Omaha daily bee., 1906-04-08
Supreme Court Of Kansas Revsses Itssl
on This Pcint
MANY MILLIONS OF DOLLARS INVOLVED
Court Holds that Mortgages Executed
Through Members Are Void.
PRESIDENT ROBINSON DISCUSSES CASE
Head of Organization says supreme
Court of United states Does NOt
Agree with the Kansas
Decision.

TOPEKA. Kan. April LIN a decision
rendered here today. the Kansas supreme
court held that tho Kansas City Live Stock
exchange Is a trust ana that all cattle
mortgages made through members OF that
exchange are invalid Millions Of dollars
worth Of cattle paper VIII doubtless be
affected by the decision.
The decision. which was unanimous. re-
verses a former decision OF the supreme
court on the same case.
The present decision II on a rehearing.
The far reaching effects Of this decision
are beyond estimation Nearly all the
chattel mortgages issued through the MEM
bers of the exchange contain the provi-
sion that commission Of at least 50 cents
a head shall be charged. Under the hold
ing Of the court this is suficient TO con
stitute a trust and all the notes and mort
cages are absolutely void and cannot oe
enforced. 49, 3s.t.
History of the Case.
The case decided is that Of the state
| against Wilson, which came from Shawnee
county. In 1893 Charles L. Wilson and
George Maris purchased OF the A. J. Gill
| lespie Commission company 402 steers, and
in payment executed two notes to the
company for 1885, securing the notes by
a mortgage on the cattle. Two months
later they sold S97 of these steers and. II is
asserted represented TO the purchaser that
the cattle were clear OF all incumhranoe
The cattle we're taken away from the
purchaser by virtue OF a mortgage given
TO the commission company. Wilson and
Maris were arrested for obtaining money
under false pretenses and both we're con-
vlcted in 1900. That verdict was set aside
by the lower court and they were again
| tried In 1908, when the jury disagreed.
| Afterward Wilson was tried separately,
! found guilty and sentenced to Ave years In
| the penltentiary. From that conviction he
appealed and the opinion announced today
is the final determination of the supreme
court, which reverses the lower courts dc
cision.
Says Decision IL Void.
KANSAS CITY. Mo-, April IF. @. Roh-
inson, president Of the Kansas City Live
Stock exchange, said this afternoon that
he did not think tho decision Of the Kansas.
supreme court rendered today would have
a serious effect on existing contracts OF the
exchange, I"
"rhe issue is not new TO u.s. said Mr.
Robinson. at has been fought out by
every exchange In the country. 1t has been
decided by all courts heretofore, including
the supreme court of the United. States
that we are not an illegal organization"
According to court decisions, the live
stock exchange is no more a trust. than are
labor unions. We agree as they do, TO
charge a certain price for our labor. This
is done primarily not so much to fix "a
price as to limit the charges and to insure
a high standard Of commercial integrity
Texas May Bring Similar Suit.
AUSTIN, Tex, April 7,-The decision of
the Kansas supreme court today holding
that the Kansas city Live Stock exchange
was a trust was received with considerable
interest by Attorney General Davidson, as
the state of Texas is making prosecutions
along the same lines. The decision will
strengthen the position OF the state, as It
is believed that there is a so-called Live
Stock trust" in Texas. Attorney General
Davidson, when questioned. referred 20
Representative ]. p. Lightfoot. who said
II have already conducted an investigation
along this line, assisted by many others,
and from the investigation that have
made so far the Fort Worth Live Stock
exchange is being operated in violation OF
! the antitrust laws of Texas"