Arizona republican., 1917-12-22
ARMOUR. IS NAMED IN PROBE
Republican q. p. Leased Wirel

Republican p. p. Leased Wirel WASHINGTON. Dec 2l.-J. ogden Armour was named at the federal trade commissions meat investigation today 1s tho packer who aided r. II. Prince of Boston, to obtain control of the Chicago Junction Railway and Union Stock Yards company and turn it over to the Chicago Stock Yards company, organ ized and controlled by themselves. Records were introduced in evidence tO show that after the reorganization Che Stock Yards company, without as- sets or business other than controlling the older corporation, was able to "cut a melon of more than $3,00O.0 out of tho Junction railways surplus and to declare quarterly dividends of 21. per cent on their SS,000,000 capitaliza- tiou after the small investors in June ton railways had been given their guaranteed nine per cent per annum Testimony of w. M. Walden, former treasurer of the Stock Yards company, and Frederick ". Croll, treasurer of Armour & O.. established Mir. Ar mours connection with the deal. Ef- forts to prove that other big packers were interested in the company met with little success Non -committal re- plies were given by the witnesses to question as to what was meant by "the packers" and the other Chicago peo- ple' in correspondence concerning the organization of the Chicago Stock Yards company.
 Francis J. Hcney, special counsel. will pursue the matter further in other sessiois of the inquiry and also will seek to develop the extent of the pack nr l4f ,-1- z and the distribution of meat products Some Idea of the ramifications of the inquiry was given today in brief ques- tions concerning ownership of the yards at Kansas City and st. Paul. Croll testified that neither J. Ogden Armour Dor Armour X O.. of which J. ogden Armour owns seventy per cent, had any interest in the Kansas City yards
 Did any of the big packers have a plant at st. Paul before Armour x Co. began building their plant there 9" asked Heney
 Yes, Swift &, Co.," replied Cron.
 'Did Armour & Co. receive d bonus for going there?"
 "A citizens committee agreed to do something, but | do not know what they have done nor WlAat the total amount was to be-
 Was it as much as SJOOOO0?7
 l cannot say"
 Was it more than S1OO,OOO?"
 'l venture to say it was"
 Do you know if. after this agree ment was made with the St. Paul citi- zens committee, any agreement was made with Swift Co secure part owner ship of the St. Paul yards?"
 "I do not"
 Was any agreement made for part control of the Drovers' Bank?"
 "l do not know. The entire matter was handled by George B. Robins. yico president of Armour X Co"
 Mir Heney did not question Croll fur ther on the subject From other wit nesses an effort will he made to as- certain whether Armour and Swift entered into any understanding regard Ing the meat packing industry at St perl.
 In organizing the Chicago Stock Yards company, J. ogden Armour be- came the possessor of 15,520 shares according to testimony. but like all the other shareholders, his identify was concealed through the use of shar, warrants, payable to bearer. Cror sai6 Armour now has turned in his stock tc Armour & Co. in order that the eight other stockholders of that concern al or them members of the Armour family might benefit Ownership of the stock however Is Jumped wrtn other assets
 Details of the methods used h, Armour and Prince in obtaining con. trol Of the Junction Railways com pany, necessary preliminary to in, formation of the new concern. wer, brought out in letters obtained by tn, commissions investigators.
 ill letter Co Armour, Prince wrote
 propose to have the guarante, stock listed on tEe stock exchanges an, the present stocl, will be stricken iron the list. Wc shall do our best then f, sdepreciate the value of the outstand ing stock su as Co get the small holder 70 come in. Then during the next tw, or three months our office will bus itself with getting the outstandinl stock in which in time we should ge down to lninimam. As soon as W have all the stock in. and it seems ad visable. we can declare the surplus b dividend on tho old stock"
 Armour and Prince, according to tn letters. put up the S10O0000 which ap peared in the records as having bee
 Continued on Page Two)
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