The Sentinel=record., 1917-12-23
BlG SQUEEZE WAS PUT
 ON LITTLE STOCKHOLDERS
Under the Questioning of Mir. Heney the Manner of Manipulating the Deal Whereby the Packing Houses Gained Control Of the Junction Railway is Brought Out.

Washington, Dec. 22.-Cotton seed oil plants, Chicago real estate and Chicago cattle trade papers appeared today in the records of the federal trade commissions investigation into the packing industry as side lines of which control the big packers has ex- tended. When the inquiry was ad- 1ourned over the holidays, Francis J. Heney, special counsel, announced that subsequent hearings, probably in New York or Boston, would deal with the packers alleged control of grain, fertilizers. dairying, dairy feed, but ter substitutes, leather, hides, poul- try and canned vegetables, none of which was touched on in the first three days testimony
 Having introduced evidence design ed 10 establish the control of the Chicago Stock Yards and Terminal railways by the Chiacgo Stock Yards company of Maine, promoted and owned in large part by J. ogden Ar mour of Chicago and Frederick Fl. Prince, of Boston, Mir. Heney devel- oped from witnesses todty ahat Ar mour and company are interested also in eleven other stock yards.
 It had been testified previously that the Morris group of pa, kers owned most of the Kansas City yards and that Swift was interested in the St. Paul yard.
 MT IHeney charged that by control ing the principal cattle markets of the country, the packers are l.. position to manipulate the nations meat sup ply as well as to dictate prices both to producer and consumer He said that the large profits of the Stock Yards and Railways company come chiefly from the producers who pay storage, feed and hauling charges which constitute the bulk of the com pany's income. Records were intro duced today to show that other pack CTS besides Armour are interested in the Chicago Stocx Yards. Persons connected with the Swift and Morris interests appeared on the list of di- rectors of the Chicago Junction Rail ways company and the Chicago Union Stock and Transit company operating the Terminal railways and the stock yards These companies are owned by the Chicago Junction Railways and Union Stock Yards company of New Jersey, which in turn is controlled by the main corporation formed by Ar mour and Prince.
 Frederick w. Croll, treasurer of Ar mour and company. said he could not explain why the other packers should have representation on the concerns.
 Croll admitted that Armour had large interests in cotton seed oil plants in Texas, Arkansas and Ten nessee. and that Armour and Swift were interested in cattle trade papers in Fort Worth and Denver.
 Millions of dollars of Chicago real estate, known as the central manu- featuring district, appeared in d list of assets of the Chicago Junction Railways and Union Stock Yards company
 Mir. Heney called particular atten- ton to the assets of this company be- cause of representations made to small stockholders when Armour and Prince gained control of the company that the company's property was in danger of material depreciation in or der to get the small investors to sur render their stock and accept a guar anteed nine per cent dividend.
 In attempting to market bonds after having gained control of the Junction Railways company. the Chicago Stock Yards company told investors, ac- cording to records introduced that the assets of the Junction company amounted to $47000,0O0, including Soo acres of land in Chicago and 25O miles of belt and terminal railways. Atten- tion was called to large surplus earn ings from 1907 to 1911.
 "It appears that one set or repre-