Hutchinson gazette. [volume] (Hutchinson, Kan.) 1895-1902, 1897-06-17
RAE STOCK YARDS CASE.

THE STOCK YARDS CASE.
Just at present the aspect of the
case of the Kansas City Stock Yards
Company in the United States district
court to knock out the new stock yards
law, is very promising for the people.
The stock yards company through its
attorneys. Of which republican ex-
Chief Justice Horton is the principal,
attacked the bill on the ground that it
was not properly passed, that it was
not constitutional, that the business
was interstate and not subject to
state control, and that the rates fixed
by law were too low and amounted to
cOn6scatiOn. Judge Foster promptly
decided every point against the COM
pany except the last. Upon this point
he decided to take evidence and ap-
pointed Judge George Clark as master
to take testimony. Attorney General
Boyle on going to work found the pub
lie sentiment in Kansas City against
him. He could not get competent men
who would testify as to the value OF
land in that vicinity, or any other as
sistanCe from them. But with great
diligence and determination he has
opened up the inside work Of the com.
pany and caused such q reversal of
opinion that the community seems In
clined to come to his help.
The company claims that S7,9e8, $50
is invested and that it only yielded
dividend last year of $50 per cent.
Under the new law they claim that
this would be reduced to 1926 per cent.
But Judge Foster MADE an order that
Mr.. Boyle, the state accountant and
the expert employed by the State,
should have access to the books of the
company, and they seem to have proved
very clearly that $4,000 is all the
outside money that was actually ever
paid into the company for stock. This
was when the company opened up bus
mess. The rest was paid out of the
profits of the business which, accord
ing to the testimony of the corporation
was sometimes as high as
thirty-live per cent in the early history
of the Company. These profits, in
stead Of being drawn out, were in
vested in lands and improvements and
new stock Issued for it. But this is
not all. Expert accountant Stages
testimony shows that only sS17 400 had |
ever been paid In cash at all. All the
balance of the S7,36S, $50 of stock upon
which dividends have been declared |
was pure water. Some Of 1t was is.
sued pro rata to the stock holders with
put consideration. Some of 1t was
to be based upon the increase
IN the values of their lands and the
values were fixed as high as $4,000 !
per acre, the same lands being in the
testimony now being taken, appraised
Dy local experts at from 1927 900 to S37,-
700 per acre. The officials admit these
but attempt to account
Tor them in one way and another. But
n order to figure out their 81 1868 $50
they have to include two
million for good will" in all their
1t has developed in the investigation
.hata large part of the books and the
treasury of the company are in Boston.
This is no violation of their charter
and General Boyle will commence suit
20 compel the company to return their
a hole business to this State. The
stock yards company has bad very
loft snap for many years but from the
Appearances now they will be com.
pelled, thanks to a pOpulist admins
ration, to relinquish their wholesale
robbery or at least do 1t on smaller
scale.