Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1917-12-23
ARMOUR SHOWED TO OWN
SUBSIDIARY COMPANIES
Federal Investigators Learn Packer
Controls Newspapers, Grain and
Other ORGANIZATIONS.
siANpULATEs MEAT SUPPLY
Able to Dictate Prices to Both Pro-
duccrs and Consumers By Regu.
1ating Principal Cattle Markets.
Share Warrants Redistributed.
TBy Associated pres.l

WASHINGTON, December 22.-Cot-
tonsecd oil plants, Chicago real estate
ana cattle-trade papers appeared to-
day in the records OF the Federal Trade
Commissions inquiry into the packing
industry as side lines into which the
control OF the big packers has OK
tended. When the inquiry was ad
journcd over tho holidays. Francis j.
hency. special counsel, announced that
subsequent hearings, probably in New
York or Boston, would deal with the
packers alleged control Of grain. fer
filters. dairyins. dairy feed. butter
substitutes. leather, hides. poultry and
canned vegetables. none of which was
touched on In tho FIRST three days
Testimony.
Having introduced evidence designed
TO establish the control of the Chi
caso stockyards and terminal rail-
ways by the Chicago stockyards Com
many, of Maine, promoted and owned
In largo part by ]. Ogden Armour
OF Chicago. and Frederick II. Prince.
OF Boston. Mr.. Heney developed from
witnesses to-day that Armour & Co
are interested also in eleven other
stockyards. 1t had been testified pre-
viously that tho Morris group OF pack
ers owned mostlof tho Kansas City
yards. and that Swift was Interested
In tho; st. Paul yards.
ing the principal cattle markets OF the
country, the packers are In a position
TO manipulate the nations meat sup
! ply, as we'll as dictate prices to both
producer and consumer. He said that
ithe largo profits OF the stockyards and
railway Companies came chiefly from
tho producers, who pay storage, feed
and haulage charges, which consti
tute the bulk OF the companies income.
HOLD LARGE INTEREST IN
PAPERS AND CO1'TON OIL
Records were introduced to-day to
show that other packers besides Ar
mour are interested In the Chicago
yards. Frederick W. Croil, treasurer
OF Armour &c Co.. said he could not
explain why the other packers should
nave representation on these concerns
Crcll admitted that Armour & Co
had large interests In cottonseed oil
plants in Texas. Arkansas and Tenncs-
see. and that Armour and Swift were
interested In cattle.trade papers in
Fort Worth and Denver.
hillions OF dollars Of Chicago real
estate appeared In a list Of assets of
tho Chicago Junction Railways and
Union Stockyards Company. Mr.. Heney
|, called particular attention to these
because OF representations made to
small stockholders when Armour and
Prince gained control OF the com
pdny tnat the CompanyS property was
In danger Of material depreciation, in
order to get the small investors to sur
render their stock and accept a guar
anteed per cent dividend.
In attempting to market bonds, af-
ter having gained control OF the juno
tion Railways Company, the Chicago
'Stockyards Company told investors, ac-
cording TO records introduced, that the
assets OF the Junction Company
amounted to 3i7.0oo.o0o. including 500
acres OF land In Chicago and $50 miles
OF belt and terminal railways. At
tention was called to large surplus
earnings from 1907 to 1911.
1T appears that one sct Of reprcsen-
tntions was made to get the stool; and
another to sell the bonds" comment ed
Mr. Heney.
Manipulation OF share warrants Of
the Chicago Stockyards Company. pay
ment Of dividend checks to dummies
and alleged arrangement Of earnings
: of a subsidiafy company to conceal cx-
cessive profits also were touched upon
to-day. Records of the Maine cor
poration showed that redistribution Of
day a Federal Trade Commission invcs-
tigator asked>t examine the books
Discussion OF profits attracted con-
siderable interest from the commission
as to .Armour's return on his invest
ment. Efforts to prove that other
packers received stock will be con-
tinued when the commission resumes
the hearings.