The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1899-10-30
What the Kansas City Stock
Yards Earns.
Facts From Attorney General
GOdard's Brief.
AVERAGE FOR 25YEARS
Per Cent Is Over 25 For That
Time.
Case to Be Heard In u s.
Supreme Court Soon.

In resisting the enforcement of the
! law reducing. charges for feed and
yardage, passed by the last legislature,
the Kansas City stock yard company
claimed the law would deprive them of
a reasonable profit on the investment.
Attorney General GODDARD in the brief
recently published shows by conclusive
figures that on the business of 1896, the
year prior to the beginning Of the pres
ent litigation. the company by charg-
ing the prices fixed by the new law,
would have earned per cent interest
on the sum of 81, zoe, 900 more than the
actual value Of the property connected
with the business and used in its trans
actions.
The argument of the company is an
swered by Mr.. GODDARD, as follows:
In 1871 the Kansas City stock yard
company was organized with a paid up
capital of $50, 900. In 1876 stock was sold
to the amount of s73, 900. In 1873 stock
to the amount of S42,4OO was sold; in
1881, $4,000; in 1877. $685., 600 lin $780, 90O,-
OOO in 1893 $50, 900; in 1894 81 667, 500. all of
which was disposed of for cash and at
par, making a total of 81, 4S4. 500 re-
ceiVed for subscriptions and the sale
of stock, which is all the money that
has ever been invested in the Kansas
City stock yards company or any of it's
predecessors by the stockholders there
Of Whatever property or rights the
company now owns have all accrued
from the investment of said sum and
from that investment have also been
paid the dividends.
stock dividends purporting to repre-
sent investments by purchase and by
improvements made out of the earn
1ngs of the corporation, have been de-
clared from time to time to the stock
holders. In addition dividends of stock
have been made from time to time.
purporting to represent increased value
of the holdings of the company and
cash dividends have been declared with
great regularity.
The stock dividends purportfng to
represent permanent investments made
from the earnings of the company have
been as follows: 1875 S96 900; 1876 $685.
300; 1877, 1881. 300; 1873. S235 600: 1887.
56,933; 1890, S404. 900; 1894, S268. 100; 1896
S433. $50; 1897, SIS. 090-maxing a total of
S2,369, lf3 worth of stock issued to the
stockholders without the payment of
any money by them, and being within
$115,327 of the amount of stock which
was Used and paid for in cash.
In addition to these stock dividends
further stock dividends were declared
on account of the increased value of
the lands held by the company in the
following amounts: 1879. $40, 600; 1884,
$4,000; 1888, 81, 8,067; 1894, $500. 0OO-an
aggregate of 81, 593, 067 or $109, 567, more
than the total amount Of stock which
had been paid for in cash
In other words of the $7,36S, $50 of
capital stock issued and now outstand-
ing by the Kansas City Stockyards
company, 81, 484.500 was paid for in cash
and 1882 24O was issued to the stock
holders without the payment of a cent
and as a profit upon the investment of
the sum first named.
In addition to the foregoing cash
dividends have been declared and paid
to stockholders to the amount of $4-
$50, 976; making the total amount of
dividends which have been declared
upon the investment of 81, 484, 500. In
cluded in the cash dividends were some
dividends really made as real estate
dividends; that is. real property was
conveyed to other companies or indi-
viduals who acted as trustees and took
the property for the stockholders of the
stockyards company This real estate
was charged to the stockholders at its
cost value, although the evidence
shows that it had increased and some
of it was purchased by the Stoclyards
company at an increased value
The company made no dividends in
1873 and 1880, but Mr.. GODDARD takes
these years into consideration when
figuring to determine the average divi-
dends paid by this corporation Mr..
Godard's figures, displayed in a table,
show the dividends to have been as
follows, the first figures showing the
rate on stock paid for. the second the