Omaha daily bee., 1888-03-29
ALavIcss f1nmb,nntion.

WlJnln bne past zen uuYS ONeT OuS
hundred Of the grain dealers owning
grain elevators on the various lines Of
the Burlington system in Nebraska,
have organized themselves into trust
with an authorized capital of five mil
lions. This elevator trust" has been
formed in palpable violation Of the act
passed by the last legislature prohibit
ing pooling and other combinations by
grain and cattle dealers. The act re-
ferred TO makes it unlawful ''for any
grain dealer or grain dealers, partner
ship, company, corporation or associa-
tion OF grain dealers, or any other per-
son or persons, partnership, company,
corporation or association, to enter into
any agreement, contract, or combina-
tion with any other grain dealer or
grain dealers, partnership, COM
pany, corporation or association
OF grain dealers or any other
person or persons, partnership, COM
pany, corporation or association, for the
pooling of prices Of different and COM
peting dealers and buyers. or to divide
between them the aggregate or net pro-
ceeds of the earnings Of such dealers
and buyers, or any portion thereof, or
for fixing the price which any grain
dealer or grain dealers, partnership,
company, corporation or association OF
grain dealers, or any other person or
persons, partnership, company, corpora
tion or association, shall pay for grain,
hogs, cattle or stock OF any kind or ma
ture whatever, and in case OF any agree
ment, contract or combination for such
pooling of prices of different and COM
peting dealers and buyers, or to divide
between them the aggregate or net
proceeds of the earnings of such dealers
and buyers or any portion thereof, or
for fixing the price which any grain
dealer or grain dealers, partner
ship, company, corporation or associa-
tion of grain dealers or any other per-
son or persons, partnership, company,
corporation or association shall pay for
grain, hogs, cattle, or stock of any kind
or nature whatever"
The second and third sections of this
act further define the various methods
of combining for the purpose of fixing
prices and pooling earnings, and de-
clare such acts to be misdemeanors
punishable by fine or imprisonment, as
the court in such cases may de-
eide. Parties entering such combina-
tions are also made liable for damages
caused to any party that may sustain
loss through the operations Of such un-
lawful pools.
The five million dollar elevator trust
has evidently been formed with the
view to evading the penalties imposed
by the act of 1887. The pretense under
which the partners in this unlawful
combination will seek to circumvent
the law is that they have formed no
pool and entered into no combination
with any company. association or dealer
for division of profits or for the con-
troll and regulation of grain rates. The
trust" they will assert, is corpora
tion doing business at every point
where its grain elevators are situated.
These elevators no longer being the
property of various persons or firms,
there is no combination or pool between
these various dealers in grain, who now
have become stockholders in one corpo-
ration, managed by one set of officers
under uniform bylaws.
This is whipping the devil around the
stump. The "trust" is nothing more nor
less than a gigantic combination of
dealers in which profits are divided ac-
cording to the value of the property
turned in by each, while there is no
pooling between the elevator "trust" and
other corporations or firms, the profits
Of the elevator trust depend largely
upon its power to destroy competition.
With all the elevators on the Burling-
ton lines south of the Platte, inside
of the grain trust, the price
which grain will command in that Sec
tion OF the country will be absolutely
fixed by the new combination. If the
elevator trust is not an unlawful combi-
nation to prevent competition in grain
traffic and control the price of Nebraska
products, we are at IA loss to comprehend
the intent of the law makers and the
plain language of the law.
g.