The Goodland republic. [volume] (Goodland, Kan.) 1891-1907, 1897-06-18

for this great move they doubled the
capital stock by simply issuing another
share of stock to the holder of a share,
and by holding out II acres of land for
future manipulation. In 1887 they is
sued sl.515.00O in stock on 're-vaiua-
ton" of property and sold s535,OOO of |
stock. Issuing pro rata to the holders
without consideration. In 1894 they
took MIR. Armour into the deal in a
aeasb" transaction in which they sold
him g half million in stock, gave him
$4,000 to pay for it with and secured
his beef plant. Then followed other
similar transactions until round mil
lion had been added to its stock. Col.
Morse was forced to admit that all Of
this stock was issued without consid-
Grafton.
The investigation Of the state &C
countant and W. J. Stage, the Kansas
expert accountant, into the books
showed some Ysay peculiar things.
Mr.. stagg was put on the stand and
his testimony showed that the origi-
nal capitalization was only 100000,
but only $4,000 was ever sold, and that
during the twenty-five years following,
that only s817, 400 had been paid in
cash, including the original $4,000
| Not only this, but it was shown from
/ the books that the balances due the
stockholders 10 cash was at each and
every time of increase more than
| enough to pay the cash alleged to have
been paid, SO that actually the original
investment of $4,000 covered every
dollar that was necessary for the stock
holders to raise in money,
| One great contention, and, of course
the only valid one raised in this case
is. that the business of 1896 only per
mitted a dividend Of 5,82 per cent, anC
that the reduced rates would cut thai
to 2.25. The figures submitted by Mr.
Stage show that in June, 1896, th'
Stock Yards company declared stool
dividend of 6.25 per cent, and that tbt
cash dividend of the year was compu
ted on the increased capital stock
The actual earnings distributed in l89
we're in excess of 10 per cent. on tn
capital stock of January l, 1896, insteat
of 585 per cent as claimed by the com
pany. He made further computation
showing that the reduced rates wOnl
pay a dividend of 5l6 on the capitaliz
alton Of 7,368,65O, or 1924 per cent o.
the sum of s3,1O8,483, which is fai
and equitable value for the whole stoC
: yards property.
In every calculation made by til
t officers of the yards they are compel
ed to add 100000 of "good will"
3 the inventory in order to show wheI
4 their s7,36S,65O comes in. They est
= mate the property to be worth $1,000
t 600, but this is on the basis of beir
let alone and permitted to fix chargt
It which will pay interest on that amour
9 The state is contending that the
} yards are quasi public, and except fl
10 stock yards purposes the property
n not worth one-third that sum, and th
1t the company has no right to tax Il
D. public such an outrageous sum wit
le out its consent.
30 There is a difference of opinion e
Of pressed by experts as to the value
land and improvements. The compar
at averages its lands at about $3.50
p an acre, but the witnesses for the sta
al do not seem to think they are worth
much. Lands listed by the compa
n at s56,OOOO were appraised by local {
To, perts at from s27, GOO to S37, 900 per &C
he $4,000 lands were reduced from
n 900 TO $4,000; $4,000 lands we're put
at $4,000, etc.; while responsible m
as offered to duplicate the improvement
IN for thousands Of dollars less than til
ut are carried at.
IN 1t has developed in the Investigate
ip- that part of the books are kept in B
ds ton, and that the treasury Of the &C
mt pany is in that city, where dividel
Or are paid and all transactions relat
.sh to dividends and the sale and trans
les of capital stock are cOnsumated. T
IN. is in direct violation Of the law uu
he which the company is chartered, I
ok Attorney General Boyle will CONNIE
to proceedings to compel all offices
b: the company to be kept in Kansas,
UNI all business to be transacted b.
n M Tho oOv.pcuv v,,.v7 soov,oT.,Io - n