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Show SWIFTS EOS INSPECTION OF GDKPMBOOKS Chicago Packers Face Summary Sum-mary Court Action for Not Aiding in Trade Commission Com-mission Probe. FACTS BROUGHT TO LIGHT BY INQUIRY Armours Are Interested in Stockyards, Although the Holdings Did Not Appear Ap-pear in Records. By D. M. EDWARDS, International News Service Staff Correspondent. UW.f I INRTi U.M-. ii. swift &. Co., of I'hiriiK", fur- Minininry court action lrr;ilMti Of" tll.jlr 1'CfllHfll toihl.V Uj til HH over in tho federal tnulo rom minion hmUs tliJit arc iift'ded to show the com-I com-I uiiy'.s iiiii'tirij-al ion in the stoi-kyards hllnilll'SH. Kriuifis .1 . I If n Invest iat or of the in'oflincrin situation of the country, announced an-nounced that he would force the pro-' pro-' ductton of tlw; papers required, lie added ! tinit he wanted to .show that tho Swifts, ,in well as thr Armours, had, an interest In the Chicago stockyards company, sup-iiosi'dlv sup-iiosi'dlv ilisi'syociated from I lie Chicago pa'du-rs. Day's Developments. other developments of today's Inquiry v, ere: 1 Armour & Co. owned 15,520 shares of the ( 'hienK' Stockyards company, tho Maine corporation formed to take over i he common slock of the Chicago Junction Junc-tion railways and Union Stockyards company, com-pany, a New Jersey corporation, which in turn had bought all the Interests from the packers except the packing plant. J Armour & Co. also owned 6500 shares or Mtock in the Chicago Junction railways ;uul Union Stockyards company, also supposedly not connected with the packers. pack-ers. ;i Holdings of these stocks did not appear ap-pear uii the Armour hooks, according to one of the directors of the company called as a witness. Armour Company Owners. 4 Armour & Co. is owned by eight per-snna per-snna all Armours J. Ogden Armour, 70 per cent, the remaining 30 per cent divided divid-ed among C V. Ogden Armour, A. Wat-ot Wat-ot Armour, Lawrence II. Armour, Philip I '. Armour III, Mrs. P. A. Valentine, j .Mrs. Julinnna A. Ferguson and Mrs. Mary j Armour Dunn. .V- Frederick IT. Prince of Poston, whose bunking firm handled the affairs of the i 'bicarb Stockyards company, wrote a letter let-ter to Mr. Armour suggesting that the :'.ock be listed on the. exchange and then ,-we shall do our best to depreciate the valuo of the outstanding stock so as to j,f. tho small holders to conic in. The guaranteed stock would commence to draw dividends at 9 per cent commencing November I. My idea -would be perhaps that for the first six months to have the New Jersey company onlv pay S per cent i.nd the other per cent to be paid out df t lie treasury of the Maine company, which would amount to but $tl5.000." K Clerks and subordinates in Prince's iii'i'Sees were paid thousands in dividends 'ui the checks were endorsed over to tho Prince firm. 7 Cheeks for thousands of dollars paid to Armour & Co.. but made out in the Mind form of "New York check" were i -need to the Armour & Co. offices. First Tangible Statement. Mr. 1 lenov produced the first definite tangible statement that Armour & Co. owned stock in the Maine corporation ;'iid also the Jersey corporation through Frederick YY. Croll, treasurer, and a director di-rector of the Armour company and confidential confi-dential man to Mr. Armour. lie has been treasurer of the company : ine vears. "lines Mr. Armour or the Armour rom-i-inv own anv interest in the Chicago Stoekvards companv?" asked Mr. Heney. "Yes." replied Mr. Croll. "I low many shares?" "Fifteen thousand, five hundred and ;wentv shares," replied Mr. Croll. "Poes Mr. Armour own any stock of i lie Jersey corporation?" 'lie had an interest in a syndicate -with Mr. Prince, a nominal one-fifth interest. "Mr. Armour personally went in with M r. Prime to purchase for him 6500 -hares of tlv-it stock; but it w;ss never ; his name" added Mr. Croll. Thought Investment Good. "In what way did Mr. Armour become ui owner in the Maine corporation?" per--.ted Mr. Heney. "lie turned over the investment he had n,:,'!e to Amiinir t 'o.. Thinking That it, ;i -cod iuves'ui.-nt and uo.l r..r tho ot .i--r s i O'. L hoi'J i;!'1' of 'lie Anin'.i: ' -;..- "Thf-ri; aie not n-.tny fo.-kbuiue: s ol tli.- A rniour i-'iiii p:t ny V" "Thop: arf- eilit." rt-.-r-ond'-d Mr. Ooil, namni- the van-m.- ivi;i m of ' ho pjj.-k.T Wh'l W-r-i hnlrl.Ts of all th.: 1irk. "And tiit-re nothing uu t It- book.- TO viiO'.v ti::it l.o ouned th-: M'ck'.'" "No." ''li'.' was not tho dividend i-h'-ck i":::eie our to Mr. Armour'.'" " do not know.'' Heney Produces Check. Mr. H-.-nev pnd - iced a -:" -k for ? I hat had been dry wn hv t ue M-r-ii;ilils X;i I lun.'il m;inIc o! Huston, pav.iblp "NVw Vurk click." Mr. i ' j o 1 1 said it whs pnicrioally a "pay to hearer" .-heck, out Mr. ileri.-y said it would In; perfertly simple for this check to be ex- hanged for a drufl and tlie name of the p.-rson io whom the money actually w.-nt concealed. con-cealed. Mr. ('roll admitted thl.v might be tnie, but bo hud no knowledge of, who actually rcei v-d them. There was another check tor ''ii'i for dividends of July, 1 b 1 7 , drawn on the Firi National ha i ilc of I lost on. Mi-, i P-iiey asl:ed M p. ('toll if he could identify it, but Mr. Croll .-aid lie ,-ouM not. Mr. i leney asked if Mr. Armour got anv check for the dividend of Januarv, u:. "I believe be received some sort of a draft, but I am not Hiire." Interest in St. Paul. "I lave tho Armours any interest in the pricking plants at St. Pun I?" "There wa s a ci t izens' com in i 1 1 ee which ;igreed to do something, but. don't know that any tiling lias been done so far " 'Ibil they ngrce to put up $50';, 001?" "No, not yet. J think that was to be put up a f ter the plan progressed." "Do you know whet her A rniour S: ( o. made arrangements with Swift Co. to Ai-i part of their I rovers bank of St. Caul?" "i don't remember handling the details." de-tails." "Who did'.'" j "( leorge I ). Kohhins, vice president in charge of transportation in Chicago." Confidential Man Called. j Mr. Heney called M M. Wadden. for-1 nierly treasurer of t he Chicago Junction tiail ways and Union W lock yards company, com-pany, and confidential man to Mr. Prince, to identify notes he made in 15)11. A page headed "proposition" described the or-amzution or-amzution of the plan and nmder a subhead, sub-head, "scheme," it showed that of the new $S. 0uii,i)00 corporation the packers were to receive $-l,IOu.noO in stock, "to which I hey are entitled." Tlie Gut), lino surplus remaining in the treasury of the old organization would accrue to tlie packers. Mr. Henev called tlie ?4(K),00() nf tlie Si.l'iD.tnni item of stock to be given a "rebate in the form of bonus." which went to Armour and Prince. Wadden, in his notes. referred throughout to the "packers." j "I did not know the men who were I holding the ofiices and directorships of tlie Chicago Stockynrds company while I was serving as treasurer," said Mr. Wadden, "but I did understand fluit no matter in whose name the stock stood, Mr. Prince and Mr. Armour were the big stockholders and that affairs were conducted con-ducted largely in accordance with their wishes." Mr. Heney brought out that Mr. Armour, Ar-mour, after buying stock, paid $19-1,000, and immediately borrowed ?20O,0O0. List of Stockholders. F. M. Manning, bookkeeper for F. H. Prince & Co. and secretary of the Chicago Chi-cago Stockyards company, said tlie stockholders stock-holders of the stockyards company were Albert Jones, Norman T. MacC.affin, B. M. Maxwell, If. ;. Pegram, Clarence R. Year on, James F. Maddern. one share each; Joseph F. Regan, Albert A. Richards, Rich-ards, two shares each, and 79,9!t0 shares not named. He told how the checks for dividends for these were indorsed to the Prince firm. A check for $:?, 77ii given to Pegram; one for $161. 22n to Mrs. Abbie Norman Prince; one to W. . Mitchell for 517,500; one to Harry P. Nash for $1S,-700; $1S,-700; one to Joseph F. Regan for $25,000, all found their way back to the Prince firm. Then there were checks for $25,000, $161,225, $36,550, $125,000. $36,175, $125,000, $610S0, paid to Prince. Tho hearing will be resumed tomorrow. : iAt the conclusion of that session the commission will adjourn over Christmas.1 |