The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1911-12-28
CONTINUES PORTRAYAL
OF BEEF PACKERS AS
FRENUED FIAAMCIERS
Albert II. Veeder Resumes Story
of How They Tried To Form
$75O,00O,OO0 Combine.
HARTMAN REFUSED AID.
Governments Attorneys Try To
Show Defendants Have Made
Huge Profits in Business.

CHICAGO. Dec. 27.-Elhert III. Wee.
der. father of the packers trust,
resumed the witness stand today in
the trial OF the beef barons, armed
with new bundles OF contracts and
records which the government attor-
neys will place before the jury.
The chief of these are the contracts
leading mp TO the formation of the
kcnwood and Aetna companies, known
rs the blind pigs" OF the early pack.
ers' pool. Ii was through these cor
porations that the packers were en-
abled. the government alleges, 10
control the prices OF all dressed meats.
Retaining control of their own plants
aud acting Independently, according
10 the government attorneys, under
cover of these companies, they dom
mated the industry prior TO The for
nation OF the National Packing Co.
Federal District Attorney Wilker
son stated at the opening of court
that he would spend a week in intro
ducing evidence of historical nature.
tracing the negotiations OF the pack
-ers with each other from the incep-
ton of the industry. Then he will
take up the acts of the individual de-
PENDANTS leading up 10 the charge OF
conspiracy.
Veeder's testimony and the necords
he produced show that for years prior
20 the final combination OF interests
the packers sought consolidation
which they were unable TO perfect
because OF the contemplated enor.
nous load of watered stock they IN
tended 10 carry In 1902, they were
forced TO abandon their plans after
each had pledged $l,000,000 in securi- |
ties for the combine because E. II. !
Hartman and other capitalists re-
fused to contribute $90,000.000 TO
scheme capitalized at 500, 900 900 and |
which carried less .han 5000, 900 900 !
OF actual values.
Harriman's refusal and shaky finan- I,
cial conditions forced the packers TO !
continue with their Kenwood and |
Aetna companies until the time was |
ripe for the National Packing Co. a /
corporation described as "combna- |
ton Of odds and ends" and into which |
were merged all the subsidiary selling /
companies OF the trust magnates.
Under examination by Attorney I
Pierce Butler for the government. Vtv-
der produced the records leading up
to the formation OF the National Pack !
ing Co. "A series OF contracts and OPP /
tons We're read to the jury which /
showed that during June. 1902, the
United Beef Co., the Fowler Packing
Co. the Hammond Properties and the
st. Louis Dressed Beef and Provision
Co. were acquired by the defendants.
According 10 the records the packers
secured property. capitalized at $780,
100000 and 100000 acres OF ranch
lands through these deals. number
OF banks went in with the lot when
the control passed Later the Sulz-
berger Company was acquired and all
these concerns were operated through
the National Packing Co.
Veeder then showed by the records
he handed to the government attor-
neys that after Hartman had refused
10 advance $90.O00,000 for beef com
Tine IN June. 1907, the packers took
The question OF financing mp with
Kahn. Loeb & Co. jacob RI Schiff
ard the Stillman- Standard OH inter
ests and in December 1902. these in
ferests advanced sufficient funds TO en-
phle the packers TO take mp their OPP
lions OF all the properties they had
=
tlnnal Packing Co. was launched.
Attorney Butler brought ort that
Kahn. Loeb & Co. aud the Stillman
Interests Advanced s15.00000 for the
formation OF the combine, The pack
rrs contributed $S.000.O00 10 the com
finatian bit they were forced by the
ea tern flnanciers to pledge all OF the
properties they sought 10 merge, capt.
tallzed at over $300.00O 900 with Kuhn,
: och e Co. as security for the loan
TIE St5.000.000 was repaid within
ihree years According to District
attorney Wilkerson the government
riil 81 ok that tie loan was repaid out
o. hidden profits II Is declared that
the government will show that while
fiatements showed that one OF these
National Packing subsidiaries lost
f. 200 600 during rs first wear, II really
made profit of $4,000, 600 in the three
years before the loan was repaid