The Republican journal., 1886-04-15
How Farmers are Swindled.

THE BOHEMIAN OAT SCHEME AND OTHER
FRAUDS PRACTISED ON THE FARMER.
'Dshonest schemes have been numerolls,'
says report of the statistician of the Depart
ment of Agriculture, speaking of frauds upon
farmers, ''yet there is one of more 'hideous
mcin' than many others; emboldencd by sue
cess, still, more persistent under exposure for
tfying itself anew when driven from its en-
trenchment it is the fraudulent commerce in
Bohemian oats" This fraudulent commerce.
the report says, has lived from year to year,
and extended its operations from state to state
under a calling fire of the agricultural and local
press. The department has made inquiry into
the extent, the geographical distribution of this
prolific crop of fraud, for the benefit Of farmers
in states and countless into which it has not vet
penetrated. Correspondents report the attempt
in some form to sell this grain at eXhorbitant
rates in twenty-five states, and the presence of
the agents of the organized swindle in eighteen.
Ohio is the center of the infection, which has
spread to Indiana, Illinois, Michigan, Wiscon-
sin, Minnesota, and other western and south
western states. while reports show also at
tempts in New York, Pennsylvania, and New
England states.
Altogether there are one hundred and thirty
counties where this fraud is reported, and, it is
possible, and, indeed, probable, that complete
report would reveal its existence in two hum
lred counties. The fraud appears to be entire
ly unknown in many districts, especially in the
south, which may soon be invaded by an army
of depredatorS.
THE MODE OF OPERATING
is described as follows:
A
of some distant company appears in the neigh
borhood and proposes to organize company
or association Of farmers for the growth and
sale of this grain. He strikes at the outset to
draw into this enterprise some man whose
name will have weight and influence with 9TH
erS to be approached. thus inspiring confidence
iii his scheme and averting that critical invcst-
CATION which would inevitably be fatal to its
success. The company being formed, it is or
ganized under the local laws.
The members of this association are to mon
opoIize, for wear or two at least, the produc-
ton The grain is furnished, generally in guam
titles of not less than ten bushels. TO any one
member. at $40 per bushc, for which the farm
cr gives his note, payable with interest in
twelve months. He might hesitate. fearing his
inability to reimburse himself for this outlay,
by the sale Of the produce of this seed, but the
agents scheme is reassnrng; he offers, on be
half of his company, ''a bond" in which it
agrees to sell (hut not to buy) twice the guam
tty of oats purchased, at $40 per bushe, less
TWENTY-FIVE per cent. commission, on or before
a certain date, usually month prior to the
date at which the note natures. Thus, if he
gives his credit for Sl0O he expects to receive
5000, minus 500 as commission, and thus make
so clear before the payment of a dollar. In
fact, however, he gets IA note which runs anoth-
cr year before collection. There is usually a
pretense of limiting sales, in order to convey an
idea of monopoly.
THE SECOND YEAR.
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fraud is usually EXPOSED in the second season.
if not in the first, leaving the first growers re-
imbursed by becoming swindlcrs themselves,
or engaged with numerous lawsuits with fel-
loW-farners who have been sWlnded.
The losses that have accrued, the report says.
are already immense; these returns do not give
them, except in Il few Instances: it would re-
quirc further time, and prove difficult under
taking, yet 1t Is claimed that III some counties
they would reach $4,000. Probably 100000
would not cover them i'll ONO, and possibly the
aggregate for all the states would reach several
hundred thousand dollars. a loss OF 500 by
one man is common, and some cases are re-
ported of II 900.
The returns relating to quality represent in
variably that these Bohemian or hulless oats
are of inferior quality, not worth as much as
ordinary oats As the name Bohemian Is be-
coming somewhat notorious. other varieties or
new names for the old variety are beginning to
appear. Pretended new varieties of wheat are
being offered for sale ut high prices, the wheat
as high AS Sl5 per buShel, and upon the same
plan rs has been followed with bohemian oats.
1t is not necessary, the stati>tirian says, to
know anything of the quality of the grain
offered on that plan to understand that these
schemes are fraudulent, because plan which
presuppoSes that the crop can be sold year after
year ut the same price aS the seed, when the
latter is twenty or thirty times the ordinary
market price of the grain, manlfeSts papabc
lack of common sense.
OTHER FRAUDS UPON FARMERS.
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f,rr a. 3nhina ~ ~ souo of IN" artIes