The Birmingham age-herald., 1922-11-16
ARMOUR SECRETIVE CONCERNING PLANS COMPANY PROPOSES
Meat Official confers With Daugherty and Wallace, But Decisions Withheld-Le-
 gaIity Being Discussed
By Associated Press

WaShlngCon, NoVemDer lo.--J. Ogden Armour, head of the meat packing house of Armour & Co.,, pre- sented today to Attorney General Daugherty and Secretary Wallace of the department of agriculture, pre- sumably for government approval, a proposal for merging through pur- chase the physical assets of another of the "big five" national packing houses with Armour 6 Go. Which of the concerns the Armour organiza- ton proposes to absorb was not dis closed, although both Wilson & Go. and Morris & Co. of the packing group have been mentioned. Off cials refrained from expressing an opinion in the matter.
 Mir. Armour tonight likewise de- cllned to make any statement ex- Washington for another day. It was assumed that a desire to determine the legality of such merger. in ad- vance of taking any steps to complete 1t had led to the consultation with officials. Secretary Wallace, after his conference with Mir. Armour and sew erai associates who accompanied him to Washington, Issued a statement saying he had expressed no opinion on the Armour plan, and It was in- ha na, ch erty had likewise withheld decision. although immediate consideration was promised for 1t.
 Expresses No Opinion
 In his statement. MT. Wallace said:
 Mir. Armour and two members of his staff were here this morning and informally advised the secretary that they were considering the matter of purchasing the physical assets of an other packing plant The secretary expressed no opinion concerning the proposed transaction but will, of course, give 1t the fullest considera- ton at the earliest possible date.
 Under the packers and stockyards act, 1t Is unlawful for any packer to engage in any course of business or do any act for the purpose, or with the effect of manipulating or con- trolling prices in commerce. or of creating a monopoly in the acquisi- ton of, buying, selling, or dealing in any article of commerce or re- straining trade.
 Section G of tho federal trade com mission act provides that the com mission shall also have power to gather and compile information con- corning and 10 investigate from time to time, the organization, business. conduct, practices and management of any corporation engaged In com- merce, excepting banks and common carriers subject to the act to regu- late commerce. and it's relation to other corporations and to individuals, associations and partnerships This part of the federal trade commission act Is by reference made part of Section 4o2 of the packers and stock-- yards act"
 Steel Mergers Were Sought
 Somewhat similar approaches have been to the government recently by heads of independent steel companies contemplating merger but Mir. Wal laces statement that the packing in- dustry. because of the existence of special legislation providing for it's specific regulation by the federal government, stood in different po- sition.
 There is said to be considerable discussion within the industry since the passage of these laws after bong period of agitation backed by farm organization, developing the suggestion that consultations among the "big five" might be advantageous in a business way and at the same time open to no public objection. Ne- gotiations were understood to have reached the stage where officials of national farm organizations have been asked to say whether such con- solicitations considering the degree of government control already in the field will be regarded as hostile by other components of the live stock industry.
 Takes Prccaution
 Mir. Armour's visit was understood to have resulted not only from a de- sire to take all precautions against possible government interference later but also from the general policy of the packers to keep the govern ment informed of all new develop ments in the field
 Attorney General Daugherty has repeatedly stated that he was offi- cially in favor of the government as- sisting in the formation of legitimate trade combinations and associations which such combinations would per init of increased efficiency for the American producer in his search for market and in the competition with foreign trade bodies in handling those markets.
 The Attorney General recently sug- gested that government agency should be set up to advise with American firms desiring to consoli- date or to associate among them selves for a common purpose. in or der that the members of the proposed association might proceed with due knowledge of their legal limitations. MORRIS HAS NOT SENT
 CApITAI.