The Washington times., 1919-12-19
BIG ) TO DROP SIDE
LINES IN z YEARS
Arrangements Under Way for
Dissolution of Unrelated
Packing Industries.

Attorney General Palmer and Of
icials Of the Department of Justice
are today making the final arrange
ments for the court action which will
lead to the dissolution of the un-
related industries Of the Big Five
packers.
Under the terms of the agreement
entered into between the Attorney
General and the packers, a perma-
nent injunction decree will be ac-
cepted by the packers, which will
confine their activities to beef and
by-products, eggs, butter, poultry,
cheese and condensed milk
Within two years the packers agree
to sell their holdings in public. stock
yards, stockyard railroads and termi-
nails, and to disassociate themselves
with the retail meat business and all
unrelated lines"
The Attorney General is confident
the arrangement which has been
made will aid materially in the fight
which he is waging to lower the cost
of living. In this contention he has
the support of Senators Kenyon and
Kendrick, who have been most ardent
enemies of the packers and who are
now attempting to secure legislation
which would subject the packers to
regulation by law.
Senator Kenyon and Senator Ken
drick have both announced that they
do not intend to drop their efforts to
secure regulatory legislation, but will
ask that Congress pass such legisla-
tion as a measure of permanent pro-
lection against any future attempts
at a monopoly of the food products
industry.
Attorney General Palmer's agree
ment with the Big Five packers was
under close scrutiny in Congress to-
day.
Palmer's detailed statement con-
corning the terms of the agreement
under which the packers are to get
out OF the grocery business and re-
Iinquish control of stock yards was
carefully studied.
Palmer may be asked to appear be-
fore the Senate Agriculture Commit
tee to explain more fully how the
agreement was arrived at. and what
sort OF promises, IL any, he made to
the packers in return for their ac-
ceptance Of his terms.
Senator Borah of Idaho, after con-
ference with other Senators inter
ested In pending legislation for Gov
ernment control of the packing in
dustry, may introduce q resolution
asking Palmer to submit a more de-
tailed statement to Congress.
Position Taken BY Palmer.
The position OF the Attorney Cen
eral is that he has the alternative
of accepting a compromise with the
packers whereby they released their
control of certain subsidiaries and
agreed to Federal supervision of their
meat and provision business, or of
facing a several years battle in Fed
eral courts in prosecuting the anti
trust actions against the packers.
A long fight in court. il was point
ed out would not tend to bring down
prices whereas the separation of the
packers from unrelated subsidiar ries
and their consequent passing into
control OF independents would mean
competition and lowering of prices.
Supervision by the Federal court
would prevent a "price-boostingn mo-
nopoly being formed.
Faced by these alternatives IL was
said. Palmer chose the one which he
believed would be more likely to re-
duce the high cost OF living, even
though II gave the packers a chance
to escape prosecution.
Thirty-five suits to dissolve alleged
trusts, now pending in the United
states courts, may undergo the same
treatment as that given the pack
ers, 1t was indicated here today.
Though Attorney General Palmer
refused to state his plans In connec-
ton with these suits, it is believed
that he would not be averse to ac-