Clarke courier. [volume] (Berryville, Va.) 1869-1997, 1902-04-23

several hundred grain dealers of the
leading grain producing states, gov.
tIned by arbitrary rules. This asso
citation has become strong enough i'm
some localities tn dictate the price
that farmers should receive for their
grain aud To prevent their dIsposiug
OF II To anv ON" outside the combina
ton. This brought the trust prob
lem right 10 the farmers door; he
was compelled to pay the prices asked
take the price the buyer chose TO
give him for produce. BUYERS al
given place agreed upon the price 70
be paid each day that would give
them reasonable profit after paving
expenses. and at the end of given
time To pro rate the profits according
to their running expenses and the
amount they had invested in the
business. Most of che original mem
brrs of the combination were honest
meu and were satisfied with a reason
able profit, but presently number
of grain >yndica'rs began op,rations
Ia Kansas. headed 10y exporters and
commission men backed hy large
capital. Each syndicate has clc,.:
tors along one line ot railway uud
they are known as "liur" rir, ,atorS.
to distinguish them from the oucs
owned by the individual dealers. II
Is alleged that IN return for their
exclusive business these line elevators
receive special concessions from the
railway companies. Each syndicate
has storage rlc,niors aj tine large
grain ceuters where their grain is
mixed and prepared for export. thus
avoiding the cent per bushel com
mission that mu>t beplid Jy indiyid
ual buyers. These syudicates are 50
strong and 50 we'll organized that they
are able practically dictate the price
of grain throughout tn. districts IN
which they operate. When the syn
dlcate wishes to enter place already
occupied 10y an operator, it would
offer 10 purchase his elevator and
business. generally At price below
what he considered it worth. aud if
he refused it would threaten 20 put
an elevator and ran him out of buSi
hess 10y forcing zap the price of gain
until he could get none for shipment.
Some of the first to suffer through
this sort of commercial cunuibalism
were men who had been active in
organizing the grain dealers associa
/ ton.
When the great crop of 1900 was
harvested the farmers discovered that
they could not get what they thought
their grain WAS worth. They argued
that when they had reduced the
/ freight charges plus | cenJ from the
Kansas City price, their grain should
be worth the balance. Bur the price
the syndicate offered them (and they
had TO take 1t or nOne) WAS from 3
TO cents below what their calcula
tiOns showed they should have.
Every bHyer offered them the same
price, and it was immaterial To them
who got the grain, as their interests
were pooled and the profits divided
accordingly. When they ordered
cars to ship their own grain they
were told that grain must be stored
on the right of way when the cars
were ordered. If special effort got
the cars they found that no Kansas
City commission firm would handle
it until it had been sold to a local
buyer, fer fear of boycott bv the
grain dealers association. The far
mers had absolutely no alternative.
The state Legislature was assaIled
but no relief could be secured
Early in the spring the farmers arose
against the grain trust and state
convention was called at Salina tt
formulate plans to fight the trust.
The story of the local organization
at Solomon shows how the farmer,
organized and how successful they
were. The wheat market there wa:
controlled 10y three syndicates ON n,
many different railroads. An inde
pendent operator with "a fourth eleva
tor had been forced to the wall
There was no competition. The
syndicate paid II cents below tn,
Kansas City price while the norma
price was but 10 cents below. Tn,
farmers of the locality organized ,
grain shipping association capitalized