The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1919-07-11
PACKERSHOLD
VAST POWER,
TRADE BOARD
REPORT SAYS


soon be dominated by the "Big Five"
Chicago meat packers unless funda-
mental action is taken to prevent 1t,
is the conclusion Of the Federal
Trade Commission in a report to the
President on its investigation Of the
meat industry, made public today.
The report, which is part one OF
series, treats of the "extent and
growth of power Of the five packers
In meat and other industries"
"A fair consideration of the course
the five packers have followed, and
the position they have already
reached, must lead to the conclusion
that they threaten the freedom of
the market of the country's food in
dustries, and of the by-product in
dustries linked herewith" says the
report. 'The meat packer control
Of other foods will not require long
in developing" it adds.
Urge Full Publicity.
packers growth is interviewer with
illegal combinations, rebates and with
undisclosed control of corporations"
the commission report also urged the
importance Of full publicity of cor
porate ownership for all industries.
LAS to devices for securing such
control, there does not exist adequate
law" IL is stated. in its absence
unfair competition may run its
course to the goal of monopoly, and
accomplish the ruin Of competitors
without the secret ownership being
suspected and consequently without
complaint 10 the commission or in
Vestigation Of facts. The competitor
is in jeopardy so long as he has not
the knowledge of true ownership, and
the public is entitled to such knowl-
edge"
Pointing out that the big Five"
packers, Jointly, or separately. WELD
controlling interest in 574 companies,
minority interest in 95 others, and
undetermined interest in 93-a total
Of 762 companies-and that they pro-
duce or deal in some 715 commodi-
ties, largely food products, the report
gives this picture Of growing packer
invasion into related and unrelated
industries:
'In addition to meat foods they
produce or deal in such divers COM
moditieS as fresh tomatoes and banjo
strings, leather and, cotton-seed oil,
breakfast foods, curled hair. peDsin
and washing powders. Their branch
houses are not only stations for the
distribution OF meat and poultry, but
take on the character Of wholesale
grocery stores, dealers in various
kind OF products and jobbers to
special hines Of trade"
The report states that the Big
Five are Interested in banks from
which their competitor packing houses
borrow money, as well as in companies
supplying machinery and supplies to
themselves and their competitors.
They are principal dealers on the pro-
vision exchanges, where future prices
IN standard cured animal products are
determined, and they are also impor-
tsnt factors in the leather industry,
in oleomargRrine and lard substitutes,
in fertilizer. soap, glue, etc.
Armour Family An Example.
Individuals Of the Armour family
are owners OF grain and elevator COM
panies," continues the report. and J.
ogden Armour is also a prominent
factor in the American International
shipbuiIding interests, its import and
export companies in various lines. its
interest in q company organized to
develop cattle raising, meat packing
and allied industries in Paraguay; its
control OF a large tea importing com
pany and a sugar machinery corpora
ton, and its minority stock in the
United Fruit Company. Some Of Swift
& Co.'S subsidiaries are growing trOpI-
cal fruits in Hawaii: a subsidiary or
Wilson & Co. has reached into the
salmon fisheries in Alaska and d Nor
ris concern cans shrimp taken in the
Gulf OF Mexico. In England. France
Italy. Holland and other European
countries large meat distributing
companies have been organized by the
packers to sell the meats from their
plants in the United States. Argentina,
Uruguay, Paraguay, Brazil, and
Australia"
Cover Wide Territory.
The big Five" the report shows,
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, No, Hill City, Mimi, Fort
Worth and Chicago. Messrs. Armour,
Swift, Morris and Wilson are also di-
rectors in banks affiliated closely with
those strong sources OF credit in the
United States, il is set forth.
Being thus allied with the power
full interests at the sources OF credit.
the packers power is great, not only
for financing their own national and
international operations, but for az
fecting, for good or for i'll. the credit
of cattle producers and OF competi-