is charged with the regulation of the stockyards within the State to the same extent that they are charged with regulating the railroad interests and transportation within the State.

The railroad and warehouse commission is represented here by Mr. O. P. B. Jacobsen, who is its chairman, and Mr. F. W. Matson, one of the commissioners. The State is vitally interested through this commission.

I am also acting at the present time as counsel for the Minnesota Farm Bureau Federation, which is vitally interested in the matter. The fault, if any, that the State of Minnesota has to find with the provisions of the packers and stockyards act is not very great, as you will notice from the amendments that are proposed. In H. R. 4824 there is nothing new added, except as appears on page 2, following the words in the second line "such stockyard," the proposed amendment reads "except such as are furnished by a department or agency of a State government pursuant to the law of such State."

As the gentleman from Minnesota, Mr. Clague, stated, the provisions of this bill and of H. R. 4823 are very much the same, except that 4823 contains an amendment appearing on page 2, second line, from the word "commission," and in effect covers pretty much the same as the other proposed amendment.

The State of Minnesota since 1919 has been furnishing stockyard service and facilities as a part of the State government. This has included weighing of the livestock, and a few other minor incidental services in connection therewith. After the provisions of the stockyards act became effective on August 15, 1921, there were injunction proceedings commenced on behalf of the State in the district court in the district in which the stockyards of Minnnesota, which are located in South St. Paul, are situated. At about the same time, proceedings were commenced in the Federal court, in the fourth division, for the purpose of preventing the State from continuing to furnish stockyards service. The result has been very naturally a clash between the two courts. An arrangement was made, however, that for the period of one year the State was to continue furnishing weighing and other service as they had in the past.

Mr. KINCHELOE. Who agreed to that one year?

Mr. ANDERSON. That was agreed to by the Secretary of Agriculture, the stockyards company and the State of Minnesota, and, I believe, the livestock exchange.

The year expired. The suits were still pending; and then, in the middle of August, 1923, an injunction was granted in the Federal court. That injunction was in effect, or operated, at least as being in effect, for a period of 93 days, during which time the State was prevented in its furnishing of the weighing facilities and service. The State court was given jurisdiction by the Federal court, because the action was commenced there first. That court has passed upon the matter and rendered a decision in favor of the State. I have a copy of the decision here, which I would be glad to leave with the committee. It reviews the situation pretty well as the facts are in connection with the stockyards situation at South St. Paul. I have also a tabulation of the laws of Minnesota, affecting the stockyards situation, tabulated with the provisions contained in the packers and stockyards act, showing that there is very little, and we contend no. conflict.

The CHAIRMAN. Without objection, they may be spread on the record.

State of Minnesota, County of Dakota. District Court, First Judicial District. State of Minnesota,. plaintiff, v. St. Paul Union Stockyards Co., defendant

The above-entitled action was tried before the court without a jury on the 17th day of December, 1923, Clifford L. Hilton, attorney general, and Henry C. Flannery and E. C. Carman, appearing as attorneys for the State, and D. L. Grannis and George W. Peterson, appearing as attorneys for the defendant. And the court having heard and considered all the evidence introduced upon the trial of said action and the arguments of counsel and being fully advised, finds as facts herein:

I. That the defendant is a corporation organized and existing under the laws of the State of Minnesota. That it owns and operates a stockyards situated at South St. Paul in said State, into which livestock is received for the purpose of sale, That it is doing business therein for compensation and is a public stockyard as the same is defined in the laws of the State of Minnesota.

II. That at a special session of the Legislature of the State of Minnesota held in the year 1919, the said legislature duly enacted into law a certain act entitled "An act to provide for the weighing of livestock at public stockyards under the jurisdiction of the railroad and warehouse commission," which said act was duly approved by the governor of said State on or about September 22, 1919, and by its terms became effective on January 1, 1920; that said act was thereafter published and is now known as "Chapter 40 of the Special Session Laws of Minnesota for the year 1919."

III. That said stockyard at South St. Paul, owned and operated by the defendant herein, constitutes and is the only public stockyard that has been or is doing business as such within the State of Minnesota since the enactment of said chapter 40, Special Session Laws of Minnesota, 1919. During the year 1922 there were received at the said stockyard of the defendant company 71,405 cars of livestock by rail and approximately 2,000 carloads which were driven in. Between 61 and 62 per cent of all said livestock was so shipped or driven in from points within the State of Minnesota.

That the stockyard of the defendant company covers a tract of land at South St. Paul, Minn., of approximately 1,924,867 square feet, which contains over 3,000 separate inclosed pens, each pen being of sufficient size to accommodate and hold one carload of livestock of one kind or another. These pens are arranged in blocks separated by runs, alleys, or passageways and are in all cases assigned to and used by the various commission men and dealers and others doing business in said yard.

Separate provision is made for the receipt of livestock received at said yard by railroad and by truck or other vehicle. The trains of stock cars containing the livestock arrive on a track known as the unloading track, extending along a platform, known as the unloading platform. As each car is opened the livestock contained therein is driven out of the car by employees of the defendant company and into the chute pens, so called, adjoining the unloading platform.

The livestock is then driven out of the chute pens by said employees and counted; then it is driven into one of the pens assigned to the consignee of the shipment where it is delivered to the consignee and receipted for by him. If the car of livestock is consigned for sale, bids are received by the consignee for the same at the pens. After an agreement of sale has been made by the consignee to a purchaser the livestock is driven out of said pen by the employees of the consignee to one of the scales, where it is weighed by an official weigher appointed by the railroad and warehouse commission. Official certificate of weight, showing the name of the consignee, the person purchasing the livestock, the name of the shipper, and also stating the number and kind of animals in the draft and the weight thereof, are issued in triplicate by the official State weigher. A bell is rung by the State weigher when the weight is taken. The stock is then by the owner delivered to the purchaser and the title thereto vests in him. The cattle are then driven off the scale by employees of the purchaser to pens under his control, where they are receipted for by him. Thereafter the buyer has full control of the livestock and makes such disposition of the same as he may desire.

Each carload of livestock received at said stockyard which is sold therein is handled in the manner above described and each carload is kept separate from the other livestock during and throughout all said handling up to and including delivery thereof to the buyer as hereinabove described. That, according to the usual custom and manner of handling said livestock as hereinabove described, there is at no time any commingling of livestock shipped and received from points without the State of Minnesota with livestock shipped and received from points within the State of Minnesota; that there is no reason or necessity for any commingling of said livestock shipped and received from points without the State and such livestock shipped and received from within the State at any time after its arrival at the unloading track and while the same remains in the stockyard of the defendant company before delivery to purchaser; that all of said livestock shipped and received from points within the State of Minnesota which is weighed by said official State weighers is so weighed separate and apart from any livestock shipped and received from points without the State of Minnesota; and that likewise all such livestock shipped and received from points without the State of Minnesota which is weighed by said official State weighers is so weighed separate and apart from any livestock shipped and received from points within the State of Minnesota. Each carload of said livestock weighed, from whatever point shipped and received, is weighed by an official State weigher, separate and apart from any other livestock received at said stockyard.

That approximately 97 per cent of all livestock received and weighed at said stockyard of the defendant company in South St. Paul, Minn., is transported thereto by railroad; that the remainder of said livestock received and weighed at such stockyard is transported thereto by motor vehicles or means other than railroad transportation and is unloaded onto an unloading platform provided for that purpose and constructed with adjoining receiving pens similar to said railroad unloading platform and pens hereinabove described; that said livestock so transported by motor vehicles or other similar conveyance is handled throughout said stockyard in the same manner as the livestock hereinabove described, which is transported by rail; and that at no time prior to the delivery to the purchaser is there any commingling, nor any reason or necessity for commingling, of such livestock received by truck or similar conveyance from without the State of Minnesota with livestock received from within the State of Minnesota.

IV. That on or about January 1, 1920, under and pursuant to the terms of said chapter 40, Special Session Laws of Minnesota, 1919, hereinabove described, the Railroad and Warehouse Commission of the State of Minnesota duly established and installed a system for weighing livestock at the public stockyards situated in South St. Paul, Dakota County, Minn., owned and operated by the defendant in this action, whereby a sufficient number of State weighers to operate the scales were appointed and provision was made for the issuance of weight certificates; that said weighers were, at the time of the trial of this action, and still are engaged in the weighing of all livestock received at said stockyard in South St. Paul, which is weighed and sold thereat, acting under and pursuant to said chapter 40, Special Session Laws of Minnesota, 1919, and rules and regulations of said railroad and warehouse commission made pursuant thereto.

That under and by virtue of the authority conferred by said chapter 40, Special Session Laws of Minnesota, 1919, the said railroad and warehouse commission has from time to time prescribed the fees to be paid for the weighing of said livestock, which fees are collected through the commission men consignees from the shipper of the livestock, are based upon the number of livestock weighed and are paid into a fund in the State treasury known and designated as the "livestock weighing fund." That the present scale of charges is 2 cents per head for cattle and 1 cent per head for sheep and hogs; that the scale of charges has been changed from time to time and is always subject to readjustment by the commission so as to yield only the necessary cost of said weighing services hereinabove described.

V. That, except as hereinafter expressly stated otherwise, all livestock transported by railroad to and received at the stockyard of the defendant company at South St. Paul, Minn., is transported thereto under bills of lading or other forms of shipping contract wherein the only consignee is a person, corporation, or concern at South St. Paul, Minn., and the only place of consignment and delivery named in said bill of lading or shipping contract is South St. Paul, Minn.; and that the carrier's contract of shipment is in all such cases

complete and terminated upon delivery of such livestock to said consignee at South St. Paul, Minn.

That a very small and minor part of the livestock received by rail at the stockyard of the defendant company in South St. Paul, Minn., from other points, is consigned to points beyond South St. Paul, Minn., and is unloaded at the said stockyard for rest and feeding only and that none of said livestock so received for rest and feeding only is weighed at said stockyard nor do said official State weighers in any manner or for any length of time whatsoever control, interfere with, or in any manner impede the handling, feeding, resting and transportation onward of said livestock so originally consigned to other destinations. That the weighing of livestock at said stockyard pursuant to said chapter 40 in no way burdens or affects interstate commerce.

VI. That at the time the weighing operations at said stockyard were begun by State weighers pursuant to the provisions of chapter 40, Special Session Laws of Minnesota, 1919, there were 15 scales in said stockyard, which number has since been increased to 19, all owned by the defendant, and which scales are situated in various parts of stockyard to facilitate the weighing of livestock therein in lots of one carload or less at one time; that upon the commencement of weighing by official State weighers, the State supervisor of scales began a thorough inspection and examination of all of the scales in said yard and continued the same until all of said scales had been examined; that upon said examination and inspection, all of said scales were found to be faulty and to register inaccurate weights; that the weights of said livestock, as determined upon said scales, was and is used as a basis of settlement between the buyer and seller for all livestock weighed and sold; that said inaccuracies, therefore, directly affected and made correspondingly inaccurate the amount paid to the producer for all livestock sold at said stockyard; that said inaccuracies were caused by the faulty construction of the said scales, the overworn bearings and parts and the presence of foreign substances such as rats and other foreign matter upon the working parts of said scales in the pit; that said scales were so constructed that a solid wall was situated between the place where the weigher of such livestock must necessarily be while weighing same and the platform upon which said livestock was placed for weighing, and that, because of such construction, it was impossible for said weigher to know of his own knowledge whether or not all of the livestock intended to be weighed at one time was in fact upon the platform of said scales at the time he was weighing the same.

That upon hearing of the conditions hereinbefore described, said State supervisor of scales caused said defects and irregularities to be remedied by the cleaning and repairing of said scales and the replacing of parts therein where necessary, and caused windows or other apertures to be made in said wall or partition separating the weigher from the livestock to be weighed, so that such weigher could observe whether or not all of the livestock intended to be weighed was in fact upon said scales at the time he was weighing the

same.

That since the discovery and remedying of said defects and irregularities of said scales as hereinbefore described, said supervisor of scales and his assistants have regularly and periodically inspected and tested all said scales and have caused the same to be continuously kept in proper condition for the accurate weighing of livestock received at said stockyard of the defendant company. VII. That it does not appear that at any time since the installation of said State system of weighing at the sockyard of the defendant company as hereinbefore described, the defendant has not had the unhindered use of said scales and weighing facilities for any and all purposes of interstate commerce or any other purpose not interfering with State weighers in carrying out and performing their duties under the said chapter 40, Special Session Laws of Minnesota, 1919, as hereinbefore described.

VIII. That prior to the installation of said above-described system of weighing by State weighers employed by the railroad and warehouse commission, all weighing of livestock received and weighed at the stockyard of defendant company in South St. Paul, Minn., was done by employees of said defendant, and that, unless said State system of weighing be now and hereafter continued in use, and interference therewith enjoined and prohibited by this court, the said employees of the defendant company will hereafter do the weighing of such livestock received and weighed at said stockyard.

IX. That at the time of the trial of this action a majority consisting of six of nine directors of the defendant company were either employees or officials of Armour & Co. and Swift & Co., both of which are corporations owning and

operating large packing plants at South St. Paul, Minn., and customarily buying the major portion of all livestock consigned to and received at said stockyard of the defendant company and that officials and employees of said Armour & Co. and Swift & Co. were at the time of the trial of this action the owners of large blocks of stock of the defendant corporation. That said State weighers employed by the railroad and warehouse commission and engaged in the weighing of livestock at said stockyard during the time hereinbefore specified, and still so engaged, are prohibited by said chapter 40, Special Session Laws of Minnesota, 1919, from being in any manner interested in the handling, shipping, purchasing, or selling of livestock or in the employment of any person or corporation engaged therein, and are disinterested and neutral weighers of such livestock.

X. That Congress passed an act entitled "An act to regulate interstate and foreign commerce in livestock, livestock products, poultry, poultry products, and eggs, and for other purposes," which was approved and became a law August 15, 1921, and is cited and known as packers and stockyards act, 1921"; that the Secretary of Agriculture claims that the said stockyards of the defendant company came within the terms of the act and has given the notice thereof as provided in section 302 (b) thereof, and within 60 days after such notice the defendant company filed with said Secretary the schedules showing all rates and charges for services at said stockyard. That on or about November 30, 1921, the Secretary of Agriculture, pretending to act under the authority conferred upon him by said act, issued certain purported rules or regulations, the fourteenth reading as follows: "Every stockyard owner or market agency that furnishes weighing facilities at stockyards shall maintain and operate such facilities so as to insure accurate weights."

XI. That at the time of the commencent of this action and since said time the defendant and certain of its officers, agents, and employees have threatened and do now threaten to interfere with and prevent the State weighers hereinbefore described from performing their duties under chapter 40, Special Session Laws of Minnesota, 1919, as hereabove set forth; and that said defendant, its officers, agents, and employees, unless restrained, enjoined, and prohibited by this court, will hereafter and in the future interfere with and, if possible, prevent said State weighers from weighing livestock and performing their duties as aforesaid at the stockyard of the defendant company, which acts and interference all of said persons threaten to do and make unlawfully and under alleged authority of said rule 14 issued by the Secretary of Agriculture of the United States of America pretending and purporting to act under provisions of an act of Congress known as the "packers and stockyards act, 1921."

That interference with or prevention of the weighing of livestock at said stockyard by said State weighers under and pursuant to the provisions of chapter 40, Special Session Laws of Minnesota, 1919, would cause and result in a return to substantially the same method of weighing as prevailed in said stockyard prior to the installation of said State system of weighing livestock thereat and would result in irreparable injury to plaintiff

And as conclusions of law the court finds:

That the plaintiff is entitled to a permanent injunction restraining and enjoining the defendant company and all of its officers, directors, agents, seryants, and employees, from weighing any livestock not belonging to the defendant at said stockyard, which is sent thereto for sale, and from issuing any certificate of weight therefor and from in any manner preventing, obstructing, or interfering with the State weighers in the weighing of livestock at said stockyards and from preventing or attempting to prevent in any respect full compliance with the provisions of chapter 40, Special Session Laws, 1919, according to the prayer of the complainant herein, and

It is ordered that judgment be entered and that a writ of permanent injunction issue accordingly.

Dated February 3, 1924.
By the court:

ALBERT JOHNSON, District Judge.

MEMORANDUM

Six of the nine directors of the defendant company are officers or employees of Armour & Co. or Swift & Co. A majority of the stock of the defendant company stands on the books in the names of officers or employees of Armour &