New-York tribune., 1920-04-02
Hoover Urged
President to
Curb Packers
Confidential Report of Sep
tember IL, 1919 Is Made
Public With the Sanction
of Wilson, 1t Is Said
Against u. S. Ownership
''Crowing Dangerous Domi-
nation of Nations Food,''
Administrator C. hareed

The Hoover National Republican
Club last night released for publica-
ton confidential report made by
Herbert Hoover to President Wilson,
under date of September II, 1918, in
regard to the "Big Five" packing firms,
the alleged abuses charged against the
packers and Mr.. Hoover's recommended
tlons for the correction of the abuses.
The preamble to the document saws:
The Preside has directed the pub
llcation Of confidential report made
to himself by Herbert Hoover. United
States Food Administrator, six
months ago in order to establish the
real position of Hoover and the Food
administration on the control of the
Chicago packing industries"
Ihere is nothing in the copy released
last night to show whether MIR. Hoover
released the document after the Presi-
dent directed its publication, or whether
MIR. Hoover had asked the Presidents
PERMISSION to make public document
which may help the movement to bring
about the nomination Of Mr. Hoover
as the Republican candidate for Pres
ldcnt.
Mr.. Hoover recommends that the
Railroad administration take over all
animal and refrigerator car services.
~ e''Si NiOHS Ic says my own instinct.
IN any event, is against Federal owner
ship of such facilities" (refcrrinc to
terminal facilities). and in conclusion
he says that the ultimate solution of the
proper control Of the packers is to be
obtained by the limitation of their &C
tivitics
The report. in part. follows:
Dear Mr.. Presidents:
u scarcely need to repeat the views
'hat expressed to you nearly year
ago. that there is here a growing and
dangerous domination of the hand}ine
of the nations foodstuFs.
do not feel that appreciation of
this domination of necessity implies
wrongdolng on the part of the pro
prletors, but is the natural outgrowth
OF various factors which need correc-
ton. In an objective understanding
OF this situation, it is necessary to
revlew the underlying economies of
its growth
Entirely aside from any uestion of
conspiracy to eliminate competition
among themselves and against out
slders, IT appears to me that these five
firms. closely paraleling each others
business as they do, with their wide
knowledge of business conditions in
every section, must at least follow CO.
incident lines of action and must nat
uraIly refrain from persistent, sharp,
competitive action toward each other.
"They certainly avoid such competi-
ton to considerable extent. Their hold
on the meat and many other trades has
become so large through the vast
equipment Of slaughter houses, cars
and distributing branches and banking
alliances which each of the five con-
trolls, that it is practically inconcciv-
able that any new firms can rise to
their class. and in any event even
sharp competition between the few can
only tend to reduce the number Of five
and not increase it,
he problem we have to consider.
however, is the ultimate social result
OF this expanding domination and
whether 1T can be replaced by a sys-
tenn of better social character and of
equal economic efficiency for the pre-
sent and of greater promise for the
future. 1t is certain, to my mind.
that these businesses have been eco
nomically efficient in their period Of
competitive f.on .e; upgrowth, but, as time
diminish and, like all monopolies. be-
gin to defend itself by repression
rather than by efficiency The worst
social result of this whole growth in
domination of trades is the undermin-
ing of the initiative and the equal op-
portunity Of our people and the tyr
any which necessarily follows in the
commercial world.
The Federal Trade Commissions
recommen dations fall into three parts:
"(A) That the railroad administered
ton take over all animal and refrigera-
tlon car services.
"(B) That they take over tho stock
yard terminals.
"(C) That the Federal government it,
self take over the packers branch
houses, cold storage warehouses, etc.