The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1923-02-27
Proposed Consolidation May
Create Greatest Meat Pack
ing Industry in History of
Nation With Sales Aggregat-
ing Billion Dollars Yearly
ARMOUR AND MORRIS TO
GO FORWARD REGARDLESS
Suit Is Likely to Reach Su-
J preme Court for Decision.
Hearing Of Case Is Set for
Early in ApriI-Packer Head
Criticises the Administration

Associated Press. )-Another battle
was begun today by the government
against what it claims would be a
monopoly in industry when Secre-
) tary Wallace of the agriculture de-
partment took steps to prevent Ar
mour and company of Chicago from
acquiring the plants, and business
of Morris and company, another of
the big five" packers. Consum-
nation of the consolidation would
result in the largest meat packing
enterprise in history, with annual
sales of more than 100000, 1000.
II. Edison White, president of Ar
mour and company, declaring the
apresent administrator had pro-
claimed its belief in ''less govern
ment IN business and more business
III government" said in a statement
,2tnaC his company heartily sub
scriDed to that slogan and was will
ing TO meet the issue involved speed
ily and without fear of the result.
Iii all probability the case will reach
the supreme court for determine
ton.
Wallace Acts.
Secretary Wallace, proceeding
under the packers and stock yards
act, served complaints on Armour 81
Co., j. Ogden Armour, and Morris &
Co., charging them with violation of
the ~ft by entering into a written
agrccihcnt for the sale of Morris d
Co. The complaints said transfer
was to be made on or before Febru-
AIRY 2S, and that Morris & Co. would
be eliminated entirely as COMPETE
tor in the packing business. The ac-
QUESTION. the complaint set forth,
would affect d restraint of Interstate
commerce and would have the effect
of creating a monopoly in many sec
lions of the United States in the pur-
chase of live stock and in the ship
ment and sale of meat and other live
stock products in this country and
abroad. The merger would material
ly increase the power of Armour G.
Co., it was stated, to control and
dominate the live stock and meat
packing industry.
Hearing Set.
A hearing was set for Monday,
April ., in Washington, before the
Secretary of War, at which the pack
ers will be required to show cause
why an order should not be issued
against the consolidation. Such an
order would be subject to appeal to
the United States circuit court of APP
peals at Chicago within 80 days. De-
cree of that court would be final ex-
cept for review by the supreme court.
Government officials said today
there was nothing in the packers and
stock yards act which would prevent
Armour & Co. from completing the
purchase of Morris & Co., but that il
the government was upheld in the
final decision of the case the Armour
company would have to divest itself
of the Morris plants and business.
CONTENDS PURCHASE "WIsE,
ALSO illegal" SAYS WHITE
CHICAGO, Feb. 26.-(By United
Press. ID Edison White, president
of Armour & Co.. packers, today de-
clared the proposed purchase of Nor
ris Co. is ;'wise as we'll as legal" !
Answering an attack by Secretary
of Agriculture Wallace on the COM
y bine, White said:
when the whole matter of the
purchase of Morris & Co. was put
up to the government we gained the
Impression that while the govern
ment could see no legal objection,
nevertheless the secretary would
make a test case under the packers
and stockyards act.
THE great war was primarily re-
sponsible for conditions which made
it necessary for us to reorganize and
finance our business.
Our procedure is prompted by the
best economic and financial authori-
ties obtalnable and we are assured
of the wisdom as we'll as the legality
of what we seek and we have no
fear as to the outcome of court pro-
cedure.
THE idea that our purchase OF
Morris g. Co. is out of accord with
stitute an undue restraint of trade,
or create a monopoly, is in our opin-
ion, without foundation"
White pointed out that Morris and
Armour combined do about Is per
cent of the total business in meat
foods.
There are in the packing indus
try about 1900 concerns to assure the
competition which is conceived to be
necessary to Keep prices at a mini
mum" he saiuF
Acquisition OF Morris properties
. promises Benefits to the public Just
Pas it does to Armours& Co. Great
ecpnomies in overhead, in operation
and distribution charges would be
effected The fruits of these lower
cost must be shared with the public
/ If we hope to maintain the Morris
volume of business in face of the
competition for it,