Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-10-26
AB|G FIVE OFFER
| DISSOLUTION PLAN
Meat Packers File Proposal for
Disposing Of Stock Yard
interests

washington. Oct. 26.--Swift & Co.
and Armour & Co filed today in the
DistrictofC Columbia supreme court new
plan for disposition of their interest IN
stock yards, terminal railroads and
market newspapers. 1t was understood
that Wilson & Co. would adhere to
this plan. but Morris & Co. and the
Cudshy Co. were not a party to 1t;
Justice Stafford set November y as
the final date for the Department Of
Justice to file objections TO the new
proposal. but Isidor Kressel. special as.
sistant to the attorney General. inti-
mated that the department would file no
objectiord II the courts order. putting
the plan into effect. provided that the
proposal did not conflict with existing
legislation.
Morris & Co. and the Cudahy Co.
were given until November 10 to neg"
tiate for their inclusion in the new plan
or to find some other purchaser for the
stock yard interests OF these concerns
acceptable TO the court. .,
they had not seen the new nlan and had
been negotiating with +. II. Prince 4
CO.. Boston bankers. on the basis OF the
original rroposal which was opposed by
the government
Under the new plan. +. II. Prince
A Co. fsoston bankers. will organize
the United Stock Yards. Inc, under the
laws Of the state Of Maine. to acquire
part. or all. Of the shares of the stock
ward and market newspaper companies
from which the two big packers must
sepa rate themselves under the consent
decree recently filed in the court by
agreement with the Department OF
Justice. go,
The United Stock Yards. Inc, will
be capitalized by issues Of first pre-
ferred shares and common shares Of
stock and by notes. Livestock growers
and commission men are to be given
preferenee in the purchase Of the shaers
of the new company. but the common
shares alone will have voting power.
Under the plan. the common shares
twill be issued to or transferred to- hve
voting trustees tc be appointed by the
Supreme Court of the District OF Co
lumbia. to hold under voting trust for
~ 'As full conversation hereunder "
saws the agreement, "and for its guar :
auty Of the notes Of the holding com =
pany and for its services in financing
additions and betterments from time to
time during the said period. the United
Stock Yards. Inc, will pay or cause
to be paid to the Chicago Stock Yards
Co. $500. 900 per annum. The said
leases or operating agreements shall
provide that there shall be no restraint
Of free and open competition in respect
to the purchase and sale of livestock in
the yards. or any of them, nor any
combination in restraint of trade. ant
that no packer shall exercise directly
or indirectly any control or influence
over the operation of said yards or any
Of them
The voting trustees are given the
right by the agreement "to correct any
practice which in their opinion are in
consistent with the terms OF the leases
and operating agreements either OF
their own initiative or on the complaint
Of q producer or shipper"
To assist in financing the United
Stock Yards. Inc, and in acquiring
the shares of the stockyard companies
=. II. Prince 4 Co. propose to organ
ize q syndicate with paidin capita
Of not less than 81 900 900, which viii
acquire all Of the common stock of tn
United Stock Yards. Inc, and sucl
amount Of first preferred stock. secOnt
preferred stock and notes as may b,
necessary tn carry out the plan, pawn.
therefor by the transfer of shares Of tn,
companies TO be acquired. The syndi
hsate will agree to provide for perioc
jhf two years cash for all necessar!
working capital of the United Stool
Yards, Inc.
The plan is a substitute for that filet
with the court some weeks ago unde
which r. II. Prince & Co. were t.
have organized holding company Il
take over the yards. The Department
Of Justice opposed that plan and Swif
& Co. and Armour & Co. finally de
cided to present a new one, subject L
the approval of the government.