The Richmond palladium and sun-telegram., 1921-09-23
PACKER REGULATION
ACT TO Be TESTED
IN PRACTICE SOON
BY William r. sanborn


tion under the so-called Packers act
is now being built up by the depart
ment Of agriculture The new and as
yet unnamed federal bureau will con-
troll what, in the point of annual value
of output, is the biggest industry in
the country Its powers and activl-
ties are in the nature of those exer-
cised by the inter state commerce
and federal trade commissions.
Jurisdiction over the packers and
all stock yards has been taken bodily
from the federal trade commission and
lodged in the new bureau. 1t is
charged with all duties of detection
and prevention Of all unfair and dis
criminatory trade practices, if such
there be- Its duty will be to establish
lust and reasonable" rates for all
stock yards services to live stock
owners and shippers.
In Farmers Interest
The work of the bureau will pri-
marily be in the interest of the farmer
and stock raiser. Such benefits as
may accrue to the consumer will be
incidental The. act itself was not
put over because consumers resented
the high cost of meats at retail. but
because of the low prices paid to the
live stock grower. who felt he had
Just cause for complaint.
The agitation for the bill grew out
OF charges of unfair business practices
and price fixing brought by the farm
ers against the packers and stock
yard owners. These charges were
pressed before the agricultural bloc in
congress, and the enactment followed.
IL the charges made are sustained it
will be the business of the new bureau
to do away with all such tactics.
viii Insure Square Deal
Whatever may have been the facts
in the controversy which resulted in
this drastic regulatory legislation. il
would now seem that whatever has
been wrong and against the spirit OF
fair dealing. will in future, be elimi-
mated That of itself means much to
every shipper It will conduce to his
peace OF mind so say the least, be
the market high or low
May Ascertain Profits.
How much have the packers been
making? To this question we have
no answer Nor have the public ever
had satisfactory answer to that
question.
Although there Is nothing in the
new law compelling the collection and
publication of figures showing in
comes and disbursements. the new
bureau will have access to all books
and other sources of information, ant
will be able to determine just what
packers profits are, after the bureau
begins to function.
By-Prcduct Earnings.
The issue in this controversy always
has been obscured by the fact tha
much of the profits of meat packing
on a large scale is derived from the
by-product industries. The new bu
reau. when once in operation, viii
be able to establish just what the
net income from these industries are
and also what relation these by-pro
duct incomes bear to the going price
for meats, and whether same are be
ing sold on legitimate profit basis
This fact. as we see ii, is the big
gest thing connected with the meas
ure. as it effects consumers.
Should the agricultural bureau fin
that, In view of the combined return
from meat and by-products, wholesal
meat prices are too high, it will hav
regulatory power or control to lowe
prices This is however, we unde
stand the measure, and at this poir
the welfare of the consumer is take
into account.
Is Radical Legislation
Opponents of the measure clair
that this act is one of the most rad
cal pieces of legislation that has com
out of the Capitol in long time
staff correspondent of the Detro
Daily News says that the Packer
act. extends the principle of feder;
regulation of business toa degree tht
a few years ago would have bee
incredible"
As a matter of fact the secretary
agriculture is empowered under II
act to fix an arbitrary scale of rate
for services furnished by stockyard:
II is not unlikely that this sectic
of the bill will be tested in the supren
court, in the hope that it will be four
that congress has exceeded its juri
diction. This is not certainty b1
has been hinted at in interestt
circles.
4 former federal circuit judge is
vestigating the projected activities
the new office and for the present Il
office is in charge of Chester Morri
assistant chief of the bureau of ma
bat nd