The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1923-02-26
SEC, WALLAE
EEKST0 HEAD
OFF PURCHASE
Armour and Morris Charged
with Violation of Stock
Yards Act
HINT AT COLLUS1ON
Head of Agriculture Depart
ment Says Purchase of Plan
Would Cut Competition
HINT IT COLLUS1ON

Washington, Feb. 26-ArmOur
and Co. and Morris and Co.. Chica
20 packers, were today served by
the secretary of agriculture with T
complaint charging them with vic
lation of the packers and stock
yards act in connection with tn
tentative acquisition plan of bus
ness of Morris and Co. by the Ar
mour interests.
Sec. Wallace set April 2 for the
hearing. Armour and Co. Of Ill
nois, Armour and Co. of Delawarn,
j. Ogden Armour and Morris ana
Co.. were named in the complain
The complaint stated that on
Dec. 30, J. Ogden Armour entered
into a written contract with MOr
ris and Company to acquire all as
sets. In doing so it was said that
and stockyard act.
Sec. Wallace said such an agree
ment would have the effect of Gre
ating a monopoly in many parts 0t
the United States in the purchasc
of livestock and shipment and saic
of meat and other livestock PROD
uctS
The complaint also charges that
the contract would have the effect
of manipulating prices.
The proposal first came to pub
lie notice early in November when
j. Ogden Armour and other Off
ials of Armour and Co. conferred
with Sec. Wallace. After subs.
quent conferences beween Mr.. Wa
lace, Pres. Hearding, Atty. Gen
Daugherty, it was decided thal
there were no obligations or par
of the United States gove.nH:3n: Co
acquiesce to the proposal.
Sec. Wallace said that early in
September he told j o. Armour and
E. White, now president of Armou
Co. that he did not think that ~
could look with favor upon the
transaction proposed and suggestee
that they go no further.
Mr.. Armour then, he SAID. re
marked that he felt that it would
be necessary that they complete
the purchase that they might in
crease their volume of business
and thus meet heavy overhead
charges.
Formal Statement
Mr.. Wallace in formal state
ment today said that whether the
proposed purchase of Morris ana
company is in violation of law i
a matter for final determination.
1t may be argued that by combin
ing the business of Armour and
Morris they will be in a position t.
compete more vigorously because
of economy effected. On the Othe
hand the refinancing involved may
also place an additional burden or
the industry. Above all there is Il
vital principle involved which can
not be ignored. 1t will eliminate
one OF the five largest packers in
the United States and in my opin.-
ion 1t may result in materially les
sening competition among the buy
ers of livestock at the various mar
kets. This is one of the things which
the packers and stockyards e.
was intended to prevent"
Increase influence
Secretary Wallace declared thai
Armour influence in the Chicago
LIVESTOCK market would be increased
by 54 per cent, provided the CON
pany could buy as large percent
ase OF the livestock as Norris Az
Company heretofore bought and at
the same time keep W their owH
normal percentage"
THE livestock market is very
sensitive" the statement said. ''By
the simple act of refraniing froni
sending their buyers into the yard
promptly on time o., any morni,S
OF heavy runs either of the larger
packers can very materially dc
press the market. Any act, there
fore, which materially increase
the buying percentage of either OF
the larger packers. puts it in hls
power to substantially lessen con-
petition and depress prices. Pro
ducers of livestock need all the
competition that now exists"