St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1895-04-16
A Senate Committee Hears Discus
sion on the Mefifckc Bill.

sion on the Mefifckc Bill.
The senate grain and warehouse COM
mittee had a a hearing last night upon
the Meilicke bill to prevent restraint
in trade and shipment of food products
The author of the bill ably presented
the claims for the measure, and dis
cusSed 1T in thorough manner, and
asked and answered questions in a
way that showed him to be able to dis
cuss the measure in a manner that
was incontrovertible.
w. F. Fraser, of Minneapolis, an ele-
vator man, and a member OF the board
of trade of that city, addressed the COM
mittee on the bill. and spoke of the do
ings of the board of trade in handling
grain, and claimed advantages to the
farmers by reason of doing business
through the combination. He contend
ed that the farmers got better prices
and met with loss fewer times by deal
ing with the board of trade men or ele-
vators. He said that the board of
trade had agreed to not buy grain at
less margin than one cent clear profit
when buying at country points, and
the Minneapolis chamber of commerce
had construed the rule so as to ex-
clude those who disregarded the mar
gin agreed upon. He claimed to pre-
vent the board of trade from doing
business under the plan agreed upon
would leave the handling of grain to
be governed by the loose methods UNI
der which produce is handled He said
1T costs half the commission to do bus
mess. and to leave the matter open to
competition would result in cutting
rates so that men could not make a
living in handling grain.
Senator Sevatson asked questions and
made statements to the effect that he
had lost money in wheat sold to Mime
apolis board of trade men. He had to
sue them, and did not get his money.
He asserted that the board of trade
men protect each other, but not the
public. Mr.. Fraser expressed surprise
at this statement. sas ~
President Martin, of the Minneapolis
Chamber of Commerce, speaking
against the bill, said that there are
men handling grain to whom the board
of trade had refused membership. In
answer to questions by Mr. Robbins
and others, Mr.. Martin said not all
the members of the chamber are ele-
vator men. but about all the line ele-
vator men are members. There was no
protection to the shipper, he said, in
response to Senator Sevatson. He de-
MED the statement made by Senator
Reishus that he usually had to wait
twenty-five days to get pay for wheat
after shipment. He admitted that in
terest was charged on drafts made on
wheat shipped. That is a rule of the
association. He also admitted that
some times cars of grain are lost for
sixty days. Mr.. Martin said there are
only twenty-nine line elevators in the
combination.
Representative Meilicke said the
purpose of the bill was to prevent COM
binations to interfere with independent
shippers getting good prices for wheat.
He said he had already stated that he
believed the price of grain was fixed
by the combination, and their purpose
was to freeze out the independent ele-
Vator. His bill was intended to pre-
vent the freezing out process. which
would allow the commission men to
control the business and fix the price.
He claimed that a free market is
wanted, and not combination to paw
only one price. He reiterated the
statement that many of the board of
trade men want the bill passed. but
are afraid to give their names because
they would be expelled from the asso-
citation. They are men who are
willing to do business for half the COM
mission charged by the combination
elevators If allowed to do so. He de-
clared In favor of the American prin
ciple of competition. He wanted COM
petition among the Minneapolis board
(f
Independent elevator men. The COM
bination not only fix the price, but they
hold up their commission rates.
Senator Hanna said that the old line
| elevators kept the margin about ten
cents until after an Independent ele-
Vator was put up. They also tried to
keep the farmers from getting an ele-
vator site, and even threatened the
merchants. and put in a stock of goods
at the town of Hector to retaIiate
against the merchants for favoring
the independent elevator. Mr. Meiiicke
| said 1t was un-American for the Min
neapoliS men to say they could not live
If they had competition. He said the
wheat growers have to compete with
the cheap labor Of India, and when
they claimed that were told to go into
some other business. His advice was
| to the elevator men to go into banking
| If they could not make a living in a