The Birmingham age-herald., 1919-01-22
ARMOUR DECLARES COMPANY IS NOT
 MAKING EXCESSIVE
 PROFIT ON MEATS
Spends Over Four Hours in Reading Statement Oppos- ing Government Regu- tiOn of Meat Pack
 ing Industry
By Associated Press

Washington, January 2l.-J. Ogden Armour of Chicago, president of Armour < Co.,, spent more than four hours to- day before the House inter state commerce committee reading prepared statement opposing government regula- tion of the meat packing indus try and in answering questions of members of the committee. His examination will be con tinued tomorrow.
 MT. Armour denied that his company makes excessive profits, declaring the return last year on 61,000,000 worth of bushes was less than 2 cents on everyq s1 of sales, and said he was perfectly willing to relinquish his holG- >ings to ehe government upon being al- lowed just compensation. He warned, however, that government ownership implied red tape and restrictions which cannot help but add to the costs of the service"
 Charges of the feedral trade com- mission of collision among the five big packing firms to control prices were denied categorically by MT. Ar mour, who also insisted that there was keen competition between the so- called 'big five" in buying as well IS mark citing.
 ALL COSTS HIGHER
 Discussing the increased prices of meats, Mir. Armour said the reason why bacon now costs TO cents pound against 25 and 30 cents four years ago could be readily understood. Prices of live hogs had increased 245 per cent in that time, he declared. while costs of labor and fuel had doubled. The market prices of by-products had not increased in the same ratio as live hogs he asserted, and this necessari- ly put greater price burden on the edible parts of the animal.s Mir. Armour's prepared statement covered 6S printed pages and the Wit ness voice became so weak before the end that he had one of his assist ants complete it's reading. The after noon session was devoted entirely to
 
 members of the committee.
 'How far are the 'ramifica tions' of the meat packers to extend?" asked Chairman Sims, referring to criticism by the federal trade commission of the entrance of the packers into trades ap- parently unrelated to the killing of meat animals. ''fS you can tan leather, pecially as you control such quantities of hides? And why can't you retail those shoes to the public? If you can make lard compound from cotton seed, why can't you go into the business of raising cotton and of spinning the staple?" HAS WRONG IDEA Theoretically you are right; practi. cally, you are wrong, in assuming that we can do all those things" the witness replied. There is no more reason for us to engage in cattle raising than in shoe manufacture. but so long as I am alive, my firm will do neither. We could not make success of shoe maniac turing because it is separate industry. A business has to stop expansion at thu point where it loses efficiency by addins more articles than it's salesmen can han dle with profit. There's limit to what a man can do well.''
 MT. Armour asserted that many small
 
 firm and were making more money on their investment, because the larger cor poration's expenses are greater. Then you ought to split up into small concerns, 'S MT. Sims suggested. "No, because we make greater aggre- gate, the witness answered.
 MT. Armour gave the committee ex- tended reasons why he thought the pend ling bill to license the meat packing in- dustry and permit the government to ac- quire stock yards refrigerator cars and other adjuncts of the business, should l not be passed He declared that the packer owned refrigerator cars made nearly twice as many miles day as the railroad owned cars supplied to shippers not owning cars, because the packers kept tracers constantly after their rolling stock. He denied there was any dis crimination on the part of the railroads.
 ENOUGH FOR ALL Then if you operate these cars so eff lciently and yet lose money on them. how can the small packers hope to compete9" MT. Sims asked.
 "They can't compete unless they get cars, but there are enough railroad cars as rule to take care of them, MT. Ar mour replied
 i In response to questions by Representa- Itive Esch of Wisconsin, MT. Armour de- nied that ownership of stock yards was used to manipulate prices of cattle. He | told Representative Doremus of Michigan ] that he did not remember the details of 1 his requirement of the Union Stock 1 yards of Chicago with F. H. Prince of Boston. He asserted, however. that none i or the other packers was interested in the yards, and that so far as he knew, MT. f, Prince held all the stock not owned by