Evening star., 1919-12-26
PACKERS TO FACE
81 MORE CHARGES
OF BREAKING LAW
Recent Compromise Not to
Prevent Proceedings by
Trade Commission.
BY DAVID LAWRENCE.

The troubles of the Chicago pack
erS are by no means over w nat the
| Department of Justice has done IN
compromising suit brought under
the Sherman antitrust law VIII not
swerve the Federal Trade Commis-
sion from it's course in bringing pro-
ceedings in thirty-one different cases
in which il is alleged that the pack
ers are violating the Federal Trade
Commission law with reference TO un-
fair competition. -
The full significance of niue
statement issued recently, rather
vaguely worded at the time. but con-
veying. nevertheless. the intentions
of the Federal Trade Commission. Is
Just beginning to be apparent. II
develops that the commission was
fully aware of the negotiations De,
tween the Department. of Justice ana
the packers, and prepared the state
ment of it's position to be issued CO.
incidentally with the announcement
of the compromise reached by tne
Attorney General. In many quarters
the Federal Trade Commissions posi-
satisfaction with the course OF the
Department of Justice. and the fact
that the commission addressed lts
letter to the President and asked for
a continuance of his confidence was
construed as the outcropplng OF an
interdepartmental quarrel.
Good Feeling Exists.
But that is not the situation. The
feeling between the Federal Trade
Commission and the Department OF
Justice is friendly and cooperative.
There is a perfect understanding or
the scope and jurisdiction OF each
branch of the government with rsfer-
ence to the suits against the packers
The Federal Trade Commission fur
nished to the Department of Justice
much of the evidence which was used
in the suit brought under the Sher-
mar law. That is only one of its
functions. however. Under other laws
it is charged with the duty OF com
pelling big business to desist from
unfair trade practices. and its orders
are subject to affirmation or reversal
in the United States court OF appeals
So while the packers may reacn an
agreement with the Department OF
Justice as to their dissertation from
related lines of business constituting
monopoly. that has nothing to do with
the work of the Federal Trade Com
mission under other laws.
Concerning Small Concerns.
The big question which the Federal
Trade Commission is trying to answer
in behalf of independents and smaller
concerns than the packers is this:
"If the s525. 100000 of capital which
has hitherto been distributed in more
than 400 different kinds of business
now must be concentrated in the meat
business and in the9butter, egg, cheese
and poultry business, what will $52o,-
900 OOO of organized capital do to the
persons engaged in the meat. butter,
egg, cheese and poultry business:
The packers know just what the
powers of the Federal Trade Commits
sion are. but an item in a Chicago
neWSpaper recently gave the impress
sion that they expected President Will
son to call off the Federal Trade Com
mission. 1t is known that the packers
have discussed that possibility with
the Attorney General. but the latter
has no more jurisdiction over the Fed
eral Trade Commission than the Sec
retary of the Navy or any other mem
Der of the cabinet
1t will be noted that the Attorney
General left the question of butter,
eggs. cheese and poultry Ito further
consideration" which may or may not
mean the entry of another compromise
decree with the Department OF Justice
or submission to an order from the
Federal Trade Commission.
Position of mmissfon.
To understand the position of the
Federal Trade Commission today. the
following excerpt from it's letter to
President Wilson, sent to the White
the comproSciSe with the packers be-
came known. ought to be read:
The commission found that with
respect to the meat packing indus
try there existed moEopolies, con-
trolls. trusts. combinations. conspira-
cies and restraints of trade out of
harmony with the law and public in
terest. The commission so reported
to the President and to the Congress
and placed it's mass of facts as rap
idly as they could be d gested in the
hands of the Department of Justice
for such action as it might deem wise.
The commi ssion has responded to the
call of committees of Congress which
were considering proposed remedial
legislation, and to the call of the De-
partment of Justice in the further
study of the facts transmitted.
..The commission found that start
ing with a practical control of the
meat packing industry. the present
state of affairs made possible unfair
inyasions into other Industries to an
extent that an ultimate control of the
food supply of the nation in a few
hands was possible ana probable. 10
this situation it has directed the at
tention of Congress.
New Cases Coming Up.
1--WE should say to you that in this
examination the commission has
brought out certain facts having to
do with the laws the administration
of which it is particularly charged:
In a number of these matters formal
proceedings have already been in
stituted In others formal proceed
ings are in process of formulation.
These things the commission will
carry forward in due course and in
the orderly prosecution of it's work" !"
In the foregoing paragraph is re-
veaIed the intention of the packers
to go forward with thrty-one cases
entirely different from those COM
promised by the Department OF JUS
tice. Victor Murdock. bull moose
leader in Kansas in 1912; Huston
Thompson of Colorado. former as
sstant attorney general. and Will
liam b. Golfer. for ten years pub
Usher of the Cloverleaf newspa-
pers-the st. Paul News. the Min
neapolis News and the Omaha Daily
News-constitute the three members
of the Federal Trade Commission at
present. The two other vacancies
have not yet been filled, though Col.
Gaskill of New Jersey. a republican,
has been nominated for one of them.
Copyright, 1879