The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-02-04
SAYS HOUSTON
AIDED PACKERS
IN PRICE FIXING
National Live Stock Officer
Also Accuses Food Admin
istration of Being Screen
BIG PROFITS ALLEGED
Lasater Charges "Illegal
Acts" Against the Public
Were Committed.
FARM INQUIRY DELAYED
Swift Employee Denies Posi-
bility of Combination at
Congress Hearing.
FARM INQUIRY DELAYED

WASHINGTON, Feb. 3.--The Food Ad
ministration and the Department OF
Agriculture aided the five big packing
firms in obtaining a monopolistic con-
trol of the meat packing industry, I'd
ward c. Lasater of the National Live
Stock Associations executive commit
tee and a former employee of the Food
Administration testified to-day before
the House Interstate Commerce Com
mittee.
While Mr.. Lasater was making the
charge and asserting that he had re-
signed from the Food Administration
because he realized "its practices were
harmful to the common welfare" l.. ID.
II. Weld. manager OF Swift & Co.'S re-
search department. told the Senate Ag-
riculture Committee that a combina-
ton of the big packers to control the
meat industry was impossible because
of the large number of independent
concerns.
Mr.. Lasater asserted before the House
committee that during the last eighteen
months the Food Administration had
served as n screen" behind which the
packers operated illegally against the
public's interests. When asked what the
Illegal acts of the packers had been he
said he would answer in detail later.
The Department Of Agriculture aided
the packers. Mr.. Lasater charged. by de-
laying investigation of the meat growers
ty the Federal Trade Commission at the
tune the packers themselves were being
Investigated.
Houston stopped Farm Inquiry.
Mr.. I.asater submitted a letter from
W. J. Spillman, former chief Of the
bureau of farm management of the De
partment Of Agriculture. IN which Mr.
Spillman said Secretary Houston re-
tarded investigation of the producers by
refusing to authorize appointment Of ft-
teen investigators.
He added that the Secretary had told
him TO discontinue the Investigation en-
tlrely saying the farmer was not en-
titled to any information on the subject
and that the only use ever made of
such information was for agitators like
out and stir up the farmers with"
The next day. Mr.. SpiIlman wrote, he
received letter from Secretary Hous-
ton notifying him that every project con-
nected with the investigation was dis
continued. Mr.. Spillman said the Sec
retary authorized the appointment OF tho
investigators only when the National
Livestock Association became insistent
in its demands.
Mr.. Iasater told the committee that
the statement Of the packers that they
drd not have the power 10 fix prices OF
livestock even II they desired to do So"
was not founded on facts. and that the
packers knew II.
SWIFT Earnings Increase 176 p. C.
In his testimony before the Senate
committee Mr.. Weld said Swift & Co.'S
earnings for the period OF the war had
increased l76 per cent, compared with
the three years ending with 1914. but
argued that this was not as great an in
crease as some other industries had en-
loved and that competition prevented
profits from being higher
But doesn't that show that all Of Won
we're making profits during the war that
were too high" asked Senator Norris
tNeh), who declared that any surplus
accumulated above a reasonable dividend
was taken from the consumers pocket"
Over the protest OF Senator Page
(Vt.), who declared It was "nothing less
than piece of dishonorable practice"
The committee admitted to the record to-
day pencilled notations signed ~. F. s"
and dealing with the testimony last
week Of w f. PrIeby OF the Food Ad-
ministration's poultry division and for
merly president Of Prieby & Co.. said to
be a subsidiary poultry concern Of Swift
Co.
The notatious were submitted by
Francis j. Heney. who explained to the
committee that by mistake private
copy Of the Federal Trade Commissions s
report on the packers investigation,
which had been used for reference by
Louis f. Swift in his testimony last
week, had been placed in his brief case.
Calls Disclosures "Rotten."
The following had been v-itten on a
card appended to one OF ths pages of
the report:
Prieby matter shows up rotten.
am ashamed It got this way and sorry
we cannot change over to Swift & Co
or sell out. Think we must. Return
book l.. +. $.
on the card was printed the name of
L. A. Carton. treasurer OF Swift & Co.
and the following location written in
ink was signed l.. A. C.:
1t is embarrassing to whole poultry
business. Whether II would be less
so by changing name to Swift & Co
is matter ! have mentioned to YOU
and others without conclusion.
]. NJ. Chaplain. Auditor Of Swift &
Co. was another witness to-day After
he had testified that the profit on head
OF beef was 81 Mr.. Heney read letter
which he said showed thar Libby, Nc
Neil & Libby. Swift subsidiary, made
an average profit of s6l+ head on
beef in 1915. The letter also said the
Libby concern lost money on pineapples
and California fruit.
That's why such business IL uncco-
nomical." said Mr.. Heney. The rest
of the business must pay for the losses
Of side lines