Norwich bulletin., 1917-12-21

Washington, Dec. 2o.-From the se- clusion of corporation records, the federal trade commission today drew sensational disclosures of high finance, dummy officers and sham trustees in it's efforts to determine the ownership Of the Chicago stock yards dthe terminal railroad facilities at the big packing plants there.
 Control Meat Food of .1o0,ooo,o0o
 Establishment of ownership of the stock yards is only the first of the tasks before the commission, whic. plans to continue it's Investigation in to every branch of the country's meat supply and ire alleged control of the meat food of 100, 900, ,000 people by five principal groups of packers. The com missions report will be made the basis for recommendations that addi- tional legislation be enacted to rem edy the situation, if found necessary, and any evidence of law breaking will justice.
 Legal Method for Pickings.
 Organization of the Chicago Stock Yards Company, under the laws of Maine, alleged to have been for the purpose of providing legal method for the payment of millions in pick ings'' or rebates to the packing plants Union Stock Yards Company, of New Jersey, occupied Francis J. Heney, special counsel, and the witnesses called today at the first of a series of open hearings. Other witnesses to- morrow will be asked to tell what they know of J. Ogden Armour and F. H. Prince, of Boston, obtaining control Of the Junction Railways Company, which was organized by Prince, and turned it over to the stock yards company.
 Sponsors for the Plan.
 The late Richard Olney and various prominent citizens of New Eng land appeared in today's tes- timony as sponsors for the plan of absorbing the money making Junction poration- F. R. Hart, vice chairman of the board of directors of the Old Colony Trust Company of Boston, and E. v. R. Thayer. president of the formerly president of a bank in Bos- ton, testified of their activities as members of MT. Olney's organization committee, which induced holders of 60,O0O shares of the New Jersey com mon stock, to surrender their stock and their right to more than ss, s,0o0,- 0o0 surplus and accept in return a guaranteed nine per cent from the new company.
 Scheme to Hide Real Ownership.
 '@The whole plan was an entirely transparent proposition" MT. Heney
 
 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 R. Pegram. a retiring witness. for a quarter century bookkeeper and cashier for F. H. Prince and Company of Boston. According to the certified minutes of the Chicago Stock Yards 
 troIled the assets of the Junction Railways stockholders to the new plan and was given sS.000,0oo in Chi cago Stock Yards common stock and $1 ,000, 900 in cash.
 My salary is g, 800 a year" Pe- gram testified in reply to questions
 "No, sir. I never had million dol lars. I knew nothing of the agree ment you read and I never had the stock in my possession except for en- dorsement purposes"
 Officers Were Figureheads.
 He added that although he was treasurer of the Chicago Stock Yards Company, he knew none of the other officers, who were mere 6gureheads, holding one or two shares of stock each. George F. Doherty. president, was said to be a clerk. Pegram said he signed whatever he was told to sign by Bradley Palmer, counsel for Prince.
 New England Stockholders Endan-
 gered
 Hart and Thayer declared organiza- ton of the Chicago Stock Yards com pany was made necessary by the fact that the packers were considering leaving Chicago for cities farther west where they would be in closer touch with the livestock supply. Brief1Q stated, it was said that the New Eng land stockholders of the Chicago Junction Railways and Union Stock Yards company found themselves out of touch with their clients and likely to be left with their investment on their hands and no business. Accord ingfy the new stock yards company was formed under the laws or Maine as holding company to assume this risk Prince, leading spirit in the or ganization. was relied on. Hart said