Albuquerque morning journal., 1922-12-13
NO ACTION NOW
BY i. s. ON THE
PACKER MERGER
Decision Has Been Reached
by Secretary Wallace
After Long Study of the
Packers Proposal

Packers Proposal
Washington, Dec. 1.-THE gov
ernment will take no action at this
| time on the proposed acquisition
| or Norris and company physical
assets by Armour and company of
Chicago, it was formally announced
today by the secretary of agricul-
ture. This decision was reached by
Secretary Walli.ce after long study
Of the proposal and conferences
with President Harding and Attor-
ney General DauCherty. There was
no indication In Washington whe-
ther Armour and company would
proceed with their negotiation for
the Morris establishment which is
competitor and one of the "Big
Five packing establishments.
No Occasion for Action
Secretary Wallace declared there
appeared to be no occasion for ac-
tton at this time under the packers
and stock yards act in connection
with the proposal informally laid
before him by ]. Ogden Armour.
Mr.. Wallace also transmitted this
information and additional data
on the proposal to the senate in
response to a resolution of Senator
La Toilette, publican, Of Wiscon-
sin.
In a formal announcement, Mr..
Wallace, declared there was no
thing in the packer and stockyards
act which specifically prohibits the
purchase by one packer of the
physical assets of another. An
opinion by Attorney General
Daugherty made public with the
announcement, said the act is es-
sentially a regulatory one and that
the duties and powers OF the Sec
retary OF agriculture hereunder
are to regulate the industry.
The attorney general declared
neither the act itself nor the reg
ulation provided for therein con-
templates or requires that the sec
retary of agriculture should advise
the industry in regard to such 4
transaction as proposed by Mr.. Ar
mour in advance OF its consumma-
ton. MIR. Daugherty said tho act
vested Mr.. Wallace with broad
powers of inquiry and he was of
the opinion Mr.. Wallace might
make such inquiry.
The language OF the packers
and stock yards act said Mr..
Daugherty, "makes it clear to me
that the act does not require you
to take any formal action unless
YOU have reason to believe that the
law has been violated or is being
violated. To constitute q violation
of the law within the meaning Of
this act, there must be something
more than a mere statement of
what a person or corporation con-
templates.
C.tcs Court Decision
Citing a decision of the supreme
court involving the act, Mr.. Daugh-
erty quoted from Chief Justice TAFT
as follows:
Its provisions are carefully
drawn to apply only to those prac-
tees and distractions which, in the
Judgment of congress, are likely
to affect interstate commerce pre-
judlcially."
Briefs Of Armour and company
presented TO Secretary Wallace ana
to the senate contend
ed that the consolidation would not
hinder. but would increase compe-
tition in the packing industry. De-
cisions interpreting the sherman
and Clayton antitrust laws, the
federal trade commission act and
the packers and stock yards act
we're cited to support the proposed
That the government, under the
hackers and stock yards act, would
retain power to prevent any i'm
prc.er results of the merger was
contended by Armour and COM
pany. ,
uThis industry" the Armour
brief said, lis in q different sltua-
fion from any other private in
dustry in the country, because II
s under the direct supervision OF
a governmental agency, the secre-
tSry of agriculture, who is given
power to investigate and prevent
in the packing industry unfair
methods of competition, unreason-
able restraints of trade or mono
POLES, and should it appear to MN
,t any time that any such sltua-
lion exists so far as this company
Is concerned, or any other packing
company, he is empowered to m
yestigate and correct it, so that
,ur statements of what the results
IF this acquisition will be may be
accepted with the confidence ana
assurance that If in the future a
different situation should develop.
he secretary Of agriculture VIII
promptly use powers vested IN nm
o correct it,
Statistics Submitted
Statistics regarding the meat in
lustry were submitted to show that
Armour and Morris during the last
EN- years had slaughtered 24,3t
Ter cent of the total livestock IN
ederal inspected plants while
swift and company had slaughter,
ID 22,39 per cent. or the. total
neat production in 1921 OF 16.-
10 900, 900 pounds, Il was said,
Armour produced 1919 per cent
md Morris 5.2S per cent. Figures
m subsidiary products also were
,iven in part.
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