Manchester Democrat. [volume] (Manchester, Iowa) 1875-1930, 1912-01-03
BARE. BEEF COMBINE 4 |
e. n. GARY WAS TO HOLD ASSETS
FOR LOAN TO sYNDI-
CATE.
BIG MERGER WAS PLANNED
Attorney veeder Says Panic Baked
Agreement for $5oo,ooo, GOO Com.
pany-Packers' Pool Known
as r. o. Box 247.

Chicago.-E. H. Gary, chairman OF
the board of the United States Steel
corporation, and P. A. Valentine, for
merly treasurer for Armour & Co.,
figured in the trial OF the ten Chicago
packers, charged with violation OF the
Sherman antitrust law. @
The names Of the two tinanciers
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 S15,OO0,O0O in the formation OF the
National Packing company.
q 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 ]. Ogden Armour.
The old pool of packers, 1t devel-
oped, was known only as p. o. Box
247." Mr.. Veeder testified that he
knew OF no name for the association,
but it was said that "P. o. Box 247"
was the mysterious name under which
the pool worked.
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 cOmnany
Veeder was asked why the Chicago
packers did not take over the firm
of Schwarzschild & Sulzberger, busi-
ness In November, 1902, as contem-
plated. Mr.. Veeder explained that
the $500, 100000 merger Of the pack
Jers was in progress. but that the
financial strain of 1903 prevented the
promoters from securing a loan OF
$90,000,0O0 from New York bankers
to carry the deal through.
Kuhn, Loeb & Co., as managers OF
the syndicate, were to receive either
one-fifth OF the syndicate's profits or
one per cent. Of Its par value.
After James Stillman. Kuhn, Loeb &
Co., and E. H. Hartman failed to pro-
duce the $9O,OOO,OOO, Mr.. Veeder said
loan of $15,0OO,0o0 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 $S,OO0.O0o 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 100000 as a matter OF good
faith when the $5O0,0OO,OOO 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 Is. 1902.
which. made Michael Cudahy a party
to the contemplated $500, 0OO,OOO
merger also was introduced.
The government intends to show
that the National Packing company
paid back the loan OF s15,OOO.OOO with
accrued interest to the New York and
Chicago financiers three years from
the date OF the loan in 1902