The Sentinel=record., 1911-12-27
DETAILS OF
 BIG MERGER
THE PLANS OF FORMER PACKING HOUSE TRUST RELATED AT
 TRIAL OF PACKERS.
Aereement Planned $500, 900 900 Merger of Biz Packing interests 10 Control the who'e
 Meat Bu3ness.

Chicago, Dec. 26. Details of the plan for a $500000000 merger of the Armour Swift and Morris interests in 1902 by which the government con tends 1t was sought to control the meat industry of the country were | repeated today in the trial of the tea Chicago packers. The contract which was dated May 31. 1902, was read to the jury and offered in evi- dence by counsel for the government.
 The original agreement was pro- I duced in court by Albert H. Veeder, attorney for Swift and Company who was called by the government as its first witness.
 Attorney veeder testified that the 1 plans for the giant merger were aban- doned and that in March, 1903, the National Packing Company was or ganized to operate certain independ. ent packing companies with view of including them in Jhe big eompa- ny.
 Under the terms of the agreement | the three large packing corporations and their subsidiary companies. to- gether with recently acquired inde- pendent companies, were to be merg- ed into one concen and Armour, Swift and Morris were to receive the bonds and preferred stock of the new company in payment for the value ot their tangible property. h addition l to this the promoters were to receive $25,000.000 worth of the new eompa- ny's stock for intangible property and a large block of common stock for their good will, this amount to be fixed by the earnings of the differ 1 ent plans during the first year Of the iiew merger.
 The promoters planned to borrow | sSo000,00c to finance the giant cor tporation The appraised valuation Of Armour. Swift. Morris and their sub sidiaries was given at $1S0,0OO, 900. Each os the three promoters deposit ed slO0O.e00 with a Chicago bank as an evidence of good faith but they we're compelled to drop the plan be- cause the failure of certain New York capitalists to furnish the funds reeded.
 veeder was on the witness stand throughout the day and will continue his testimony tomorrow
 Previous to the calling of Veeder to the stand the defense made an un- successful attempt to have excluded from the government case all trans actions prior to 1905 Cen the ground that the immunity plea which freed the packers when they were indict- ed seven years ago should apply to that period
 Counsel for the packers put Their motion in writing but Judge Carpen- ter. while reserving his decisica to give the government timN to reply, Iindicated that he would deny the motion.
 1 Veeder at the beginning of his di- rect examination. admitted that enc packers had some sort of sn organ ization which met every Tuesday al ternoon in tine Counselaman building Chicago, on the same floor with T law office and that his son, Harry veeder. acted as secretary in l90O 1901. and 1902.
 He did not know the name of the association as 1t was net on the door of the office and he did not know what business was transacted at the meetings.
 The government contends it was al these meetings that the price of mea' twas fixed and plans discussed for tho suppression of competition. 1 veeder was closely questioned re 1 garding the Kenwood company ant the Aetna Trading Company. but ns professea Ignorance of their business He admitted the Kenwood compan, 1 was organized in his office, but h, said he was not present al the time The witness said he had heard Una at the pool meetings the differen companies and the territories allotted to them were designated by letters, He said territory A was north ot ths Ohio River and east of the Missour river
 He said the association of packers