Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-09-28
PACKERS SCHEME
Of SELLING YARDS
OBJECTED TOBY us.
Department Of Justice Says
Approval Would Sanction
Sherman Law Violation.

Objections to the entire plan sug-
gested by the big five" Chicago meat
, packers for disposition of their stock
yard interests were filed by the De-
partment of Justice today in the Dis
trict of Columbia Supreme Court
To sanction the proposal of the
packers to dispose of their stockyard
interests to a holding company to be
formed by F. H. Prince & Co. of Bos-
ton would mean a sanctioning of a
violation of the Sherman and other
antitrust laws, Attorney General
Palmer declared in a formal state-
ment.
The grounds for the governments
objections were set forth in the petit
tion as follows:
"A proposed holding company to
! take over controlling interests in sub
stantially all of the stockyards in the
| United States, together with the ter
mlnal railways. which are in turn
owned or controlled by the stock
yards, would constitute in itself a
combination in violation of the Sher-
man and other antitrust laws II
this court should sanction the forma-
tion OF such a company with the pur-
poses and organized in the fashion
outlined in the so-called plan, it would
the antitrust laws"
Restraint Is Feared.
The petition also argued that the
formation of the proposed holding
company would place in the hands of
those controlling such a company
means of restraint upon the buying
and selling of live stock and dressed
meats"
1t charged also that the proposed
holding company would be able to
manipulate sales and traffic condi-
tions and the improvements and IA
cilities at the respective markets" in
a manner as to retard the growth of
and cripple packing houses located at
other yards.
Objections to F. H. Prince &, Co. as
a purchaser also were included in the
petition, which declared that the
Prince interests. with Armour & Co.
already practically controlled the Chi
cago stockyards.
I'm 1911 F. H. Prince & Company eff
fected the formation of the present Chi
cago Stockyards Company of Maine"
the petition states. This company,
through its control of subsidiaries, owns
and controls the Union Stockyards Com
pany of Chicago. The method adopted
in the formation of such company. the
employment of devices such as the use
of bearer warrants and of dummy Of
ficers directors and stockholders, is cal
culated to prevent the government from
ascertaining the identity of the persons
who owned the controlling interest in
the Chicago yards.
1.-THE relations of F. H Prince & Com
pany with ]. Ogden Armour and Armour
& Company arc such as to make the
petitioner unwilling to permit Prince
& Company to take over the de-
PENDANTS interest in the stockyards or
to have charge of the formation of any
companies organized for that purpose
The bona fides of the whole plan is
questionable in view of the activity of
Prince & Company in the manipula-
ton of the Chicago yards.
No Acceptance Filed.
The departments petition also said
there was on file no acceptance by the
packers of the offer of Prince & Co.
to take over their holdings. which
are estimated to involve about $40
00O.0 600. 1t also was asserted that
Prince & Co. was not obligated to
carry out the provisions of the plan.
inasmuch as the options provide
withdraw the same at any time, and
this even after the court shall have
approved it.
objection also was entered by the
government to the indefinite nature of
securities to be given the packing
companies by Prince & Co. The
governments petition said that there
was available in the offer no method
by which it could ascertain what sort
Of securities would be sold the public
or what provision would be made for
management of the properties should
they be turned over to the Boston
bankers.