The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1911-12-29
Jury Is Excused, Pend
ing, Hearing Of Legal
Arguments.
STORY OF DEALS
IN BY-PRODUCTS
Government Seeks to Show That
Kenwood Company and Aetna
Trading Company Were Part
of Alleged Pool of Beef
Barons-Jacob H. Schiff
Is Subpoenaed.

Chicago, Ill. December 2S.-oojection
by counsel for tho defense 10 evidence
which the government seeks to intro
duce regarding the operations OF the
kenwood Company and the Aetna Trad
Ing Company halted the packers trial
to-day and caused Judge Carpenter TO
excuse tho jury pending the hearing OF
legal arguments.
The government contends that the
kenwood Company. which was organ
lied by the packers in 1900 and contin-
ued In business until 1905. was one Of
the alleged pools used to market the
packers by-products. II is alleged
that tho kenwood Company dealt In
oleo. and the Aetna Trading Company.
In the same period. dealt in castings.
The government expects TO snow that
the kenwood Company's profits were
100000 in one year. despite the fact
that 1t was incorporated with a capital
stock OF only $4,000. The profits of the
aetna trading Company also are al
legged by counsel for the government to
have been proportionatcly large.
BY making an inadequate allowance
Tor these by-products in figuring the
test cost OF the animals slaughtered,
the packers were enabled 10 keep tho
profits of the parent concern within
reasonab bic limits. according TO govern
line of testimony came when Albert ii.
Nceder was questioned in regard 10 the
business transacted by these subsidiary
,, companies.
Objection Is Raised.
I'VE have right to know what tho
government intends 10 prove by going
into the business of these comDanics
and what relation it has to this COM
pany,' said Attorney Levy Mayer. coun-
sci for the defense.
The Kenwood Company dealt in oleo
and the Aetna Trading Company In
castings. and VIC cannot understand
| what relation this has to the allega-
lions made in the Indictment that there
was combination to control the price
OF fresh meat and the price paid in the
purchase of cattle. For this reason we
| contend that this testimony is incom-
petent and ask to have It excluded"
Standing alone. I do not see the
relevancy of this testimony, but 1t may
lead to something connected with the
acts charged in the Indictment" said
Judge Carpenter. IT think the govern
ment should at this time state what IL
expects to prove"
Special Counsel Pierce Butler said
the government expected to show that
tho packers made an inadequate allow
ance for by-products in figuring the
test cost of animals slaughtered, which
had direct bearing on the workings
OF the alleged combination.
I'VE expect to develop in the trial
that these companies are an important
part of the pool or pools by witch the
packers between 1900 and 1905 fixed the
price of fresh meat and the figures to be
paid for cattle" said Attorney Butler.
They we're used to market by-pro-
ducts at higher Price than they could
be sold direct by the parent con-
cerns'
The argument OF counsel on these
points VIII be continued when court
reconvcnes tomorrow morning
Jacob II. Schff. manager for Kuhn.
Loeb & Co.. of New York, has been
subpoenaed as witness for the gov
| eminent and Will be called next week.
Mr.: Veeder to-day gave the details
Packing Company. which was formed
March IS, 1903. and which the govern
ment contends was the instrument used
by the indicted packers TO fix the price
OF meat.
Thirteen Companies Merged.
The witness said that this corpora
ton, which was capitalized at $4,000
900, was formed by the merging or
salaries and that the properties were
paid for in stock of the National Pack
Ing Company.
MIR. Veeder said these companies
were all purchased by Armour Swift
and Norris before Michael Cudahy was
taken into the combination. He said
all who sold their plants agreed not to
engage in the packing business for
fifteen years.
'iIavc you any more contracts or
agreements used in III, organization OF
tho National Packing Company" asked
Special Government Counsel Pierce
Butler.
about three bushels. but nothing
YOU would want replied Witness
Veader.
Whom did you talk with In vo,,r
negotiations with Kuhn. Loeb & Com
pany. OF New York. for loans for tho
National Packing Company"
"Jacob II. SchiT. He was the man
n8er OF the firm, and the whole thing. +"
was MIR. Ncedcr's reply
The witness was questioned regard
ing the kcnwood Company. corpora
tion organized by tho agents or en-
ployes of the packers.
THAT company was Incorporated to-
deal i'm oleo oil, and I believe il did
just what IL was organized to do 1t
WAS Incorporated in my Office durint.
my absence. did not know every,
thing that went on In my Office" re-
piled Mr.. Veedcr.
Asked about the Aetna Trading Com
pany. Mr.. Vendcr said he knew moth
ing about the business of the concern
s-4