Forest City press. (Forest City, Potter County, D.T. [S.D.]) 1883-19??, 1917-12-27
ARMOUR LEV|Es
TOLL ON YARDS
Witness Says Chicago Company
Pays Big Sum Annually
to Retain Big Packing
Plant.
is THREATENING TO MOVE
Company Would Locate Furth.
er West, Is Claim-Owner-
ship of Property at
Issue.
is THREATENING TO MOVE

Washington, D. c.. Dec. 21.-Sensa-
tional disclosures of high finance be-
tween the Chicago packers and the
s%tockyards and terminal railroads there
and promise of more to come-feat-
ured today's session Of the federal trade
commissions investigation to get at
some of the inncrmost causes of the
high cost of living.
Sacked with an array of facts and
figures gathered by trained investiga-
tors working with the new S250,OOO
fund recently appropriated by congress.
Hrancis j. Heney, in charge of the in
v%estigation for the commission, began
cracking one sensation after the other.
Today's session had wholly to do with
a big corporation in which a $500.
-.-::: was the medium Of forming an
So, zoo, 900 corporation which took the
risk of the Chicago stockyards and ter
minal 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
heir share of the ''plunder' and loon
their "pickings."
]. Ogden Armour. 1t was said. got all
the profits Yer 9 per cent.
Threatened to Leave.
The point Of the whole transaction
as brought out by the testimony was
that the packers were threatening TO
move away from Chicago; that a cor
poration was formed to take over the
stock yards and properties and assume
the risk of their becoming valuless, ana
thai as IL result the enormous proflts or
the yards and terminal equipment was
divided with the packers as an induce
ment to them to continue their business
in Chicago and not move further west.
While today's testimony dealt only
with that phase of the packing indus
try. it was said the commission Is IN
possession of facts which will broader
the investigation to show whether there
is not Il gigantic combination IN prac-
teal control Of the country food sup
The inside story of how the big tran
sactions came Dol was laid bare by
the introduction as evidence of letters
passing between the organizers of the
holding corporation and the
ers of the companies which formerly
controlled the yards and the railways.
One letter said that the directors,
fearing a our decision against the re-
organization plan. were anxious to get
1t through before the decision came
down.
Railroads Sought Change.
Another telling the reasons for the
organization of the new company said:
"For a long time some Of the western
railroads have been endeaNorlng to IN
)duce the packers to move west ana II
his only been on OF pecunlary
considerations which your company has
given the packers from tlne 10 .anie'
thai they nave remained in Chicago.
Interest of the packers in the coun-
try's stock yards extends also to Kan
sas City, according to r. V. Il. Thayer,
president of the Chase National bank
of New York. who said he understood
one of the packers owned part OF lie
yards there. but that the others did
not. lie did not name the packer.
Certified minutes of the first meeting
Of the Chicago Stock Yards company
on September 21. 1911. were intro
duced to give details of an agreement
between Pegram ana the coElpanN inc
minutes recited that Pesram had at
tanned the assent of the holders of
$4,000 shares of the commo stock of
the Chicago Junction railways and
Union Stock Yards company to Il pla
formulated by a committee headed by
Richard Obey. as chairman.
1t was said the "plan assures to the
Chicago Junction railways and Union
Stock Yards company the continuance
of the business now carried on by the
packers upon ii permanent basis and a
great increase i'm profits and the value
of the shares of stocks"
Pegram WAS recorded as having given
the pan ana dSSeHtS duO $l.VV".VVV lH
cash to the company for $S.0O0.0 600 in
common stock. Pegranl, who previously
had testified that his salary was $500
a year. testified that he knew nothing
of the agreement as set forth in the
minutes.
MIR. Hart told the commission thu
plan was devised because there seemed
great danger of the business being
driven away from Chicago to places
further west.
AMMAN o,.o.neoo ..aa