The Red Cloud chief., 1897-09-24
THE ANTITRUST LAW
KANSAS CITY LIVE STOCK
EXCHANGE HIT.
United states Judge Foster Hands Down
q sweeping and Far Reaching Opinion
The Business OF the Exchange Held
to be Subject TO Control of Congress.

Live Stock Exchange was In violation
OF the Sherman antitrust law and de.
clared that the prayer Of the petitioner
that the exchange be dissolved and
enjoined from enforcing its bylaws
ought to be granted, but the order
has not yet been issued. The case
was one brought by the United states
district attorney nearly a year ago.
when Greer, Mills & Co. we're driven
out of the exchange.
After reciting the facts In the case
as brought out by the testimony, in a
statement of 5000 words Judge Foster
gave an opinion almost as long. BY
All odd coincidence. almost every i'm.
portant case cited ia the stock yards
ease which was heard here last week
was referred to in this case and men.
toned In the opinion.
The court calls attention TO the fact
That the defendant association denies
the existence OF a combine. Discuss.
ing this point he says:
"All parties now engaged in the
business are members of the exchange
except Greer. Mills & Co., who are
making a fight in the courts to main.
/ ain their business, and are tempo.
rarily protected by injunction. II at
pears from the testimony that any
person or partnership attempting to
carry on business independent Of the
association is invited to apply for
membership, and IL he fails to do so.
or If rejected. he attempts to proceed,
his name is written on a blackboard
kept for public use in the Exchange
buildings, and all members are warned
against dealing with him. This
admonition is strictly obeyed and
such person is ~boycotted. The out.
come is inevitable; the combined
opposition OF 500 men against one
can produce but one result Almost
every purchaser Or vendor Of live
stock, including the great packing
houses, does business through COM.
mission merchants, and nearly the en-.
tire volume OF live stock received at
the yards is consigned to and con.
trolled by these merchants, members
OF the e%xchrnge. In vain does the out.
side dealer offer attractive bargains
for the sale or purchase Of stock; they
will have no intercourse with him.
This state Of affairs Is known and cir.
eulated among stock growers and
shippers, and they dare not ship their
to this ~boycotted broker or firm.
These facts are established and ampli.
fed BY a multitude Of witnesses.
CLEARLY A MONOPOLY.
The ultimate purpose Of the cx.
change Is written across its face,
where all can read; it Is to control
and inonopolize the entire business of
buying and selling live stock at the
Kansas City stock yards. Ii is clearly
a combination to restrict. control and
monopolizc that class OF trade and
commerce. The defendants declare
that the rules, regulations and prices
for doing the business are all reason
able and fair and for the best interests
of buyer and seller. Probably
that Is so, although 1t is lot
apparent, looking at the interests
OF the stock grower or purchaser,
why the number of solicitors Of bust.
ness should be limited to three for
each firm, or why there should be q
restriction on telcgraphic information
as to the state of the market, or why
he should be compelled to pay a COM
mission OF fifty cents q head on cattle
when he paid twenty-five cents before
the exchange was organized, or why
there should be discriminating charges
OH stock from different localities.
Counsel for the defendants have,
with commendable zeal and industry,
submitted for u consideration the
rules OF a great NAM exchanges and
boards OF trade throughout the cities
OF the United States dealing in corpo-
rate stocks, grains, live stock and
various other things, and contend that
they are essential, IL not indispensa-
BILE, to the in and business in
terests OF the country and that to
grant the prayer of this bill would be
the death blow Of these institutions.
Courts cannot shut their eyes to the
results OF their judicial conclusions,
but how far ssch results should CON
troll those conclusions depends on
" nv hSttoodIJ W
discuss here; nor would il be proper to
consider here what effect this act of
Congress may have on these organiza.
tions or any of them.
BAD EFFECTS OF EXCHANGES.
II may be permitted to say, how.
ever, that the methods and aims Of
many Of these exchanges and boards
OF trade are not altogether beneficial
to the business and of the
country. That they are beneficial to
the members and perhaps to the To-
cality may be admitted. II must also
be admitted that a properly conducted
agency or medium through which the
vendor and vendee may readily sell
and buy everything that enters into
commerce or trade is demanded by
the business interests of the. whole
country; but this agency should not be
permitted to tnmper with or in any
way restrain the natural flow OF the
stream Of industry or commerce.
1 he crying complaint of to-day and