New-York tribune., 1920-09-18
Trade Board
Opposes Sale
OF Stockyards
Federal Commission Saws
Acquisition of Plants by
+. III. Prince & Co. Will
Only Increase Monopoly
Urges Veto by Palmer
Says Big Five Can Control
Fifteen Yards Instead of
Eleven by Their Plan

WASHINGTON, Sept. 17.-Rej lection
by the Department of Justice of the
plan of the "Big Five" packers for the
disposition of their ownership in stock
yards was recommended to-day the
Federal Trade Commits ssion in a special
report to Attorney General Palmer.
The packers plan, providing for the
sale of the stochyarls in fifteen cities
to r. II. Prince & Co., of Boston, and
the formation of q holding company
for these yards, was attacked by the
commission on the grounds that it
would increase rather than diminish
control of the yards by the packers.
The plan was wrawn up by the pack
ers after the filing of consent decree
in Federal Court here, which disposed
OF antitrust litigation started by the
government against the packers at
Chicago.
Can Acquire Absolute Control
''In brief" the commissions report
tothe Attorney General said, "though
the decree provides for total dlvest-
ment of stock interest by the dcfen-
for them and the non-defcndant
packer interests temporarily, and for
the non-defcndant packer interests
elmanently, to acquire absolute con-
troll of a holding company that will
own fifteen of the principal stockyards
Of the country, whereas now they have
majority control of but eleven of the
fifteen"
The commission made its report on
its own initiative under authority Of
the act creating it and providing that
it may investigate the manner in which
any final decree in an antitrust case
government litigation, the commits ssion
declared would not be accomplished
by the packers plan.
The fifteen stockyards included in
the plan handle 13 per cent of the live
stock received at all yards in the coun-
try, the commission reported
"The anna! !gamation Of the yards
through this promotion Of Mr.. Prince"
the commission added, mot only will
be greater monopoization of the
stockyards business than now exists.
but it contains elements to strengthen
the packing house monopoly until such
time as the defendants are divested Of
their stock in the holding company by
order of the court.
"The offers Of the contracting parties
embodied in the plan provide for the
retention of an interest less than so
per cent in the holding company. but
in no way Indicate that this interest is
to be other than permanent.
AT present tine packer defendants
show an ownership in these yards that
amounts to 38 pcr cent of the total
voting stock outstanding. The plan
permits the defendants to hold up to
40 per cent of the holding company's
stock
Furthermore, some of the family
estates. trust funds or members of the
five packer families VINO are not de-
PENDANTS in this case are nevertheless
large holders in these stock yards.
Thc plan makes no provision for the
Investment Of the non-d defendant pack
er interests, nor oprevent further
acquisition up to the complete control
or total ownership of the stock yards
holding company by the non-defendant
packer interests. The non-dcfcndant
packer interests own II per cent Of
the voting stock Of the fifteen yards, in
addition to the 3S per cent owned by
the defendant packers"