The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1902-06-16
KANSAS NEWS.
The Stock Yards Combine is
Being Tested.
Suit is Brought at Ashland I'm
der Anti Trust Law.
WILL BE HARD FOUGHT
Priority of a Mortgage on Cattle
to Be Determined.
Several Questions of ImpOr-
lance Are Evolved.
BE HARD FOUGHT

Ashland, Kan, June 16-A suit has
been started here to test the right Of the
live stock commission men at the Kan
sas City stock yards to combine on
rate Of commission to be charged Tor
buying and selling cattle II VIII alsO
determine whether, If they do combine,
they can collect their commissions III
the Kansas courts The suit Involves
portance to the cattlemen throughout
Kansas as we'll as to tbs commission
men at Kansas City.
C. w. Carson Of Ashland Is plaintiff
and he has brought his suit against
Henry Null J. E. Null, the Drovers,
Live Stock Commission and the National
Bank Of Commerce of Kansas City, to
foreclose q mortgage on 500 head of cat
tie belonging to the Mulls. ". 3.
Grimes. Jr.. Of Ashland has been APP
pointed by the court to take charge OF
the cattle pending the litigation.
It is charged in the plaintiffs petition
that the DrOVers' Live Stock Commls-
sion company of Kansas City is claiming
q mortgage lien on these cattle to the
amount of about S25, 600, and is threaten
ing to ship them out of the state The
plaintiff claims that this mortgage Of
, the Kansas City commission men is il
legal and in any event inferior to his.
Henry Null has filed his answer in
the case, and at considerable length sets
out the details Of his business transact
lions with the Drovers' Live Stock Com
mission company since December, 1898
He claims that at that time he borrowed
$4,000 from this commission company
and was required to give a note for
over $21, 900 secured by q mortgage on
about 1000 head Of cattle then on his
ranch in Clark county. He says at the
time he gave his note and chattel mort
gage the DrOvers' company was mem
Der OF the Kansas City Live Stock ex-
change, which he claims was. and still
is, "a voluntary association of commits
sion men formed for the purpose Of
III -4E-. -e-rr~nr
business at the Kansas City stock yards,
and is an unlawful trust and combine
within the meaning Of the Kansas anti
trust statutes"
He further claims that under the rules
and bylaws of this live stock combine
its members are prohibited under heavy
penalties, from charging less than 80
cents a head for buying or selling cat
tie for others and from dealing with
other commission firms or corporations
who are not members Of this trust. and
that to carry out those unlawful rules
and bylaws the DrOVerS' company in
cluded ia the note and mortgage $512
OF commissions. over and above the
discount OF 10 per cent per annum He
says that he bought no cattle of this
commission company. but had to in
! cIude the S512 in the note under a bylaw
OF the trust which requires its mem berS
! to collect a commission when they make
a loan Null shows that in the various
transactions with this company,
amounting to a considerable sum. he
| has shipped a large number of cattle.
and paid large sums Of money, but that
at least once a year he has. when re-
newing his paper, been required under
/ these rules to include a new commission
/ without getting any service for it what
! ever He claims that under the Kansas
/ antitrust statutes the members of this
trust have no right to do business in
/ Kansas while engaged in carrying out
/ their trust agreements and that his
/ notes given in renewal of the original
| SO 600 loan are illegal and unenforcible
! in the Kansas courts.
/ The facts as alleged by Mr. Null show
/ that of the S21 600 now represented by
his last note over 81, 600 is interest at IL
per cent per annum and over $1,000 is
commission for selling cattle to him
which he either bought from others OF
/ had on hand
Mr.. MulPs lawyers are H. J. Bone OF
! Ashland and D. r. Hite of Topeka.
They say that a similar case IS pending
in Jackson county, and that the court
there has so far ruled that notes an6
! mortgages given to mem bers of this ex-
/ change in cattle transactions cannot be
enforced in the Kansas courts. If Mulps
contention in this suit is sustained. Car
sons mortgage which is apparently sec
Ond to the Kansas City. mems lien, will
of course, be good and the cattle viii b.
otherwise clear.