The labor journal. [volume] (Everett, Wash.) 1909-1976, 1920-06-04
THIS Is BIGGEST FIGHT THE
PEOPLE HAVE ON AT PRESENT
The People Demand Adequate Packer Control Legislation With
out Delay.

the principal and necessary stocl
yards of the country, and all pri
vately owned refrigerator cars, anC
all necessary equipment for theil
proper operation, be acquired by the
railroads and operated by the gov
eminent. 1t recommended that they
should be taken over through the
railroad administration, that being
the only way in which at that time
they could be made a part of the
transportation system of the coun-
try.
Packers Admit Seeking Monopoly
While cross-eXaminging j. Ogden
Armour before the senate commit
tee Hon. Francis j. Heney, counsel
for the committee, asked: "And was
it your theory that it was a good
thing for the country, for the con-
sumers as well as the packers, that
the packing business should be mon
opolized into one corporation, which
would make a monopoly, would it
not"
Mr.. Armour replied, "Yes."
Mr.. Heney asked, SIS that your
belief, that that would be an ideal
condition ?" Mr.. Armour: "Why,
yes; we thought that by doing that
we could save many, many millions
of dollars lost in the duplication of
the business, even the duplication of
the business as it is done today"
At this hearing Mr.. Armour ad-
mitted that he and his family own
ed 20 per cent of the business and
all of the ramifications of Armour
& Co.
Competitor.
Discussing methods by which Ar
mour could kill off a competitor, Mr..
Heney asked: "But suppose he had
been a little smaller than he was,
you could have killed him off, could
you not?"
Mr.. Armour replied: "Of course,
Mr.. Heney, a big man, l suppose,
if he has got enough money, can
kill off a small man; if he has
money enough to do tiff that is
what you mean"
Mr. Swift admitted under cross
examination by Mr.. Heney as to the
reason for buying up portions of the
National Packing company concerns
at the time Swift was arranging for
merger. "The object was to put
them together in a large company
like the United States Steel COM
pany was done"
Packers Admit Results of Collision
Reached.
Before the house committee on
agriculture, Professor L. d. H.
Weld, of Smith & Co., admitted that
the packers percentages of pur-
chases remained nearly the same,
and said: eff we did have collision,
do not know whether we could
work them out any more perfectly
than it has been worked out, except
that Swift & Co. would not have in
creased it's percentage per cent in.
cattle purchases in the last two
years I do not believe that that
would have happened under agree
ment. 4 If we agreed on
these percentages it probably would
be illegal. / do not know that that
has ever been tried out.
Packers Investments and Profits.
Armour's net profits for so years,
as reported by themselves, were
on an original invest
ment. of 100000 Swift & Co.'S net
worth capital stock and surplus in
1896 was $14,500,000, and they re-
port net profits for % years of $214,-
100000. Wilson & Co. report their
net worth in 1894 was $4,694,000,
their net profits for 25 years as
S44, 100000. Morris & Co.'S net
worth in 1909 is reported as $685.
$4,000 and their net profits for 10
wears were $2S,694, 900. The Cudahy
Packing company report their net
worth in 1888 as $75O,OOO and net
profits for 81 years as $37 $4,000:
Packers Do Not Consider Farmers
Cost of Production.
Ed. C. Lasater, one of the largest
live stock growers in Texas, sub
mitted to the house committee on
agriculture the results of an audit
of his business made by Price, Wa
terhouse & Co., one of the best au--
diting companies in the United
States, showing:
"The total profit for the nine
years was $655 ,437.96. That gives
an average capital investment-that
does not include borrowed money, |
but the capital investment, $2,563,O7O
that gives a return of approx
mately % per cent. Of that profit |
there was $737 ,170.50 from real
estate transaction, from sale. De-
Quoting the profit from the real es-
tate shows me loss of $92, 1924
for the nine-year period, and make
this statement, and l think you gen
tlemen can easily verify it, that
have Jared better than the average |
producer from the Rio Grande to
the Canadian line for the past nine
years."
The Decree of the Court insufficient |
to Control Packers.
M. w. Borders, counsel for Morris |