The Oskaloosa herald. (Oskaloosa, Mahaska County, Iowa) 1885-1919, 1917-12-27
SEEK OWNERSHIP
Of sTDCKYARDs
Y. $. PROBE sueeEsTs PACKERS
MIGHT MOVE.
NEW COMPANY IS ORGANIZED
Witness Declares $4,000, 900 Was Paid
to Have Organization Remain in
chleaeo-Goy Wants
II Facts in H. c. Of /.

Washington, Dec, 2l.-SenSnti0nai
disclosures of thigh finance" between
the Chicago packers and the stock
yards and terminal railroads there
and promises of more to come-fea-.
tured the session of the federal trade
COMMISSIONS investigation to get at
some of the innermost causes of the
high cost of living.
Backed with an array of facts and
figures gathered by trained investiga-
tors working under the new $250,000
fund recently appropriated by con-
gress, Francis ]. Heney, In charge of
the Investigation for the commission,
began cracking one sensation after the
other.
An estimate of r$6,000,000 as the
amount paid to the packers by the
stoekyards and terminal railway COM
panies to persuade them to remain in
Chicago was made in a letter dated
August Is, 1911, and signed by F. S.
MOseley & CO., brokers, of Boston.
Packers Control All Plants.
Asked by Commissioner Murdoch
whether any melons" had been cut in
organizing the new company, Mr..
Henry said he would be able to show
that the surplus of the junction COM
pany amounting to more thhn $4,000
900 on capitalization of $6,500000,
actually had been paid out in divid-
ends.
At the Adjournment of the packers
hearing Mr.. Heney announced that it
was expected to show in subsequent
testimony that every stockyard in the
country was controlled by one or more
Of the large packers. Fiyt% \
The days session had wholly to do
with big operation in which $500
clerk was the medium of forming an
S8,000,000 corporation which took the
risk of the Chicago stoekyards and ter
minhl railways being moved farther
west and developed testimony to show
how the packers in return, to use the
language of one of the participants,
got their share of "the plumber and
took their ''pickings." ,,E
~ Rig Profits foe Armour.
j. Ogden Armour, it was said got all
the profits over 8 per cent The point
of the whole transaction, as brought
out by the testimony, was that the
packers were threatening to move
away from Chicago; that corpora.
ton was formed to take oyer the stock.
yards properties and assume the risk
of their becoming valueless and that
as n result the enormous profits of the
yards and terminal equipment was
divided with the packers as an induce
ment to them to continue I'll IL bust
pess in Chicago and not move farther
west. ~.
While the testimony dealt only with
that phase of the packing industry 1t
was said the commission is in possess
sion of facts which will broaden the
Investigation to show whether there Is
not n gigantic combination in prac-
teal control of the country's food sup
ply. a.- Il
The inside story of how. the big
transaction came about was laid bare
by the Introduction as evidence Of let
tiers passing between the organizers Of
the holding corporation and the stock
holders of the companies which for
merly controlled the yards and the
railways. fs' ESh .S@ 'l
One letter said that the directors,
fearing q court decision against the
reorganization plan, We're, anxious to
get 1t through before the decision came
down. "