Pierre weekly free press. (Pierre, S.D.) 1889-19??, 1918-01-31
PACKING TRUST
NOT DISSOLVED
-S. j. HENEY
Claim Packers Have Divided
Country Into Districts to
Cut Competition in
Buying Stock.
TRIED TO STOP PROBE:
Sensational Disclosures of Null
tifold Interests and Efforts
to Reach Wilson Are
Brought Out.

head off the inquiry, to evidence of
packing house interests in Kansas City
street railways, in the tin industry, and
finally to documentary evidence OF an
agreement of the five great packers to
divide the country into five districts
for buying livestock for the purpose OF
limiting competition betWeen them.
An old and creased bit of paper was
put into the RECORD to show that the
agreement between the packers made III
1903 under the name of the National
Packing company, had been continued
and extended after the National Pack
ing company had been dissolved by the
federal courts in 1912.
Division Of Business.
III. A. c." said to be H. A. Chatam,
private bookkeeper for Edward f,
Swift, who had asked: Can YOU give
me Ma. P. G. percentages?"
centagcs?"
Underneath this was written: "a. &
Co, 40.11, S. & Co. 46.I0; Nj. d o.
l3.19,' which were said to be represent
atiNe of the holdings of Armour. Swift
& Morris in the National Packing COM
pany
Attorney Heney, for the commission,
declared it had been found that when
the National Packing company was
dissolved, the properties We're divided
so that each OF these three packers
could retain the same percentages of
business in each city which they had
enjoyed before the dissolution.
Furthermore, he added, in 1918, the
Sulzberger corporation, which later be
came Wilson & Co, and Cudahy K Co,
were brought in or a new basis, which
he declared wa still in force. Ihls
basis, he said, covered the purchase OF
cattle, sheep and hogs throughout the
United States. even the country buy,
ing. He called attention to a second
notation which read as follows:
"A. 1925; S. 35.T5, NJ. 14.9s; 5. q >.
10. 90; G. 100"
Says Agreement Still Holds.
Walter Twombly, IA trade commits
sion special agent, who found the mem
orandum in the Swift files, was put on
the stand to testify regarding the cir
cumstances. He aid that Edward f.
Stephenson, an employe of Swift n Co..
entered the room where he was work
ing and, noticing the memorandum.
asked him if he had found something.
Twombly said he told him that he did
not know and asked him if he had.
NO, just forget it, Stephenson was
said to ave replied.
Mr.. Henry told the commission that
in addition to showing tina purchases
pf live stock were made in the exact
proportions set forth in the menloran-
dunn, that all joint expenses of the
packers, such as the opposition to the
Borland resolution in congress for an
Investigation of the livestock industry,
were met in the same proportion.
We have letters to show that this
understanding has been in effect since
1913 and is still in effect" MI. Henry
said.
Mr.. Heney told the commission that
he would show later that a joint tele-
gram sent recently to the president by
a number of Detroit bankers protest
ing that the investigation was disturb
ing economic Conditions. a been in
spired by the packers.
Mr.. Heney's statement was made in
connection with the reading of further
confidential documents taken from the
files of the Chicago packers, which
showed hat the packers planned an
elaborate campaign in 1916 to influence
congressman against ordering an in
V%estiSation into the live stock II meat
packing industry, as was proposed in
the Borland resolution. The recommen-
3ation was made by counse for the
packers hat they should undertake to
have the judiciary committee flooded
with kilograms from ali over the coun-
try, especially the congressional dis
tricts Wh4re the members came from,
protesting against passage of the Bor-
land resolution on the grounds that
live stock was selling at very satisfac-
tory prices, and my Investigation
would only disturb sucb satisfactory
conditions.
OF Hamilton Ohio" the memorandum
Of counsel reads. perhaps Proctor, of
CINCINNATI. ilnGws him"
Sought to Use Soap Maker.
Questioned by Commissioner Muir
dock. Mr.. Heney said the Proctor re-
ferret to was the soap manufacturer
Mr.. Nstirdock found considerable inter
80 s-. e H.
which, recommended that all the mas
sages should be varied. He said it was
the psychology of congressman that
when they received a large number OF
kilograms. identical in form. they sus-
pected somebody was trying to "put
something over" which undoubtedly
was recognized by the packers also. In
dication that the packers had advance
information Oh what was being done ir
connection with the Borland resolution
was contained in a memorandum take1
from the files of Wilson & Co., but
which carried a notation showing that
1t WIS sent to all of the big five pack
Ing companies. The memorandum said:
MIR. Faulkner Counsel for Armour)
has received Word from Washington
that the Borland hearings have been
definitely set for June %. Do not men
ton the fact that we have this advance
Information as the official word. prob
ably will be out within a day or two
It is not believed that Mr.. Fisher knows
It is yet"
Mr.. Fisher referred to was Walter
Fisher, counsel for the sliye stock men
who were u.gin. tho investigation.
Control Other Lines.
Statements by Francis J.. Heney that
Armour a. 60. had been found to con-
troll the street railroads of Kansas
City was the first indication that the
financial! ra~mifications of the packers
touched many street railway systems.
The influence Of the packers in
Kansas City is more widespread than
in any other city in the United States
excepting Chicago" Mr.. Heney said.
Evidence OF the packers influence in
the tin industry also has been discov-
rred. MIR. Heney old COMMISSIONS
Murdoch. who asked about that phase
u fhe inquiry. after remarK!ag that
ths packers we're broadening their &C