The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1918-01-15
ARMOUR SOUGHT
MILLION SHARES
OF YARD s; STOCKS
British Owners Of Yards and St.
Paul Business Men Contribute
the B0uns
SWIFT g. co HOLD CONTROL
Practice of Wiring On Explain
ed by Witness Where Stock ,
is Forwarded

st. Paul, Mimi, Jan. 15.-Englisl
stockholders in the South St. Paul I'm
ion Stock Yards Company, together
with st. Paul business men, made i
possible for Armour & Company to re
spond to the urgent plea Of a repres
entative of this city to erect a 1900
600 packing plant at South St. Paul
on their own terms, it was testified
yesterday at the first session of the
hearing in progress here by federal
trade commission Investigating the
South St.. Paul Union Stock Yards.
Under questioning by Francis J.
Haney, attorney for the commission,
c. w. Gordon, business man Of this
city, told of several trips to Chicago
which, he said, resulted in J. Ogden
Armour Offering to meet the plea of a
body of St. Paul business men to erect
a plant at South st. Paul UniSn Stock
Yards company. st. Paul business men
agreed to furnish half of this amount
Mr.. Gordon calling upon Louis F.
Swift of Swift &, Co., to support his
statement to Mr.. Armour that the re-
quired amount Of stock in the south
st. Paul institution will be available.
British Representative. -,
The testimony of X. D. Dunlop, rep
resenting English stockholders Of the
South St. Paul Union Stock Yards,
brought out the fact that the men he
represented allowed dividends, which
amounted to 100000 to be placed in
the hands of trustee, to be used in
bringing in another packing plant to
South St. Paul. The amount was as
signed to the trustee to be held for
five years. If the attempt to bring
in, another packing plant was not sue
cessful within that time, the money
would revert to the stockholders as a
dividend, which up to that date, June
10, 1916, had not been declared.
! / The Half Million Bonus.
The $5O0.0O0, at meeting Of the
Union Stock Yards company in 1916,
was used to increase the capitalization
from s2,OO0,OOO to $2,5O0,000, and the
amount Of English money held in trust
was assigned to the TT. Dearborn
Trust and Savings Bank Chicago,
which the witness said is known as an
Armour institution. That amount and
the bonus promised by st. Paul bust
ness men, Melted the $1,000,0OO nee
essary to bring Armour & Company to
South St. Paul, according to witnesses.
The local business men, in closing the
agreement, offered 100000 in cash
and 100000 in stock in the South St.
Paul Union Stock Yards, which was
accepted Mr.. Haney indicated that
Armour & Co. might have come to St.
Paul without the bonus offered by the
st. Paul men, but Mr. Gordon who rep
resented their activities in connection
with Armour & Co., declared that
those interested in the transaction in
this community are entirely satisfied
that the necessary competition to
make the stock yards successful was
secured when Armour & Co. began
active operations. Of the 100000 Of
fered by the St. Paul men, 100000 III
stock and 100000 in cash has been
paid. .
Swift HooId Control.
William Magivny, president of tke
South st. Paul Stock Yards company,
testified that there is no secret about
Swift & Co., holding the controlling
interest in the orgapization of which
he is president.
He said that the board Of directors