Ottumwa semi-weekly courier. [volume] (Ottumwa, Iowa) 1916-1918, 1917-12-21
QUIZ I BARES
R IbU TE TO
PACKER KING
Armour Said to Have Exact
ed Bonus From Stockyards
Railway For Keeping
Plant in Chicago; Rebate
Echo Revived.
EMPLOYE IS COAT
IN FEDERAL INQUIRY

IN FEDERAL INQUIRY
4 Warrington, d. c., Dec. 20.-Sensa-
6onal disclosures of high finance" be-
tween tha Chicago packers and the
stock yards and terminal railroads
there and promises of more to come
featured todays session Of the fed
efal trade Commissions investigation
70 get at some OF the fnnerm0st
causes Of the high cost of living.
Backed with an array OF facts and
figures gathered by trained investigat-
ors working under the new $250,0O0
fund recently appropriated by con-
yress. Francis J. Heney, In charge of
the Investigation for the commission,
began cracking one sensation after the
ether.
CLERK HEADS BIG ROAD.
Today's session had wholly to do
with a big operation in which $2,500
clerk was the medium Of forming an
$4,000. 900 corporation which took the
risk Of the Chicago stock yards and
terminal railways being moved further
west, and developed testimony to show
how the packers in return. to use the
language OF one of the participants,
got their share of "the plunder" and
took their "pickings."
TRIBUTE TO ARMOUR.
]. Ogden Armour, It was said, got all
the profits over 8 per cent. The point
Of the whole transaction, g brought
out by today's testimony, was that the
rHeGfeES. were 4 2thraatGninE to .,1noye
sway from Chicago: that . corporation
was formed to take over the stock
yards properties and assume the risk
Of their becoming valueless and that
as aresult the enormous profits of the
yards and terminal equipment was
divided with the packers as an induce
ness In Chicago and not move further
west
100000 TOTAL PRICE?
An estimate Of $6,000O00 as the
amount paid to the packers by the
stock yards and terminal railway
companies to persuade them to re-
main in Chicago was made in letter
dated August IS, 1911 and signed by
F. s. Moseley and company brokers
Of Boston.
MORE TO COME.
While today's testimony dealt only
with that phase Of the packing indus
Try, 1t was said the commission is in
possession Of facts which will broaden
the Investigation to show whether
there Is not gigantic combination in
practical control Of the country's food
supply.
The inside story Of how the big
transaction came about was laid by
the introduction as evidence of let
ters passing between the organizers
of the holding corporation and the
stockholders of the companies which
formerly controlled the yards and the
railways.
LETTER REVEALS PLAN.
One letter said that the directors,
fearing a court decision against the
reorganization plan, were anxious to
get 1t through before the decision
came down. Another, telling Of the
reasons for the organization Of tho
NV company, said:
"For long time some Of the west
ern railroads have been endeavoring
to ind1ce the packers to move west.
and 1t has only been on account Of
pecuniary considerations which your
company has given the packers from
time to time that they have remained
IN Chicago. Suit has been entered to
prevent further payments Of this sort
and In addition there is bill pending
In the Illinois legislature to regulate
the charges by your company.
REASON FOR REORGANIZATION.
Under these circumstances it was
thought best to form new company
which would be controlled by the
packers and in that way give them a
pecuniary interest in your company
which would make It worth while for
them to turn all possible business
over to the company. Therefore, the
new company, composed Of the pack
erg have agreed II the stockholders
Gf the Chicago Junction railways and
Union Stock Yards company accept
the proposition, to guarantee per
cent on the stock which is now pay
lag s per cent or to give 5000 In per
cent bonds for each share OF stock,
which amounts to 10 per cent of the
stock"
KANSAS CITY INVOLVED.
Interest Of the packers in the coun-
try's stock yards extends also to Kan
sas City, according to =. v. r. Thayer,
president Of the Chase National Bank
Of New York, who said he understood
one Of the packers owned part Of the
yards there, but that the others did
not. He did not name the packer.
With other Sensational testimony
Continued on Page y