The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1900-05-18
A GRAIN COMBINE.
Interstate Commerce Commissions
Reply to Senator Harris.

Washington, May 1S-The interstate
commission sent to the SEN
ate today a reply to a resolution offer
ed by Senator Harris for all the facts
in the case of Mcleod Brothers of
Marietta, Kan That firm, IN a COM
m~unicatiOn OPresident Mckinley, stated
that the Midland Elevator company, a
branch of the Peavey Elevator company,
had not complied with the corporation
laws Of Kansas and that Its agents We're
going into different towns and cOmpell-
ing grain dealers to divide or pool their
business. p communication was re-
ferred to the interstate commerce com
mission and the commission made an in
v~estigation. The result of this investi-
cation is presented to the reply to Mr..
Harris resolution. The commissions
statement IS as follows:
Railroad companies engaged in car
rying grain from Marietta and various
other points in Kansas obtain much the
larger portion Of such traffic from par
ticular companies or firms Fol example,
Peavey & Co. buy and ship over the
Union Pacific railroad; Counselman &
Co. over the Chicago, Rock Island &
Pacific; J.. K Davidson & Co over the
Missouri. Kansas & Texas; J. Z. Harris,
over the Chicago. Burlington & Quincy,
and Richardson & Co. over the Atchf-
son. Topeka & Santa Fe- Such buyers
and shippers of grain are usually re-
ferred to as line dealers and they have
sometimes been referred to by railroad
officials as their southwestern grain
agents.
Other buyers Of grain in such local
/ tiles, though provided with facilities for
economical handling and shipment have
been unable to obtain any considerable
amount Of grain in competition with the
me dealers, because such line dealers
have paid much more at competing
points h the market price at Chicago
or Kansas City added to the published
freight rates to these markets.
Through the continued offerings Of
prices in excess of those fixed in the
market cities combined with the pub
lished railway tariffs many Of the indie
pendent dealers have been forced out Of
business or brought up to the point Of
doing little or no business.
After securing a practical monopoly
IN particular localities the prices offered
by the line dealers have fallen to and
/ some times below those fixed by the
market price and published t~ransporta-
ton charge. Frequently the line deal
ers woul force the formation of a pool
between themselves and other dealers
at a given point, which would give
them a larger portion Of the trade. At
other places they would offer to buy
out the independent dealer at a price
much below the value of the plant and
threaten To destroy his business if the
cHer should be rejected.
1t appears strongly probable that
wrong has been done n that Il has
been effected, not in the construction or
adjustment Of lawfully established tar
MS subject to correction by this com
mission, but by discriminating deviations
therefrom-criminaI acts-which are
c~ogn1zable only by the federal courts.
The ascertainment with sufficient
certainty and detail Of facts necessary
to determine whether judicial proceed
n ought TO be Instituted and il so to
sustain that proceeding apparently re-
qulres such expert examination of the
books and papers of the carriers the
commission has no authority under law
pE itself or ar agent to make. It does
not apear that anything further can be
oone by the commission which is likely
70 lead to beneficial results"
The commission states that all Of the