New-York tribune., 1911-12-29
100000 PROFITS
A YEAR ON $4,000
Packers Earnings on 0leo and
Castings Were Enormous, Gov
ernment Expects to Show.
13 COMPANIES IN PACT
All Who Sold Their Plants to Ma
tional Agreed to Keep Out OF
Business 15 Years-Jacob
Schiff to Testify.

for tho defence to evidence which the gov
eminent seeks IN introduce regarding the
oreratiors Of the Kcnwood Company ana
the Ftna Trading Company halted the pack
ers' trial to-day and caused Judge Carpen-
tor to excuse the jury pending the hearing
OF legal arguments.
The government contends that the Ken
wood COMPANY which was organized by the
hackers in 1900 and continued In business
until 1905. was ole Of the alleged pools
used 10 market the packers by-products
1t is alleged that the Kenwood company
dealt I'm oeomargarine and the ftna Trad
ing Company in the same period dealt IN
castings,
The government expects TO show that the
KenWood Company's profits were S4ooo'o'V
in one year. despite the fact that 1t was
only ircornorated with a capital stock OF
$4,000 The profits Of the .Etna Trading
Company also are alleged by counsel FOR
the government to have been proportionate-
ly large.
By making an inadequate allowance lot
these by-products i'm figuring the test cost
Of the animals slaughtered, the packers
were enabled to keep the profits OF the
parent concerns within reasonable limits
according to government counsel
The objection to this line OF testimony
came when Albert II. Needer was questioned
i'm regard to the business transacted by
these subsidiary companies.
Defence Enters Objection.
I'VE have a right to know what the gov
ernment intends to prove by going into the
business Of these companies and what re-
ation IT has to this company" said Levy
Maver. counsel for the defence THE Ken
wood Company dealt in oleomargarine and
the Ftna Trading Company In castings ana
we cannot understand what relation this
has to the allegations made in the indict-
ment that there was a combination to con-
troll tho price Of fresh meat and the price
paid in the purchase Of cattle. For thls
reason we contend that this testimony Is
incompetent and ask to have 1t excluded.
standing alone. I do not see the
revelancy OF this testimony, hut 1t may
lead 10 something connected with the acts
charged in the Indictment said Judge
Carpenter. "I think the government should
at this time state what II expects 10
prove
Special Counsel Pierce Butler said the
government expected 10 show That the
hackers made an Inadequate allowance Tor
bv-products In figuring the test cost or
animals slaughtered. which had direct
hearing on the workings Of the alleged
combination.
'~Ue exrect 10 develop I'm the trial that
those conpanles are an important part OF
h,r untgi1 the hackers
between 1870 and 1896 fixed the price OF
fresh meat and the figures to he PAID TOT
cstta said Mr.. Butler They were used
10 market hy-products at a higher price
than that AT which they could be sold oil
rect by the parent concerns.'
The argument of counsel on these points
will he continued when court reconVehes
tomorrow morning.
Jacob H. Schiff. manager for Kuhn, loeh
& Co. Of New York. has been subpPnaef
az n witness for the government. and VIII
be called next week.
Was the final report Of the appraisers
and expert accountants on the value OF
the tangible property Of the promoters Of
tho hie merger ever made?" asked Special
Counsel Butler. resuming the direct eX'
animation Of A. II Veeder at the opening
Of the morning session.
THE reports we're not completed until
after the big merger had failed. and each
member received report Of It's own busi-
ness" replied Mr.. Veeder
where were the meetings held AT which
n1ans. for the big merger were discussed
Mostly At my office. but AZ times W.
met at the homes Of the principals.
Who attended those meetings?
Various representatives Of the packing
interests !. ogden Armour did not come
often. hut was represented ny Arthur
Meeker. T. A. Valentine or Attorney L.
c. Krauthoff Gustavus T. swift, Louis
= Swift and Edward F. Swift represented
Swift & co Michael and E"wsrd Cudshy
anresred for the Cudahy interests. ano
r.dward and Ira Morris represented Morri;
& Co." replied Mr.. Needer.