The Bon Homme County independent. [volume] (Tabor, S.D.) 1904-1913, 1906-04-12
ELIMINATE THE RULE;
DISRUPT EXCHANGE
I've Stock Associations Are
Hard Hit by Kansas
Decision.
aEW OF THE DEALERS
Men Of Kansas City As.
ser. That Rule Condemned 10 e..
ssntiai to Life Of Business
Mortgages voidsd.

Kansas City, April li.-Frank Hager-
s,n. counsel for the Kansas city Live
sock exchange. said that he would ad-
| g.e the exchange TO eliminate rule .
n IN, bylaws. which the Kansas SUI
,rrme court held To be illegal. The rul.
| ,rovides that no member OF the ex-
/ .hangc shall buy or sell live stock for
1 Isss commission than SO cents head.
/ ID provides also a maximum charge on
.,fload lots.
commission men said that the elm
nation OF this rule would disrupt the
exchange.
THAT is the one rule that makes the
| ,ssociation-for that In what the ex-
,hangr defective" said l.. A. Allen.
| 4 commission man.
Effect Of the Rule.
when that rule ls dropped the ex-
.hangc will have outllvcd itS useful
,sss. Without II the live stock com
/ mission business would become chaotic.
shippers would be afraid To- consign
attls To us. because without rule No. ,
here would be no guarantee To them
4 " fair treatment. irresponsible agents
/ rould overcharge them and the live
stock exchange would be powcrless to
prevent overcharge.
The objects OF the exchange rules
are not well understood" continued Mr..
Allen. Il believe that even the Eu-
,rrme court OF Kansas was not In pos
session of all the facts In the case
when ~ decided that the existence of
he minimum charge rule was In re-
rraint OF competition. That rule. as
rell as MI OF the bylaws OF tho ex-
,hange. was adopted for the protection
u the shipper. The exchange regu-
ates the maximum commission that
nay be charged for selling cattle ~
rell as the minimum. Knowing that
hese two rules exist. the shipper un-
Isrstands rust what he will have &c
Jay an agent for buying or selling cat
IL for him. He knows what to expect
Z he ships to us. and II he doesn't like
he terms nothing In to prevent him
rom coming on with his cattle and
selling them himself. In fact. that oc-
,urS daily"
Millions In Mortgages.
Mr.. HaEermnn would not admit that
he elimination OF rule 3 from the by
avs of the live stock exchange would
ilsrupt the organization. ION other
rounds" he said. 1T IL a most serious
natter
How far-renchinE the consequences
u this decision will he I cannot say
without looking Mt the opinion myself.
But IL Affects every mortgage held by
very member OF the Kansas city Live
stock exchange. secured In Kansas and
nay reach securities ia Missouri IL the
avs OF this state are invoked In the
natter. There must be- many millions
u dollars out on mortgages negotiated
~ the exchange members and this
iecision covers them all. IL may even
each innocent banks or private lend
RS who have accepted transfers OF
luch mortgages. and the effect would
hen be almost calamitous.
But let me again emphasize the
)oint that the court does not say the
'Nchange In Illegal. or a trust. IL says
hat the bylaw Is illegal because II In
m agreement to fix prices. The legality
Y the exchange was affirmed by the
Missouri court OF appeals In Glndish
against Bridgford OF June 20. 1905. and
~ the supreme court Of the United
states IN the Higgins case on October
a. 1855"