The Kansas City Kansan from Kansas City, Kansas • Page 1

11 Volume HL KANSAS CITY. KANSAS FRIDAY, JULY 12, 1918 NUMBER 80 KAHSIN hours, when there should be three to PACKERS PROTEST IT IS IL ALLEI II CONTRACT TEST present action along that line until the court of last resort in our state decides the mater. With reference to the City being of the opinion that the "Public Utilities Commission has control of such matters, can say that the City has never been 'of such opinion, however, be that as-it may, we are now dealing with the present. You had a right to file your application when and where you smallest margin of profit of any business of national consequence and that because of its efficiency and organization, it has served well both the producer and the consumer in peace times and now that the nation is at war, it has been able to meet the unusual demands made upon it better has any other pre-war industry. These facts will be demonstrated by any impartial investigation and they are submitted to.

off-set the prejudice which might arise from the unjust charges and misstatements of the Federal Trade commission. Ron on Smallest Margin in Business Armour Man Says. CHARGE UNFAIR SLAP BY U. S. R.

D. MeManus Says Facts Were Pre verted and That Capital Stock Doe Not Represent the Investment. To The Kansas: The charge of profiteering made against the American. packers by the Federal Trade Commission, is not true. The fact that the Commission alleges monopoly does not bear out the charge.

The importance that should attach to the Commission's charges is best indicated by the tendency of its members to gain political preferment by attacks on big business. It is notFauI Ditzen is her attorney. Other surprising that the Commission's charges have been made with more regard for their effect upon the' public than for the facts in the case. The Commission says that because the Packers' profits are large they are unquestionably profiteering. Profits are large or small only when considered in relation to the size of the business on which they are earned.

In the case of the five lending nark- ers, the profits for the past three years amounted to $140,000,000 on sales aggregating nearly five zillion dollars. That mean3 less than three cents on the dollar. It is a smaller rate of profit than is enjoyed by any other large business in the world. The profit on the actual invested capital is not out of accord with capital invested in other lines of business and is smaller than is usual on businesses which deal in highly perishable products subject to seasonal fluctuation. It' is a perversion, of facts when the Commission tells the public that one of the packers make as high as 263 per cent The investment of the packers is not "necessarily the amount at which they are capitalized and none of the five largest packers is capitalized for the amount actually invested.

Instead of watering their take care of the traffic, so that pas sengers cduld ride inside the cars and not on top. Under these conditions we think the company could not come to the, city and ask for an increase of fares with clean hands. T. As far as the action of the Public Service Commission of Missouri is concerned, we have no control over that matter and are not making any fight or complaint as to any order said commission may make, but we invite ypur attention to the dissenting opinion written by Judge Bean, ex-judge of the circuit court of the State of Missouri, and a very competent and able man, and call your attention to the fact that the minority even is sometimes right. Will Continue Fight.

If it is your intention to charge six cents in Missouri and six cents to all Kansas passengers boarding the cars in Kansas City, Missouri, and to collect an extra cent after crossing the State Line from Kansas passengers, to which the City pro tests, and will strenuously object, you would then be getting within a very small percent of six cent fares on your total business, as only about thirty per cent of the Kansas passengers fail to become interstate passengers, and as the Kansas business as a whole does not pay sufficiently to operate the car, according to your statement, you would lose only one cent a passenger on thirty per cent of the small amount of traffic done in Kansas City, Kansas. And regarding the Kansas passengers and the amount of traffic done in Kansas City, Kansas. And regarding the Kansas passengers and the amount credited to Kansas business and the manner in which it is done, while we are not making any complaint as to how you keep your books, but seventy per cent of the passengers in Kansas are inter state passengers in going from Kan sas to Missouri they pay their fares the fares are credited to Kansas busi ness, all of these passengers who are residents of Kansas City, Kansas, and whose fares should be credited to Kansas business board the cars in on their return, homeland their fares are credited to Missouri business, the' result is that the Kansas business only gets credit for one half of the fares that are paid by seventy per cent of the Kansas pas sengers. The reverse would be true of course to the Missouri passengers coming to the State of Kansas but the amount of travel from Missouri to Kansas is very small and does not balance up with the Kansas business that goes to Missouri. We regret that these conditions ex ist, but we shall continue with what ever litigation is possible to protect what we claim is our rights in this matter, and if as indicated in your letter, an attempt is made by your Company to punish the people of Kan sas City, Kansas, (which by the way we are inclined to believe you will never do), the city will try to find some legal, remedy by receivership or otherwise to protect the people of this city.

Regretting the conditions and hop ing that things will be made smooth in the near future, we are, Very respectfully, THE CITY OF KANSAS CITY, KANSAS ByH. A. MENDENHALL, Mayor. Buy ORDINANCE NO. 15624.

An ordinance relating to the salar ies of the food inspector and the fum- igator, in the health and sanitation department. Be It Ordained by tb Esard cf Gta ciLuioners of th City Hcsssj City, Kansas. Section 1. The salary of the food inspector in the health and sanitation department shall not exceed $1320.00 per annum, payable in equal monthly installments. Section 2.

That the salary of the umi gator in the health and sanitation department shall not exceed the sum per annum, payable in equal monthly installments. Section 3. All ordinances and parts of ordinances in conflict herewith are hereby repealed. Section 4. This ordinance shall take effect and be hvforce from and after its passage and publication in the of ficial city paper.

Passed by the Board of Commis sioners, this 11th day of July, 1918. i 7 HOWARD PATHS, Clerk. Approved July 12, 1918. 4 H. A.

1IENDENHALL, IXayer. (First published July 12, 1918.) to to stock, they have permitted it to re- AWUI inat men wimoui a iamny main at nominal figures, which fact -uh have to first- he dismissed has been taken advantage of by the he proceedings and begged commission. to take lfim back so ne would no The public is entitled to know all avf to go to war. Thompson, Mc-the facts regarding packers' profits i Canles and Gorsuch are her attorneys. New Sort of Political Meeting on Huron Last Night.

DEMOCRAT BOOST REPUBLICAN With Rlference to War Work of Some Sprt People Will Vote on All Public Offices This Year. If. last night's meeting in Huron Park is any criterion Henry Allen should be the next governor of Kan sas. One of the remarkable and pleasant things about the occasion was that the arrangement committee didn't load it down with speakers to precede the main program. That's unusually dene.

Another thing was that Gov. Bailey and Dr. Jenkins together spoke less than an hour and a half, which is unusual, most political speakers considering it a duty to talk for an hour to two hours. Neither one was a paid speil binder; each believed heartily in the man, and one' was a Democrat and a minister talking- in behalf of a Republican candidate. The crowd was as big as could com fortably hear an outdoor speech, estimates varying from two to three thousand.

It was a new sort of poli tical meeting and it looked like people are going to vote with direct reference to the war on every thing -this year. And in hearing about Henry Allen they wanted more particularly tr hear about the war where the boys from home are. It was a dandy meeting both as to Henry Allen for governor, and Kansas attitude toward the war. Buy ROTARIANS TO FORT SCOTT. Twenty-Five K.

Members Will Attend New Club Installation. Twenty-five members of the Kansas City, Rotary club will go to Fort Scott tomorrow to present the new Fort Scott Rotary club its charter. Dr. Ctement Williams of the Kansas City," club organized the Fort Scott club and members of tho club here and across the line in Missouri will go down to see the launching. Some of the Kansas City, Ro- tarians will motor starting at noon, and others will go by train starting at five o'clock.

Buy LEE WILL TELL YOU THE TIME. Bell Phone Won't But Call Bell West 1055. The Bell Telephone will on July 15th, abolish the custom of furnishing its patrons with the time by 'phone. You can receive the correct time from C. I.

Lee, Jeweler, 516 Min nesota avenue, Kansas City, Kas. Call Bell 'Phone West 1055. Adv. Buy RED CROSS SU31MER SCHEDULE. No More Wednesday Work Nor Night Surgical Dressing.

Wednesday Red Cross work at th city hall will be discontinued during July and ugust. And during the two months there will be no more surgical drcvping work at nights. --Buy 8 When a fine cook is entertained at the home of another good cook, she cannot wait to return the hospitality, and go her hostess one better. Buy If George Washington were alive to day, and would cut down a cherry tree, he probably would not admit it be cause his lawyer no doubt would tell him to do the expedient thing. Buy NOTICE TO BIDDERS.

Sealed proposals will be received by the Purchasing-Agent, City of Kansas City, Kansas, at his office in the city hall, until 10:00 o'clock A. Tuesday, July 16th 4918, for the following: Will sell 2 horses and 2 mules to the highest bidder. These animals art the property of the Light Department and may be seen at Tenth and Mun-cie Supply Yard. All trades cash. Each proposal must be accompanied by cash or certified check payable the city treasurer of Kansas City, Kansas, in the sum of twenty-five ($25.00) dollars, as guarantee to be forfeited to the city should bidder fail enter into contract at once, subject to the approval of the board cf commissioners and they reserve the right to reject any.

or all bids. A. C. RIDDELL, Purchasing Agent. (First published July 11, 1918 3-c) City Says That's Point at Issue in Fare Fight.

A NEW FARE NEXT MONDAY. Predictions Are That There Will Be Some Slight Scrapping at the State Line Over the Copper Collection. Beginning next Monday morning street car. litre in jviuuaas vsity, will be six cents. It will be five cents in Kansas City, provided you don't go across the State Line.

It is the announcement of the street car company that going easti conductors will collect an extra penny at State Line from all passengers who have paid a five cent fare in Kansas A good deal of confusion and probably not a few scraps between passengers and car crews will result for a least. The answer of the city to President Kealys letter of Tuesday was mailed last night and in full reads: July 11, 1918 Kansas City Railways Company, 15th Grand Avenue, Kansas City, Missouri. Gentlemen: 1 Your letter of July 8th, signed by Phillip J. Kealey, has been received and given careful' consideration. In such letter you suggest that serious situation for the Kansas pa trons, as well as the company and its employees, exists, because of the fact that the city is objecting to the Public Utilities Commission of Kansas hear; ing and passing upon the proposition for relief to be granted you in the shape of six cent fare in You likewise state in making your appli cation to the Public Utilities Commis sion you are following, the law of Kansas as you interpret it and as city has interpreted it in the past, an call our attention to the disastrous consequences of" city '3 attitude and enumerate the advanced cost of supplies, labor, fuel, and call our attention to the letter of President Wilson; and state that the car riders in Missouri have been paying for the excessive service in Kansas City, Kansas, a condition which you state should never have 'existed and which can no longer continue; and stating that it is impossible for you or any one to continue a service which actually costs more than is paid for it; and calling the city's attention to the shortage of labor; and state that, in as much as the Missouri Public Service Commission have granted your increased fares that it is your intention to increase the wages, of the trainmen in Missouri but not in Kansas, and the effect of so doing would immediately reflect on the Kansas service; and state that in your opinion the people of Kansas City, Kansas, are not opposed to paying the cost of street railway service in this city.

Threat to Punish K. K. While we regret very much to say it, we are compelled to understand your letter in no other way except that it is a veiled threat to the Commissioners of Kansas City, Kansas, from one qi the principal utilities of the city that unless the commissioners of Kansas City, Kansas, acceed at; once and now to your demands you intend to punish the people of Kansas City, Kansas, and demoralize the serv ice (such as it now is) and finally to compel the City Commissioners by such methods, to acceed to your request. As we said before, we regret that We are compelled to. consider your letter in that light.

In answer to 'some of the above statements we say that the" City of Kansas City, Kansas, after serious consideration has concluded that the City and not the Public Utilities. Com mission have jurisdiction in the matter of rate fixing in Kansas iCty, Kan sas. We are satisfied that the City has a just and valid contract with the Street Railways Company in regard to rates, and that no one other than the City of Kansas City, Kansas, ha.s right to change or modify that con tract, and besides the City of Kansas City, Kansas, is of the opinion that the Public tUilities Commission has no right or jurisdiction over the. street railway system in Kansas City, Kan sas. Ana to sustain our ngnts we have proceeded in the ordinary and legal course of law to ascertain for ourselves where we stand and whether or not the City or the Public Utilities Commission has control of the street railway company in Kansas City, Kansas; and we will continue our and methods of doing business but in the present instance their chief and chose.

This you did; And as a mat ter of right we are pursuing an ordi nary and regular proceeding to protect the rights of the City in this matter. President's Letter. You refer to President Wilson's let ter, with which we are familiar, and we take this occasion to say that the city officials of Kansas City, Kansas, are just as patriotic and as willing to uphold the hands of the President, and do any and all things to help and aid in winning this great war and to relieve the Government in this present crisis as the -officials of anypublie utility, not excepting any. But ths President's letter says to assist pub-lie utilities in every way possible where warranted. And we are of the opinion that President Wilson must have been familiar with the street car conditions in Kansas City, Kansas, consequently he used the words "where warranted." You call the city's attention to the fact that the street car sysem in Kansas City, Kansas, is not self sustaining.

In regard to this we have no figures except those furnished by your company, but if the only thing necessary to make a street car line profitable is crowded cars we are of: the opinion that the lines in Kansas City, Kansas, pay, if passengers is what make a street car system pay then they must pay, and to be con vinced you will only need to station yourself along the lines coming from the Armourdale district, or from Mis souri in the afternoon of any day an see the carsjfilled with people hanging on the steps and crowding on top cf the cars and any place they can get on, and the cars leaving the people by the dozens standing the corners that cannot find a foothold oil the cars And' this condition has been main tained in Kansas City, Kansas, since lone before the war was declared against Germany and before there was shortage of labor caused by such war. Dig Up Bond Circular. We have before us Circular No. 1251 printed July 1st, 1918, by Halsey, Stuart Conroanv of Chicago, in which they print the financial state ment of the Railways Company for the purpose of floating bonds or gold notes in the amount of $7,750,000.00 retire $6,259,000.00 of three year 5V2 gold notes due July 1st, -1918. In said circular they copy an extensive etter of Robert J.

Dunham, Chairman of the Board, in which he gives statement as follows for the year ending December 31st, 1917: Gross $8,005,955.37 Operating Expenses, in cluding maintenance taxes 6,282,686.52 Net Earnings. 1,723,268.85 Annual Interest on all outstanding first mortgage bonds and notes secured 1,398,370.00 Leaving for dividends or net 324,898.85 The citizens and officials of Kansas City, are as patriotic, reason able and just, and their sense of equity is as broad as any people, but where they have received service from the street car company during the past sixteen years and saw its franchise violated in every, essential provision during the entire period the Company now owing the city about seventeen miles of double track extensions under the terms of the franchise and while tney have in the past three years built 24 miles in Missouri and only 1U miles in Kansas, thereby discriminating against Kansas City; Kansas, and while they were to furnish under the terms of their contract, cars equal in style and pattern to any cars in use in any city of the United States they are still running in the streets of our city about, fifty of the old style cars No. 700, which are antiquated, dilapitated, unsightly and filthy; it has also installed one car system in the. city known as a one-man car which would not be tolerated in -any city of any size in the country. Arid the company is now asking the city to consent to the increase; of fares so that interest may be paid upon about $13,000,000.00 worth of bonds which have no value back of them and representing nothing but water, running one car in the jrush R.

D. McMANUS, For Armour Buy SUITS IN DISTRICT COURT. Ella Thomas filed suit against Elzy Thomas, for divorce in the district court. She alleges in her petition that they were married November 1, 1908, in Independence, and that the de fendant abandoned her in June, 1913. cases niea were: Louisville Fire Brick vs.

the Thomas Track Appliance for I $780, the purchase price of fire brick which they charge the defendant ordered from them but failed to pay for. C. D. Sharp is attorney for the plaintiff. John Aranda vs.

Nick Drezas and Mike Seaakas for ten thousand dol- lars damages for injuries he alleges he sustained June 15th at Twelfth street and Wyoming avenue, when a truck owned by Seafakas, who conducts a meat market at Third and Kansas avenue, run him down. The truck was driven by Aranda. Mc-Canles, Thompson and Gorsuch are his attorneys. Grace Pfanmiller vs. William D.

Pfanmiller for divorce. The petition states that they were married June 29th, 1912, at Independence, Mo. The Pfanmillers have one child, Edith, whose custody is asked for by the plaintiff. She charges abandonment since 1915 and that the defendant aiterr learing ner commenced a suit against her for a divorce, which was pending at the time of the registration for the first draft June, 1917. She further alleges that as soon as he 1 A.

4.1 A. '11 A Charlie Hatfield vs. Emma Hatfield for divorce. He charges abandonment since Jan. 16, 1917.

T. A. Milton is his attorney. Refugio Charez vs. Hejinio Charezj ior divorce, u.

o. Littick is this at torney. Anna Rohe vs. Frank B. Rohe, to set aside deeds.

Theoph L. Carns is the Plaintiff's attorney. Georgia Shoemaker vs. Howard Shoemaker for divorce. The Shoemakers were married May 4th, 1915 She charges gross neglect of duty and extreme cruelty.

Emerson and Smith are her attorneys. Eliza E. Florida vs. Harvey T. Flor ida for divorce.

They were married May 21st, 1903, at Minneapolis, Minn. She charges abandonment. D. C. Me Combs is her attorney.

Helen Smith vs. Fleischmann for $3,000 damages for injuries she alleges she received when her index finger was caught in a yeast machine at the defendant's plant. Emerson ana Smith are her attorneys. PUBLICATION NOTICE. In the District Court of Wyandotte County, Kansas.

Eugene Hayes, Plaintiff, vs. Rena Hayes, Defendant. No. 9582, Div. 3.

To the above named defendant: You are hereby notified that you have been sued inthe above entitled court and cause -and that plaintiff's petition is onfile praying for a divorce from you because of abandonment of said plaintiff by you for more than one year prior to the date of filing this petition and that unless you answer said petition on or before the 16th day of August, 1918, judgment will be rendered against you divorcing plaintiff from you for your fault and for such other relief as he may be entitled to in the premises. EUGENE HAYES, By STANLEY STANLEY, His Attorneys. (First published this 5th day of July, 1915 3-t) a only concern rests in the amount of profit which the packers realize from the sale of each pound of their product. The profit in the aggregate spells nothing to the individual; he is affected only by the amount of that profit which comes out of his pocket. It is a fact which the commission cannot deny and which government accountants can verify, that packers' profits represent approximately a quarter of a cent per pound of product.

In other words, when the consumer buys a pound of meat from his retail dealer, a quarter part of one cent out of the amount which he pa3 is profit for the packer. Yet by a camouflage of figures, the commissionwould have the public believe that the packers are preying upon the public. No sane man will contend that a quarter of a cent a pound is an unreasonable profit on a perishable product which has to be both manufactured and distributed by the firm which gets the quarter cent return. Further, it is a fact seemingly ignored by the Federal Trade commission, that since last November, packers have been limited as to pros its. They are not permitted to earn in excess of two and a half -cents on each dollar's worth of business transacted and the total profit on the actual investment in meat 'food lines must not exceed nine -percent per annum.

Government representatives have full access to the packers books and are in position to know that the profits have not been greater than prescribed by the regulations. The charge of monopoly is as far from substantiation by the facts as is the charge of profiteering. It is true that the packers have many interests in common but that is true in every line of industry, and it does not follow that their mutual interests mak the competition between them any less keen. The Commission does not follow up its charges of monopoly with facts and there are none that warrant the charge. The truth about the packing industry is that it prospers on the i.