The Idaho recorder. [volume] (Salmon City, Idaho) 1886-1927, 1920-09-24
'ST0CkYARD SALE
PLAN REJECTED
PROPOSED SCHEME WOULD MAKE
TIGHTER PACKERS HOLD ON
INDUSTRY, DECLARED
TRADE COMMISSION REPORTS
New Plan Provides for Packers Hold
inc up to 40 Per Cent Of Stock in
Holding Company, Which Ex-
oeeds Present Share

Washington, Sept. 18.-Rejection by
The department Of justice OF the plan
Of the "big five" packers for the dis
position Of their ownership in stock
yards was recommended yesterday by
the federal trade commission in a spe-
cial report to Attorney General Palm
er. The packers plan, providing for
the sale Of the stockyards in Is cities
to F. II. Prince & Co. of Boston, and
the formation Of holding company
for these yards, was attacked by the
commission on the grounds that 1t
would permit increased rather than
diminished control of the yards by the
packers.
The plan was drawn up by the
packers after the filing of consent
decree In federal court here, which
disposed Of antitrust litigation start
ed by the government against the
packers at Chicago.
"In brief" the commissions report
to the attorney general said, though
the decree provides for a total divest-
ment of stock interests by the defend
ants, this plan leaves the way open
for them and the non defendant pack
er interests temporarily, and for the
On-defendant packer interests perma-
nently to acquire absolute control Of
holding company that will own Is
Of the principal stockyards Of the
country, whereas now they have ma
jority control Of but IL Of the 15."
The commission made Its report on
Its own initiative under authority of
the act creating It and providing that
1t may Investigate the manner in which
any final decree In an antitrust case
Is being carried out. The object of
the government litigation, the CON-
mission declared, would not be &C.
complished by the packers plan. The
10 stOckyards included In the plan
handle % per cent Of the livestock re-
ceived at all yards in the country,
the commission report said
Amalgamation Of the yards through
this promotion Of Mr.. Prince, the com
mittee added, mot only Will be a great
err monopolization of the stockyards
business than now exists. but it con-
tains elements to strengthen the pack
Ing house monopoly until such time as
the defendants are Invested of their
stock In the holding company by or
der 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 indl-
cate that this interest Is to be other
than permanent. At present the pack
er defendants show an ownership in
the yards that amounts to 80 per cent
Of the total voting stock outstanding.
The plan permits the defendants to
hold up to 40 per cent of the holding
stock.
Furthermore. some of the family es-
tates, trust funds or members Of the
five packer families who are not de-
PENDANTS In this case are, neverthe-
less, large holders In these stockyards.
The plan makes no provision for the
Investment Of the nondefendant packer
interests. nor to prevent further acaui-
sitiQn to the complete control or total
ownership Of the stockyards holding
by the non defendant packer
interests"