Bisbee daily review., 1917-12-22
INQUIRY INTO BUSINESS OF PACKING GOES
 INTO DETAILS
J. Ogden Armour is Charged With Being Partner of Bos- ton Finarcier h Controlling Stockyards.
CBy Review Leased Wirel

(By Review Leased Wfrel ] WASHINGTON, Dec. 2I.-J. Ogden Armour was named at the federal trade commissions meat investigation today as the packer who aided F. F. i Prince of Boston. 10 obtain control of ] the Chicago Junction Railway and Union StOckyaTds company and turn it over to the Chicago StCckyaTis com pany, organized and controlled by themselves.
 Records were introduced in evidence to show that after the reorganization the Stockyards company. without as sets or business other than controlling the older corporation, was able to 'cut a melon" Of more than S3,C00.000 out of the junction railways surplus and 10 declare quarterly dividends of 21s per cent on their SS,00O. 000 capitaliza- tion after the small investors in june tiOn railways had been given their guaranteed 9 per cent per annum. Walden Testifies. Testimony of W. J. Walden. former treasurer of the stOckyards company and Frederick W. CrOll. treasurer Of Armour & Co. established MT. Arm ours connection with the deal Ef- forts to prove that other big packers were interested in the company met with little success. Non-committal re- plies were given by the witnesses to questions as 10 what was meant by the packers" and "the other Chicago people" in correspondence concerning [ the organization of the Chicago Stock yards company.
 Francis J. Heney. special counsel, will pursue the matter further in other sessions of the inquiry and also will seek to develop the extent of the pack CTS cuHtrol of the marketing of cattle and nd-tAe->aAsr-ss-ution Of rneet prcducts.
 Wide Range of Inquiry.
 Some idea Of the notifications of the inquiry was given today ir brief questions concerning ownership of the yards at Kansas City and St. Paul. Crou testified that neither '. Ogden Armour nor Armour & Co. of which J. Ogden Armour owns 70 per cent, had any interest in the Kansas City yards
 Did any of the big packers have a plant at St. Paul before Armour X Co. began building their plant there2" ask ed Heney.
 Yes. Swift & Co.," replied CrOn.
 Did Armour < Co. receive a bonus for going there?"
 A citizens committee agreed to 0S something. but I do not know what they have done nor what the tctal amount was to be-
 Was it as much as $50O.OO0?" 'I cannot say"
 Was it more than slOOOOO:-
 'I venture to say it was"
 Do you know if. after this agree ment was made with the St Paul cit izens' committee, any agreement was made with Swift to secure part owner ship of the St. Paul yards?"
 'I do not"
 Was any agreement made for part control of the Drovers' bank?"
 T do not know. The entire matter was handled by George E. Robins, vice president of ''rmour & Co"
 Mir. Heney did not question Cross further on the subject. From other witnesses an effort will be made 10 ascertain whether Armour and Swift entered into any understanding regard ing the meat packing industry at St Paul
 ArdIurs Stock. In organizing the Chicago Stock yards company. T. ogden Armour be- came the pOssessOr Of 15.5eO shares. according to testimony. but like all the other shareholders, his identity was concealed through the use of share warrants. palable to bearer. CrOll said Armour now has turned in his stock to Armour G Co, in order that the eight other stockholders Of that con cern. all of them members of inc Arm our family. might benefit. Ownership of the stock. however, is Jumped with other assets.
 Details of the methods used by Arm our and Prince in obtaining control of the Junction Railways company. necessary preliminary to the formation of the new concern were brought out in letters obtained by the cOmmis- siOn's investisatOrs
 ! In letter to Armour. Prince wrote
 Would Appreciate Stock "I propose 10 have the guarantee stock listed on the stock exchanges and the present stock will be stricken from the list. We shall do our best then 10 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 officers will busy itself with getting i the outstanding stock in which in time We should get down to a mini mum. As soon as we have all the stock in. and it seems advisable. we can declare the surplus by a dividend on the old stock"