Great Falls tribune. [volume] (Great Falls, Mont.) 1921-current, 1922-11-18
PACKER MERGER
FATE. IN HANDS
Of PRESIDE: n I
Harding to Make Final
Decision on Combine
Of Armour and Morris
Two Great Corpora
tions Now Operating
allow Tide, US. Told

Washinston. Nov 17-President
Harding will make the final decision for
the government on the proposal that
Armour &; Co. purchase Morris & Co.,
both of which companies are among
the big five" Chicago packers, it was
indicated Friday in high administration
circles The president already has dis
cussed the matter with j. Ogden Ar
mour and will go over it in detail with
Secretary Wallace as soon as the ex-
perts of the department of agriculture
have completed their study of the plan.
The executive was represented as be-
ing of the opinion, on the basis of the
information now in his possession, that
there would be no Objection at law to
the proposed consolidation, in view of
the stricter government regulations OF
the packing industry provided for III
the packers and stockyards control act.
It was empasized, however, that he
was keeping an open mind until all the
facts bearing on the situation had been
presented
Secretary Wallace Friday said that
there would be no definite decision for
several days Among matters under
consideration BY the government it was
understood, was the probable effect of
the projected merger upon the subsldl-
ary of the two principal companies.
Not to Set Precedent
The administration officers said that
favorable decision by the government
on Mr.. Armours' proposal would not
necessarily set precedent for govern
ment approval of consolidation of cor
porations in other lines of industry,
such as that recently proposed in the
case of several of the so-called inde-
pendent steel companies. 1t was ex-
planned that quite a different situation
was presented, since government regn- (!
lation of the packing industry was pro-
vided by law. while there was no such
.egulation in the steel and various other
lines Of business.
In outlining to the president the !
situation which Armour & Co. believed /
made desirable and necessary the con-
solidation of that company and Nor |
ris & Co. Mr.. Armour was understood |
o have emphasized that the packing in 1
iustry was particularly hard hit by the !
recent general business depression. /
His opinion was that unless there We're |
mergers within the industry, some of |
the packers would be unable to get .
along.
General Losses Great
Attention was called to general losses
n the business. in the case Of Armour
& Co, extending over the past two
years and also it was represented that
Armour & Co. was running at only
lbout Sc per cent capacity and Morris
& Co. at about 40 per cent capacity.
Facilities of all the great packing con-
'erns, it was stated, necessarily had
,een greatly augmented during the war
With the result that now there is a con
siderable amount of capital tied up in |,
ABILITIES for which there now is no /,
lse, because of the decreased demand,
md for which there probably would be
10 use in the near future. !
Mr.. Armour, it was stated officially, :.
lad estimated that as a result of the (
merger, the operating ex- |,
,enses of the two corporations could /
'e reduced by something like 100000
100 yearly Savings would result not 7
nly through consolidation and aband- 4
of facilities augmented during I
he war. but also in the consolidation L
f accounting systems and general over I
ead. L
Finally Mr.. Armour explained to the II
PRESIDENT that his company had laid u
he matter before the government be- It
ause it did not desire to enter into a ID
of such magnitude unless
nd until it was certain that the con- e
olidation would meet government ap- n
roYal. q