The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1920-01-14
Chairman Of Federal Trade
Commission Alleges Con-
spiraey By Packers
SCHEME SUGGESTED TO
DISCREDuT COMMISSIONER
Arrest Of Employees of Com
rnissien as Radicals Part Of
The Plan


arrests OF federal trade commission
lnplUyees, made in the recent depart
nent of justice campaign against
sfads, have been the result Of
sframeups' designed to build the the
Org that the commission is a. 'hotbed
OF Relshevism iwsre made today by
fsIEssS. Ceiver Of that body before the
senate agrieulture committee.
golver left the intimation that the
larger Chicago packing concerns had
c8nnived in some degree to attain that
result and involved Ludwig C. A. K.
Martens, self-styled ambassador Of
the Russian soviet republic tor the
United States, and S. Nuorteva, Mar
tens, secretary. in his account Of in
stances to prove the point. Given a
whole day before the committee,
which tonight announced its hearings
ended, Colver likewise voiced vigor-
oHs demand for legislation to regulate
tie Industry, need Of which was prov
eds he said by the recent agreement
besween the packers and the depart
naentof justice in settlement Of the
antitrust proceedings.
70 this testimony the commissioner
added a critical analysis of state
Iaents and motives of witnesses who
have opposed packer regulation dur
ing the prolonged hearings Of the ag-
riculture committee on the Kenyon
and Kendrick bills last year, conclud-
ida with the assertion that in the
meat industry competition is continu-
inf TO lessen and monopoly to increase
aSeh though we exhaust the powers
d4 pfesent federal laws intended to re-
strain it.''
The first instance. the commissiop-
er said, of the 3'frame-up" had result
ed in the arrest OF Rafael Mallen, a
former clerk Of the trade commission.
IA raids directed last week at Chi
caso communist centers >by the de-
paEtreRt Of justice. II. j. G.. Clay
baugh. head of the secret service at
Chicago, ard his assistant, "a man
nanleI Barry ,Colver said. both Of
9saorn have since resigned, were re-
sponsible, and Barry now was a "spe-
cSaE agent for Swift r& Company.
MalIsn was later released. \
John n. ohsol, another employee Of
taa commission. Colyer said. was ar
rested in a Washington hotel during
the present week while Jon visit to
3 s. Nuorteva, having been pointed out
ia police officers as Martens, who is
Being sought by the secret service.
Reading an alleged claim of Nuorteva
ard Martens that purchase Of large
meat supplies from an unnamed Chi
a9go packer had been arranged with
tie object of getting it into Russia
through the allied blockade. Colyer
said he considered this connection be-
tween meat packers and the soviet
representatives significant as it con-
eeTned Ohsols arrest since the latter
had been taken into custody when
hescame to see Nuorteva in answer to
aSspecifie telephone call.
ReFerting to the agreement +prepar-
ed hy Attorney General Palmer in con-
ctudmg the Sherman law prosecu-
tions against the packers. Colvei' said
that merely settled the sherman law
phase of the matter
Separation Of the packers from
their grocery holdings, however. as in
TIE case Of the transfer by Wilson &
Company Of its grocery business to
Ailstin Nichols & Company of New
York, a wholesale grocery, he assert
ed smerely means that the stock
hplders Of Wilson & Company have
added the Austin-Nicholls concern to
tHers holdings.
Dealing with persons who have dis
eassed regulative legislation before
tie committee since the Kenyon and
Kendrick bills were advanced. Colvcr
sid that out of 1S1 heard. f44 had
opposed any federal control of the
industry. many. he said. because they
had been influenced by propaganda
from packers institutions.
ITO show that the consumer was not
getting any benefit from lower live
stock prices, Colver presented a
diagram showing that on August /,
when live hogs sold at % cents
pond, pork loins sold in Boston for
81 az cents. white on October %,
when live hogs sold at II II cents,
IONS sold at 81 II cents in Boston.