The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-11-26
NO GIANT BEEF COMBINE
PROMOTERS UNABLE TO PERFECT
THEIR HALF A BILLION SCHEME.
Left with Ninety Million Dollars of
Property on Their Hands-Hitch
Over Terms.

NEW YORK, Nov. 25.-Some time ago it
was announced that the packing interests
Of the country were about to form a gil
gantic combination, and later IT was re-
ported they would include all the live
stockyards in their scheme. Now the Com
mercial Advertiser says:
1.-The proposed United States Packing
C~ompany-the giant combination of beef
packers which was to have had a capital of
$500. 000.0 O0-is postponed indefinitely. If not
entirely abandoned. Incidentally the pack
ers who were most prominent in promoting
the combine are loaded up with a lot of
properties for which they paid large sums
OF money, and which were to ave been
turned over to the combine. 1t is said that.
including the amounts owed by the diff
ferent packing concerns that were to be
taken in and the money borrowed for the
purchase of plants whose owners would
not accept the new securities in exchange,
there is a total Indebtedness of nearly
$9O,OOO,0W now outstanding.
Armour & Co., Swift & Co., Nelson Nor
rs q Co., of Chicago, Cudahy q Co., of
Omaha. and Schwarzschild q Sultzberger
are the principal concerns which were to
be combined. A number of independent
en- over, and it was for these that the
money was borrowed equal to the purchase
price of the properties.
The m Company, of Hammond,
Ind, and the United Dressed Beef Com
pany, of New York, were taken over, and
some smaller concerns in Chicago and in
other Western cities were acquired for
cash. 1t is understood these properties were
apportioned among the big packing con-
Germs that were TO be in the new combina-
ton, and they borrowed money from their
own banks in Chicago and New York. taxi
ing title to the properties with the intention
of turning them over to the combine when
1t had been effected. In New York an un-
derwriting syndicate was formed which
was TO have furnished $50, 000, coo in cash to
pay for various properties acquired and
the floating debt of the companies taken in
exchange for the new securities.
"Dissensions have recently arisen as to
terms under which the combination was
70 be brought about. 1t is said Swift &
Co. insisted on the proprietors being taken
in on the basis of the actual business trans
the net profits being taken as the basis
under which the different properties would
be taken over. There were other reasons
bringing together the meat packers of the
United States. one being the unfavorable
monetary situation and another the atti-
tude of some of the big inanciers in New
York.
81. p. Morgan & Co. were interested in
the combination, but it is said Mr.. Nor
gan recently expressed his opinion frank
doned. Another reason given is the po-
litical opposition that would probably have
resulted from such a combination. 1t is
said the principal men interested in bring
ing together these interests were told plain
ly that the carrying out of their plans
would make trusts the principal issue in
the coming presidential election, and that
If the combine were brought about the
duties on dressed meats would be at once
removed.
1.-THE packing combination was to have
been one of the greatest industrial cor
porations in the world. 1t would have stood
next to the United States Steel Corpora
ton in capitalization, and ii would have
practically controlled the meat industry of
the United States, from the raising of cat
tie to the actual marketing of the products
at retail. In addition to owning all the
great ~stockyards OF the United States and
packing houses in which the various meat
products are turned out the company would
have controlled factories for the handling
of the various by-products. refrigerator
lines for the shipment of fresh meats, sup
ply depots for the selling of its products to
retailers, and in certain cases IL was ex-
pected retail shops would be opened by the
company"