The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1912-01-03
Letters Show How Beef
Packers Manipulate
ed NJ ark e t.
FLATLY REFUTE
WITNESSES STORY
Territory Apportioned by Pool
and Price to Be Charged Fixed.
Documents Turned Over to
Prosecution by w. D.
Miles, Former Manager
of Armour Company.

Chicago, ILL.,. January 2.-Docu-
7nentary evidence that the price OF
meat was flxcd and the business appor.
toned on non -compctitiv basis by
tho packers at their weekly meetings
vas introduced by the government to-
day at the trial of tho ten Chicago
packers before United States District
Judge Carpenter. Special Counsel
Pierce Butler read several letters re-
ceiHed by w. d. Miles, manager of the
Armour Packing Company. Kansas
City, in June. 1897. in which the
amounts of beef to be Slipped to Ger.
tain Eastern markets were given and
the price TO be charged, based on a
margin OF 80 cents on tho uniform test
cost estimate used by the packers
was named. The letters also natiy re-
iutcd the statement OF Henry IL
Ncefcr on the witness stand that no
meetings Of the packers TO fix prices
and apportion business were held be-
tween April. 1927, and January. 1895,
when statistical bureau" was
maintained TO compile records OF mea
shipped and prices obtained at diff
terent points. Miles, who severed his
connection with the Armour interests
In 1903, will. 1t Is said, be one of the
star witnesses for the government.
How Prices Were Fixed.
One of the letters. dated Juno 30.
1897. read in part:
Dear S!r.-This afternoon IL was
agreed that each party will not ship
during the current week in excess OF
shipments agreed upon for last week.
Boston: At this point 1t was agreed
that each party In interest will not
ship during the current week in ex-
cess OF his proportion of total ship
ment of 100 cars. basins such proper
ton on the average weekly shipmen Is
to Boston for the eight weeks ending
June %, 1897. II was also agreed that
parties in interest would cndeavor to
obtain for the current week margins
OF so cents.
pittsburgh: II was agreed that
each party in interest would not ship
in excess OF 30 per cent. of the aver
age weekly shipment for the four
weeks ending June 26. 1897"
The letter contained directions lin
iunS the total shipments for the week
of June 20. 1897. to 22.277,0cs pounds
OF fresh meat. of which 1000, 00o-wcnt
to Boston and 7l2.9l2 to Pittsburgh.
Several similar letters were introduced
by the government, and It was pointed
out that they were all unsigned and in
the form Henry Veeder testified the
packers letters were written.
After Attorney Butler had questioned
Henry Needer, secretary of the pack
ers' pools, regarding the details of the
combinations from May. 1896, to July
!. 1902. when the witness said the last
fresh meat pool dissolved and he nov
cred his connection with the packers,
the government attorney sprung n sur
prise on the defendants by reading the
letters and offering them In evidence
Does the reading of these letters
refresh your memory in regard TO an
arrangement at that time covering tho
shipment OF beef and the fixing of The
price," asked Attorney Butler.
No. although I do not question the
genuineness of these letters" said the
witness. They Indicate that IL there
was an arrangement 1t was OF a tenn
porary character"
Henry Veeder, who was still on The
stand when court adjourned, testified
that no meetings OF the combine were
held between 1896 and 1898.
AT the suggestion OF z. j.. Margin,
OF Armour & Co, statistical bureau.
was organized, TO which weekly re-
ports Of the amount of beef TO be
shipped and prices were transmitted
by mail. The same packers were in
the plan IS In the old pool" he said.
What was the reason for the aban-
comment OF the old pool and the or
of the Statistical hureau?"
Market Wns Flooded.
The Schwarzschild and Sulzbergcr
people had increased their business 10
such an extent that it was impossibie
10 prevent the flooding of certain mar
kets and maintain prices.
Is 1t not true that n government in
Vestigation of the packers was beeu,
and that led the packers to dissoIve
the old poole" asked MIR. Butler.
There was some kind of an inves-
.'sation' but | do not remember the
details or the dates" replied Mr.
Veeder.
The witness said the "statistic,,
bureau" remained In existence. mil
January. 1898. when tho packers went
back to the old arrangement of hold.
Ing meetings every Tuesday to deter.
mina prices and apportion business Nv,
a percentage basis.
In March. 1898. the witness a,ia
Schwarzchild and Sultzoerrer We.
taken into the combination and ann+ ;,
report to the meetings.
That agreement, the witness sa;d
was for three years. and expired in
1901. when new agreement for three
years was entered Into.
u. j. Martin, Armour & Co.'S repro-
sentative. died in 1899. the witness
said. and after that Arthur Meek or
attended tho packers meeting in he.
half that company.
Continuing his recital, Vecder said
mat under the agreement made In
1871. penalty Charge for overshipment
was 20 cents per 100 pounds. He said
comparative statements OF profit mar
gins were furnished members on ap-
plication md added that r. hoi,.,,a