The Birmingham age-herald., 1911-12-30
YEEDER TELLS OF INSIDE
 WORKINGS OF PACKERS POOL
CONTINUED FROM PAGE O

meeting, I would send a letter to each member notifying them of their allot- ment in pounds to be shipped in territory A during the current week."
 "Can you give us the form of thoss letters?'
 They read about like this: Dear Sir: Your shipments into territory A for the coming week will be 90 per cent of your maximum allotment of S,000,0O0 pounds
 Did each member receive a copy Of what the other was to ship?"
 ''Yes. You talk like you had seen some of these letters"
 Well maybe I have" replied Special Counsel Butler with a smile.
 At this point court adjourned until next Tuesday morning.
 Outlined Contention
 Counsel for the government outlined what they expected to prove by the testi- mony regarding the operations of the Kenwood and the Aetna trading conl- panies in the trial of the indicted meat packers today.
 We shall offer no proof for the sole purpose of disgracing or casting discredit on these defendants under some technical theory that is immaterial," said Special Counsel Pierce Butler. we shall prove that there was a plot among those de- fendants to commit the crime charged Tn the indictment.
 "We shall show that the Kenwood com pany was one of the links in the chain used to violate the law"
 Albert H. Needer, counsel for various packers, under cross examination told of a meeting of packers in December, 1902, in New York, when plans for financing the merger were discussed with Jacob H. Schiff.
 Veeder said Schiff took such a gloomy view of financial conditions that it de- pressed the packers and the idea of a big merger was dropped.
 The panic followed, he said. Veeder ex- plained the packers were in sad plight when their merger fell through, but with 13 packing companies on their hands the final, thar cf organization of the National Packing company March IS. 1903, with capital of s150OO,0O0, was adopted
 Kuhn, och & Co., made the loan of $15,- 0Oo,OoO with which the packing compary was capitalized.
 MT. Veeder denied the division of stock of the National Packing company was determined by the volume of business done by the owners, Armour, Swift and Norris
 On redirect examination witness admit ted that he did not know how the per centages were reached.
 Do you know what the packers con sidered in making these percentages, asked Attorney Butler.
 That would involve probing the pack CTS minds,'' he replied. 'I never attempt ed to put my mind up against one Of If | did I always got the hot end.''
 The percentage of stock of the Ma tional Packing company was divided as follows: Swift & Co.,, 46.70 per cent; Ar mour & Co.,, 40.11 per cent; Morris & Co.,, 1919 per cent.
 MT. Veeder was on the stand when court recessed.
 Veeder described the collapse also of the billion dollar pool planned by Ar mour, Swift, Morris and Cudahy in 1902 He said the formation of the gigantic or ganization was abandoned at the close of a conference held in New York shortly before Christmas, 1902, between the pro motors and Jacob H. Schiff, manager for Kuhn, Loeb Ss Co.
 A loan of S90 900 was described and later this amount was reduced to $60,000,- 900 and the capitalization otherwise re- duced again and then inflated. MT. Vee- der said MT. Schiff told the packers the times were not propitious for launching such a merger.
 The direct examination of the witness was concluded after several hours had been taken mp by counsel arguing on the admissibilitv n testimony touching the operation P rrtafn distributing cor porations onTsa 8y tAr packers.
 Judge calr6n3er r. d his decision
 ument of Counsel Resumed
 anep 7f cl1i en otion to ex-
 l9da 4il iman regard to the bus ineas of tiif 1zenNo3G company and the aatns fadiHg ,inpau2 Has ies med this uefniaR bcf0re Tnitaa states District liosc Carpbnscr in tfe triai of 10 Chi oaso packers siBder iHaieunsnt for crim- raj violatiFr of she e.man law. The uorefnin snf contends nat the informa- hon s ehi Eas a rect bearing on the ssicaatlOn made .I the indictment that the paalers combination made an ade- lgafe aifsWance for by-products in figur- lut lhe test cost on animals slaughtered and is material in the presentation of it's case.
 The defense contends that the evidence is not admissible for the reason that the indictment does not charge the defend- ants with combining to control the price of anything but fresh meat and the pur- chase price of cattle.
 John fdyHe ana JoHn Nlller, attorneys representing the packers, said the evil dence used to mark certain by-products should be excluded for the reason it tended to prove a crime not intended in the indictment. They declared prices charged by the distributing company had nc connection with the uniform system or figuring the test cost of the animals slaughtered
 "As 1 understand it. the government charges that these selling companies are part of the general scheme of the com bination,' said Judge Carpenter.
 ''The proof of the commission of an other crime may be incidental to show ing that all O these subsidiary selling concerns are directly connected with the
 issue in this case" he added. And un- der that theory the government should be permitted to show the connection be- tween these selling companies and the parent organization