The Providence news. (Providence [R.I.]) 1891-1906, 1903-03-27
Formation Of National Packing
Company Only Tentative.
ORGANIZED AS A TEST.
II II Passes Within the Laws Then The
Huge Combination VIII
Be Built.

New York. March reformation OF the
National Packing Company. announced
yesterday, with a nominal capital stock
OF Sl5.Ooo.0oo. marks the last step In
the effort of the beef packers 10 form a
trust
Although none OF the important plants
and companies controlled by Swift Ar
mour and Morris were included I'm the
concern chartered IN New Jersey last
week II was definitely stated In Wall
street that these companies will be pur-
chased later by an interchange of securi-
ties. and that the capital stock OF the Ma
tional Packing company will be increased
from time 10 time as the combination Is
enlarged until the aggregate will exceed
5000 1000
1t became known yesterday that the
beef packers have at last reached AN un-
derstanding as 10 the methods 20 he
adopted I'm forming their combination.
and the valuation at which their proper
ties will be taken into the new comoina-
ton. Difficulties which seemed insur-
mountable a few months ago. when the
project was abandoned have been
smoothed away, and the friction. mainly
OF a personal nature. has been eliminated.
Extraordinary secrecy has been pre-
served ever since the packers reached an
agreement and notified their attorneys to
go ahead with the legal steps TO form the
combination.
MET HERE IN SECRET.
II was stated in Wall street that all the
biz capitalists identified with the forma-
~. ..fs
last week attending to the final details
and that prolonged meetings were held
uptown and I'm Jersey City. The plan of
operation has been carefully mapped out
by the attorneys. Nevertheless IL is said
that the combination capitalized at $l5.-
100000 Is merely tentative plan put forth
20 discover the quarter from which oppo-
sition will develop.
In the announcement made I'm Chicago
, yesterday the list of companies taken
over by the National Packing company
includes property acquired n year ago
when the preliminary steps were taken
10 form the $500. 900. 900 Beef Trust
These properties were acquired by mem
hers Of the Big Four. IL Is argued that
II a combination OF these packing COM
panies be proved To be legal II follows
that large combination built upon ex-
actly the same lines will necessarily be
within the antitrust laws.
In certain financial quarters II was
plainly intimated that the beef barons'
are putting up straw man at which
the trust hunters can take thrust.
II their efforts are successful and the
combination is declared illegal and con-
trary Ia the interstate commerce laws.
the National Packing company will be
placed in liquidation and the properties
returned 10 the original owners. These.
Of course the Armouts Suiffs Nor
rises and Cudahys.
Al the same time the promoters of the
Reef Trust besides providing test case
for themselves. have turned the forma-
tion OF the National Packing company
into a we'll conceived effort TO consoli-
date the floating debt Of each interest.
which was established when the inde-
pendent concerns were purchased some
time ago. These acquisitions never have
have been financed. owing to tive fact
that II was expected that the big COM
bination would be accomplished within n
short time. So II happened that the
financing Of the purchases OF the inde
pendent companies was postponed from
time to time until the understanding
was recently reached The nominal cap
itaiization OF SIS, 900 900. II is thorough
piish this purpose
MEN IN THE COMPANY.
The directors OF the National Packing
company, comprising J. Ogden Armour.
@. r. Swift, Edward Morris, J. II. Ly-
man, T. A. Valentine. Arthur Meeker, l..
A. Swift. r. r. Swift. Ira Morris, James
ID. Standish and Kenneth X. McLaren.
Indicate that the reports sent out from
Chicago that the new company was form
ed 10 compete with the Armour Morris
Swift combination are entirely erroneous
All the directors with the exception OF
Kenneth X. Mcl>aren. who IL the New
Jersey director and is the representative
OF the Corporation Trust company OF New
Jersey. are identified with the packing in
terests OF this country.
It was noted I'm Wall street that the
beef men did not seek the assistance OF
deal. IL wac pointed out In this connec-
tion. however. that the formation OF the
tentative company did not call for a
great amount OF cash. and all that was
required supplied from within the
trade itself. Very little regarding the
fotation OF the company could be learned
In banking quarters. acas at the Office OF
the Corporation Trust company OF New
Jersey all Information was strictly guard
ed. Representatives OF the company, In.
Guiding Mr.. NcLaren. declined 20 discuss
the matter. IL WIS explained that the
corporation papers were filed through
them. and that they could give no infor-
nation.
In certain quarter. IN Wall stree, ~
was stated. however. that when the beer
packers are confident that no steps viii
the bigger proposition will be taken to q
syndicate OF New York bankers. and
whatever cash II found necessary will
then be supplied