Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1892-02-05
7HE OPTION QUESTION
O,,uvies the House Committee on Agri-
cultures Time.
ALL THE BOARD OF TRADE PEOPLE
mi Elevator Owners Strongly Oppose the Pro
p,ss5 Legislation and Show Wherein it
vii I9iare the Farmsrs-Mr. Hstch's
Very Pertinent Questions.

n
The oDponentS OF the anti-Option bill
had the floor to-day in the hearing be-
fore the House Committee on Agricul-
-pre. and Chicago and Minneapolis held
rbe bin would not benefit the farmers,
and would hurt the men who were en-
Gagged in business Of Supplying the de-
maud for grain.
Mr.. AldriCh, Of the Chicago Board OF
Trade, said the Board was heartily in
favor Of the bill so far as it related to
eDtfons as designed in the first section
nj the bin relating 10 fictitious sales.
Tbar kind OF trading had always been
illegal and not recognized, and the
Board had spent a great deal Of money
irving 70 procure enforcement OF the
STATE law on contracts.
He admitted that there was in such
large Board as at Chicago considerable
trading of a kind that could not oe up
held. II the best members Of the Board
could not tnd a way by which such
things as Partridge has the market
and is a great short seller" could be
made things OF the past, they would be
glad 70 do 50.
The system in operation was the result
1
was not something devised specially to
give an opportunity for dealings in fu-
lures. The Boards Of Trade, like the
Bank Clearing houses, were commercial
conveniences for the exchanges. Yes
terday the statement had been made
that offers 10 sell were many times
greater than offers to buy. That could
not be, Mr. Aldrich said. The declines
that came were legitimate aud due to
the supply exceeding the demand for
the crop.
A very large decline In grain prices
came recently but il could all be ex-
planned without resort 70 offers 70 sell
short.
Continuing Mr.. Aldrich said If the
bill under consideration passed 1t was
the most disastrous thing for farmers
that could happen and would deprive
them Of their system OF exchanges.
The consumers were 55 per cent. and
the producers As per cent. OF the popu-
lation, and unless the consumers were
prosperous and got their grain delivered
without great cost, the farmer could
not be prosperous.
In Chicago zoo, 900 bushels OF grain
wN daily received and formed the
basis on which business on the Board OF
Trade was done. If that grain were
Inverted elsewhere, the Board Of Trade
would close of itself without legisla-
tion.
Mr.. Hatch asked what were the aver
erage daily sales including fictitious
sales.
Mr.. Aldrich replied that he had never
made an estimate, but the sales were
very much larger than the quanty OF
grain received.
Mr.. Hatch-Are all your sales on the
Board Of Trade recorded?
Mr.. Aldrich-No, sir.
Mr.. Hatch-Is it not fact that the
Board Of Trade declined to record the
sales simply because they did not want
the country to know how many fictitious
sales were made?
Mr.. Aldrich-NO, sir.
MIR. Hatch-Hss not that matter oeen
discussed in the Board for years?
Mr.. Aldrich-I never heard 1t DIS
cussed and never knew OF 1t. Inc
Board could not make such reports
without putting an immense amount OF
work on the Brokers.
Mr.. Hatch-If this committee were TO
report a bill simply doing away with
fictitious sales, would it meet the appro-
bation of the representatives. OF the
Board OF Trade at Chicago?
Mr.. Aldrich-I have not doubt OF II.
Now In regard to these privileges II
contract is based on privilege ana 10
comes before the Board it is thrown out
al once. Privilege trading is dangerous
and no one could enforce such con
tract. such as one Of Partridge'S calls.
Such sales were not permitted IN tue
Board room but were sold outside
Mr. Hatch--"And yet, by unWrltten
custom, man who pleads a gamoling
contract stands in the same relation as
a man who goes back on gamuing
debt"
Mr.. Aldrich-''YeS, sir"
A. ]. Sawyer, one OF the largest ele-
vator meu in Minneapolis, then explain
ed the system OF marketing grain. he
said he would make no attack on the
hin. but before the present system OF
handling grain was destroyed he would
ask the committee 70 devise some sub
stitnte By which il could be better
handled.
The railroads and farmers compelled
the elevator man 70 be ready 70 receive
the offerings. He had 20 borrow money
and as ears could not be had immedi-
ately il was some days at least before
they could get 10 TO Duluth. Nhen THIS
wheat was received efforts were made
10 sell il 10 millerS in Buffalo, Mime
apolis or abroad.
They could not take all daily receipts
and elevator men wentintO markets ana
bought options TO cover themselves from
loss. He would not do the business
unless he could protect himself by means
Of these Optious, or in some o1her way
there would be too much risk
He did not think it true that lue
farmers we're forced to sell wheat auu
to take what they could get Tor IT, LOT
the very largest farmers and those oess
able 20 hold their wheat were the very
persons who as a matter or business
sold their wheat directly from tns
thresher. Farmers generaliy hau
neither the facilities nor the knowledge
necessary to keep wheat safely.
Large farmers, Mr.. Sawyer said, were
opposing the bin. The president OF the
Minnesota Alliance said he did not Oe,
lieye il wduld cure the evil complained
Of and was opposing it for that reason reason
aud not because he was In sympathy
with the men who were buying ther
grain for nothing.
Mr.. Sawyer appealed to the Committee
not to knock away the underpinning oy
which wheat merchants like himself pro-
tected themselves from losses without
giving them in its place sometnins