The Richmond Virginian. (Richmond, Va.) 1910-1920, 1911-12-22
Says 1t Was Quite the Thing
to Do So in Good
Old Days
TRUST FELL DOWN
TRYING TO OBTAIN
SoO,OoO,OOO LOAN
Action of Hartman and Kuhn
Loeb & Co. Made II
Necessary for Packers
to Aid Themselves

10 Ala nemSeiVeS
CHICAGO. Dec. 21.-Two DEVELOPS
ments stand out in today's story Of
the trial of the beef packers. One
tells the details OF how z. II. HarYi-
man. and Kuhn. Loeb & Co., failed
to furnish $s0.000,000 and live up to
an agreement in 1902. which was t.
have given the Armours. Swift and
Morris interests absolute control oe
practically all the packing industry
in America The other contains the
frank admission on the part Of the
packers that a pool" existed prior to
1902 In which the beef barons met on
Tuesday afternoon and parcelled out
the business which each would do In
different parts Of the country.
1t was further admitted that the
National Packing Company. which
was to have been the head Of the
country's fresh meat industry, was
organised to take over some $16.0o0.r
600 worth Of packing plants, which
the packers bought In preparation for
| the trust coup which failed.
Col. George T. Buckington. speak-
ing for the Swifts In the opening
statement for the defense. admittetl
all the iniQuities Of the old ''p00l''
with the exception of the charge Of
fixing prices. speaking Of the pro~
posed giant combine as quite the
| thin~ In those days" and saying that
| the National Company was organised
to- take care OF the wreckaxe Of what
was to have bon admittedly an illogn1
combine in restraint Of trade.
Pool I'm Counsel.
Incidentally by appearing for the
| Swifts. Col Buckingham paved tha
way for the government<to prove BY
the present record that there II =
combine OF interests. He formerly
| the last documents filed SO record
| him. The government will contend
| that the defense is supported by 4
pool that lawyers appear for different
branches OF II az the notion seixee
| them.
At the opening OF the session Judea
Carpenter ruled against the excSp-
| that counts two and three be IGNORED
and that the secret attempts OF Ed
| ward Tilden to gain control OF the
Schwarzch1ld and Sulzberger concefn
be excluded from the evidence. He
! left the impression that he would rule
against the motion to take the CO.
| from the jury.
Col. Buckingham told Of tha fovrs,a =
ton OF the merger on May 81, 1909.
Dryden Armour. Edward Morris and
Gustavus Swift having conceived the
idea OF giant combination stmilar
| to the steel trust. When the audito
OF the three companies were complete
| the properties OF the Swift corpora
ton were valued at $4,000, 900, The
Armour corporation at $4,000. Gee
and the Norris corporation at $1E.-
10000 The percentage which ther
| nxed between them in that trannaca
ton was 1870 per cent. for Swift, -.
II per cent. for Armour and 1918 penl
cent. for the Norris properties.
Buying Out Plans.
Now It was further agreed" aaitns
Mr.. Buckingham. that those parttss
should 60 out and buy for the pur-S
poses Of this same transaction such
plants az were desirable to have tntnS
It and which might be agreed on b..
tween them, and that the three oes
them should buy those on Joint an-
count and own them on joint account
I in the same proportions az those -
| certained by the fixing of these -.
spective values ss
In June and July Of 1909 J. o.
den Armour purchased the Ham-s
mond Packing Company and tho a. q
| II. Hammond Company: Edward
Morris purchased the United ORE.
| cd Beef Company and Gustavus 6WffSs
| purchased the Omaha Packing CorI~S
| gentlemen paid out his own monavrl
to buy those and ostensibly paid for
them himself. but he bought thsH
under the contract which covered -
major transaction, as matter o1s
fart, and they were owned In thn5
| same way.
Each man went and made pur.f
chases under that arrangement. anAs
made them quick. SO that the pAnasa
MA around 10 thu
know that they were buying then, al
Did Not Get Millions
Now, to carry out this great traM0lR
action they had some co-adveHIuxut
who were financiers, and their pa1Ea
in this thing was to furnish 90
| $so.00O.000. When they got down
New York for the purpose Of cloo1l5
| up these transactions, after hAyt
| bought and had owned these peN 4
ertiec in the faahion have descS1he
| the winds Of the financial seaa
| not look good, and the hnaAc
did not come forward with the erN71
| 600. 900, but with vary much nnf
amount, which made tt impoGaib1S
carry through that transact1on, -
tho net result Of thar was tAaA
fell down. ~ SsS u
| Gustavus Swift. ]. Ogden Ar
and Edward Morris with e1t,0e4
! worth Of property which th4W
bought on joint account anA II
| OF such Z character tAat 4
mot bs divided = any rsaas11
Eyay among them. E1ar&AG1
! they had bory0Wed- mOnav 11S
Epurpose Of mGaE1n9 thene 1Bn1
hscsrss even Arqe b1e
l'tocav gentfenan, ~ ~ 49,
~. eeN aroanA - IT, &
and thses gantte1nea