New-York tribune., 1922-11-16
Armour Go. .CombineWith
Morris and Wilson, and
of Swift and C.ldahy, is
Sought, Chicago Believes
Promoter COnsults
Washington Officials
Wallace, Daugherty Silent
as to Their Attitude;
May Ask Harding's Aid
Special Dispatch to The Tribune

CHICAGO, Nov. is. - In La Sale
Street and in the packing Offices here
to-day it was felt certain that j. Ogden
Armour's visit to Washington is the
forerunner of a movement to merge
not only Armour G. Co. and Morris &
Co. but also the rest of the "Big Five"
into two big packing corporations, with
Armour, Morris and Wilson in one firm
end Swift and Cudahy in the other.
Mr. Armour submitted his proposal
to Secretary of Agriculture Wallace
and Attorney General Daugherty in
Washington to-day, reports from there
announce, but nothing could be learned
here of the attitude of those Cabinet
members toward his proposal. 1t is an
nounced he will hold other conferences
tomorrow with government officials
and perhaps with the Federal Trade
Commission. 1t is said he may appeal
to President Harding for support
Both Secretary Wallace and the At
torney General issued brief statements
Following their interviews with Mr.. Ar
mour. Neither expressed an opinion on
the legality or advisability Of pack
ers' merger. Mr.. Wallace outlined the
law which forbids trade combinations
among the packers, and Mr.. Daugherty
SAID the Department of Justice would
be guided entirely by the trust laws in
considering the Armour plan.
Combined Assets $1,000, 200, 900
Mr.. Armour's recent negotiations to
buy Thomas E. Wilson & Co, it is said
authoritatively, were blocked by Morris
o. 90; Ihere is an agreement among
the big Five" that all >must approve
such deals. And those in the inside
see in the Morris consolidation
merely necessary move toward a
two-big- packer" plan which, if real
lied, will have Swift g. Co. take over
the Cudahy firm and leave the other a
gigantic Armour & Co. with Thomas E.
Wilson as its head.
The combined capitalization of the
Big Five" is 1894 ,S32, 900 and the com
bined assets 81 ,o97, ,7O7457.
A consolidation of Armour & Co,
Morris & Co. and Thomas E. Wilson &.
20. would constitute corporation with
total assets of $674, 101 ,47O and capitai
of 1921 ,032,000
A Swift and Cudahy merger would
produce assets of S423,605,987 and cap
ital of SITS, 100000.
When the report of the consolidation
OF Armour and Morris became public
yesterday Colonel Nelson Morris said
that MS company was ready to sell if
it was offered "its price" but added
that no offer had been made. A man
who knows of the deal said to-day that
this was a technically correct state
ment IN that Armour & Co. had not Of
Tered concrete figure, but had OBJ
tanned what is tantamount to an option
and then sent to Washington to see If
the government would countenance the
deal before making the final offer to
Morris.
See Benefit to the Consumer
Stockyards officials point out the
chlef reason for such a trade would be
IN eHectlng an economy through the
elimination of branch houses. At pres
ent some towns have branch houses of
each Of the big Five" packing com
panies, while there is not enough busi-
ness to support more than one or two
such branch houses. Under such cir
cumstances, packing officials are tell
ing the government, competition ceases
to benefit the meat consumer. who
would get better service for less money
if a monopoly existed
The attitude Of the Federal Trade
Commission in the past has been
uIdoIiC WHEN IL came TO working agree
ments among the meat packers. Under
the direction of Francis j. Heney, an
investigation was conducted and every
thing savorng of agreement" was
condemned. In another instance, many
officials of the. big packing companies
were tried under the antitrust law for
conspiracy to restrain trade, and ac-
quilted only after a bitter fight.
More recently, the Trade Commission
has allowed merger of steel compa-
MES, and some believe it is now taking
more liberal view of such combina-
tions.
WASHINGTON, Nov. 15.-,r Ogden
Armour to-day laid before Secretary
of Agriculture Wallace, administrato or
of the packing control act, and Attorney
General Daugherty proposal for the
merger of Armour G. Co. with another
of the big five Chicago packing COM
panies, believed to be Morris & Co.
Mr.. Armour would not discuss his
plans and remains in Washington to
Continued on page sIx)