Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-02-07
OF FIGHT
FOR DECREE SEEN
Wholesale GroCers Expected
to Continue Support of
Packer Legislation.
BY WALTER BROWN.
Written for the Associated Press.

CHICAGO, February IA renewed
effort to merge the two great wholesale
grocers' associations indicates a contin-
uation of the fight against modifica-
ton of the packers consent decree to
permit Chicago packing concerns to en-
ter the wholesale grocery business.
The current issue of the National
Wholesale Grocer, publication profess
sing to represent 5000 or more whole
salers, declared:
I'VE believe now is the time a merger
should be consummated. Unless the
wholesale grocers of this land unite in
their efforts and get final decision
from the Supreme Court of the United
States and settle this case once and all,
the packers can continually keep them
selves free from adverse court action
and eventually wear down the morale OF
those who have so far put up the
money"
Opposed Modification.
The two wholesale organizations, the
National and American Associations,
Joined with the Government in oppos-
ing a modification of the decree entered
into in February, 1920. On January 5,
this year, Justice Jennings Bailey IN
District of Columbia Supreme Court
lifted the wholesale restriction. The
grocers and the Government had 80
days after that date to appeal.
Swift & Co. already have announced
plans to commence wholesale distribu-
ton of canned fruits and vegetables
Armour is marking time pending settle
ment of the litigation. Wilson, Cudahy
and Morris, the other three involved In
the decree, will follow the action OF their
larger brothers.
In the expressed opinion of leading
wholesale grocer, the wholesalers are
not primarily opposing the packers be-
cause they fear that competition in
the wholesale field. They are appre-
hensive, however, that other modiflca-
tons will follow and permit the pack
ers to enter the retail business.
They say that such an invasion would
be regarded as disastrous to many OF
the 100000 independent retail grocers
the wholesalers customers. They say
the big five" packers argued that 9TH
ers are doing what the decree forbids
| in their case, the Armour president
pointing out that one small packer has
so retail shops and one chain concern
| with 2,700 meat markets has two pack
| ing plants and sausage factory.
Refrigerator Cars.
While Swift, Wilson and Cudahy
would need to set up almost complete
wholesale systems, including the selec-
| ton of labels and brands, Armour has
marketed a brand of canned fruits and
vegetables throughout the life of the
decree This was permitted by the
court pending sale of the canneries
Armour could not find purchasers.
| Wholesale grocers also prefer to see
an unfair competitive factor in the
ability of the packers to utilize theil
refrigerator car lines in the movement
of groceries at a much cheaper freight
cost than the freight charges whole
salers must pay.
Swift mentions this advantage, declar-
ing, These products will be distributed
/ to the retail dealer through our existing
| branch houses and over existing cal
routes and by our present force Of
statesmen"
A wholesaler said, 1.-The packers car
| ship cars of meat to the Pacific Coast
and bring back loads of fruit; vegetable:
! and other fruits can come back from
\ the South and Middle West in car,
that carried meats from the packing
plants.
THE cars must come back anyway
If they return with fruits and vegetable:
the freight rate on those commodities
is materially cut under what we pay
Many of the larger grocery jobber!
buy the complete outputs of severa
canning factories, while a few virtual!
own others. The packers, If permitted
to do wholesale grocery business viii
1t is concluded, do as have the large
chain store systems, operate their owl
canning plants. or buy the output o.
private canneries.