Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-10-21
Special Dispatch to the Star.

Special Dispatch to the Star.
NEW YORK. October 2o-waIl street
bankers were authoritativeIy advised todav
that an English company is being organ-
lied to take over all the packing interests
Of the United States.
Inquiry at the Offices of firms which
| might undertake the financing of such ~
gigantic corporation. whose capital readily
would run t. $500 oco,0O0, ELECTS little In.
formation
II Was ascertained however. nv die.
patches coming from packing bouse tr.e-.
es's IN chicago that the protracted visit
OF Sir Thomas Upton in that city was Of
a significance more than social.
several years ago the interests of T. J.
Upton & Co. were taken over by other
packing concerns, and the former head OF
the Company. having retained securities
represented by the transfer, must be con-
suited in any transaction.
Private messages from Chicago saw that
instead Of the r,lmored sale of the Arn,o,,
interests to Swifts. gossip of which was
denied several weeks ago. the Armour In.
terests will dominate the whole company
and ]. Ogden Armour will be the chief.
The Projected Merger.
CHICAGO. October 2O.-News of the pro-
jected merger OF all the packing companies
in the United States came as a surprise to
LaSalle street, though there has been an
undercurrent Of belief for several week.,
that deal Of big import was pending be-
cause of the activity OF the stocks, swift's
In particular. The street tried to explain
the heavy buying of all the stock that was
offered in the market. and was content
to believe that a pool was operating in
the shares for solely speculative purposes,
and conferences have been held here at
frequent intervals recently at which the chief
packing house representatives have been
present, and 1t Is assumed in LaSalle street
that the negotiations under way look to q
purchase of minor companies which here
tofore have not been considered part of the
Big Six"
One to Conduct
The significance OF such a movement 10
that one corporation will conduct the pack.
ing industry of the country, much as tho
United States Steel Corporation guides that
in iron and steel.
The volume of business handled by the
six leading concerns runs close to $3.50.
100000 a year, for that of the first two
runs above 500 coo a year each. The
capital necessary to swing the business in
all likelihood is very close to the $780,
100000 suggested the capital OF the
new company. for aside from the nominal
~
both companies are very heavy borrowers
Of money at all times in the open market.
A national merger of all packing con-
Germs has been a logical economical possi-
bility and even probability for several
years. In 1902 the United States Packing
Company was all but organized, with a
prospective capital OF $500, OoO, 0CO, for Just
such a purpose as that outlined now
At the time careful negotiations were
conducted for considerable period for the
purpose of getting into line all the minor
concerns outside the big six" Kuhn,
Loeb & Co. were to have financed the
project, and would have done so had not a
tight money period of 1902 and 1903 caused
such stock market disturbances that the
negotiations were abandoned
Augmenting this an obstacle was the
series Of federal prosecutions of the So
called beef trust" by the federal govern
ment.
When the deal fell through there was the
necessity of taking care of the several con-
Germs that actually had BEEN bought up to
put into the merger. Among others the
Anglo-Amerfcan. the Omaha Packing. the
St. Louis Beef and the Fowler Packing
companies had been taken over by inter-
ests closely associated and generally known
as the Armours Swifts and MorriseS
Do They DareP
Then to make these companies carry
themselves after the contemplated beef
merger was called OF. the National Pack
ing Company was formed with a capital OF
$1S.oooooo to absorb thsm. This company