Pine Bluff daily graphic., 1917-12-22
Congress Committee Finds Packer Backed Price in
 Grabbing Control.
WERE ABLE TO CUT
 MELON OF $3,0O0,000
Holding Company Controlling Yards and Railway Declared EnOr- nous Dividend Without
 Any Business.

Washington, Dec. 21.-J. Ogden Ar mour was named at the federal trade commissions investigation today as the packer who aided F. R. Prince of Boston to obtain control of the Chi cago Terminal railway and Union Stock Yards company and turn it over to the Chicago Stock Yards company, organized and controlled by them selves.
 Records were introduced in evidence to show that after the reorganization of the stock yards company, without assets or business other than controll- ing the older corporation, was able to "cut a melon" of more than $3,000,00 out of the Junction railway surplus. and to declare quarterly dividend of 21a per cent on their $8,000,000 capi- talization after the small investors of the Junction railway had been given their guaranteed 9 per cent per an mum.
 Francis J. Heney, special counsel, will pursue the matter further in other sessions of the inquiry, and also will seek to develop the extent of the packers control of the marketing of cattle and distribution of meat prod ucts. Some idea of the ramifcations of the inquiry was given today in brief questions concerning ownership of the yards at Kansas City and St. Paul. Frederick w. Croll,. secretary of Armour & Co.,, testified that nei- their J. Ogden Armour nor Armour & Co.,, of which J. Ogden Armour owns 70 per cent. had any interest in the Kansas City yards.
 Washington, Dec. 21-Testimony to show that J. Ogden Armour is part owner of the Chicago Stockyards Con- pany was given today lat the Federal Trade Commissions inquiry into the packing industry, and it was said the next thing to be developed was the extent of the interest of other pask- CTS in the same concern.
 Operation of the company has been made as complex as it's formation by means of dummy directors. A new treasurer was put in every two years or so. resulting in only incomplete knowledge of the company's actions on the part of any officer. F. H. Prince of. Boston was said to receive the dividends and make distribution among the shareholders, believed to include all the large packers, whose identities have not been established.
 It was said when the commissions investigators went to Chicago they re- ceived only evtasive replies from the officers of Swift & Co.,, and that direct f0V hn hoav1 O. fused. To obtain the papers which relate to the ownership of the Chi cagO stockyards and other details of the meat industry the commission will go into a federal court and ask an order compelling the company to pro- duce them.
 MT. Heney also announced the re- ceipt of a telegram saying that c. c. Chase of Chicago, auditor of the Un- ion Stockyards and Transit Company, was ill and could not answer the conn missions subpoena. The telegram said Mir. Chase had been ordered south for an indefinite time." MT. Heney added:
 'I desire to inform the commission that we have enough evidence with out MT. Chase's testimony to make a prima facie case, and then the pack CTS can do what explaining they think necessary" ett r. Admits Armour Ownership.
 Flat admission that J. Ogden Arr mour and F H. Prince own the Chi cago Stockyards Company, controlling the Chicago Stockyards and Terminals railways. was made by w. w. Wad- hcn, former treasurer of the company. Although the stock appears in the name of Frank R. Pegram, secretary of the company, Walden said he knew who the real owners were. Details of the plan for obtaining control of the Chicago Junction rail- ways and the Union Stockyards Com pany were unfolded by Walden. who said he was a partner in F. H. Prince & Co of Boston, but sometimes took shorthand dictation from Prince. Two pages of shorthand notes were iden- tified by Walden as having been taken by him in 1911.
 ! The notes were headed "proposi- l ton" and set forth how Prince and J Ogden Armour were to obtain control of the Junction Railways Company
 Then came a sub-head scheme, which detailed how the new corpora l ton, the Chicago Stockyards Com pany, was to be formed, and obtain tho l control of the yards and railroadi held by the other company.
 Prince claims he and friends con \ S~ S~fSf3 < z = n .eJY Se-.. F ks a