The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1922-12-13
COVE RNMENT TO
KEEP HANDS OFF
IN PACKE RS PACT
Secretary of Agriculture Wal
lace Sees Mo Occasion War
ranting Action by Uncle
Sam in the Sale

part in cash. part in preferred stock
and part in common stock, approxl-
mately one third of the amount in
each FORM Mr.. Armour submitted
an extended statement dealing with
the law and facts applying to the
proposed transaction. and detailed
information of the volume of the
business of each over extended
periods of time and indicating the
points at which there is competition,
both in packing and in the distribu-
ton of meats, between Armour and
company and Morris and company.
9Contrary to what seems to be q
general opinion, Mr. Armour did not
present an application for the priv
ilege ef merging these two plants.
the statement continued. He came TO
me with the frank statement that by
buying the business of Morris and
company he expected to be able to
add largely to the volume of the bus
mess of Armour and company and
thus effect large econI mics in the ad-
ministration of that business. BY add
ing the business of Morris ana COM
pany 10 that of Armour and company
Mr.. Armour stated that they would
be able 10 effect economies running
into many millions of dollars eacn
year. He said he would Hike me to
make careful study of the proposed
transaction, and that he hoped that
such study would lead me to the
conclusion that the action he pro-
posed would, in fact, result in benefit
Doth to producers of livestock and
consumers of meat and that l would
not oppose it.
Points to Consider
such authority as | have In the
matter is found in the packers and
stoekyards act which carries also the
authority which the federal trade
commission previously had over the
packing industry. There is nothing in
this act which specifically provides
the purchase by one packer of the
physical assets Of another. The qaes-
ton to be considered therefore. is
whether the purchase proposed would
bring about conditions or actions
which would come within the prohi-
billions of the act.
From the time the matter was
first suggested, | have been making
designations and accommodating i'm
basis for reaching an opinion as to
the probable effect en- competition IL
the proposed purchase should be
contaminated.
There seems to be no occasion for
action at the present time"
Briefs of Armour and company
presented t1 Secretary Wallace and
transmitted to the Senate contended
that the consolidation would not him
der. but would increase competition
in the packing industry.
That the government, under the
packers and stockyards act would re-
tain power to prevent any improper
reports of the merger was commended
by Armour and company.
Statistics regarding the meat in
dustry were submitted to show that
Armour and Morris during the last
10 years had slaughtered 24.57 per
cent of the total livestock in federal
Inspected plants while swift and
company had slaughtered 22.39 per
cent. or the .tetal meat production.
in 1921 of 1879, 100000 pounds. it
was said. Armour produced 1919 per
cent and Morris 5.23 per cent. Fig
ures on subsidiary products also
were given in part.
TIL Armour brief emphasized that
the consolidation will permit econo-
mics to be effected" and place the
in position to more eff
and best serve the public and
the producers of live stock"