Evening star. [volume] (Washington, D.C.) 1854-1972, 1917-12-21

Details OF the plan for obtaining con-
troll of the Chicago Junction Railways
were unfolded by W. M. Walden.
former treasurer of the company, who
said he was partner in F. II. Prince
& Co. OF Boston. but sometimes took
shorthand dictarion from Prince. Two
pages of shorthand notes were identi-
tied by Walden as having been taken
by him in 1911.
Notes Outline Plans.
The notes were headed proposition"
and set forth how Prince and J. Ogden
Armour were to obtain control of the
Junction Railways Company. Then came
subhead. Scheme" which detailed
how the new corporation. the Chicago
Stockyards Company, was to be formed
and obtain the control of the yards and
railroads held by the other company.
Prince claims he and friends control
most of the preferred stock and can be
counted on to vote" the memorandum
read. He and Armour control the
common stock"
Prince was said to own 20,500 shares
of the Junction Railways stock, F. S.
Moseley & Co of Boston had bought
IL, 500 shares. of which Armour was to
take one-half, the balance going to
pany's stock was to be bought by
Moseley and divided equally between
Prince and Armour.
Hoped to Get Contracts.
The object of the new corporation
was said to be ito get contracts from
packers and give them together 3d.
,oe0 of 8 per cent stock of the new
corporation"
Some discussion arose over Mr.. Wad-
denis translation OF the word "togeth-
err" which appeared in brackets in the
shorthand notes. Mr.. Heney asked him
il the symbol did not mean big three"
referring to the three principal packing
groups, Armour, Swift and Morris. Mr..
Walden said heTwa confident that if
The dictation had been big three" he
would have written II so.
Mr.. Heney introduced a letter from f.
W. Croil, confidential secretary to j.
Ogden Armour, to F. H Prince. The
letter inclosed clippings from newspa-
pers of October 10, 1910, and said that
reporters had asked him of rumors that
the packers were trying to obtain con-
troll of the Chicago junction Railways
and Union Stockyards Company.
"of course we denied all knowledge
of the matter" the letter said.
Flat admission that ]. Ogden Armour
and F. H Prince own the Chicago
Stockyards Company, controlling the
Chicago Stockyards and Terminal rail-
roads. was made by Walden. Although
tho stock appears in the name of Frank
y,
Walden said he knew who the real
owners Were
Alleged Purpose Of the Company.
Testimony that the Chicago Stock
Yards Company was organized to retain
in Chicago the country's big packing
plants by giving the packers share
of the plumber" derived from the oper-
alton Of the yards and the terminal
railroads was introduced yesterday
F. r. Hart. one of the principal fig
ures in the stockyards company, testi-
J. Ogden Armour all the conpany's earn
ings over per cent to keep Armour
from moving the yards from Chicago
and farther west.
The testimony was brought out by
Francis J. Heney. the commissions in
vestigator.
Boston Brokers Letter Read.
With other sensational testimony to
show that the company was organized to
keep the plants from being moved away. a
broker, who assisted in the organization
was read. saying the proceeding was
merely to legalize rebates to packers Sc
they might nave a portion OF the pun
der" and might have their "pickings."
Yesterdays testimony. part Of the trade
| commissions drive to get at some OF
the high costs Of living. developing how
a two thousand -five-hundred dollar
clerk acted as the medium of an eight
million dollar transaction, the sole pur-
| pose OF which was TO have a corpora
| ton assume the risk OF the packing
| plants being moved away. was sem
| satlonal in high degree.
Certified minutes of the first meeting
of the Chicago Stock Yards Company
/, September 27, 1911, were introduced
The minutes recited that Frank r
Pegram. treasurer OF that corporation
had attained assent OF holders of so. 0Of
I shares OF the common stock of the Chi.
cago Junction Railways and Union
Stock Yards Company to a plan forn1u.
lated by a committee.
Il was said the plan assures to the
Chicago Junction railways and Jntor
stockyards companies the continuance Of
I the business now carried on by the pack
ers upon a permanent basis and a great
increase in profits and the value of tn,
shares of stocks" Pegram was RECORDED
as having sold the plan and assets ant
| 81 zoo, 600 in cash TO the company fol
| SIS, 000. 900 in common stock
| Pegram, who previously had testified
that his salary was $4,000 year. also
declared he knew nothing of the agree
ment as set forth In the minutes