New-York tribune., 1917-12-21
|,,,de Board Probes Chi
$50 Stock Yards and
Terminal Railways
Ownership
$500 Clerk Dummy DUNN
+ In $4,000, 1000 Deal
,uour, by Agreement,
Was to Get All Dividends
Over 9 Per Cent

,.3,rsl Trade Oomm''7''" '"' 1'
..sc.sl disclosures Of high finance
.y o4cers and sham trustees in IT'S
- determine she ownership Of
So c,...,o Stock Yards and the ter
=, railroad facilities at the 0'F
....irg plant. there.
s s+,sli,hment Of ownership Of the
v,r6s is only the first Of the
,.t,re the commission. which
50 =, Continue ITS investigation into
=. br,reh OF the country's meat
y ~ and the alleged control Of the
',s., =, ,oos Of l0oO00.S'1 people by five
..,;,sl groups Of packers. The com
.op's repor, viii be made the basis
/. Recommendations that additional
.5s,ion be enacted TO remedy the
'.,,ion. if found necessary. and any
3,see Of lawbreakrg viii be turned
!, 20 the Department, Of Justice.
No Subppnas for Packers
+ has been stated that subppnas
Il not be issued for representatives
he packers step which might
- lem immunity in any subsequent
,secliions.
o,-spizaiion Of the Chicago stock
r,,3, COMPANY. uVder the laws Of
i.,,. alleged 10 have been for the
,,ose Of providing a legal method
,he payment Of millions in pick
- or rebates 20 the packing plants
The Chicago junction Railways and
to- Stock Yards Company, Of New
rs,y. occupied Francis J. Heney,
-z,el. and the witnesses called to-
., At the first Of a series Of open
arilgs. 90,
B.ber witnesses tomorrow viii be
,Eld 10 tell what they know Of j.
lrien Armour and +. II. Prince, OF
s-s.on, obtaining control of the juno
In Railways Company. which was or
nrrsd by Prince. and turning II over
. The stock yards company. r. W.
gsl. confidential secretary TO Mr..
lnosr. is expected 20 testify.
siehard Oluey and other citizens OF
- England appeared in to-day's tes-
SONY as sponsors for the plan Of alb
bng the money making Junction
|Aivsys Company by the new corpora
q. +. K. Hart, vIce-chalrman OF the
sri Of directors Of the old Colony
Las COMPANY. of Boston. and r. Y. K.
l-ayer. president of the Chase Nation
Bank Of New York, formerly presi-
a OF bank i'm Boston, testihed OF
IN activities as members OF Mr..
ssyg organization committee, which
heed holders Of 10000 shares Of the
~ Jersey common stock 10 surrender
'ii stock and their right TO more
.i1 $4,000 900 surplus and accept IN
rigrn guaranteed 9 per cent from
e lew company.
The whole plan was an entirely
.nnspsrent proposition" Mr.. Heney
~ the commission, 80 hide the real
EiGship and conceal the fact that
tmour and other big packers had an
'Uest in the yards
Clerk in Ss,OOO,OOO Deal
Woven through the testimony OF
billions controlled by bank presidents
rd packers was the name Of Frank r..
',grsm, a retiring witness, for a quar-
IN century bookkeeper and cashier for
r. Prince & Co., Of Boston Accord
1g 70 the certified minutes OF the Chi
ago Stock Yards Company's first meet
g, Pegram controlled the assets OF
e Junction Railways stockholders. 70
Y new plan and was given SS,OOO,OOO
Chicago StOckyards common stock
r The assents and 81 100000 in cash.
Ny salary is $4,000 a year Pegram
s,ied 10 reply 10 questions.
No, sir; ] never had million dol
~. knew nothing of the agreement
% read, and ] never had the stock
ny possession except for indorse-
,ni purposes
Hs added that. although he was
0surer OF the Chicago Stock Yards
..npany, he knew none Of the other
sen, who were mere fgureheads,
atine one or two shares Of stock
aa. George r. Doherty, president,
y said 20 be q clerk. Pegram said ne
esd whatever he was told TO sign
5sadley Palmer. counsel for Prince.
Aessrs. Hart and Thayer declared
eiganizatiou Of the Chicago Stock
''cs Company was made necessary by
iact that the packers were consld-
Y leaving Chicago for cities fur
- West. where they would be in
~ touch with the livestock supply.
~ stated, 10 was said that the
England stockholders Of the Chi
NJ junction Railways and Union
usards Company found themselves
ei touch with their clients and
~ 70 be left with their investment
yer hands and no business.
aseroingly, the new stockyards com
Twas formed under the laws Of
I as holding company 20 as
|, mis- risk. Prince, leading spirit
e orgsnization. was relied on. Hart
70 influence Armour. through his
''-sss and social acquaintance with
saeker TO remain in Chicago.
Nharye New Company a Dummy
',s Commission endeavored to show
.s,ters from f. S. Moseley & Co.,
Aus, Of Boston, that the new com
vas simply means Of keeping
PACKERS satisfied By paying them
eends on the new company's stock
tsa OF bonuses and rebates. which
=, o'usWed by Federal legislation.
. u merely the choice Of the way
seieh they will receive compensa-
said one letter, whether in large
~, OF bonds or cash, or in divi-
s.. heney also endeavored 10 draw
a,. witnesses that there was no real
ssu Of the packers leaving Chicago.
's, SAID he feared they would move.
:, ten'itted, however. that he knew
ing Of the amount Of their invest
- N Chicago or the cost Of moving
nov much will you pay u.s." YVES
|.ste IN one letter to be the pre-
4 ,nAm question every time the pack
@no stockyard owners came 20 a
l.Sal oi leases.
III y one tlme. the letter said, renewal