The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1911-12-27
PACKERS TRUST
FATHER TALKS
veedsr stu on the Stand Telling
About That Combine 9. the
Great Meat In
terests.
WAS GIGANTIC CONCERN
Borrowed st5,ooo,ooo Which Was Re-
paid In Three Years by
Monopoly Of the
Business.

lonilea Press Leased Wire Service.
CHICAGO, Dec. 2T--Albert Fl. Weed
er rather of the packers trust" re-
sumed the witness stand today in the
tr1al OF the beef barons, armed with
new bundles of contracts and records
which the government ATTORNEYS will
place before the jury.
The chief of these are the contracts
lead1ng up to the formation of the
kenwood and Aetna Companies
known as the blind pigsu Of tha
early packers pool 1t was through
these corporations that the packers
We're enabled to control the prices OF
all dressed meats. Retaining control OF
their own plants and acting indepen-
IDENTIFY, according to the government
attorneys, under cover OF these COM
panies, they dominated the industry
prior 10 the formation Of the Ma.
tional Packing Company.
Federal District Attorney Wilkerson
stated at the opening of court that
ne would spend week In Introducing
evidence Of an historical nature trac-
Ing the negotiations of the packers
with each other from the inception of
tne industry Then he will take UP
the acts of the individual defendants
leading UP to the charge of conspiracy.
Veeder's testimony and the records
ne produced show that for years prior
to the final community OF interests
the packers sought a combination
which they were unable to perfect be-
cause OF the enormous load OF water
ed stock they intended to carry. In
| 1902 they were forced to abandon
their plans after each had pledged ST..
100000 in securities for the combine
because e. H. Hartman and other
capitalists refused to contribute $780,
00O,O00 to scheme capitalized at
| $750,000,000, and which carried less
than $2o0,000,O00 of actual values.
4 Harriman's refusal and shaky finan-
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 a "combina-
tion OF odds and ends"
o1ioIl SAoihlidllOl Uy ALIOTHGy
: Pierce Butler for the government.
: Veeder produced the records leading
up to the formation Of the National
r Packing Co A series of contracts
J and options We're read to the jury
, which showed that during June 1902
) the United Beef Company, the Fowl
, er Packing Co., the Hammond proper
: ties and the st. Louis Dressed Beef
, and Provision Co., were acquired by
} the defendants According to the
records the packers secured property,
capitalized at S500,000,000 and IT,
G00,00 acres Of ranch lands through,
these deals. A number Of banks went
in with the lot when the control pass
] ed. Later the Sulzberger Co. was ac-
/ CURED and all these concerns were
r operated through the National Pack
!, ing Co.
: Veeder then showed by the records
l that he handed TO the government at
torneys that after Hartman mad re-
: fused to advance s90,000,o00 for a
: beef combine in June, 1902, the pack
: ers took the question of financing UP
: with Kuhn, Loeb & Co, Jacob H.
Schiff and The Stillman Standard OH
9 interests, and in December, 1902,
Y these interests advanced sufficient
: funds to enable the packers to take
UP their options of all the properties
t they had secured. Six months later
1 the National Packing Co. was launch.
. ed.
Attorney Butler brought out that
Kuhn Loeb & Co, and the Stillman
interests advanced s15,0O0,o0o for the
: formation of the combine The pack
: ers contributed $S,O00,o0o to the com
/ bine, but they were forced by the
!. eastern financiers to pledge all of the
S properties they sought to merge, capi
0 talized at over s300,000,0o0. with
$ Kuhn, Loeb and Co, as security fol
$ the loan, The s15,00o,0o0 was repaid
r within three years. According to Dis
d trict Attorney Wilkerson, the govern
t ment will show that the loan was re
paid out of hidden profits. 1t Is de
clared that the government will show
that while statements showed thai
j one of these national packing sub
r sidiaries lost s1,500,00o during its firsi
d year, it really made profit of S5.
y 100000 in the three years before the
n loan was repaid,