The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-08-22
GROCERY MONOPOLY
BY PACKERS FEARED
big Five Already Control
Fourth of Business, Says
Wholesaler.

WAsIrSGToN, Aug determination
their methods and alleged control OF the
preparation and supply OF foodstuHs,
we're mingled in approximately equal
proportions before the Senate Agricul-
tural Committee to-day. as witnesses
discussed the Kenyon bill, which pro-
POSES to license the concerns and to de-
prive them of refrigera eoF car and st5c X
yard facilities.
Henry W. Lynch. representing stoek
ra!sers and their association in Calf
fornia and Arizona. led the defence,
while Louis H. Haney OF Jacksonville.
ria, appearing for the Southern Whole
sale Grocers Association. made a direct
and unqualified attack on the packers
and all their activities.
The packers growth and strength. Ar
Haney asserted, was due not TO their
efficiency. but to their financial power
and their control Of refrigerator car SER
vice, which gives 6iem privileges OF a
common carrier without common
carriers responsibility" They now have
rs per cent. Of the wholesale grocers'
business in tho United States he said,
and were tending tsward Monopoly.
TIC Wholesale S-Scs-=' .ats-s:: y the
situation, he said, parSlleled chat Of the
Pubgc, because the temporary policy q
the packers in underseJnng jobbsrs CT
food coGsnoditlss would be abandoned
whenever they attained practical lno-
uopoly.
Mr.. Lynch simply said that the pack
ing industry represents the selling end
n ha ri
you demDrali7e or hamper thAt-as this
bill does-you hurt us."
r. A Eastwood Of Norfolk. Va, a
wholesale meat dealer. assured the COM
mittee that he had always found the
packers fair and square in their deal
ings"
We owe our success and prosperity
in business" he said ito Following az
closely as possible the packers meth
I DDS
Mr.. Haney dealt at considerable
length with the refrigerator psddler ears
| which he classed as "storehouses on
wheels. rendering an exclusive service at
prices cheaper than railroad service can
De rendered others and more speed"
When Senator NoSAry OF Oregon
! asked for a method of giving equal ac-
cess 70 the distribution facilities, Mr..
Hauey said It could be done easily.
The packers ought u be required ,e
sell their cars to a corporation organized
as a common carrier" he said. taking
bonds in exchange. Then the rates
| could be made sufficient on their use TO
render a prodt and the company could
operate them as efficiently 'as the pack
ers"
In the handling Of foodstuffs." he said
the packers acquire ownership Of fac
, tories and can forego the wholesaler
profit II they wish in order to under
sell"
Then they deal only in those grocery
lines IN which the most profit is made, "
he added. ''Thsy won't handle salt,
| sugar or -four. They make immense pur-
| chases OF a certain product in a terri
tory where It is plentiful and sell ii in
| territory where the prices are higher.
They are only scalpers in many of these
products. specializing, getting in and out
when the market suits them"
Senator Wadsworth IN. " wanted to
know about the vholesalerS 'propa-
gAnda' IN favor OF the BIZ, and Mr..
Hrusy, who described himself as an
economist and publicity manager" said
the wholesalers had tried 10 counteract
the packers campaign against IL.
The fact OF the matter Is. you want
this bill to give your people a business
advantage over the packers who are SOW
competitors, isn't IT," Senator France,
| Maryland, demanded.
mo, we feel there ls a great mo-
nopoly in foodstufrs being established
Haney declared I'VE are the frst to
! feel the inroads"
| He said that wholesalers would OBJ
! ject TO the licensing requirements I'M
posed upon the packers, but Senator
| Wadsworth interrupted 10 say II
wasn't called for
| Senator Kenyon, with some asperity
announced that Wholesale grocers have
nothing to do with this BILL" when SEN
stnr Wadsworth pursued the PORT a
/ little further, with especial reference "a
| circular letters sent out by Haneys Or
sanization declaring that II would be
EASY 10 get the licensing sectious OF
/ the Kenyon bill modieed so that they
would not apply to wholesale grocers
THE packers business Is too big to be
healthy" Mr. Haney said nnally. In de.
Tending tAs- groeers' stand.