The Minneapolis journal., 1902-06-30
IN BANKERS ARE BACK BIG PACKING DEAL
Swift and Armour Arming for a
Finish Fight.
ABSORBING SMALLER CONCERNS
Swift to Buy the AnElo-American
and Armour the G. III. Ham
mOnd Company.

Special to The journal.
Chicago, June 30.-The rivalry between
the Swift and Armour packing companies
promises, according to an official of one
of the companies, to result in the absorp-
tion of practically all the smaller plants
in the country. That this rivalry, rather
than plans for general combine, inspired
the recent deals was state recently. Yes
terday brought more evidence of the
aims of the two big firms. A packing
house officer says: ..:..s- .
The Swift and Armour interests are far
apart. They have tried in the past to have
agreements. but have broken them. They
have come near constellation but have sep
arated and continued the fight Now they
have reached the point where they must
watch each other as never before. for they
cannot expand without meeting tremendous
rivalry and competition. I don't say that the
Anglo American has been purchased. and /
don't say that the Armour company has
opened negotiations for the G. IL Hammond
company, but If one is true the other is true
They have come to the parting of the ways,
and look sto all the minor firms under
the control of one or the other. 49,
The present intensified rivalry, 1t Is
said, is an outgrowth of the critical con-
dition of the cattle trade and the uncer-
tainty of supply. Rumors of the struggle
first came from Boston, where number
company have been restive. Then
came reports Of the consolidation of the
Swift and Fowler interests in the Anglo
American company, and following this the
report that, to counteract the purchase,
the Armour company was negotiating
with the G. H. Hammond company for a
controlling interest in that business.
Coupled with these are complaints from
! the smaller firms that, owing to the strNg-
gle and It's effect on prices, they have
been unable to clear the margins the con-
dttion of trade warrants. ...
The two great firms, which, with Nell
son-Morris company, S. & S. and the Cud-
ahy company, control the packing trades,
have the country SO divided that there is
little chance for expansion except by alb
sorption Of other interests. Buyers and
agents for the two big firms have been
watching each other of late as never be-
! fore, it is declared. and members of out
| side companies say all contracts between
| the two have been declared off.
The stock market has been showing
signs of something unusual and the price
! OF, Swift & CO. has been steadily rising.
Large blocks of stock have been pur-
chased, especially in the east, and from
there came the first news of the consoli-
dation of Anglo-American and Swift This
gave to Swift control of a large foreign
trade, and a new dressed beet plant val
ued at between 100000 and $1,000, 900.
The deal was consistently denied by men,
| bers of the firm, but later practically ac-
knowledged.
The financial interests involved in this
deal run high. Swift & Co. are capital
lied for $25,o00,000, paid per cent
dividend last year, amounting to s1.4o0,-
600. and ended with a surplus Of sa,74e. 900.
The Anglo-American company is believed
to be capitalized for. s5,0Oo,00O and, &C.
cording to its last report (1sse) had a
profit Of $402,245 for that year, and a
surplus of 1895, 1895.
| The Armour company has a capital OF
SIC, 900. The Hammond company has
begun work on a 100000 plant in the
southwest corner of the yards, and the
frame work is up IN two of it's largest
structures It's capital stock is 81, 800 900,
with $4,000, 900 authorized, so the Armour
Hammond combination would have capt.
talization Of more than $4,000 900. The
new company would have plants in all