The Topeka state journal., 1919-12-18
Can Be No Compromise With
Trust Attitude Taken.
Regulation Bills VIII Be Pushed
Despite Dissolution.
ASKED TO EXPLAIN
Did Packers Come to Agreement
to Avoid Suits?
Negotiations With Government
in Progress for Some Time.

Washington, Dec. 1S.-Formal an
nouncement that the "big five" pack
ers have agreed to dissolve their con-
troll of industries unrelated to the
meat business will be made this after
noon by the department of justice.
according to information from Attor-
ney General Palmeris office today.
While this was regarded by many
officials as a victory for the govern
rnent in its attack on the high cost
or living, some congressman believed
that if the packers had entered into
agreement with Palmer to discontinue
their side lines in return for the anti
trust suits against them being called
or such action would constitute a
dangerous compromise between the
government and the alleged trust
/ Senators in charge of the principal
packer regulation bills declared they
will go ahead with them regardless
of the reports that the big. five are
to abandon their side lines.
The Kenyon and Kendrick bills both
aim at separation of packers from
stockyards. control of refrigerator cars
is alleged, they have obtained ad-
vantages over smaller independent
packers.
Senator Gronna, chairman of the
senate agriculture committee. de-
clared the committee is going ahead
about January 5 with the packer bill
without regard to any agreement the
big five" may make with Palmer to
withdraw from side lines.
A resolution asking Attorney Gen
eral Palmer whether he has made an
agreement with the big packers to
drop further prosecutions provided
i they abandon their control of allied
products will be. introduced in con-
gress shortly. it was understood today.
Negotiations for Some Time.
Negotiations between the meat
packers and the government. it
became known today. have been
going on for some time with the
object of compromising the antitrust
prosecution which is still in the stage
of a grand jury investigation. 1t is
understood that one of the plans con-
/ sidered is the withdrawal of the pack
ers from side lines, such as the whole
sale grocery business which various
| reports of the federal trade commits
sion have charged them with seeking
| to dominate.
The grand jury proceedings, begun
in Chicago, was interrupted by deci-
| sion of the governments attorneys
and for a time there was a prospect
of it's being transferred to New York.
Meanwhile, negotiations were begun at
whose instance it has not been dis
closed which it was planned would re-
move some of the causes of the gov
ernment'S complaint. 1t is understood
that the packers represented that they
already had begun Withdrawing from
the grocery business and were willing
to carry the plan still further.
| Plans also have been under consid-
, GRAFTON by some of the packers for
| the partition cf their corporations into
separate entities somewhat after the
on
tobacco companies accepted after the
supreme courts dissolution DEGREES.
Attorneys for the big five packers were
| in conference again today with off
cials of the department of justice.
| Will Partition Companies.
| Chicago, Dec. 1S.-'Big five" Chi
| cago packers, in anticipation of a gov
ernment decree ordering dissolution
/ of lines of business not directly con-
cerned with the meat industry, have
| been breaking up some of these lines
| during the last year, it was announced
4 today.
Altho representatives of the com
panies affected refused to confirm
! Washington reports that an agree
ment with Attorney General Palmer
/ had been reached to dissolve all lines
| except meat. poultry. butter, eggs and
| cheese, they indicated such an an
nouncement might be expected.
''It is up to Palmer to make the an
| nouncement," Swift & Company
stated.
| In an official statement, Swift &
Company said:
| "Referring to the decree in question.
Swift & Company have already made
a dissolution of their leather business
as well as their ownership in Libby.
Mcneil & Libby, and also their pack
ing house business in South America
and Australia. Something of this
kind has been anticipated for some
| time.
! "Our earnings will not be unfavor-
ably affected as the lines prohibited
have not been especially profitable 1t
will give us more available cash cap
ital for the real meat business and its
allied products"