Barbour County index. [volume] (Medicine Lodge, Kan.) 1880-current, 1897-10-13

the Populist party as well as one of the
most beneficial to the people of the
state, and everybody, regardless of pol
itics, is glad that it has been sustained.
The following account is taken from
the Topeka State Journal:
The state of Kansas won in the
fight of the Kansas City StockyaIds
company in the United States circuit
court. Judge Foster handed down n
decision denying the injunction asked
by the company and revoking the tenn
Dorary restraining order.
The decision sets the brand of consti-
nationality on the law regulating charg-
es at the Kansas City stockyards which
was passed by the last legislature.
When the injunction suit was brought
by two of the stockholders of the stock
yards company it was done on the
ground that the law was unconstitu-
tional for the reasons that it was
claimed that it had not been passed
regularity, that the business of the
company was interstate commerce and
could not be regulated by state legls-
lature, and the schedule of charges was
unreasonable and unjust. Judge Eos
ter holds the claims of the stockhold
ers in error on all of the three points.
The decision is of considerable length
and contains review of the case and
a detailed statement of the manner IN
which the opinions on the three points
involved were arrived at. In reference
to the first question, as to whether the
bill regulating the stockyards charges
was regularity passed by the Kansas
legislature, the contention of the stock
yards people being that the title was
imperfect because the substitute had a
different title from that expressed in
the original bill, Judge Foster decided
that the journals of both houses men
toned the substitute and that the law
was therefore regularly passed.
The second contention that the bust
ness Of the stockyards company was in
terstate in character and could be regu-
lated only by congress and was beyond
the power of the state to control was
discussed at great length in the decis-
ion. In making summary of the de-
cisons quoted and arguments offered,
Judge Foster said:
From the best consideration 1 have
been able to give this subject reasoning
from analogy and applying principles
announced In decided cases, | am of
the opinion that the stockyards COM
pany, performing duties for mixed
traffic, interstate and local, is such an
incident to commerce as may be re-
stricted in its charges by acts of the
legislature in the absence of congress
sional action.
In arriving at the decision that the
charges fixed IN the bill passed by the
Kansas legislature are not unreasona-
bic and unjust, Judge Foster says:
The master has applied the rates fix
ed by the statute in controversy TO the
business of the company for last year.
and finds that the net income would
have been reduced $3OO,65l.7O. The
property produced gross income of
ST ,O23 $40 20; deducting the operating
expenses, 1886, 1910 and $75,4OO for
maintenance and repairs (S410, 1897 10Y
we have net earnings of $612, 1888 10.
Under the statute it would be reduced
$500, 65l.70, leaving net income of
1912. 481 40, percentage of 24-1O0 on
the stock at par, and 67-1OO on the
value of the plant as found by the mas
ter, with the addition above noted.
(The addition is the property owned by
the company exclusive of Kansas City
amounting to ST ,000). If we accept the
latter valuation, the returns on the in
vestment seem to be fair and reasona-
BILE; if we take the property at its stock
value, it is a closer question. a cut of
$500, 65l.70 on net income of 1912 ,933.
10 is radical legislation,-i may be too
radical. The largest reduction is on
cattle, the former charge being 25 cents
per head, and under the law Is cents is
allowed. The other reductions are not
so great, and the prices fixed for feed
are liberal. 1t is matter of common
knowledge that great deal of money
during the last decade has sought in.
vesLment in government bonds and
other high class securities at interest az
low as per cent per annum. The an.
swer to this argument is evident; it is
not the case of money invested IN bust
ness with the risks and uncertainties OF
trade. There are other matters worthy
of consideration.
In 1898 the company increased it.
rate on cattle from 20 to % cents pei
head. In view of the large earnings o.
the company at that time, and tb,
amount of cash actually invested, it il
difficult to conceive any good reason TO-
this increase. There is about million
dollars of property owned by the com
pany whichfis not connected with TIN
yards, or used for stockyards purposes
1t appears from the report of the mas
ter that the total taxes paid by TIL
company. both in Kansas and Mis-
souri, in 1896 were S22,67l25. Beside
it does not always follow that de
crease in rates results in a correspond
ing decrease in net earnings. General
| ly, business under the stimulus of re