Meatpackers

Finally, it is contended that the Department of Agriculture has done, and is doing, a good job in this area.

Proponents of a shift back to the Federal Trade Commission deny the force of these assertions. They deny that restraints, preferences, price fixing, discrimination, and unfair trade practices in the meatpacking industry differ from similar practices on the part of members of other industries, so as to require specialized supervision differing from the supervision given such practices. in industry generally by the Federal Trade Commission.

They assert that the Department of Agriculture has had neither the appropriation, the trained personnel, nor the incentive to supervise the trade practices of meatpackers. And they assert that the Department has inadequately enforced the unfair trade practice provisions of the Packers and Stockyards Act.

It is further contended that the definition of "packer" in the Packers and Stockyards Act is so broad that food-store chains and other elements of the food industry may be able to defeat Federal Trade Commission jurisdiction by simply acquiring a minority interest in a packing plant, and thereby qualifying for the packers" exemption.

Certain opponents of the pending legislation agree that there is a loophole in existing law which apparently enables food-store chains and others to qualify for the meatpackers' exemption from Federal Trade Commission supervision and that this loophole should be closed. The importance of these bills is emphasized by the vital place that the cost of meat occupies in the American family budget. This consideration, coupled with the necessity that livestock producers shall receive a fair price from packers, makes it essential that monopolistic tendencies resulting from unfair and deceptive trade practices in the meatpacking industry shall not go unchecked.

The subcommittees desire to hear all points of view on the problems underlying the presently pending bills. To that end we have invited Members of Congress and other interests to appear and give testimony. We have similarly invited and expect to receive testimony and statements from the Chairman of the Federal Trade Commission and from the Department of Agriculture.

As cochairman, I wish to announce that at 12 o'clock we have a rule to be considered by the House on civil rights and that for the ensuing 2 days we will be engaged in consideration of civil rights, so we cannot hold these hearings beyond 12 o'clock each morning. We hope to finish taking testimony on these bills in the 3 days. It is hoped, therefore, that our witnesses will be as brief as possible.

Our first witness this morning is the distinguished Senator from Wyoming, who is no stranger here, of course, the Honorable Joseph C. O'Mahoney. But, before you proceed, I think it would be most appropriate if my cochairman wants to say something.

Cochairman MACK. Thank you, Mr. Chairman.

Senator, I am not going to delay your testimony at all. I just want to say that I fully support the fine statement made by my cochairman. The Subcommittee on Commerce and Finance of the House Committee on Interstate and Foreign Commerce welcomes this opportunity to hold joint hearings with the Antitrust Subcommittee of the House Judiciary Committee on legislation to transfer to the Federal Trade Commission, from the Department of Agriculture, jurisdiction over unfair and monopolistic trade practices in the meatpacking industry.

This is the first instance, I believe, in which subcommittees of the Judiciary Committee and the Committee on Interstate and Foreign Commerce have held joint hearings. You might say that the cooperation between these two committees with respect to legislation parallels the cooperation which we find between the Department of Justice and the Federal Trade Commission with regard to the enforcement of the antitrust laws including the Federal Trade Commission Act. I believe that such cooperation can be exceedingly useful where we deal with problems which cut across committee jurisdiction, and I hope that the results of our joint efforts will prove beneficial to the American people.

While the purpose of the legislation before us seems rather simple, the problems which underlie these bills are rather deep seated. Basically, the bills before us attempt to deal with the question of how best to assure that the agricultural segment of our population receives fair and equitable treatment from the highly organized and concentrated processors of livestock. The steadily shrinking share of the gross national product which agriculture receives makes it urgent for Members of Congress to explore all possible ways by which this steady decline can be arrested. If unfair trade practices on the part of the packing industry which have gone unchallenged in the past are partly responsible for this decline, then Congress must see to it that such practices will be eliminated in the future. The question before our committees is how best to accomplish this objective.

I do not want to delay any longer the witnesses who are here this morning to present their testimony and therefore I wish to leave to them any further discussion of the bills before us.

So I want to say again that we are very happy to join with you, Mr. Chairman, in consideration of this legislation, and since you have made such an outstanding statement concerning our problem this morning, I certainly have nothing more to add.

The committee will be very happy to hear Senator O'Mahoney. Cochairman CELLER. Does anybody else wish to make any state

ment?

Mr. KEATING. In light of the fact that we are to hear from our distinguished colleague from the Senate, I want to add to what the gentleman from Illinois has said. There is one respect in which I think the Senate rules may be preferable to the House rules, and there aren't very many such respects, in my judgment. [Laughter.] The Senate frequently has more than one committee, I believe, reviewing legislation. I don't know whether it is by double referral or how. I think it is very helpful, as the gentleman from Illinois said, where the matter impinges on jurisdiction of both committees, to have a joint hearing of this kind.

I don't know how you work it over there, but you do so many things; I don't understand any of it.

Senator O'MAHONEY. Well, we work under compulsion, may I say, Congressman Keating. The concentration of economic power in the country has been so great that it brings about a condition which directly affects almost every class of the population, and many factors of the economy at the same time. So that the divisions of jurisdiction made in the Senate and House committees do not afford an opportunity always for a review by all of the members of committees who are

interested in the problem to hold the hearings. Therefore, a joint hearing is always a step in progress, in my judgment. That is the way we look at it.

Mr. KEATING. You do it by joint hearings?

Senator O'MAHONEY. Yes. Frequently.

Cochairman CELLER. As cochairman, I want to place in the record all the bills I mentioned in my opening statement.

(H. R. 5282, 5283, 5454, 7038, 7319, 7764, 7796, are as follows:)

[H. R. 5282, 85th Cong., 1st sess.]

A BILL To amend the antitrust laws by vesting in the Federal Trade Commission jurisdiction to prevent monopolistic acts or practices and other unlawful restraints in commerce by certain persons engaged in commerce in meat and meat products, and for other purposes

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That (a) subsection (6) of section 5 (a) of the Federal Trade Commission Act, as amended (66 Stat. 632; 15 U. S. C. 45 (a) (6)), is amended to read as follows:

'(6) The Commission is hereby empowered and directed to prevent persons, partnerships, or corporations, except banks, common carriers subject to the Acts to regulate commerce, and air carriers and foreign air carriers subject to the Civil Aeronautics Act of 1938 from using unfair methods of competition in commerce and unfair or deceptive acts or practices in commerce."

(b) Section 2 (a) of the Packers and Stockyards Act, 1921, as amended (42 Stat. 159, as amended; 7 U. S. C. 182) is amended by striking out—

(1) from the title thereof, the words "meat food products", and the words "livestock products";

(2) paragraph (3) thereof;

(3) paragraph (5) thereof.

(c) Section 2 (b) of such Act (7 U. S. C. 183) is amended by striking out the words "and meat-packing industries, whereby livestock, meats, meat food products, livestock products, dairy products, poultry, poultry products, or eggs," and inserting in lieu thereof the words "industry, and whereby livestock,”.

(d) Title II of such Act (7 U. S. C. 191–195) is repealed.

(e) Sections 401 and 403 of such Act (7 U. S. C. 221, 223) are amended by striking out, in each such section wherever they appear, the word "packer", and the words "Packer or any live poultry dealer or handler,".

(f) Section 502 (a) of such Act (7 U. S. C. 218a (a)) is amended by striking out the words "packers as defined in title II of said Act and railroads", and inserting in lieu thereof the words "a railroad".

(g) Section 502 (b) of such Act (7 U. S. C. 218a (b)) is amended by inserting, immediately after the words "this Act", the words "or the Federal Trade Commission Act."

[H. R. 5283, 85th Cong., 1st sess.]

"(6) The Commission is hereby empowered and directed to prevent persons, partnerships, or corporations, except banks, common carriers subject to the Acts to regulate commerce, and air carriers and foreign air carriers subject to the Civil Aeronautics Act of 1938 from using unfair methods of competition in commerce and unfair or deceptive acts or practices in commerce."

(b) Section 2 (a) of the Packers and Stockyards Act, 1921, as amended (42 Stat. 159, as amended; 7 U. S. C. 182) is amended by striking out

(1) from the title thereof, the words "meat food products", and the words "livestock products";

(2) paragraph (3) thereof;
(3) paragraph (5) thereof.

(d) Title II of such Act (7 U. S. C. 191-195) is repealed.

(f) Section 502 (a) of such Act (7 U. S. C. 218a (a)) is amended by striking out the words "packers as defined in title II of said Act and railroads”, and inserting in lieu thereof the words "a railroad".

(g) Section 502 (b) of such Act (7 U. S. C. 218a (b)) is amended by inserting, immediately after the words "this Act", the words "or the Federal Trade Commission Act."

[H. R. 5454, 85th Cong., 1st sess.]

(b) Section 2 (a) of the Packers and Stockyards Act, 1921, as amended (42 Stat. 159, as amended; 7 U. S. C. 182), is amended by striking out—

(1) from the title thereof, the words "meat food products", and the words "livestock products";

(2) paragraph (3) thereof;
(3) paragraph (5) thereof.

(e) Sections 401 and 403 of such Act (7 U. S. C. 221, 223) are amended by striking out, in each such section wherever they appear, the word “packer”, and the words "Packer or any live poultry dealer or handler,".

(g) Section 502 (b) of such Act (7 U. S. C. 218a (b)) is amended by inserting, immediately after the words "this Act", the words "or the Federal Trade Commission Act."

[H. R. 7038, 85th Cong., 1st sess.]

"(6) The Commission is hereby empowered and directed to prevent persons, partnerships, or corporations, except banks, common carriers subject to the Acts to regulate commerce, and air carriers and foreign air carriers subject to the Civil Aeronautics Act of 1938, from using unfair methods of competition in commerce and unfair or deceptive acts or practices in commerce."

(b) Section 2 (a) of the Packers and Stockyards Act, 1921, as amended (42 Stat. 159, as amended; 7 U. S. C. 182), is amended by striking out:

(1) from the title thereof, the words "meat food products", and the words "livestock products";

(3) paragraph (5) thereof;

(g) Section 502 (b) of such Act (7 U. S. C. 218a (b)) is amended by inserting, immediately after the words "this Act", the words "or the Federal Trade Commission Act."

[H. R. 7319, 85th Cong., 1st sess.]

A BILL To amend the Clayton and other antitrust Acts to prevent monopolistic practices, and for other purposes

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the first paragraph of section 11 of the Clayton Act, as amended (15 U. S. C. 21), is amended to read as follows:

"That authority to enforce compliance with sections 2, 3, 5, and 8 of this Act by the persons respectively subject thereto is hereby vested in the Interstate Commerce Commission where applicable to common carriers subject to the Interstate Commerce Act, as amended, in the Federal Communications Commission where applicable to common carriers engaged in wire or radio communication or radio transmission of energy; in the Civil Aeronautics Board where applicable to air carriers and foreign air carriers subject to the Civil Aeronautics Act of 1938; in the Federal Reserve Board where applicable to banks, banking associations, and trust companies; and in the Federal Trade Commission where applicable to all other character of commerce, including persons, partners, or corporations heretofore subject to title II of the Packers and Stockyards Act of 1921, as amended, to be exercised as follows:"

SEC. 2. Subsection (6) of section 5 (a) of the Federal Trade Commission Act, as amended (66 Stat. 632; 15 U. S. C. 45 (a) (6)), is amended to read as follows: "(6) The Commission is hereby empowered and directed to prevent persons, partnerships, or corporations, except banks, common carriers subject to the Acts to regulate commerce, air carriers, and foreign air carriers subject to the Civil Aeronautics Act of 1938, and to prevent persons, partnerships, or corporations subject to the Packers and Stockyards Act of 1921, as amended, except as provided in title III and section 406 (b) of said Act, from using unfair methods of competition in commerce and unfair or deceptive acts or practices in commerce." SEC. 3. Section 2 (a) of the Packers and Stockyards Act of 1921, as amended (42 Stat. 159, as amended; 7 U. S. C. 182), is amended by striking out: (a) from the title thereof, the words "meat food products", and the words "livestock products";

(b) paragraph (3) thereof;

SEC. 4. Section 2 (b) of such Act (7 U. S. C. 183) is amended by striking out the words "and meat-packing industries, whereby livestock, meats, meat food products, livestock products, dairy products, poultry, poultry products, or eggs, and inserting in lieu thereof the words "industry, and whereby livestock”.

SEC. 5. Title II of the Packers and Stockyards Act of 1921, as amended (7 U. S. C. 191-195) is repealed.

SEC. 6. Sections 401 and 403 of such Act (7 U. S. C. 221, 223) are amended by striking out, in each such section wherever they appear, the word "packer”, and the words "packer or any live poultry dealer or handler,".

SEC. 7. Section 502 (a) of such Act (7 U. S. C. 218a (a)) is amended by striking out the words "packers as defined in title II of said Act and railroads", and inserting in lieu thereof the words "a railroad".

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Meatpackers: Joint Hearings Before the Subcommittees of the Committee on the ...