Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1911-12-27
Chicago Attorney in Govern
ment Suit Now On Trial in
Chicago Tells Of Proposed
Giant AmaIgamation.
EFFORTS TO FINANCE
IT WERE UNSUCCESSFUL
Armour Swift and Morris In
tereStS Were to Be Included
in Giant Corporation to Con-
troll Meat Industry,
lBy Morning journal snecIal Leased wIrel

Chicago Dec. 26.-Details of the
plan for a 100000, 600 merger of
the Armour Swift and Morris inter-
ests in 1902, By which the govern
ment contends it was sought to con-
troll the meat industry Of the coun-
try, were revealed today in the trial
of ten Chicago packers before United
States District Judge Carpenter.
The contract, which was dated May
81, 1912, was read to the jury and
offered in evidence by counsel for
the government.
The original agreement was pro-
duced in court by Albert Ii. Veeder,
attorney for Swift and company, who
was called bysthe government at its
first witness.
Attorney Veeder testified that the
plans for the giant merger were
abandoned and that in March, 1908,
the National Packing company was
organized to operate certain indie
pendent packing companies purchas-
ed with a view Of including them In
the big company.
Under the terms of the agreement
the three large packing corporations
and their subsidiary companies to-
gether with recently acquired inde-
pendent comrNnies were to be merg-
cd into one ant concern, Armour,
Swift and Mod totreceiye bonds and
preferred stock of the new company
in payment for the value of their
tangible property.
In addition to this the promoters
were to receive 100000 worth of
the new company's stock for intangi-
Bile property and II large block OF
common stock for their good VIII,
this amount to De fixed by the earn
ings of the different plants during
the first year of the new merger.
The promoters planned to borrow
500 700, 900 TO finance the giant cor
poration. The appraised valuation
of Armour, swift, Morris and their
subsidiary companies was given at
SlS0000, 900. Each of three promot-
ers deposited $1,000,000 with Chi
cago bank as an evidence of good
faith. but they were compelled to
drop the plan because OF the failure
Of certain New York capitalists TO
furnish the funds needed.
Veeder was on the witness stand
throughout the day and will con-
tinue his testimony tomorrow
Previous to the calling of Veeder
to the stand the defense made an
unsuccessful attempt to have exclud-
ed from the governments case all
transactions prior to 1905, on the
ground that the immunity pea
which freed the packers when they
were indicated seven years ago should
apply to that period.
Counsel for the packers put their
motion in writing but Judge Carpen-
ter. while reserving his decision 10
give the government time to reply
indicated that he may deny the mo-
tion.
Veeder at the beginning of ms
examination today admitted that lhe
packers had an organization Whlch
met every Tuesday afternoon IN
building on the same floor with ms
law office and that his son, Henry
Veeder acted as secretary In l9uV'
1901 and 1902.
He did not know the name OF the
association and did not know Whe'
business was transacted at the meet
ings He said he never attended any
of The meetings. The witness SAID
books and records of the meetings
We're kept but he did not know where
they were now.
The government contended that II
was at these meetings that the prlce
Of meat was fixed and plans for the
suppression of competition laid.
Veeder was questioned regarolhs
the Kenwood company and the aetna
Trading company but protessed ls-
ncranee of their business.
He admitted the Kenwood company
was organized in his office bur salu
he was not present at the time
The witness said he had heard that
at the pool meeting the different
companies and the territories allotted
TO them were designated by letters
He said territory "Ap was north OF
the Ohio river and east of the Mis-
souri, river He said Armour was
known as "a" among the companies
He did not know the letters used to
designate the other members of the
alleged pool
He said the association of packers
was dissolved in 1903 and his son
VINO had acted as secretary, was tax
en- into his law office as a partner.