The Nonpartisan Leader Newspaper, October 14, 1918, Page 9

.. el Following is the'report of the - bership: ; + undersigned state committee of the © .port of the findings of this committee: 1 That the accounts are kept in- Government ownership of stock and ref,riéérato § r cars, stockyards and enough branchwhouses, cold storage plants and warehouses to provide competitive marketing—such are recommendations made by the federal trade com- mission in its report on the packing trust. The commission would probably have recommended government owner- shipof plants as well if it had felt confident of sufficient support from the people. If the people defend it from the assaults -of special interests by voting for real progressives for congress this fall and by organizing to secure political strength, the full solution of the livestock market problem will be quickly reached. include a part of the by-products and take in transfer values at market prices, Swift’s profit immediately jumps to “more than $2 per head,” and if we add other by-products properly charge- able and bring back the branch house profits, the figure keeps on climbing until it is more than 100 per cent larger than the $1.28 for 1916, and the $1.29 for 1917, which Swift & Co. are spending great sums in advertising. o The 'packers, in their recent public state- ments and advertisements, have ‘striven to create the impression that they have grown to their present size solely as a result of superior efficiency, and that whatever improper or il- legal practices were discovered in conmection with their business were merely incidental. The conclusion, however, that is produced by a study of their history and present activities is that they have attained their dominant position pri- marily as a result of unfair practices and il- legal methods. The fact that they have- so generally resorted to unfair methods of meet- ing competition discredits their claims of su- perior efficiency. It is difficult to believe that, - if the big packers had been able to extend their business rapidly by efficiency alone, they would have resorted to the devious and illegal means of crushing competition which they have employed. : . In the president’s letter of February 7, 1917, we were asked to state as a result of our investiga- tions: : “What measures are necessary to effect fundamental improvements?” What the remedy is will appear from a brief analysis of the situation. The rapid rise of the packers to power and immense wealth and their present stranglehold on food supplies were not Otherwise all that has been done so far will amount to nothing. based necessarily on their ownership of packing houses, but upon their control of the channels of distribution, particularly the stockyards, private car lines, cold storage plants and branch houses. Similarly the great profits which they have se- cured and are now securing are not primarily due to exceptional efficiency in operating packing houses and manufacturing plants, but are secured through their monopolistic control of the dis- tributive machinery. This applies not only to the meat industry, but to the other branches of the food industry which they control, as is evidenced by the fact that particularly in recent years they have made far greater efforts to secure control of the distribution of the product than to secure manufacturing plants in the case of such products as cheese and canned goods. “Several letters in our possession might be cited in support of this state< ment. \ ' 2 . As long as the packers control these distributive utilities, producers will be at the mercy of the big packers, competition will be restrained, and con- sumers generally will continue to pay the price of monopoly. Control and manipulation of the live- stock markets have been the great factors in the' discouragement of livestock production. Control of the transportation and marketing facilities have been the instruments by which competitors have been crushed. " We see no possibility of effecting the “funda- mental improvements” which the president’s let- ter sought, short of the acquisition by the federal government of the distributive utilities now con- trolled by the Big Five, and the establishment by the federal government upon equal terms for all the additional storage and distributive facilities necessary to open the-'channels of commerce in foods and related products and insure their free and unrestricted flow from the producer to the consumer. We recommend, therefore: 1. That the government acquire, through the railroad administration, all rolling stock used tor the transportation of meat animals and that such ownership be declared a government monopoly. 2. That the government acquire, through the railroad administration, the principal and neces- sary stockyards of the country, to be treated as freight depots and to be operated under such con- ditions as will insure open, competitive markets, with uniform scale-of charges for all services per- formed, and the acquisition or establishment of such additional yards from time to time as the future development of livestock production in the United States may require. This to include cus- . tomary adjuncts of stockyards. , 8. That the government acquire, through the railroad administration, all privately owned re- frigerator cars and all necessary equipment for their proper operation and that such ownership - be declared a government monopoly. 4. That the federal government acquire such of the branch houses, cold storage plants and ware- houses as are necessary to provide facilities for the competitive marketing and storage of food products in the principal centers of distribution and consumption. The same to be operated by the government as public markets and storage places under such conditions as will afford an out- let for all manufacturers and handlers of food products on equal terms. Supplementing the mar- keting and storage facilities thus acquired, the fed- eral government establish through the railroad ad- ministration, at the terminals of all principal points of distribution and consumption, central wholesale markets and storage plants, with facilities open to all upon payment of just and fair charges. S. D. Farmers O. K. League Accounts Special Committee, Representing Members of the State, Finds the Organization ~ Funds Well Managed—Former State Auditor Helps S IS well known, the Nonpartisan league in each state where it is organizing is in charge of a local state committee of League " farmers. These farmers, who compose the various state com- mittees, are not organizers, officers or salaried em- ployes of the League. They are farmer members and the official representa-- tives of the' League membership, for whom they speak and act. : Last week the Leader gave the re- port on the affairs of the League made by a committee appointed by the farmer members of the League in ‘Nebraska. ‘This week we give the official report of the South Dakota farmerg’ committee, representing the membeérship. The South Dakota com- - mittee ¢ame: to St. Paul to go over the records, books.and accounts at national headquarters of the League. The committee also went over the records, books and accounts at the South Dakota headquarters at Mitch- ~ committee to the South Dakota mem- - To Whom It May Concern: We, the Nonpartisan league of South Dakota, together with H. B. Anderson, former state auditor, having ingpected ‘the books and accounts at national head- quarters in the city of St. Paul, have the honor to make the following re- i - a very businesslike and capable manner by very capable and efficient bookkeepers. g 2. That a very complete account is kept of all the income of the organization from all sources from all the states that the organization is working in. - 3. That a very complete account is kept of all the One of the big reasorns why the farmers of South Dakota are organiging for po- litical power is to make diversified farming more profitable. They realize that they must first get the centralizers, the packers, the transportation cempanies - off their backs and that they must keep their grain by-products at home. PAGE NINE expenditures of the League; the accounts of the different states being kept separate by states. 4. That the salaries of all the heads and employes of the organization are very reasonable for like serv- ices, and in some cases the salaries are less than they might secure in similar employment elsewhere. A CO-OPERATIVE CREAMERY 5. That no claims are paid by the treasury department at St. Paul until said claims are first O. K.d by the state manager of each state and properly vouchered, . That no one person has abso- lute control of the League funds, but that all claims against the League are passed upon and must be properly in- . dorsed before payment is authorized. 7. That all of the principal of- ficials and clerks who hold responsible positions are under bonds, which are ample, and this secures the safe handling of all the funds. 8. That all the books and accounts are gone over and audited quarterly by the Equitable Audit company, Inc., "and bended public accountants. 9. We, the undersigned committee, after making a thorough inspection of the various books and accounts, feel and are convinced that all the funds paid into the League headquarters are properly accounted for, well and firm or co-partnership. Respectfully submitted, # - NATHAN GORSUCH, New Effington, A. D. ENGLE, DAVID LIVINGER, Ethan H. B. ANDERSON, Mitchell. R O e R e e e of St. Paul and Minneapolis, licensed judicially spent, and paid out with, care and judgment, the same as though handled by a careful -business - Lt hestas D e e 2 G i A B AN P T TSI DU