The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-07-12
Federal Trade Commission
Says Domination Is Near
il Not Halted.
755 COMMODITIES IN LIST
Big SIS Customers and Compel
itors in Jeopardy Owing to
Banking Interests.
s.ecio, D,spateh TO The Sen.


that unless some action Is taken at once
to prevent It the big Ave packing COM
panies of Chicago will soon dominate
and virtually control the entire food sup
ply of the United States. Is contained in
Part l. of the report of the Federal
Trade Commission on its investigation Of
the meat industry, which was made pub
lie to-day. The report is long and COW
ers In detail all OF the operations Of the
pa ckers. declaring that in recent years
they, have been encroaching in many
lines of business until to-day their hold
irgs practically amount to domination in
most OF them.
AN approaching packer domination of
all important foods in this country and
an International control of meat prod
ucts with foreign companies seem GER
tainty unless fundamental action Is
taken to prevent It," the report says.
"A fair consideration of the course the
five packers have followed and the posi-
ton they have already reached must
lead to the conclusion that they threaten
the freedom OF the markets of the coun
try's food Industries and of the by-prod-
duct industries linked Herewith. The
meat packer control of foods will not re-
ouire long in developing"
The report says also that the history
of the growth of the Ave packers Is
interwovsn with illegal combinations, re-
bates and undisclosed control Of corpora
lions. In this connection the Trade
Commission urges full publicity of cor
porate ownership and adequate laws to
regulate secret control Under the pres
ent statutes, the report declares, unfair
competition may run its course to the
goal of monopoly and accomplish the
ruin OF competitors without the secret
ownership being suspected.
Have Control of STA Companies.
1t is pointed out by the commission
that the packing companies have a con-
trolling interest in 574 companies. a
minority interest in ninety-fve others
and an undetermined interest in ninety
three. a total OF 762. They produce or
deal In us commodities. most of which
are food products, and are rapidly add
ing others to this list.
At present there Is virtually no staple
food in which the hand of the big Ave
cannot be seen, and as a rule their
control has been followed by increased
prices. A striking instance OF this is
given In the report as to rice. which
increased SIS per cent. after the packing
companies began dealing in It. And be-
sides having interests in these 762 COM
panies the men behind the big five have
interests in many banks and trust COM
panies, so that they are able to affect
customers or competitors at the sources
of credit. The report then continues:
I'm addition to meat foods they (the
packers) produce or deal In such divers
commodities as fresh tomatoes and banjo
strings, leather and cotton seed oil,
breakfast foods. win AZ. curled hair pep
sin and washing powders. Their branch
houses are not only stations TO- the dis
tribution OF meat and poultry but take
on the character of wholesale grocery
stores. dealers In various kinds of prod
uce and jobbers to special lines of trade.
They have interests large enough 10
be a dominating influence in most of the
services connected. with the 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 substitutes for othe-
lines into which the indignation of their
business has led them They are factors
In cattle loan companies making the
necessary loans to growers and feeders
OF live stock: are interested in railways
and private car lines transporting live
stock and manufactured animal products,
in most of the important stock yards
companies-the public market for the
bulk of food animals, and in live stock
trade papers on which growers and feed
ers rely for market news
They are interested In banks from
which their competitor packing houses
borrow money; in companies supplying
machinery, ice, salt, materials. boxes
Sc, to themselves and their competitors
they are principal dealers on the pro-
vision 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: purchase from other packers
these crude by products. and themselves
carry the manufacture thereof to a fur
Their stage than most Of their competi-
tors.
Big Factor in Leather Trade.
"They are important factors In the
leather industry, in oleomargarine and
lard substitutes, In cottonseed oil, In fer.
tilizer, in soap. in glue. &C,
Their vast distributing system, with
the advantages arising from the contro
Of private cars, cold storage and a net
work Of branch houses, has enabled then
to extend their activities on a large scale
into poultry, eggs, cheese, butter, rice
breakfast IOOub, CdHncu vegetables, bOQ2
fountain supplies and other lines
From rendering edible fats from wha'
would otherwise be wasted In their owr
factories they have reached out to Sc
cure for rendering the waste fat and
bones OF local butchers in large sections
OF the country, and In some instances are
interested In companies contracting FOL
the disposal of garbage of large cities
Individuals OF the Armour family ar,
owners OF grain and elevator companies
and J. Ogden Armour and the presiden
of one OF the Armour subsidiaries ar,
important stockholders In a company pro
ducing from mineral deposits In Utah 4
substitute for potash as an element o.
commercial fertilizers
~. Ogden Armour Is also a promlnen
factor in the American Internationa
Corporation, with its shipping and ship
building interests. its import and expor
Companies in various lines, its interest II
company organized to develop cattl,
raising. meat packing, quebrache extrac
and allied businesses In Paraguay, III
control of a large tea importing compan,
and a sugar machinery corporation ant
its minority stock In the United Frui
Company.
Some Of Swift q Co.'S subsidiaries ar,
growing tropical fruits In Hawaii; a sub
sidiary Of Wilson & Co. Inc. has reached
into the salmon fisheries OF Alaska, anC
a Morris concern cans shrimp taken IN
the waters OF the Gulf of Mexico. Cat
tie brought from Central America ar,
slaughtered by or for some OF the bi,
packers at Mobile and Jacksonville. Ii
England, France. Italy. Holland ant
other European countries large meat dis