The Connecticut labor press., 1920-05-29
PACKERS AFTER
 CONTROL OF ALL FOOD SUPPLIES
Eggs, Butter, Vegetables and All Now in Grasp of Huge
 Combine.

doubled, treb1ed and then quadrupled its profits since the war, IS now reach ing out to control not only the meats but eggs, butter, cheese and vegetable supplies of the country and will do so unless stopped by Congressional action :; how 1t is employing a huge slush fund to mislead the public, influence favor able legislative and other action for it. self, defeat the present laws and upset them wherever possible and Ill fact IS becoming an octopus that will soon have the country in its grasp is plainly set forth in a special report ot the Federal Trade Commission just made public.
 From 1912 to 1914, the report said, the "big fve"-Morris & Co.,, Wilson & Co.,, Cudahy Packing Company, Ar mour x Co.,, and Swift X Co-made average annual profits of $59,5OO0OO, while i'll the next three years, their net return averaged $l92,000,OOO.
 The commission called attention to the packers announcement that profits amounted to "only or 5 cents per dol la1 of sales" and said that i'll an in dustry like those under consideration which turn over a product very rapid ly, this is the equivalent of high rate of return on net worth, IS per cent. or more.
 At the beginning of 1919, the report estimated the combined assets of the Big Five" at $500, 100000, their com bined net worth at $535, ,OO0,0O0 and aggregate sales for previous year at S3.2OOOOO, ,OO0 And the several com panies have grown to these proportions principally from profits retained i'll the business" it added.
 Profits retained have been generally capitalized by issuance of stock divi- dends, it was said, so that of the present outstanding stock, ''only about 40 per cent represents direct cash contr1bu- tions on the part of the stockholder."
 There have been nine hearings with in the last few years on legislation to control the meat packing industry. The hearings within recent years have been based upon the most thorough, fair and complete investigation ever made ot any big industry,-the investigation ot the meat packing industry made under ord CT of the President, by the Federal Trade Commission.
 The demand for adequate legislation to control the packers IS as nearly uni versal as demand for legislation has ever been in this country. At the hear ings on lcler legislation before, the House committee on agriculture. recent ly closed, representatives of the Farm CTS National Council the National Board of Farm Organizations, the Ma tional Grange, the American Farm Bureau Federation, the Farmers Ma tional Union, the American Federation of Labor, the Railway Brotherhoods, the National Consumers League, and the National League of Women Voters, urged adequate packer control legisla- ton.
 Very few producers and fewer so- called independent packers appeared in opposition to pending packer control legislation and those who did appear spoke m 1rely as individuals. It is well within the bounds of accuracy to say that these who advorated packer con- tro1 legislation represent with the mem bers of their organizations and their families, close to two-thirds of the country's population.
 In their report to the President the Federal Trade Commission stated:
 Answering directly your question as to whether or not there exist 'monopo- lies, controls, trusts, combinations, con- spiracies, or restraints of trade out of harmony with the law and the public interest," we have found conclusive evil dence that warrants an unqualified affirmative *
 II concerns of the country-Swift, Ar mour, Morris, Cudany, and Wilson have attained such dominant position that they control at will the market in which they sell their products, and hold the fortunes of their competitors in their hands"
 'tThe producer of live stock Is at the mercy of these five companies because they control the market and the mar keting facilities and, to some extent the rolling stock which transports the pro- duct to the market.
 "The competitors of these five con- cerns are at their mercy because of the control of the market places; storage facilities, and the refrigerator cars for distribution.
 "The consumer of meat products is at the mercy of these five because both producer and competitor are helpless to bring relief" *
 The commissions summary of its findings states, Five corporations Armour & Co, Swift & Co.,, Morris & Go, Wilson & Co.,, Inc, and the Cudahy Packing Co.-hereafter referred to-as the Big Five not only have monopo- listic control over the American meat industry, but have secured control, similar in purpose if not yet in extent, over the principal substitutes for meat, such as eggs, cheese, and vegetable oil products, and are rapidly extending their power to cover fish and nearly every kind of foodstuff' *
 "The power of the Big Five in the United States has been and is being unfairly and illegally used to-
 Manipulate live stock markets;
 restrict interstate and information
 al supplies of foods; control the ~
 prices of dressed meats and other
 foods; defraud both the producers
 of food and consumers; crush
 effective competition; secure spe-
 cial privileges from railroads,
 stockyard companies, and munich
 palities; and prohteer."
 Swift & Co. is the greatest butter distributor i'll the United States handl- ing in 1916 in round figures, 5O,000,OOO pounds, or nearly as much as the com bined sales of the two largest non packer organizations.
 Judged conservatively by trade es- inmates, the Big Five packers handle at least half of the interstate commerce 1n poultry and eggs and in cheese. The packers are also imporfanr factors Tn the preparation and distribution of con- densed and evaporated milk, and are rapidly increasing their proportion"
 Recently the big packers began deal ing in various staple groceries and vegetables, such as rice, sugar, potatoes, beans and coffee and increased their