The Washington herald., 1919-01-19
PACKERS WOVE
PL0TTER'S web,
| HENEY CLAIMS
hkigue Extended to State
|Legislatwes and Even to
National Congress.
BIC FIVE" IN CONTROL
Mapped Country and Gave
Each Concern Inviolate
Private Territory.

Private Territory.
A web Of packer intrigue leading
from Chicago headquarters to State
legislatures and even to the nation
III Congress- was disclosed to the
Senate Committee on agriculture
yesterday by Francis ]. Heney,
eounsel for the Federal trade COM
mission in its investigation OF the
packing industry.
Money is being constantly spent
by the packers jointly on legisla-
tive matters in the various States.
The expenditures are charged on
their books to educational work. /"
A9r. Heney said:
Urged oleo Law In n. Y.
He told of the passage Of the
oleomargerine bill by the New York
Legislature, when Senator James w.
wadsworth. jr.. was speaker of the
lower house there. The bill set GER
tain standards for the oleo which
cczld be sold in New York State.
Only the oIeo made by the Big
Five packers could meet these re-
ouirements," the witness said.
They used certain kidney fats
which gave the margarine a butter
appearance. The law gave them
virtual monopoly of the margarine
market in the state"
WAS there any evidence to con-
meet the packers with the New York
legislature?" asked Senator France.
OF Maryland.
Packers Liable Under Law.
I'VE found a telegram in the
packers files sent by Henry Veeder,
of counsel for the packers, to Sena-
tor wadsworth. then speaker at AL
bany. urging that the bill be re-
ported by the committee on rules,
and pointing out to the speaker that
there remained only ten days OF the
session in which the measure could
become a law"
Mr.. Heney thought the packers
were liable under the Sherman anti
trust law and its amendments and
under the Clayton law. He again
covered the packer agreement by
which territory was divided among
| the Big Five"
Prices Fixed by Pool
From 1898 to 1909, the country
packers met around a table every
Tuesday afternoon and did business
among themselves. It was the time
Of the 'Veeder pools Henry Weed
er, for the pool. collected fines from
any packer shipping more than his
allotment into any city. This fine
was then turned over to the injured
packer.
The country was a map, and each
packer had his part of IT clearly
outlined. No other packer could in
wade his territory without paying
the penalty.
Then the Veeder pools were
broken. and the National Packing
Company was organized, each Of the
Big Five owning a share, and their
heads acting as directors; and for
ten years they met at the same time
and in the same rooms as during
the Veeder pools, planning the bUsi-
ness Of the National Packing Com
pany."
No Competition on Sales.
"On selling. there's an understand
ing against overstocking any market.
Representative go around once a
month and see what he market has
on hand, and are careful against caus-
ing a glut by over-supply.
The old map hasn't changed very
much on this end of the business,
either, though there is supposed to be
competition on sales"
Relations OF the packers with subsid-
fary companies were taken up by the
witness. who discussed the Mechanical
Manufacturing Company, Swift sub
sidiary.
"Its stock is largely owned by mem
oers of the Swift family. That is the
customary method Of ownership, the
packing companies do not own the
stock themselves. but here is common
ownership between both.
N"The Mechanical Manufacturing Co.
manufactures mechanical devices.
chiefly packing-house machinery. In
1918 when its net sales were $50. 900,
one-third OF this was to Swift & Co,
itself.
Sold Dumping Posts.
In addition, the company makes a
humping post which It sells to rail-
roads. 1t has been making these and
selling them for twenty years, though
more modern posts are on the market.
The packers are big shippers. and the
all ShN1 SSAANAAANN ~ DNg NAASAA OeAAAP-
ing posts.
This company. with a capital stock
of 81. 800. declared a dividend of 70
per cent for the year ending March
81. 1916, and passed $4,000 to surplus
in xs7 rs dividend was 80 per cent,
wftk $rRfso going to surplus. while in
.<ss It ulde $4,000 in profits, or 900
Per .7rt or this s43, I25 was put in
dsefa<n1. s133, 4S7 went to income and
profk .asss and s14s,OOO to surplus"
C~nxressmen Make Denials.
T&S Representatives came before
tie c>n:DIittee in the afternoon to deny
y5xe ssrpIscation in the morningt testi-
4n15Y a. Heney that they had been
fn1ff4n<nssl in blocking the packer
1u~19<iexeien. Both were members of
sHr sodicisry Committee. referred to
~ e letter Heney had read. written
% Ar-poJf by an agent named Mad
den ysrom Washington. 1t said that
5ae, ,sbevs q the Judiciary Committee
500 D. depended on to handle the
Iorlznd rAtter
TIE TIVE Representatives, Igoe of
datsoiFi- nd Caraway, OF Arkansas,
10Th denied any interest in the pack
els- ~. lgoe said and showed by the
recorcs of his committee that II was
on E's mot on that the Borland reso-
=. ~ 49, anally reported out of COM