The Goodland republic. [volume] (Goodland, Kan.) 1891-1907, 1897-06-18
rEptls a. sHRsCRIPTION.
THP aTnnK YARDS CASE.

for transmission through the mails, as second !
class mail matter
TIE STOCK YARDS CASE.
When the legislature passed the Law
regulating stock yards it was snticipa-
ted that the Kansas City Stock Yards
company would object, for the reason
that it had strong pressure at Tope-
ka all winter to prevent legislation.
When the time came for the law to 90
into effect one of the Boston stock
holders asked an injunction in the
United States district court to restrain
the officers of the company and the
Attorney General of Kansas from put
ting the legal rates in force at the
Kansas City yards. Several reasons
Why the Injunction should be made
we're set up. 1t was claimed that the
law was not properly passed; that the
business Of the corporation was inter
state and not subject to state control;
that the act was unconstitutional; and
that the fixed rates of the new law
would not permit fair interest on the
investment made, resulting in prac-
ticai conhscatiOn of the property Of
the stockholders. Upon the hearing
Judge Foster decided every point
against the petitioner except the one
of remuneration under the new rates,
and upon that point he decided to take
testimony, appointing Judge George
W. Clark as master to conduct the in
quiFy.
Attorney General Boyle commenced
the fight seriously handicapped. When
he went to Kansas City to work up the
case he found sentiment among busi-
ness men almost unanimous that the
stock yards we're being imposed upon.
and not a man was willing to go on the
stand and testify as to the value of real
or other property owned by the COM
pany. A less persistent man would have
abandoned the case in advance. He
had not any money to use in the
work Of securing testimony, so he went
to work personally and dug out the
vast mass Of evidence that has so com
pletely overturned the stock yards con
tention that the public sentiment a
the mouth of the Kaw has been reyers
cd, and for the first time the people,
there realize what an octopus has beer
grasping with its tentacles and suck
ing the life-blood out of the gFea
country tributary TO Kansas City.
The claim of the company is, tina
s7,368,65O has been invested for th
purpose Of carrying on the great live
stock business which comes to th
yards, and the business of last yea
only paid dividend of 5.82 per Ger
under the old rate, while the rates pr
vided in the new law would reduce th
dividends to 2.25 per cent, margin 6
small as to amount to eonfscation
large part of the capital stock.
The contention of the state is, th
the stock has been watered, the pro
erty excessively valued, and the actu
profits Of the business concealed.
The testimony of General Superb
tendent Morse was the most elaborat
and was the strongest in support of Il
petitioner. Under a careful cross exsI
nation, however, he admitted tn
there had never been any such sum
81 $3.50 invested in the yards, and
fact that only s2,619,134 had been p
in in cash, and that the balance was
"stock dividends" and stock issued U
on an increase of the value of Ian
owned by the company. This stateme
was later proved to be far from G.
rect, and based upon technical "ca
investments" which we're really issu
OF stock without any considerable
He submitted a statement of
growth and development of the ste
yards from date of purchase in 1872
the present time, which is as soIlows