Imperial Valley press., 1922-10-25
WALLACE TELLS
THAT new ACT
BENEFITS FARMERS
Packers Control and Grain
Futures Act to Stop
Unfair Methods

grpSS mas enacted tO tSitHu SONtIH-
ment supervision over packers, stock
Yards and commission merchants, and
also over grain exchanges. He com
mended these laws as being helpful to
everybody and n0t harmful to any legi-
innate enterprise. He said:
''For 80 years or more livestock
producers have complained against the
packers. They felt that the growth of
the packing business and especially of
the few larger concerns gave them an
to combine and control
live-stO prices. For six or eight
years bills were before congress de.
signed to bring the packing business
under government supervision. When
congress met in the spring of 1921 it
took hold of this matter vigorously and
in August it passed the packers and
stOckyards act.
"This law brings the packing houses,
the stOckyards, the commission mer-
chants and other stockyard agencies
under the supervision of the secretary
of agriculture. He can investigate the
manner in which the business is con-
Quoted, examine books, subpoena wit
nesses and require them to testify un-
der oath. He can inquire into the way
the livestock is bought, handled, killed,
and meat marketed. He can inquire
into the charges by commission mer-
chants and stockyards and determine
whether these charges are fair and
just. He can discipline firms and in
dividuals who do not conform to fair
rules and regulations. He can refuse
to permit unfair charges. He can stop
unfair methods of doing business. I'm
der this law it will be possible to make
thorough study of the livestock bus
mess from the time the livestock
leaves the farms until the meat reaches
the city wholesaler, and correct unfair
practices at any point along the way.
The department of agriculture now
has a livestock supervisor at each OF
the larger markets. 1t has district
supervisors to look after a number OF
the smaller stockyards and packing
house where there is not enough bus
mess to justify the expense of resi-
dent supervisor. Livestock shippers
can 60 directly to these supervisors and
report any improper practices or unfair
treatment and be sure that their com
plants will receive prompt attention.
"We are making audits of the books
of commission merchants and before
long will know whether the rates they
are charging are fair. We are also
looking into the charges made by
Istockyards companies, as well as the
manner in which they are handling the
live stock. We are studying the pack
ing business and how it is conducted.
Already we have stopped many unfair
practices. We have put an end to boy
colts by commission firms and stock
yards traders Farmers cooperative
commission companies, properly organ
lied, can now go into any of the live
stock markets and handle live stock
for their members with the assurance
that they will have a square deal. That
was not possible before. Reforms have
been made in the way live stock is
handled at some of these markets. Con-
siderable improvement has beeH made
In tn prices paid for animals which
have reacted to the tuberculin test. In
due time we will have complete infor
nation concerning the livestock and
packing business in all of its details
and will be able to correct and prevent
any abuses.
Along the same line the department
has been studying the retail distribu
tiOn of meat. The margin between the
price the farmer gets for the live ami
NAL and the price the consumer pays
for the meat seems to be too great.
We are trying to find why, and how
to reduce this margin When the price
of livestock falls, the price of meat
should fall also, and thus increase con
sumption. We are making systematic
studies of this whole business, especial
ly in the larger cities of the east.
''There was opposition to the pro-
pOsal to bring the packers and stock
yards agencies under the control OF
the government. Many people felt that
it was an unwarranted interference
with private business. Some of these
people still object, but many who OBJ
iected before the law was passed have
changed their views. They are begin
ming to see that the law is good
thing for them, as well as for the gen
eral public, and they are cooperating
with us.
"AnOther law similar to the packers
and stockyards law is known as the
grain futures act. This law brings the
various grain exchanges under the su-
pervisiOn of the secretary of agricui-
ture. 1t gives him authority to in
quire into the manner in which grain
Is bought and sold and future contracts
made upon the principal grain ,ex-
changes of the country, Ii gives an
thority to make careful study OF our
entire system of grain marketing and
especially of the practice by which
grain prices are registered on these
markets. This law does not prevent
hedging or legitimate trading, but it
does carry the power to prevent unfair
manipulation and correct improper
practices by those who deal in gram
futures. When this law was passed
last summer an appeal was made 10
the courts and it was held unconsiitu.
tional. 1t was redrafted aud again
passed promptly by congress Some OF
the grain exchanges have again appeal
ed to the courts. They think the law
is an interference with private bus-
ness. The object especially TO the
provision that they must allow farm
ers' cooperative associations TO be
come members of trade. We hope that
the supreme court will find the law