The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1905-04-10

prices. but this one cent q. bushel
serves to keep up the farmers organ
ization in case it does no business
When the farmers organizations were
first started the regular dealers who
belonged to the trust started in to run
up the price of grain, expecting to
keep the farmers elevator from get
ting any and so run it out of business
or, if the farmers sold to their own
elevator. making them dissatisfied be-
cause they did not get as much as
those who were not members of the
association. But the penalty provision
allowed the farmers to take advantage
of the high prices offered by outside
dealers. and then they turned around
and paid in one cent a bushel to their
own association, which was sufficient
to keep the elevator ready for BUSH
ness, even if it never did any. In this
way the regular dealers were not able
to run the farmers elevators out of
business, and it became tfresome to
always pay more than the farmers
therefore happened that at some ship
ping points the farmers elevators have
almost monopolized the grain business,
because most of the farmers have be-
longed to the association and no out
side dealer could get any grain without
paying more than the farmers could
get out of it by shipping it themselves.
This is the provision that Attorney
General Coleman has pronounced to
be in violation of the antitrust law.
His opinion was given in reply to a
letter from a central Kansas grain
dealer submitting TO him the bylaws
of u farmers association. He replied
as follows:
II have with some care examined
the copy of the bylaws and articles
of incorporation of the Farmers
Grain. Fuel and Live Stock company.
Without going into q careful analysis
of the subject 1 must say that in my
Judgment the contract entered into by
the members of the association as in
dicated by the bylaws is in violation
| of section. 113 of the statutes Of this
state, and if prosecuted would subject
! the corporation and the officers to the
penalties prescribed by law"
There are in Kansas two or three
! hundred of these farmers associations
which are now doing business with a
! provision something like this i'll their
/ bylaws. If prosecutions are COM
| menced against them and this pro-
vision should be deemed in violation
/ of the antitrust law. it would have a
| far reaching effect
| These associations were formed in
order to get ahead OF the grain dealers
! trust The farmers went into the bust
/ ness to fight fire with fire, and this pro-
/ vision is what enabled them to do it.
! The following is a sample Of how this
/ provision is framed in the bylaws OF
! some of these organizations This one
is from the bylaws of the Nationa
Farmers exchange, II. N. Gaines bis
company:
The stockholders and members OF
| this company shall sell to the agents Of
this company (if such agency is estab
lished at his nearest markell all theil
farm products, whenever this company
| pays as much as any other dealer il
willing to pay; but if any other dealel
is willing to pay more than the agents
Of this company, then said stockhoIder'
and members shall sell their product
to the other dealer and pay for main
tenance to the agents Of this conpan;
one cent per bushel on all grain sold
and of other products an amount to o.
fixed from time to time by the board
directors"