The Bennington evening banner. (Bennington, Vt.) 19??-1961, 1919-08-07
PROSE ECUT|0N Of
PACKERS WILL BE
STARTED At ONCE
Government Has Determined On
This Step
EVIDENCE SEEMS CLEAR
Attorney-General Palmer Says Laws
Are Broad Enough to Cover
Civil or Criminal Action

Washington, August 6.-Antitrust
suits against the great meat packing
firms we're announced today by At
tdrney-General Palmer as the first
concrete development of the govern
ment's campaign to reduce the high
cost of living.
Armour, Swift, Morris. Wilson and
Cudahy who have been pictured in
the Investigations of the federal
trade commission and before con
gressional committees as great
combination in control of food prod
ucts, are to be hailed again before the
federal courts by special prosecutors.
The evidence in hand, Attorney
General Palmer declared indicated
"a clear violation of the antitrust
laws" Whether the prosecution
would be civil or criminal, the attor-
neNgeneral declined TO state. He
merely recalled that the law provided
| for both.
The history OF all the governments
antitrust prosecutions in 25 years
does not show a single individual ever
serving a Jail sentence for violation
There are evidences that the govern
ment hopes for some in the present
campaign. Mr. Palmer's announce
ment follows:
THE department of Justice has
made a careful review of the evidence
developed by the investigation into
the combination of packers, both by
the federal trade commission and the
hearings before the committees of
Congress. This review has been
made by lawyers specially retained
for the purpose and their report Is
now in hand. | am satisfied that the
evidence adduced indicates clear
violation of the antitrust laws and
prompt action will be taken according
! ly Further proceedings, while under
the Immediate direction OF the depart
ment of Justice, will be in charge of
Isidor J. Kresel of the law firm of
Jerome, Rand e. Kresel OF New York,
who will be given such assistance as
! the case seems to warrant
While he was announcing plans
against the packers, Attorney-Gener-
al Palmer was unleashing his special
agents on countrywide trail of
profiteering and food boarding. These
prosecutions come under the food
control law. All United States attor-
neys were instructed to ferret out
food boards and libel them under fed
eral law
Washington. Aug 6.--The Federal
Trade Commission, in its report to
President Wilson on the packing in
dustry makes these specific charges
concerning the manner in which
the meat combination works now
l. That Swift & Co., Armour 6
Co, Morris & CO., Wilson & Co.. Inc.
and the Cudahy Packing Company
are in an agreement for the division
of livestock purchases throughout
the United States according to GER
tain percentages,
That this national livestock divis-
ion is reinforced by local agreements
among the members of the general
combination operating at each of the
principal markets, as at Denver.
where Armour and Swift divide their
livestock "fifty-fifty"
That these national and local live
stock purchase agreements constil
tute a restraint of interstate com
merce in live animals and in the sale
of meats and other animal products.
sitting competition among the five
companies, substantially controlling
the prices to be paid to livestock pro-
ducers and the prices to be charged
to consumers of meat and other ami
NAL products and giving the members
of the combination unfair and Illegal
advantages over actual and potential
competitors.
2. That the five companies OK
change confidential information
which is not made available to their
competitors and employ jointly paid
agents to secure information which is
used to control and manipulate live
stock markets.
3. That the five companies act col
lusively, through their buyers in the
purchase of live stock their specific
colusiye activities embracing;
qa) "SpMtshipments" purchases,
whereby. through the interchange of
information, the split lots are made
to sell at the same price on different
markets regardless OF how many
packers are involved in marketing
the purchase.
OBJ Part purchase" whereby two
or more packers join in purchasing
the live stock Of one shipper or pro-
ducer, each taking part of a ship
ment at the same price.
(c) Wiring on" whereby a ship
per who forwards his live stock from
one market to another for the pur-
pose of securing better prize is
punished regardless of which packer
he sells to in the second market
(d) Making the daily market,
whereby common live stock buying
policy for all the big packers at the
principle markets substantially con
, trolls the basic prices to be paid
} throughout the United States
, Late buying, where all buyers OF
the big packers stay out of the
: market for one or more hours after
fhn nuanff,r eoY. pnrnnun Of do