Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1917-12-20
DEALINGS Of
Robustness
IN SPOTLIGHT
Testified J. Ogden Armour
is Paid Income to Pre-
vent Removal.

Washington. Dee. cat the federal
trade commissions investigation of
The Chicago stock yards here today,
FIR Hart one Of the principal figures
| IN the stock yards company, testified
that IL had been agreed to pay ]. Og-
| den Armour all the Company's earnings
over nine per cent to keep Armour
| from moving he-yards away from
1 Chicago and further west.
With other sensational testimony to
chow that the company was organized
Z 10 keep the plants from being moved
away, a letter from s. II. Fessenden, a
1 Boston broker. who assisted in the
orEanizaton was read, saying the
| proceeding was merely to legalize re-
! bates to packers so they might have
"a portion Of the plunder," and might
have their "pickings,"
Hunt Real Owners.
Efforts Of the federal trade commits
mission to discover the real owner
ship of the Chicago stock Yards and
terminal railroads, began today with
l an inquiry into corporate relations
between the Chicago stock Yards COM
pauy the Union Stock Yards and
Transit company, the Chicago June
ton railways and Union Stock Yards
company and the Chicago Junction
railways
Frank R. PeEram, treasurer Of the
Chicago Stock Yards company. and
cashier for F. n. Prince of Boston
testified that he held 1890 shares Of
the Chicago Stock Yards company AZ
trustee but that he had never had
item in his possession. The stock was
held he said, subject to bearer war
rants but that he did not know
where these warrants we're, though hi
bought most Of them were in the SAT-
deposit boxes Of Mr.. and Mrs. Prince
4 ~0ut West Chicago.
! Where are the others?" asket
x Francis j. Heney, conducting the in
l CURRY.
1 "out west" was the reply.
1 When Mr. Heney insisted on his be
Ing more specific. Pegram replied tina
| he thought Mr. Prince had told hin
} that the warrants were held in tn
\ west
| Did he say out west or in Chica
| co." asked Mr.. Heney.
/ II think he said Chicago"
/ Did he ever tell you that Armou
| had them?"
Il Never was the reply.
II Other witnesses summoned to tes
/ lily included W NJ. Walden forme
II treasurer for the Chicago Stock Yard
company; c. G. Chase, auditor for til
i Vhicag0 Stock Yards and Transit com
pauy and T.. w. Croll. confdentia
secretary to J. Ogden Armour.
i Minutes introduced.
II Certified minutes of the first meet
ing OF the Chicago stock yards CON
pany on Sept q, 1911, were intro
daced To- give details of an agreemer
between PeEram and the compan,
1 TIE minutes recited that Pegram ha
STAINED the assent Of the holders {
oeVo0 shares Of The common stock {
the Chicago Junction Railways an
Union Stock Yards company to pla
formulated by committee headed b
Richard Olley as chairman.
II was said the plan assures I
vac Chicago Junction Railways an
uhlon Stock Yards company the cor
luance OF the business now carrie
A on by The packers upon permaneI
oasis and a great increase in profit
ana the value Of the shares of stocks
News to Him.
Fegram was recorded as having gi'
IN The plan and assents and $1.0000(
~ cash to the company for $4,000
vN IN common stock. Pegram, VII
Previously had testified that his sa
STy was $500 a year, testified, thi
ne knew nothing of the agreement I
set forth in the minutes.
NIX. Hart told the commission II
pan Was devised because there SCENT
sItat danger Of the business beir
|Nen away from Chicago to place
.W'her west Shareholders in Il
S9ek yards and terminal railway
wac lived In New England, were OF
touch with their principal client
We packers, and were afraid they We
sung 10 be left with the yards al
%s,NToads, but no cattle bushes
therefore, he said, company was o
seul2ed TO assume the risk. Ask,
INV the formation Of new compar
vas expected to assure the CONT
Sauce OF the packing industry in Oh
sso, Mr., Hart said that Mr.. Prin
saew Mr.. Armour personally and tn
~ influence was expected TO ha
Sme effect in retaining the packii
4'0ses in Chicago.
"Y0u Don't Grasp It."
uid you know that the Chical
sActon railways was paying p
s dividends and had 100000 su
Wv. asked Mr.. Henry
N "hy was an effort made to indu
e common stockholders to come
"a plan guaranteeing them only o
~ GENT more and with nothing ba
~ out a probability"
DON'T see why not" the witne
IN Nontinued on Page Fifteen.)