The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1897-03-21
MESSRS. SHUFELDT EFT Al. HAVE
AFFIDAVITS IN PREPARATION
FOR READING
AT THE TRIAL OF THURSDAY.
IN THE MEANTIME THE DEFENSE
Is RETICENTF ABOUT THE
CASE
PACKING HOUSE LITIGATION
Afhdavits Already Filed Therein
Promise Revelations of More
or Less General Interest.


about the suit brought by London cap
italists as related yesterday, referred
inquirers to his attorneys, Flandrau,
Squires & Cutcheon. Mr.. Squires said
that no answer would be filed for the
present, although counter affidavits
would be submitted at the hearing
Thursday.
Of the affidavits filed in the district
court by Mr.. Kellogg two one by Mr..
Wentworth, and one by Mr.
Flanagan, are given as having some
specia! interest. The affidavits were
here given:
u w. Wtnworth, in an affidavit tes-
tines to the reorganization of the Da-
kota Packlng company, with nominal
capital stock of ISL 600. BY the terms
OF articles OF incorporation after pay
ing preferred dividend of 21b per
cent quarter yearly to the preferred
stock, the balance of the net profits
were to be divided equally between
the common and preferred stock so
that $1,000 of common stock was to
nave as large an interest in the profits
of the concern in excess of Sc, 600 per
year as $4,000 of the preferred stock,
which arrangement it was expected
would make the common stock very
valuable. When the company was
ready to issue it's stock the preferred
stock was issued as follows:
In the name of the defendant, P. s. Shu-
feldt, $4,000; in the name of the defendant,
Frank Clifton, $1,000; in the name Of Fred
Aiken, an employee of the defendant Mime
sofa Packing and Provision company. 81 500;
IN the name Of William McCaw, another en-
ploye OF said defendant, Minnesota Packing
and Provision company, $500; in the name
OF one Montgomery, another employee Of said
defendant, $500; in the name of Anderson
Fowler, a stakeholder Of the plaintiff and a
relative of said Shufeldt 10000; in the name
of one Mclean, an employee of said Anderson
Fowler, residing at Chicago, 81 600; making
$4,000 Of said preferred stock issued to the
aDoVe-named parties all of which was paid
Tor by the defendant, P. S. Shufeldt There
was also issued in the name of one Michael
Gahan $1,000 of said preferred stock, and in
the name of Mrs. Shufeldt. wife OF P. s.
Shufeldt 800 of said preferred stock and
TO the deponent Wentworth, $1,000, which said
stock deponent paid for with his own money
and owned in his own right making in all
$4,000 Of said preferred stock which Was is
sued at or about the time of the organization
of said corporation, and no more Of said stock
was issued during the time deponent was
connected with the corporation as hereinafter
set forth.
That the common stock which was regarded
unoer the peculiar organization of the COM
pany as the most valuable stock, was at first
agreed that $500 of it. or one-haf.os should be
allotted to the Minnesota Packing & Provi-
sion company and the other half. of $500
was to be allotted TO the holders of the pre-
ferred stock pro rata according to- their, hold
1ngS, and this arrangement was carried out
and the stock was allotted and paid for; after
wards by direction of the defendant Shufeldt,
the $500, or five shares of common stock,
which had been allotted to the defendant Min
nesota Packing d Provision company of Min
nesota was issued to and in the name of the
defendant St. Paul Refrigerator Car COM
pany. That as soon 3as said stock was sub
scribed for, the board Of directors named in
the articles of Incorporation, to-wit: Fitz-
hugh Burns, Alfred b. Davis and Joseph d.
1Val nj rpoiJ OAd md III
holders elected in their places the deponent
G. w. Wentworth, the defendant, p S. Shu-
feldt and the defendant Frank Clifton, and
the board of directors organized by electing
depOnent as president, treasurer and general
manager of the company, the defendant Cliff
ton as vice president and one X. g. Parrish,
who was at that time employed by the defend
ant, Minnesota Packing 4 PROVISION Company
Of Minnesota as boOkkeepef or accountant,
was elected secretary, and that thereafter
said Farrish became the boOkkeeper or
cOuntant of said Dakota Packing company.
That deponeut continued such president,
treasurer and general manager Of said corpO-
ration for about four months. until early
in August, 1896 when he resigned his posi-
tiOn and sold his stock in said company to
said defendant Shufeldt. The company being
thus organized, commenced business with
only $43, 600 cash paid in on account of its
capital stock early in April, 1895, and during
said months of April slaughtered about 6313
hogs during May about 1906 hogs, during
June about 9,299 hogs, and during July about
a
hogs were purchased for cash, and cost ap-
proximately $S.25 per head making the ag-
gregate expenditure for hogs during said four
months of $272, 1888 and IN the natural and
ordinary course of the packing business it
would require $3.50 600 of available money,
either in the shape of capital belonging to the
company or in the shape of money borrowed
TO properly carry on said business, as 1t
takes from twenty to sixty days to prepare
the product of said hogs for market and get
return therefor
Deponent further states that for the pur-
pose of raising the necessary money to carry
on said business and buy said hogs and for
other purposes, the said Dakota Packing
company, through the influence of the de-
PENDANTS Shufeldt and Clifton made an ar
rangement with the defendant Minnesota
Packing and Provision Company of Mime
sofa by which the hams, New York shout
ders, Cumberlands ribs, tenderloinS, etc.,
constituting considerably more than half the
value Of each hog, were sod to the Mime
sofa Packing and Provision company at
price a little in excess of the quoted market
value of the same meats in the Chicago mar
ket at the same time. thus realizing for the
Dakota Packing company a profit over the
Chicago market and saving to said Dakota
Packing company the freight on said meats
from South st. Paul to the Chicago market
where as the market value of said meats at
South st. Paul was less than the market
value in Chicago by the amount Of the
freight from South ST. Paul to Chicago. or
about 1872 or 19 cents per hundred weight
plus a commission for selling in Chicago
put of said Dakota Packing company during
said four months, April TO July, 1896, in
elusive.
Deponent further states that ali those parts
OF the hogs slaughtered at said Dakota Pack
ing company's houses during said four
months which were not thus sold outright
TO the defendant MinneE1 ta Packing and Pro-
vision company. were delivered to said Min
nesota Packing and Provision company for
sale for the account Of the Dakota Packing
company at the instance and request Of the
said defendants Shufedt and Clifton the
reason assigned by them for such method of
doing business being that the product of the
Minnesota Packing and Provision company
had reputation in the market which en-
abled such meats to be sold at a higher price
than meats sold as The product OF an I'M
known concern like the Dakota Packing COM
pany could be sold for and thus the good
will and reputation of the Minnesota Pack
ing and Provision company used for the
benefit of the Dakota Packing company with
out compensation OF any kind, either as a
commission for selling or otherwise.
Deponent further states that during
all the time he was president treasurer
and general manager of said corpora
tion dividends were paid on the pre-
ferred stock monthly, equal to the
preference dividend thereon, or at the
rate of 10 per cent per annum, and that
the total profits of said business during
said four months were about 500 00O
or nearly so per cent of the capital
paid in. and that said dividends were
paid to the parties in whose name
the stock was issued, as hereinbefore
set forth. and no dividends or any
portion of said profits, were paid to
The defendant Minnesota Packing &
Provision company That during all
he time said deponent was connected
Nth said corporation the stock con-
, nued to stand inf the names of the
rites hereinbefore named as stock
lders of said Dakota Packing com