The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1897-10-28
KANSAS WINS.
Judge Thayer Fully Sustains
Judge Fosters Decision
In the Case of the Kansas City
StOekyards.
LAW MUST BE OBEYED
POpulist Measure Of the Last
Legislature InvuInerable.
StOckyards Are a Public Not a
Private Institution.
A GREAT STEP TAKEN
Toward Governmental Control
OF Certain Businesses.
Judge Thayer's Decision Op ems
the Way to Many Things.
POpuIist Measure of the Last
Legislature Invulnerable.
StOckyards Are a Public Not a
Private Institution.
A GREAT STEP TAKEN
Toward Governmental Control
of Certain Businesses.
Judge Thayer's Decision Op ems
the Way to Many Things.


Judge Thayer of the United States
circuit court of appeals today sustained
the decision of Judge Foster IN the
stockyards case and held that the rates
fixed by the Kansas legislature cover
ing the charges of the company are
valid.
This is not only a victory for Judge
Foster, but it is a victory for Attorney
General Boyle, David Martin and every
cattle shipper in the west. 1t means
that the cattlemen have been right in
their contention that the rate charged
by the stockyards company for hand
ling live stock were extortiOnate.
The stockyards decision was waited
for with interest, especially in Kansas
City but d large number of Topeka at
torneys gathered in the federal court
room to hear the reading. None of the
members of the company were present.
The decision was received yesterday by
Judge Foster by mail, and he announc-
ed that he would read it at 10 a. m. to-
day There was considerable specula-
tion as to what Judge Thayer would or
would not hold but no one except Judge
Foster, Clerk Sharitt and Private Sec
retary Nettels really knew before
Judge Foster commenced to read what
was contained in the opinion.
Judge Foster was in good humOr and
a close observer would have at once
concluded that he had not been over
ruled. He sat in his private office
chatting with attorneys until the hour
for reading the decision came and then
he took the manuscript out of his pOck-
ct and turned it over in his hands. The
people in the court room began to
crowd into the private office until it
was filed to overlooking.
L guess MOhammed will have to go
a tai n e1aTH
Judge Foster. I will read the decision
in the court room. -
The crowd filed out and Judge Foster
followed. Attorneys Horton and Hite
who appeared for the stockyards COM
pany took seats on one side of the ta-
bic used by attorneys, and David Mar
tin and Assistant Attorney General
Smelling sat OppOsite.AttOrney General
Boyle is out of the city.
The opinion was typewitten and Gov
cred nine pages. Almost before the
first paragraph had been read it was
evident that the decision was against
the stockyards company. Judge Hor-
tons eyes dropped and during the rest
OF the time consumed in the reading he
never looked up.
The opinion not only sustained Judge
Foster, but Judge Thayer went even
farther and in places where Judge Fos-
Ter expressed doubt he made the
point positive. There was nothing in
the decision which indicated that Judge
Ihayer has any suspicion that the
supreme court. It is a complete vic
tory for every one concerned in the
fight to sustain the action of the legis-
lature. Judge Martin said after the
reading was over that the only point in
the decision to which he had any objec-
ton was an allowance of $50, 600 per an
mum for depreciation in property.
Judge Thayer first took the position
that the stOckyards is a public institu-
tion and therefore subject to state and
national control He said that this fact
was due as much to the location of the
yards as anything else. He said it was
necessary for shippers to send their
stock through Kansas City in order to
reach other markets and that therefore
the stOckyards is in every sense a pub
lie 1nstltutiOn.ThiS was the first of the
points made by the attorneys for the
stockyards company. They claimed
that the stockyards was a private and
not public concern
Ihe next contention which was shat
tered by Judge Thayer was the inter
state commerce question. 1t was claim
eu tnaJ the stock yards company is en-
gagged in interstate commerce and is
therefore not amenable to state laws
Judge Thayer said that the fact that
people shipped live stock from other
states than Kansas to the Kansas Citx-
stock yards did not make the comDanv
engaged in the business of interstate
commerce. He said that the SINNERS
might be, but the stock yards comparII-
was not engaged in interstate com
merce. 1t was also claimed that be
cause the company had part of its
yards in Missouri and part of them in
Kansas and moved cattle from one
state to the other in the transaction of
its business. they were engaged in in
terstate commerce. Judge Thayer said
IhaJ was not interstate commerce.
me next question considered was
whether the rates fixed by the Kansas
legislature were ccnfiscatOry He dis
cussed the value OF the property of the
company in this connection and went
further than Judge Foster by taking
the figure of Special Master Clark on
the value of the property. This was
something over s., 900 600. It was claim
ed by the stock yards company that the
property was worth over $1,000, 600.
Neither the capitalization nor the
value of the stock can be taken as the
true basis for valuation said Judge
Thayer. In the earnings of the com
pany for last year there was a charge
of over $500, 900 for operating expenses
Judge Thayer held that 800 900 of that
amount was for improvements made
and therefore could not properly be
charged to the operating expense ac
count. He said that the compaDv evi-
dently had not intended to charee it to
operating expenses because on the
company's books it was charged to
maintenance.
''FrOm the action of the company in