Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1919-02-19

De COntsnueO. l pSilsNS. mat those
concerns have developed great econo-
mic efficiency. that their costs OF
manufacture and profits are made
from the wastes of forty years ago.
The problem we have TO consider.
however. is the ultimate social result
of this expanding domination. and
whether it can be replaced by sys-
tenn OF better social character. and of
equal economic efficiency for the
presen, and of greater promise for the
future. Ii is certain. to my mind
that these businesses have been eco
nomically efficient in their period OF
competitive upgrowth, but, as time
goes on, this efficiency cannot fail 10
diminish and. like all monopolics. be-
gin TO defend itself by repression
rather than By efficiency. The worst
social result of this whole growth in
domination of trades is the under
mining of the initiative and the equal
opportunity of our people and the
tyranny which necessarily follows IN
the commercial world.
The federal trade commissions rec
concentrations fall into three parts:
"a, That she railroad administra-
ton take over all animal and refrlg-
. Grafton car services.
,Bi Thu: they take over the stock
ward terminals.
&C, That the federal government
Itself take over the packers branch
houses. cold storage warehouses. etc,
with view. | assume, to the establish
ing of equal opportunity OF entrance
into distribution among all manufac-
turers and traders.
As TO the first part of this recon-
mendation. on car service. am IN fuii
agreement and may recall to you that
soon after its installation, We rec
commended that the railway admins
tration should take over and operate
all private car lines III food products
THIS has. TO some degree, been ac-
com pjished through their car service
, division.
! These arrangements are purely IN
,ler var powers. and If the reforms
,,roposed are to be Of any value, they
must be- placed upon permanent
basis and not merely for the war.
There can he no doubt that the car
/ services, IN order to obtain tic results
( desired md the greatest national
! economy. mus, bc grcauy expanded
and must be operated from a national
! point If Iie,>. rather than from That
OF each individual railway. More
over. they are highly technical serv-
| ices beyond the ordinary range OF
! railway management and need 10 en-
| brace all cooled cars as we'll as meat
| ears. Whether this service on n ma
tlonal scale should be conducted pE
! the Government ur by private enter
prise, under control as public utli-
ltv, seems 10 mo TO require further
! thought and. i'll any event, TO depend
| upon the ultimate disposal Of the rail-
; way question.
As 10 the stock Yards, ain IN
agreement that they should be en-
tirely disassociated from the control
Of the packers. 80 distinction must
he drawn between the stock :drGS aS
a physical market place and the nuy-
, ing ana selling conducted therein
In the first Ssn1c, III" tomrldI u'S
largely center around Tia" exclusion
not Of buyers and sellers, but Of the
prevention Of competition from es-
tabllshlng packing plants either upon
land Of The Yards. or OF obtaining
track and other connections there
with. The solution OF this problem in
ner1nanent form will also depend upon
the ultimate solution OF the Railway
problem Ii the Government should
acquire the railways, 1t would appear
TO me that il should, as part oil the
system, acquire the yards. II the
government returns the railways 70
their owners, il would appear to me
that these ends could be accomplished
by appropriate regulation under the
Interstate Commerce Commission
and this should be done ad interim.
AS to the wrong practices between
BUYERS and sellers, these would not
be corrected b., the Government oUn-
ing or controlling the physical yards:
they are. in fact. now under war res
ulation By the Department OF Agri-
culture.
As to the Recommendation that the
! federal government should at once take
over the packers pIdtltn HOUSES, 80
! storage and warehouse facilities. ma
| much difficulty. | do not assume ira
! the trade commission contemplates the
government entering upon the purchase
and sale of meat and groceries at these
! establishments. Nor does it appear &c
| me that the individual Sc parate am
scattered branch houses Of the packers
furnish any proper physica! basis for
free terminal wholesale markets. ir
| discussion with the independent pack
! ers. l find no belief that the pack
ers branch houses would serve as
| basis of universal market service, and
| / find much differences OF opinion as
| to public markets as solution. Any
! Of the great packers equipment in this
. particular would in any event require
! a great deal of extension to effect such
/ detectives, and We are in no position
to find the material and labor during
| the war.
! We do need an absolute assurance to
! the food trades OF such terminal facili-
+ ties as will allow any manufacturer OF
dealer in any food product equal OPP
! portunity to handle and store his goods