Kansas City journal. [volume] (Kansas City, Mo.) 1897-1928, 1898-03-27
GRAIN MEN WHO ENJOY SECRET
CUT RATE AGREEMENTS.
THEY M0N0P0LIZE THE TRADE.
INTERSTATE COMMERCE COMMISSION
ORDERS INVESTIGATION.
y. r. Marchand, Special Agent, Takes
Testimony to Lay Before the
Commfssion-Heavy Penal
ties Attach for CUT
ting Rates.

circulated at the board of trade for the
past year. that certain grain men had Sc
cret cut rate agreements with strong lines
of railroads leading out of the city, and
by virtue Of the agreements were able to
largely monopolize the grain trade in much
of the territory adjacent to Kansas City,
have finally landed before the interstate
commission, and a searching in
v~estigation of the facts is practically as
sured. If the charges of collusion are sus-
tanned. the matter will find its way into
the federal court, where the men who cut
rates may have to face the matter under
serious circumstances. 1t is a fact that
formal complaints against certain railroad
lines nave been filed with the commission
and that much documentary and oral tes-
timony is now on its way to the office OF
the commission for consideration.
The charges implicate at least four OF the
main lines of road out of the city and about
half a dozen grain firms are listed as the
benefciaries Of the cut rates for hauling
freight.
MI. J. T. Marchand, Of Washington, spe-
cial agent Of the interstate COM
mission, who is detailed in charge OF the
criminal department of the work. was in
Kansas City all day yesterday, ana spent
the greater portion of the day in consul
tation with grain dealers who claim to have
c III NASiAkAAS "a NAN
that has, they say, shut them largely out
of the business. Just what they laid before
him or what direction they will pursue In
the future In pushing the matter. was not
announced. That Mr.. Marchand came here
from Washington to meet them ID SHOWN
by the fact that they were waiting Tor him
at the Midland hotel early In the morning
and knew of his coming.
When a reporter for The Journal asked
Mr.. Marchand about the matter he declined
to make any statement Whatever concern
ing the matter or TO admit that anything
was brewing. He said he was on MS way
to Colorado and stopped here for a day to
The grain men who were with him dur
ing the day talked about his mission mere
In q guarded manner, and quite a NUMBER
of them knew Of the conference ana luiiy
Endorsed the plan to place all Of the grain
men on an equal roofing.
Mr.. Marchand is the man who developed
the testimony in the celebrated Brown
case. that attracted SO much attention and
has had a long experience In hano1lng the
criminal work of the commission; That ne
Is r able and and expert 'Is tb aas D exists saii any 9e good
grounds here for trouble he Is Just like a
man who would speedily uncover 1t. 1t
was quite plain from the manner e.,S or tine Ihe
that they felt they had done a big days
work for they were very much elateo
noon and walked out Of the Midland cor
ridor.
1t Is not improbable that q summons for
f%fclaries of the secret rate and for the
traffic managers and contracting freight
agents of the lines implicated will be Is
a session Of the commission here to tell
what they may know of the matter and
what rate they do really pay on their ship
happy where others go Short and lose
out" The usual course. then, would be
to submit the findings. II they were def
ington and they would be forwarded TO
the federal authorities here for prosecu-
ton. The charges Of unjust discrimina,
ignoring the published tariffs are all pun
ishabIe with severe penalties by the laws
under which the commission works.
about the board of trade for the past year
over the tremendous business that some
firms were developing, while others had to
way VIZ several firms have been charged with
having deals with roads leading out OK
the city and at one time the board had a
It was impossible to get the facts to es-
tablish anything definite.
The great trouble is over shipments to
Minneapolis and the South. especially tho
The plainest sort of denials of secret ar
rangement have been made by shippers
but there are shippers who still remain un-
satisfied.
The shipment of wheat to Minneapolis
IS one of the results Of peculiar condi
tons. The contract grades of wheat for
the Chicago market are No. / North or
No. 2 red. That makes a grade that largely
shuts out the Kansas wheat, and so the
wheat from the North Is sent to Chicago
for Mr.. Letter and Mr.. Armour, and the
big millers there come to Kansas City to
purchase Kansas wheat, which makes as
fine flour as the Northern wheat. Over
zoo, 900 bushels of wheat have been sent
from here to Minneapolis since the OPEN
ing of the year so that an artificial trade
has been developed where the natural con-
ditions warrant no trading at all.
1t will be remembered that COMMISSIONS
William r. Morrison, who conducted one
investigation at this point, made the re-
mark that rate cutting in the West was
objectionable because there was enough
business under normal conditions to give
a nice thing for all of the lines. He said
II they would but be content to do their
share and let each other live, matters
would adjust themselves, the companies
would have plenty to do and would get a