The Chattanooga news. [volume] (Chattanooga, Tenn.) 1891-1939, 1919-07-11

houses borrow money. in companies
supplying machinery, Ice. salt, mate
rails, boxes. etc, 10 themselves and
their competitors: 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, cleo, fertilizer material,
and other crude animal by-products;
purchase from other packers these
crude by-products, and themselves
carry the manufacture thereof TO a
further stage than most of their COM
petitors.
"They are important factors in the
leather industry, In oleomargartne
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 a network of branch houses. has
enabled them to extend their activi-
ties on a large scale into poultry,
eggs, cheese, butter, rice, breakfast
foods, canned vegetables, soda foun-
tan supplies, and other lines.
Individuals of the Armour family
are owners of grain and elevator COM
panies and j. Ogden Armour is n
prominent factor in the American In
ternational corporation, with Its ship
ping and ship building interests, its
import and export companies in va
rious lines, Its interest in a company
organized to develop cattle raising,
meat packing, quebrache extract and
allied businesses in Paraguay, Its
control of a.large tea importing COM
pany and a sugar machinery corpora
4tv.N nNA L.. n
United Fruit company.
Reached Outside OF States.
Some of Swift N Co.'s subsidia-
ries are growing tropical fruits in
Hawaii; a subsidiary OF Wilson a.
Co., Inc, has reached into the salmon
fisheries of Alaska, and a Morris con-
Germ cans shrimp taken in the waters
of the Gulf o fMexico."
The big five, the report said, have
control of or interest in public utility
corporations in Sioux City, Kansas
City, South st. Paul, Portland. Ore,
South San Francisco. South ST.
Joseph, Mo-; Hill City, Mimi; Fort
Worth, Texas, and Chicago.
AS to financial power, the report In
1.-THE packer has drawn to a marked
degree upon the banks of the country
for liquid funds. He could not oper-
ate on the scale he does without the
very large loans furnished by the
banks. To assure himself loans am
pie to his purpose. the big packer has
secured utilization through stock own
ership, representation on directorates,
and in other ways, with numerous
banks and trust companies"
After reviewing the interest Of the
packers in the leather, fertilizer, cot
tonseed oil, grain and breakfact food
industries. the report said:
1.-THE reason why the packers are
seeking control of the substitutes for
meat-the foods that compete with
meats-are obvious. II the prices of
substitutes for meats are once under
packer control, the consumer will
have little to gain ~ turning to them
for relief from excessive meat prices"
Half of Poultry, Egg Trade.
Judging conservatively by trade
estimates. the big FIVE handle at least
half of the poultry, eggs and cheese In
the main channels Of interstate com
merce. Most estimates place the to-
tai production in dressed poultry and
eggs controlled by the packers at a
higher percentage.
Recently the big packers began
dealing in various staple groceries and
vegetables, such as rice. potatoes,
beans and coffee, and increased theil
sales at such a rate that in certain
lines they have become factors OF
great moment"
Referring to the packers activities
in South America, the report said tina,
from establishment of a single plant
in Argentina in 1907 by Swift & Co..
the American packers, Swift, Armour.
Morris and Wilson, had developed by
1917 until for that year they exported
574 per cent. of all exports of frozen
and chilled beef quarters from Ar
gentina and Uruguay.