Custer weekly chronicle. [volume] (Custer City, S.D.) 1890-1931, 1897-10-02

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 in 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 eN-
change. are all situated at the gateway
through which flows the great stream
of 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-
tirely voluntary in form and does not
directly require any person engaging
I'm the live stock commission business
To become a member. but il will be Do
served that rule 10 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-
tee, as amply appears from the testi-
mony of many witnesses. this rule
shuts out all dealings and business in
tercourse between members aud non
members of the association. 1t is
shown beyond cayii thai the entire
membership of the association regards
n commission merchant attempting 10
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
a natural one, for n compliance with
the rules of the exchange requires a
party to subscribe 10 its rules and by
laws and to pay "A membership fee.
is now $500, TO pay his assess
ments and observe all other require
@gssss .s.sas ( &, rs ::sgi::s ~ sssss
or broker does business IN violation of
these rules who does business al all
and fails to join the association. The
testimony discloses several instances
of parties attempting TO enter the field
and 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 on All Outsiders.
"All parties now engaged in the bus
mess are members of the exchange cx-
cept Greer, Mills d. Co., who are max
,nr "a Gnht Ia Tho ,a,,r,, 80, ,,,:.
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 assoc
citation is invited to apply for member
ship, and if he fails to do so, or if re-
jected, he attempts TO proceed, his
name is written on n blackboard kept
for 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
evitable; the combined opposition of
800 men against one can produce bat
one result. Almost every purchaser or
vendor of live stock, including tie
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 amplified by a multi
tude oe witnesses.
Clearly a Monopoly Combine.
"The ultimate purpose of the eX-
change is written across its face.
where all can read; il 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 t~osrcstrict. control mud
monopolize that class of trade and
commerce. The defendants declare
that the rule, regulations and prices
for doing the business are all reason.
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 the number OF
solicitors of business should be limited
to three for each firm, or why there
should be a restriction on Geographic
information as TO the state of the
market, or why he should b. compell, d
to pay a commission Of so cents q 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, IL not indispensable
to the and businessinteres.s
of the country and that to grant the
prayer of this bill would be the death
blow of these institutions. Courts ear
not shut their eyes 10 the results oi
their judicial conclusions, but how fan
such results should control those con
illusions depends on several conditions
not necessary to discuss here; mol
would It be proper to consider here
what effect this act of congress may
have on these organizations or any
of them.
Bad Effects or Exchanges.
II may be permitted to say, how.
ever, that the methods and aims OF
many of these exchanges and boards