The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1901-11-18
INDUSTRIAL COMMISSION WILL
TAKE THE POSITION THAT
ONE EXISTS
TERMINAL ELEVATORS KEY
Big Companies Alleged to Have %
System for Forcing Small Buy
ers Out of the Coun-
try Markets
GET Low RATES AND REBATES
GLOBE WASHINGTON BUREAU,
Post Buflding, Room AZ.

GLObE WASHINGTON BUREAU,
Post Buf1ding, Room AZ.
I WASHINGTON. D. c., Nov. 17.-Craf,f
| shippers in the Northwest know consider
| able by experience Of the elevator trust
| in Chicago and elsewhere The United
states industrial commission has gather
| ed a lot of evidence on the subject ana
viii present it to congress at this COM
ing session as a basis for legislation
! against the evils of which the farmers
complain. The situation Is summed up
| as follows:
| The evidence is clear that the great ter
| minai elevators at Chicago, and to less
degree in other grain markets, are own
ed by comparatively few ruen or firms;
| that the owners of public elevators where
grain may be stored at fixed charges by
any holder, also control great private
elevators; that they themselves buy u
very large proportion OF the grain which
comes into the. public elevators; and that
the business of handling grain on COM
mission has been vc,y greatly redlced
by this practice.
The opponents of these large dealers adj
nit that the elevator owners ray mora
for grain to the local dealers and farm
ers than the commission merchants and
small dealers can pay, but they declare
that this is due to various unfair adj
vantages Thus, the elevator owners
themselves are exempt from the termi-
nal storage and transfer charges which
must be paid by other persons-three--
fourths of cent for transfer and the
first ten days storage-which is alleged
to be much more than the actual cost.
II is further declared that the elevator
owners receive great advantages from
the railways in the forms of allowances
for handling grain and of direct freight
determinations. In fact, 1t is held by
| many witnesses that the railway COM
panies or their officers are largely inter-
ested in the elevators and in grain buy
ing. The evidence as to determinations
| in favor of the elevators is chiefly indi-
| rect, based either on general belief or on
! the known fact that the elevator owners
| often pay more for grain at country sta
| tions than the price at Chicago, Kansas
| City, or Milwaukee. minus the fun freight
| rate, would warrant.
Rates and Rebates.
The excess in the price offered was
shown to be sometimes as high as or
| 21s cents on both wheat and corn. 1t Is
| also stated that in 1890 rebate of cents
| per 100 was proved before --.e Interstate
commerce commission to have been
granted to certain elevator owners.
| 1t is also alleged that the Eastern rail-
ways have largely leased treir transfer
elevators to private companies which
also deal in grain, and that the charges
made by these companies are excessive,
so that they have an advantage over conf
petitors.
The elevator owners deny that the
charge of three-fourths of cent for
handling grain is excessive; the law per-
mits IA cents to be charged, wnile the
obar &c lowest known any,
where. They deny also that the railways
operate elevators directly, or, in the cases
where they own them, have given special
fayors in leasing them to the present op-
orators; though no very detailed evidence
is presented Mr.. Webster of the Ar
mour Elevator company. claims that thar
company actually owns most OF It's nu-
merous elevators and pays high rentals
for the remainder, while Mr.. Counselman
declares that the elevators on the ROCK
Island were built and paid for by mis- own
firm. Mr.. Webster also denies that the
elevator owners receive DISCRIMINATING
rates from the railways.
In view of the quite general acknowi-
edgment among railway men that ols-
examinations in favor of large Shippers
are still conspicuous, there seems TO nc
a considerable probability that the clalm
that these large elevators receive 1aVoFS
from the railways. IN one way VI ILL
other, has some basis.
The elevator men explain further the
reason for their buying grain and for
their advantages over competitors. They
claim that the establishment of through
rates on grain from the Mississippi riv-
er and other Western points to the sea-
board lower than the sum OF the local
rates from those points to Chicago and
from Chicago east gave an advantage 10
Eastern commission merchants and buy
ers. so that Chicago elevator owners
found it necessary to buy grain on q
large scale and handle it in the same
Way. on through rates, in order TO keep
their warehouses from standing idle
Had to Protect Chicago.
Moreover, the competition of the newer
markets of the West forced these men
TO buy grain to protect Chicago as a
market. The advantages which have
made il possible for them to compete
successfully with other markets, ana
largely to take business away from COM
mission merchants arise from their large
capital. which enables them TO carry
large quantities of grain in ANTICIPATION
of favorable markets, from the elfmina-
zion of commission and other interme-
diata charges. and from the ability to
forego a part or all of the normal charge
for actual elevator service. The elevator
owners have the same advantage over
Continued on Seventh Pnge.