Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1919-10-16
HOLDS POWER
or BIG FIVE
STILL GROWS
Trade Commission Reiter.
ates Charge Against
Packers-Is Denied.

Washington, Oct Reiteratior
of the claim that the five big pack
ing companies of Chicago bid fair
to dominate the wholesale grocery
trade and already handle more
than two hundred foods unrelated
to the meat packing industry, many
of them directly competitive as
meat substitutes. is made in part
4 of the federal trade commission S
report on the industry, published
today.
THE extent to which the packer
should be permitted to enter unre-
lated food lines teven assuming
| legitimate competitive methods). !"
the report said. 'is a matter which
the public interest alone should
determine.
Two questions, primarily eco
nomic, are involved:
Does this widening of activity
result in additional economies of
production and distribuIion?"
Does it result, and will it con-
tinue TO result to the public in
lower prices and better quality of
product and service?"
"A third question, not here dis
cussed, relates to the ultimate ef-
feet Of such vast and powerful or
ganizations on the political and
social fabric OF American institu-
tions."
Control Many Commodities.
Included in the list of commodi-
ties said to be falling under con-
troll of the ''big five" are poultry
and game, dairy products, lard and
butter substitutes, canned and
dried vegetables and fruits; can
ned, cured and frozen fish; cocoa,
coffee, molasses and cane, corn and
maple syrups In addition, Armour
& Co., one of the five, is said to be
handling extensively soda fountain
preparations and utensils.
The extent of packer control var
ies with the locality and commodi-
ty, "and the dealer whose business
is being absorbed" the report as
serts. Owing to the maze and Sc
crecy Of the packers methods of
conducting much of his business"
it adds. "exact statistics on many
of these commodities are not avail
able for the country as a whole,
which will show just how far the
packers control has reached.
Many companies manufacturing
or handling these commodities are
controlled by packer interests, no
hint of which is disclosed by the
names under which they operate,
and even a thorough-going exam
ination may fail to uncover the
packer connection in every case"
Four of the packers, Swift, Will
son, Armour and Cudahy, the re-
port states, through their subsid-
iaries and not including family
controlled companies. handled in
1918, 45.5 per cent of the estimat-
ed total of shipped dressed poul-
try and 33 per cent of shipped
eggs.
The same four handled 49 per
cent of all factory made cheese in
1918, the report says, and adds:
THAT the big five is in a posi-
ton to control rs to so per cent of
the cheese of the state (Wisconsin)
is generally conceded"
Libby, McNeilI & Libby, a Swift
concern, alone handled 10.4 per
cent of all evaporated and con-
densed milk in 1918, according to
the report.
Profits Are Huge.
The Armour Grain company. a
factor in the cereal and breakfast
food business, reported surplus un-
divided profits for the year 1917 of
S5.426,8 $50, after deducting a rs pe-
cent dividend on capital stock, the
report says, adding:
THE years net earnings amount !
ed to $2,908,912. or 290 per cent of !
the capital stock and 81 per cent |
on the net worth of the company, |
capital, surplus and un-
divided profits as reported at the |
close of the fiscal year 1916"
Production of lard compounds |
and substitutes by the five packers |
during the first six months of 1917 |
was placed at 49.4 per cent of the |
total, and oleomargarine at 81 per |
cent.
Business Growing.
Complete figures to show the |
packer interest in canned goods. |
such as fruits and fish, were not |
the report says, but the |
business of the big five" was !
shown to be large, and growing. |
The Libby company's canned goods |
sales alone showed a 225 per cent |
increase in 1918 over 1915. Libby |
sales of canned salmon increased /
from 4.6 per cent OF the world |
pack in 1915, to 81 per cent in |
1918. the report shows
$50 complete has become the |
control. especially by Libby, Nc |
Neill & Libby. over the pineapple !
supply" the report reads, that |
one of the largest wholesale gro
GERS in the country was unable in !