The Topeka state journal., 1899-09-13
A BIG LIVE STOCK FIRM
Organized on New Lines by Kansas
Men at Kansas City.

Kansas city. Sept 13-The initial
step towards the organization of a big
cooperative live stock commission
company among the cattlemen of the
the Transit house yesterday afternoon
The originator OF the scheme is ex-COn-
gresham NJ. s. Peters. and if it is car
ried out he viii be the manager OF the
concern.
Among those at the meeting were NJ
s Peters. OF Kansas City, Kan; Bank
Commission John ". Breidenthal, of
Topeka; ex-Congressman jerry Simp-
son, Of Medicine Lodge; William A.
Patten. of Allen. Kan: Representa-
tive Paul Russell, of Paola. Kan. ;
George Williams, OF Gallatin, No. and
Kenneth L Browne, cashier of the AIer-
chants bank of Kansas City, Kan Mr.
Peters explained the object of the meet
ing and told OF the benefits to be de-
rived from such an organization. He
went into details concerning the pro-
posed concern, and showed just how it
could be organized so as not to conflict
with the rules of the Live Stock ex-
change.
The proposed company will operate
something after the order of the old
American Live Stock Commission COM
pany. Instead of giving shippers re-
bates, however, it will declare div1-
dendS. Several years ago the American
company was organized on 4 cO-opera-
tive plan. Shippers were charged the
rates as prescribed by the exchange,
but at the end of the month were given
rebates. The exchange shut the COM
pany out and a legal fight ensued in
the federal and state courts, which re-
suited in a victory for the exchange.
The fight all hinged on the question
as to whether the exchange could bar
out a concern which gave its customers
rebates. The courts held that it could.
AIr- Peters was one of the ledding mem
bers of the American company. With
his experience gained by that long legal
battle he believes that he has now
hatched up a scheme that will get
around the rulings of the court and en-
able the new concern to do business
without mOlestatiOn from the exchange.
Bank Commissioner Breidenthal in
formed those at the meeting that the
Kansas banks could supply the pro-
posed company with all the money it
needed, providing it was handled by
cOnSerYa tive men. THE Kansas banks
have millions of money idle" said he.
They want to invest it. Cattle paper
is good security. But the bankers must
know that the cattle are where the cat
tlemen say they are. They don't care
to run any more risks since the Gillett
episode"
Cashier Browne. of the Merchants
bank, Of Kansas City, Kan, backed up
Breidentha1's statement concerning the
supply Of money in Kansas. He said
there was no necessity of looking east
for cash. It was right here awaiting
investment at a low rate of interest.
In order to get in on the ground floor
of the exchange without a fight the
proposed company will buy out cOu-
pie or three firms having membership
in the exchange now operating at the
yards The promoters of the new COM
pany have negotiations now pending for
the purchase of memberships, as pro-
vided in section of article 8 of the ex-
change constitution. This will enable
the stockholders to manage the concern
actively without employing outsiders
A committee composed of q. T. GOOde
of Olathe; L c. Stine, of Ottawa;
George Eckston, of kearney, No, and
NJ S. Peters, of Kansas City, was ap-
pointed TO arrange all the details of the
organization. Another meeting will be
held as soon as the committee finishes
its work. 1t is the intention of the
promoters to have the concern in Oper-
alton by January 1, at the latest.