Chicago eagle. [volume] (Chicago, Ill.) 1889-19??, 1898-12-24


ccnters Of the world. and conditions
here frequently affect prices every.
where. We have here large number
Of grain elevators. with a storage ca.
pacity of about 0O.OOO.OOO bushels of
wheat. They are chartered by law, and
the owners net rs trustees or custOdlans
Of other peoples grain. The grain Is In.
spected by an officer Of the State, and
Is graded No. 1, No. 2. No. 3, as the case
may be, and generally Is sold by this
grading, and all grain Of the second
grade Is then poured together, the ware.
house man giving receipt for so many
bushels Of that particular grade. And
when this receipt Is again presented, he
does not give back the same grain, but
simply 50 many bushels Of that grade.
1t was soon found that all grain Of the
same grade Is not equally goOd--there
will be No. 2 wheat almost equal to No.
1. ana there will be No. 2 wheat falling
close to No. 3. And In all those cases
where wheat Is sold, not by the grading,
but rather by sample-as for milling
purpOses-the best quality sometimes
brings several cents bushel more than
the poorer quality, though Of the same
grade. The warehouse men saw that
they could sell by sample the best quail.
ity Of q particular grade and supply Its
place by a lower quality Of the same
grade and pocket the difference. This
would reduce the average quality Of the
whole pile, and In case the owners Of
any Of the pile should wish to sell by
sample they would suffer In conse.
Quence. The elevator owners went into
the business Of buying and selling grain
and mixing It with that of their custom.
ers. A suit was brought to enjOin them
from doing this. Much evidence was
taken, ana after full hearing Judge
Tuley, the Nestor Of the bench Of Chi.
cago, granted the injunction on the
grounds, among others, that the eleva-
tor owners We're trustees or custOdians
Of other peoples property. that the In.
terests Of the public demanded that
these custOdlans should be dlsintcrest-
ed, and that 1t would be contrary to
public morals to permit them to stand
In n position where there would be a
the character Of the property they thus
held In trust; and, second, that II the
elevator men We're permitted to act in
the dual capacity of trustees and deal.
ers In grain they would possess such
advantages as would enable them to
soon drive all other buyers out Of the
market and thus give to themselves a
monopoly Of the grain trade of Chicago,
and enable them, to certain extent. to
fix the price Of grain In the Chicago
market; for they could then. by combl-
nation, agree on the price. and by rea-
son of their enormous storage capacity
they could withhold or throw on to the
market at any time vast quantities of
wheat, and thus depress or raise the
market Mt pleasure, which would not
he so II there Were many owners. The
case was appealed to the Supreme
Court, and that court sustained Judge
Tuley, and, In long and able opinion,
expressly held that 1t would be against
public morals and against public pol
Icy to permit the public warehouse men
OF this State to carry on grain busi-
ness In the same warehouse in which
they keep their customers grain.
But In the meantime the warehouse
men secured the passage of law
which permits them to do the very
things which the courts had held to be
against public morals and against pub
lie policy. The elevator people stand
together They have an agreement not
to interfere with each others business.
The moment a bushel Of wheat goes
into their warehouses they are entitled
to two cents storage. When an outside
buyer offers 20 cents a bushel It will
cost him ~ cents. The warehouse men,
by giving up little Of their storage
charge, can offer II cents, and thus
drive the outside buyers out of the
market. This done. the market Is at
the mercy of the warehouse men. The
effect Of this legislation. therefore, Is to
create monopoly and place all that
section of country which in grain mat
ters Is tributary to this city at the mer-
cy Of a combination of elevator owners
In Chicago. This combination can cas-
lily combine with others elsewhere, SO
that this legislation lays the founda-
ti0n for O grain trust that will draw