New-York tribune., 1919-01-30
Two More Packers
Add Opposition TO
u. $. Regulation
Condition of Industry Does
Not Warrant Government
Ownership, They Declare
Probe Swift Activities

Probe Swift Activities
WASHINGTON, Jan. 29.-Testimony
of the five leading packers at the hear
ings OF the House Interstate Commerce
Committee on legislation to regulate
the meat industry was concluded to-
day. A statement by Edward A Cud-
ahy, of Cudahy G. Co, was read by his
attorney, Thomas Creigh, and T. T..
Wilson, of Wilson & Co., read a pre-
pared statement and was questioned by
committee members.
Both presidents declared that legs-
lation aimed at the meat industry WAS
unnecessary and that government regu-
lation or ownership was not warranted
or practicable
AS a business man, I dc not believe
in government ownership said Mr..
Cudahy's statement. "Nor do I think
it would be success or as efficient
with respect to the packing industry or
of as great benefit to the public as the
present system. which has grown up as
the result of individual initiative and
experience"
Mr.. Wilson said he favored proper
government supervision along the lines
of the bureau o, markets of tho De
partment Of Agriculture as applied to
stockyards and along the lines of the
bureau of animal industry as applied to
packing houses, but opposed more dras-
tic measures
Effect Would BE Roactionary
"Anything beyond that" he said,
would have a rcactionary effect on the
industry"
Government regulation or ownership
would be justified he said # the In
dustry was being operated inetficieutly
or If either the consumer or producer
was being unjustly treated. He en-
rhatically asserted, however, that
neither was the case
"Ihe efficiency OF the industry was
proven by the way it stood up under
The stress Of war he said. Besides
completely meeting the requirements
OF our Allies and our own army and
navy, the industry has been able to
take care Of the requirements at home
and at no time has any one suffered
from want of our products"
Profit of his company for the last
fiscal year, he said, was 2.C6 per cent
on the sales and would have been less
except for fairly large profits on by
products. He testified that his salary
was $125,00O year and that he and
his family owned 10000 shares Of vii
son d Co. stock
New Bill Would Hurt Public.
Profits of the five big packers on
products controlled by the food admin
istration averaged 1.6 per cent CT the
total sales and Sc on invested capi-
tai during the year ended October 81
last, Mr.. Wilson told the committee.
Discussing the bill advocated By the
Federal Trade commission, Mr.. Cudahy
said if profits we've limited and prices
fixed, as proposed, the industry would
be SC restricted as To prevent It's serv-
ing the public.
Mr.. Cudahy said profits Of his con-
Germ had been reasonable. and, in fact,
lower than those Of most other indus
tries.
Speculative transactions in Swift
stocks we've inquired into during the
cross examination of Louis F. Swift
before the State Agriculture Commit
tee by members Of the committee and
Francis j. Heney.
Senator Norris of Nebraska, read
newspaper account to show there was
a $l40, 100000 gain III market value in
stocks of Swift & Co., Swift Internal
tional and Libby, Mcneil & Libby fvom
November, 1917, to November. 1918
Didn't Expect Advance
We had no idea there was going
to be such an advance when we separ-
ated our three concerns" said Mr..
Swift. "Swift G. Co. didn't profit by
the transaction, but the 25,0O0 stock
holders.
"But while you say Swift g. Co.'S
earnings showed a falling off last
year" replied Senator Norris, "as
matter of fact the three Swift com
panies show an enormous increase in
the opinion of stock buyers
Mr.. Swift said he personally had not
dealt in Swift stocks to affect the
market.
Mr.. Heney's questions developed
that an employc of Swift & Co. en-
gagged in buying and selling Swift
shares for employees who paid fors
them on an installment plan
Don't you recommend to employees
to buy stock" asked Mr.. Heney.
when the price is favorable, cs-
pecially whom we issue new stock
his business in California. He said F
he feared objection from the Federal
Trade Commission if he built stock
yard in San Francisco
Letters were read by Mr., Henry in
which James R. Moon, confidential I
agent of Swift & Co.. proposed a plan
by which the entire earnings of the
Western company for 1915 would be
placed in the depreciation account
81 suppose that was justified" said
Mr.. Swift. He eXpla the building
was 'ramshackie affair." that would
have to be torn down soon.
Wanted to Quit Presidency
Mr. Henoy asked about letter from
Mr.. Swift to J. L. Washburn, manager
Of the Western Meat Company, asking