The Kimball graphic. (Kimball, Brule County, Dakota [S.D.]) 1883-1905, 1897-10-02
SENSATIONAL DECISION
BY JUDGE FOSTER
Says the Kansas City Live Stock
association Is a Trust anG Must
Stop Doing Business.
1t VIOLATES THE FEDERAL LAW
AS Applied to Kansas City 1t May
Be to Organizations Else
where and Is Sweeping
i'll Its Effects.

where and Is Sweeping
in Its Effects.
Topeka, Kas., Special: IN All opin-
Ion handed down Judge Foster of the
United States district court, concluded
that the Kansas City Live Stock eX-
change was in violation of the Sher-
man antitrust law and declared that
the prayer of the petitioner that the
exchange be dissolved and enjoined
from enforcing its by laws ought to
be granted, but the order has not yet
been issued. The case was II brought
by the United States district attorney
nearly n year ago, when Greer, Mills
d Co. we've driven out of the exchange.
After reciting the facts in the case
as brought out by the testimony, in Il
statement of 5000 words Judge Foster
gave an opinion almost as long. BY
an odd coincidence, almost every inn
portant case cited in the stock yards
case which was heard here last week
was referred to in this case and men
toned in the opinion.
The court calls attention to the fact
that the defendant association denies
the existence of a combine. In deter
mining whether Il combination exists,
he says it is necessary to consider not
only the by laws of the association, but
its practical workings. Discussing
this point he says:
THE defendant association is locat-
ed at Kansas City on the line between
Kansas and Missouri, in the immediate
vicinity of the Kansas City stock yards
and i'll close association herewith, be-
ing tenants of said stock yards COM
pany. Said yards, with perhaps the
exception of the yards at Chicago, are
the largest in the country and handle
great numbers of live stock. These
yards, the packing houses and this eX-
change, nre all situated at the gateway
through which flows the great stream
OF commerce of several states and ter
ritories, and among all the business
tributary to this locality probably
none is as important as the live stock
business, and the various industries
connected Herewith.
The Exchanges Stringent Rule.
"The defendant association is en-
tircly voluntary in form and does not
directly require any person engaging
in the live stock commission business
to become a member, but it will be OBJ
served that rule 1G prohibits any MEM
Der from dealing with any person vio-
lating any of the rules or regulations
Of the exchange or an expelled or sus-
pended member after notice of such
suspension has been issued by the sec
rotary or board of directors. In prac-
tice, as amply appears from the testi-
mony of many witnesses, this rule
shuts out all dealings and business in
~tercourse between members and nom
members of the association. 1t is
shown beyond cavil that the entire
membership of the association regards
n commission merchant attempting to
do business at the Kansas City stock
yards without joining the exchange as
one violating this rule and treat him
accordingly. And this construction is
Il natural one, for n compliance with
the rules of the exchange requires a
party to subscribe to its rules and by
laws and to pay a membership fee
which Is now 1880, to pay his assess
ments and observe all other require
ments, including the fees and com
missions fixed for handling live stock,
n it may well be said that any dealer
or broker does business in violation of
these rules who does business at all
and fails to join the association. The
testimony discloses several instances
OF parties attempting to enter the field
n do business there without Joining
the exchange, and in every instance
unless protected by the courts they
have been compelled to abandon the
undertaking.
A Boycott OF All Outsiders.
"All parties now engaged in the bus
mess are members of the exchange ex-
cept Greer, Mills q Co., who are max
ing q fight in the courts to maintain
their business, and are temporarily
protected by injunction. 1t appears
from the testimony that any person
or partnership attempting to carry
on business independent of the asso-
citation is invited to apply for member
ship, and if he fails to do so, or il re-
jected, he attempts to proceed, his
name is written on a blackboard kept
Tor public use in the exchange build
ings, and all members are warned
against dealing with him. This admo-
milton is strictly obeyed and such per
son is ~boycotted. The outcome is in
cvitable; the combined opposition of
800 men against one can produce but
n result. Almost every purchaser or
vendor OF live stock, including the
great packing houses, does business
through commission merchants. and
nearly the entire volume of live stock
received at the yards is consigned to
and controlled by these merchants,
members of the exchange. In vain
does the outside dealer offer attractive
bargains for the sale or purchase of
stock; they will have no intercourse
with him. This state of affairs is
known and circulated among stock
growers and shippers, and they dare
not ship their stock to this boycotted
broker or firm. These facts are es-
tablished. and amplitied by a multi
tude of witnesses.
Clearly n Monopoly Combine.
1.-The ultimate purpose of the ex-
change is written across its face.
where all can read; it is to control
and monopolize the entire business of
buying and selling live stock at the
Kansas City stock yards. 1t is clearly
n combination to restrict, control and
monopolize that class of trade and
The defendants declare
that the rule, regulations and prices
for doing the business are all renson-
able and fair and for the best inter-
ests of buyer and seller. Possibly that
is so, although it is not apparent, look
ing at the interests of the stock grow
er or purchaser. WHY me NUMBER OF
solicitors of business should be limited
to three for each firm, or why there
should be a restriction on telegraphic
information as to the state of the
market, or why he should be compelled
to pay a commission of so cents n head
on cattle when he paid 25 cents be-
fore the exchange was organized, or
why there should be discriminating
charges on stock from different local
tiles.
Counsel for defendants have, with
commendable zeal and industry, sub
mitted for our consideration the rules
OF a great number of exchanges and
boards of trade throughout the cities
of the United States dealing in cor
porate stocks, grains, live stock and
various oher things. and contend that
they are essential, if not indispensable,
to the commerce and businessinteres.s
of the country and that to grant the
prayer of this bill would be the death
blow of these institutions. Courts can
not shut their eyes to the results of