The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1891-12-20
CHICAGO sToCKYARps LITIGATION
Armour, Swift and Morris Outwit En-
glish Investors at Exerx Point

NEW YORK, Dec. l9.-The old Union stock.
YARDS Company, OF Chicago was bought ont
early In 1880 by the English promoters known
as the City Of London Corporation, that COM
pany purchasing $4,000 shares OF stock, eggre-
eating si3Oo0,000 par value, paying for them
something in excess OF par The cornpanv then
reorgsnized under the laws OF New Jersey, hay-
Ing capital stock and outstanding mortgage
ponds aggregating S23,c0o.000. since then il has
been IN much trouble. The pu.l.e subscribed
sparlngiy to its support. and the underwriters
were Loaded with securities Armour. Swift
ana Morris, known as the "big three were
heavy holders of the company, aud sold out 10
the English syndicate at $50 per share
NO sooner was the new company an accom-
pushed fact than the "big three being no lon
ger interested in dividends, awoke TO the fact
tnat they were paying excessive rates for track
age, yardage, feed, etc. In consequence they
bought 1900 acres of land in Tolleston Ind
and announced that they proposed TO remove to
that POINT. Furthermore. they purchased three
acres contiguous 20 their packinghouses in Chi
cago and shortly after fled suit there to compel
the stockyards company to permit to be dely-
cred over its tracks direct, livestock consigned
to them without handling by the stockya-ds
company, this with u view of avoiding paying
yardage, etc.
lhe New Jersey company, with 81. 600
liabilities, found itself in the dilemma of losing
the "big threes' business or dividing with
them part of the income. The latter course was
pursued, and the company made contract with
the big three by which, in effect the latter
decided 10 the stockyards company their three
acres OF yards, said to be worth $4,000, and Loco
acres ct Tolleston, said to have cost 500, 600;
dismissed the suits and continued business at
the Old yards. For all this the New Jersey com.
pany agreed to pay s3,0O0,000, partly in cash and
partly in bonds. No sooner was this agreement
made than Mr.. Ellerman, of London, q stock
holder in the company, filed bill against the
New Jersey company and the ''big three" for
the purpose OF having the contract declared
illegal. The vice chancellor of New Jersey yes
terday decided in favor OF the legality of the
contract.
Today fourteen new suits were instituted,
some in the United States court aud others in a
New Jersey court The plaintiffs include all of
the packers at the yards except the 'sbig three"
and their business is said to aggregate over
100000 annually. Application for an in
junction TO prevent the carrying out OF the
S3.000O00 contract was made TO Chancellor
McGill, of New Jersey this morning. and at noon
today he entered an enjoining order restraining
the parties to the contract from consum-
mating il. The injunction was served on the
New Jersey company at once. The new suits
make startling allegations. They allege that
the Ellerman suit was collusive and flied by one
in close business relations with the London cor
poration; that it was brought really TO have the
contract sustained: that il was ingeuiously de-
vised TO suppress the truth that the 5000, 600
contract is mere Illegal device to create a pro-
hibitory discrimination, contrary to the express
statutes OF Illinois, New Jersey and the United
States. The New Jersey company is vigorously
attacked as being trust and a combination and
an unlawful corporation organized TO deal in the
stock OF another company, practice frowned
upon in recent trust decisions OF various courts.