The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1891-12-20
THE STOCK YARDS WAR.
The Fight Agaiass the Chicago Combine
Renewed in the Courts

CHICAGO, Dec. 19-News has been re-
| ceived here that the supreme court of New
Jersey has rendered decision sustaining
| the action of the directors of the United
! States Stock Yards company Of this city in
| granting certain concessions to the big
| packers, Armour, Swift and Morris, in re-
! turn for which the latter agree tc remain
! where they are, instead of moving to Toll
| lesion. The decision WAS received with
much satisfaction by those interested, as
the result of the suit settles for once and
| all the controversy between the stock
| yards com pany and the large packers. The
| big packers will now take an active part in
the management OF the stock yards aud be
represented on the new board of directors
| TO be elected at the next annual meeting.
NEW YORK, Dec. l9.-Tha Chicago
Junction Railway and Union Stock Yards
company was organized in 1890. under the
laws of New Jersey, having a capital stock
and outstanding mortgage bonds aggre-
eating SIS, 00O, 600 One of its latest ven
lures was The purchase of 80, 600 shares of
the stock of the Union Stock Yards and
Transit comDany of Chicago, aggregating
SIS, 600, 600, par value. Since its formation
the company has been IN peck of trouble
The public subscribed sparingly and, in
consequence, the underwriters were load
ed with more than 80 per cent. ofthe secur-
tiles Armour, Swift & Morris, known as
the Big Three" were heavy holders in
the Chicago company. No sooner was the
New Jersey company an accomplished
fact than the big Three" being no longer
interested in the dividends of the Chicago
company as stockholders, awoke to the
fact that they were paying the Chicago
company excessive yardage rates and rail-
way tolls
In consequence they bought 1000 acres
of land st TolleStOn, which Is said To have
a IrA-lv la Ia
for stock-yards purposes. Next the Big
Three purchased three acres coutingeous
TO their packing houses in Chicago, and,
shortly after filed suits in the circuit
court 10 compel the Chicago company to
permit the delivery over its tracks to the
Big Three's" live stock consigned to
them, without the same being handed by
the Chicago company, with a view OF
avoiding the payment of yardage and
other charges.
The New Jersey company, with its S23.-
900, 600 in liabilities, now found itself in
danger of losing the Big Three's' bus
mess, or dividing with them part of its
income. The latter course was pursued
and contract was made, by which the
Big Three" decided to the Chicago COM
pany the three acres at the stock-yards,
alleged to be worth $50, 600, and 200 OF the
4 900 acres at Gollestou and dismissed their
three suits and continued their bushes at
the old yards. For this the New jersey
company agreed to pay So, 700, 600
No sooner was the agreement made than
John Reeves Ellermau of London, q stock
holder IN the New Jersey company, filed
bill against the New jersey company and
the Big Three" presumably for the pur-
pose of having the contract declared il
legal AS soon as this suit was decided IN
favor of the legality of the contract yester
day. fourteen new suits were Instituted.
These cases were begun today-some in
the United States courts, and some IN the
chancery courts of New Jersey. An appli-
cation for an order to prevent the Carry
ing out of the contract for the payment OF
the So 600 600 was made. and Chancellor
NJ. G. Gill OF New Jersey this morning en-
Joined the parties from the contract.
The new suits make startling allega-
tions, aud promise TO develop revelations
in the administration of New Jersey JUS
tice. The bills allege that one of the suits
was collusiYe, and that il was filed by one
in close business relations with London
contract corporation. and that il was
brought, though ostensibly for the purpose
OF having the contract declared Illegal,
vet, in reality, TO have it sustained and
pronounced valid. The s. 0O0, 600 contract
Is now alleged to have been a mere Illegal
device TO create a prohibited Giscrimina-
ton contrary to the statutes OF Illinois,
New Jersey and the United States. Tbs
New Jersey company Is vigorously at
tackled, as being trust and a mbinatiOn
and an unlawful corporate entity organ
lied to deal in the stock OF another COM
uany, a practice frowned by the trust de-
cisions of the different courts.