Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1917-12-23
Little Money Invested in Stock
Yards and Junction Railroad,
but Dividends Are Extreme
ly High,
HENEY CHARGES SHARP
PRACTICE BY ARMOUR
Properties, Secured by Dunn
mics, After Stock Had Been
Depressed by PeSsimistiC
RumorS,
rsv so.s,se JoussAt SPECIAL LEASED w,ss,

rsv ~osn,sa JouasAL SPECIAL LEASED wlRsl
Washington, Dec. 22.-Cotton seed
oil plants, Chicago real estate and cat
tie trade papers appeared today in the
records of the federal trade commits
sion's inquiry into the packing indus
Try as side lines into which the con-
trol of the big packers has extended.
When the inquiry was adjourned over
the holidays, Francis j. Heney, spe-
cial counsel announced that subse-
quent hearings probably in New York
or Boston would deal with the pack
ors' alleged control of grain, fertiliz-
ers, dairying, dairy feed, butter sub
stitutes. leather, hides, poultry and
CANNED vegetables, none of which
was touched on in the first three days
testimony.
Having introduced evidence to es-
tablish the control of the Chicago
Stock Yards company of Maine, pro-
NOTED and owned in large part by j.
ogden Armour of Chicago and Fred
erick Fl. Prince of Boston, Mr. Heney
developed from witnesses today that
Armour & Co. are interested also in
eleven other stock yards. 1t had
been testified previously that the Nor
ris group of packers owned most of
the Kansas City yards and that Swift
was interested In the st. Paul yard.
Mr.. Heney charged that by con-
trolling the principal cattle markets
Of the country. the packers are in a
position to manipulate the national
meat supply as well as dictate prices
to both producers and consumers. He
said that the large profits Of the stock
yards and railway companies came
chiefly from the producers, WHO pay
storage, feed and haulage charges
which constitute the bulk Of the COM
pany's income.
Records were introduced today to
show that other packers besides Ar
mour are interested in the Chicago
stock yards. Persons connected with
the Swift and Morris interests ap-
peared on the lists of directors of tho
Chicago Junction Railways company
and the Chicago Union Stock Yards
and Transit company, operating the
terminal railway 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
Maine corporation formed by Armour
and Prince. Frederick w. Croll,
treasurer of Armour & Co, said he
could not explain why the other pack
ers should have representation in
these concerns.
Croll admitted that Armour g. Co.
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 manufac-
turing district, appeared in list of
assets of the Chicago Junction Rail-
ways and Uniod Stock Yards COM
pany. Mr.. Heney called particular at
tention to the assets of this company
because of represe ntations made to
shall stockholders when Armour and
swift sained 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
guaranteed per cent dividend.
In attempting to market the bonds
after having gained control of the
Junction Railways company, the Chi
cago Stock Yards company told in
vestors, according to records intro
duced, that the assets of the Junction
company amounted to SAT- 100000, in
cluding 500 acres of land in Chicago
and $50 miles Of belt and terminal
railways. Attention was called to
large surplus earnings from 1907 to
1911.
1t appears that one set of repre-
scntations was made to get the stock
and another to sell the bonds" COM
mented Mr.. Heney.
Manipulation Of share warrants of
the Chicago Stock Yards company,
payment OF dividend checks to dunn
mics and alleged ARRANGEMENT of
earnings Of subsidiary company to
conceal excessive profits. also were
touched upon today. Records of the
Maine corporation showed that redis-
tribution of share warrants We're made
the same day a federal trade commits
sion investigator asked to examine
the books
Discussion of profits attracted con-
siderable interest from the commits
sion as to Armour's return to his in
yestment. Mr.. Heney explained that
Armour put up $4,000 of the origi-
nal $1.000,000 used to promote the
Chicago Stock Yards company and
gain control of the Junction company
panys $47,000000 assets. A letter
frop, priuce advised Armour ~ taka