The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-07-29
DEVICE HIDES
OWNERSHIP OF
!. PACKING STOCK
Federal Trade Probers Show
:. How "Big Five" Rule
- Meat Prices.
COMPETITION rs CRUSHED
sBearer Warrants'' Issued to
Conceal Deals Could Aid
y in Avoiding Taxes.
COMPETITION rs CRUSHED
Special Despatch to TEE Sun.

oosiindte dDSOlutely, II Iney 90 hOt
control, both the prices of live stock
and the prices of meat in the United
States. This Ia set forth by the Fed
eral Trade Commission in the third
chapter Of the commissions report on
the meat packing industry,
The commission gives details Of the
operations Of the big fve,"o their
means and methods of controlling live
stock prices their dominating position
In the manufacture of meat products;
their complete sway over the distribu-
frigerator cars and railroad lines
branch houses. cold storage plants and
other facilities.
The report lays claim to the discov-
cry Of a new and potent financial de-
vice, the bearer warrant" which It
states can be used to conceal stock
ownership and might be used to escape
taxes if its utilities became generally
known. Much space in the report is
| given to the bearer warrant"
Briefly bearer warrant" Is a re-
ceipt for a stock certificate. The GER
tificate itself runs to the treasurer Of
! the corporation and he issues a receipt
or warrant for it. The warrant runs
10 bearer" and the dividends can be
collected and the stock actually voted
/ without even the officers OF the cor
poration knowing WHO the stock
holder is.
The device was discovered by the
| commission in its search for the true
ownership Of certain Chicago stock
yard interests, and 1t prevented the
commission from fully determining
the identity of the real stockholders.
! Name OF Ownership.
adjacent real estate development are
operated by companies whose stock IL
owned by the Chicago junction railways
and Union Stock Yards Company Of New
Jersey. which In turn Is controlled by
the Chicago Stock Yards Company OF
Maine. Bearer warrants for 1914 per
cent of the Maine company stock have
been identified as belonging to J. Ogden
Armour, president Of Armour q Co.
/ In the $S,000.000 deal superimposing
the Maine corporation over control OF
the Chicago yards. and ip which in 1911
100000 of stock was exchanged for
! q typewriter document known as 'the
-. -
100000 increased to 100000 with
out additional cash investment, ]. Ogden
Armour, the commission found, paid In
| $4,000 in cash receipts receiving 81.
$4,000 in stock in the Maine company
, From this stock he had drawn 3s56. s6C
in dividends up to 1s17-S1e2,sso NOR,
than his investment, and he will con,
tinue to draw his 1914 per cent. of al
the earnings the Maine company ID
able to realize on its control Of ths
New Jersey corporation.
The five great packers have used theii
numerous stookyards to increase theil
control over the live stock market AND
the meat packing industry as q whole
the report believes, and the commission
summarizes their control as follows:
Although there are fifty stocixyardi
In the United States at which live stoci
are bought and sold, more than 80 De,
cent. Of the animals pass through
twelve of these fifty yards (Chicako
Kansas City, St Louis, Omaha, 81. 10.
seph, st. Paul, New York, Fort Worth
sioux City. Oklahoma City, Denver and
Wichita), and the four largest Yard
alone receive more than SO per cent. Of
the cattle, 4s per cent. OF the hogs ant
81 per cent. of the sheep These foul
markets which dominate all others ant
which largely determine tho prices o.
cattle, hogs and sheep for the entir,
country are Chicago, Kansas City st
Louis and Omaha.
THE nve big packers either Jointly OF
separately have an interest in twenty,
eight of the nifty market yards; theJ
have a majority OF voting stock In TWEEN.
ty-two of these yards, and are Jointly in
terested in fifteen OF them. More thar
slsper cent. of the animals pass through
the yards in which they have an inter,
est.
stockyard Control Acouired.
-,
auuiIloh 10 ths twenty-two yaru'
controlied by STOCK ownership the com
mission SAID the Dig nve also controi TN
union STOCK faros OF Onaha throusi
sos per cent: ownenship Plus controi o
proxies lot other Young STOCK, ana con
Iol inc WlchtA Union STOCK iAro'
company tnousn sl'' per cent owner
en.p pius proAles.
arus III "hicn the ois nVe are no
ln.eIes.eu Ine Soinln.ssioh touhu az
1917 -SHI!. ,. az ~