Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1919-04-11
BIG FIVE" MAY BE REGULATED
BY COMBINATION OF SMALL
INDEPENDENT CONCERNS.
MORE EFFECTIVE THAN
FEDERAL REGULATION
New Plants Springins Up in Iowa and
Middle West to Accomplish What
Government Has Failed to Do by
Way Of esulation-National Solu-
ton is in Competitive Field.
rBv +. q, Doucherty.1

w ashlnEton, April IL ne SprlhS =
ing up of numerous independent pack
ing companies in Iowa and other mid
die western and stock raising states
has given color to the recent announce
ment by W. 4. Mor-an. of Buffalo.
y. Y, who has been closely connected
, with the packing industry for more
than twenty years. that "a second COM
| bination of packers not in the big five,
which would compete with them and
provide tn public with the benefits of
this competition in lower prices and
better service, is the only solution Of
the packing problem
These who know Mr. Morgan de-
clare that his statement undoubtedly
means that such n combination is in
process Of being formed.
/ Government regulation of the meat
packing business will not, in Mr..
Morcan's opinion. remove the danger
Of ultimate control of food products
! by the five great packers as predicted
! by Francis J. Heney in the recent con-
| gress0nal Investigations. Neither. in
| his opinion, will government control
/ restore anything like. pre-war prices
! or freedom Of distribution.
Mr.. Morgan had charge Of the Pa
/ cifC coast business for many years
I Of one OF the big packers.
The government has not vet reached
! tho depth Of sensible conclusions re-
gardng packers methods" Mr. Nor
! gan said. Their rapidly growing
strength is not now a matter of special
! privilege. tho their growth vas doubt
! less aided hy rebates and preferential
shipping. Today, however. they are
so large and prosperous their legiti-
| mate resources give them the desired
advantage over the small packer.
1T Is doubtful whether government
regulation will be of the slightest use
in curling what Mr.. Heney recently
| said must eventuate in two. perhaps
! FIVE years. that is. their control of the
| food supplies of the nation.
Certainly the government can not
and will not interfere with legitimate
| buying. selling and distribution so long
| as there IS no activity. other than fair
| competition, against the small dealer.
The big packers are able to oper-
| ate so almost entirely TO the exclusion
! of the small competitor solely by rea
| son of superior organization. They
have gone into every end Of the sup
| ply business. butter, eggs. canned fruit
oleomargarine, soap. cheese and count
less other commodities. The small
dealer. by reason of his restrictions
is confined to dealing in beef, mutton.
pork and -some other single line and
thereby courts the greatest disad-
vantage in distribution.
Efficiency in Organization.
For example let US take Swift &
Co. They can fill Il car with their OWL
products, destined. let Us say. for
Jamestown " Y comparatively
small city. They fill that with beef
mutton. pork. poultry. eggs. cheese.
soap, lard, canned vegetables. canned
fruits, etc, all of their own production
| From Chicago to jamestown. by this
special thru car. is only TWO days. II
is unloaded into a Swift cooler in
| Jamestown IN from one TO ten hours
| There Is no trucking or other excess
II has been done at the least expense
Now what happens to the small
packer who ships from Chicago? His
salesman has sold a part car Of beef
! and possibly other supplies to James
town merchants There may be nine
different comm oddities. but because he
has no cooler in Jamestown. he ships
in smaller quantities than his big com
pettor. Therefore. il must go by loca'
freight. requiring four or i've days IN
transit and at much higher rate
There is poor rfgeratiOn-sometime
none II is handled at its destination
by four or five truckers. Thus the
part-car shipment is made to cost the
maximum to the consumer. The big
shipper plainly has the advantage.
"No degree Of government contro
can regulate this condition, simply be-
cause one system is better than ths
! other, and it's use is to the advantage
| food in the hands Of five concerns
| however, is a positive menace to the
! nation. something obviously must be
done
There is solution-a satisfactory
one-t0 which am in hope the gov
eminent will give it's very serious at
tention. Obviously we have a grea,
combination to deal w!th-somc old
fashioned people would doubtless cal
it trust. The way TO fight il is witt
another combination equally strong
Such an organization in fact exists
today except that it lacks cohesion. Ir
every center Of population thruout the
United States there are packing
houses, canneries, coolers. factories
soap manufacturers and other con
Germs necessary to supply the wants
Of the people.
| The most superficial consideration
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