Hutchinson gazette. [volume] (Hutchinson, Kan.) 1895-1902, 1898-10-27
STOCK YARDS CASE.
Yupreme (JouIt Decides in Favor
OF the Association.
ANTITRUST LAW NOT VIOLATED.
The Association Not Engaged in Inter-
State Commerce Question ofLo-
gRlity ofhoycOtt Left to
the state Courts.

Washington, October 25.--The su.
preme court Monday handed down O
decision In the case against the Kan.
Sas City Live Stock exchange. The
government prosecuted under the
antl-truSt law The supreme court
holds that the association does not
come under the antitrust law. Jus.
tlce Harlan, In dissenting opinion,
declared that such combinations were
rings or syndicates which, II extend
ed to oil, sugar, salt, lumber and
other staples, would place the COM
merce OF the country under the con.
trol OF a few rings and syndlcates.
The association Is carried on at
the Kansas City stock yard, partly
in Kansas and partly In Missouri, It's
members receive shipments OF cattle
from Nebraska, Colorado, Texas, Mis-
souri,, Iowa, Kansas and the terri
tories, selling them to the large pnck-
ing houses particularly In Chicago,
st. Louis and New York. The lower
court ruled against the exchange, on
the ground that 1t was n combination
in restraint OF trade. Justice Peek
hams opinion, in which all the court
except Justice Harlan concurred re-
verses the lower court and upholds
the legality OF the association. The
opinion states that the Kansas City
exchange Is merely II local aid to in
terstate association. Because the
cattle themselves come from various
states II docs not follow, the opinion
states, thUt all persons performing
amy service connected with them are
engaged IN Interstate commerce. II
Is pointed out that member OF the
New York Produce exchange who re-
ceives conslgnments from other
states does not thereby engage In in
terstnte commerce. The opinion
adds:
We think It would be an entirely
novel view OF the situation IL all OF
The members OF these different en-
changes throughout the country were
TO be regarded as engaged In inter-
staIte commerce, because they sell
Things for their principals which
come from states different from the
one in which the exchange is situated
and the sales made"
Va similar ruling was made In the
case OF the United States against j.
Q. Anderson and others, involving the
Kansas City association known as the
Traders Live Stock exchange" In
this case. also, the court upholds the
association upon the ground that II
Is purely local and not engaged in
INTERSTATE traffic within the meaning
OF the ANTITRUST law.
Justice Harlan announced his dis.
sent from the opinion Of the court in
these two cases.
After quoting the antitrust law,
Justice Harlan said he could not re-
sist the conclusion Tint at Kansas
City there existed ring, or syndl-
cate, or combination or association.
the palpable effect being to bring to
Itself all the livestock business cen
tering there, and then transferring
Ut East Under this association. the
entire live stock business OF the West
had to come into its hands, or else Il
was kept out of the market. He
quoted with approval the opinion OF
the lower court to the effect that out
side parties attempting TO enter the
live stock field were compelled to
abandon the undertaking. It APP
peared from the testimony that any
person or partnership attempting to
carry on business independent of the
association was invited to apply for
membership and IL he failed to do 40
his name was blacklisted This adj
monitlon was strictly obeyed and
such person was boycotted. The out
come was inevitable, the combined
obligations OF 300 men against one
could produce but one result. The
plain purpose of the exchange, Jus
tice Harlan said, was to control and |
monopolize the entire business OF |
selling live stock at the Kansas City |
live stock yards. II this combination |
did not rest upon the principle OF |
boycott, then Justice Harlan said he |
was unable to grasp the principle OF |
a boycott Let 1t be supposed that
there were combinations OF this kind
On oil, in sugar, I'm salt, in lumber,
In coal and the other great staples,
then the whole business of the coun-
try would fall into the hands of a
few rings and syndicates which
would control all the business of the
country.
Justice Harlan said that II this
particular combination was not one
in restraint of trade, then 1t was i'm
possible to find one.