Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1917-12-21
HENEY SEEKS PROOF
! OF S3,6OO,OOO STEAL
Aims to Show Shareholders in
Chicago Stock Yards Were
Fleeced \
SWIFTS REFUSE FILES
Committee Contends Manipulations
Started Meat Cost on Way
Skyward
WASHINGTON. Dec. 81.

WASHiNGlON, DeC. sl'
As Francis ]. Heney today tried to
show fleeing of s3.6O0.O00 from stock
holders in the old Chicago Stock Yards
Company, packers made their first open
move to block the Federal Trade Come
missions food probe.
Swift & Co. refused to permit Fed
eral agents to examine private files,
Heney stated. Should the company con-
tnue this policy the courts will be APP
r pealed to. Heney said.
The commissions purpose in making
these disclosures years after the alleged
offenses occurred is to throw the light
Of pitiless publicity on food control in
the United States. The statute of limi-
tations may prevent prosecution on some
offenses, IL proved But, as one probe
official st lted today. the statute of limi-
tatons does notoutlaw publicity or Gov
ernment ownership of packing plants.
Expose of the packers ownership of
stockyards, alw lys vigorously denied by
them, is tho first move in the commits
sion's plan to show who controls the
nations food supplies. The fact that a
dummy bookkeeper handled $1,000. 900
cash and sS,000,000 worth of stocks in
the transfer of ownership of the Chicago
s,ockyards in 1911 showed the high
finance in Americas food problem, ac-
cording to Heney.
SHOWS SECRET ARGUMENT
Heney brought out from w. N Wad-
den, ex-treasurer Of the old Chicago
Junction Railways and Union Stock
Yards Company. that +. IT, Prince. its
president, secretly agreed with J. Odgen
Armour to form the Maine holdings
corporation. Stockholders in the former
lost s3.60O.00O in accrued surplus by
this deal, Heney charged.
Tattered sheets of foolscap, traced
across with faded shorthand notes.
revealed the cutting of the melon among
the promoters of the new concern. War
den recognized the notes. as dictated
TO him by Prince in 1910, concluding !:
Leaving $500, 900 in surplus accru-
ing to promoters Of the new company.
our shire to be in proportion to our
holdings"
Heney attempted to show that the en-
tire management of the yards had been
corrupt had feeced stockholders of mil
lions in dividends and had worked in
close collusion with the packers.
Armour & Co., IIeney developed put
from holders in tho parent company.
The packers and the controlling clique
in the old company conspired to trans
fer the property to the new concern,
Heney sought to show.
Directors of the old company, Heney
drew from Walden. were merely a
dummy" board controlled by Prince.
These directors had been selected by
Walden. who entrusted TO them ten
IS ,,l, 20, tl.,,
as stockholders.
4 cable from Prince to Walden
showed that half the expense, "or ALL .
of engineering the transfer of stock to
the new Maine company was to be
borne by the packers.
ARMOUR FOOLED REPORTERS
A tale Of how Armour & Co. threw of
the scent Chicago reporters who. in
1911, gN wind of the deal, was ther
told.
I'VE, of course. denied all knowledge
. of the matter in speaking with re-
porters." L. w. Croll, confidential secre-
= tary to +. Ogden Armour, wrote Prince
Croll en- route to Washington was to ap.
pear at this afternoons hearing
Another line connecting the present
yards management with the big packers
was traced when Heney established that
Walden, Prince. Armour and other
. packers are joint owners in the Bakers
Realty Company, Boston brokerage
house.