PACKERS AND STOCKYARDS ADMINISTRATION. 669 



Action by the exchange and the stockyards company was prompt 

 and drastic. The net result was that 2 firms involved in the irregu- 

 larities have closed their businesses and withdrawn from the stock- 

 yards. Nine firms were fined and 7 other firms were indefinitely 

 barred from the yards. In all, 23 persons connected with 9 commis- 

 sion agencies were barred from the privileges of the St. Paul Union 

 Stockyards. Of these 23 persons, 2 have been permitted to resume 

 business, having shown that they were personally innocent of any 

 guilty knowledge of the transactions disclosed, and 4 others have been 

 permitted to seek employment in the yards, but not to resume business 

 on their own account, not because they had been affirmatively guilty, 

 but because they had not been watchful in protecting the interests 

 of their principals. 



Thus it clearly appears that the guilty ones were punished effec- 

 tively. In addition, every practical step is being taken to secure 

 restitution for shippers if the}' have lost anything through these 

 irregularities. 



It should clearly be understood that the punishment inflicted by 

 the exchange and the stockyards company does not relieve any of the 

 guilty agencies from penalties of the law which may be enforced 

 by the Department of Agriculture. Formal proceedings have been or 

 will be prosecuted by the Department of Agriculture against both 

 members of the exchange and nonmembers in every case where they 

 remain in business in the yards. If they are found guilty, orders to 

 cease and desist will be issued, and thereafter, if the offense is re- 

 peated, they will be subject to the fines imposed. 



Nothing has been done to relieve the guilty from the full penalties 

 of the law. The punishment imposed by the exchange and stock- 

 yards company is not a substitute for action on the part of the De- 

 partment of Agriculture. This procedure at South St. Paul is in 

 conformity with the policy of the Packers and Stockyards Admin- 

 istration, which has been followed uniformly, of promptly informing 

 the boards of directors of livestock exchanges and cooperative asso- 

 ciations of improper or unfair practices on the part of their mem- 

 bers or officers, thereby giving such organizations the opportunity 

 to take such action against the individuals responsible as the facts 

 might warrant. 



The course that we have followed has resulted in putting the 

 most guilty agencies out of the market and imposing discipline on 

 the others. If we had not cooperated with the livestock exchange 

 and the stockyards by enabling them to perform their duty under 

 the law, punishment would not have been as prompt as it has been ; 

 in fact, so far as our authority alone is concerned, the guilty agencies 

 would still be doing business in the yards. 



When the investigation and formal proceedings have been com- 

 pleted a detailed report of the entire matter will be made available 

 for publication. 



In these and other respects, such as the establishment of separate 

 shii^pers' proceeds banking accounts, placing the prices on all scale 

 tickets, bonding of all commission agencies, the operation of a repre- 

 sentative local trade practice committee, the adjustment of the weigh- 

 ing question, including the elimination of weighing charges, the 

 agreement to arbitrate commission rates, and the settlement of other 

 matters of lesser importance, the circumstances make it fair to say, 



