The Chattanooga news. [volume] (Chattanooga, Tenn.) 1891-1939, 1919-08-07
PACKER SUITS TO
GRAND JURORS
Attorney-General to Give
Matter to Grand Jury in
Three Weeks.

Washington, Aug. 7.-The nrst ac-
tual step in the governments prose-
cution of the big five" packers prob
ably will be taken before the federal
grand jury when it convenes three
weeks hence, Charles +. Cline, United
States district attorney at Chicago,
stated here today.
While Isadore Kresel, Of the New
York firm of Jerome, Rand & Kresel.
will direct the work of drawing up
the charges against the packers.
Cline will present them in Chicago.
Mr.. Cline today expressed the be-
lief that the opening of the proseou-
tion would be based on charges of
conspiracy and that these might lead
up to a series of others, involving
violations of both the Sherman anti
trust act and of the food control act.
Cline said that on his return to
Chicago practically all of his time,
together with that of his twenty as
sistant attorneys, would be devoted
to preparing for the case. II neces-
sary. he stated he would secure ad-
dtional assistants.
Wilson Backs Suits.
The governments new antitrust
suits against the five great meat
packing concerns Is being brought by
direction of President Wilson as one
of the first results of his study of
the cost of living problem. -
1t became known today that the
president came to his decision after
a careful study Of the Investigations
of the federal trade commission and
the hearings before congressional
committees considering bills to con-
troll the packing industry.
Conferences with members Of the
federal commission and Atty. y.-Gen.
Palmer followed. The announcement
by the attorney general that the
suits would be brought was the i'm
mediate result. No final decision has
been reached as to whether the suits
will be brought in the civil or Grim
inal courts or In both.
One feature of the governments
line of action has been indicated as
certain. 1t seems assured the gov
eminent will charge the packers with
Icing an illegal trust on the ground
that they control the buying OF cat
tie. Whether there will be the dou-
BILE charge that they control both
buying of cattle and selling of
finished meat products has not been
so clearly defined, but the govern
ment has evidence in hand which
the department of justice contends
VIII prove that the packers control
tie prices paid TO producers.
Division Of Purchase.
Twelve principal live stock markets,
the governments evidence is said to
indicate. are covered by the packers
division 'of purchase arrangement.
While Hltnptinne ahnwn IN, an
individual markets indicating compe-
tition in buying, the government ex-
perts have reported that a consdera-
tion of the dealings for a year shows
each of the five big packers has re-
ceived the percentage OF supply, which
the federal trade commission charges
them with agreeing upon.
On demonstration of these charges
as a fact. Atty Gen. Palmer is expected
to rely in the main to prove the con-
tention that the big FIVE" maintain
an agreement which dominates the
purchase of cattle. While the attor-
ney-general is preparing his case. spe-
cial agents OF the department of JUS
tice will continue their hunt for prof.
partment will avail itself of all the
evidence gathered in previous inves-
legations of the packing industry and
also probably viii have representatives
at the hearings to he held soon on
Senator Kenyons bill to regulate the
industry.
There was today no further indica-
ton OF what President Wilson would
recommend to congress when he ad-
dresses it in Joint session tomorrow
afternoon.
Announcement.
Mr. Palmer's announcement follows:
"Thc department Of justice has made
n careful review of the evidence devel-
oped by the investigation into the COM
bination of packers, both by the federal
trade commission and the hearings be-
fore the committees Of congress, This
review has been made by lawyers
specially retaiped for the purpose and
their report is now in hand. I am
that the evidence adduced in
dicates clear violation of the anti
trust laws and prompt action will he
taken accordingly. Further proceedings. |
while under the immediate direction
0f the department of justice will he
in charge Of Isidor ]. Krcsel, Of the
law firm Of Jerome Rand & Kresc of
New York, who will be given such as
5istancc as the case seems to warrant"
White he was announcing prosecu-
ions of the packers, Atty. Cen. Palmer |
was unleashlng his special agents on
I countrywide trail Of profteering and |
-ood boarding. These prosecutions !
,ome under the food control law.
All United States attorneys were in I
'tructed to ferret out food hoarders and |
ihel them undor federal law
This IS the most important business !
,efore the country today" announced |
he attorney-general. and I propose TO !
ave the law enforcement machhery |
II the government sidetrack everything |
% this Job /