The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1891-12-20
THE BIG THREE"
How Armour, Swift and Morris
Worked the Englishmen.
They Sold the Union Stock Yards for Many
Millions, Then Started Another Plant and
Sold That-Now Come Suits.

NEW YORK, Dec. 19.-The old Union
Stock yards company of Chicago, was
bought out early in 1890 by English
promoters known as the City of London
| corporation, that company purchasing 100,
600 shares of stock, aggregating S13, 000,O 600
par value, paying for them something in
| excess Of par. The company then re-organ-
lied under the laws of New jersey having
a capital stock and outstanding mortgage
bonds aggregating 1928, 100000. Since then
1t has been in much trouble The pubic
SUBSCRIBED VERY sPARINGLY,
1t is said, and underwriters were loaded
with securities, Armon. Swift and Morris,
known as the "Big Three" were heavy
holders in the old company and sold out to
the English syndicate at $3.50 per share. No
sooner was the new company an accomp-
lished fact than the big Three" being
no longer interested in dividends, awoke to
the fact that they were paying excessive
for trackage, yardage, feed, ETC. In conse-
quence they bought 4, 900 acres of land at
Tolllston, Ind, and announced they pro
posed to remove to that point. Further
more, they purchased three acres conrgu-
Gus to their packing houses in Chicago,
and shortly after filed suits there to com
pei the stock yards company to permit to
be delivered over its tracks direct live
stock consigned to them without handling
by the stock yards company. This was
done with view to avoiding paving yard
age, etc. The New Jersey company, with
S23, 100000 liabilities,
FOUND ITSELF IN THE DILEMMA
OF losing the ''big threes" business or di-
v1dlng with them part of the increase. The
latter, of course, was pursued, and the
company made a contract with the ''big
three" by which, in effect the latter
decided the stock yards company their
three acres at the yards, said to be worth
$50, 900; 1000 acres at Tolleston, said to
have cost 500, 900; dismissed the suits an
continued business at the old yards For
all this, the New Jersey company agreed
to pay $4,000 partly in cash and partly
in bonds. No sooner was this agreement
made than Mr.. Ellergan, of London, a
stakeholder In the company, filed a bill
against the New Jersey company and ssBig
Three" for the purpose of having the CON
tract declared illegal. The vice-chancellor
in New Jersey yesterday decided in favor
of the
LEGALITY OF THE CONTRACT
To-day fourteen new suits were instituted
SO1i0 III tuo OulLeu OIdUeS court anu an
other in the New Jersey court. The new
plaintiffs include all of the packers at the
yards except the big Three and their
business is said to aggregate over 500, OOO,-
600 annually. Application for an injunc-
ton to prevent carrying out the s., 900, 900
contract was made to Chancellor McGiu
of New jersey this morning, and at noon
to-day he entered an enjoining order re-
straining the parties to the contract from
concentrating it, The injunction was
served upon the New Jersey com
pany at once. The new suits made
Startling allegations, they allege the
Ellerman suit was conclusive and fled by
one in close business relations with the
contract corporation; that it was brought
really to have the con tract sustained; that
it was ingeniously devised to suppress the
truth; that the 100000 contract is
mere illegal device to create prohibited
discrimination contrary to the express
statutes of Illinois, New York and the
United States. The New York company
Is vigorously attacked as being trust and
combination, and unlawful corporation, or
gained to deal in the stock of another
company, practice frowned upon in re-
cent truSt dpciaiOnS of Uprious counts