The Washington times., 1919-08-06

F. z. White. vice president OF Ar
mour q Co., told the Senate District
subcommittee yesterday afternoon a.
its initial investigation of the activi'
ties OF the big Five" packers.
The middleman advances his prodss
with an advancing market, Mr.. White
claimed, and holds the prices at the
highest point as long as the people
will pay them. Packers prices, OF
the other hand, have gone down more
in proportion than the price Of live
stock on the hoof has decreased.
High Prices Here.
Washington Is paying higher whole
sale prices for meat than Baltimore
Mr.. White told the committee, be
cause the washington buying public
demands choicer beef. A good dea
better quality Of beef Is shipped Il
Washington from the packers than t.
Baltimore, he explained-in fact, bet
ter generally than II shipped to mos
other Eastern cities.
washIngtonlans demand corn-fec
steers, Mr.. White said, and don't want
the grass-fed beeves- The reason foI
the shipment of q better quality OF
beef 10 washington was given that
Washington is a transient city, with
u greater demand for steaks and
chops than for the cheaper grades OF
meats. The difference in the average
costs Of meats in Washington and
Baltimore generally ranges about y
cents or cents a pound wholesale
Live Competition Here.
There is the Invest sort OF competi-
ton in the Washington market be-
tween the big Five" it was brought
out at the hearing. with no corner
ing" of the market by any one Of
them.
Senator Sheppard OF Texas closely
questioned w. w. Trewhella, local
representative of the Armour dis
tributing agency, regarding cold stOF-
age, in an endeavor to ind out If
meats are being held in cold stor-
age by dealers for the purpose of in
fiuencing prices.
This is impossible in Washington,
Mr.. Trewhella explained, on account
Of the lack Of adequate cold storage
facilities. Very few dealers are
equipped with cold storage boxes Of
sufficient size to hold meats beyond
few days, he said.
Armonr & Co. welcomes Acongres-
sional investigations Mr.. White told
the committee, taking up a general
defense OF the packers. He declared
its books are open wide for investiga-
tion by any responsible person Con-
gress or the subcommittee may ap-
point to examine them.
Not PrOhteerInE.
The high cost of living is as serious
a question for big business, he
- Ill
Armour & Co. IL not profiteering. and
our records will show it," he said
Mr.. White declared that, although
the Food Administration allowed them
to make an earning of per cent on
their investment. their earnings in the
meat trade were only Sc per cent last
year. The company has made no
profit on the beef business at all this
year, he claimed.
Taking the Federal Trade Commits
sion to task. Mr.. White declared that
the commission had attempted to put
the packers in o false light by with
holding figures from the public. The
he charged, had refused
to give out the figures showing that
his company had made a profit OF only
) 6 per cent on its meat business. He
also said that the Federal Trade Com
had said that the "big fve"
controlled IS per cent OF the meat
business of the country, when in
reality they controlled only 90 per
cent.
The high cost Of labor has hit the
packers a tremendous blow. as Il has
done the retailer, Mr.. White explain
ed, wages for employees in the pack
ing plants having increased as much
years. The increase has been about
10 per cent during the last six months.
Low Cost to Consumer.
No business in the world is han
died at such a low cost to the con-
sumner as the packing business, Mr.
White claimed, the cost Of distri ou-
ton being ~ per cent
There is ample meat on hand in the
United States to meet all demands
and the country is in no danger of
running short. Mr.. White told the
committee in explaining that the
packers were opening up livestock;
yards in 'undeveloped" territory. II
also was brought out that there
would be plenty OF hogs this fall TO
meet the demand
Emphatic denial was made by Mr.
v
the country are solidly in support of
the Kenyon bill providing for Gov
eminent regulation and control of the
packing interests. The interests OF
the packers and the livestock men.
he contended. are identical.
Congress is not going to help re-
duce prices by regulating the pack
ers, he pointed out; instead it is liable
to increase the cost of meat. You
can talk about prohteering all you
want. but the law of supply and dc
mand is going to continue to be the
Influencing factor in prices" Mr..
White said with this continual
agitation going on the reflex reaction
will fall upon the consumer. The re-
taller advances his profits with an
advancing market and holds them
there at the highest point as long as
the people pay them. Packers prices
have gone down more in proportion
than the price of livestock on the
hoof has decdeased."
Urges Profits Tax.
Mr.. White told the committee that
the best way to remedy "profiteerinz'
would be for Congress to provide an
excess proft tax.
Lowering the price of wheat - a
step in the right direction toward
lower living cost. he suggested. and
to lower the price of the loaf OF
bread would be the most practical
step the Government could take
When the Government allows the