The Washington times., 1917-12-20
AENEY DIGS
DEEP INTO
AFFAIRS Of
BIG PACKERS

The late Richard olney, OF Boston.
former Secretary of State, was one
Of the organizers of the Chicago
Stockyards Company, a corporation
formed by Boston bankers with
dummy" directors, to take over the
stock of the packers tdust when the
trust was ordered dissolved by the
Federal courts.
The Federal trade commission
brought out this fact today in the
FIRST session of its investigation OF
food profteering. Papers produced
by Commissioner Heeney showed that
the plan for organizing the Chicago
StocIysrds Company was worked out
in Boston on September %, 1911. by
= committee OF six men shortly after
the packers trust was ordered dis
solved. The six men were Richard
oIney, Samuel Carr, Guy Norman. S.
L. S. Shoemaker, E. V. r Thayer, and
=. r. Hart
At this meeting the scheme for
purchasing $4,000. 900 shares of stock
OF the old packers trust for 81 ,000. 900
in cash was formulated. The entire
transaction was carried out in the
name OF F. r. Pegram, who was the
FIRST witness in the commissions in
Nestigation today.
Only Dummy Director.
Pegram showed that he is merely q
dummy official, and that a banking
syndicate controls the organization.
The members OF this syndicate, ac-
cording to Francis ]. Heney, investi-
gator for the commission, are the Old
Colony Trust Company, Boston; Mer-
chants National Bank. Boston; Chase
National Bank. New York; F. S. Nose
ley & Co, brokers. Boston, and F. H.
Prince & Co., bankers and brokers,
Boston. PeEram admitted that he
was the holder OF 1890 shares OF
stock in the stock yards company
which he has never seen.
PeRram has been the treasurer OF
the Chicago Stockyards Company for
the last two years. He admitted un-
der cross-Questioning that he was
only a dummy" treasurer, and would
sign anything the bankers in con-
troll of the company put before him.
In the transactions that led UP to the
formation of the Chicago Stockyards
my in whose name the negotiations
were carried forward
Didn't Understand Plan.
He said on the stand that while
he was sin on" the plan, he under
stood little OF what it all meant. and
the only service required OF him was
to sign various papers without read
ingSthem.
The officers OF the Chicago Stock
yards Company elected when the cor
Doration was formed also were dunn
my officials, Pegram admitted. They
were George F. Doharty, president;
Clarence R. Yeaton, vice president;
Normal J. MacGaffin, secretary, and
and william n. Walden, treasurer.
All OF them were employees of the
bankers who controlled the corpora
ton.
Heney's questioning brought out the
fact that Pegram. two years treasurer
Of the stock yards company. was for
twenty-six years a bookkeeper with F.
II. Prince Co. Pressed on the point
that he is merely a dummy in the COM
pany he confessed:
Yes, III sign anything they put in
front OF me"
They" It developed. were the other
officials OF the company.
Heney also showed that communica-
tions from the Federal Trade Commits
sion to Pegram were not answered by
him, but that he merely went through
the motions" of replying, the answers
being dictated by others. Letters ad-
dressed to the company at Chicago were
found in the Prince offices at Boston.
Heney charged