The New York herald., 1922-12-27
ARMOUR CHARTER
SOUGHT IN MERGER
Delaware Application Viewed
as Preliminary to Taking
Over Norris Company.
CONFER WITH BANKERS
Principals Expect Soon to Ar
range for Financing Big
Deal Among Packers.
CONFER WITH BANKERS

Special Dispatch to THE New YORK HERALD
CHICAGO. Dec. pa preliminary step
toward the final merger of the pack
! ing plants of Armour & Co. and
Norris & Co., was taken to-day by Ar
mour & Co., when preparations were
made to obtain a charter in Delaware
and issue s1lO.O 900 stock. Stock to
the amount of $1sO.oOO.OOo will be au-
thorized
The Delaware corporation will be a
subsidiary corporation and all stock will
according to a statement issued by
Henry Russell Plat Of the legal firm
OF Mayer Meyers Austrian G. Platt, han
ding the legal details Of the incorpora-
tion.
This is believed to be the first definite
step toward financing the Armour Nor
ris merger. The last published statement
from the Norris offices was that no def
mite proposition had been made by Mr..
Armour
From confidential sources it was
learned to-day that for some time the
|
Armour and the Morris interests have
been waiting for him TO act. To-day's
move. ii is believed, Is designed TO solve
that problem. and the actual merger is
expected to follow soon.
| The papers in the new incorporation
will be filed probably tomorrow, the at
! torneys said.
THE stock issued Immediately" Mr.
Platt said. will be to the value of s11o.-
| 100000 for the purpose of carrying out
certain plans of Armour & Co. certain
ARRANGEMENTS which they have in con-
| temptation
Mo ris & Co. have TO interest in the
new company" Mr.. Patt said. Il don't
know that | can say anything further
OF course. this subsidiary company
would prove convenient medium for
/ carrying out any plans that Armour 4
| Co. might have for extending their bust
ness"
The proposed Armour Morris merger
| has been hanging fire for several weeks
the first move having been made by j
Ogden Armour. The consolidation plans
have been denied by the Mo; ris inter
ests. but Mr.. Armour seemingly has paid
little attention to these denals.
recently obtained the Governments sane
ton for the merger and financial cir
! nouncement daily
Il II was aid in Wall Street circles yes
terday that the financing In connection
4 with the new Armour Morris Corpora
tion will be definitely decided upon il
q few days Conversations between Ar
nour e. Co and a group OF banker:
headed by the Chase Securities Corpor L
tion have been going on for some time
and although many plans have beer
presented, the actual details Of the
financing have yet to be worked out
The contract between the bankers ant
the company has not yet been signed
although negotiations are likely to b.
brought to a close any day.
One plan that is said to have received
the most consideration includes a pub
lie offering of $50. 100000 of thu
authorized 500. 100000 preferred stool
and S50,000,000 ) per cent. long tern
bonds. Part of the proceeds of thi
sale would be used to redeem tn
S60.0O0,000 7 per cent. ten year notes o
Armour & Co. now outstanding TIL
notes are due in 1880. but they are re
deemable at los.
Armour & Co at present has al
authorized capital stock of S400, 900, 00O
of which S10O, 900 900 is preferred ant
the balance common stock. although
| only a part Of the common stock eve
4 was issued
Morris & Co. has $4,000. 900 In com
mon stock and $10.000.000 in preferre'
stock.
Auditors are Understood to have beel
at work in the Chicago offices OF bot
companies to obtain final figures Of tn
physical property involved in the pro
posed merger. and speculation has pu
the price on Morris & Co. at from s100,
000, 900 to Sl5O.0O0 900.