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Kiv.? X?" S 1 S 1 I I! cha?teF ^esurprised bur^fXonr^P^^! Sron^r and theaters written part of the money was paid and for what purpose. At least two separate pools of this character particiPated in to the In„19,17 for *W* I 1 J* Moxley» paffs pref?ent big packers: First, The Packers' Pool," limited in membership to the Big Five and, second, "The Oleo Pool," the mem bership of which varies from year to year, but al ways includes Armour and Swift. The Oleo Pool is composed of large manufactur ers of oleomargarine, butterine and other similar products, who are pledged to divide whatever as sessments may be determined upon for their joint purposes on the basis of their proportionate pro duction of oleomargarine during the preceding yuear- example, the membership of the Oleo Pool and the percentages used in collect ing the joint funds were as follows: Per cent A. (Armour & Co.) 12.387 F. (Friedman Manufacturing company) 6.246 J. (John F. Jelke company) 32172 M. (Morris & Co.) 10481 Inc.) 11.563 W. (Wilson & Co., Inc.) 4.265 H. (6. H. Hammond company) S. (Swift & Co.) The general character and purposes of the Oleo Pool are disclosed by the following extract from a letter written by Alfred R. Urion, former gen eral counsel for Armour & Co., to Henry Veeder: „Jf 3.652 19.234 the following information to be disseminated amongst those who are associated with us in Pennsylvania oleomantarine. The source of my report you are famfl"a? with. I give you letter on the subject received Satarire• Hsve been given positive assurance by thp hu that there will not be any suite brought in this Btate during the time named, on tinted goods, pro- vided they are not too yellow that I is to. say, you must not go to ex- I tremes in color, but that the reg- uiar run of tinted goods will be all right. The wholesalers and manufacturers should not go far ther in spreading the understand ing than td simply notify their trade verbally that no suits will be brought and that there will be no trouble in their handling nat ural tinted goods." I have gone back to the party by letter and asked to get a definite statement from the big man, call ng off the state agents from tak ing samples and frightening the trade, and have no doubt will re ceive a favorable answer thereto. The genesis of what we have called the Packers' Pool, as well as the basis upon which it is operated, is told in the follow ing letter from Henry Veeder to W. B. Trftynor, assistant to Louis F. Swift: August 23, 1916. Mr. W. B. Traynor, Care Swift and Company, Chicago. Dear Sir: You asked me the other ilay for certain percentages •which -are generally known as the "usual percentages." On July 30. 1918, S, A and TEW agreed with and S & S upon the following percentages to cover general legislative and litigation matters: S 35751 A 29266 14988 10 SIS 10 89723 82518 16648 11111 44689 86582 18729 100000 100000 100000 Of course, and S were arbi trary. The A. and figures are the so-called old beef figures which were based upon the volume of beef business in 1902. Sincerely-Tours, This letter and agreement contain a great deal more mean ing than cursory reading would indicate. In the first place, this letter, as well as many other' documents to be produced here after, shows that Henry Veeder, the agent of the former con spiracies, is still acting as the -joint agent for the Big Five, and the custodian of their agree ments. ,The purpose of this combina tion, which for more than a generation has defied the law 'illV- 1 bfe man 1 1 1S the P°i ln' *Vi from the official report of the federal trade commission on the packing trust. The further B.y eai?s of sTorn «nn ^foSiihaVei°r Vf'li*en Wng gainst them. At last we have a full, authoritative report of an^veXl Washin^nn L°J nroti SffiS^estigation of the packers. Failing at last the big special interesteTe now trying to discredit the commission, but the farmers are resolved that this last desperate trick shall fail also. and escaped adequate punishments, are sufficient ly clear from the history of the conspiracy and from the numerous documents already presented, namely: To monopolize and divide among the several in terests the distribution of the food supply not only of the United States- but of all countries which produce a food surplus, and, as a result of this monopolistic position, To extort excessive profits from the people not only of the United States but of a large part of the world. To secure these ends the combination and its constituent members employ practically every tried method of unfair competition known to this com mission and invent certain new and ruthless meth-" ods to crush weaker concerns. SHORT WEIGHTS PART OF PACKER EFFICIENCY The early strength and rapid growth of the Big Five waa stimulated by the extortion of rebates under one disguise or another and special privileges. Among other well-known methods of unfair com petition used by the big packers of which the com mission has evidence may be mentioned the fol lowing: Bogus independents. Local price discriminations. Shortweighting. Acquiring stock in competing companies. In addition to these recognized methods of un A FIND IN 1930 ftUAS 111 Hotwbusr "N\ I KNEW HilA WELL,tJMA'»«0 ^ebof dammng proof woven around these industrial brigands. themselves, there is absolute substantiation in this report of the charges which a?d intrusted to men in whom he had confidence. For two years lobbyistsin W lU^er ^rtoonistW. C. Morris has here taken a good idea from Shakespeare's "Ham aeainnt I "ifi™ and working people of the cities have won their fight1 average, daily prte*.. testimony, market reports of various kinds fair competition the Big Five also employ a vicious system of rotation in price-cutting. This consists in each of the Big Five, or as many as happen to be represented in a given territory, arranging to cut prices in rotation, a day at a time or a week at a time, so that the burden, distributed among the big packers, will seem light, but will fall with crushing weight on the independent competitor. These, big packers who aim at world monopoly persistently stoop to the commonest of commercial frauds—shortweighting. They shortweight the livestock producers in the sale of grain and hay at the stockyards they shortweight the retailers on their shipments of meat they shortweight the gov ernment and, to make a complete job of it, they shortweight one another. Here is an amusing ex ample of the last-named practice in the form of an extract from-a letter written July 6,-1917, by Ar- Neenah Gheese & Cold Storage company to its Mineral Point (Wis.) branch, giving instruc tions with reference to Cudahy's demand for a weighmaster's certificate on his order: il J°? have n°t an official weighmaatcr. fellow that looks like one and furnish him with hlanW: if necessary yourself* It is hardly nrrpmnrH tn )I«M riow considerably this practice of ahortweight lng may affect the retail price of -meats appears from a single example, selected at random from several tests made in the presence of the com mission's agents: 7i y^nptj- BARREL OF PORK BUTTS PROM ARMOUR CO. gross Tare Net JS* .1 4 W% Weight in pounds 1 Marked Actual 287 21 266 284" 29 255 Here were 11 pounds of pork which the retailer ~is forced to pay for because lof the inflexible rule of the big packers that shipments must be accepted at stamped weights under penalty of having credit cut off. The cost of these 11 pounds had to be distributed, in some way over the selling price of the remain der and collected from the con sumer. ••••..- Foremost of packer practices in evil results^ is the manipula tion of the livestock markets manifested primarily in violent and unreasonable fluctuations in livestock prices from day to day. This constitutes tlie greatest" grievance of the livestock pro ducers against packer control of the markets. How seriously. these market fluctuations are regarded by livestock producers is expressed in the following Hst? statement of E. L. Burke, vices president of the 'American. tional Livestock association:- m- 'act Is .that beef production v--. corn lielt has become the P???. hazardous and uncertain 'egitlmate business, that a roan can I/,: SJ*"?® 'n: Outside of gambling ob the New change I know of nothing to compare with It." Probably the wont thing the ^ejler has to contend with to these violent fluctuations. The plausible contention is made hy tiie packers that the rapid advanees are an off set to the declines, but such is far from the case, as fully three-quar the cattle are bought on gs# the heavy receipts, reduo ing the avejage cost far below the average. daiV^prie'es.