Evening star. [volume] (Washington, D.C.) 1854-1972, 1919-01-21


sumes food"
Possibility of government ownership
of stockyards and other adjuncts to the
packing industry drew from Mr.. Armour
reference to 'Ted tape" and contro-
versies over trivial matters" such as
underground mail chutes.
What U. S. Ownership Implies.
Ownership by the government" he
which cannot help but add to the costs
of the service, costs which must
eventually be borne either by the pro-
ducer or the consumer.
Government ownership implies. too.
the abolition of the private initiative
and enterprise which has made it
possible to erect an efficient stock
yards almost over night when occa-
sion justified it. The government, you
know, does not make up its mind very
quickly on such matters aS%sis--.eNi-s
denced by the years.old CONTROVERSIES
such comparatively trivial matters
as to whether or not cities should
have underground mail chutes.
Willing to Sell Out.
'It is only because I fear less eff
cient operation and the consequent
serious results that / make these
comments. but I am entirely willing
and ready to at once relinquish my
holdings upon being allowed just COM
pensation therefor
Profits made by Armour & Co, Mr.
Armour declared. were negligible in
SO far as either the producer or the
consumer was concerned.
"On our total volume of business"
less than 2 cents on every dollar of
sales. The margin of profit in the
packing industry is the smallest en-
joyed by any industry of national
consequence"
Gross volumes of sales by his COM
pany in 1918, the witness said, totaled
1851, 100000, compared with $575, 5,O00,-
900 in 1917, but the net income was
at the rate of 9 per cent on the
average net capital invested.
Explains Capital Increase.
The 400 per cent stock dividends
in 1916, whereby the capital stock
was raised from $4,000. 900 to $780,
100000, was said by Mr.. Armour to
have been made possible by reinvest-
ment during preceding years of II
per cent of the aggregate earnings,
SO that the increase represented not
water, but money actually spent in
development. In this connection Mr.
Armour called attention to the fact
that the firm is almost entirely owned
within his family.
Mr. Armour in the course Of his
statement made detailed answer for
Armour & Co, of which he is presi-
dent, to the charges made by the
federal trade commissions report on
it's meat packing investigation and
recommendations by the commission
on which the legislation now before
Congress is based.
Why President Ordered Probe.
He declared that the high price of
meat was the real reason President
Wilson ordered the investigation
Within the last four years. he said.
the price Of live hogs had increased
245 per cent and costs of labor, cler-
ical help and fuel had doubled.
AS only 70 per cent of a hog Is edi-
BILE and the remaining 80 per cent Of
by-products have not increased in
value as rapidly as the live animal,
Mr. Armour said it could be under
stood why bacon today costs three
times what it did four years ago. He
added that prices of live cattle and
sheep have advanced at a pace with
that of hogs.
Denies Collusion Exists.
Charges by the commission Of COL
fusion among the five big packing
firms to control prices were denied
categorically by the witness for his
a fol1