Evening star. [volume] (Washington, D.C.) 1854-1972, 1917-12-22
SAW PROBE AHEAD
AND SPLIT SHARES
Stockyards Company Acted
Same Day Federal Investi-
gator Appeared.
OTHER TRANSFERS MADE


the Chicago Stocsyards Company was
begun as soon as the managers got
wind of the Federal Trade Commits
sion's coming investigation. 1t was
brought out in testimony before the
commission today that on the same day
q federal investigator appeared 34,4S0
shares were divided into seventeen
portions. The object of the sudden
transfer. as it appeared from the testi-
mony. was to conceal real ownership.
which is alleged to be really with the
great meat packing concerns.
The day federal agent walked into
the Offices of F. H. Prince & Co.. in
Boston, the "a .4S0 shares were split into
one warrant for 1880 shares and six
teen warrants for 1000 shares each
Several Transfers Had Been Made.
Evidence also was introduced to show
that the share warrants had been
transferred a number of times. First
they were held by Frank R. Pegram.
then transferred to Mrs. Abby Norman
Prince. and then were split among
number of clerks and bookkeepers in
the office of Prince 6 Co. Pegram was
made trustee for these holdings.
Witnesses for the commission pointed
out that there appeared two share war
rants for the same amount, 1880 shares.
1t has been established that one OF these
went to Armour & Co. Mr.. Heney called
attention to previous evidence referring
to 'tthe other package and said the evi-
dence pointed strongly to the fact that
Swift 6, Co. may have received the other
block of 1880 shares or that F. H.
Prince was holding it for them. He also
called the commissions attention to the
fact that part Of the sixteen warrants for
1000 shares each may have gone to Nor
ris & Co.
On Railways and in Real Estate.
There also was evidence today to
the large meat packers are represented
on the board Of directors of the Chicago
Junction Railways Company, operating
the terminal railroads of the Chicago
stockyards.
Frederick w. Croll, treasurer of
Armour 6 Co.. recalled to the stand
today. testified also that the influence
of the packers extended to the real
estate situation in Chicago.
Attorney Heney said that Directors
spoor. Thayer and Fitzgerald of the
Chicago Railways Company held the
central manufacturing district proper
ty. where large firms are located. as
trustees for the Chicago Junction
pany.
Croll was asked whether the Armour
books showed all the companies in
which the firm was interested. He said
they did.
DO they show that Armour & Co.
were Interested in a large string of
plants through Texas. Arkansas and
Tennessee. which stood in the name of
Louis Ehle from 1907 to 1912" asked
Mr.. Heney.
IT don't remember"
Mr.. Heney read list of stockyards
in which Armour & Company were in
CT a rdQ at
Denver. Fort Worth, Jack
Jersey City. Pittsburgh.
Sioux City. st. Paul. st. Louis, Portland.
Ore, and Toronto, Canada.
Interested in Cattle Papers.
Records also were introduced to show
that Armour & Company also were in
terested in cattle papers in Fort
Worth and Denver.
IT think Swift got half of the Denver
publication" Mr.. CroIl said. II believe
it was auctioned off with some other
properties"
do you mean auctioned off between
property of the National Stockyards
Company?" asked Mr.. Heney.
The National Stockyards Company
was a combination of packers which
was dissolved by the government.
YES" replied the witness.
There was considerable wrangling
about the spoils?" asked Mr. Henry.
There was" Mr.. Croll answered smil-
ing.
Commissioner Colver asked Mr.. Hen
ry about the central manufacturing
District property. owned by the Chi
cago Junction Railways and Union
Stockyards Company, and he called at
tention to the fact that it had been rep
resented to the small stockholders of
the Junction Railways Company that
one reason for them to turn over their
stock to the Chicago Stockyards Com
pany was to avoid the risk OF having
the stockyards property become use
less il the packers should move away.
Armour Aided Prince.
investigation yesterday afternoon as
the packer who aided f. H. Prince Of
Boston to obtain control of the Chicago
Junction Railways and Union Stock
yards Company and turn 1t over to the
Chicago Stockyards Company. organ
lied and controlled by themselves
Records were introduced to show that
after the reorganization the stock
yards company, without assets or bust
ness other than controlling the older
of more than 100000 out of the
Junction railways surplus and to de-
clare quarterly dividends of 21a per
cent on their 100000 capitalization
after the small investors in the
Junction railways had been given
Testimony Of w. NJ Walden. former
treasurer of the stockyards company, and
Frederick w. Croll. treasurer Of Armour
& Co, established Mr.. Armour's connec-
ton with the deal. Efforts to prove that
other big packers were interested in the
company met with little success, nom
conmittal replies being given by the wit
nesses to questions as to what was meant
by "the packers" and 1.-The other Chicago
people" In correspondence concerning the
organization Of the Chicago Stockyards
Company.
To Pursue Matter Further,
Francis J. Heney, special counsel. will
pursue the matter further in other ses-
develop the extent OF the packers con-
troll OF the marketing of cattle and the
distribution Of meat products
Some idea OF the ramifications Of the
inquiry was given IN brief questions con-
corning ownership Of the yards at Kansas
City and st. Paul. Croll testified that
neither J. Ogden Armour nor Armour a
Co. Of which J. Ogden owns 70 per cent.
had any interest in the Kansas CITY va rds
In organizing the Chicago Stock
came the possessor of 1890 shares
according to testimony, but Lire ali
the other shareholders his Identity was
concealed through the use of share war
rants payable to bearer. Crou said
Armour had turned in his stock to Ar
mour & Co. In order that the eight other
stockholders of that concern. ali OF
them mebres Of the Armour family
might benefit. Ownership Of the stocL
however Is Jumped with other assets.
Details Of Getting Control.