The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1907-02-05
LISA COLD Mine
Stock Yards Investigation Re-
veals Startling Facts.
COmpany's Profits for 26 Years
81 Per Cent Annually.
CHARGES EXORBITANT.
Make 100 Per Cent on All Feed
Sold.
How the Kansas City Monopoly
brushes Competition.
CHARGES EXORBITANT.

The Kansas stock yards committee
submitted its report to the house of
representatives today. The report was
made by Representative John A Ed
wards of Greenwood county. The
committee report contains the follow
ing:
In the opinion of your committee.
the evidence established the following
facts:
That in 1898, this Stock Yards COM
pany was reorganized, the new corpor-
alton taking over the stock, good VIII,
etc. of the retiring company; no no.
ticeable changes were made in its at
fairs, except that the new company be-
came a Missouri, instead of a Kansas
corporation.
That this reincorporated company
applied for license to do business in
Kansas, but such license has never
been issued; the company has never
made an annual report to the secretary
of state, which is required by law; and
it has failed to comply with the other
requirements of the Kansas statute
regulating foreign corporations.
The present corporation was organ
lied for the sole purpose and with the
avowed intention of conducting pub
lie stock business, and that its success
full operation depends wholly on the
patronage of the public; that it COM
petes with all other stock yards COM
panies, for the general live stock busf-
ness; that it is a corporation organized
for profit
The capital stock of the present
company is 100000.
Your committee aScertained that,
the returns made by this company for
taxation purposes to the tax officers of
Jackson county Missouri, arr TO
Wyandotte county, Kansas, declaring
it's vast holdings of property in both
states to be worth less than one and
one-half million dollars. But for the
purposes of dividends and profit 1t
values the same property at nine mill
lions. This company's actual earn
ings during the last two years exceeds
the entire value of its property so list
ed to the tax authorities. Its profits
for one year are greater than its as
sessed value either in Kansas or Mis-
souri,.
The president of the stock yards
company reported to your committee
that his company had paid during the
past three years 6 per cent annually
in cash dividends on it's capital and 5
per cent interest on bonds amounting
to one million dollars, and that prac-
tically seven hundred thousand dollars
had been put to surplus or in better
ments (betterments by the committee
was construed to mean new improve
ments,) not maintenance. Taking ex-
penditures for betterments into con-
sideration the profit of this company
on the ca pitalization according to their
own statement.
The testimony discloses three aston
iShing facts: First, the receipts of live
stock at this market have gradually
and greatly increased, the receipts or
cattle alone having increased one mil
lion head ($250.O00 during the last ten
years.) Second, the amount of feed
sold and the profits on the same have
increased proportionally (about $780,
ird fnta of
fits are less on this increased business
than they were ten years ago on
smaller receipts
In 1896 the company's net profit was
$685.. 900, in 1906, only about $500, 900. 1t
is impossible for the committee to eth
er explain or reconcile the inconsistency
of these figures.
Profit 81 Per Cent
Your committee has carefully exam
ined the records of the stock yards
terminated in about 1900. The stock
yards officials admit that these records
are authentic and reliable. The records
show that during 26 years of cOnsecu-
tive business the company paid on the
capital actually invested in the bust
ness an average of 3212 per cent an
nually in cash dividends to stockhold-
ers and 3412 per cent in stock and real
estate dividends to stockholders, or a
total of 81 per cent in dividends was
paid each year for 26 years. At various
was recapitalized and in each instance
two shares of new stock were given for
one of the old. This record also shows
that hardly two and one-half million
dollars have been paid by the stock
holders in cash to the treasurer of the
company, that the balance of the out
standing stock Cor five million dollars)
is the capitalization of earnings or the
amount that the real estate is presumed
to have increased in value during this
time.
The testimony shows that since the
last reorganization the company has
issued 81, 500, 600 in bonds and during this
time it's capitalization has been raised
one and oEe-half millions or to nine
being retired and stock substituted in
their stead.
The Stock Yards company receives
ing a carload of stock cattle or thin
witnesses testifying that one thin ami
consumed by one fat animal. and that
than of fat cattle. Therefore load of
hay than car of fat cattle. Hence
your committee deduced that it costs
the producer from 800 to 600 per cent
more to market a car of light thin cat
tie than fat ones, provided the value
of each is considered.
1t is in evidence that during the first
% years of this company's experience