South Bend news-times. (South Bend, Ind.) 1913-1938, 1922-12-13
GOVERNMENT TO
WITHHOLD HAND
In MERGER PLAN
Will Take No Immediate Ac-
tiOn in Proposed Packers
Consolidation.
DECISION BY WALLACE
Daugherty ID E clares Mere
Statement of Intention Is
Not Law Violation.

WASHINGTON. Dec. 12.-(By A..
PD-The government VIII take no
action az this time on the proposed
acquisition OF Morris & cos ply
ycal assets by Armour q CO., Of
Chicago. it was formally announced
today by the secretary of agriculture.
This decision was reached by ScC'y
Wallace after long study OF the pro-
posal and conference with Frest
Harding and Atty. Gen. Daurher-
ty. There was no indication in
Washington whether Armour & c.,
would proceed with their ueEotia-
fions for tho Morris establishmcIt,
which is a competitor and one Of
the "big five" packing establish
Ments.
Wallace Gives view.
Sec'y Wallace declared there ap.
peared 20 be no occasion for action
a. this time. under the packers ana
stockyards act. which ne admins
ters. in connection with the pro-
posal informally laid before him by
J. ogden Armour. Ir. Wallace aac
transmitted this information and ad-
ditional data on the proposal to the
senate in response TO a resolution OF
Sen. Lafollette. Republican, Of VS.
consin.
In a formal announcement, Mr.
Wallace declared there was nothin9
IN the packers and stockyards act
which specifically prohibits tbe pur-
chase by one packer of the physical
assets or another. An opinion by
Atty Gen. Daughcrty, made public
with the announcement. said the act
IS essentially a regulatory one and
that tho duties and powers or the
secretary OF agriculture there under
are 20 regulate the industry.
SccTetaTy's Powers.
The attorney general said neither
ne act itself nor the regulation pro
~tlded for therein coEtempiates or
requires that the secretary Of agri-
culture should advise the industry
I'm regard TO such a transaction as
proposed by Mr.. Armour in advance
Of its contamination. Mr.. Daugh-
erty said the act vested Mr.. Wallace
with broad powers Of inquiry and he
was Of the opinion Mr.. Wallace
might make such inquiry.
The language Of the packers and
6tockyards act" said Mr.. Daugherty
'Ynakes it clear to me that the act
does not require YOU 20 take any
formal action unless you have roa-
con 10 believe that the law has been
violated or IS being violated To
constitute a violation of the law IN
the meaning cf this act there must
n something more than mere
statement OF what a person or cor.
poration ContempIates."
cites Taft's Ruling.
Citing q decision Of the Supreme
court involving the act. Mr. DauGh-
ertv quoted from Chief Justice Tai
as follows
"Its provisions are carefully drawn
u apply only 20 those practices and
obStructicns which, in the judgment
OF congress are likely 90 affect iu-
terstste commerce preJudic!aily."
Briefs Of Armour * Co, presented
90 SeC'y wallace and transmittel
20 the senate contended that th.
consolidation would not hinder bu
would increase competition in the
packing industry. Decisions inter
Apreting the Sherman and Clayton
Vauti-trust laws. the federal trade
commission act and the packers
and stock yards act were cited q
support the proposed consolidation.
That the government under the
packers and stock yards act woul
retain power TO prevent any improp
er results OF the merger was con
tended hy Armour * Co.