Bisbee daily review., 1917-12-21

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 Bos- ton. and E. V. R. Thayer, president of the Chase National bank of New York. testified of their activities as mem. hers of Mir. Olney's organization con- 1ittee which induced holders of sixty thousand shares of the New Jersey common stock. to surrender their stock ana their right to more than S2.O00. 900 surplus and accept in return a guar anteed g per cent dividend from the new company.
 Heney Wases Critical.
 The whole plan was an entirely transparent proposition Mir Heney told the commission. to hide the real ownership and conceal the fact that Armour and other big packers had an interest in the yards"
 Woven through the testimony of millions controlled by bank presidents and packers was the name of Frank H. d TUT quarter century bookkeeper and cashier for F. H. Prince & Co, of oBs- ton. According to the certified min utes of the Chicago Stockyards com pany's firt meeting. Pegram controlled the essents of the Junction railways stockholders to the new plan and was given Ss.000,000 in Chicago stockyards common stock for the asSents and ST. 6O0, 900 in cash.
 My salary is $2500 a year." Pegram testified in reply to questions.
 No sir, l never had a million dol lars. l knew nothing of the agree nent you read and I never had the stock in my possession except for en- dorsement purposes"
 He added that although ne was treasurer of the Chicago Stockyards company. he knew none of the other officers. who were mere figureheads. holding one or two snares Of stock each. George F. Doherty, president. wassaid to be a clerk Pegram said he signed whatever he was told to sign by Bradley Palmer. counsel for Prince.
 Organization Necessary.
 Hart and Thayer declared organiza- tion of the Chicago Stockyards com pany was made necessary by the fact that the packers were considering leav- ing Chicago for cities further west. where they would be in closer touch with the livestock supply. Briefly stated. it was said that the New Eng land stockholders of the Chicago Junction Railways and Union Stock yards company found themselves out 5f touch with their clients and likely to be felt with their investment on their hands and no business. Ac- Cordingly, the new stockyards com pcny was formed under the laws of I.siEe as a holding company to assume ,IIs risk. Prince, leading spirit in the
 rsdIizatiOn was relied on, Hart said. 70 influence Armour through his busi- ness and social acquaintance with the packer. to remain in Chicago.
 The commission endeavored to show ny letters from F. s Mosely & Co.,, brckers Of Boston, that the new com i-any was simply a means of keepins the packers satisfied by paying theim 3iyiIends on the new company's stock iEsIe-d of bonuses and rebates which were Outlawed by federal legislation
 Tt is merely the choice of the way m which they will receive compensa- tion,' said oen letter. whether in large blocks Of bonds or cash or in div idends"
 Heney also endeavored to draw from witnesses that there was no real danger of the packers leaving Chicago. Thayer said he feared they would move. He admitted. however, that ne Thew nothing of the amount of theIr investments in Chicago or the cost of moving elsewhere
 How much will you pay us?" was declared in one letter to be the pre- dominant question every time the packers and the stockyards owners came to a renewal of leases. At one time, the letter said, renewal had cist the Junction Railways company $S.0OO,-