Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-03-02
Capper Committee Asks Fur
Their Probe by Depart
ment of Justice.
BREAD AND MILK HELD
CHIEFLY INVOLVED NOW
Legislation to Curb Huge Corpora
lions Urged if Present Powers
Inadequate.

Expressing the belief that there is
"an alarming tendency toward the
monopolistic control of the food of the
Nation by small group of powerful
corporations and combinations" the
Senate Subcommittee on Food Prices
today recommended to the Senate that
the Federal Trade Commission and the
Department of Justice give careful
scrutiny to the case.
The report was filed in the Senate by
Senator Capper, Republican, of Kansas,
as chairman of special subcommittee
of the Agriculture Committee, and sug-
gested that these two governmental
agencies recommend to Congress any
remedial legislation they deem neces-
sary.
After stating the general conclusion
as to monopolistic tendencies in food
supplies, the subcommittee continued:
This is particularly true as to bread
and milk. The facts as to the influence
of the big packers over the meat in
dustry are well known.
Rapid Spread of Chains.
within the past few years the abb
sorption of independent bakers and milk
distributors by gigantic, Nationwide cor
porations, holding companies, mergers
and chain enterprises, has been carried
forward with amazing rapidity.
1.-The committee recommends the
careful scrutiny of this development by
the Federal Trade Commission and the
Department of Justice. If existing laws
are not sufficient to control these
mergers and combinations in the public
interest, the agencies above named
should recommend to the Congress
such remedial legislation as they deem
necessary"
The general conclusions Of the COM
mittee relate to the Nation as whole,
and may be summed up as follows:
THE information disclosed in this in
yestigation proves conclusively that the
retail price of bread has not declined
proportionately with the price OF wheat.
The committee finds that the respon-
sibility for this condition rests primarily
upon the large wholesale bakery COM
panies, which have failed TO pass on TO
the consumer the recent reductions IN
the costs OF their ingredients.
Bread Price Criticized.
1.-THE committee finds that through
nut the country, as a whole, there
should be an immediate average re-
auction OF at least ! cent per
pound In the wholesale prices charged
by the large baking corporations Tor
their standard breads, and that cor
responding or greater reduction shouio
be made in retail prices. The st OF
selling and distributing bread IS TOO
high and should be reduced.
eve recognize that some dealers IN
most communities have made available
breads selling at retail as low as cents
a pound. The above Recommendation
for a further price reduction is not IN
tended to apply to these special low
priced breads"
with regard to milk, the committee
came to the following conclusion for
the country as whole.
The committe finds that the lower
prices paid to the farmer for milk pur-
chased for fluid purposes have IN gen.
eral been reflected in the retail prices
charged to the consumer. What has
actually occurred is that in the ma
iority of cases the reduction to the con-
sumner has been taken wholly from the
price paid to the farmer without any
portion of the reduction being borne by
the distributor"
Meat Price Variations.
With reference to meats. the CON-
mittee sets forth these national con-
illusions:
'The committee finds that the retail
prices OF meat have reflected the lower
price received by the producer and the
packer on a centS-per-pound paslS.
However. the percentage of decrease in
the retail price is materially less, due
IN to the fixed charges OF distribution,
which have remained practically con-
slant: ~ to the reduction in the per
capita consumption Of meat, and t3) to
the large increase in the number OF
dealers handling meats. The commit
tee does not find that such a condition
is the result of a combination in re-
straint Of trade but rather one OF too
many dealers competing with one an
other for the retail meat business.
The committee in its investigation
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