Morning herald. [volume] (New York [N.Y.]) 1837-1840, 1837-11-28

correct intelligence on the subject of bread stuffs IN
this country-ws gave few days ago very lmpor-
tant communication from an intelligent correspond
ent at Rochester, revealing the secret history OF the
Flour trade since the opening of the great west py
the construction of the Erie Canal we now annex
several letters from the same correspondent OF
highly interesting character.
We have long suspected the existence OF some such
SYSTEM bat before this time we never ceuid Jay
eur hands upon the facts. We ars promised iur'her
developements by our correspondent, ana rom ms
means of information, we have no doubt ne VIII give
ss the facts with accuracy. We have every reason
TO believe some similar system exists IN every wheat
growing district and that the large cities ana
towns are taxed by this combination, probably Sio,
600 900 per annum beyond their real value In bread
stnffs 1t will be recoected that no falures-no re-
yulsion took place in the flour trade, when the dealers
in manufactures fell in bulk last SPRING Indeed tne
only safe business doing by the banks is That win
the -four Dealers the mllers the forwarders the pro-
vision purchasers the drovers the cattle Dealers &C.
&c. In those lines of business fortunes are connu
ally making-vast profits realzed-and great luxury
INDUCED. In our large cities, the credit press-the
Wall street press-are bound hand and foot 20 these
forestallers-and the public are deceived daily with
the belief Of short crops-hgh prices, and dread oil
famine.
New who are the sufferers by this secret system,
which operates on the consumers of this land more
heavily than the Infamous Corn Laws do on the po-
pulation of England! The merchants manufacturers,
artisans, mechanics, and laborers OF our cities and
towns What is the remedy? This is more difficult
of solution. Something ought to be DONE but what
il difficult TO ascertain The best method, however,
to set alb ,ut doing something IL to call popular meet
ngs of all classes of society, in our cities and towns
to collect facts the subect-to ascertain the root
of the evil-and If possible reduce the consumption
of -four by the substitution of other articles OF food,
till the flour monopoly shall fall by its own corruption
and mscalcuation. AT present the banks are the
chief supporters of the combination, and this point
ought to be a subject Of nvestigation-by the next
legislature
In the business Of cattle dealng-the drovers trade
the same system prevails, and some of the banks OF
this and other cities administer to the assistance of
monopolists.
These extensive csnfederacies of dealers in parti
c-lar business arc of the evils of the banking
system. Credit is its weapon. majority of dealers
and bankers unite to monopolize and share partcu-
lar business All Independent dealers, who will not
come into the confederacy, are broken down and
trampled in the dirt. This gives the whole field to
the conederates. This system existed in the cotton
trade before the last revusion-andit will be renewed
again by the southern banks in less than year. 1t
has existed for years in the newspaper business unit!
we started the Herald independent cash system,
and from the patronage Of the honest public, we are
enabled to tell 'the uuth-the whole truth, and no.
thing but the truth ir spite of all the banks and mo-
nopolists of all kinds that ever lived.
Call public meetings, and appoint committees to
inquire why flour and provisions are so dcari
ROCHESTER, Nov 81, 1887.
This communication has been delayed by other
pressing engagements-hut better late than never
perhaps In my last | told yeu that the main
spring. OF the Flour monopoly was situated here and
promised give detail of the modus operdndie OF the
nonopo zers.
The monopoly that regulates the price Of the
bread eaten by the poor widows the fatheress chill
iren. and hard working mechanics and laborers of
your city, is probably of the most extensive and
we'll regulated combinations ever organized IN any
country 1t has been understood here for years, bat
corrupt partisan press dared not to expose the mys-
terry of lnquity."
This combination embraces the nillers, the for
warders on the Erie Canal and the banks. The COM
bina,ion between the mers and ferwarders originated
some years ago, and in the following manner: The
wheat growers for a distance of fifty miles around
Rochester were in the habit of bringing their wheat
10 this CITY in Wagons. The nlllcrs were competi-
tors for It's purchase and thus frequently run il up to
A high price, The mcrs from Troy and other
towns in the part of the state Also frequently
came into our market as purchasers Of wheat. The
mers would often ship their flour by transient or
private canal boats at less than the rates of the regis
lar lines. To retaate upon the miers, the forwarders
would come into market as wheat buyers, and ship IT
ia the berry 10 Troy.
You will thus see tina, free and full competition
existed in the grain market and in the transportation
business upon the canal You will also see, that the
nillers to secure monopoly OF the wheat market,
must drive oil the Troy and other purchasers
and also prevent the forwarders from becoming wheat
secure monopoly of transportation on the canal,
NUT drive off the transient or private boats.
To accomplish these results combination was
formed some years ago between the millsrs and for
warders upon the following basis: THE mlers agreed
give the freishting of all Their flour to the combined
forwarders at certain stipulated prices, prorided the
orwarders would covenant not 10 ship wheat in the
berry, except at prices that eastern miller could
AFFORD to pay.
This agreement was entered into, and Il succeeded.
Eastern wheat buyers were driven from our mar
ket and private boats almost driven from the canal.
The mers enjoyed an entire monopoly Of our wheat
market and the combined forwarders regulated the
prices of freight upon the canal.
The first effect of this combination was beneficial
10 tho consumers. The monopolists kept the price Of
wheat down TO from 81 to 81 cents bushe, for
several years. But the farmers became restive-pub-
lie meetings Of wheat growers were held and the COM
bination was Denounced. The farmers threatened to
establish new lines of boats and 10 build mills for the