The Sentinel=record., 1917-12-22

entered into any understanding re- garding the meat packing industry at St. Paul
 In organizing the Chicago Stock Yards company, J. ogden Armour be- came the possessor of 1850 shares, according to testimony, but like all the other shareholders, his identity was concealed through the use of share warrants, payable to bearer. Croll said Armour now had turned in his stock to Armour and company in order that the eight other stockhold- CTS of that concern, all of them mem bers of the Armour family, might benefit. Ownership of the stock, how ever, is Jumped with other assets.
 Details of the methods used by Ar mour and Prince in obtaining control of the Junction Railways company, a necessary preliminary to the forma- tion of the new concern, were brought out in letters obtained by the com missions investigators.
 In letter to Armour, Prince wrote:
 q propose to have the guaranty stock listed on tho stock exchanges and the present stock will be stricken from the list. We shall do our best then to depreciate the value of the outstanding stock so as to get the small holders to come in. Then dur ing the next two or three months our office will busy itself with getting the outstanding stock which in time we should get down to a minimum. As soon as we have all the stock in and it seems advisable, we can declare the surplus by a dividend in old stock"
 Armour and Prince, according to the letters, put up the $1 100000 which appeared in the records as having been paid by Frank R. Pegram, book keeper and cashier for Prince. Ar mour's share was s194,000, which netted him 194 per cent of the new stock, he and Prince having divided the obligation on pro rata basis of their ownership of Junction stock.
 Later, however. the money was loaned back to them.
 Walden insisted that he obtained ample security for all loans made while he was treasurer.
 Since the organization, it was shown the Chicago Stock Yards com pany, controlling the properties be- longing to the Chicago Junction Rail ways and Union Stock Yards com pany had made enough money to pay the Junction stockholders their nine per cent and the stockholders in the new concern ten per cent Distribu- tion of Cicago Stock Yards dividends had been effected by having clerks and bookkeepers entered on the rec ords as drawing quarterly checks of s17,500. $1S,700 and $25,000 cash. These were endorsed in blank and de- posted in Boston banks to go to the holders of share warrants. Four times a year a check for approximately $38,000 was drawn Ito pay to the or der of New York check" which, ac- cording to the correspondence, Croll received from Armour.
 Prince, Croll and Walden referred several times in correspondence to the packers" but Croll and Wad- den denied that any other packer than Armour was interested in the Stock Yards company, so far as they knew In one letter Prince wrote to Armour that if necessary he would meet "the of the new company. Croll said he knew nothing of any melon cutting, adding that he had nothing to do with the payment of dividends by the Chi cago Stock Yards company.
 E. N. Manning, bookkeeper for Prince and company, was the only oth- CT witness, giving details of the pay ment of dividends He identified Albert E. Herring, w. II. Mitchell Harry P. Nash and others as clerks and book keepers, who for a brief minute four times a year held checks for princely Incomes. which they immediately en- lorsed and turned over to Prince and company. He also pointed out the checks for s2.5O and $500 received by the officers and directors of the Chi cago Stock Yards company on the one or two shares of stock which they held to qualify them.
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