The Ekalaka eagle. [volume] (Ekalaka, Mont.) 1909-1920, 1912-01-12
SW'F It's ATTORNEY SAYS TRUST
WAS TO BE CAPITALIZED At
$500, 600, 600.
PACKERS TRIAL FINALLY BEGUN
scheme to Corner Country's Output
FaiIed-Court Denies Motion to
Bar Testimony Prior
to 1905.

chicago. Dec. 2S.-Details of the
plan for IL $500, O0O, 900 merger of the
Armour. Swift and Morris interests in
l9o2 by which the government con.
tends 1t was sought to control the
meat industry of the country were re.
vealed in the trial Of the ten Chicago
packers before United States District
Judge George A. Carpenter.
The original agreement was produc.
ed in court by Albert II. Veeder, at
torney for Swift 4 Co., who was
called by tho government as it's first
witness.
Attorney Eeeder testified that the
plans FOR the merger were abandoned
and that in March, 1903. the National
Facklng company was organized to
operate certain Independent packing
companies purchased with a view Of
including thcm in the big
Bonds in Payment.
Armour. Swift and Morris were to
receive bonds and preferred stock of
the new company in payment for tho
value OF their tangible PROPERTY. In
a0dltlon to this, the promoters were
to receive $25 10000 Q worth of the
new company's stock for intangible
property. and a large block of com.
mon stock for their good will. this
amount to be fixed by the earnings Of
the different plants during the first
year OF the new mercer
The promoters planned to borrow
S9o,ooo, goo to finance The giant corpo-
ration. The appraised valuation of
Armour, Swift, Norris and their sub.
sldlary companies was given at $780,
100000. Each of the three promoters
deposited 81 200. 900 with a Chicago
bank as an evidence Of good faith. but
they We're compelled to drop the plan
because of the failure of certain New
York capitalists to furnish the funds
needed.
Previous to the calling of Veeder to
the stand the defense made an unsuc-
cessful attempt to have excluded from
the gov ernment's cast all transactions
prior to 1905 on the ground that the
immunity plea which reed the packers
when they We're indicted seven years
= Ac'tAu Apply ~ lldl pei IOu.
Veeder, at the beginning Of his di.
rect examination. admitted that the
packers had solne sort of organization
which met every Tuesday afternoon i in
the Counselman building. Chicago, on
the same floor with his law office, and
that his son, Henry Needer, acted as
secretary in 1900, 1901 and 1902. He
did not know the name of the associ-
alton. as it was not on the door of the
office, and he did not know what bust
ness was transacted at the meetings.
The government contends that it
at these meetings that the price
OF meat was fixed and plans discussed
for h suppression of competition.
Veeder Questioned.
Veeder a. closely questioned re-
gardins the Kenwood company and the
Aetna Trading company, but he pro-
fessed ignorance of their business. He
admitted the kenwoOd company was
organized in his office but said he was
not present at the time.
The witness said he had heard that
at the pool meetings the different COM
panies and the territories allotted to
them were designated by letters. He
said Territory A was north OF the
Ohio river and east of the Missouri
river. He said Armour was known as
A among the companies.
He did not know the letters used to
designate the other members of the al
legged pool. He said the association of
packers vas dissolved in 1903 and his
o who had acted as secretary. was
taken into his law office as a partner.
The witness said he first became at
torncy for Gustavus II. Swift in 1885
and hat on different occasions he had
served as director for Swift 4 Co.,
panies.