The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1902-10-04

volume Of its business, to be effected
without his consent and his direction. -.
SO far-reaching is the. packing industry.
and so great it's influence upon the traf7
fic and trade of the country, that, Nor
gan felt he must be- in a position to stand
over the, corpora ton as a car lin it's in
ception, and in order to carry oute his
designs, he dared threaten to ruin one Of
the greatest branches of the industry; its
foreign trade. ~E~. ''>? r.
:: Perkins Investigation. IT. i
After Morgan decided to demand the
underwriting Of the bonds, he sent George
w. Perkins, his right hand man, to Chi
cago to look over the situation and report
back what he learned to Morgan. Per
kins went: to Chicago ostensibly to COM
plete the formation Of the harvester COM,
bination. 49, - :, - ~ - )
When he~returned to New York he said
repeatedly that he was in Chicago look
SO willing was he to give this information
that Wall street believed there was other
business in hand at the time. :. i.
| Perkins. did look into the condition
OF the harvester companies located at
Chicago, but his real mission was to In
quire, as vstealthily- possible, Just how,
far the negotiations With Kuhn, Loeb. &.
! Co., had gone. He learned that no agree
ment had been signed, but that an UNDER
standing did exist.
| Morgan's Threat -
When Perkins reported to Morgan, his
chief fastened to inform the packers
representatives that unless he, Morgan
was given the underwriting of $780, 000, 900
| bonds he would advance rates 10 cents
hundred on all dressed beef and provisions
| to Europe and reduce rates 10 cents a
hundred on all live stock shipments. I,
1 The packers realized thatjif this threat
! were put into execution their export bust
ness would be ruined. They knew that
they could not successfully combat the
man who holds the key to the European
trade, and who practically rules the At
! lantic.. However, one Of the three lea d.
4 ing packers; the man whose relations with
. Kuhn, Loeb & Co., were. the most friendly,
4 held out, against yielding to .Morgan's de-
4 mands. This 1t was that caused recent
4 reports of a hitch in the packers program
about which there was so much specu!a-
! ton, and which resulted in the story that
q the combine had. been abandoned.
4 :: Finally, G.. F. Swift oyerruled this mans
4 objections. He pointed out that sentiment
i should not be allowed to figure IN SO gil
/; gantic an undertaking.. He said that Nor
gan would surely carry. out his threat and
s. that In So Icing thes .dietat tor would at e
n single blow destroy "a business that II
4 worth an incalculably 3 greater ,5amouna
;. than the $40, 0oo, 900 retainer demanded.
! ~ =: =: Packers at His Mercy: -
q The packers were utterly at his mercy
They could either go ahead and, save
IS, 100000 and face Morgan's 'antagonism
, and POSSIBILITY ruin, or pay; the double fet
, demanded and let the capitalist have hi.
5 way. The latter course was decided upon
It is believed in Wall street that Nor
i CAMS latest and almost frantic efforts t.
l hurry the contamination of the shipping
| trust were prompted by the hope Of get
ting into a position, to control absolutely
|. the ocean-carrying trade, especially pack.
8 ers products. The best authorities herr
l declare that Morgan deems the packing
! industry as being Of such great impor
t lance that it has entered largely into hi
Z recent consideration of the shipping com
>bine. He foresaw the merger and knew
+ he could control the situation by control
: ing the sea-. With the control Of the At
: lantic shipping he could make or ruin an!
O trade that American meat packers nigh
It have with the old world, and this wal
d plainly pointed out to the packers by, tn!
e capitalist in his ultinatum. =.