Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1911-12-29
V[[D[R Tells Of
MERGER COLLAPSE
BILLION DOLLAR cs ANAr,oN
OF MEAT pAcks $ COULD
NOT Be FIN, 30.
BANKER scHiFF : couRAcEp
EFFORTS SECURE LOAN
Told Packers Time Was Not Propiti-
Gus for Promoting Big Corporations
and Plans Were Dropped-Witnsss
Tells How Thirteen Small Concerns
Were Gobbled.

Chicago, Dec. 29.-On cross exami
| nation Albert H. veeder, in the trial
| of the ten Chicago meat packers, today
described the collapse OF the billion
! dollar merger" OF the packing inter
ests planned by Armour, Swift. Nor
ris and Cudahy in 1902.
He said the formation of the giant
corporation was abandoned at the
close of conference in New York
shortly before Christmas, 1902, be-
tween the promoters and Jacob H.
Schif, manager for Kuhn, Loeb & Co.,
In which plans for financing the pro-
! ject were discussed. A loan of 100000
600 was desired and later this was re-
duced to $60,00O.O00 and the capitali-
cation reduced from close to the bill
lion dollar mark to s525. 900.
Mr.. Veeder said Mr.. Schir told the
packers that the times were not pro-
pitious for launching large merger.
and advised against 1t. The witness
! said Mr.. Schiff's talk was gloomy and
had such depressing effect upon the
! packers that the whole plan was
o.
conference.
| The direct examination of Mr.. Wee
der was concluded after several hours
had been taken up by consul OF both
sides arguing on the testimony touch
ing the operations OF certain contribut-
ing corporations to which the defense
objected. Judge Carpenter reserved his
opinion.
| Absorbed Thirteen Small Concerns,
How Gustavus +. Swift. now dead; J.
Ogden Armour, and Edward Morris
the big three" in the alleged packers
| trust-gathered in thirteen of their
smaller competitors and finally dropped
them into the National Packing Com
pany. was put into the trial record yes
! terday.
Secret agents were employed by the
big packers in most Of the negotiations
Tor their competitors properties. When
nnal papers OF sale were signed all the
small packers agreed not to engage in
the packing business for a period of
! fifteen years
! 1t was Albert III. Veeder, veteran at
torney OF the packers and guiding gem
ius In their operations. who gave up
! original contracts and copies which en-
abled the government to get some Of
the most important evidence to be in
troduced. MIR. Veeder spent his third
| day In the witness chair, and still did
not finish.
After "Blind Pig" Evidence.
Efforts Of the government to get into
the record the inside story OF the pur-
pose and accomplishments of several
blind pigs" used, it is alleged, to aid
the old packers pool. brought forth
heated objection. The jury was ex-
+, cused and counsel spent the last hour
OF the afternoon session arguing the
admissibility Of the evidence. Judge
! Carpenter interrupted the arguments
and adjourned court. apparently hav-
ing decided to cut the debate short and
! announce his decision this morning He
indicated he favored admitting the evt.
dence.
| Three of the companies the govern
ment will attempt to trace to connec-
tlon with the old pool are the Kenwood,
or oil trust: Aetna Trading Company,
and the Oppenheim company, handling
castings and other by-products. 1t Is
alleged they were uesd to initiate" the
test cost price, the alleged basis of the
trust prices. Their operations will
show that the trust" embraced all by
products OF the packing industry and
every phase of the business
Lord Originator Of Merger.
| LORD Panmure Gordon of London 4
noted British financier. appeared in the
testimony of Mr.. Veeder as the real
originator Of the giant merger planned
to supplant the old pool Mr.. veeder
said Lord Gordon or an agent made
| the suggestion TO Gustavus +. Swift,
who first laughed at the proposition to
form combine with all packing COM
panies of the country involved.
| Later, said the witness, Mr.. Swift
| adopted the idea as logical and practi-
cal and In the early part of 1902 called
the attorney to his south side mansion
late one night and revealed the merge err
! plan to him. Plans had progressed so
! far already, said Mr.. Veeder, that An
derson Fowler was present with Mr..
Swift and had agreed to sell his prop
critics. The session lasted until mid
night
Gather in the Contracts.
| The result was the gathering in with
in few months Of contracts for the
purchase Of most all the other packing
companies in the country. Associated
with Gustavus F.. Swift were j. Ogden
Armour and eEdward Morris. forming
"the great triumvirate." Michael Cuda-
ny was not invited to the first meet
ings. but later went in as an individual.
only to drop out afterward when the
government started after the alleged
trust.
! Companies that were finally bought
up by the trio were not disposed OF as
originally intended. It had been plan
ned to merge them all in the 1923 .00O,-
600 combination. later shaved down to
3h23 100000, but financing the deal fall
| ed and the National Packing Company
was erected with the bought Mp con-
Germs absorbing all the capital stock of
! . paltry $15,000.000.