Los Angeles daily herald., 1888-09-01
WASHINGTON.
An Inquiry Into the Cotton
Bagging Trust.
CONGRESSIONAL PROCEEDINGS.
Senate Finance Committee Sweat
Over the Proposed Tariff Bill.
Capital Cuttings.
Associated Press Dispatches to the HERALD

WASHINGTON, August 31.-Anderson
Gratz, of st. Louis, was called as the
first witness before the commission on
Manufactures to-day in the inquiry as to
the alleged cotton bagging trusts. He
said the variation in the prices of two
pound bagging from 1877 to 1887 had
been from 1034 cents per yard in 1877, to
liz cents in 1880, and "a in 1887. The
price OF Jute butts had been lower this
August than any August price for the
last ten years. The price Of cotton bag
ging during August varied from IL to 1211a
cents per yard.
A number Of contracts between W t.
ness firm, as agents, and other cotton
bagging firms in the United States were
produced with the view of showing the
steps taken by cotton bagging manufac-
turing firms to control production and
provide for its sale at stipulated prices.
| The object of the agreement was to en-
able the parties to it to obtain and main.
tain control of the cotton bagging pro.
duced in this country for the present
season. The trust has secured control OF
about two-third of the bagging in the
country, the remaining third, about
fifteen million yards, being produced by
persons who are not in any way connect
ed with the trust.
The contract shows that the agreement
is between the firms of Waterbury & Co.,
OF New York City, the party of the first
part, and the Charles Bagging Manufac-
turing Company, Nevins u Co., of Bos.
ton, the New York Bagging Company
Eagle Mills, Southern Mills Baggine
Company, Standard Mills Bagging Com
pany, Luncie Bagging Manufacturing
Company, the parties of the second part.
The parties of the second part have
agreed to sell and deliver to L. Water.
bury & Co. all the bagging they had Oh
hand when the contract was made, and
such as might thereafter be acquired OF
manufactured by them during the year
Waterbury q Co. act as the center of COR.
respondence through which the increase
and reduction in price is brought about
1t is agreed that the profits and losses
shall be shared in proportion. The sale
and prices of cotton bagging are deter
mined by a majority of the members o.
the second part.
| The agreement took effect April 10th
last. Since then two of the mills, sign
| ing the agreement, have failed to start
and probably dozen or more outside OF
the trust have closed down previous tc
and since the agreement was eliminated.
The first set price of cotton bagging was
made in New York. by the trust about
| the middle of July, at the proposition OF
| the witness. Nine and half cents was
| then fixed as the price. On January Isl
| the productive capacity OF Warren Jones
and Gratz in conjunction with several
| firms which they represented, was two
thirds of all the productive capacity o
the South, but they actually produced
Sc veu-eighths of all that produced in the
South.
Since the price fixed in July, the mem
bers of the trust had advanced the price
of cotton bagging to ten cents yard
The present price of cotton bagging in
this country is three cents higher than
that ct which the foreign manufactured
product can be brought here, inclusive o
freight charges. This was due to the
fact that the production of material in
this country was confined to few firms.
Probably go per cent. of the bagging was
in the: hands of retail dealers, and the
other 40 per cent. in the hands of the
manufacturers.
If the duty on bagging and jute was left
and jute was left unchanged, witness
thought the trust would 90 out Of exist.
ence, and if those articles we're admitted
free the firms would run corner every
other year. The needs of the planter
was absolute and imperative, and he
must have bagging, no matter at wha
cost. During the last three or four year
there was little bagging imported, the
domestic supply being equal to the de.
mand.
Charles A. Pearse, of st. Louis, Secre.
tary OF the Standard Bagging Company
one OF the concerns embraced in the
trust, assented generally to the testimony
given by Gratz, and the Commission ad
journed till tomorrow.