Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1911-12-27
Eastern Bankers Refuse
to Advance $9O,000,-
900 to Packers.
MORE SECRETS HEARD
Old Pool Known as ''PoStoffice
Box No. 247," Swift & Co.
Attorney TeStifies.

attorney for Swift & Co. continued
his recital on the witness stand OF
the inside history OF the packers COM
binaton when the packers trial re-
sumed today. The only name by
which the old packers pool, which
held secret meetings prior to 1903,
was known was "postoffice box No.
247," according 10 the declaration OF
counsel for the government today.
Further secrets Of the old associa-
ton OF packers which projected a
combination with $500. .00O. 900 capitali-
zation, which was balked through the
failure OF eastern bankers to loan
500, ,O0o, 900. were expected to develop
through veeder's testimony.
The witness went into details of
the agreement for the $500, 100000
merger. The negotiations were COM
pleted for a loan OF $50, 900 to
finance the merger in 1902, but
threatened panic upset the whole
thing, and the deal was declared of,
thus preventing that merger.
BUYING Up COMPETITORS.
II was brought out that contracts
for the purchase OF competing con-
Germs contained a clause prohibiting
the latter engaging In the packing
business for is years. The witness
described the organization Of the Ma
tional Packing company and gave de-
tails OF various loans made TO finance
Il.
CUDAHY,s NAME BROUGHT IN.
The witness connected the name of
Michael Cudahy with the other three
packers who proposed to organize the
big combine. Veeder said that fol
lowing the examination OF the pack
ers' book by experts, an appraisement
OF property was made, but the final
report was never announced.
STOCK SURRENDER
Veeder said that under the merger
agreement each of the contracting
parties was required TO turn over at
least 30 per cent of the stock con-
Germs was proposed to consolidate.
The I sitness produced contracts
made by Armour, Swift and Morris in
June, 1902. for the purchase of six
competing companies prior to the or
ganization Of .Ehe National Packing
company.
TERMS OF S5Oo,oOO,OOO PACT.
The parties to the $500, ,OO0. 900 beef
trust" agreement, described by Albert
II. Veeder In court yesterday, which
failed in 1902 because Of former Judge
Grosscup's Injunction, we're Gustavus
+. Swift. J. Ogden Armour and Ed
ward Morris. The contract was dated
May 81. 1902. and was abandoned Nov.
%, 1902. Its terms were as follows:
All parties 70 the contract were to
deliver to the new corporation all
slaughtaring and packing plants and
other properties east Of the 105th mer-
idian Of longitude.
The properties were to be appraised
by Thomas Z. Wilson, Horace c. Gar
diner and Arthur Meeker. and Gusta-
vus F. Swift was to arbitrate all diff
ferenoes arising out of the appraisal.
His decision was to be final
UNDER JERSEY LAWS.
The corporation was to be formed un-
der the laws OF New Jersey and TO
HaNc oOhutu ioHAt anu q NdpAlAl blONh
divided into shares of per cent cum.
ulative stock. preferred as to capital
and dividends. and OF common stock.
These stocks and bonds were TO be
divided as follows: Upon the appraise-
ment OF the tangible properties each
party to the contract was 10 receive
cne-half Of its value in bonds and one
half in preferred stock. In addition. q
S25.0OO,0 900 bonus OF preferred stock
was 20 be split up pro rata. In addi
tion. each party was TO receive 25
times the annual net income Of his
properties In common stock. The total
bond and stock issue would have ex
ceeded $500. 100000.
FROM SWIFT INTERESTS.
The Swift interests were TO turn
over to the beef trust" the following
property:
Swift e. Co
Swift Packing company.
Franklin Salt company.
Swift Fertilizer works.
National Box company.
Libby. Mcneil G. Libby
National Leather company.
fcontiu,,ed on Pare Five.1