The Montgomery tribune. (Montgomery City, Mo.) 1892-1910, 1910-01-28
FEDERAL GRAND JURY CALLS
FOR EMPLOYEES AND BOOKS
OF THE BIG PACKERS.
WATCH PLACED ON WITNESSES
National Packing Company is Concern
Which Is Believed to Fix Prices
to Be Closely Questioned
About the Matter.

Chicago.-The work of prepar-
ing the case of the government
against four big meat-packing con-
Germs of this city to ascertain
whether they have operated to control
the prices of fresh meats was begun
in the United States district court
Monday before Judge K. NJ. Lands. A.
special venire of jurors appeared be-
fore Judge Lands and 90 men were
chosen to compose the grand jury,
that is to hear the evidence and de-
eide whether indictments shall be re-
turned against the packers.
The firms against which the govern
Armour & Co., Morris & Co. and the
National Packing Co., which 1t is al
legged is controlled by the other three
for their common benefit. Early Mon
day deputy United States marshals
were started out with more than a
score of s%ubpoenas and writs to bring
before the grand jury employees and
books of the concerns involved.
The government expects to prove
that the National Packing Co. fixes
the prices for all members of the beef
trust. The same prices are bid for
cattle, hogs, sheep, lambs, calves. The
only Sids which differ are made by
representatives of small independent
packers or shippers. When this source
is supplied, the great bulk of the
product goes to the packers at their
bid.
Daily they refuse to take the full
supply of cattle and hogs, which
amounts to not more than 60 per
cent of the supply last year, but have
the animals in the pens for a day or
two and then buy them cheaper on
the claim that they are STALE"
Coincident with this action at the
yards, lne packers dominate the pro-
vision pit o. the Board of Trade. This
power enables them to raise the
prices of their products, and distribute
at board Of trade prices all over this
country and Europe. This manipula-
ton has destroyed public speculation
In the provision pit. 1t is an old axiom
that a Spectator may be fright" on
provisions yet lose all his money. The
pit is "milked" the year around, and
although provisions prices are higher
than at any time in 40 years, no out
slider has made a dollar.
The panic of two years ago hit the
packers hard on the matter of getting
accommodations from banks. When
the high tide of prosperity returned
last summer, Armour put an issue of
$4,000, 900 Az per cen bonds, part
of a total of $50, 900, 900. For the first
time in the history of the business,
the company made a public statement
of assets. Swift. & Co. increased its
capital stock $40, 900, 900, Morris & Co.
put out $4,000, 900 Of bonds and
Cudahy SIS, 1000, 900. This was done to
meet any future money pinch.
The first statement of earnings
given TO the public by Armour & Co.
last summer, when the new bond issue
was offered, showed that for the pre-
ceding year the net profits applicable
for dividends were s7,127,000. This
was at the rate of 1916 per cent on its
500, 000, 900 of capital stock. Swift &
Co., for the year ending Oct. 1, 1909
after writing off liberal estimates for
depreciation, showed net earnings OF
1856 per cent on it's $780, 00, 900 OF
capital stock, as against 1876 per cent
on its $780, 900, 900 capitalization the
year previous. The Swift stock has
been increased $40, 600, 900 in 10 years