Kansas City journal. [volume] (Kansas City, Mo.) 1897-1928, 1897-09-23
HITS OTHER BODIES.
POSSIBLE EFFECT OF THE LIVE
STOCK EXCHANGE DECISION.
SOME WASHINGTON OPINIONS.
ALL COMMERCIAL ORGANIZATIONS
MAY BE CLOSED AS TRUSTS.
Similar Case Pending Against the
Omaha Live Stock Exchange
Ex-Secretary of the Navy
Herbert Criticiscs
the Decision.
SOME WASHINGTON OPINIONS.

Washington Sept. 22.-Judge Fosters de-
cision in the United States district court at
Topeka, in which he held that the Kansas
City Live Stock exchange was trust, or
ganized in violation of the Sherman anti
trust law, may result in closing all the
live stock, grain and produce exchanges of
the country.
The decision. if 1t is upheld by the SUI
preme court of the United States, to which
it will be appealed, will be of the utmost
Importance for it will class all exchanges
which are organized on the same line as
the Kansas City institution as unlawful
combinations in restraint of commerce.
Attorneys here are uncertain as to the
scope of the decision, for the reason that
there may have been some popularity
about the organization and methods of the
Kansas City Live Stock exchange which
does not apply to other exchanges. AS it
is understood here, however, this exchange
is similar to others in which live stock.
grain, cotton, farm produce and petroleum
are dealt in, and If the supreme court of
the United States should uphold Judge
Fosters decision these institutions would
have to close their doors or change their
organizations and methods
Case Long Pending.
Assistant Attorney General Boyd. who is
the official of the department OF justice
under whom these cases come, said to-
night he was not entirely familiar with this
case, as 1t was one which the district at
torney for the Topeka district had been
authorized to bring during the last admin
istration, and it was in progress when he
entered the department of justice. He said
however that the contention of the govern
ment was that this exchange was In VIOLA
tion of the antitrust law, for the reason
that it undertook to control the market
for live stock at Kansas City. 1t bound
all its members to buy through the eX-
membership it restricted the market of the
sellers to the exchange. 1t thus acquiring
power to fix prices and prevent competi-
ton.
Mr. Boyd added that he was not sufTi-
GENTLY familiar with the details of the or
ganiZation of exchanges to say whether
the decision would apply to all institutions
of this kind, or whether there was some
peculiarity about the Kansas City Live
Stock exchange which made it apply only
to it. lie said there was case of a SINH
lar nature pending against the Omaha
Live Stock exchange. d.
Judge Foster Criticised.
Speaking Of Judge Fosters decision.
former Secretary of the Navy Hilary A.
Herbert said tonight:
Il should say that Judge Foster, in de-
Gliding the question as to whether or not
the Kansas City Live Stock Association
was legal under the provisions of the anti.
trust law, seems to have gone somewhat
out of his way to attack boards of trade.
1t may very well be that his decision on
the facts of that case is correct, and that
this antitrust law does forbid such a
monopoly as was established by that or
ganiZation But 1t does not appear that
boards of trade, as they are usually con-
stituted, have anything to do with such
nonopolies.
There are really no other organizations
In this country that have done more to
/ promote fair and honest commerce than
! boards of trade as they are ordinarily con-
stituted. They generally represent differ
ent and divergent interests, and their pur-
pose is cooperation in the interests of the
city or the section to which they belong.
They have done very much in the past,
as understand it. to secure fair and hon
est methods in trade and to promote a high
sretted that a judge should allow. Judge
Foster appears to have done carelessly, an
expression to get into his opinion that has
q tendency to create prejudice against
these boards.
Called Unfair to Boards of Trade.
Joseph K. McCammon, assistant attor-
ney general for the department of the in
terror during the Arthur administration,
also criticised that portion of Judge Fos-
ter's opinion relating to boards of trade.
'It seems to me-" he said, that Judge
! Foster went out of his way in expressing
/ himself with regard to matters which We're
! not before him. refer particularly to his
statements referring to. boards of trade.
/ His opinion is an attack upon the whole
| system of such boards.
Il cannot give an opinion upon the decis-
| ion which Judge Foster rendered, for the
! reason that l always take it for granted
/ that a judge. having better understand
! ing of the facts of u case before him. has
rendered a correct Judgment. In any event
! the question will be finally settled in the
/ supreme court of the United States as un-
| doubtedly an appeal will be taken by the
many interests affected by the decision