Kansas City daily journal. [volume] (Kansas City, Mo.) 1892-1897, 1897-01-01
JOINS THE FIGHT AGAINST THE
LIVE STOCK EXCHANGE.
ASKS TO HAVE 1T DISSOLVED.
DECLARES 1T Is VIOLATING FEDER-
AL ANTITRUST LAW.
Suit Brought in the Name of the At
tOrney General, in the United
States Circuit Court ut To-
peka-VoIuminous Pc
tition Filed.

cult court IN IRIS CITY lO-udy u utr
the Kansas City Live Stock exchangll N&
petition was prepared by United Stat p
torney w. c. Perry and was signe NN
Attorney General Judson Harmon. s
petition charges that the object of theS&
ganization is to control the charges
handling, selling and buying live stock
the Kansas City stock yards, and that ia
existence restrains trade. is against publi'
policy and is u violation of the federal
antitrust laws. The application for tenn
porary injunction in the suit will be heard
before Judge Foster, of the federal court,
on January II.
This proceeding is the outgrowth of the
fight between Greer, Mills & Co. and the
Kansas City Live Stock exchange. This
firm, which was member of the exchange,
was convicted of violating one of the rules
and fined 81 0OG. 1t refused to pay the fine
and brought suit to enjoin its expulsion.
The case was first tried in the Wyandotte
county district court and since then it has
been before the Kansas appellate and su-
preme courts and the federal courts OF
Missouri and Kansas. Greer, Mills & Co.
lost in each court and it has been suspend
ed. The firm still endeavors to do busi-
ness at the yards. but is boycotted by other
firms which belong to the exchange. and
can do little business.
AS a last resort, its attorneys decided
to go after the exchange for the violation
of the antitrust law. A conference was
held with United States District Attorney
Perry about ten days ago and as result
papers were drawn up by the federal at
torney. They were sent to Washington to
be examined and signed by the United
States attorney general The mail this
morning brought the petition back. signed
by Mr.. Harmon, and 1t was then fled with
the clerk of the United States circuit
court. The defendants in the case consist
only of those members of the exchange
who reside and maintain offices on the
Kansas side of the Stock Exchange build
ing. A similar suit embracing all tha
members of that body who live and do
business In Missouri will be commenced in
the federal court for the Western district
of Missouri so it is said.
The names of the defendants are: Henry
Hopkins, A. Isaacson, F. X. Jardou, ]. T.
Kiely, A. ]. Knollin. W. L. Ladd. T. +.
Mcdonald. j. W. Orlander, NJ. S. Peters,
o. c. Peters, Gilman Reed, e. E. Richard
son, w. "A. Rogers, ]. h Southee. ]. NJ.
Sweeney. Henry Theis, E E. Trowbridge,
Harry Trower. o. B. Trower, S. r. Trower,
William Winder, r. H. Wise, L. NJ. Egan,
Fred Ehrke. W. F. Grant. W. s. Hannah.
]. H. Clotfelter, T. E. Ladd and Woodson
Mccoy.
The petition. after reciting the well
known connection between the Kansas City
Live Stock exchange and the Kansas City
Stockyards Company. and the method of
transacting business, proceeds to show that
the business of the Live Stock exchange,
being conducted on both sides of the Kan
sas-Missouri state line, Unfortunately, Is
interstate in character. The legislation of
the states of Missouri and Kansas. it is
averred is inapplicable thereto, and such
business can only be regulated and con-
troIled by federal legislation. because 1t is
a part of the commerce between. the states.
1t is then alleged that IF the person or
partnership or corporation to whom stock
is consigned at Kansas City is not men,
ber' of the said Kansas City Live Stock
exchange and subscriber to It's rules and
bylaws, then said consignee is not per-
mitted and cannot sell or dispose of said
stock at said market, for the reason that
the defendants, and all the other commits
sion merchants doing and controlling the
business at said yards. as required by the
rules of said exchange, refuse to buy live
stock, or in any manner negotiate, deal
with or buy from a person or commission
agent who is not a member OF the Kansas
City Live Stock exchange: that in all such
cases the owner of stock shipped to that
market Is compelled to reship the same
to other markets, and the unlawful COM
bination existing among the defendants
and the other members of the exchange
IS prevented from delivering much live
stock to the stock yards, and the sale of
live stock is thereby delayed and hindered,
thus entailing extra expenses and loss
to the shipper. and placing an obstruction
and embargo on the marketing of all stock
shipped from the Western states to the
Kansas City market which is not consign-
ed to the Kansas City Stock Yards Com
pany. or to the defendants or other mern-
bers of the exchange, who alone are per-
mitted by said stock yards company to
transact business at its yards.
And your orator further shows to the
court that the defendants and other uem-
bers of the exchange have adopted and
are governed by. certain articles of asso-
citation, rules and bylaws, which have
been subscribed to by each OF the Defend
ants, many of which said rules and bylaws
are in restraint of trade and commerce be-
tween the states and intended to create a
monopoly. in contrayention of the laws
of the United States in that behalf; that
rule O. adopted by said defendants and
their associates in said exchange. and now
in force as one of its by-laws or rules. pro-
vides for the prices to be charged as COM
missions for selling, buying and handling
stock of all kinds
Several sections OF the bylaws and rules
are inserted here. and the petition con-
tinues:
And your orator further AYERS that each
of the defendants. by the adoption of said
articles of said association rules and by-
laws, and by associatine themselves to-
gether known as the Kansas City Live
Stock exchange. and in carr wing out artf-
cles, rules and bylaws and by the con-
duct of business. conspired and confeder-
ated together in violation of the laws of
the United States, and particularly in the
violation of the act Of congress approved
July 2, 1890, entitled An act to protect
trade and commerce against unlawful re-
straints and monopolies' and in the pros
ecution of said unlawful combination have
agreed and confederated to monopoIize the
business of buying and selling live stock
at the Kansas City market, and to iIIegslly
fix and establish q minimum price for 5rIy-
ing and selling the same. and have fur
ther, in restraint OF trade and commerce
between the states. cOnfederated together
to prevent and restrain the free transmits
sion Of information regarding the state OF
the market of said Kansas City by tele-
graphic messages and Information to the
various states and territories aforesaid
and by the adoption and enforcement of
said rule have restricted the free employ
uent Of agents and solicitors in the pra<a-