The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1902-04-09
Correspondence Shows Methods
of Grain Dealers Combine.
Division of Profits For Benefit
of Dealers.
SOME OF THE LETTERS.
Examples to Show How the
Money is AppOrtiOned.
The Mysterious cheek and the
Three X.

James Butler. secretary of the Farm
ers' Cooperative Grain and Livestock
association, has in his possession a
large amount of correspondence be-
tween grain buyers. syndicates, arbo-
traitors, and others interested in the
grain business, which tends to show
different phases of the combine among
the grain dealers.
Mr.. Butler has made public a par
ticular line of this correspondence,w which
shows the situation at Kanopolis,
Ellsworth county, during the fail of
1900 1t was directed to Simon Stoetzl
and the greater part of it was from the
Morrison Grain company, for which
StoetzI seems to have been buying.
There We're occasional letters from
Meek" who, according to Mr.. Butler,
was the arbitrator or person who ad-
justed the differences between the local
buyers at KanOpolis. There We're two
dealers at Kahopolis, Stoetzel and H.
Work, one of the organizers of the state
grain dealers association.
One of the earliest letters is from
Meek to Stoetzl, explaining how to
figure the division of the profits between
himself and Work. The agreement was
that there should be an equal division
of the profits on a basis of a profit Of
three cents a bushel, which would be a
profit of $50 a car figured on the margin
alone. So that if Work did not buy any
wheat at all the other man would have
to pay his three cents bushel profit
just the same. This prevented compe-
tition. This is the way Meek explains
the division of profits:
July II, 1900
Mr.. Simon Stoetzl. Kanapolis, Kan
Dear Sir Your letter of yesterday at
hand. The right way TO figure an agree
ment is to each pay into fund 3 cents
for each bushel bought and where there
is buyers as there, divide the amount
equally. For example: If you buy 5000
bushels and w buys 1000 bushels it
would be as follows:
IS. 3.000x3 are $4,000; w 2.000x3 are
$4,000; total $4,000; divided by ?, $500
Thus you would pay difference between
$4,000 and $500 or $500 to w. The way
understand it yours is difference in
bushels being LOCO. you would pay
3x1,o00 or $4,000 to w on above.
(Signed,) MEEK"
But the Morrison Grain company, for
whom Stoetzl seemed to be buying. ex-
pected him to make more than cents
a bushel. He was instructed to make
AZ cents. If he purchased 5000 bushels
a day, as supposed in "AIeek's'' letter,
he would make a profit of S135 on it, of
which he had to pay SIS to Work. Work
probably made a larger margin, or he
would have secured more OF the wheat
The instruction TO make AZ cents
bushel is shown in this letter to Stoetzl:
July Is, 1900
T Il did not wire you the market today
as there is very little change. I want
you to buy your share of the wheat. I
think that we can probably get this
evening SIZE for 2 wheat on the Missouri
Pacific Buy all you can so long as you
can make good 412c on it.
MORRISON GRAIN CO"
But the margin was not all the profit
TO be made. The Morrison company in
structed Stoetzl to judiciously mix rye
with his wheat. This mixing process is
what brings down the quality of Kan
sas wheat and has injured its reputation
among eastern millers. The Morrison
company wrote this to stoetzl; ,ooo
Count your rye the same as wheat
Mix off a little rye in your wheat all
the time. Aim to work off all your rye
if possible that way, unless you get
MORRISON GRAIN CO"
Later the differental agreement be
tween Work and Stoetzl seems to have
been raised to four cents q bushel in
stead of three. They evidently wished
to make still more money out of the
farmers. Then the Morrison company
instructed Stoetzl to make 5 or 6 cents
a bushel profit. The term Xxx seems
to indicate the d1tferentlal in the cor
respondence. These things are indica ted
in the following extracts from letters
from the Morrison company to Stoetzl;
August 81, 1900.
Let Work have wheat. You would
ence or he would fight.
September 3. 1900.
'.The way you are buying your wheat
at 50 cents for so pounds and the prices
we are getting for it. you surely are
making money and are able to pay the
Xxx ($65.50). but if we do not keep the
Xxx with him there would be a fight
there and you would make nothing.
Work knows what he is doing, thinks
that he is making more money by TAX
ing the Xxx and letting you have the
wheat If your weights hold out you
can afford to pay him xxx. as your
4 track Keep buying at 5 cents or 6
cents any time that you can.
September TO-. 1900
/ Wired you to bill your wheat over the
1 Il. p. to us to Topeka. Wheat is half
I cent up today. Guess you are a good
\ guesser on wheat. We ought to have
< higher prices now on wheat Buy your
/ share right along, but I would try 10
/ let Mr.. Work have half of the grain
that comes in there, as it causes an ex-
/ pense to you to handle it, and unless
you are making AZ cents on same It
does not pay you to handle it.
september 25. 1900.
Buy. making over AZ cents or let
March I. 1901
Buy wheat expecting TO get at least
AZ cents more than it cost you. be
| cause if you pay four cents you want
! at least half a cent for your expenses
| The railroad says that you are handling
| all the wheat there. that Work is not
i getting any. What seems to be the
! matter? l presume he is satisfied tC
/ get his 4 cents. The best I can get for