Arizona republican., 1917-12-21
FrenZied Finance ShOnf1
 Up M Detail By Probe
 Of Investigator Heney
Republican A. p. Leased Wlre1

WASHINGTON, Dec. 20.-FTom the seclusion of corporation records, the federal trade commission today drew sensational disclosures of high finance, dummy officers and sham trustees in it's efforts to determine the owner ship of the Chicago Stock Yards and the terminal railroad facilities at the big packing plants there.
 Establishment of ownership of the stock yards is only the first of the tasks before the commission which plans to continue it's investigation into every branch of the country's meat supply and the alleged control of the meat food of 0,000000 people by five principal groups of packers. The commissions report will be made the basis for recommendations that additional legislation be enacted to remedy the situation, if found neces- sary, and any evidence of law break ing will be turned over to the depart ment of justice.
 It has been stated that subpoenas will not be issued for representatives of the packers, a step which might give them immunity in any subsequent prosecutions.
 Organization of the Chicago stock Yards company, under the laws ot | purpose of providing legal method Tor the payment of millions in "picl1ings' or rebates to the packing plants by the Chicago Junction railroads and Union | Stock Yards company of New Jersey, occupied Francis J. Heney, special | counsel and the witnesses called to- | day at the first of a series of open | hearings. Other witnesses tomorrow will be asked to tell what they know of J. Ogden Armour and F. H. Prince | of Boston. obtaining control of the | Junction Railways company, which was organized by Prince, and turning it over to the stock yards company. F. w. Croll confidential secretary or l MT. Armour is expected to testlfy.
 The late Richard Olney and various
 prominent citizens of New England
 appeared in today's testimony as
 sponsors for the plan of absorbing the
 money making Junction Railways
 company by the new corporation. F. R. Hart, vice. chairman of the board
 of directors of the Old Colony Trust company of Boston, and E. Y. R. Thayer, president of the Chase Ma
 tional Bank of New York, testified of
 their activities as members or MT
 Olneys organization committee which
 induced holders of 60000 shares of the
 New Jersey common stock, to sur
 render their stock and their right to
 more than $3,OO0,O0O surplus and ac-
 cept in return a guaranteed nine per
 cent from the new company.
 The whole plan was an entirely
 transparent proposition" MT Heney
 told the commission, ito hide the rea
 ownership and conceal the fact thai
 Armour and other big packers had ar interest in the yards"
 Woven through the testimony oi millions controlled by bank presidents : and packers was the name of Frank
 R. Pegram, a retiring witness, for g quarter century bookkeeper and cash fer for F. H. Prince &, Co. of Boston
 According to the certified minutes ol } the Chicago Stock Yards company's first meeting, Pegram controlled the assets of the Junction Railway: stockholders to the new plan ana wal wal
 given SS,000,000 in Chicago Stoci , Yards common stock for the asset. , and s1,0OO,OOO in cash.
 My salary is s2.500 a year." Peg ram testified in reply to questions.
 No sir, I never had a million dol . lars. knew nothing of the agreemen r you read and I never had the stool 3 in my possession except for indorse 7 ment purposes"
 r He added that although he wa: I treasurer of the Chicago Stock Yard.
 company, he knew none of the othel S officers, who were mere figureheads . holding one or two shares of stoci r each. George F. Doherty, president : was said to be clerk. Pegram sait l he signed whatever he was told t r sign by Bradley Palmer, counsel. fo
 Prince.
 . Hart and Thayer declared organi = zation of the Chicago Stock Yard f company was made necessary by tn t fact that the packers were consider 0 ing leaving Chicago for cities furthe e west. where they would be in close l. touch with the live stock supply e Briefly stated, it was said that tf. n New England stockholders of tn
 Chicago Junction Railways and Uniol e Stock Yards company found them . selves out of touch with their client r and likely to be left with their in Vestment on their hands and no busi d ness. Accordingly, the new stock yard
 company was formed under the law e of Maine as a holding company L 3 assume this risk. Prince, leadint e spirit in the organization, was relic S on, Hart said. to influence Armou y through his business and social ac f quaintance with the packer, to re h main in Chicago.
 O The commission endeavOred t = show by letters from F. S. Moseley = Co.,, brokers of Boston, that the ne' h company was simply a means (
 keeping the packers satisfied by pay e ing them dividends on the new com
 pany's stock instead of bonuses an n rebates which were outlawed by fed h eral legislation.
 ,t Tt is merely the choice of the Wa !, In which they will receive compensa S, tion," said one letter, whether
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