The Washington times., 1923-02-08
MERGER
IS SCORED BY
SENAT TORS
Farm Bloc Members Assail
Acknowledging Deal as Il .
Nears Completion.

Dy hA1ANTNE1H W. CAAAk6ns
International News Service.
Persistent reports that the merg-
err of the Armour and Morris pack
ing, concerns has been completed,
despite the objections put forward
in some quarters Of the Govern
ment. led members OF the powerful
farm bloc in the Senate today to
assail the deal as obstructive OF
competition" and threaten Con-
gressional action.
Members Of the bloc said they
heard the deal had been consumHna.
ted and that announcement would
be made OF 1t immediately after
the adjournment OF Congress on
March 4. In the face Of these
reports, the Senate Agriculture
Committee took up for consideration
today the Norris resolution, re-
questing the Federal Trade Commits
sion to Investigate the merger, ana
also the La Toilette bill, which
would restore to the commission the
power taken away from 1t and
given to the Department Of Agfi-
culture in the packers control
IL. = Z
Senator Norbeck Of South Dakota
criticised the merger on the ground
that 1.-THE fewer packing houses. in
eral live stock conditions through
out the country"
Capper Opposes Merger.
The recognized champion Of the
farm bloc" Senator Capper of
Kansas, opposed the combine, on
the ground it would tend toward
more complete monopolization OF
the industry. IF Armour and Nor
ris unite" said Capper. there lie
no telling when the other packers
will combine. and in a few years
we might find the whole industry
under one organization" He re-
pudiated the statement. the merger
would help farmers.
Supporting Norbeck's view, Sena-
tor Brookhart OF Iowa denied the
combine, by cutting down overhead
charges, would result In better
prices for farmers.
Amy combination Of this char
acter would only enhance the OPP
portunities of mammoth organi-
cation to control profits and distate
prices" he charged.
1t was the belief OF Senator Nor
ris of Nebraska, chairman OF the
Agriculture Committee, ''the threat
ened merger was not only a viola
ton of the Sherman antitrust laws,
but would work untold hsEdships on
live stock owners. !. Instead OF the
Big Five in Chicago, we need
packing centers throughout the
country, in sections which will cut
out long-distance hauling and mini
mize freight rates." said Norris.
Too Late Now.
While nothing can be done at this
session to prevent the merger,
Norris thought, 1t was his prediction
that ''if the combine goes through,
there will be strong and deter
mined move in the new Congress to
tighten UP the packers act and the
antitrust law to break > up any
such contemplated analgan1atlon In
the future"
"The packing industry is now over.
developed" continued the Nebraska
Senator, land any merger would
only aggravate the present situa-
ton. What we need In more equi-
table distribution of packing houses.
and the avoidance Of overhead
burdens, such as the maintenance
of crops of lobbyists in washington
to foster favorable legislation"
Senator Reyes, Of New Hampshire,
a member OF the subcommittee, ex-
pressed the belief that even from
the packers viewpoint the merger
would be unwise. He thought the
heavy overhead, OF which both
Armour and Morris complained,
could not be effectively reduced
in this manner.
Will Fail, Says Keyes.
Pointing out that the big packers
had lost money last year, while the
independents enjoyed one Of the
best seasons in history, Keyes pre-
dicted the natural tendency in the
industry henceforth would be to-
ward disintegration, rather than
combinaN ton" For this reason, he
believes the merger, in the end.
would not prove extremely Injurious
to the farmers, for eft would be
doomed to failure by the very
nature Of present competitive bust.
ness conditions"
Senator McNary, Of Oregon,
pointed out the merger might mean
the loosening of ompetition-which
is not desirable thing in business.
from the standpoint of the con-
sumner"
It was reported here today the
merger virtually had been agreed
upon, and that announcement Of
the conclusion of the combination
of Armour and Morris would be
given out after the adjournment
of Congress. This was denied by
packer officials.