Pine Bluff daily graphic., 1920-04-02
HOOVER DECLARES
 SEARCHING INQUIRY
 OF PACKERS NEEDED
Former Food Administrators Position is Made
 Public
DANGEROUS MONOPOLY
 OF q. S. FOODSTUFFS
Government Should Not Undertake Solution of the Problem by the Authority Conferred Under
 War Powers

] New York, April IA confidential
 report to President Wilson by Her ! bert Hoover, in which the food ad-
 ministrator outlines his position on
 control of the Chicago packing in.
 the Hoover National Republican club with the announcement that the i president had directed it's publica-
 ton. The announcement stated
 that the report, dated September II.
 1918, was made six months ago in response to President Wilson's re- quest for Mr. Hoover's observations on the reduction of the federal trade commission with regard to the five large packing firms.
 "l scarcel yneed to repeat the views that l expressed to you nearly year ago, that there is here grow ing and dangerous domination of the handling of the nations foodstuffs," |" the report said.
 MT. Hoover said he did not feel that the government "should under take the solution of the problem by the temporary authority conferred under the war powers of the railway and food administration" but rath- CT that it "should be laid before con- gress for searching considera t on. exhaustive debate and development of public opinion, just as has been necessary in the past department of the public interest in our banks. in surance companies and railways"
 The report reviewed the "underly- ing economies" of the growth of the packing industry and with regard toi the packers control of refrigeration operations said:
 "Provision of stockyards and car services has naturally fallen in con- siderable degree to the larger and more wealthy packers who have used thier advantages as i'll effect a spe- cial and largely exclusive railway privilege with which to build up their own business"
 Entirely aside from the question of conspiracy to eliminate compet- tion. the report said, the packers certainly avoid such competition to a considerable extent. And power is in their hands ito fluctuate prices by mere refusal to buy"
 Undermine Initiative. businesses, Gin the period of compe- uiUlNe upSIOWCi luS ieDoIt uiu lOl question, but believed Gas time goes diminish and like all monopolies be- rather than by efficiency"
 The worst social result of this growth in domination of trades isl "the undermining of the initiative and the equal opportunity of our oyI ho tvv Nxyhioh sarilv follows in the commercial world"
 MT. Hoover said he agreed with the federal trade commission rec ommendation that the government take over the stockyard terminals and thought thev should be entire ly dissassociated from the control of the packers.
 eff the government acquires the railways it would appear to me that it should. as part of the system, acquire the yards" he added.
 Absolute assurance to the food trades that terminal facilities would allow any manufacturer or dealer in any food product equal opportunity to handle and store his goods pend ing final distribution was needed" he said. The usefulness of public, wholesale or retail Markets "is a matter of great division of opinion" he added, and said:
 "The most predominant feeling in the independept trades is that if sites can be made available. adjacent to railway facilities, the trades themselves would solve the matter" Discussing the great centralization of the industry as cause of decline in slaughter near many large cities and towns, he said:
 "If proper abattoirs could be ex- tended near the larger towns, possi- bly, with municipal help and the op- erations therein protected from il- legitimate competition. believe they could not only succeed but would greatly stimulate the local produc- tion of meat animals.
 "One effect would be a great sta bilization of prices by wider based market than that now so largely de- pendent upon a small group of buy CTS"