Omaha daily bee., 1911-12-30
Former Secretary of Old Packers
Combination Tells of Dividing
Country Into Sections.
PRICE DETERMINED EACH WEEK
Values of Fresh Beef and of Cattle
Fixed at Meetings.
sCHIFF PREVENTED BIG MERGER
Depressing Advice Later Vindicated
by Coming of Panic.
THREE PLANS THEN CONSIDERED
Third scheme tO Put Thirteen Com
Germs owned by Packers Into New
Organization Adopted by Form
ing National Company.
PRICE DETERMINED EACH WEEK
sCHIFF PREVENTED BIG MERGE1
REE PLANS THEN CONSIDERED

CHICAGO, Dec. 29-Direct evidence
that packers pool was in existence from
1898 to 1896 and that It. after suspending
operations two years, resumed control OF
the country's fresh meat business, was
given today in the packers trial by Henry
Veeder, who admitted that he acted as
secretary Of the organization.
1t was the first positive testimony Of
fered by the government regarding the
existence of the old pool which 10 is said
met under the name of "Postoffice Box
No. 247," every Tuesday afternoon on the
sixth floor Of the Counselrnsn building,
Chicago, to fix the price charged for
fresh beef. to agree on the price to be
paid for cattle and to allot among its
members the amount Of meat to be
shipped into the different centers of
distribution.
Henry Veeder, who is a son of Albert
II. veeder. the veteran attorney for the
packers followed his father on the stand
as the second witness called by the gov
ernment His story of the inside work.
ings of the old packers pool was not
half finished when court adjourned. He
admitted many OF the material allegations
made by counsel for the government In
their opening address to the jury.
Between 1898 and 1885, the members OF
the pool were Armour & Co.. Armour
Packing company. Cudahy & Co., G. H.
Hammond &Co., st. Louis Dressed Beef
and Provision company Morris & Co. AND
Swift and Company, according to Henry
'Veeder.
In 1898 schwarzchild sulsberger
entered the combination, the witness
said.
Describea Weekly Meetings.
He described the meetings held every
Tuesday afternoon, at which he said re-
ports of the last weeks business OF the
different members were received and the
allotment Of the next weeks business
was divided on a percentage basis.
The witness said the country was
ReographicalIy divided into five sections.
each known by a letter Of the alphabet
and that each Of tho members OF the
alleged pool and that each member OF
tho pool was similarly dezisuatsd 70
prevent publicity,
Ha testified that o record was kept Of
che amount Of meat shipped to the dif-
ferent branch houses and weekly stete-
rnents were sent to the members show
ing the cost, average price received ana
the margin Of profit on fresh beef IN
the different cities.
The witness gave a minute description
OF the intricate system used by the al
legged pool in keeping its accounts ana
transacting its business.
Attorneys for the defendants made an
unsuccessful effort TO prevent the wit
ness from answering questions regarding
the inside workings of the packers pool
but Judge Carpenter overruled every OBJ
lection and directed the government to
proceed with the presentation OF its case.
Schiff Prevented Merger.
Albert II. Veeder. who was cross-ex-
amlned by Attorney George T. Bucking-
ham. told of attending meeting OF pack
ers in December, 1862, at the office OF
Kuhn, Loeb & Co. in New York at which
plans for financing the big merger were
discussed with Jacob H. Schiff.
HE said conditions in the money mar
ket were not propihous." said Mr.. Veeder.
His talk so depressed the packers that
the idea of the big merger was dropped.
In a few months the fears Of Mr.. Schiff
were realized and we had q panic"
The witness then described the plight Of
the packers after the collapse Of the plans
for the big merger.
"They had thirteen packing companies
CONTINUED on Second Page.)