The Miller press. [volume] (Miller, S.D.) 190?-current, 1912-01-04
OBJECT
DEFENSE OBJECTS TO EVIDENCE
REGARDING OPERATIONS OF
TWO COMPANIES.
TRIAL MAKES A HALT
Government Contends Firms Marketed
By-Products at High Prices
Concerns Reaped Huge
Profits.

Chicago, III. - Objections made
which the government seeks to intro
duce regarding the operations of the
Kenwood company, and the Aetna
Trading company, halted the packers
trials and caused Judge Carpenter to
excuse the jury, pending the hearing
of legal arguments.
The government contends that the
Kenwood company, which was organ
lied by the packers in 1900, and o n
tinued In business until 1905, was one
of the pools used to market the pack
ers' by-products. u is alleged that the
Kenwood company dealt in cleo and
the Aetna Trading company In the
same period dealt in castings.
The government expects to show
that the Kenwood company profits
were 81, 200, 900 in one year, despite
the fact that IL was only incorporated
with a capital stock of $14, 900. The
profits of the Aetna Trading company
are also alleged to have been proper
tionately large, by counsel for the gov
eminent.
Kept Profits Limited.
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 coun-
sci for the government.
The objection TO this line of testi-
mony anne when Albert IL. Veeder
was questioned in regard to the bust
ness transacted by these subsidiary
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 COM
pany." said Attorney Levy Mayer,
counsel for the defense. The Ken
wood company dealt in oleo oils and
the Aetna Trading company dealt in
castings and we cannot understand
what violation this has to the allega-
tons made in the indictment that
there was a 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 incompetent and ask to have it ex-
cluded."
Merger Was EngIishman's Idea.
Lord Panmure Gordon. an English
promoter, first suggested the giant
merger of the packing corpora
tons in the United States with a
capitalization of 1929, 900, 900, accord
Ing to Mr.. Veeder.
The witness said that the National
Packing Co., which was capitalized at
SIS, 000, 900, was formed by the merg-
ing OF Is companies and their sub
salaries and that the properties were
paid for in stock of the National
panies and the amounts paid for
them by the National Packing com,
pany was given as follows:
The Companies.
Stock Yards Warehouse Co., $780,
600; Anglo-American Provision and
Refrigerator Car Co., s360.O00; Kan
sas City Refrigerator Car Co., $780,
900; Fowler's Canadian Co.. limited,
$40, 1000; Friedman Manufacturing Co.,
$110, 900; G. II. Hammond q Co., 49,.
600. 1000; st. Louis Dressed Beef Co.,
2,100. 900; Hammond Packing Co.,
81, 000, 900; Omaha Packing Co., ST.
zoe, 1000; Hutchinson Packing Co.,
500, 00G Anglo-American Provision
Co.. 81. 900. 000; Fowler Packing Co.,
$500, 900; United Dressed Beef Co.,
1900, 900.
veeder said these companies were
all purchased by Armour, Swift and
Morris before Michael Cudahy was
taken into the combination. He said
all the men who sold their plants
agreed not to engage In the packing
h,rinann For iE uoarc