Evening star., 1922-12-13
IMMENSE PACKING
MERGER PROBABLE
Government Attitude Held to
Have Removed Any Pos >
SibIe Hitch.
BY J. c. ROYLE.
Special dispatch to The star.


NEW YORK. December 13.-Ths
United States government cannot fur
! nish business with legal advice.
Neither governmental departments
| nor their executives can rule in ad-
vance on the legality of course oc
business action proposed by indl-
vidual corporations or commercial or
ganizations. That was the message
and the warning carried TO business
; men today by the announcement %
the Secretary Of Agriculture that
| there seems to be no occasion for
| action at the present time" in coi-
| nection with the proposed purchase
by Armour & Co. packers, Of the
| assets OF Morris & Co. rival packers.
| Business men today took the ar
| nouncement to mean that corpora
| tlonS or individuals contemplating
mergers and consultations must dc"
pend on the advice of their own cour-
Sci. act on il and then let II be d..
\ termined whether or not the ;,ctipt
as performed. not as contemplated.
\ was within the provisions of the laws
| on the statute books.
The announcement of SecretaTr
! wallace. based, as it was. on tho
|
erty. was 4 vigorous Endorsement o."
| the stand maintained by th.. Federal
Trade Commission that immunity
| from possible prosecution could Ilu'.
! be guaranteed business in advanc..
( That stand was based on the factc-
of intent.
Opinion Held Important.
| One of the members of the con:!.. =
sion pointed out. in illustrating thi-
point today. that II revolver in t.r
! hands of citizen might be used a.
| defense against a burglar withui.-
transgressins the law. and Nigh; :,>
| be used in committing a roli-hloo.iet.
! premeditated murder. and that VIII,
! the terms of a merger or ccnsoli,li--
| tion might themselves be entirt..
| within the legal limits. the opere-
| tionS of that merger might tend
! esta blish d monopoly or res.caiEt -
| trade
! This ruling was regarded bv has
| ness men here as especially sign
cant TO trade associations and "or'
noercial organizations. Bodies OF IL,
! Character have been urgent N -
past in endeavoring to discover fr'
government authorities just Va.
f, limits might be set on their actiri'.
| The commission has held that in ="
! eral trade associations were leg
mate outerowths of business of rr.-
possible value. but that they I.,'-
! strong poteniialities for evil. $50.
=, that their actions could not
| Judged in advance.
! Big Merger Seems Certain.
| The declaration of the Attorr.-
| General that no action or opinion
! the legality of the Armour purcha'
| seemed necessary at this time -.
regarded by business men as signif.
cant because, while IL the Armo-"
program is confined to the purcha
of the physical assets OF its CORE
petitor. it is possible that. while 1,
| consolidation might be beyond III
authority OF the Federal Trade Goa.
mission or the Secretary of Agricui
| ture under the packers and stockyar'.
i act. il might be subject to prosecute
I, by the Department Of Justice If =
| should result in monopoly in re
\ straint of trade.
4 The opinion was freely expressed i.
! packing circles in Chicago and els
| where that the refusal of the Secre
:; tary of Agriculture to give formal ap
| proval or disapproval of the plan
! would not halt negotiations for tn"
| merger. which involves approx:
matcly s500.O0b.090 in one way ard
another.
Other Business Comment.
| Condition of cattle growers ali ore-
| the country is reported slowly to b.,
| improving. Slightly better prices fey
stock are being quoted. the ranges
are in good condition and many grow
ers are in position to hold their herds
for better prices. Cattle are moving
freely from the ranges TO the feed
lots Of the middle west.
Christmas clubs now are disbursii;s
/ checks for tremendous amounts 10
members who have saved by this
! means throughout the year. About
sl34Se, ,0oU was distributed by sixty
seven banks in this city in the last
| two weeks and new clubs for next
year already are in process Of fcrma