The Nonpartisan Leader Newspaper, September 9, 1918, Page 10

The Hindenburg Line of the Packers Federal Trade Commission Advises Congress to Blast the Food Monopoly From Its Trenches—T'rust Controls,Banks and Loans, Markets and Papers BY THE FEDERAL TRADE COMMISSION HE stockyards are the depot markets” through which prac- tically all animals which move in interstate commerce pass. Ownership, partial or complete, of these markets is not only a source of great profit, but af- fords a fundamental business advantage. 'How completely the Big Five control :these markets will appear from the following list: Location of yards Percentage of tock controlled by Big Five Number of big packers interested . © <l 8 < Brighton, Mass. Chicago, IIL ..... | ® Connellsville, Pa. . Dallas, Texas .... Denver, Col. ..... Fort Worth, Texas ... Jacksonville, Fla. Jersey City, N. J.— Jersey City stock- - =3 =3 -] T 91.4 Yards ..eeeiiensens 2 Central Union stock- yards ...c.ev0eeenn 99. 1 Kansas City, Kan. 67.8| b Laramie, Wyo. .. 90.0 | 1 Louisville, Ky. 25.7 2 Milwaukee, Wis, ...... 97.5| 1 Nebraska City, Neb. ..| 100.0 | 1 Newark, N. J. ....... 99.0 | 1 New Orleans, La. ..... 86.1 1 New York, N. Y. ..... 97.4 1 Oklahoma City, Okla. ..| 84.7| 2 Omaha, Neb. ees| 60.2 2 Pittsburg, Pa. . 97.0 1 Portland, Ore. 92.1 2 Sioux ‘City, Iowa ...... 756.1 8 St. Paul, Minn. ...... 68.5 | 2 St. Joseph, Mo. ....... 84.2 | 2 S. San Francisco, Cal, .| 91.0 | 5 W.. Philadelphia, Pa. ..| 45.8 | 1 Wichita, Kan, . ... 59.6] 1 Yankton, S. D. . 2t e *The commission has definitely lo- cated Armour’s interest in the Chi- cago Stoc] company as 19.4-per | cent. There is also evidence that Swift .and probably Morris were var- ties to the negotiations by which Ar- mour acquired his interests, but it has not yet been possible to iccate Swift and Morris stock, use of the system by which the stockholders’ names are concealed through the is- sual;(ce of “bearer warrants” for the stock. **Eighty-two per cent owned by Sioux City yards. The cattle loan bank is the institution through which loans are effected for the purchase ! of cattle for breeding and fat- tening. How jealously -this i ‘monopoly of making loans at . 'the yards is guarded appears {"from the example at East St. Louis, where the packers would not permit the establishment of a rival bank within half ;-a mile. MARKET PAPERS WEAR | PACKERS’ COLLAR Direct control by ownership { of market papers and other trade periodicals was definite- ly established by the commis- | sion in the case of six papers, ! 'and there are a number of others controlled by various | indirect but effective' methods. | Control of market papers is- . important, both for their actual and potential in- | fluence over shipments and prices by the character {-of statements published and put on the wires, as t'well as for protection-against criticism. How im- - { portant this may be is shown by a letter written i'by the editor. of a Texas paper to Henry Veeder, i referring to the marked change in the policy of his . papers, as he expressed it, “before and after tak- ing” TWO LOANS OF $5,000 EACH FROM AR- IMOUR AND SWIFT. This and other correspond- i_?ibnce from the ‘packers’ files indicates that direct ublications, {source of authoritative: information regarding the Lineatmdustry is the National Provisioner. A meets a ~credulous - public. effort to cover up. is ‘not necessary for control of-these & One of the trade:'ourhalsyfr uently quoted as a’ . v e @ j frequently Quoted 882 T0'4 SECOND MARKET ris. The.big packers’ control at these markets is much greater than these statistics indicate. In the first place they are the largest and in some cases practically the only buyers at these various markets, and as such hold ‘a whip hand over the ~. commission men who act as the intermediaries in the sale of livestock. X The packers’ power is increased by the fact that they control all the facilities through which live- stock is sold to themselves. Control of stockyards comprehends control of livestock exchange build- X —Drawn- expressly ings where commission men have their offices; control of assignment of pens to commission firms; control of banks and cattle loan companies; con- trol of terminal and switching facilities; control of yardage services and charges; control of weigh- ing facilities; control of the disposition of dead animals and other profitable 'yard monopolies; and" in most cases control of all packing house and other business sités. PACKER-OWNED STOCKYARDS GIVE THESE INTERESTS ACCESS TO REC- ° - ORDS CONTAINING CONFIDENTIAL SHIPPING INFORMATION WHICH IS USED TO THE DIS- ADVANTAGE OF SHIPPERS WHO HAVE AT- IR LIVESTOCK TEMPTED TO FORWARD T fr the Leader by Congressman The pretense of patriotism and democracy that has been put up by big business no longer Grim-faced justice has stripped off the disguise and revealed the conspiracy of the political plunderbund, the kept press and the monopolies that have been taking in millions of war profits and giving out mere thousands to war funds in the . History shows no such plot against the people as that of the 'pack- ing trust as disclosed to President Wilson by the federal trade commission. ' The men who control the nation’s food are revealed to have greater powers than ought to be allowed . to any body of men in a republic. They have done things that not even ‘con- : gress has the right to do. On this page is a section of the re- 4 - port of the trade commission. Read it and think. . -BRANCH HOUSES It is interesting to note in this connection that the packers have organized.various companies to - Profits and actual market control in th handlin, ity tob low. gondola cars. The most gnportant of these from the standpoint of monopolization are-the refriger- ator cars. : e The Big Five own 91 per cent of all refrigerator cars properly equipped for the shipment of fresh meat that are operated upon the railroads of the United States. The railroads have almost no equipment suitable for shipping dressed meat, and, consequently, unless an independent packing com- pany is large enough to afford to make a heavy outlay for refrigerator cars, it is practically im- i - BEHIND THE MASK possible for it to attempt to ship fresh meat out of the lo- cality in which it is produced. The smaller independents, therefore, confine themselves - either to pork packing or to sumption. : WRUNG REBATES FROM RAILROADS Icing stations advantageous- trunk railroads’ between St. - Louis, Chicago and the At- lantic seaboard are owned and operated by three of the five packers. . At these stations the packer cars are iced as well as products, including the ship- ments of competitors. Besides serving as a particular ad- vantage to the owners in that their own ice service is secured ~ at cost, these stations put them in a position to secure val- uable information concerning the shipments and customers of competitors. From a competitive stand- point, however, a great advan- tage which the big packers ed their cars. The big pack- ers’ cars have been carefully handled, promptly returned, and used only for the ship- modities. .The small packers, on the other hand, have been subject to extreme delays in securing the return-of their cars. Six months for a trip from St. Louis to New York ber of cases where nine months elapsed before the car came back to its owner. The rail- roads have also been accus- tomed ' to- take liberties ‘with J. M. Baer cars to be used for the ship- ment of onions. trolled by the big packers-has for years given them a great with the railroads. Until the interstate: commerce commis- sion interfered this power was used to obtain money rebates, and in recent years to secure special privileges and concessions. - The big packers sometimes acted in combination, throwing their joint power against the privileges were demanded. COLD STORAGE AND railroad or group of railroads from which special o ing posts, metal bearings, waste, ice and These companies have been profitable. A P 'y v & S 3 X 3 RS i g of perishable foods are alike dependent upon abil uy duri‘;ig, seasons of surplus p: tio nd to. : cattle slaughter for local con- ly located on the lines of the™" all cars carrying - perishable have. enjoyed has been the preferential treatment accord- ment of the packers’ own com-- and return was not at all un- ' common, and there are a num-" the independents’ cars, as, for: example, permitting their beef - The freight tonnage con- leverage in all their dealings = sell railroad equipment and supplies, such as'bump-. - il