The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1919-07-12
Federsl Trade Commission
Report to Presi d e n t
Warns That Action Must
Be Taken At Once.
EVEN DOMINATE
FRUIT SUPPLIES
big Five" Hold Minority
Interest in United Fruit
Co., Tea Plantations and
Salmon Industry.

Washington, July 11.-An approach
ing packer domination Of all import
ant foods in the United States and an
international control Of meat products
with foreign companies seems a GER
tainty unless fundamental action f.
taken to prevent it, the federal trade
commission declared today 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
position they have already reached"
said the report, must lead to the con-
clusion that they threaten the freedom
of the market of the country's food
industries and of the by-product in
dustries linked Herewith. The meat
packer control of other foods will not
require long IN developing
Declaring the history of the pack
ers' growth is interviewer with illegal
combinations, rebates and with undis-
closed control of corporations" the re-
port urged the importance of full pub
licity of corporate ownership for all
industries.
Alleging that the big five" packers
Swift & Co. Armour & Co.. Wilson
q Co., Morris e. Co, and the Cudahy
company-jointly or separately weld
ecntroilsng interest In 574 companies.
minority interest In s5 others and un-
determined interest in 93-a total of
762 companies-and that they pro-
duce or deal in some 775 commodities,
largely food products, the report gives
this picture of growing packer invas-
ion into related and unrelated indus
tries.
'In addition to meat foods. they pro-
duce or deal in such divers commodi-
ties fresh tomatoes and banjo
strings, leather and cotton seed oil.
breakfast foods. vim fiz. curled hair.
pepsin and washing powders.
They have interests large enough
to be a dominating influence in most
Of the services connected with the
production and distribution of animal
foods and their by-products and are
reaching out for control. not only of
of animal food, but of sub
stitutes for other lines into which the
OF their business has led
them. They are factors in cattle loan
making the necessary loans
to growers and feeders of livestock;
are interested in railways and private
ear lines transporting livestock and
animal products; in
most of the important stock yards |
public market for the |
bulk of food animals; and in livestock
trade papers on which growers and
feeders rely for market news.
They are interested in banks from |
which their competitor packing houses |
borrow money; in companies supply
ng machinery. ice, salt, materials. |
boxes. etc. to themselves and their |
they are principal dial |
,rs on the provision exchanges where |
'uture prices in standard cured ami |
nal products are determined; they or |
heir subsidiary companies deal in |
lides. oleo. fertilizer material, and |
,ther crude animal by products: pur-
,hase from other packers these crude |
W products. and themselves carry the |
thereof to a further stage |
han most OF their competitors.
They are important factors in the
Gather industry, in oleomargarine and
ard substitutes, in cotton seed oil, in
ertilizer in soap, in glue, etc.
Individuals of the Armour family
re owners of grain and elevator com
,anies and J. Ogden Armour is
rominent factor in the American In
irrational Corporation with it's ship
ing and shipbuilding interests, its
IMPORT and export companies in va
ious lines, its interest in a company
rganized to develop cattle raising,
neat packing, quebrache extract and
llied businesses in Paraguay, its con-
roI OF a large tea importing company,
nd a sugar machinery corporation.
nd it's minority stock in the United
'ruit Company.
Some of Swift & Companys subsi-
aries are growing tropical fruits in
laval; a subsidiary of Wilson & Co.
nc. has reached into the salmon
sheries of Alaska and a Morris con-
arn cans shrimp taken in the waters
{ the Gulf of Mexico.
The big five" the report said. have
ontrol of or interest in public utility
in Sioux City, Kansas
ity, South St. Paul. Portland, Ore,
outh San Francisco, st. Joseph, Mo.
Ill City, Mimi. Fort Worth, Tex.
nd Chicago.
After reviewing the interest of the
ackers in the leather. fertilizer. cot