The Kinsley graphic. [volume] (Kinsley, Kan.) 1890-1940, 1891-03-27
LIVE STOCK FsXCHANGE-.-THEI Il e.
LATIONf To PkODUCEIES.

i desire 10 make = statement or Lfls5
cause and status of the fight between
the Americon Live Stock Commission
Co. a:d the live stock exchanges:
The yaUjous live stock exchanges in
the different markets are organizations
IF the commission men selling stock
They have induced the buyers, also. to
join their organization. The purpose |
of these exchanges, as set forth in 1
their constitution, is Not for-pecuni- |
AIRY profit OF gain, nor for the transac- |
tiOn ofsbisineSs, but to promote and |
protect all interests connected with. tile
II lying aHd selling of live stock at the
market, ana to promulgate and en-
force amongst it's members high moral
principles in the transaction of tusi-
ness. This certainly reads well. 1t
is large promise. Let US see about
their performance.
The American Live Stock Commits
sion c.. was organized for the purpose
of economically selling the stock of its
members upon the cooperative plan,
the net profits being divided at the enI
of the year in proportion to business
done and capital invested in the com
pany. Its equitable plan and econom-
ical methods commended it to the pro-
duceEs of stock and it's business grew
to5mmense proportions. It's dividends
were a surprise tO'all, and thornin the
| flesh to the commission men. For two
years it Was allowed to do business in
! the various markets, then the ex-
changes suddenly learned that the
American WAS violating rule of the
exchange Tor they said it was) in max
| ing their dividend, and it was suspen-
ded or expelled from the various ex=
changes, beginning at Chicago and
ending at Kansas City. The AmerI-
can claimed that it was violating no
rules, that it openly proclaimed it's
business plan, and that it had ii right
to make dividend in proportion. to
the business and capital furnished,
which is certainly Il more equitable
plan than the one practiced by other
companies-of II dividend in proper
tion to capital furnished only.
But the edict of the exchanges had
Igone forth and the American must go,
the real REASON being, the commission
men forming the exchanges were
alarmed at the volume of business the
American WAS doing and they were re-
solved that the producers should have
no share in the profit of marketing
their stock.
At some of the markets the Ameri-
can was expelled for AN assumed vio-
lation Of rule nine, which fixes mini
mum commissions. At St. Louis the
exchange amended its rules so as to
forbid dividends. Upon that we " ere
expelled there.
!. AK. @. wewere charged with dis
gracing the exchange, - &c, &c, and
We \. ere duly expelled, altho' We had
no membership, but were doing bust
/ ness under the membership of Oul
! president, who is still member of thC
Kansas City Exchange. The fact is
the * c. Live Stock Exchange is de
X termined that the producers shall get
nothing back from the profits of ,h,
4 business of marketing their stock, anC
in spite of their professeI high mora
purpose, it seems it viii resort to al
most any means to accomplish its pur
pose.
= word about the organization anC
purposes OF live stock exchanges: Th'
principal membership are the commits
sion men and they control and direc
its policy. The packers also belsng q
the exchange. One Of the rules is tia
each member is forbidden to do busi
ness with an expelled member. In
medIately upon tile expulsion of tn
: American the packers were nOtihe
{ not to buy of US, and they Observe
the order. I sent a circular letter [
about 900 of our members and csls
toners. Following is q copy OF tn
letter and the elaborate pUeambIes Al
< resolution it called forth from tie e,