The Irish standard. [volume] (Minneapolis, Minn. ;) 1886-1920, 1911-12-30
WHY THE BEEF
MERGER FAILED
SWIFT ATTORNEY TESTlFIES
THAT IN TWO INSTANCES
MONEY WAS LACKING.
NEW YORK WAS SHORT OF CASH
First Trust Proposed Was to Be Cap.
itaiized at $e23, ooo, ooo.-Gustavus
Swift Was to Have Been
President.

Chicago, Dec. 2S.-Albert H. Veeder,
attorney for Swift & Co., and the first
witness called by the government in
the trial Of the 10 Chicago packers,
testified that the defendants made two
efforts to organize merger in the
summer of 1902, and that their efforts
to finance the enterprise were unsuc-
cessful in both instances.
The first plan was to include the
Armour, Swift, Morris and Cudahy in
terests and the proposed corporation
was to be capitalized for $923,00O,O00
divided as follows:
Bonds, S141,750,O00.
Preferred stock, $16S.750,0O0.
Common stock, $612,500,000.
After the promoters had failed to
finance this proposition through Kuhn,
Loeb Co., of New York, the plan was
changed to provide for a captaliza-
ton of S525 100000, and the condition
of the money market made it impos-
sible to finance the modified merger.
Mr.. Veeder testified that E. H. Har.
riman, James Stillman and other New
VI A1duSlclS WClC W nave lulllSL-
ed the capital for the big corporation
and the amount they were to receive
as compensation was $10,0OO.0O0
The witness then told of the organ
ization of the National Packing COM
pany, March 18, 1903, but denied that
| it had any connection with the pro-
posed big merger.
One section of the contract provided
for the selection of the following Off
GERS of the proposed merger:
President. Gustavus F. Swift; vice
presidents, Edward Morris and Mich
ael Cudahy; chairman executive and
| finance committee, j. Ogden Armour,
| The appraised value of the tangible
assets and the annual earnings of the
! four promoters of the proposed COM
| pany on Aug 2. 1902, was given in a
statement attached to the contract as
| follows:
Value of
| tangible Annual
| assets. earnings
Swift & Co... 1856, 100000 $8,3O0,00O
Armour & Co... 100000 100000
Morris & Co... 24,0O0.Ooo 100000
Cudahy E. Co.. 15,500,0OO 1,175,OO(
after the merger plan failed, Mich
ael Cudahy dropped out off the part
nership with Armour, Swift and Nor
ris and at his own request was re-
leased from all obligations imposed by
| the contract" said Mr.. Veeder 1.-THE
National Packing company was then
organized to carry on the business OF
the concerns purchased to be included
in the merger"
Meat Industry increases.
Chicago.-Steady increase in Chi
cago's fresh meat industry is shown
in annual report of the Union Stock
| Yards and Transit company. 1t shows
that 10000 carloads more of livestock
/ were received the past year than the
year before. The total number of car.
| loads received during the past fiscal
year was 271 900.
In addition. the horse market here
looked up materially, $4,000 head more
being shipped to the Chicago market
in 1911 than in 1910. Prices were
| higher.
Statistics indicate that prices for
cattle and hogs decreased in 1911,
/ compared with the previous l. months
For beef cattle the price per 100
pounds is given as IS cents less
With hogs. the average price the past
year was $3.50. while year ago, it
was approximately $50
! In numbers, beef cattle receipts fell
off from the preceding year $4,000
head, total number of 1890, 900 head
appearing for slaughter. This is at.
tributed to the crusade against the
high cost Of living, which hit the fresh
meat industry hard. More calves were
received, however. by $4,000 head
there being $4,000 head brought in
The sheep market was strong STA
900 being received, nearly half mil.
lion head more than in 1910.
I