Evening star., 1920-04-02
HOOVER'S VIEWS ON
PACKERS OUTLINED
Favored Reorganization of
Meat Shipping Facilities
in Letter to President.

+, NEW YORK. April 2 (by the Asso-
dated Press).-A confidential report
to President Wilson by Herbert Hoov-
er, in which the food administrator
| outlines his position on control of the
Chicago packing industry, was made
public here last night by the Hoover
National Republican Club. with the
announcement that the President had
directed it's publication
I The announcement stated that the
report. dated September II. 1918. was
made six months ago, in response to
! President Wilson's request for Mr..
Hocver's observations on the recon-
plen,lation of the Federal Trade Com
mission with regard to the Ave large
packing firms.
! Il scarcely need to repeat the views
| that I expressed to you nearly a year
ago, that there is here growing and
| dangerous domination of the handing
of the nations foodstuffs,' the report
said.
I Mr.. 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 administrations but rather
! that it should be laid before Con-
gress for searching consideration. ex-
naustive debate and development OF
public, opinion. just as has been neces-
| sary in the development of the public
interest in our banks. insurance COM
panies and railways"
| Could FIuctuate Prices.
| The report reviewed the ''under1y-
4 ing economics" of the growth of the
packing industry. and with regard to
! the packers control OF refrigerator
operations said: Provision of stock
yards ana car services has naturally
| fallen in considerable degree to the
! larger and more wealthy packers. who
| have used their advantages as in ef-
feet a special and largely exclusive
railway privilege with which to build
up their own business"
| Entirely aside from the question OF
| conspiracy to eliminate competition.
| the report said, the packers certainly
| avoid such competition to a consider
| able extent" and power is in their
| hands Ito fiuctuate prices by mere re-
| fusal to buy"
| The economic efficiency Of these busi-
nesses ''in the period of competi-
tive up-growth" the report did not
question. but believed as time goes
on this efficiency cannot fan to dimin-
| sh and. like all monopolies. begin to
defend itself by repression rather
| than by efficiency"
The worst social result of this
| growth in domination OF trades is "the
undermining of the initiative and the
| equal opportunity of our people and
ne tyranny which necessarily follows
il the commercial world.
Mr.. Hoover said he agreed with the
Federal Trade Commissions recon-
nendation that the government take
thought they should be entirely dis
sociated from the control Of the pack
ers.
Trade Would Solve Problem
"If the government acquires the
railways it would appear to me that
it should, as a part of the system. &C
quire the yards he added.
trades that terminal facilities would
allow any manufacturer or dealer i'll
any food product equal opportunity to
IA ndle and store his goods pending
final distribution was needed. he said.
The usefulness of public. wholesale or
.e.aiI markets "is a matter of great
division of opinion" he believed, and
tdded:
The most predominant feeling in
he Independent trades is that II sites
can be made available adjacent to
railway facilities the trades them
selves would solve the matter"
Discussing the great Capitalization
of the industry as cause OF decline
in slaughter near many large cltles
and towns. he said:
IF proper abattoirs could be extend
I'D near the larger towns. possibly
with municipal help, and the opera
tions therein protected from illegiti-
nate competition, / believe they could
rot only succeed. but would greatly
stimulate the local production of meat
,nimals.
Equal Opportunity Needed.
One effect would be great stabili-
alton of prices by a wider based mar
ct than that now so largely depend
snt upon small group of buyers
I'm summation, ] believe that the
Ultimate solution OF this problem ia to
e obtained by assuring equal oppor-
unity in transportation. equal oppor-
unity in the location Of manufacture
ng sites and of terminal sites and the
limitation of the activities Of these
businesses In this situation / believe
hat the nifty minor meat packing es-
Adjustments and the hundreds of hun
!reds of other food preservers could
successfully expand their interstate
activities. and that local slaughter
would increase with economic gain to
ne community. and all through con-
-inued competition constantly Improve
ur manufacturing and distributing
processes to the advantage of both
producer and consumer
The detailed methods. except in the
manifest csse Of car and stockyard
control reClIire much more thouUht