The sun., 1919-08-26
PACKERS GIVE COSTS
IN DENYING CHARGES
Swift's Representative Tells
Senate Committee Beef
Sold at a Loss.
ALL BOOKS OPEN, HE SAYS
1918 Profits of Big Five
$51,600,000 Net, Not $178,-
100000, He Asserts.

WASHINGTON, Aug. 25-Federal Trade
Commission charges against the hvo
leading packers on which the Kenyon
and Kendrick bills proposing license
regulation of the industry are based.
were denied to-day before the Senate
Agriculture Committee in behalf OF
Swift & Co. l.. d. II. Weld. manager
or the department of business researcN
for the Swift company, was the only
witness actually on the stand, but his
statements were supplemented occas
ionally by Henry Veeder as general
counsel for tho company, and by John
Chaplin, its general auditor.
Statistical analysis Of Swift & Co.'S
| beef operations presented by Mr.. Weld
liked the cost price OF fresh beef to the
| company in 1914 at $7.06 hundred
weight, the selling price at $1,000. In
1918 the cost price had jumped 5S.1 per
cent. or to s10.s1, and the selling price
had increased AZ per cent, or to $17.77.
During the four weeks ended August Is,
live stock, Mr.. Yields charts showed,
cost Swifts s102.S6 o. head, and were
slaughtered and shipped at an expense
| Of $12.S2 a head The beef In each ami
NAL brought an average of $S5.11, and
hides and byproducts 1916. The profit
| from this was 2S cents a hundredweight
Deny ConcealinE PROFITS.
Mr.. Weld denied that any profits not
shown were concealed by the byproduct
distribution. and when committee MEM
bers pressed the point, Mr.. Veeder de-
| clared that the books of the company
| and all its subsidiaries were open to its
| examination for verihcation.
! Denial also was made by Weld that
| combined profits of the packers during
| 1918. under Food Administration con-
troll. were s17s.O0o, 900. as stated by
| Federal Trade Commissioner Colver.
THE facts" said Mr.. Weld ARE that
In 1918 the five companies earned $685.
$4,000, and that after Federal taxes
were deducted they earned s51, 500, 900
| net. Under the Food Commission regu-
| lation the profits were much lower than
| they were in 1917. In 1915 the packers
profits were equivalent to 1927 per cent.
on capital and surplus; in 1917 they
| were 1928 per cent, and in 1913 1912
| per cent"
Beef sales during Ap1s had been large
! ly at a loss. he said. because of the price
fixed by the Food Administration on
army and allied purchases.
You were permitted to make more
under the regulations OF the Food Ad-
| ministration than you did," Chairman
| Gronna said. why didn't you do SOP
"Other conditions did not allow It,"
| Mr.. Weld responded.
Attacking Commissioner Colver's as
sertion that the percentage of live stock
purchases on the principal markets. re-
| naming fairly constant In Its proper
| ton among the five. indicated Il monopoly
control. Mr.. Weld fatty asserted that It
| was instead an index to brisk competi-
ton.
| The institute of American meat
! packers. Mr.. Weld said. had been or
ganized ito defend the industry and
was supported by an assessment OF one
half cent a head on cattle killed by
members.
Senators Deny Interference.
At one point he said that Senator
Capper (Kan.) and Senator Kendrick
| (Wyo.) had induced the Agricultural
Department to change publicity state
ments concerning live stock prices In
such way as to be unfair to the
packers. When the two committee men,
bers entered denials he explained that
his statement had been based on a
speech made in the House and added
that he accepted the denials "as a cor
rect Interpretation, OF the fact"
At the first night session OF the com
mittee Senator McNary (Oregon) moved
to reject the Moses bill. which proposes
under an amendment to pending packer
legislation. TO license all interstate COM
merce business concerns. The matter
however, failed OF consideration because
| Of the lack OF a quorum.
Senator Moses New Hampshire) de-
clared that he did not believe in the III
censing system. but said his bill was
the logical conclusion of the other legis-
iation." During an acrimonious cross
examination, Senator Kenyon Iowa)
asked him II he thought the monopoly
of foodstuffs, as alleged in the Federal
Trade Commissions report, a JOKE.
Senator Moses said he did not. Senator
Kenyon intimated that the bill had been
made "as devilish as possible to torpedo
| naclrer LEGISLATION"