The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1891-12-20
1t Involved the Payment Of $4,000, 900 to the
"Rig Three" Packers. Who Intended to
Move Their Business TO Tolles:on, Ind.
Decision in the Company's Favor Fol-
lowed by Filing of Many New Suits.
Startling Revelations Promised Concerning
the Administration of New Jersey Justice
NO Evidence Heard in the First Case.
THE BIG THREE. DEAL.


the laws of New Jersey. having q capital
stock and outstanding mortgage bonds az
gregating s23, 100000. The company was
organized by the City of London Corpora
tion, promoting institution which. dur
ing recent years. has been extensively en-
gagged In floating IN England and in this
country breweries and other industrial
concerns. One of its latest ventures was
the purchase of 130. coo shares of the Union
Stockyard and Transit Company, of
Chicago. aGgregating S13.0O0.0OO par
value. These shares it purchased in
1850 at something in excess of
par. and made them the basis
of the New Jersey company. which was or
Ranized exclusively for their purchase. In
July. 1890. the New Jersey company's stock
was offered to the public simultaneously
ia London, Boston. New York and Chicago.
The securities of the company consist of
s6.J00.OO0 common stock and the same
amount of six-per-cent. preferred stock.
and S10.000.C00 fve-per-cent- debentures.
the latter being secured by a trust deed to
the Central Trust Company of New York.
covering 1901 of the 10000 shares of the
Chicago stockyards Company.
Since tho formation of the company it
has been in q peck Of trouble. The public
eubsc ribed very sparingly, and in conse-
quence the underwriters were loaded with
more than so per cent. of the securities.
Armour q Co.. Swift q Co. and Nelson
Morris * Co., known as the big Three"
were heavy holders of the shares of the
Chicago company. and at the time these
shares were sold they sold out their
holdings TO the English syndicate at
ali . hat kr.,.a rhA
ital stock of the Chicago COM
psny was s13,2O0.000, 1t having been
increased thirteen times from its original
capital, which was Sl.0O0.O00. The Big
Three" having sold out. stood smilingly by
while the New Jersey company was being
organized and securities underwritten ana
sold TO the public. No sooner was the New
Jersey company an accomplished fact.
when the Big Three" being no longer in
terested in the dividends of the Chicago
company as stockholders. awoke to the
fact that they were paying the Chicago
company excessive rates tor railway tolls,
trackage, yardage. and for feed and care or
their live stock.
DEAL IN INDIANA SWAMP LAND.
In consequence. they bought four thou
sand acres at Tolleston. Ind, twenty-five
miles from Chicago That land is said to
be~entirely swamp and unavailable for
stock-yard purposes. Nevertheless, the
big Three" gave great publicity to their
intended removal to Tolleston. took sur
veyiDg and engineering parties over the
ground. and altogether avowed that they
We're going TO move their extensive pack
Ing plants to T0llestOn, where they were
going to do rival stock-yard bust
ness. That land IS said to have cost
the packers in the neigh borhO0d of 800
an acre. Not satisfied with so promising
and extensive an investment the Big
NM lhnl nod mi rntla
30 their packing houses in Chicago. and
shortly after filed three suits in the Cook
county Circuit Court 10 compel the Chicago
company To permit TO be delivered over its
track. direct to the Big Three" live stock
consigned to them without the same being
handled at the Chicago stock-yards, with
a view thereby of avoiding payment or
yardage and other charges. For many
years the Chicago company has charged for
yardage % cents per head for cattle. for
sheep, 10 for horses and cents for hogs, in
addition to charges for freight. and track
age. and feed.
The New Jersey company, with its s23.-
OO0.oOO liabilities. thus found itself In the
dilemma of losing the big Three's" BUSH
ness or dividing with them q part of their
income. The latter course was pursued.
and IN July of this year the New Jersey
company made. IN London. with the Big
Three" contract by which, in effect. the
big Three were to deed TO the Chicago
company the three acres at the stock
yards. alleged to be worth about $50. 600. one
thousand OF the four thousand acres at
Tolleston. SAID TO have cost 100000 and
dismiss their three suits and continue their
business at the old stock-y ards. For all
this the New Jersey company agreed To pay
SS.OO0.oOO, partly in cash and partly in
bonds.
No sooner had the agreement been made
than John Reeves Wormon. of London. ~
etockholder in the New Jersey company,
filed n bill against tho New Jersey com pany
nd Ia mr. laf for fha
purpose of having the contract declared
Illegal. That case was submitted to n vice.
chancellor In New Jersey. argued last No.
vember and decided yesterday In favor of
the leg atty of the contract.
FOURTEEN NEW SUITS.
Immediately after the rendition of the
decision steps were taken TO consummate
the contract, but barely had the decree
been rendered when fourteen new suits
were instituted. These cases were begun
to-day, some in the United States
Circnit Court aud others in the
Chancery Court of New Jersey.
The new plaintiffs include the Anglo
American Provision Company. the Allerton
Packing Company. the Chicago Packing
and Provision Company, 1: Il: Wells * Co..
John Cudahy. John &. Hately. Thomas j.
Upton & Co., w. III. Silberhorn Company,
the international Packing Company and
jones 81 Styles who constitute ali of the
outside packers, and whose business is said
70 aggregate over 800, 900 annually.
Another suit was instituted contemporaries
ously by Charles Il. Willoughby, a share
holder in the New Jersey company to the
extent Of $4,000. These plaintiffs are rep
resented by their counsel. Lew Mayer. of
Chicago. and by James C.. Carter. Thomas
y. Carter. Judge Frederick w. Stevens. 3.
V. Lindabury. A. 7. Whitehead and Martin
* Smith.
An application for an Injunction TO pre-
vent she carrying out of the three-million-
dollar contract was made to Chancellor Nc
Gill; of New Jersey. this morning. and at
noon to-day he entered an enjoining order
restraiDing the parties TO the contract from
concentrating it Tue Injunction order
was served upon tho officers of the New
Jersey company. it appears. inst in time to
prevent the deal going through. Teie-
graphic notices of the Injunction were also
promptly dispatched TO the big Three"
4 The new suits make startling allegations.
and promise TO develop a revelation in the
administration of New Jersey Justice. The
bills allege that the Ellerman suit was col
luslve. and it was filed by one in close
business relations with the London Con-
tract Corporation, and that II was
brought. though ostensibly for the
purpose o. having the contract
declared illegal. yet In reality TO have il
furthef charge In effect that the Elierman
suir was ingeniously devised TO suppress
the truth; that no evidence was heard: that
the parties voluntarily submitted 20 the ju-
risdlctl0n OF the court, and that Ellerman
tEafead Of furu isliuQ evidences in ann mort of