Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1912-01-04
GARY NAMED IN
BEEF SYNDICATE
Contract Shows He Was to Hold
Assets for Loan.
BIG MERGER WAS PLANNED
Attorney Veeder Says Panic Baked
Agreement for 100000 Com
bine-Syndicate Known as
P. o. Box PAT.

Chicago-P. A Valentine, former
treasurer for Armour & Co, and
E. H Gary. chairman Of the
board Of the United States Steel cor
poration, figured consptcuously in the
trial Of the ten indicted Chicago pack
ers charged with violating the Sher-
man antitrust act.
The names Of the two fnanciers
came out when Pierce Butler, assist
ant to the attorney general, ques-
toned Albert H Veeder. former coun-
sci for Swift & Co., regarding con-
tract No. Z, which provided for a loan
Of $15,0O0,000 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. it devel-
oped, was known only as "P. o. Box
al" Mr. Veeder testified that he
knew Of nc name for the association,
but it was said that "P o. Box 247"
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 Beef and Provision
company.
Veeder was asked why the Chicago
packers did not take over the firm
of Schwarzschild & SuIzberger bust
ness in November, 1902, as contem-
plated. Mr.. Veeder explained that
THE S500,000,000 merger of the pack
ers was in progress, but that the
financial strain of 1903 prevented the
promoters from securing loan of
S90,000000 from New York bankers
to carry the deal through.
Kuhn, Loeb & Co, as managers of
the syndicate, were to receive either
one-tifth OF the syndicate's profits or
one per cent. Of its par value
After James StiIlman, Kuhn, Loeb &
Co, and E. H Hartman failed to pro-
duce the $9O,0O0,OO0, Mr.. Veeder said
loan of SIS, 100000 was made by the
same financiers in July. 1903, 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-
mony of the witness.
A loan of $8,0U0OO0 from the First
National bank made to the Armour,
Swift and Morris interests toward the
formation Of the National 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 S4000,000, as a matter of good
faith when the S5OO00O,OOO merger
was contemplated in 1902.
An agreement on July IS, 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 s15,00O,O0O with
accrued interest to the New York and
Chicago ffnanciers three years from
the date Of the loan in 1902