Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1911-12-28
Name of Former Head of Big Cor
poration is Brought Into Pack
erS Case by Witness.
CONTRACT PRODUCED IN COURT
Four Men Deposit Million Dollars
Each as Basis for Merger.
POOL OF PACKERS UNNAMED
Mysterious Gathering Was Known
as Postoffice Box 247.
HALF BILLION COMBINE PLANNED
witness says II Fell Through Be-
cause Promoters Failed to Get
LOan-NntiOnaI Company
Then Formed.

LORn-'NntionaI Company
Then Formed.
CHICAGO, Dec. 27.-Further details OF
the $500. 900, 900 corporation planned by the
packers in 1902 were recited by Albert II.
Veeder, attorney for Swift and Company,
who today continued his dramatic story
of the inside history OF the Chicago
meat packers combination.
For the first time in the trial, which is
staged before United District Judge Car
penter,t Michael Cudahy was named as
one of the four promoters OF the corpora
ton by the witness, Vcsoer.
Mr.. Veeder produced a contract dated
July Is, 1902, by, the telms OF which
Michael Cudahy became n partner OF J.
Ogden Armour, Gustavus +. Swift and
Edward Morris in the proposed merger,
each OF whom deposited S1,0Ooo0O In a
Chicago bank as an evidence OF good
faith in carrying out the plan.
The contract, along with half a dozen
other agreements, was read 70 the jury
and offered in evidence by the govern
ment counsel.
Inability to obtain loan OF S90,0Q0Ooo
from Kuhn. Loeb 81 Co., was respon-
sible for the failure to organize the
merger. according to Mr.. Veeder.
The witness told how the packers COM
bination acquired by purchase six COM
peting concerns in 1902 and how in March,
1908, the National Packing company WAS
organized with a capital OF Slb,OOO,oo0 to
operate these properties
Association without Name.
Albert H. veeder, attorney for Swift
and Company, continued his story Of the
operations of the packers prior to 1906,
when the trial of the ten Chicago packers
indicted for criminal violation of tho
sherman antitrust law was resumed to-
day.
lhe only name by which the old pack
ers' pool, which held secret meetings
prior to 1903, was known was "Postofflce
Box No. 247," according to counsel Tor
the government today.
This mysterious gathering. which the
government asserts sought to Fix tine
price of meats and suppress competition
at weekly meetings in the Veeder offices
had no name which Mr.. Veeder In his
early examination could remember.
Half million Combine Proposed.
Further secrets of the old association
of packers, which projected combina'
ton with $500 10000 capitalization which
was balked through the failure of eastern
bankers to loan S90,OOo,0OO, were expected
to develop through the testimony of Mr.
Veeder.
Pierce Butler, special counsel for thu
povernment. questioned Mr.. Veeder a
length regarding the agreement entered
into in 1902 between the Armour, Swif
and Morris interests to form SOJO,OOO'Oo
merger of packing companies.
The witness said an elaborate examina
tion of the packers books was made b.
expert accountants and the properties ap
praised by a committee of experts con
sisting of Thomas Connors, Thomas Z
, Wilson and Horace c. Gardner
"Was the appraisal of these properte
| ever made?'
"I think the work was completed, bu
no final report ever was made was IN
: answer.
. Mr.. Veeder said that under the merge
. agreement each of the contracting pal
\ ties was required to turn over at iea'
: 30 per cent of the stock of the concern
il was proposed 10 controi'
Plan to Buy six Concerns.
The witness produced the contrac'
made by Armour, Swift and Morris
Iune. 1902, for the purchase of six con
netting companies, prior to the organizi
tion OF the National Packing compan
The concerns acquired by the comeln'
ton at that time were;
y Nv, YORK, the Fowler Packing compan
he Anglo. American Provision compan
% the O. II. Hammond company tne OIhai az
- packing company ana the et' LOU
'e Dressed Beef and PROVISION ooLiIpany ~ .
r The witness said the combination pegs
is rogot,ations for the purchase OF Il
is scbwarschild g. Sulzberger company IN q
d merger. but the purchase was new
ie made. ,..-
Is In July, 1902, Michael cudahy beean
lr party 10 the agreement Tor the mers
and the Cudahy Packing company WI
As taken into the combination said
lie witness. A..
The government brought out that
IN the contracts for the purchase OF cor
is netting concerns contained clause whi'
m nrobibited the persons making the 50
It from engaging in the packing busine
". sor period OF fifteen years after
Of date Of the sale.
es Unable TO Get Loan.
es AR yeeder produced copy OF t
ne agreenent dated November -, 1902 ma
ne NV the combination promoting the mera
a for a loan Of $9O,OOO,OOO from Kuhn, Lo
IL 3 Co. OF New York by Jacob II. schitt,
g This agreement was made al
oh negotiations between the parties whi
lasted through the summer OF lSOz' 81
Mr.. Veeder. Kuhn, Loeb q CO. sara
packers could have the money un'
- certain conditions and finally the ter
D ,,,.re dscided on. When it came time
o,osa the deal and get the sSo.OOO'
Ter Jacob II. schiff. manager for Kuhn. Ia
ed & Co. scented the panic which came
to wear later end the whole deal was
,es ciared off"
To- Tbe witness then described the org