The Washington times., 1920-02-20
Armour for 1000 Stock
holders With 10 Shares
Rather Than Big Holder.
by BOEhsIANEB.


when J. ogden Armour announced
the Armour business. the announce
ment did not mean a restriction to
the leather branch tthe Armour
leather branch, OF Armour Co.
Without saying SO explicitly. "
meant that later the public would
be invited to associate itself with the
affairs OF Armour q Co. generally;
specifically. with the parent organiza-
ton, Armour q Co, with the segre-
CATION OF the stock yards concern,
and so on.
At present the common shares OF
Armour a. Co. are owned practically
by J. Ogden Armour. Some time In
the future, possibly next autumn, the
preferred stockholders will be invited
to take on these ordinary shares, and
also TO take part In the stock yards
segregation. The leather deaiiis only
one step in the broad plan to trans
fer the Armour businesses from pri-
vate to public ownership.
Put differently, J. Ogden Armour
has decided to go much further
than Is stipulated In the compromise
with all the packers and the Govern
ment. In propriety sense he has
planned TO turn Armour T. Co. over
to the general investor. The scheme
was not impulsiyely conceived or
precIpitately resolved; not prompted
by past Government suits, or hurried
by fear OF future litigation: nor yet
impelled by the fact that the batting
of the, packers had become the fsy-
orite coup OF successive administra-
tions--in order to divert attention,
mostly from maladministrative' acts
elsewhere.
The president of Armour & -.
perceived that an immense corpora
ton doing an International business
should not be owned privately, should
on the contrary. be distributed own
ership-wise as widely as possible, saw
that aside from the question OF policy.
political and otherwise, II were much
better business to have the securities
scattered nationally Cor information
ally, IL possible), for every stock
holder means an actively interested
frlend-an invaluable asset to every
company Other Chicago industrial
lists had come to this conclusion. the
forerunner being George NJ. Pullm n,
who was followed by the McCormicks
end by Mr.. Julius Rosenwsld-to
mention three from a host whose al
fairs expanded rapidly.
The Armour name and prestige con
sidered-its unsurpassed ability and
credit--the first consideration naa
been safety: the next. ample returns
on the investment the motto being
the investor should be assured end
satisfied. The Armour Leather CoHs-
pany financing Is a concrete expires.
sion of the Armour purpose.
In allowing participation in the
leather company on the part of Ar
mour & Co. preferred stockholdei :
the object is that approximately half
| the securities of the leather orguI.,.
| cation should be a prime investmcLi
| issue. which is accomplished through
the Sl0,0OO.00O per cent preferred,
each share of which is fortified b.
1926 OF net and S165 quick assets.
Further. these are safeguarded by
provisions in the matter of precluding
a prior lien. The sl5,OO0,OOO COM
mon shares are represented by that
much cash paid in by stockhold,rs
The issuance OF 100000 founders
certificates-of no par vaIue--is
unique in respect of its position. Such
shares are an English invention dat
ing from the latter part of, the
eighteenth century. In England
founders stock generally Is put well
forward in the scale OF dividend pref
erence. Promoters want to be re-
warded speedily IN consonance with
the English proclivity to pay divi-
dcnds as quickly and as largely as
possible. In the Armour instance
they are not only relegated to the
rear. but Armour 4 CO. pay IS a share
| for them. an asceticism which would
make a Londoner stare.
Through the founders certificates
| (held in the Armour d Co. treasury,
an association Of interest remains
between the leather and original or.
ganization. since 50 per cent Of the
formers hides will come from the
latter
J. Ogden Armour states frankly
that holders of large blocks of stock
arc not wanted. He prefers 1000
stockholders with ten shares than one
| stockholder with 10000 shares. A
limitless diffusion of proprietorship