, 1873-11-07
GRAlN-WAREHOUSlNG.
Report Of tho Committee on the lTougA
Elevator,
Tile Charges Proved.
Numerous Irregularities in the Business
Pointed 0nt-~-0Ifonses Against
the Inv.
Measures Necessary to Prevent
Fraud.


Fraud.
The following document was rcat1 to the DoAt,l
of Trade Of Chicago at noon yesterday, and will
ho considered at full meeting Of that body 1t
1 o'clock this afternoon. Tho document is n
highly important onc and t1io Colnmtteo do
serve tho thanks Of tho trado for having 30 woll
y performed tho duty imposed upon thom:
Charles +. Cafrer, Ksq., President:
SIN: Tho committed arpointed to investigate The
lonse a', u ' sessrs. il. Il. ~ g. iios "a. bee
1eayc 70 hand yom their report, atl the evidence on
volnnnois, covering number Of eolatcra1 Hhlecsa
70 eal rctlan from 1l,ak!ng uiy general summary Of
Tho roer,9,g e. IT, t. hn lsn 1 S en N
1iay lcsiro to aserian tn details. Wo aail cose-
qnensy cot1flno our report to mention Of thu
H. IT. i d. s. iotgh 4 Co., and to The coliatcra
facts ccite,l in the examination, with such concl-
siois an Remarks liz suggest themselves tn tho Con-
mtttee.
Sec. Is Of fho. Warehouse net, approved April 81
"A,y wnreho,tsen,an Of Any p,,hlie warehouse, who
ahnll be guilty Of Issuing any warehouse receipt for
n8 aucl warehouse receipt, or who shall le guilty nf
ssusng any warehouse receipt III any respect fralu
Tsnty Or grse seh brocrs m or wno
Fnsll remove t my rronsrty fr1m store except to
rcFetyt from nfe or other aaluen danger, without
Tho return and cancellation ct NIL outstanding
receipts thut mug hRSc eem Issued to represent hllel
property shall, upon conviction thereof, be deemed
ntler penalties prescribed by thin aei Imprisonment
n tlo enent,ars for nut leas thai olo and NIT moro
ThtH section Of tho Warehouse act clearly defines two
Ersve oenset-tlo issuing Of fraudulent warehouse
rsssir!s' an tho alippIng od grain By wasehorsemen
cefrta for the fill amount thus shipped.
TIT; Law nas uErH IaSoHrp.
Stephen oary, the State Registrar Of Warehouse Re-
s;IIts and John r. Allen, hs deputy, thHt hessre Ii.
!" IL e Se ti Il he ei aoers
61det of their b,ssilcs* fractfally ignored tho
h2 s , hs fS ~ so ason Of H. n @ @
dt,co of ailrry Nelson, embraced III tho testimony
Now, 10 ti,s specific violationB Of tho Warehouse
.tt aa alleged mud proved ngast tlie uoughB. They
t1nA1H s1i1rfEb WITHOUT CANCELLATIONS.
ftrsalls sylen:e isA sioWs tha On Or about The 18th
house receipts Tor tho graft. thus alrred out were
NOT returned am, cancelcd until some ten days or two
Srroni-Tlc evidence also Shows that on or about
tin a0th duy Of septembeE. 1879 tho scoouer Nabob
house receipts for tlts carso were not returned and
'anee1cd until tho weeks and moro thereafter,
and thcu INT until tile 1oughs Ind been advised by ho
Registrar that
cE1NlSA1 PROSECUTORS
Nere about 10 le commenced against oil elevator pro-
niictora ho Should remain longer III default w ileir
canceilat1ons.-hy order Of tho 1laroal and Ware
Th1ni--1t appears III evidence BY Edward H. Driver.
.ie 10Th day Of October, 1s73 rcsono r. N. Il o. s.
iIonyl Co.'S warel.onao receipts for sorue :e'uo
Ills then III their warehouse, tic grain repro
acntiug this deficiency having admitted in this eyi
nsS Z 6s Go on 1Gsn s.r s Wa 1 t. to- ,s f asgs @
Warelnso act, sec l6t In very explicit as to the tiea
4 pubic warcAo,lsecn in respect to Heated grain.
a',on Of sccs. 10 and u Of The Warehouse Aet.
EEcE1rra ron GRAM NOT STORED.
" sa casts u ? bs1 g. g. s. sRRni1 RRnss5 eEy sss % h
Adj, Charles cilstock drorgo 7. Becbe, aud Henry
Teynsr INT r' hS psE{e from e. atn 70 "a
cesatur owned by the chleago rlo,r!g Elevator Com
"riia5S:'Ss TAo ! c1Sisy, ,hs i. Aiams ats
mi tic " Metropolis Meme Of tic grain
eCs IL ,G ,,. % /, ;ss fo. M ws5s
sud every ono of tho cargoes of tho above ua,ea
snal.hty and the san'o Nero Registered by the state
know!cdGu his part of I'LL The facta, iE more with
Encouragement eststiug between tlle uoglis and
thei j,e n feSsns a1p % ns IL 1f&sf5sa s 1
-acton thu IL was sntcllftd til afford
nE1IEr rn THE riADE
and especially 10 td catlal cllBt0ters Of the 1Io,g
Elevator. Ihla may seem paualbo enough when tits
not remembered that corn exchanged for simple ware
Ees, Is sometimes irrcsisihy cheap. It Ia Htate f,y
the Reglstrar that, condition. to this arrangement,
the iouehs to pllrcbnsu and cancel i torre-
spending quantity Ut their hcii dlssfaiiding receipts.
How STUN smell purchase was completed tlnes not
ee"nl elsar y tic testimony. At nil events ii
'! s"ya that sl!ry wert thus afforded The srse q tls
nssst:u!sr lot Of cors The Garg"ea Of tho NJ:
hSa!! TN & the 18Th sld lht - "Ss!i"h' & pi e eo Of
at, ori,otuut moment, ~ il wod Eetn, Ia nfhrd the
n'cc:tary means for Replacing t#e hesitihls rertta.
ne cancellation indetednrss uf tle llMCts waa thus
foated nlhuB utsll curly n October, At Whcl nG
account Of damaging public rsunort,
TIT: pfLIsQufSff pF Iltr .!inCuis
M u"' .s. ~ H. ~ set'.s y. ,: a'l naenl ~
"is1 .. ] as ~ tM!n n!aRs u ,1e c",
@ ! ti n.e sn wnet, ~ not
Cu'AiiIttclAt Integrity.