The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1897-10-04
KANSAS WINS.
In the Fight Against the Kan
sas City StOckyards.
Judge Foster Refuses to Grant
an Injunction
TO THE STOCKYARD co
Setting Aside the Operation of
the New Law
For Another Time Injunction
Used Against a Corporation.

The state of Kansas won in the fight
of the Kansas City Stocl1y ards com
pany in the United States circuit court
tn s morning. At 10 o'clock Judge FOs-
ter handed down a decision deny ing the
injunction asked by the company and
revoking the temporary restraining or
der
The decision sets the brand of consti-
tutionality on the law regulating charg-
es at the Kansas City StOckyaTds which
was passed by the last legislature.
w hen the injunction suit was brought
by two of the stockholders Of the stock
ground that the law was unconstitu-
uonal for the reasons that it was
claimed that it had not been passed
regularity, that the business of the
company was interstate commerce and
could not be regulated by a state leg
lSlature, and the schedule of charges
was unreasonable and unjust. Judge
Foster holds the claims of the stock
holders in error on all of the three
points
TIE decision is of considerable length
and contains review Of the case and
detailed statement of the manner in
which the opinions on the three points
involved We're arrived at. In reference
to the nrSt question, as to whether the
bill regulating the StOckyardS charges
was regularity passed by the Kansas
legislature, the contention of the stock
imperfect because the substitute had
different title from that expressed in
the original bill, Judge Foster decided
that the journals OF both houses men
toned the substitute and that the law
was therefore regularly passed.
Ihe second contention that the buSi-
ness of the stOckyards company was in
terState IN character and could be reg
ulated only by congress and was be
yOnd the power of the state to control
was discussed at great length in the
f7al L
decisions quoted and arguments offered
Judge Foster said:
From the best consideration I have
been able to give this subject reason
ing from analogy and applying princi-
pies announced in decided cases, I am
of the opinion that the stockyards com
pany. performing duties for a mixed
traffic, interstate and local. is such an
incident to commerce as may be re-
stricted in its charges by acts of the
legislature in the absence of congress
sional action.
In arriving at the decision that the
charges fixed in the bill passed by the
Kansas legislature are not unrea SON
a le and unjust, Judge Foster says:
The master has applied the rates
| fixed by the statute in controversy to
the business of the company for last
year. and finds that the net income
would have been reduced $500 ,651.70.
| The property produced a gross income
of $1.023 S10.20; deducting the operating
expenses, S335531.10 and $15,400 for
ma ntenance and repairs ($410. .937 lowe
have net earnings of S612, ,933. 10 Under
the statute it would be reduced $780,
651- 20, leaving q net income of 1912, ,4S1.-
40. a percentage of 4 24-100 on the stock
at par, and 67-1O0 on the value of the
! liant as found by the master, with
he addition above noted. CThe addi-
ton is the property owned by the COM
pany exclusive of Kansas City amount
ing to $1,000. If we accept the latter
valuation. the returns on the invest
ment seem to be fair and reasonable; if
we take the property at it's stock value,
it is a closer question A cut Of $780,
65170 on a net income of $612. .933.10 is
radical legislatiOn,-it may be too radi-
cal. The largest reduction is on cattle,
the former charge being 25 cents per
head, and under the law - cents is al
lowed. The other reductions are not
so great and the prices fixed for feed
are liberal 1t is a matter of common
knowledge that a great deal of money
during the last decade has sought in
vestment in government bonds and
other high class securities at interest
as low as 4 per cent per annum. The
answer to this argument IS evident; 1t
is not the case of money invested in
! business with the risks and uncertain
ties Of trade. There are other matters
worthy of nsideratiOn.
IN 1898 the company increased its
rate on cattle from 20 to % cents per
head In view of the large earnings
of the company at that time, and the
amount of cash actually invested, it is
difficult to conceive any good reason for
this increase. There is about a mill
lion QOIiaIS OF property owned Dy the
company which is not connected with
the yards. or used for stOckyardS pur-
poses. 1t appears from the report of
the master that the total taxes paid
| by the company, both in Kansas and
! Missouri in 1886 were $22, ,671. %. Besides.
! it does not always follow that de-
crease in rates results in a correspond
| ing decrease in net earnings General
| ~. business under the stimulus of re
| duced rates, increases in volume. 1
| have but little in the way of precedent
| to guide my judgment in this matter.
while this question is not entirely
free from doubt, I am not willing to
| say that the percentage of profit which
! will be realized upon this property un-
| der either of the valuations above re-
| ferred TO is so unfair and unjust as to
| make the law constitutional
The application for temporary in
! junction is denied, and the temporary
! restraining order revoked"
! Immediately after Judge Foster fin
! ished reading the decision, Judge HOr
ton, as attorney for the stockholders of
/ the stock yards company, asked ten
/ DAYS time in which to make proper
| appeal to the United States circuit
court of appeals. Attorney General
/ BOYLE objected to the limit OF time and
| Judge Foster asked if five days would
! be sufficient. This limit Judge Horton
| agreed to.
| Attorney General Boyle then asked
! the court to instruct the attOr~e eys for
/ the stockholders to give him proper no
tice of the time of their appeal and the
| place where it would be made, stating
that he wanted to be on the grOuD d.
! Judge Horton replied that he did not
/ know when the appeal would be made
! or where it would be made, but Attor-
| ney-General Boyle insisted that the
! court so instruct the attorneys stating