The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1917-12-20
Pay Him All Profits Over 8 Per
Cent Is Agreed.
To Prevent Him From Moving
Chicago Stockyards.
DUMMY CLERK HOLDS STOCK
He Transacted SS,OOO,OOO Deal
He Knew Nothing About.
Agreement So Packers Might
Get "PortiOn of the Plunder."

Washington, Dec. 2O.-At the fed
eral trade commissions investigations
of the Chica go stock yards here today.
F. r. Hart, one of the principal fig
ureS in the stock yards company, testi-
fled that it had been agreed to pay
j. Ogden Armour all the compary'S
earnings over per cent to keep Ar
mour from moving the yards away
from Chicago and farther west
With other sensational testimony to
show that the company was organized
to keep the plants from being moved
away letter from S. H. Fessenden. q
Boston broker, who assisted in the
organization, was read, saying the pro-
ceedings were merely to legalize re-
bates to packers so they might have
"a portion of the plunder" and might
have their ''pickings."
Certified minutes of the first meats
ing of the Chicago stock yards cons
pany on September 27, 1911, were in
troduced to give details of an agree
ment between Pegram and the COM
pany. The minutes recited that
Pegram had attained the assent of the
holders of $4,000 shares of the com
mon stock of the Chicago Junction
railways and Union Stock Yards conn
pany to plan formulated by COM
mittee headed by Richard Olley as
chairman.
1t was said the plan assures to
| the Chicago Junction railways and
| Union Stock Yards company the con-
| tinuance of the business now carried
| on by the packers upon permanent
| basis and a great increase in profits
and the value of the shares of stocks"
| Pegram was recorded having given
the plan, and assets and $1,000, COO In
! cash to the company for IS, 600, 900
in common stocks. Pegram who pre-
| Ir1n cl h0 fInf II Ia.
was $1,000 a year, testified that he
knew nothing of the agreement as set
forth in minutes
| Mr.. Hart told the commission the
plan was devised because there seemed
great dangers of business being driven
| away from Chicago to places further
west. Shareholders in the stock yards
| and terminal railways who lived IN
New England were out of touch with
| their principal clients, the packers
and were afraid they were going to be
| left with the yards and railroads. but
no cattle business. Therefore, he said
| company was organized to assume
| the risk. Asked how the formation
| OF a new company was expected to
assure the continuance of the pack
| ing industry in Chicago, Mr. Hart said
that Mr.. Prince knew Mr. Armour
personally and his influence was ex-
| ing the packing houses in Chicago.
Deal Made TO Hold Clients.
Did you know that the Chicago
junction railway was paying per
cent dividends and had 100000 sur
plus?" asked Mr.. Heney.
Why was an effort made to in
ouce the common stockholders to
come in on plan guaranteeing them
only l per cent more and with noti1z
ing back of it but probability"
| Il don't see why not" the witness
replied. You don't seem to grasp the
business situation"
Possibly not interjected Mr.
Heney.
There is no good in assent unless
the property would be worthless If
Mr.. Princes influence failed, these
shareholders would have been no
| worse off. l do not consider that the
price asked was exorbitant to get
someone else to take the risk" said
S1,OO0.O00 was paid into the companx.
Hold Packers Notes.
DO you consider it a good invest-
ment if the money was loaned out aI-
most Immediately to Prince ara Ar-
mour?" asked Mr. Heney
If it was loaned to Armour" the
witness replied, ''it was Indicative OF
the correctness of my assumpti n that
Mr.. Princes relations with him would
be of an intimate nature"
Wasn't the board of directors when
the money was paid in merely in
dummy"
Il relied on Mr.. Prince and his
counsel to see that the company re-
ceived adequate protection" Mr.. Hart
replied.
Pegram previously had testified that
the Chicago Stock Yards company
held a note of Armour for 100000.
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