The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1923-02-26
(ETARY WALLACE OPENS FIGHT ON BIG PACKER MERGER
Complaint Filed Against Pro-
posed ArmOur-MOrriS
Deal.
Rr United Press

~ NutteU EFtoo
WASHINGTON, Feb. 26.-Secretary
of Agriculture Wallace today took
drastic steps to prevent the consum-
nation of the merger of the big pack
ing interests of Armour & Co. and
Morris & Co. Acting under the packer
control law. the secretary served
formal complaint against the two
packing interests, declaring the com
bine is a violation OF this law.
The two packing companies viii be
given an opportunity to present their
case in a hearing before the Secre-
tary of Agriculture on April 2.
From this decision the packers may
appeal to the Federal Circuit Court
Of Appeals in Chicago and then the
case may be taken TO the Supreme
Court of the United States. Expedi-
ton of the legal proceedings is pro-
vided for by the law and heavy pen
alties for violation of the cease and
desist" order may be imposed by the
court.
Would Iniure Farmer
The main basis OF Secretary Wal
lsce's complaint against the proposed
combine is that it would lessen com
petition. particularly in the buying Of
livestock. and this would injure the
American farmer, whose rights the
control Law protects.
Wallace reveals that early in De
cember he told G. Ogden Armour and
S. Edison White, new president Of Ar
nour & Co, that Federal Government
would be compelled to act against
the merger if plans for its consum-
nation were continued. At that time
Wallace urged the merger be dropped
Despite this information received by
the department showed that plans
for the combine We're being continued
and recently Armour & Co. by long
distance telephone. admitted that q
tentative agreement for the merger
had been reached.
That y. Ogden Armour. acting for
himself and the Armour corporation,
contracted with Morris & Co. and the
Morris family to acquire all of the
assets of Norris 6 Co. including its
business, patents and good will, and
its interests in its subsidiary and al
lied companies engaged in the meat
packing and related business, that
Morris & Co is to receive approx
mately $4,000 900. to be paid approx
mateIy One-third in cash. one-thIrd in
preferred stock and one-third in com
mon stock Of Armour & Co, either
of Illinois or Delaware, the purchaser
to assume the outstanding liabilities
and that the transfer is 10 take place
en- or before Feb. IS. 1928.
at is charged that this transac-
ton provides for the entire elimina-
ton of Morris &. Co. from the meat
packing field and constitutes a viola
ton of Title II of the packers and
stock yards act Of 1921. in that it is
z restraint. of interstate commerce
and creates or tends to create a mo
nopoly in many sections and com
munities of the United States and for
eign countries in the purchase and
sale Of live stock and the sale of live
stock products.
''On Jan. 29.H said Secretary Wal
lace, Il heard that some sort Of agree
ment had been signed by J. Ogden
Armour and by the stock holders of
Morris & Co.
and asked whether such an agree
ment had been signed and was told
that II ha5 been. but that its terms
had not yet been put in effect. I
told representatives Of Armour & Co
and Morris & Co. that formal pro
ceedings would be instituted as had
previously stated 70 them. and our
attorneys at once began to prepare
the complaint which was now being
issued.
Above all, there is a vital prin-
cipIe involved which cannot be
ignored. It will eliminate one of the
five largest packers in the United
States. and IN my opinion It may re
suit in materially Iessenfng com
petition among the buyers Of live
stock at the various markets.