Rensselaer Journal, Volume 12, Number 9, Rensselaer, Jasper County, 7 August 1902 — STATE THREATENS PACKING MERGER [ARTICLE]

STATE THREATENS PACKING MERGER

Attorney-General Hamlin Is Collecting Evidence at Chicago. - IS TRYING TO STOP THE TRUST Action to Be Begun Early in Order to Prevent a More Bitter Fight Which Would Follow the Consummation of the Combination. Chicago, 111., special: The state of Illinois will fight the proposed packers’ combine. Attorney General Hamlin has been in Chicago for two days gathering evidence and will soon proceed against the concerns proposing the merger. Whether the combine takes the form of a gigantic sales corporation or a mere consolidation of the interests, the war against them will be instituted. The state will not await the actual consolidation but will proceed to prevent the merger. Evidence now at hand is strong enough to warrant the state to make all preliminary legal arrangements for the litigation, and it is for this purpose largely that the attorney general is now in Chicago. Federal Case Has No Bearing. Nothing in the Federal case now pending against the packers is to be construed as having the least thing .to do with the coming fight. Among all the affidavits secured by Attorney Bethea for use in the Federal proceedings there is not one that alleges a violation of the law within the state of Illinois. All the Federal evidence has been examined by the state authorities and nothing therein has been found to warrant the state in beginning a suit.

Evidence of Great Combine. Well-founded rumors of a combination, however, all of which have arisen since the beginning of the Federal suit, are the cause of the activity on the part of the state. Spurred by the haste of the packers in absorbing the minor packing plants, the attorney general desires to institute his case early in order to prevent an inevitably more bitter fight following the consummation of the packers’ deal. Information From Brokers. All the packers are close mouthed. Attempts by the authorities to secure any information to support the reports have proved unavailing, but knowledge of an indisputable character has come from numerous other sources. Brokers have been a fruitful source of “combine” news and through them the state has been kept pretty well in touch with the trend of events. The Swift & Co. stock, which is the only packers’ stock quoted on exchange, has been held up before the attorney general by the brokers. The rapid rise in Swift & Co. quotations —a rise which has occurred since the reports of a combirie became current —is held by the attorney general to be an almost convincing indication that something is about to happen in packing circles.