Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1917-12-21

EMBER Il, WI.
gotiations between committees represent
ing both sides which had not been con-
cluded in 1910 when test case to decide
whether or not the terminal railway was
subject to the Interstate Commerce Com
mission was taken to the commerce court.
Mr. Heney said he would endeavor TO
show that anticipating an adverse de-
cision. Prince devised the scheme of form
ing the new Stockyards Co. to legalize the
packers rebates and hide their control
of the yards.
Something more than 10000 shares
had been split up by him at Princes
orders and was owned out West he
believed in Chicago. Tracing the own
ership Of this block of stock will be
task for subsequent hearings.
Control of the Junction Railways
stockwas not obtained without diff
Guilty. Many stockholders protested
that a melon was to be cut. Heney
announced today that he proposed to
show that the 100000 surplus was
paid out in dividends after the new
company had gained control of the
old concern which accumulated the
money. He also declared the commits
sion was in possession of a letter from
Prince to Armour suggesting that
when they had sufficient stock they
could obtain the remainder by de-
pressing the market through curtail-
ing functions earnings. All Of the
stock was obtained except three
shares. thou-h the new corporation
lad TO pay $4,000 for one block of so
shares and 5000 a share for another
small lot. All earnings of the New
Jersey Co. over the guaranteed divi-
dend now go to the Chicago Stock
Yards Co.
Control Of Junction Railway
Holders of the common stock of the
junction Railways We're asked to sur
render their stock to the new company
and receive thereafter guarantee OF
8 per cent dividends or 5000 in bonds
for each $l00 in stock. The Junction
Railways Co. had paid s per cent. reg
ularly up to that time and had more
than 100000 surplus on common
stock of s6.500000 Asked if they con-
sidered the transfer fair both Hart
and Thayer said they did considering
the likelihood OF loss which might be
sustained if the packers should move.
The original plan. according to NJ.
Heney was to give 100000 Of the
stock yard company stock to Armour,
Swift and Morris, but the ownership
of this stock remains to be established.
Pegram said he was trustee for 1890
of the 10000 shares of stock. He never
he
lcved that the ma jority of the stock
81, 600 shares was held by Mr.. and Mrs.
Prince.
Claim Ownership Concealed
The Kansas City Stock Yards was
the only other cattle market brought
into the testimony today. Thayer who
! is president of the Kansas City Stock
Yards Co, said he owned less than 100
shares OF stock, but appeared as the
owner of more than 5000 shares which
he had endorsed to Morris and Co.
Mr. Heney said the packers con-
trolled every stockyard in the country,
but had concealed the ownership OF
stock transfers. The method used by
the Chicago Stock Yards Co, he said
was share warrants, payable to bear
er, declared to be a unique feature
seldom seen in American finance. De-
mands by the commission for the
| names OF the real owners evoked only
evasive replies, it was said.
| The commissions investigation is
being conducted under authority of
the President and by means of an ap-
preparation of $3.50, 900 which was voted
after efforts had been blocked for a
considerable time. Cattle Mems Asso-
citation have alleged that the packers
dominate the market to such an eX-
tent that they control the purchase
prices of livestock and the prices at
which they sell, resulting in contin-
uous "sOuge" of the producer and the
consumer.
Packers Claim Ignorance
Chicago. Dec. 20.-John A. Spoor
chairman of the board of directors of
the Union Stock Yards and Transit
Co, and of the Chicago Junction Rail-
way, today said:
If the reports correctly state the
evidence which was given before the
| Federal Trade Commission today, it
states something of which am ignor-
ant. Neither Mr.. Armour nor any
other packer has any stock in the In
ion Stock Yards and Transit Co. of
Chicago or in the Chicago Junction
Railway &C., nor are they in any way
concerned in them.
AS has been known for years, the
stock in the two local companies is
controlled by New Jersey holding
company. ] am a director Of that
company and neither Mr.. Armour, nor
any of the packers has any representa-
tives on the board Of control Neither
do they own or control its capital
stock If they are members of any
syndicate such as has been described
in the press reports I have no knowl-
edge of it. They certainly do not con-
troll. interfere with or manage in any
way Whatever the policies of the two