The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1922-10-27
PACKERS UNDER
FEDERAL CONTROL
Recent Law Enacted By
Congress ..
ALSO GRAIN BROKERS
Secretary Wallace Discusses
What Government Has Done
To Protect Farmers ~

Hutchinson, Kansas, October 25.-.
Secretary OF Agriculture Wallace
spoke Of the laws which congress
has enacted to extend government
supervision over packers, stock !.
yards and commission merchants.
and also over grain exchanges at
this city last night He commended
these laws as being helpful to ev-
erybody and not harmful to any
| legitimate enterprise. He said:
| For thirty years or more live.
stock producers have complained
against the packers. They felt that
! the growth of the packing business
and especially OF the few larger con-
Germs gave them an opportunity to
combine and control live stock pri.
ces. For six or eight years bills
were before congress designed to
bring the packing business under
government supervision. When
took hold OF this matter vigorously
and in August 1t passed the packers
and stockyards Act. This law brings
the packing houses, the stockyards,
the commission merchants and 9TH
er stockyards agencies under the
supervision Of the Secretary. of Ag-
riculture. He can Investigate the
manner in which the business IL
conducted, examine books, subpoena
witnesses and require them to tes-
| tify under oath. He can inquire into
! the way live stock is bought, hand
led, killed and the. meat marketed
He can inquire into the charges by
commission merchants and stock
yards and determine whether these
! charges are fair and just He can
: = IT, sy.1s I'D ~
do not conform TO fair rules and
NIT unfair charges. He can stop I'M
fair methods of doing business. I'm.
der his law 1t will be possible to
make a thorough study of the live
stock business 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.
Has Livestock Superior
THE department of agriculture
now has a live stock supervisor at
each of the larger markets. 1t has
district supervisors to look after a
number of. the smaller stockyards
and packing houses where there Is
not enough business to Justify the
expense of resident supervisor.
Live stock shippers can go directly
to these supervisors and report any
improper practices of unfair treat
ment and be sure that their COM
ton. 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 stockyards companies, as
well as the manner in which they
are handling live stock. We are
studying the packing business and
how 1t is conducted. Already we
have stopped many unfair practices.
| We have put an end to boycotts by
commission firms and stockyards
traders. Farmers CO. operative com
mission companies, poperly organic.
ed. can now go into any Of the live
stock markets and handle live stock
for their members with the assur.
ance 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. Considerable i'm
provement has been made in the
prices paid for animals which have
reacted to the tuberculin test. In
due time we will have complete In.
/ formation 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 de.
partment has been studying the re-
tail distribution Of meat. The mar
gin between the price the farmer
gets for the live animal and the
price the consumer pays for the
meat seems to be too great. We are
trying to find why. and how to re-.
livestock falls, the price of meat
should fall also, and thus increase
consumption. We are taking sys-
tematic studies of this ~ ole bust
ness especially 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 inter
| ference with private business. Some
| of these people still object, but
many who objected before the law
was passed have changed their
views. Theyr~are beginning to see
that the law is a good thing for
them, as well as for the general
public, and they are cooperating
with us.
Another law similar to the pack
ers and stockyards law is known as
! the grain futures act. This law
brings the various grain exchanges
under the supervision of the Secre.
! tary of Agriculture. 1t gives him
authority to inquire into the manner
in which grain is bought and sold
and future contracts made upon the
principal grain exchanges of the
country. It gives authority to make
a 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 imprope
practices by those who deal in grain
futures. When this law was passed
last summer an appeal was made to
the courts and 1t was held unconsti.
tutionl. 1t was redrafted and again
Passed promptly by congress. Some
of the grain exchanges have again
appealed to the courts. They think
the law Is an interference with pr.
vate business. They object >espec-
tally to the provision that they must
allow farmers CO cooperative associa
ttons to become members of boards
of trade. We hope that the supreme
court will find the law constitutional
this time.
Neither of these laws will hurt
any honest business. The whole