The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1888-09-01
BAGGING A TRUST.
Testimony of Anderson Gratz
on the Subject.
-CORNERING THE MARKET
The ReartIeks Course of the Cotton
BsgglnR Trust How 1T Has
Raised Prices.

WASHINGTON, August 31,-Anderson
Graft, OF st. Louis, was called as the
first witness before the House commit
tee on manufacture to-day, on the
inquiry as to the alleged cotton-bag
cling trusts. He said the variation in
the prices of two pound bsgging from
1877 to 1887 had been from 1917 cents
per yard in 1877 to liz cents in 1880
and IA cents in 1887. The price of jute
and butts had been lower this August
than any August price for the last ten
years. The price OF cotton bagging dur
lug August varied from IL to 1917
cents per yard. a number of contracts
between the witness firm, as agents of
other firms and other cotton bagging
firms in the United States was produced
with view to showing tbs steps taken
by the cotton baggipg manufacturing
firms to control the production, and
provide for its sale st stipulated prices.
The object of the agreement was to en-
able the parties TO it to obtain and
maintain control OF the cotton begging
produced in this country for the present
season. The trust hes secured control
VI dDOuL IhO-SHliOo VA l1o CoG-
ton bagging in the country,
the remaining one-third, about
100000 yards, being produced by
persons who are not IN any way con-
nected with the trust.
THE CONTRACTS SHOW
that the agreement is between the
firms OF L. Waterbury & Co., of New
York City, party of the first part, and
the Charleston Begging Manufacturing
Company, NeVius & Co., Boston, New
York Bagging Company, Eagle Mills,
Southern Mills Begging Company,
Standard Mills Bagging Company,
Luncie Bagging Manufacturing Com
pany and the Empire Bagging Com
pany, parties of the second part.
The parties of the second part agreed
TO sell and deliver to L. Waterbury d
Co. ali the bagging on hand when the
contract was made and such as might
thereafter be acquired or manufactured
during the year 1888, Waterbury & Co.
to act as the centre of correspondence,
through which the increase aud reduc-
ton in the price is brought about. 1t
shall be shared In proper
ton. The sale and prices of
cotton bagging are determined by the
majority OF the members of the second
part. The agreement took effect
April 16. Since then, two mills signing
the agreement have failed 70 start and
probably a dozen or more outside OF
the trust closed down previous to and
since the agreement was c1nsummated,
The first set price OF cotton bagging was
made in New York by the trust about
the middle of July. At the proposition
of witness, 915 cents was then fixed
as the price. On January LIST, the
productive capacity of Warren, Jones
& Gratz, in conjunction with two firms
which they represented, was two-thirds
of sill the productive capacity of the
South, but they actually produced
seven-eighths of all that prodU ced in the
South since the price was fixed in July.
The members OF the trust mad
ADVANCED THE PRICE
of cotton bagging cents per yard. The
present price on cotton bag
ging in this country is cents
higher than that at which
the foreign manufactured product car
be bought here, inclusive of freight
charges. This was due to tie fact that
the production OF the material in thi;
country was confined to few firms
Probably 60 per cent. of this years bag.
ging was in the hands of retail dealers
and the other 40 per cent. in the hands
of manufacturers, and the duty on
cotton bageing and jute was left IN
changed. Witness thought the trust
would go out OF existence and II those
articles were admitted free, the firms
would run q corner on it every other
year. The needs Of the planter were
absolute and imperative, and he must
have the bsggipg no matter what il
cost. During the last three or foul
years there was little hagging i'm ported
the domestic supply being equal to tn;
demand.
Charles A. Pearse, OF St. Louis, secre
tary of the Standard Mills Bagginf
Company, one Of the concerns en-
braced in the trust, assented generally
20 the testimony given by Ora z.
The committee adjourned till to-mor'
TOW.