Gilpin observer., 1911-12-28
PACKERS WANTED TO CONTROL
THE MEAT INDUSTRY; THE
PLAN ABANDONED.
n. P. C. WAS FORMED
WITNESS TELLS OF SECRET OR,
GANIZATIoN; THE ORIGINAL
AGREEMENT PRODUCED.
Western Newspaper Union News Service

Chicago.-Details of the plan for a
S50O.00O,OO0 merger of the Armour,
Swift and Morris interests in 1902, by
which the government contends it was
sought to control the meat industry
OF the country, were revealed in the
trial OF ten Chicago packers before
United States District Judge Carpen-
ter.
The contract, which was dated May
81, 1902, was read to the jury and Of
fered in evidence by counsel for the
government.
The original agreement was pro
duced in court by Albert H. Veeder,
attorney for Swift & Co., who was
called by the government as it's first
witness.
Attorney Veeder testified that the
plans for the giant merger were aban-
doned and that in March, 1903, the
National Packing Company was organ
lied to operate certain Independent
packing companies purchased with a
view of including them i'm the big COM
pany.
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 merged
into one giant concern, Armour, Swift
and Morris to receive bonds and pre-
ferred stock of the new company in
gible property.
In addition to this, the promoters
were to receive $25,OOO,OO0 worth of
the new companys stock for intan-
gible property and large block of
common stock for their good will, this
amount to be fixed by the earnings of
the different plants during the first
year of the new merger.
The promoters planned to borrow
$90.000,O0O to finance the giant cor
poration. The appraised valuation of
Armour, Swift, Morris and their sub
sidiary companies was given at $780,
100000
Each of three promoters deposited
$l,O00,000 with Chicago bank as an
evidence of good faith, but they were
compelled to drop the plan because of
the failure of certain New York cap
italists to furnish the funds needed.
The government contends that it
was at these meetings that the price
cussed for the suppression of compe-
tition.
Veeder was questioned regarding the
Kenwood company and the Aetna
company, but professed ignorance Of
their business. He admitted the Ken
wood company was organized in his
office, but said he was not present al
the time.
The witness said he had heard that
at the pool meeting the different com
panies and the territories allotted to
them were designated by letters. He
said territory "a" was north of the
Ohio river and east of the Missouri
river He said Armour was known as
"A" among the companies. He did not
know the letters used to designate the
other members of the alleged pool.
He said the Association of Packers
was dissolved in 1903 and his son, who
had acted as secretary, was taken into
his law office as a partner. The wit
ness Sdlu ne IlTSl DtCdlllt uitoihty loi
Gustavus F. Swift in 1886 and that on
different occasions he had served as
director of Swift & Co. and several OF
its subsidiary companies.
Previous to the calling of Veeder TO
the stand the defense made an unsuc-
cessful attempt to have excluded from
the governments case all transactions
prior to 1905. on the ground that the
immunity plea which freed the pack
ers when they were indicted seven
years ago should apply to that period.
Counsel for the packers put their
motion in writing, but Judge Carpen-
ter, while reserving his decision to
give the government time to reply. in
dicated that he may deny the motion.
yeeder at the beginning of his di-
rect testimony admitted the packers
had an organization which met every
Tuesday afternoon in building on
the same floor with his law office, and
that his son, Henry Veeder. acted as
secretary in 1900. 1901 and 1902.
He did not know the name OF the
association and did not know what
business was transacted at the meet
ings. He said he never attended any
OF the meetings.