Arizona republican., 1917-12-23

Mir. Heney charged that by control | ling the principal cattle markets of the country, the apckers are in a posi- tion to manipulate the nations meat supply as well as dictate prices to both | producers and consumer He said that the large profits of the stock yards and railway companies came chiefly from the producers, who pay storage, feed and haulage charges which constitute the bulk of the company's income.
 Records were introduced today to show that other packers besides Armour and Company are interested in the Chicago stock yards. Persons connected with the Swift and Morris interests appeared on the lists of di- rectors of the Chicago Junction Rail- ways company and the Chicago Union Stock Yards and Transit company, op- erating the terminal railway and the stock yards. These companies are owned by the Chicago Junction Rail- ways and Union Stock Yards company of New Jersey, which in turn is con- trolled by the Maine Corporation formed by Armour and Prince. Fred erick W. Croll, treasurer of Armour & Company, said he could not explain why the other packers should have representation on these concerns.
 Croll admitted that Armour &; Com pany had large interests in cottonseed oil plants in Texas, Arkansas and Ten nessee and that Armour and Swift were interested in cattle trade papers in Fort Worth and Denver.
 Millions of dollars of Chicago real estate, known as the Central Manufac- turing district, appeared in a list of assets of the Chicago Junction railways and Union Stock Yards company. MT. Heney called particular attention to the assets of this company because or representations made to small stock holders when Armour and Prince gained control of the company, that the companys property was in danger Of material depreciation in order to get small investors to surrender their stocks and accept a guaranteed nine per cent dividend.
 In attempting to market the bonds after having gained control of the Junction Railways Company, the Chi cago Stock Yards company told inves- tors, according to records introduced,
 
 pany amounted to s47 900. 900 includ- ing 80 acres of land in Chicago and 20O miles of belt and terminal rail- ways. Attention was called to large surplus earnings from 1907 to 1911.
 Tt appears that one set of repre- sentations was made to get the stock ] and another to sell the bonds," com i mented MT Heney
 Manipulation of share warrants ot the Chicago Stock Yards company payment of dividend checks to dum- mics and alleged arrangement of earn ings of a subsidiary company to con- ceal excessive profits also were touched upon today. Records of the Maine cor poration showed that redistribution oi share warrants was made the same day a federal trade commission inves- tigator asked to examine the books.
 Discussion of profits attracted con- siderable interest from the commits sion as to Armour's return on his in- vestment Mir. Heney explained tha Armour put up S194000 of the origina s1,000,000 used to promote the Chicago Stock Yards company and gain con- trol of the Junction company's SAT, ,O0O,- 900 assets. A letter from Prince ad. vised Armour to take advantage O the reorganization proposition to ex change Junction company stocks fo bonds at a rate of two for one, thel sell the bonds. which would net him ] profit of s117,G00. Armour owned $50 shares of Junction. Later, it appeared , from the records the packers invest ment was cut to 1000 Armour ha been getting approximately S77,Oo yearly in dividends and besides appear in the records as having borrowe, l s200,0O of the original million iron the Maine corporation. The interes charged was not shown. He obtaine for his s194,00 a total of 15,520 shares par value S1,552.0O0 of the corporation
 which is capitalized at $S,000,000.