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About The commoner. (Lincoln, Neb.) 1901-1923 | View Entire Issue (Aug. 1, 1918)
'OTWWI' M ( lO.i. The Commoner ' V0L- 18, NO. 8 ? "Tt ? til till II I. i- r" Curb on Packers by Government A - 'Washington dispatch, dated August 8, says: Investigation of the packjng Industry of the country by tho federal trado commission culmin ated today in an announcement that the commission had recommended to Prosidont Wilson that tho govern ment commandeer and operate for tho public, benefit stockyards, cold storage plants, warehouses and re frlgoratqr ,and cattle cars. Monop olistic QOfttrpl of the essential food uupplyi.hot only of the United States anjl its army and navy, but also of the. jQutonio countries, was charged by tho.comiaiflHion against tho live great pa.qkiqg companies Swift, Armour, Morris, (JHulahy and Wilson. Tho last named, company, tho commis sion', report said, is controlled by throp , of tho strongest banking groups, (n, tho Unltod-States Kuhn, Iqpt) & Co., Guaranty Trust com pany and Chaso National bank. Further afllliatlon between the packing industry and financial in terests, was roportod. Tho commis sion ahl that in tho great financial conjtors the packers had representa tion pn tho directorate of largo' banks through, members of tho individual fancies, or through officers, direct ors or. confidential employes: No Comment ut White House. Tho commission's roport on the packing industry was tho third made in its gonoral investigation of food euppllos ordered by President Wilson and congress last year. The report was mado public through the white house without further comment than that it had boon presented July 5 and had not before beon made' public because tjio President desired first to get full information. Y Basing its statement upon a great volume of evidence oxamlnecl, the commission said tho power of tho five packing companios "has been and is being unfairly and illegally used" to:, Manipulate livestock markets. Restrict interstate and interna tional supplies of food. Control tho pricos of dressed moats ftnd other foods. Defraud both tho producers of food ..and qpnsumors. Crush effective competition. Secure special privileges from raiK t roads, ' Btockyard companies and municipalities. . Profiteer, "WJU)q. we have round," said the . commission's roport, "an intricate i fabric pf monopolies, controls, com j. binnUoiu, conspiracies and restraints . which. would seem to indicate legis lative, oru administrative remedies, we believe, tht an adequate remedy may . bet more, simply arrived at. . r "WQbeUovo that if the fundament al and, underlying evils are rooted out'tfiQ .whole structure pf conspiracy, i .control, monopoly and restraint must Jail. :l4 , r , "If , these five creat coneorns nwnori - no packing plant and killed no cattle and sttyl retained control of tho in- . strumous of transportation, of niar- rM,QUn.g,Aad of storage, their position v woijldbe no less strong than it is." Wh.ati Commission Recommends. Tho commission then recommend ed: (' ( (lVThat the government acquire rKcmgliOthe railroad administration, 'all foiling stock used for thq trans it -portation of meat animals and that such ownership be declared a gov ernment monopoly. (2) That the government acquire, through tho railroad administration tho principal and necessary stock yards' of tho country, to be treated as freight depots ana to be operated . under such conditions as will insure open, competitive markets,- with uni form scalo of charges for all services performed, and tho acquisition or es tablishment of such additional yards from time to timo as the develop ment of livestock production may re quire. This to include customary ad juncts of stockyards. (3) That the government acquire, through the railroad administration, all privately owned refrigerator cars and all necessary equipment for their proper operation, and that such own ership be declared a government monopoly. (4) That the federal government acquire such of tho branch houses, cold storage plants and warehouses as aro necessary to provide facilities for the competitive marketing and storage of food products in the prin cipal centers of distribution and con sumption. Tho same to be operated by the government' as public markets and storage places under such condi tions as will afford an outlet for all manufacturers and handlers of food products on equal terms. Supple- rmenting the marketing and storage facilities thus acquired, the federal government establish, through the railroad adminsitration at the terminals of' all principal points of distribution and consumption, central wholesale markets and storage plants with facilities open to all' upon pay ment of just and fair charges. International in Scope. "Out of the mass of information in our hands," the report continued, "one fact stands out with all pos sible emphasis. The small, dominant group of American meat packers are now international in their activities while remaining American in their identity. Blame which now attaches to them for their practices abroad as well as at home inevitably will at tach to our cfountry if tho practices continue. This urgently argues for a solution which will nor. diminish the high regard in which this people is hold in international comity." The commission says tho five pack ing companies either separately or jointly own or control more than half of the exoort meat production of Ar gentine, Brazil and Uruguay and have investment in other surplus meat pro ducing countries, Including Australia, as well as Branches In Great Britain, France, Italy, Germany, Canada, Den mark and Paraguay. "Under present shipping condi tions, the report odds, "the big Amer ican packers control more than half our meat upon which the allies are dependent." Of the difficulties which the pack ers threw into the way of the com mission's investigators, headed by Francis J. Heney, the report says: The commission, through Mr. Honey, had to meet deliberate falsi fication of returns properly required under legal authority; we had to meet schools for witnesses where employes were coached in anticipation of their be ng called to testify in an Investi gation ordered bv von mi twi;i,n ,and by the congress of the United Every Efforts Made to Tmnofio. Tho commission's staff, the report declared, have met and overcome every obstacle that "ingenuity and money could devise to Impede them " The President's attention was called to the work of Mr. Heney, "whose conduct of the case, 'because of its success, has met with condemnation misrepresentation and criticism." ' The commission reports that the packers not only control tho meat supply,, but a "countless" number of by-products industries" and have in vaded allied industries and even un related ones. This control has ex tended now to the principal substi tutes for meat, such as eggs, cheese and vegetable oil products, the com miflnlnn nnvfl. and r&nidly is beinff extended to cover fish and nearly every kind of foodstuff. This control is made possible, says the commission, by- the advantage obtained in market places and means of transportation. The commission dismisses the claims of the packers to legitimate ' competition among them by saying that some of the competition "is staged" but that it is superficial. After detailing the control of the five companies over the meat and allied industries, the commission says this control rests in the hands of a small group of individuals J. Ogden Armour, the Swift broth ers, Morris brothers, Thomas B. Wil son, acting under tho veto of a group of bankers, including the Chase National ' bank, Guaranty Trus't company, Kuhn, Loeb & Co., William Salomon & Co., and Hall Garten & Co., all of New York, and the Cudahys. What the Packers Say. A Chicago dispatch, date1 August 8, says: Protests against the recom mendations of the federal trade com mission that the government assume control of the packing industry we're made today by some of the heads qf Concerns in tho TTnfnn cjfnnlr vnrrlo While others expressed much interest in me proposal, j. ogden ArmoUr, president of Armour & Co., after pointing out that the government had been in control of the packing In dustry since November l,'i917, said that the statement made by him at the beginning of the war, that '"the United States government, can liaye. Armour &-Co., and. every employe and official thereof, if need be," was reiterated "a thousand times more emphatically." Edward Morris, president of Mor ris & Co., said that the commission evidently desired to place the entire stockyards and packing industry in the hands of the railway administra tion. He added that with profits Urn ted to not over 9 per cent on the capital invested, "we can not see where conations would be innim,. Thomas HS. Wilson, pS? Wilson &.,Co., said that if ZQtn methods for the benefit of the nil? can b,e wdrked out, "we will tt eSt."ndC0'0Perate t0 tt8toB LOUIS F! Swiff. nraolflnn -. ... & Co., while expressing willing! to co-operate with the governS -, said that "wo do not believe that iS taking over of branch houses an! storage houses would be practical."' THE NEBRASKA STATE FAIR The semi-centennial Nebraska State Fa(rK which will be held in Lin. coin, Sep'teih'ber 1 to 6, has based its Drocram irnon a desiro tn h vice to -tAe. government. It will jjco.v.ix uuia .vumu iiiuieuHeu ioott pro- Action and, conservation of avAHflhifl stores as it never has before. Tf ni aiso snow a large exhibit prepared by tne unitea states government planned to give the people a better nniior. standing of, how the war is being iougnu. stress is ueing placed on features that tend to davalnn iinta. citizens and thereby better Americans. The importance of the canning of fruits and ivegetables will be fully stressed in the boys' and girls can ning club activities and in the exhib its of the domestic products class. Canning, as a means of conserving food was never so important as this year. With our food reserves still low and with tdhs upon tons of fruits and vegetables going to waste in the fields eaChiryear there is need of a new interest in canning. Last year a great deal of comment arose out of the demonstration at the state fair of a community drier for the preserva tion of fruits and vegetables and the demonstration was responsible foT a drier being used in a good many communities. This year's Nebraska State Fair will be up to Us usual high standard in all departments. Unusual features have been provided for the entertain ment and comfort of its guests, and all railroads have granted reduced rates to fair visitors. W . Cost or Investment Do you say life-insurance costs too much? If; -you should buy a piece of property and in one, three or even ten or fifteen years s,ell it for two, four or sixteen times what you .paid for it would you consider you' had made a bad bar gain? v If the premiums have been paid on a life in surance policy, there is bound to be a return either to the insured or his beneficiary. If to. the beneficiary, the amount received' is always more than the insured paid the company; "arid if to the insured, it may be less or more, ac cording to the number of premiums paid, the kind 'of policy, and the length of time it was in force. If you never make a worse investment' than a policy on your life, you will stand oiit -prominently as a shrewd and careful investor.' THE MIDWEST IMW ' of WNCOLN, NEBRASKA .tJ ,V . ' . N. Z. SNBLL, President U . Guaranteed Qogt Life Insurance n,ft ' : .i iSj