Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1911-12-28
MERGER OF 1912.
Continued from Page one.)

The witness said the combination began
negotiations for the purchase Of
Schwarzschild & Sulsberger in 1902, the
intention being to include it in the big
merger, but the purchase was never
made
In July. 1902. Michael Cudahy became
party TO the agreement for the merger
and the Cudahy Packing Co. was taken
into the combination" said the witness.
The government brought out that all
the contracts for the purchase of com
peiing concerns contained a clause which
prohibited the persons making the sale
from engaging ia the packing business
for a period Of Is years after the date OF
the sale.
Mr.. Veeder produced copy of the
agreement dated Nov. IS. 1909, made by
the combination promoting the merger
for a loan of coo from Kuhn, Loeb
x Co. of New York by Jacob H. Schiff.
This agreement was made after nego-
tiations between the parties which last
ed through the summer of 1902" said Mr.
Veeder. Kuhn, Loeb & Co. said the
packers could have the money under GER
tain conditions and finally the terms
close the deal and get the 100000, Ja-
cob Fl. Sehif. manager for Kuhn, Loeb
& Co. scented the panic which came a
year later and the whole deal was de-
clared off"
The witness then described the or
ganization of the National Packing
Co, March is, i903, with a capital
stock of, $i5,00O,00o, which the gov
ernment contends has been used by the
packers combination to continue the
old price fixing pool which previously
existed. The contract for the organ
ization of the National Packing Co.
was produced and examined by gov
erimept counsel
Another agreement introduced, was
dated july II. 1902, and provided for
a loan of $4,000, 600 to Armour, Swift
and Norris by the First National
Bank of New York. An agreement
dated Def 10, 1897. was read which
provided for a loan of $15,0o00 900 by
Kuhn Loeb Il Co. James Stillman and
E. II. Hartman to Armour, Swift and
Morris for use in financing the Ma
tienal Packing Co.
when Michael Cudahy was taken
into the deal for the organization Of
the proposed big company, new
agreement WAS drawn and signed by
Armour, Swift. Morris and Cudahv and
each deposited 81 100000 in a Chicago
bank as evidence of good faith" said
Mr.. Veeder These deposits were lat
er withdrawn when the organization
of the big company was abandoned"
The government introduced this
agreement after it had been read to
the jury The government offered in
evidence the contract entered into be-
tween the packers and. Kuhn, Loeb d
Co, by which the financiers We're TO
advance S9D.o00,000 for The floating Of
the big merger.
The name of +. IL. Gary Of the Unit
cd States Steel Corporation was
brought into the case. in the afternoon
session, when government counsel read
"a notation at the close of the con
tract for financing of the big merger.
The notation authorized attorneys
Veeder and Krauthon to execute the
for Armour, Swift, Morris
and cudahy with E. II. Gary as legal
representative of Kuhn, Loeb and Co.
and the syndicate
Contracts under when the colnDl-
nation of packers purchased the six
competitors mentioned by Veeder were
then read to the jury.
Under the teNhs of the agreement the
new company was to deposit $50, 000, 900 in
bonds and $7o,oOo,oo0 in stock with the
New York syndicate financing the deal
as security for the loan.
1.-THE syndicate was to remain in exist
ence one year and receive about $40 600 900
as compensation. Kuhn, Loeb & Co.
were to actas managers of the syndi-
cate and receive as compensation one
fifth of the syndicate's profit. 4
E. H. Hartman and James Stillman
were mentioned in the contract as MEM
bers of the syndicate making the Loan.