The Savannah morning news., 1904-02-25
GRAIN TRUST"
BROKEN AT LAST
LOST CITY FEED CONTRACT.
FIRM NOT IN THE COMBINATION
PUT IN LOWEST BID.

Believed Now That the SO-CalIed
Trust" VIII Be BrOken-HeretO-
fore II Has Had No Competition
in City's Business The Ellis
Young Company Submitted n Bid
That Put the Trust" out of the
Way-Bids Were for Police De-
partment.
What will probably prove fatal
blow was given the grain trust in Sa-
vannah yesterday morning, when bids
for furnishing the police department
with feed were opened at police head
quarters.
While the bids from all the firms
composing the sO-called trust"
were the same, as has be-
come customary for some time
past, an outside firm, The Ellis
Young Co, had in lower
bid. The contract was award
ed TO the lowest bidder, and
the trust" was defeated in getting a
city contract for the first time since
its organization a little over year ago.
The bids called for were for furnish
ing the police department with 1880
pounds of No. mixed oats, and 11.70O
pounds of No. 1 timothy hay. All the
firms in the combination, that
had in bids, agreed to sell for so cents
"A bushel on the oats. and $1.O211 per
hundred pounds on the hay. The bid
of the Ellis Young Co., on oats was IS
cents, and on hay 90 cents.
Breaking OF the Trust.
The breaking of the trust" was talk
ed of at the City Exchange and on the
streets during the morning, and there
was much speculation as to what would
become of the combination. For about
a year the grain dealers of the city
have been in a combination, whereby
they made prices. During this time il
is not thought that any firm other than
one in the combination has submitted
a bid TO the city. The prices were push
ed gradually up and the city has had
TO pay.
The trust" for a long time has had
things it's own way, but there appears
TO be trouble ahead for it now. On
the contract to the police department
the city will save over 500 by having
an outside firm bid. The police con-
tract is not nearly so large as that of
the fire department, and the contract
of the public works department is larg-
er than both combined. If the compe-
tition keeps up, the city will save an
enormous sum in the course of a year.
Humors of Threats.
1t was rumored about the streets that
grain brokers had threatened The Ellis
Young Co. because they had put in
the bid. Mr.. ]. w. Motto, the secretary
of the company, however, said he
had heard nothing of these threats.
Il simply saw the advertisement for
the bids in the Morning News, and de-
cided to submit one he said. we
are not in any combination, and, of
course, have nothing TO do with what
though. and exercised my right to sub
Nothing mott of 0''' any threats h4es hen no1
would i be worried If l had. We
can get all the grain we want, and
rather think l shall continue in the
business. / may submit bids for con-
tracts in the future"
Chairman wouldn't Talk.
Alderman Grayson. the chairman of
the Police Committee, would not dis
cuss the matter.
THE contract has been awarded to
the lowest bidder. as has always been
DONE" he stated. Further than that
he would not say anything at all. even
declining to give the prices, although
the bids had been publicly opened.
The public works department of the
city will have to purchase feed on the
first of the month, and a lively time
is anticipated. The combination has
been knocked out for one and 1t is
probable there will be a hard fight
to get the city business into its
clutches again.
When all bids submitted are the
same. as has many times been the
case, the committee to whom they are
submitted have heretofore simply
gone the rounds, giving one firm the
contract one time and another firm an
other time. 1t was charged. however
that certain firms were favored anC
given the contract oftener than others
and that one or two firms were never
able to land.
Combination in the Trust.
This brought about peculiar con.
dition and a second combination with,
in the trust" was formed. The les,
favored bidders would call a meetinl
Of the trust" and run the price dowr
just before time to submit bids. wher
it was thought the contract was 60
ing to one of the favored firms.
The combination fixes prices abso
lutely and all belonging to it hav,
to abide by the general decision, ol
forfeit a substantial sum that eacl
member was required to place on de-
post. In spite of its internal trou
bles, however, the local trust" hal
prospered wonderfully. On city con
tracts especially have the grain ant
hay people had a good thing.
They will now, however, have t.
meet the prices Of parties outside tn,
combination or else lose the business
A big cut will probably be made 70
a time, so that the trust" may re
tain the business. With persistent
bidding from the outside, however, thu
trust" may be given a great deal o
trouble and eventually be broken up