The Barre daily times. (Barre, Vt.) 1897-1959, 1919-07-11
Domination Of All Foods in
the United States Is
Threatened
FUNDAMENTAL ACTION
VERY MUCH NEEDED
Federal Trade Commission
). Makes It's Report to
Pres. Wilson

washington, ID. u, july ll.-An ap- |
preaching packer domination of all i'm
portant foods in the United States and
an international control of meat prod
ucts with foreign companies seems GER
tainty unless fundamental action is TAX
en- to prevent it, the federal trade com
mission declared to-day in part one of
its report to President Wilson on the
extent and growth of power of the five
packers in meat and other industries"
"a fair consideration Of the course the
five packers have followed and the po.
sition they have already reached" said
the report, must lead to the conclusion
that they threaten the freedom of the
market of the countries industries and
of the by product industries linked there
with. The meat packer control of other
foods win not require long in develop
ing"
Declaring 'the history of the packers
growth is interviewer with illegal com
binations, rebates and with undsclosed
control of corporations" the report urged
the Importance of full publicity of cor
porate ownership for all industries.
"As to devices for securing control,
there does not exist adequate law" the
report said "In its absence unfair com
petition may run its course to the goal
of monopoly and accomplish the ruin of
competitors without the secret owner
ship being suspected and consequently
without complaint TO the commission or
investigation Of facts. The competitor is
in jeopardy SO long as he has. not the
knowledge of true ownership, and the
public is entitled to such knowledge"
Five Packers Named.
Alleging that the big five" packers
Swift 4 Company Armour Company,
Wilson & Company, Morris & Company
and the Cudahy company-iointly or
separately WELD controlling interest in
| 574 companies, minority interest in %
Others and undetermined interest in o.
total of 1862 companies that they
produce or deal in some 775 commodi-
! ties, largely food products, the report
gives this picture of growing packer in
vasion into related and unrelated indus
| tries.
I'm addition to meat foods, they pro
duce or deal in such diverse commodi
| ties as fresh tomatoes, and banjo strings,
| leather and cotton seed oil, breakfast
| foods, vim fiz, curled hair, pepsin and
| washing powder Their branch houses
are not only stations for the distribu-
| tion of meat and poultry but take on the
character of wholesale grocery stores,
dealers in various kinds of produce and
| jobbers to special lines of trade
How Their Tentacles Spread.
"They have interests large enough TO
be dominating influence in most of the
services connected with the production
and distribution of animal foods and
| their byproducts, and are reaching out
| for control, not only of substitutes of
animal food but of substitutes for other
lines into which the integration into
their practices have led them. They
control call loan companies making the
necessary loans to growers and feeders
of livestock; are interested in railways
and private car lines, transporting live
stock and manufactured animal prod
ucts, in most Of the important stock
yards companies the public market for
the bulk of food animals, in livestock
| trade papers on which growers and feed
! eEs rely LOT HldIkti News.
There are interested in banks from
which their competitor packing houses
borrow money; in companies supplying
machinery, ice, salt, materials, boxes,
etc, to themselves and their competi
tors; they are principal dealers on the
| provision exchanges where future prices
in standard cured animal products are
determined; they or their subsidiary
companies deal in hides, oleo, fertilizer
material and other crude animal by
products; purchase from other packers
these crude by-produets, and themselves
carry the manufacture thereof to fur
ther stage than most of their competi
tors.
"They are important factors in the
leather industry, in oleomargarine and
lard substitutes, in cottonseed oil, in
fertilizer, in soap, in glue, etc.
"Their vast distributing system, with
the advantages arising from the control
of private cars, cold storage and net
work of branch houses, has enabled them
to extend their activities on large scale
into poultry, eggs, cheese, butter, rice,
breakfast foods, canned vegetables, soda
fountain supplies and other lines.
Individuals Of the Armour family are
owners of grain and elevator companies,
and j. Ogden Armour is prominent
factor in the American International cor
poration, with its shipping and ship
building interests, its import and export
companies and various lines, its interest
in company organized to develop cattle
raising, meat packing, Quebrache extract
and allied businesses in Paraguay, its
control of a large tea importing company
and sugar machinery corporation, and
its minority stock in the United Fruit
company
"Some of Swift & Company's subsid-
iaries are growing tropical fruits in Ha
waii, subsidiary of Wilson & Com
pany Incorporated, has reached in the
salmon fisheries of Alaska and a Morris
concern cans shrimp taken in the waters
of the Gulf of Mexico.
in England, France, Italy, Holland
and other European countries large dis
tributing companies have been organized
by the packers to sell the meats from
their plants in the United States, Ar
gentina, Uruguay, Paraguay, Brazil and
Australia"
Grip on Money Market.
As to financial power, the report said
in part:
"The packer has drawn to marked
degree upon the banks of the country for
liquid funds. TO assure himself loans
Continued on eighth page.l