Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1903-07-27
Line" Elevator Companies
Look For Trouble With In
dependents and Farmers
RAILROADS CONTROL TRADE
Question to Be Brought Up at the As.
ISOLATION Meeting in Sioux City
Next Month-senator Hosue Gives
His Views of the Situation Existing
in Iowa.

Sioux City, July 27-When the Iowa
State Grain Dealers Association meets
In Sioux City Aug. IS, one object, ac-
cording to report, will be to reconcile
the farmers and independent grain men
to the domination of the grain busl-
ness by the Zine" elevator companies.
| That the grain business of the mid
die west Is falling into control of a
small group of great companies, en-
joying close relations with the rail-
! Der, coal and stock buying, building
material and associated lines of BUSH
ness, is the opinion expressed by Sena-
| tor e. L. Hogue. of Monona county. Mr..
| Hogue. who talked freely of the grain
| situation, in this section, adds that the
people in his and adjoining counties
have had experience enought to con-
vince them of this situation.
| This coming meeting, understand
|
sion for an effort to convince them that
| their interests are not antagonistic to
the line elevators. The grain men have
been instructed to bring in some farm
ers and independents to the meeting, SO
they can talk the situation over to-
gether and try to reach an understand
ing.
THE big grain concerns seem to be
fearful Of a revolt against their DOM
nation. l don't think they have much
fear of any affective legislation. being
confident that with the assistance OF
| the railroads they can control the leg
| islature, and prevent anything of that
sort. But their danger is in the antag
onism of producers, and independent
grain dealers, who are fighting hard for
a chance to make real competition.
Let me tell you of the experience at
California Junction, Harrison county.
| in an effort to establish competing
elevator. 1t is typical of conditions all
along the old Sioux City and Pacific,
where the Nye-Snyder elevator line is
In control, and shows how impossible II
| is to secure competition when the ele-
vator company and the railroad work
together.
walt Smith. of California Junction,
lis wealthy and an independent grain
buyer. He had small elevator and
when a party whom he didn't know
came along and offered a good price ne
sold it. Pretty soon it turned up In the
hands of the Nye-Snyder company. and
that was the end of competition. Then
Smith started to build new elevator
there and applied for site, which the
railroad refused.
Being finally convinced that the
road would not let him into trackage
privileges, he went to the Illinois Cen
trail and made the proposition that he
would furnish the right-of-way and
grade the road if it would lay the iron
for a spur of seven miles, to get into
California Junction: then he would
build big elevator on their track and
give them the business. The Central
people agreed.
"This looked like competition and
Smith got ready for his end of the bust
ness, when the Illinois Central informed
him 1t couldn't carry out the deal. OF
course everybody assumed that the
Northwestern forced it to keep out of
that territory,
"The next thing was a move by the
farmers. The Farmers Elevator Com
pany was organized and started to
build an elevator on land it has Sc
cured, outside the right-of-way of the
railroad, at point where 1t was
thought the grain could be run thru
long chutes to cars on siding.
Learning of this. the elevator COM
many got busy again. The farmers had
their foundation in and piles of lumber
on the ground to use in the construc-
ton, when it was learned that the Nye-
Snyd1r company had leased the inter-
yening ground, between the Farmers
elevator site and the railroad tracks.
Immediately the Nye-Snyder people
started series of high corn cribs on
this leased strip; high enough to cut
off the Farmers site from the track
making it impossible to chute grain
over.
by this time the farmers were get
ting pretty mad. Early last spring
about 100 of them got together and de-
termined to try force. They tore up the
Constructions and then. selling an ADAM
doned siding, moved 1t bodily and laid
1t to their elevator site. They stood
guard over it with guns and it stayed.
Superintendent Hodge, of the North
ives tern. went down and ordered the
section hands to move the siding back
to its former location: but the farmers
meant business and stood off the sec
ton force.
"The farmers next went to the dis
trict court, made a showing, and Sc
cured temporary injunction restrain
ing the railroad from moving the side
track. But this was dissolved on the
final hearing. Then thu railroad tore
M the track and the Nye-Snyder peo-
ple proceeded to build its aerial cribs
so as to shut off all possibility OF run
ming grain to the old siding. The
foundation and the piles of lumber for
the Farmers company are still there
They are likely to stay for some time
THE grain companies go into the
hog and >cattle buying business and
drive other dealers out. They handle
lumber and coal. lime. cement and
building materials generally. They drive
mt competition by paving high prices
and selling for low prices till the COM
netitors are out of business then they
make it back very quickly.
"rhe line elevators are getting con-
,rol of the grain; the railroads get
the haul; small coterie of big opera
tors who control the elevator compa-
MES control grain deliveries; they can
hold back the grain and push up prices,
ar they can rush it into the market and
+, ), .,a,,. tdo,un Thor, fS M cpune-