffer the consequences. I
'elieve the government should have
ul1 access to the packers books
nd figures and should see to it
hat the laws are not violated in
ny way"