680 ANNUAL, KEPOETS OF DEPARTMENT OF AGRICULTURE. 



tion with current correspondence and problems. It forms the point 

 of contact between the Packers and Stockyards Administration and 

 the Solicitor of the Department in all matters requiring supervision 

 by that officer. 



Heavy demands have been made upon this division for work in con- 

 nection with the organization and patronage dividend methods of co- 

 operative selling agencies, the banking and bonding problem of the 

 commission business, the valuation of stockyard properties, and the 

 handling and disposition of formal proceedings, including particu- 

 larly the Armour-Morris matter. 



AMENDMENT NO. 1 TO REGULATIONS. 



On June 14, 1923, an amendment to Circular No. 156, which be- 

 comes effective September 1, 1923, was approved, requiring market 

 agencies engaged in selling livestock on a commission to provide ade- 

 quate bonds to protect shippers and also to handle all shippers' pro- 

 ceeds in such a way as to prevent their being intermingled or con- 

 fused with other funds of the market agency kept or used for other 

 purposes. The need for such a regulation in the interest both of the 

 commission agencies themselves and the shippers was demonstrated 

 by the number of cases, which threatened to be serious, although 

 fortunately handled without ultimate loss to shippers, that were 

 found of insolvency or faulty financial practices. Had it not been 

 for financial aid by other members of the trade and bj^ bank loans, 

 together with indulgences by shippers, losses would have occurred. 

 The dangers of such cases was so great that after full consideration 

 by the leading interests in the industry the regulation was decided 

 upon as an urgent precautionary measure. In fact, the justification 

 for such a regulation has been recognized through voluntary action 

 in a number of markets. 



FORMAL DOCKETS. 



In addition to cases originating during this fiscal year, this report 

 includes also all cases that were pending at the close of the fiscal 

 year ending June 30, 1922. 



Docket No. 1. Kansas City Live Stock Excliange, fomplaiuaut. r. Armour & 

 Company and Fowler Paclving Company, respondents. Tlie Kansas 

 Live Stock Association. Tlie IMissouri Live Stock Producers" Association, 

 The National Live Stock Producers' Association, Missouri Farmers' Asso- 

 ciation, and Farmers Union of Kansas, interveners. 



This was a complaint filed by the Kansas City Live Stock Ex- 

 change, which is composed of commission men in the Kansas City 

 market, against Armour & Co. and the Fowler Packing Co., with 

 respect to the operation by the Fowler Packing Co. of its yards, 

 known as the Mistletoe Stock Yards, at Kansas City, Kans., a short 

 distance from the Kansas City public stockyards. The Fowler 

 Packing Co. is owned by Armour & Co. It was complained that the 

 Mistletoe Stock Yards was really a public stockyard market within 

 the meaning of Title III of the packers and stockyards act and should 

 be so determined by the Secretary of Agriculture. It was also com- 

 plained that the methods of doing business in these yards were con- 

 trary to Title III relating to stockyards and to Title II relating to 

 packers under the packers and stockyards act because of alleged 



