Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1911-12-28
Attorney Veeder Produces
Contract by Which Four
Big Companies Planned to
Control Banking Business
FAILURE OF LOAN
STOPPED THE DEAL.
Organization of National
Packing Company, Firm
Now Attacked, Then De-
scribed by Witness.

OF the $500 100000 corporation planned
by the packers in 1902 were recited ~
Albert H.tVeeder, attorney for Swift
& Co., who today continued his drama
tic story of the inside history OF the
Chicago meat packers combination,
For the first time in the trial which
is staged before U. s. District Judge
Carpenter. Michael Cudahy was named
as one Of the four promoters Of the
colossal corporation by Witness
Veeder.
Mr. Veeder produced a contract
dated July IS, 1902, by the terms OF
which Michael Cudahy became a part
ner of J.. Ogden Armour, Gustavis r.
Swift and Edward Morris in the pro-
posed merger, each OF whom deposited
100000 in a Chicago bank as evi-
dence Of good faith in carrying out the
| plan.
The contract along with half dozen
other agreements was read to the jury
and offered in evidence by the govern
ment counsel.
Inability to obtain q loan Of $50, ,O00,-
1000 from Kuhn, Loeb 81 Co., was res
sponsible for the failure to orgaUi1G.
the merger, according to MI. Vecdbr. q
| The witness told how the 1paca u
lcomhination ACQUIRED by purGfas6 ri
competing concerns In 1902 and s
/ in March, 1903, the National Pack
Co., was organized with capital I6f
| 81 s ,O00, 900 to operate these properties.
| Albert H. Veeder. attorney for Swift
& Co., continued his recital on the
witness stand Of the inside history Of
the packers combination when the
court convened today.
The only name by which the old
packers pool which held secret meet
ings prior to 1903 was known, was
"postoffice box No. 247," according to
counsel for the government today,
This mysterious gathering which the
| government asserts sought to fix the
price OF meats and suppress competi.
tion at weekly meetings in the veeuer
offices, had no name that Mr.. Veeder
In his early examination could remena-
ber b s5s
Further secrets OF the old associ.
alton Of packers which projected .
combination with $5O0,0OO,000 copital-
ization which was baked through the
failure OF eastern bankers to Io1n
$9O,O00,OOO, were expected to develop
through the testimony Of Mr.. Veedsr.
| Witness Produces Contract.
| Pierce Butler, special counsel for
I
| er at length regarding the agreement
entered into in 1902 between the Arm
our, Swift and Morris interests to
form $5oOOOO,000 merger OF packing
companies.
The witness said an elaborate exam.
| ination OF the packers books was
made by expert accountants and the
! properties appraised by committee
of experts consisting of Thomas Con-
hors, Thomas E. Wilson and Horace
G. Gardner
WAS the appraisal Of these proper
ties ever made?"
~ think the work was completed
but no final report ever was made,
was the answer.
Mr.. Veeder said that under tho
merger agreement each OF the con-
tracing parties was required to turn
over at least 30 per cent OF the stock
of the concerns it was proposed to
consolidate.
The witness produced the contracts
made by Armour, Swift and Morris in
June, 1902, for the purchase OF six
competing companies prior to the or
ganization OF the National Packing
Co. The concerns acquired by the
combination at that time were:
| The New York Dressed beef Co, OK
New York, The Fowler Packing Co.
The Anglo American Provision CO..
! the G. H. Hammond Co, the Omaha
| Packing Co., the st. Louis Dressed
Beef and Provision Co.
The witness said the combination
began negotiations for the purchase
of the Schwarzschild and Sulzberger
in the merger, but the purchase was
never made.
| Panic Stops Proposed Merger.
"In July, 1902, Michael Cudahy BE-
came a 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
! competing concerns. contained
clause which prohibited the persons
making the sale from engaging in the
! packing business for period OF IL
1 teen years after the date of sale.
Mr.. Veeder produced the copy Of the
agreement dated Nov. 18, 1902, made
|