Hutchinson gazette. [volume] (Hutchinson, Kan.) 1895-1902, 1898-12-29
CHICAGO's GRAIN TRUST.
THE LOWER THE PRICE THE
HIGHER THE PROFITS.
Tho objects OF tho Trust ars TO Draw
Grain to Chicago, to Block tho Ma
tural Flow Of Commerce, TO KIN Com
petition and Keep Prices Down.


II 10 not tho purpose Of this paper 10
discuss, admit or deny tho right or
justice of private individuals or corpor-
atoms 10 combine issues TO legally, and
In the interests OF public policy, con-
duct their business for moro profit by
such combination, but to declare that
when public officials, or corporations
licensed by the people for certain
specific purpose, violate the sacred du-
ties for which they were Incorporated,
and by that violation enslave the labor
Of continent, tits time mankind turns
It's God-given right to liberty and
equality In commercial and social life,
and insists upon the enforcement Of
Iuch measures aS shall effect radical
changes 1t 10 impossible intelligently
10 present the methods OF operation OF
The Chicago Grain trust in few col
nmus, but references are here made TO
Important features Of IL, with existing
results, in tho hope that some reader
may profit by knowledge Of them.
The Chicago Public Warehouse Com
bination is made up of English. New
York and Chicago capital, and ia sup
ported by the western railroads enter
Ing Chicago. The objects Of this trust
are:
/. To act as agents OF railroad in
tcrests to draw grain TO Chicago, thus
preventing its diversion to any inter
mediate junction point to some other
line, which might cut short tho full
freight for the longest possible haul on
the original road.
To mix, manipulate, sort and manu-
facture untold quantities Of inferior
grades Of grain into those improved
grades which will apply ION contract"
under the rules OF the board OF trade,
and sell them for future delivery. This
grain Is so manufactured as to barely
pass inspection in such improved
grades, the object being TO make them
rs undesirable as possible to the pur-
chaser, in order to force its continu-
lnce in tho elevators, to accumulate
storage charges, rather than seek
lhipment and consumption.
3. To block the natural flow OF COM
nerce, and hoard millions upon mil
lions OF bushels at market centors to
iepress prices; for being carriers Of
grain for storage, pending the time OF
future delivery, for which the products
ire sold, it is evident that the lower
they can get the values OF the crops,
The less the insurance, interest, and
other charges necessary to hold them,
consequently the larger the profits. 1t
might be stated also that the storage
sharges always remain the same, not
lepreciating in proportion to any de-
slime in the value OF the product This
system of boarding grain and selling
for future delivery most seriously
tends to drive away and discourage
investors, and buyers, who arc the
farmers best support. 1t forces them
TO liquidate or sell out to the trust
when their securities are exhausted
by depression in the markets. The
men then proceed to repeat
the same same on new set of buyers
who ale under the impression that
grain is good purchases" thus per-
petuating an endless chain Of forced
'liquidations." This storage load also
encourages professional bear raiders,
and bucket-shops, whose success is
made possible TO large extent by the
operations OF the trust, These three
gigantic interests, elevator and rail-
road monopoly, bucket-shops and bear
'aiders, thrive ON low prices. Farmers,
laborers and all others suf-
'er
4. To kill natural competition. 1t
8 quite generally believed that rs to 95
per cent Of the grain now handled |
through these public warehouses soon
Ir or later becomes the property Of the
Farehousemen, Being thus allied |
With the railroad interests, as explain
ID previously, they are shown special
avor in the matter OF elevator-facili-
les, in many cases without charge,
md while the original intention of the
tate law was that of simply custo-
liam of the grain Of the public, they
low transcend that duty, and compete
With the public as merchandisers of
he crops. The public pays full stor-
lge rates, probably the most excessive
n the world, and the warehousemen,
lone. 1t would be just as reasonable
or the Chicago & Great Western road
o enter the grain trade and mako its
'wn rates of freight to itself, as Il
rain merchant, as against the people
Who pay tariff rates.
Inquiry will prove that competition
or the crops is already nearly extinct,