The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1897-09-20
Given the Kansas City Livestock
Exchange
In a Decision by Judge Foster
Today.
ITS UNLAWFUL ACTS
Severely Denounced From the
Bench by the Judge
Who Speaks HarshIy of All
Trusts and MOnopoIies.

Judge C. G. Foster of the United
States circuit court today dealt death
blow to the Kansas City Live Stock Ex-
change and he also delivered a few we'll
directed thumps at other combinations
boards of trade and grain exchanges.
The suit decided today was commence
ed a year ago by United States Attor-
ney w c. Perry and Attorney General
Harmon Joined with him and his name
appears on the bill filed in the federal
court.
The suit was really the result of a
quarrel among the members of the ex-
change.
The firm of Greer-AIfIIs broke the
rules of the exchange and was heavily
fined. They refused to pay the fine and
were expelled from the organization
The ostracized commission men then
employed a well known firm of Kansas
City lawyers, who assisted the United
States district attorney in the trial The
hearing was held in June, and since
that time Judge Foster has been work.
ing steadily on the case except when he
was away on his vacation. Since his
return he has devoted almost his en-
tire time to a study of the questions in
volved
The opinion is exhaustive and sweep
ing and leaves no loop hole for the or
ganization- The members of the KAN
sas City Live Stock Exchange must
give up their present methods of doing
business.
Judge Foster says in his opinion:
The object and purpose of the ex-
change is written across its face where
all may read. 1t is to control and mo-
nopolize the entire business of buying
City stock yards.
The stock exchange contended that
they We're concern similar to boards
of trade in cities and that such organi-
cations are necessary to carry on the
business of the country
This gives Judge Foster an opportu-
nifty to tell what he thinks about trusts
in general and grain commission firms
He says:
4 may be permitted to say that the
methods and aims of many of these ex-
changes and boards of trade are not al
together beneficial to the business and
commerce of the country; that they are
beneficial to the members and perhaps
to the locality may be admitted 1t
must also be admitted that a properly
conducted agency or medium through
which the vendor and vendee may read
lily sell and buy everything that enters
into commerce and trade is demanded
by the business interests of the whole
country, but this agency should not be
permitted to tamper with or in any way
impede or restrain the natural flow of
the stream of industry or commerce.
The crying complaint of today and
the great menace to the welfare of the
people, is the tendency of wealth to mo-
nOpOlize and control by trusts and COM
binations the products and industries
of the country, and it must be confess
ed by every thoughtful observer that
many of the So-called stock and pro-
duce exchanges are among the most po-
tent instruments for the accomplish
ment of these purposes by spectators
and Adventures. Men who add nothing
to the productive wealth of the country
grow rich or poor by gambling on the
wealth produced by others. Men are
daily selling through these exchanges
millions of bushels of corn, wheat and
other produce who neither have nor ex-
pect to have a bushel; and others are
buying millions, who newer expect to
receive a busheI. Both sides are tam
pering with the normal prices fixed by
the law of supply and demand, and at
tempting by false and dishonest means
and methods to serve their ends"
While this suit is in no way connect
ed with the famous Kansas City stock
yards suit, which was finally submitted
to Judge Foster last week, it is possible
that it may affect that case.
Judge Horton, who is one of the at
torneyS in the stock yards case said
today that Judge Foster upholds the
contention made that the stock ex-
change is engaged in interstate COM
merce.
That is just what we claim said
he, with reference to the stock yards.
We took the position that the stock
yards company is engaged in interstate
commerce, and Judge Foster holds in
this decision today that the commission
men at least are engaged in the busi-
ness of interstate commerce"
The decision will interest every stock
shipper in Kansas. A man who ships
his cattle or hogs to Kansas City must
sell them through the exchange. He has
no alternative. He cannot sell his stock
TO the consumer. The exchange regu-
lates the commission charges and all
the charges connected with the hand
ling of stock in the Kansas City mar
ket Their monopoly was absolute and
the decision of Judge Foster is COM
plete legal humiliation of the concern.
No PEACE At RROCKTnN-