The Chattanooga news. [volume] (Chattanooga, Tenn.) 1891-1939, 1919-12-19
Atty.-Gen. Palmer Confident
of Material Drop in
Costs. &
81 FIRMS AFFEcTEL
Reorganization Of Gigantic
|, Industry Of Over Billion
Capital to Result.

.
Washington. Dec. 19.-Atty.-G Gen
Palmer and department of justice off,
ticlals are today making the final arr
rangements for the court action which
will lead to the dissolution OF the unre-
,ated industries OF the big five" pack,
ers. a4f
Under the terms OF the agreement en-
tered into between the attorney genera
and the packers, permanent injunction
decree will be accepted by the packers,
which will confine their activities 10
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. stock yards railroads and terrni-
mails. and to disassociate themselves
with the retail meat business and all
unrelated lines"
The attorney general Is confident thE.
the arrangement which has been mad
will aid materially in the fight which b. =
| is waging to lower the cost OF living.
Affects Eighty seven Corporations.
Reorganization Of gigantic industry,
| Involving capital OF more than ont
| billion dollars and affecting eighty
seven corporations, will result from the
| compromise reached by the govern
nent and the five big packing conf
| panies.
| Under the agreement announced last
| night and which will be made binding
| by an injunction decree. the business
| of Swift & Co., Armour q Co., Morrt&
q Co. Wilson & Co. and. the Cudahy
| company viii be restricted to meats
and provisions. Two years are given
| to comply with the decree. ~
| The packers agreed to forever dis
associate themselves with all lines uu-
related to the meat packing industry.
which means they will exercise ~
| further control over the marketing aQf
| live stock or the retailing of meat
products and will quit the field "a
| meat substitutes. except eggs. butters
| cheese and poultry. s
Furthermore the packers agreed TO
submit to the jurisdiction Of the federal
| courts and under the decree they Will
be prohibited from maintaining any
combination with each other or at
tempting to monopolze any food pro-
ducts In the United states. .7s
4 No Control OF Foods.
i The decree. Attorney General Palmer
said In a statement thereon. 'estabi1
ishes the principle that no group of
men. no matter how powerful. can ever
/ attempt to control the food table OF the
American people,"
4 The compromise followed the goverr~
ment'a antitrust action against the
packers. started last summer at the
4
OF the campaign against the high cost
i of living The fight against the pack
ers. however. had been a long drawn
out affair. extending over period o.
years, involving thousands OF dollars1in
investigations and cansing bitter feei-
ing In politics and business.
Despite the decree. the bills propos-
ing government regulation OF the pack
ing industry, now before the sennk1
! agriculture committee, will not p
!, ahandQnsh: accordinS e their ~ nf3s
Il Senator'S Kenyof' 9hd Keudrick. \. "
4 Arpuses Speculation.
Chicago, Dec. lg.-- Probable tresId n
prices for food products formerly hand.
led hy the packers during the two-yeal
period In which the Swift. Armour
Morris. Wilson and Cudahy compant0i
must disassociate themselves from 81
other than the meat and provision bus
inesses. today was the subject OF gen.
eral speculation. ..lr
Following announcement OF the COM
promise agreement resulting from IN
stitution of antitrust actions agains
the eghty-sev corporations ans
fortynine individuals making up tn
1--WE hig'' packers, varying opinions 81
to T. probable effect on the cost Q
livicr ere expressed.
J ''The price of meat is within tn
! control of the people themselves" sais
7 Attorney General Palmer in announc
! ing the agreement between the packer
and the department of justice.
: Packers Attitude. s@
{. "Time alone win tell whether ou
; activities in the lines to be droppe.
3 were in the interest of the public,
said Edward Morris of Morris q Co. i
A step with public opinion. an effor
to aid in allaying unrest and an inten
ton 10 remove cause FOR friction wit
the government rather than an admis
| sion of any guilt was the way state
l ments OF representatives OF the packer
referred to the compromise. ~
The grand jury inquiry into the oper
ations OF the packers. begun ut Presi
.. dent Wilson's direction as part OF IN
:. fight on the high cost OF living re
!. Gently. was halted by adjournment afte
:. months investigation.