Omaha daily bee., 1912-01-04
MILES TELLS OF
PACKERS POOLS
Former General Manager for Armour
Company Maintains object to
Prevent Cutting of Market.
HE DIsAPPOINTs PROSECUTION
Supposed Star Witness Says Active
Competition Was Present
FLAT DENIAL MADE BY vEEDER
Witness Says Packers Pool Made No
Effort to Fix Prices.
ONLY REGULATED SHIPMENTS

Government Contends that Test Cost
Method Was Device for Com
trolling the selling
Prices.
CHICAGO, Jan. S.--wiliam d. Miles,
general manager for the Armour Pack.
ing company at Kansas City from 1891
TO 1902, testified today in the trial Of the
ten Chicago packers charged with Grim.
inal violation Of the Sherman law. that
the old packers pools were organized
to prevent the gutting Of the market
with fresh meat and that there ALWAYS
was active competition between them in
all parts Of the country.
He followed Henry Veeder on the stand
and was the third witness called by the
government
Despite the fact that Miles on two
occasions had given testimony against
the packers before federal grand juries
he proved an unwilling witness today
ana little Of much value to the govern
ment was CLEANED in his direct examlna-
tion.
Miles had been heralded as one OF the
most important witnesses for the prose-
cution and counsel for the government
made no effort to conceal their disap-
pointment.
The witness gave an elaborate descrip-
ton OF the uniform test cost system
used by the packers and explained the
method OF figuring margin profits and
other features Of the intricate system of
accounting.
Two Test Costs.
He brought out for the first time that
there was a BLACK test cost and a
red test cost" used In the bookkeeping
of the Armour Packing company, the
former being used as the flat price OF
the animal and that the latter included
freight and other items of expense. The
government contends that the red cost"
was secretly used by the combination in
the fixing of prices of meat.
Miles told of attending the meetings of
the packers pool in the Counselman
building, Chicago, but the efforts OF
counsel for the government to induce
him to admit that the members fixed the
price of fresh meat at these sessions were
unsuccessful, He said that reports Of
shipments expected, together with the
average price and margin profit earned
70 rthe previous weeks business were re-
ceived and the shipments for the current
week were regulated att he meeting of
the pool. ~
The direct examination of, the witness
had not been concluded when court ad-
journed.
Veeder Makes Denial.
Flat denials OF the governments con-
tention that the old packers pool in the
period between 1893 and 1902 attempted
10 fix the price Of fresh meats or
the price to be paid for live stock
was made by Henry Veeder on cross
examination today. He declared that
the only object of the combination
of packers was to regulate the amount of
fresh meat to be shipped into the differ
ent markets.
The witness said that eacFt of the agree
nents made by the packers in the period
described contained a provision that no
effort should be made to fix prices.
The contention Of the government is
that the uniform test cost method of
estimating the value of the slaughtered
animals was the means used by the
packers TO fix prices
OVershI pnlents Frequent.
The defense also brought out that under
the agreements each member of the
combination frequently overshipped the
maximum percentage allowed. The OBJ
,ect of this was to refute the charge tnat
me operation OF the combination mad the
effect OF restraining the trade IN fresh
meats.
Methods declared to have been used by
The packers TO control the price or fresh
meats ana apporuOn the business on a
uvnUOmpelitIVe basis were turIner re-
,ealed Iouay by Mr. Veeder, on direct
uAaulnatIon,
Ihe witness declared that all records Oh
The odd packers pools had been destroy yea,
30 far as he knew.
When confronted with letters sent out
Dy the pacAers relerrlng TO the shipment
ana price OF fresh meat uurng perlous in
which he SAID there Was no poOI IN exist
ence. the witness apparently grew ner-
yous, but declined 70 deny the genuine
ness Of the documents.
Il would not say whether those letters
were or were not sent out from my Of
fice," Mr.. Veeder said.
The government read a number OF new
letters ana telegramS puTportng TO nave
been sent out by the combination while
Mr.. Veeder was secretary.
Were they sent out by your officer"
Il cannot say, but they look as II they
might have been," replied the witness.
Meat Prices Discussed.
was the price of meat ever discussed
at these meetings OF the packers where
you acted as secretary"
Yes, l heard II said by members that
the prices we're too high or too low on diff
reTent occasions"
Were any instructions ever sent out
from your office regarding the uniform
system of figuring the cost Of slaught-
cred animals?"
Yes, about twice a year. perhaps
oftener."
where would you get the informa-
tlon?"
From instructions received from the
packers at the weekly meetings." Mr..
Veeder replied.
The witness said the funds OF their
,v.oLIrr rarpaptarag vera kent In