The Madison daily leader. [volume] (Madison, S.D.) 1890-current, 1890-08-20
A New Twist Given the Chi
cago Stock Yards Deal
Capitalists Are Mad.
Recent Disclosures Cause the Organ
ization Of q Band Of Irats
Stockholders
An Infant Industry Which Has Been
Watsred Twelve Times
An interesting Story
CaasAao, Aug. IA.

The fact that the BAG transfer yards IL
Stiokney arc about In condition for bnsi-
ness has caused revival OF the story that
the union stock yards are to 60 there. and
has also caused people 10 wonder about
the latest news regarding the sale Of that
big property. A sale. 10 all intents aud
| purposes. has been made, but as far as the
public In concerned none has occurred.
Nov comes the suspicion that somebody
has been pinchsd In tbs big deal. The
promised organization has not been ef-
fected. A directorate Is said 10 hare been
chosen, but THAI IL all
One thing, however, Ia certain. The
disclosures growing cut OF the sale are re-
sponsible for the organization of O small
but wealthy and irafe band OF former
stockholders, who propose visiting Spring
Geld this winter and either making the
company pour more oil ON the wheels Of
legislation or causing q reduction in
charges at the yards. These men are sat
isied now that the syndicate vas not an
English one, but purely American, whose
members we're interested iu the old con-
pany, and while making money 90 their
Investments wanted more. They are SAT-
is6sd, too, that they have been frozen out.
Previous TO the annexation of Lake 90
Chicago the stock yards company owned
that burg. When the big cut began, the
rnmor goes, they opened the strong box,
the contents Of which had brought them
victory many times before. Those to whom
ths fsht and funds we're intrusted imag-
insd the battle won before the collision
occurred. and instead Of iudicious distri-
button OF tho money put II into their own
pockets. The company was loser. When
tho drainage qnestion came up the COM
pany's candidates were badly beaten. Ia
was than the company realized It's peril,
and iusids parties know the property vas
hAwked about for sale. A syndicate of
Englishmen who wers shown the growth
OF the institusion wanted 30 purchase and
offered $i60 share. They would pay only
q small portion In cash, aud to such
proposition the yandsrbilts would not lis-
ten. The matter dropped.
II was then that Frederick PTince. OF
Boston, took toe matter In hand. A syn
dicate xas organized and Mr.. Prince offered
$3.50 share for the majority of the stock.
Ths promised payments we're most satis-
factory, and then President Thayer sent
ont his circular 10 The stockholders. II
had ils effect. The small holders, not
wanting to be identified 10 business with
strangers, accepted the terms. Bot ell Of
the Enalishmen who went into the scheme
at FIRST did not do IL blindly. There is
considerable Enelish capital Invested al
ths yards. and the fnaneiers ACROSS the
~
With the Chicago men aud solicited the
latters advice. In nearly every case the
answer was unfavorable TO the project.
The company threw open IFS books and
the practiced, professional accountants
employed by the syndicate proceeded TO
work to see what the eompany's business
amounted 90.
The result of the accountants work
khnxed the company net EARNINGS 10 be-
81 .73s, 600 last year Not one penny the
officials sag, was deducted 10 cover ex-
penses, an enormous sun every year, and
u will be on the Published statement Of
the eompany's earnings that the Legislature
will be asked TO act.
The underwriters IN the meantime had
ssizs the stock which few mad Sub
scribsd. Many of the original syndicate
had, however, abidsd by the advice given
them. IL is In this blissful condition Of
affairs that the scheme rests.
n has provoked q storm among the COM
pany's old friends, one of whom said
This il on infant industry. II has Leen
watered twelve tines, from 81, 900, 900 20
$4,000, 900. The same prices. substan-
italy, charged In 1865 ars 10 vogue now.
Nov these people propose TO issue bonds
for sl0.o00,000, making 90. .O0O, 900 water.
and Chicago bankers ars quoted a. saying
that Ia time the new securities will be az
eagerly sought for as the old, and will be
~ valuable, which simply means that the
farmer instead Of helping TO make dividends
on $4,000 600 win soon pay on S23,000.-