The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1917-12-21
Packers COnnived To Take Over
Company and Split Surplus.
Dummy Board, Controlled by
Prince, Manipulated Deal.
HENEY CHARGES "BlG STEAL" "
Swift & Co. Reject GOv't's Re-
quest for Company Records.
Stbckyards Official, ''III and Or
dered South" Can't Testify.

washington. Dec. 21.-As Francis ].
Fenev today tried to show Fleeing of
S9.60c 600 from stockholders in the
old Chicago Stock Yards Co, packers
made their first open move to block
the federal trade commissions food
p. ODE.
Swift & Co refused to permit fed
eral agents to examine private files,
Heney stated. Should the company
continue this policy. the courts will
be appealed to, Heney said.
Herey bI ought out from w. N
Walden, eN-treasurer of the old Chi
cago Junction Railway and Union
Stock Yards Co, that +. H. Prince, its
president, secretly agreed with j. Og-
den Armour to form the Maine mold
ing corpo. alton. Stockholders in the
70 mer lost $3,60O,000 in accrued sur
plus by tins deal. Heney charged.
Old Records Tell Tales.
Tattered sheets of foolscap traced
across with faded shorthand notes
revealed the cutting of the melon
among the promoters of the new con-
cern. Walden recognized the notes,
as dictated to him by Prince in 1910,
concluding leaving $5,6OO.OOO in sur
plus, accruing to promoters OF the
new company, our share to be IN pro-
portion to our holdings.
Heney attempted to show that the
entire management of the yards had
been corrupt; had fleeced stockhold-
ers of millions in dividends and had
worked in close collusion with the
packers.
Armour & Co. Heney developed, put
up 100000 toward buying in the
stock from holders in the parent COM
pany The packers and the control
ling clique in the old company con-
spred 10 transfer the property to the
Lew concern. Heney sought to show.
The directors of the old company,
Heney drew from Tadden, were
by Prince.
Denied Story to Newspapers.
These directors Walden admitted.
had been selected by Walden, who en-
trusted to them ten shares of stock
each TO give them the status of stock
holders.
A cable from Prince to Walden
showed that half the expense ''or all
of engineering the transfer of stock
- the new Maine company was to be
borne by the packers.
a tale of how Armour & Co. threw
off the scent Chicago reporters who
IN 1911 got wind of the deal was then
told.
We, of course. denied all knowI-
edge of the matter in speaking with
reporters" f. w. CroIl, confidential
secretary to J. Ogden Armour. wrote
Prince. CrOll, en- route to Washing
ton, was to appear at this afternoons
bearing.
Another line connecting the present
y1rds' management with the big
packers was traced when Heney estab-
lished that Walden, Prince, Armour
nd other packers are joint owners in
the Bankers Realty conOpany Boston
brokerage house.
Were Refused Information
II was said when the commissions
Investigators went to Chicago they re-
faH IL
officers of Swift e Co. and that direct
demand for the records had been re-
fused. To obtain the papers. which
relate to the ownership Of the Chicago
stock yards and other details of the
meat industry the commission will go
into "a federal court and ask an order
compelling the company to produce
lAem. Mr.. Heney also announced re-
celpt of a telegram saying that c.
{. Chase of Chicago, auditor of the
mon stock Yards & Transit com
pany. was i'll and could not answer
the commissions subpoena The
telegram said Mr.. Chase has been
ordered south for an indefinite time"
Mr.. HencY added:
4 desire to inform the commission
tnat We have enough evidence without
MT Chase's testimony to make a
pFima facle case and then the pack
efs can do what explaining they think
necessary
show Up Packers Pool.
Francis J. Heney, special counsel.
today continued his efforts to show
tnat the packers are closely allied
mat while outwardIy competing, they
Iorced up prices, pooled rebates and
uOHuSes ana considered not the con-
suLalng public, but their own purposes
The commission purpose in maxi
ing these disclosures years after the
alleged offense occurred, is to throw
sne light of pitiless publicly on food