Omaha daily bee., 1911-12-29
TEST COST FIGURES TOO Low
Firms Dealt in 0leOmsrgarine and
Castings During Former Period.
TELLS OF REORGANIZATION
Omaha Company on List of Firms in
National Corporation.
GORDON SUGGESTED MERGER
Veeder Tells Jury that Few Months
Later Idea Wns Revived at
Meeting of Several of
the Meat Kings,

CHICAGO, Dec. 2S-Objection made by
council for the defense to evidence which
the government seeks to Introduce regard
ing the operations of the Kenwood COM
pany and the Aetna Trading company
halted the packers trial late this after
noon and caused Judge Carpenter TO eX-
cuse the jury pending the hearing Of
legal arguments.
The government contends that the Ken
wood company which was organized by
the packers in 1900 and continued in busi-
ness until 1905 was one of the alleged
pools used to market the packers by
products. II is alleged that the Kenwood
company dealt in oleomargarine and the
Aetna Trading company in the same
period dealt In castings.
The government expects to show that
the Kenwood companys profits were
S4,0o0OO0 in one year. despite the fact that
it was only incorporated with a capital
stock OF $4,000. The profits of the Aetna
Trading company are also alleged to have
been proportionately large, by counsel
for the government.
Profits Hidden.
BY making an inadequate allowance for
these by-products in figuring the test
cost OF the animals slaughtered, the
packers were enabled to keep the profits
Of the parent concerns within reasonable
limits, according to counsel for the gov
ernment.
This line of testimony came when Albert
II. Veeder was questioned in regard to
the business transacted by these sub
sidiary companies.
1--WE have a right to know what the
government intends to prove by going into
the business OF these companies and what
relation it has to this company" said
Attorney Levy Mayer, counsel for the
defense.
THE Kenwood company dealt in oleo
oils and the Aetna Trading company
dealt in castings and we cannot under
stand what relation this has to the
allegations made in the indictment that
there was a combination for control Of
the price of fresh meat and the price
paid in the purchase of cattle. For this
reason we contend that this testimony is
incompetent and ask to have it excluded" !"
standing alone do not see the rele-
Vancy of this testimony, but 1t may lead
to something connected with the acts
charged in the Indictment" said Judge
Carpenter. II think the government
should at this time state just what it ex-
poets to prove by this testimony"
Purpose of Testimony.
Special Counsel Peirce Butler said the
government expected to show by reveal
ing the business of these companies that
the packers made an inadequate allow
ance for byproducts in figuring the test
cost OF animals slaughtered, which had a
direct bearing on the workings OF the al
legged combination.
1--WE expect to develop in the trial that
these companies are an important part
of the pool or pools by which the pack
ers between 1900 and 1906 fixed the price
of fresh meat and the figures to be paid
for cattle" said Attorney Butler. ''rhey
were used to market byproducts at a
higher price than they could be sold di-
rect by the parent concerns.
I'VE expect to show that through these
companies the packers were enabled &c
make an inadequate allowance on thelI
byproducts in the figuring of the test
cost on the animals slaughtered; and this