Dakota farmers' leader. (Canton, S.D.) 1890-19??, 1912-01-05
PACT IS EXPOSED
PACKERS ATTORNEY PRODUCES
CONTRACT FOR LOAN WHICH
HELPED FORM TRUST.
WITNESS NAMES E. H. GARY
Noted New York F%Inanelsrs Are Men,
toned In Court a. Backers OF Pro
posed Gigantic Merger Of Chicago
Meat Firms.

ChicaKo.-P. A. Valentine, former
treasurer for Armour Il Co., and &c. n.
Gary, chairman of the board OF the
United States Steel corporation, hg-
ured conspicuously in the trial Of tho
ten indicted Chicago packers charged
with violating the Sherman antitrust
act.
The names of the two ~nnanciers
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 SIS, O0O, 900 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 b 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. 0. Box
247." Mr.. Veeder testified thai he
knew OF no name for the association.
but 1t was said that "P. o. o 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.
Vondnr 1x,oc ooknd univ tho rhtra0n
packers did not take over the firm
OF Schwarzschild & Suizberger bust
ness In November, 1892, as contem-
plated. Mr.. Veeder explained that
the $4,000 900 merger Of the pack
ers was in progress, but that the
financial strain of 1903 prevented the
promoters from securing a loan o I
$50, 600, 600 from New York bankers
to carry the deal through.
Kuhn. Loeb & Co., as managers OF
the syndicate. were to receive either
one-ffth Of the syndicate's profits or
n per cent. OF It's par value.
After James Stillman, Kuhn, Loeb &
Co.. and E. Fl. Hartman failed to pro-
duce the $50, zoe 5000, Mr.. Veeder said
q loan OF SIS, 100000 was a 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 ]. Ogden Ar
mour. Edward Morris and Gustavus
Swift in 1902, according to the testi-
mony OF the witness.
A loou ~ 90 nnO Onn frorn tha kNPof
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 $4,000, 900 as a matter OF good
faith when the 1000. 900 merger
was contemplated in 1902.
The agreements between the pack
ers and the bank relative to the de-
posts were read into record.
An agreement on July IL. 1902,
which made, Michael Cudahy a party
to the contemplated $500. 100000
merger also was introduced.
The government intends to show
that the National Packing company
paid back the loan OF SIS, 900, 200 with
accrued interest to the New York and
Chicago 1nanciers three years from
the date of the loan In 1902.