404 IOWA DEPARTMENT OF AGRICULTURE 



there are those words, "government operation and control." The Kendrick 

 bill, however, goes at the matter in a different way. The provisions of 

 the bill are in the most part mandatory, and it has just three important 

 features: First, the segregation of the stock yards from the packers' 

 ownership, and gives them two years in which to dispose of their inter- 

 ests in the stock yards; second, the railroads must take over and operate 

 the refrigerator cars and furnish all shippers refrigerator cars on an 

 equal basis of distributing meat products. The packers owning the re- 

 frigerator cars must enter into an agreement in six months with the rail- 

 roads whereby their refrigerator cars may be distributed to the trade 

 on equal terms. That contract between the railroads and the packers 

 must be subject to the approval of the Interstate Commerce Commission. 

 The third feature of the Kendrick bill provides for the general licensing 

 of the packers, commission men and the traders. That license is to be 

 administered, not as in the Sims bill, but by the Department of Agricul- 

 ture. The Department of Agriculture, as you now know, is administering 

 the licenses under which the commission men and the traders are operat- 

 ing. It lays down certain stipulations that shall be contained in the 

 license, not leaving it entirely to the discretion of the Department of 

 Agriculture — and perhaps this is a very wise feature. The Sims bill gives 

 discretionary powers. Among other things it says that there must be the 

 greatest publicity in connection with the packers'" business, and a uniform 

 system of accounting. The Department of Agriculture has a right to 

 examine the books and papers, examine witnesses under oath, and bring 

 out all the facts in regard to this great industry. There are certain stip- 

 ulations in regard to what the profits shall, be, and that is largely within 

 the power of the secretary. 



Now, gentlemen, in a general way that is the difference between the 

 two bills, and I want to say that the American National Live Stock Asso- 

 ciation, the Market Committee, foresaw several weeks ago that it was 

 impossible to pass the Sims bill, for the very reasons I have pointed out, 

 and the only possible hope of legislation at this session of congress was 

 the putting across of the Kendrick bill. The packers have not realized 

 that there was to be a shift from the Sims bill to the Kendrick bill, and 

 they have expended large amounts of munitions in shooting up the Sims 

 bill, and apparently have not saved very much for the Kendrick bill. We 

 are perfectly satisfied that they should keep on using up their money and 

 munitions on the Sims bill, if we can get the other one. 



The testimony of the big packers has been very interesting. Mr. 

 Armour said the other day they were perfectly willing to give up the 

 ownership and control of these facilities — stock yards and refrigerator 

 cars and the instruments of distribution — provided that equally good 

 service could be guaranteed; but he says that would be impossible. Now, 

 gentlemen, if you and I owned a public utility which was contrary to the 

 public welfare, do you think that would be good practice to stipulate the 

 terms on which we would be willing to give up that public utility? If we 

 did have that privilege, would you consider that an example of a special 

 privilege? Mr. Swift got off something the other day that was equally 

 amusing. "Yes," he said, "we are willing to concede we need regula- 

 tion; we will stand for regulation; but," he said, "we do not want any 

 control we want the kind of regulation that does not coiitrol." 



