Norwich Bulletin Newspaper, December 21, 1917, Page 1

i VOL. LIX—NO. 305 " POPULATION 29,919 - NORWICH, CONN., FRIDAY, DECEMBER 21, 1917 " TEN PAGES—80 COLUMNS TWO CENTS CLOSING CHAPTE R IN SE RIES OF LUXBURG’S INSIDIOUS PLOTS Evidence of How He Endeavored to Align the Nations of South A_merica Against the United States . EXPOSURE OF GERMAN INTRIGUE Irogoyen of Argentina to Enter Into » an Agreement With Chile and Bolivia to Form an Al- Tiance for Their Protection From North America—Found the President of Argentina Pliable, But the Foreign Min- ister Met Cunming With Cunning—German Minister’s Secret Mossages With His Home Government Were at Complete Variance With Negotiations He Was Con- ducting With Argentina—Based Hope for Success of Germany’s Future Policy in South America on Chile Re- maining Neutral—Disclosure at This Time is Important Chiefly Because Luis Cabrera, Envoy of President Carranza, is on His Way to Argentina to Attend a So- Called Neutrality Conference. - ; e ’ Washington, Dec. 20—Bvidence of| a ‘Germaa piot to align the nations of South America against the United States is revealed in telegrams sent to Berlin by the notoricus Count Lux- burg, former German charge n Ar- gentina, made public today by the state department. Tried to Allign South America. dn ome of the messages, of which fhere are some forty, Luxburg reports that hé induced President Irigoyen, of Argentina, to enter into a secret agree- ment with Chile and Bolivia, a “mu- tual rapproachment for protection wis a wis North America,” and did his utmost to have Peru included in such an asreement. Denial by Argentine Minister. Translations of the dispatches were Eiven out by the state department in agreement with the Argentine mini: ter of foreign affalrs, who in an ac companying statement gave gemeral denial to Luxburg’s account of the ne= » gotiations with his government. Inaccuracies of Telegrams. “The telegrams show a number of in- @ccuracies so surprising that no epl thet will fit them,” said the foreign minister’s statement, “as they are at * complete variance, both in substance | A form, with the terms in which the ymegotiations were entered into, carried on and brought to a conclusion.™ It was also shown that Luxburg did ,everything possible to have Peru brought into such an agreement. To Flatter Argentinians. The correspondence deals largely ‘with efforts made by the German min- $ster to prevent any rupture of rela- tions with Argentine and throughout the despatches there was a warning to his government to fiztter the Argen- tinlars and to word the note In reply to the Argentine protest against the sinking of ‘the steamer Toro in such a way as not to offend them. Argentine President Pliable. Evidenca of the apparent pliabitity of the Arzentine president and of the opposition of minister of forelgn af- falrs, Purreydon, is disclosed in many of the daspatches. Frequent reference is made by the charse to difficulty he was having in dealing with the foreign minister, but, emphasis is placed upon the ease with which he communicat- ed with the president. accompanying the he Argentine foreign min- nounced that there were three messages not published 2s they relat- ed soleyl to Chile and Uruguay. They have been @elivered to those govern- ments. Feared “Sccret Wire” An indication of the means used by Count Lux"rz to evade detection in communic: g with his govern- ment is found ' one despatch where reference iz mode to his foar that the “mecret wire” has been discovered. An- » an interruption of xico. The mesen~o roferring to the South American allinr~o merely said that the president at last had mads up his mind to conclude such an agreement ‘with Chile and Folivia, and there was nothine in the correspandence o ciear up _just what necotiations were cer- ried on with thoee countries. The concluding meseags, dzted July} 19 said: Based All Heps On Chile. “As lonc as Chile is neutral Ger-| war toi carry out her Sonth Americen voMcy Just as well, if not more easily, ‘@ op- Pposition t> an infatuated and the state department in the . United States. There are three telegrams not published as they allude solely to the republics of Chile and Uruguay. The government hds decided that it should not publish these telegrams and has delivered them to the respec- tive chancelleries. inaccuracies so surprising that no epi thet will fit them, as they are at com- plete variance, both in substance and form with the terms in which the ne- gotiations were enterea into, carried on and brousit to a conclusion” Texts of Luxburg’s Messages. The German charge’s messages were sent during last July, Ausust and September. All are addressed to Ber- lin and signed “Luxburg.” Following are the texts in the order in which they were made pubiic: . “July Tth or 8th, 1917. No. 62. “Minister of Foreign Affairs, who is a theatrical persom, has shown an insane cunming in ‘me from having an interview with the presi- dent. He sent me a copy of the note and- declared in accordance therewith :T‘mmmu‘:_.m?l& not wnlell':mtg e products of the country treated as contraband. North America Not Irresistible. ' “The preseure of North America in regard to shipping iron, coal and pa- per is great bat »ITMDI& ‘What e prestdont: mhoss actl lon it is impossible to fore changes minis- ters a postponement of the crisis or a setflement if possible. “If the answer is. unsatisfactory there is to be a. rupture of reiations. Calls for U-Boat Squadron. “No. 63, July 7, 1917. Our attitude towards Brazil has created the Impression here that our easy-going, good-nature can be count- ed on. This is dangerous in South America, where the people under thin veneer ‘are Indians. A submarine squadron with full powers to me might probably still save the situation. I request instructions as to whether af- ter a rupture of relations legation is to start for home or to remove to val astache wil ¢ e o &0 to San- tiago de Chile. “July 10, 1917. No. 67. ;President In the course of a long interview protested his friendship for $04 firm desire for neutral- severe pressure. He demanded forbearance for all ships, about six in number, proceeding to the war zone but conceded that con- traband found on board might be de- stroyed. He stated that it is a fact that there are no more ships availa- ble. He regretted the possibility of rupture. Am reporting further.” Created Good Impression. “July 13, 1917. No. 69. o Imperial chancellor's declaratton of peace ut _annexations has made the best impression among our friends and also created impression of the strength of our confidence of Jictory. iIhe news of the crisia and of numerous ministers is Being explsttea by our enemiess Situation Bofter. oy 14 11T Mo 7o, tuation better, president to invite American Eauadron. T s negotiatile respeeting proposals for the solution of the ship question.” Conciliatory Note About Toro. T3uly 15, No, 1. . e special request of the pres- fdnt X have undertaken to transmit ollowing. We have. e discussed the rtaking. This in conclliatory Jans ety 15, 1017w aly J5 1917 No. 72. Conttmua: 7 1 "Three. We to allow the five or six JoTy mmall vessels now on the way to Dass th without convay. De- ’Iw.-;.‘nl.%r No, 73. .:;!ldmt_ut.m" Number 71. bwy American Fleet Expected. “Visit of American fleet is ‘week b!ywrflum .fml'urlhpmb; P . Cabled Izfigraphs : Christmas Mail Arrives in France. A French Port, Dec. 20.—A special ship carrying 20,000 sacks of Christ- mas mail for the American troops ar- rived today from the United States. Another steamer arrived on Monday with 4600 sacks of army mall, com- prising for the most part Christmas presents. Food Needs and Resources of France. Paris, Tuesday, Dec. 18.—The food needs and resources of France for the coming nine months were dealt with before the senate today in a state- ment by Victor Loret, the minister of provisions, in which he pointed out that there was a deficit of 36,000,000 hundredweight in wheat. MORE INDICTMENTS OF PHILADELPHIA POLITICIANS Mayor Smith Is Charged With Mis- demeanor in Office. Philadelphia, Dec. 30.—Another in- dictment was returned against Mayor Thomas B. Smith today n_connection with the fifth ward political feud in which a policeman was killed. The grand jury indicted the mayor today for alleged misdemeanor in office. He was indicted yesterday on charges of contempt of court and conspiracy to violate tre law forbidding political activity by_officeholders. avilliam E. Finley, executive direc- tor of the republican city committee, indicted on the charge of conspiracy to aid in the flight of alleged gunmen from the city after the kilking of the policeman. The misdemeanor count against the mayor, according to District Atfor- ney Hotan, deals with charges that the mayor failed to provide sufficient police protection, that he had encour- ed activity by the police and office holders in the fifth ward fight and that he took no cognizance of warn- ings that gunmen were being brought into the city. AVIATION SECTION OPEN TO MEN OF DRAFT AGE Flyers and Balloonists May Enlist at Nearest Aviation Examining Board. Washington, Dec. 20.—Men of draft age qualified for present needs of the aviation section of the signal corps can seek immiediate service despite the recent ruling discontinuing voluntary enlistment of draft men. It was an- nounced today that fiyers and bal- loonists may enlist as heretofore upon passing the examination at the nearest aviation examining board. which will onduct whatever negotiations are necessary with the exemption boards of the districts from which the vol- upteers’ are i a. - No aerial observers are niow being accepted, the statement -said, nor are non-flying officeys, except a limited number of graduates of recognized en- gineering colleges or others who can qualify as expert engineers. Men seeking service in the aviation section enlisted personnel may volun- teer only through their local boards. MEXICO. TO RETAIN CONTROL OF RAILROADS But It May Later Retire From Active Management of Lines. ‘Washington, Dec. 20.——The Mexican government has no intention of aban- doning ifs control of the national rail- way lines, maintained through its ownership of a majority stock, but it may later retire from the active man- agement of the roads, assumed during the last revolution. This was announced today by the Mex¥an News Bureau in explaining that while the stockholders and the bankers interested may decide to in- cur additional bondea indebtedness.in order to rehabilitate the system, this wculd not affect government control. PLENTIFUL SUPPLY OF SUGAR IS PREDICTED During the Coming Year by President Babst of American Sugar Refining Co. ‘Washington, Dec. 20.—A _plentifal supply of sugar for the American peo- ple during the coming year was pre- dicted today by Earl D. Babst, pres- ident of the American Sugar Refining company, testifying hefore the senate investigating committee. end of month and when it is given going fully into the Toro case in con- ciliatory language emphasizing con- cruiser warfare and express- ing regret at the necessity for sink- ing her. Owners here Dodero are agents of an enemy government and have sold sixteenth instant Argentine steamship to France for patrol ser- vice, continuation follows.” “July 20, 1917. No. 74. tion Jt No. 73. “In regard to treatment of general Continua- question of note, please show concilia- |- tory attitude in regard to recogmized international law and suegest further on. The Argentine govern- ment wishes to continue conversations. Chile has removed flag from steamer Iquique, property of Dodero. Recom- ‘mend expressing recognition of this to the Chilean mimister.” Radio Plant Erected. “+Jaly 20. No. 75. “First. Receiving plant erected ac- cording to instructions. ''When does Nauen send at greatest strength and ‘which is the wave length? “Secondly. The legation balance at the bank was on June 30th, 656,000 Dpesos.” “July 24, 1917. No. 80. “Confidential also for August.” Provincial and State Loans. 239y, 26, 19T, No. 8z, b irsi ce of coupons provincial and state loans depends on :x;h; general situation we are negotiat- “Second. Union is in need of a gub- vention on account of the blacklist and prices about ten thousand pesos ‘monthly.” Destination of Ships. “July 25, 1917. “Destination and particulars of. ships Page {Continued on. |Warden Barner to |Civil Warfare in | Leave Wethersfield HAS RESIGNED BECAUSE OF CON- ITION OF HIS HEALTH {IS GOING TO CALIFORNIA His Resignation is Regretted by Board of Directors as He Has Been Suc- cessful in Effecting Prison Reform in Connecticut. 5 'Hartford, Conn., Dec. 20.—Warden Ward A. Garner of the Connecticut state prison today resigned by reason of his health, and the board of direc- tors, at his earnest request, accepted his retirement, which will be effective about the middle of Junuary. Resignation is Regretted. *Colonel Norris G. Osborn of New Haven, president of the board, in an interview tomight bearing upon War- den Garner's action, said: “I can say in behalf of all my associates that to a man we regret keenly his resigna- tion, which came to us out of a clear sky. He has acted upon his own initiative entirely and for reasons wholly personal to himself. He felt obliged to insist upon his resignation being accepted. His retirement will bring to an end an era of prison re- form in Connecticut which has been of exceptional achievement, beginning with the administration of former ‘Warden Garvin and continuing with constantly increasing improvement during his own administration. “A special committee of the direc- tors has the task of fllling the vacancy well in hand and feel assured that the prevailing. high standard of manage- ment will be maintained in the-fu- ture.” To Winter in Southern California. ‘Warden. Garner has_announced his intention of spending the remainder of the winter in Southern California. ‘Warden Garner became the head of the .state prison in May, 1911, in suc- cession to Warden Garvin, who retired to private life after a jong period Of service, and who now lives in Cheshire. He had been connected with prison work for many years and for a long period was the deputy of the Michigan City, Ind., prison. Prior to becoming warden at Wethersfield he ‘served as acting warden while Warden Garvin ‘made a trip abroad. Entered Prison as a Guard. ‘Warden Garner entered the Indiana state prison as a wall guard. He made rapid progress in that institution, be- ing successively shop guard, vard of- ficer, saleshouse Kkeeper, storekeeper, and "chief clerk. His promotion to deputy followed and after the death of the warden he was acting warden. - It was said of Mr. Garmer that his stully of, crimjnology and of edmipis- tration Had made him one of the best informed and ‘most proaressive prison efficials in- the United States. He was called: to_Conmecticut ag a man and of- fieer .possessing the traits which made him a worthy successor of Mr. Garvin. At Michigan ‘City. Mr. Garner had en- tertained delegates who had been at the international prison congress in Washington and his institution brought meritorious commendation from the visitors who had recognized the move- ment towards prison reform. Mr. Garner was. born in _Starke county, ‘Ind., and prior to taking up prison work he had been in -business life with his father at Knox, Ind. He is married and a member of several fraternities. NEW AMERICAN DEPARTMENT IN FRENCH GOVERNMENT Formed to Give Direct Attention to Requirements of Americans. Paris, Dec. 20.—(By the Associated Press).” A new American department in the French government, of which Jules Cambon, formerly French am- bassador to the United States. will be the director, has been formed to as- sist Premier Clemenceau in siving di- rect attention to the requirements of the American expeditionary force and to any other American activities in COUNSEL FOR R. A. ASKS FOR DISMISSAL OF PETITION Of William Cummings of New Hamp- shire. for Appointment of Receivers. Boston, Dec. 20—Counsel for the Royal Arcanum, against which two petitions seeking the appeiutment of have been filed, today ask- -in_the federal district a final decree dismiss- petition of William Cummings Hampshire. The court will ve a hearing on the matter January HOW THE RED CROSS DRIVE IS PROGRESSING in New York, New Jersey _and Con- A GERMANY TAKES WA'NE @ |from Cincinnati to New Orleans, early Russia Increasing COSSACKS HEAD OFF FOOD SUP- PLIES FROM SIBERIA TAKE RAILWAY CENTER Grand Duke Nicholas Has Formed a Great Army of Royalists in the Cau- casus Region—No of Fighting in Northern Italy. Cessation The civil warfare in Russia appar- ently Is increasing in intensity. Cos- sacks under General Dutoff are re- ported to have captured Tcheliabinsk, the junction point on the trans-Siber- ian railway 125 miles west of the Si- berian frontier, through which sup- plies from the east for European Rus- sia must pass, and fighting continues in_Odessa, in the Ukraine and around Astrakhan, but with the results un- certain owing to conflicting reports. “The Bolshevik government Is re- ported to have demanded that the cbief governing body in the Ukraine make known immediately whether the Ukrainian_troops will- cease assisting General Kaledines' Cossacks and dis- arminz Bolshevik troops. If the re ply of the Ukrainians is not a favor- able one, it is announced that the Bolshevik government will declare war on them. An unofficial report is to the effect that Grand Duke Nicholas, the former Russian general whose masterful re- treat from the Carpathians and later sudpessful operations -against the Turks in the Caucasus region stamp- ©d him us one of the great command- ers of the war, has formed a great army of Royalists in the Caucasus re- glon. Hard fighting continues between the ITtalians and the Austro-Germans be- tween the Brenta and Piave rivers in northern Italy, but apparently the Italians have been holding their own since the enemy’s thrust on Tuesday | resulted_in the capture of positions | around Monte Asolone. The Italians, | according to the Berlin official com- | munication, have delivered ficrce coun ter-attacks against the sectors in this region in the hands of the Teutons, but have been .repulsed, while the | Rome war office says that several at- tempts by the enemy to advance thei lines on the Tasson Col Del Orso front ! and to cross the Piave river north- cast of Venice were frustrated, Two enemy submarines have been sunk by French torpedo boat destroy- ers off the southern coast of Italy. In the midst of the peace pourparl- ers that are in prosress between the Tepresentatives of the Teutonic al- lies and the Bolshevik government in Russia, the war alms of Great Britain —ana_doubtless - of all her _allies— have beeny concretely set.forth in the house of Gommons by David Lioyd G 3 British- prime minister. “The éte restoration of terri- tory now in the hands of thegenemy and compensation for the havoc thev have wrought is the price that will be demanded for the layine down of arms and the bringing about of peace. Great Britain did not sSeek territor- ial agerandizement for herself or for 2ny of her allies when she entered the war, Mr, Llovd George said, but en- tered into the hostilities merely for the sake of her honor. As to Ger- many’s colonies, all of which are now in the hands of the entente, Mr. Lioyd George said their disposition must be determined at the peace congress. Je- rusalem. however, - the premier de- clared, would never be restored to the Turks! The statement of the prime minis- ter came almost simultaneouslv with a report that the Teutonic allies in- tended to make peace proposals to the entente and that Russia had been- re- quested to take similar steps and was endeavoring to sound her former ai- lies in arms as to their requirements for a cessation of hostilities. = 67 KILLED IN WRECK ON LOUISVILLE & NASHVILLE 40 to 50 Persons Injured, Most of Them Seriously at Shepherdsville, Ky. Shepherdsville, Ky., Dec. 20.—Sixty- seven known dead and 40 to 50 per- sons injured, mest of them seriously, was the toll taken when Louisville and Nashville passenger train No. 7, tonight crashed into the rear of a ‘Bardstown, Louisville and Springfield accommodation train 500 yards south of the station here. ° | The accommodation train had just lcft the station after making a stop, when the faster train, which makes no stop hers, came in sight, moving at a high rate of speed. Efforts to bring it to a halt were futile and the heavy locomotive, with “the weight of a heavy steel train behind it, crashed into the rear of the accommodation with a terrific impact. The two wood- en passenger coaches and baggage car making up the smaller train were th up the up at Louis- physicians removed from the ‘Within a completed Dack to of way, ‘hospitals there. the Four Hundred or More. Buenos Aires, Dec. 20—The Argen hundred or more o between Count the former German | and Condensed Telegrams Fire in the wholesale district of Bal- timore caused $500,000 damage. The Spanish steamer Noviembro was torpedoed without warning. Women conductors were put to work on surface cars in Brooklyn. Fire destroyed the St. Stanislaus’ R. C. church, in Montreal, causing dam- dge of $700,000. For the first time in several months Southern Ohio coal mines had a 100 per cent. car supply The Roumanian government releas- ed 1,800 who were interned since the beginning of the war. Private Scott B. Merrill of the i fantry died of broncho-pneumonia, Gen. Pershing reported. First receipts from the increase first-class postage rates totalled $5, 845,000 for November. “Two Bits Clubs” are being formed in many citieseach member to buy one 25-cent thrift stamp daily. “Camp Sherman, O., authorities an- nounced that ground glass was found ni the 100d of soldiers in training. The fuel administration denied ex- emption from the lightless nights re Qquested by the vaudeville theatres. The War Department will com- mandeer one million gallons of vinegar soon unless present plans are altered. The town of Humboldt, lowa, sus- pended business for the ' day. when Frank Gotch the wrestler was buried. Citizens of Lorraine, France, will erect a monument in honor of the first three American troops killed in France. Fire which started in the K. of C. hall, State and Sixth streets, Columbus, O.. drove 200 soldiers into the street, half clad. Bonuses will be offered the Pacific Coast lumbermen for speeding up the production of spruce airplanes for the United States. Herbert Hoover, food adm announged that 'he approved of the old-fashinoned Christmas dinner ex- cept the mince pie. Edvzrd W. Dickey, the first Chris- tian Science Chaplain to be appointed to the army, has been assigned to Camp Upton, New York. William N. Willcox may resign as chairman of the republican national committee at a meeting of the commit- tee at New York in February. Herman F. W. Babbel, a Salt Lake tailor was arrested and will be in- terned for expressing the wish that Germany might win the war. As a valuable aid in conserving coal the United States Golf Association ap- pealed to golf and country clubs to cloge thejr doors until April 1. As_a reward for the bravery of its troops, Newfoundland has been of- ficially designated as the Dominion of Newfoundland by. Great Britain. According t6 news despatches, the central powers have informed the Russian government that they intend to make peace proposals to the allics. 8ix represgntativae sent to the front by the Food Admimistration returned to Paris and reported that the Amer- ican troops in France are well fed. Major General Hugh L. Scott, U. S. A, who is to be assigned as chief in- struction officer of the new national army, returned vesterday from Europe. Eleven mirers were killed in an ex- plosion at mine No. 3 of the Par Dour Coal and Coke company, Catoosa, near Nemo, Tenn. late Wednesday after- noon. News received at St. John'’s, N. F., report that large quantities of dried fish owned by Newfoundland interests were lost at Oporta, Portugal, in the rioting. Mayor Smith, of Philadelphia, was indicted for contempt of court and conspiracy to violate a law which for- bids city employes from participating in politics. J The Swss newspapers express grat- itude to the President of the United States and the American government for the new commercial treaty with that country. First Lieutenant Samuel Miller of the Medica! Officers’ Reserve corps, attached to the British forces, has been slightly wounded in action, General Pershing reported last night. General Loman, known as the hero of Liege, was expecic? to arrive in Switzerland _yesterdar the German government finally agreeing to his in- ternment, but he was re-arrested on the frontier. A critical fuel -ituation in New Eng- land was pictured to the fuel admin- istration at Washinston yesterday by 3. J. Storrowv, fuel administrator for ew Encland. and Governor McCall of Massachusetts. The naval gunners of a vessel arriv- ing at an ‘Atlantic port yesterday fired at what appeared to be the periscope of a submarine the day after leaving port and scored a hit which is believed to have sunk the German boat. Major General William A. Mann, who commanded the celebrated Rain- bow _division. which took national g en from many states in the union to the battleflelds of France, has ‘been relieved because of physical in- =bility to stand field duty. TROUBLES OF TRANSPORTATION SYSTEM IN SPAIN hants of Madrid Have Threat- ened to Suspend Business. Matirid, Tuesday, Déc. 18.—The mer- cantile and industrial union, repre- ‘held d af- S s e e i §'§5 i 1 i i today published fifty-|senting the country’s commercial in-|Peny was made necessary by the fact REVELATIONS AT THE ' STOCKYARDS PROBE o i ————— Federal Trade Commission Secures Startling Revela tions of Meat Packing Industry at Opening Session of Hearing PLANNED MILLIONS IN “ PICKINGS” AND REBATE Disclosures Made of High Finance, Dummy Officers and Sha Trustees—Frank R. Pegram, “Treasurer” of the Chicag Stock Yards Company, Receives Salary of $2,500 a ¥ 2 —Admits He Knows None of the Other Officers— George F. Doherty, Its President, Was Said to be a Clerk —Common Stockholders of Junction Railways W Asked to Surrender Their Stock and Receive Therefore 2 Guarantee of 9 Per Cent. Dividends, When There Was More Than ‘$3,000,000 Surplus on a Common Stock o $6,500,000—It is Proposed to Show That Later the $3,000,000 Surplus Was Paid Out in Dividends Af the New Company Had Gained Control. Washington, Dec. 20.—From the se- | to influence Armour to rema clusion of corporation records, the | cago federal trade commission today drew | The commission ensational disclosures of hish finance, [by letters from dummy officers and sham irustees in | company, brokers, its efforts to determine the ownership {new company was simpl of the Chicago stock yards an athe |keeping the backers terminal railroad facilities at the big |ing them dividend vacking plants there. | pany’s stock instead s Control Meat Food of 100,000,000 |rebates which were ot Establishment of ownership of the |®Ta] 1981slation. stock vards is_ only the first of the |, ‘It 1s mercly the ol fasks before the commission, whic. |in Which they plans to continue its investation in- [ [1o7 Sab to every branch of the country’s meat | fiviqe 1o supply and tre alleged control of the |diyidends” . meat food of 100,000,000 people by five | Hency aito en Drincipal groups of packers. The com- | Wiinesses that o mission’s ‘report will be made the |%r of hasis for recommendations that addi- | “0&Y tional legislation be emacted to rem- |move: He admitted be edy the situation, it found necessary, | KNSV, nothing of the amount ¢ and any evidence of law-breaking wil | BVestments in Chicas it be turned over to the department o |9 MOVIng i “How Much W Legal Method for ings. “How ) Organization of the Chicago Stock [declared in one letter Yards Company, under the laws of |dominant auestion evers Maine, alleged to have been for the |Packers and stockvard purpose of broviding a legal method |10 @ renewal of lease for the payment of millions in “pick- | tae letter said, renew TnEs or ohates to, the packing piants | Junction. Iailways "o by the Chicago Junction Railwaysand 1 bonds. In 1391 when Union Stock Yards Company, of New Jersey, occupied Francis J. Hene special counsel, and the witn, 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 Compan which was organized by Prince, and turmed it over to the stock vards company. Sponsors for the Plan. The late Richard Olney and various prominent _citizens ‘of New Eng- land appeared 1in today's tes- timony as sponsors for the plan of bsorbing the money-making Junction Railways company Dy the new cor- 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 Chase National Bank of New York, formerly president of a bank in Bos- ton, testified of their activities as members of Mr. Olney’s organization committee, which induced holders of 60,000 shares of the New Jersey com- mon stock, to surrender their stock and their ¥ight to more than $3.000, 000 surplus and accept in return a guaranteed nine per cent. from the new company. Scheme to Hide Resl Ownership. “The whole plan was an entirely transparent proposition,” Mr. Heney toid the commission, “to hide the real ownership and. conceal the fact that Armour and other big packers had an interest in the vards. Woven through the festimony of millions_controlled by bank presidents and_packers was the name of Erank R. Pegram, a retiring witness, for a quarter century a bookkeeper and cashier for F. H, Prince and Company of Boston. According to the certified minates of the Chicago Stock,Yards company’s first meeting, Pegram con- trolled the assets . of ~the Junction Railwavs stockhoMers to the new plan and was given $8.000,000 in Chi- cago Stock Yards common stock and $1,000,000 in_ecash. “My salary is $2,500 a vear” Pe- gram testified in reply to questions. “No, sir. I never had a million dol- lars. I knew nothing of the asree- 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 figurcheads, 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- E gered. Hart ana Thayer declared organiza- tion of the Chicago Stock Yards com- ot B bonds or He 3 You Pay Us much will you i Ina, tr nilw o lgave Morris, S |Heney s other - ;: to’ a resumption tween com: ides. which hag not in 1910 when a test whether or not the was subject to the merce commission w: commerce court Mr. Heney said he n to show that anticip decision, Prince dev forming the new stockyards co to legalize the packers' rek hide their control of the yary Common Stockholders Asked to render. Holders of the common stock o Junction railways were asked to,e render their stock to the new co: and receive therefor a per cent. dividends, or 32 for each $100 in stock, tI ing 5 per cent. interes being 10 per cent.' Up the Junction Railwas paid 'S per cent. regul more than $3,000,000 surplus on a mon_stock of $6,500,000. considered the transfer and Thayer said they the likelihood of los: sustained if the packers should Ownership of Stock in Doub! The original plan, according Heney, was to give $4.400,000 stockyards company stock to Swift and Morris, but the of this stock remains to be led. Pegram said he was tr 79,990 of the 80,000 shares of 1 never got any dividends, ho believed that the majority of 64,000 shares, was held by } Mrs. Prince. Something mo: 15,000 shares had been split up & at’ Prince’s order and was owne west,” he believed in Chicago. Tr the ownership of this block will be a task for subsequen ings. $3,000,000 Surplus Paid Out dends. Control of the Junction stock was not obtained witho culty. ~Many stockholders p that a “melon” was to be cut. Her announced today that he propose show that the $3,000,000 surpl paid out in dividends after company had gained contro; concern which accumulated th He ‘leo ‘declared the commissio: in- possession of a-letter from Prince to Armour suggesting that w had sufficient stock, they could o the remainder by ‘depressing the ket through curtailing Junction’s earx ings. . All of the stock was except three shares, though corporation had to pay block of 50 shareg and $300 a another emall lot. = Earnings New Jersey company over the gu teed dividend now go to the C Stockyards company. The Kansas City stockyards was that the packers were _considering only other cattle market broug: Thayer, City stated, it was said that the New Eng- land stockholders of the Chicago Junction Railways and Unlon Stock Yards company found themselves out ch with their clients and likely ‘with their investment on and no business. Aocord- the new stock yards company formed under the laws or Maine the testimony today. Dresident of the Kansas yards company, said he than 100 shares of stock ed as the ow of more an shares, which he had endorsed to ¥ ris, & ‘compan: Mr. Heney sald the packers trolled every stockyard in the coun try, but had comcealed, the owner: by stock tramsfers... fy °