The citizen. [volume] (Berea, Ky.) 1899-1958, 1912-01-04
PACT IS EXPOSED
PACKERS ATTORNEY PRODUCES
CONTRACT FOR LOAN WHICH
HELPED FORM Trust.
WITNESS NAMES E. n. GARY
Noted New York FInaneiers Are Men.
TONED In Court 40 Bsokers Of Pro
posed Gigantic Merger Of Chicago
Meat Firms.

Chicago. A. Valentine. former
treasurer for Armour a 20. and 4. n.
Gary. chairman OF the board OF the
| United states Steel corporation. ng.
ured conspicuously In the trial OF the
ten indicted Chicago packers charged
with violating the Sherman antitrust
act.
TIE names OF the two iinanciers
came out when Pierce Butter. assist
ant to the attorney general. Ques-
toned Albert II. veeder. former coun'
sci for Swift A. Co. regarding con.
tract No. z, which provided for a loan
OF Sl5,O0o.O00 In the formation OF the
National Packing company.
The reading OF the agreement
showed that Mr.. Gary was to take
over all the assets OF the packers IN
consideration for the loan. Mr. Val
entine signed the agreement In be-
half OF J. Ogden Armour
The old pool Of packers. II devcl'
oped. was known only as "P. q. box
2<7." Mr.. veeder testified that he
knew 90 no name for the association.
but II was said that "P. o. iiox 2i7"
was the mysterious name under which
the pool worked.
The merger OF the following plants
by the Chicago packers. he said, be
came known later as the National
Packing company: United Dressed
Beef company OF New York. Fowler
Packing company. Hammond Packing
company. and St Louis Dressed Beet
and Provision company.
Veeder was asked why the chicago
packers did not take over the tirm
OF SchwarzsChild a Sulzbergcr bust
ness In November. 1909. AS contem.
plated. Mr.. veeder explained that
the S5O0.0oO.000 merger OF the PACK.
ers was in progress. but that the
financial strain Of 1908 prevented the
promoters from securing loan OF
s90,000,000 from New YORK bankers
TO carry the deal through
Kuhn. Loeb A Co. as managers or
the syndicate. were TO receive either
one-fifth of the syndicate's profits or
one per cent. % Its par value
After James Stillman. Kuhn. Loeb a.
Co. and + n. Hartman failed to pro
duce the $4,000. 600. Mr.. veeder said
a loan OF $4,000. 900 was made by the
same financlers In July. 1908. for the
formation of the National Packing
company.
The Illinois Trust and Savings bank
had been made trustee TO all the con
tracts entered into by J. ogden Ar.
mour. Edward Morris and Gustavus
Swift In 1902, according to the testi
m1ny OF the witness
A loan Of 100000 from the FIRST
National bank made TO the Armour.
Swift and Morris interests toward the
formation OF the NctionaI Packing
company was also revealed.
Receipts shown by Attorney veeder
disclosed that the Morris. swift. Ar.
mour and Cudahy interests deposited
with the Illinois Trust and Savings
bank s4.000.OOO as n matter OF good
faith when the $500. 100000 merger
was contemplated In 1902
The agreements between the PACK.
ers and the bank relative to the de-
posits were read into record
An agreement on July rs. 1902.
which made Michael Cudahy a party
to the contemplated 100000. 900
merger also was introduced.
The government intends to show
that the National Packing company
paid back the loan OF $4,000. 900 with
accrued interest TO the New YORK and
Chicago financiers three years from
the date OF the loan in 1909