New-York tribune., 1922-12-07
Senate Inquiry Is Ordered
After La Toilette AssaiIs
Harding on MergerPIan; !;
Combine Held Blocked
New Club Sought
For Trade Board
Wisconsin Senator SAYS
Indulgences Cannot BE
Sold to- Law Breakers
Prom The Tribuncs washi.gfou Bnr,a.

WASHINGTON, Dec. 6.-More evi.
dencc Of the purpose OF tho progressiv,
group and the farm bloc TO take an nc.
tive part in legislative and govern.
mental affairs was presented to-day
when Senator La Toilette. in a speech
in the Senate. criticized the proposed
merger Of the Armour and Morris pack.
ing interests
He urged the adoption OF his resolu-
tion for a full report on the proposed
merger from the Secretary Of Agricul.
ture and a report on what business Is
done by each Of the big packers and
Independents and what action, II any
he Secretary has taken or eontem.
plated t. ing In reference to It.
Not only did the Senate, after IN,
speech. adopt the resolution without O
roll call and without dissent. but Senh.
tor La Toilette. supported by Senators
Owen and Norris. both Of the progress
sive bloc, declared that in forty-eighi
hours he would introduce n BIZ. to re-
store TO The Federal Trade Commission
the powers Of investigation into the
packing industry removed by the~pack-
ers and stockyards act
Curb beef IItst, Says Owen
Senator Owen declared il was high
lime the Fedora, government reach
out it's strong arm 10 curb the beef
trust" and Senator Norris pointed out
that the wings Of the Federal Trade
Commission, so far as investigating the
packers was concerned, were clipped By
the packers and stockyards act. He
also held that the commissions powers
should be restored.
Belief in many quarters Is that the
proposed merger Is likely 70 be halted
by to-day's Senate developments.
Senator La Toilette assailed high
government officials for their course
an demanded 10 know why the great
packing houses are frankly bargain
ing with government officials for per
mission 10 do an unlawful act"
He referred 10 newspaper articles
quoting white House Spokesman" as
saying the President "feels there is no
legal obstacle preventing one packer
the packing industry 10 already under
Federal control"
Makes Flat Contradiction
Taking square issue with this and
commencing the matter TO the atten-
uon Of the farm bloc and other Sena-
tors who believe the packers and
stockyards act would give the govern
ment more complete control Of the
packers combine" Senator La Toilette
said this act did not authorize or jus
tify the merger. He said:
sIt seems that this act, so far from
being the means Of more efficiently
curbinR these trusts. is TO be made the
excuse and reason for letting them
proceed with their unlawful combina-
tions and conspiraeies. II is not true
that the packers and stockyards act
contains anything authorizing or JUS
tifying this merger. On the contrary
II prohibits II in the plainest possible
language.
why are the great packing house,
frankly bargaining with government
officials for permission 10 DO an un-
lawful act? The answer Is that the
great packers are in financial diff
feulties.
Sees Increased Prices
"These mergers simply mean more
fees and commissions for the In
siders; more watered stock more
bonds-and eventually more overhead
the carrying charges Of which must
eventually be paid by the public In
increased prices.
"Under what law does the President
or the Secretary Of Agriculture give, to
the packers an opinion IN advance tnat
their action will be legal or iliegal
"If this proposed merger had any
legal basis il would not be necessary
TO avoid all investigation OF the sub
ject and take IL up with the President
He cannot, Of course, conduct any IN
vestigation at all, but he can eneetually
restrain the Department OF Justice ana
through that department the various
district attorneys from taking any ae-
tion In the premises, and he can pre-
vent his Secretary Of Agriculture from
filing a complaint against the compina-
tion either after IL is organized or 70
prevent It's organization. u,-
"The least we can do IS 70 ADOPT thls ~
resolution, that we may know ana tne
people OF the country may know some,
thing as 10 the effect TINS proposed
merger would have upon the meat pack
inR industry and what steps, u any
officials Of the government are tAkin
10 maintain and enforce the laws "nleh
have been passed TO protect the pup
lie from the unlawful practices OF the
meat packers"