The diamond drill. (Crystal Falls, Iron County, Mich.) 1887-1996, 1911-12-30
BARES SECRETS OF
The MEAT PACKERS
Attorney for Some Of Defend
ants on the Stand.
orosseup's Injunction Caused the Con.
tempiated Combination to Col.
lapse-Terms Of the Pro-
posed Agreement.

The jurors at Chicago in the trial
OF the ten indicted Chicago packers
heard more of the inner secrets oil the
old beef pool. when Albert Fl. yeeder.
attorney for some OF the defendants
resumed the witness stand MIR. Wee
der had told OF the proposed s75O000.-
600 beef trust planned in 1902. but
which failed because of Judge Gross
cups injunction
As climax TO the remarkable story
drawn from him he produced on de-
mand OF Mr.. Butler. the contract en-
tered into by Gustavus +. Swift. J.
Ogden Armour and Edward Morris on
May 81, 1902. whereby they agreed 10
pool their enormous interests for
great combine.
AS guaranty OF good faith each de-
posted Sl,000000 in securities with the
Illinois Trust and Savings bank. This
financial scheme was abandoned Ney
u, 1902, he said. because the eastern
bankers tkChn. Loeb a Co. and the
late Il. III Hartmann refused them a
loan Of S90.0O0,000 They were at the
point OF signing the loan contract
when they decided the trust" inn
practical because OF the Grosscup in
junction against the packers.
BY the terms OF the contract the
packers not only planned TO pool their
interests on pro rata basis, bu,
agreed TO sien over all properties east
OF the l05th meridian or longitude. or
Denver. Col
The three packing groups were 10 re-
ceive half OF the tangible values OF
their plants in 4 per cent bonds and
half in preferred stock A ''bonus" of
S25 100000, preferred stock, 10 be split
on the pro rata basis. also was to be
issued, and each was 10 receive I'm adj
dition common stock amounting 10
twenty-five times their net receipts for
a yearly period.
In a supplemental contract produced
by Mr.. Veeder, IL was agreed by Swift.
Armour and Morris that the pro rata
share should be on the following basis:
Armour interests $1,000. 400 per cent
Swift Interests .........375 per cent
NiNifiN AhfNA'HAn $50 Hfi ifnA
Afterward, il Is said, the appraisers
reported tangible assets as follows:
Swift ..s, sS5. OO0. 600 or $40 D. C.
Armour . 73,00O.O0O or 40.ll p. e.
Morris .., 24,000.0OO or 1919 y. c.
I'm the aggregate the total bond. pre-
ferred stock and common stock issue
would have amounted 10 over $3.50 900
900 The half OF hundred or more
corporations named In the contract
which werc 10 have been pooled"
does not include the twenty or thirty
packing concerns which since that
time have been brought in by the
packers
These concerns now so 10 make mp
the National Packing company. ihe
$4,000 o0n corporation 81 odds and
ends corporations which the govern
meut alleges is the mother Of The beef
trust and which the packers admit
came 10 life through the failure OF tho
matcrilazation Of the s75000O,0o0 com
hine
Merger of I've large packing plants
by the ogden Armour. Edward No
us ana Gustayus Swift interests and
the failure of the Schwarzschild and
sulzberger 10 lie taken over into the
combine because ol financial stress "a
1908 were also revealed By MIR Wee
der
lie produced copies OF these CON
tracts. and when asked for originals
said he did not know where they were
NJ present