Harrisburg telegraph. [volume] (Harrisburg, Pa.) 1879-1948, 1919-01-21
ARMOUR THRUSTS
WARNING BEFORE
SENATE PROBERS
Tells Them Monkey Wrench
in Gears of Meat Business"
Will Be Perilous
By associated PrssS

| ~ <1SSoChotSo EFcSJ
Washington, Jan. 21.-J. Ogden
Armour, president of Armour &
Company, told the House Interstate
Z. Commerce committee to-day that
pending legislation to regulate the
meat packing industry was re-
dictionary" and part of it probably
unconstitutional. He warned Con-
gress that "if q monkey wrench Is
thrown into the gears of this busi-
ness" its effects would be felt in
many other lines of industry.
Warns Against Interference
IF the ability OF the packing in
dustry to function properly Is i'm
paired" he asserted, lit will affect
the livestock industry and it in turn
will affect corn prices. Wheat will
then be drawn in. and 80 will bread.
and so will labor, and so will every
thing that has for its basis the
wealth produced by agriculture.
The theories on which pending
legislation is based are not construc-
tive, they are not progressive. They
are reactionary. They would disrupt
the great manufacturing and mar
keting machinery which half q CEN
tury of enterprise has evolved and
the results would be detrimental not
alone to the leading industry of this
nation, but even more so that por-
ton of the public which produces.
and to the entire public which con-
sumes food"
Regarding the possibility of gov
ernment ownership of stockyards
and other adjuncts to the packing
industry, Mr.. Armour said:
Red Tape Hold Progress
ownership by the government
implies red tape and restrictions
which cannot help but add to the
costs Of the service. costs which must
eventually be borne either by the
producer or the consumer. Govern
ment ownership implies, too, the
abolition of the private initiative
and enterprise which has made it
possible to erect an efficient stock
yards almost overnight when occa-
sion justified it
Slow in Deciding
| The government, you know, does
not make up its mind very quickly
on such matters, as is evidenced by
the years old controversies over the
building of post offices or such COM
partively trivial matters as to wheth-
er cities should have underground
mail chutes"
Profits made by Armour & Com
pany, Mr.. Armour declared, "rep-
resent return of less than two cents
on every dollar of sales. The margin
of profit in the packing industry is
the smallest enjoyed by any indus
try of national consequence"
Gross volumes OF sales by his
company in 1918. he said. totaled
1851 100000 compared with S575,-
100000 in 1917, but the net income
was at the rate OF nine per cent on
the average net capital invested. He
added that the 400 per cent. stock
dividend in 1916, whereby the cap
ital stock was raised from 10000
900 to 800. 600 900, was made pos-
| sible by reinvestment during pre-
ceding years of seventy-one per cent
OF the aggregate earnings
Pork Prices Greatly Increased
The high price OF meat, Mr. Arm
our said, was the real reason why
President Wilson ordered the meat
packing Investigation by the Federal
Trade Commission. Within the mast
four years, he said. the price of live
hogs had increased 245 per cent. and
costs OF labor. clerical help and fuel
| had doubled
AS only seventy per cent of a hog
is edible and the remaining thirty
per cent Of hy-products have not in
creased in value as rapidly as the
live animal, he said, 1t could be un-
derstood why bacon to-day costs
three times what 1t did four years
ago. He added that prices of live
cattle and sheep have advanced at
a pace with that of hogs.
Charges by the commission OF col
fusion among the five big packing
firms to control prices were denied
by the witness, who asserted:
Denies Combination
Armour & Company are not nov
and have not been for many years =