The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1922-11-22
PACKING HOUSE
MERGER Up TO
HARDING.

our & Co. to Create
Bigger Combine Re
ferred to the Presl-
dent
Washington, Nov President
Harding win make the final deeis-
ION for the government on the
:ssprcpssal that Armour & Co., pur-
ehase Morris & Co. another OF the
big FIVE, Chicago packers, it was
indicated today IN high admins
tration circles. The president al
ready has discussed the matter
ith q Ogden Armour and VIII
seo over IT IN detail with Secre-
rary Wallace. as soon as the eN-
perts Of the department OF agrl-
caiture have completed their ST udy
6 of the plan
The executive was represenfeo.as as
beng Of the opinion on the bass
3 Gf the information now IN MS
possession that there would be no
objeetion at law to the proposed
consosiaation IN view Of the
sfricfer government regulations OF
he packing industry provided for
in the packers and stock yards
contreI act was emphasized !,
j. however, 4 hat he was Keeping an
open mind until al the facts bear
ing on the situation had been pre-
scented
seeresary Wallace said today
!. there would be no definite decision
for several days He explained
the mater was now in the
hands Of the department experts
) ara that he would give the pro-
pasA fnn consideration after they
had completed their survey and
s made Recommendations. The ex-
ssaerls were understood to- have
. asked sor INF ornration supplement
fal to that orlgiRany furnished by
Asrsaogr. Hhis was presented
f e. White, vice president,
and Charles z Faulkner, Jr, chief
counsel for 9rrrsour & Co Among
other things under consideration
Z iiusas uaa aerstood was the probable
efrect ef the psojecfed merger up
on the subsidiary corperatiofs Of
the two principal cognpalies.
NE adasini alton officers said
that favorable decision by the
gosernnaent on Mr.. Armourss pros
posal would not necessarily set a
precadent for government approv-
consolidation Of corpora
,;oas III other lines Of Industry,
such as that recently proposed in
the case of several of the so-caIed
indeBendent steel companies. It
Was explained that quite a diff
ssferenq situation was presented
since the government regulation
Of the packing Industry was pro
ssysaed BY law where there IS no
such regulation IN the steel and
arious other lines OF business.
n outlining to the president the
( situation which Arm our & CO. be-
fs1iiered made desirable and neces-
sary the censolidation Of that com
pany and Morris s. Co, Mr.. Armour
Vas understood to have erapha-
sired That the packing industry was
particularly hard hit by the recent
& general business depression. His
Z ,spfttion was that unless there We're
Z mergers within the Industry some
the hackers would be unable to
ssget along.
losses IN the business IN the case,
OF Armour & Co, standing over
the past two years, and also it was
Fsnnidg y&f only about 56 per cent
eapaeit and Morris & Co, at about
ger cent. capacity Facilities
Of gall the great packing concerns,
il WIS stated. had necessarily been
sgveatly augmented during The war
18th the result that now there is
ii considerable amount of capital
tied ap sn faciiities for which there
S no sse becalise Of the decreas-
ca demand and for which there
Erebabir VII 1e use in the near
fatures
Mr. Armour. It was stated. Off
eiaiiy had estimated that as a re-
ssust s1of the proposed merger the
egera1ing expresses OF the two cor
5 porations ceusa be- reduced by
5 something ike ste.eoe 900 yearly.
savings would res1,ti,.s not only
stkroagh oEdations and aban-
donment or Facilities augmented
curing the war but also in The con-
seiidarion of accounting systeE.s
and general overhead.
Armour explained TO the
president that his coGapany had
laid the. matter before the govern
naent because it did not desire TO
enter into a transaction of such
magnitude unless it was certain
that the consolidation would meet
government approval
II the properly owners of the
City OF Sumter do not kick against
being taxed for the building of
paved highways throughout tho
County while at the same time
vi