Omaha daily bee., 1905-06-18
ALLEGED GRAIN TRUST SUED
Line" Elevator Firms Charged BY WOrrall
Company with MonOpOlizing Trade.
INDEPENDENTS SAY THEY ARE FROZEN OUT
Action IL Brought to Recover one
Hundred and Twenty-Eisht
Thousand Dollars aud
More il Promised.

company Incorporated, Of Omaha Is the
complaining witness in suit filed at Blair
this morning against the following elevator
and grain companies:
Omaha Elevator company, Transmssis-
sippi Grain company, OpdiKe Grain com
pany, Nebraska-Iowa Grain company,
Westbrooke-Gibbons Grain company, Gro
well Lumber and Grain company, Nye-
vator company, Central Granartes COM
pany, Hayes-Eames Elevator company,
Grain company, William Ii. Ferguson,
Evans Grain company Reuben b. Scnnei-
der, Edward Porter Peck, Horace G. Miller.
Frank S. Cowgirl, Floyd j. Campbell, kd-
ward s. Westbrook, Christopher {. Crowell,
Frank Fra b. Coe, William +. Morley, Frank
Levering, Edward Slater, George Ii. Hayes,
hrnest Eames, stephen EWart, y, Richard
Clifford ]. Railsback, W. B. Banning, E. N
Mitchell.
In his petition, drawn by Jefferis &
Howell of Omaha, Mr. Worrall makes many
serious allegations against the defendants.
He asks for damages in the sum of $12s,eoO.
Mere Drop In Bucket.
This" said Mr.. Jeneris, lis a mere
drop in the bucket compared to what Is
really involved. And this> suit is but the
| opening move in a campaign of litigation
| that II l am not mistaken, will develop
some very startling conditions in the grain
business in Nebraska. There is no more real
| competition in the markets here than there
is between the lion and his prey"
| The petition sets forth that the Worrall
| Grain company, composed Of T. ID. Worrall,
president. and Charles T. Peavey. vice
president and treasurer, was organized in
| May, 1904 at the time of the opening of
the Omaha Grain exchange. The Nebraska
Grain Dealers association, 1t is charged,
is composed of what is known as "regu-
lar" grain dealers, having or owning one
or more elevators. Scoop shovel house
men, farmers owning houses of the rail-
road line, are alleged not to be eligible and
are known as 'irregulars." Something like
1850 grain elevators are. the petition says.
controlled by the regulars. There are ap-
proximately fifty scoop shovel houses or
| farmers elevators, and II is charged that
by the system in use under the direction
of the Nebraska Grain Dealers associa-
ton the members will not do business with
these farmers houses. Prices are fixed
and maintained regardless OF them.
How Prices Are Fixed.
It is alleged that through a committee of
five ACKNOWLEDGEMENTS known as
a price committee" and composed of the
pany, Nye Schneider Fowler company
Central Granaries company and the, Ne
braska Grain company-the price to be
paid for any and all grain bought is alb
solutely fixed from day to day by kilograms
or cards sent 20 the buyers for the 1,25C
regular" houses These houses are owned
and controlled, says the petition by 20C
companies individuals, of which COM
panies the defendants are all members.
These regular grain buyers are alleged
to have entered into IAN unlawful pool
combination, association and conspiracy
to prevent competition. This against the
provisions OF the Nebraska anti-pooling and
antitrust laws and against the inhibitions
of the criminal code of the state, which
provisions are set forth at length.
The defendant companies and individuals
are alleged to have formed said combina
tionl and conspiracy and to contribute t
maintaining the same, to prevent any com
petition between buyers and dealers II
grain. They are alleged to have divided
, the state into thirteen price group dis
| tricts," in each Of which stated prices ar,
paid for the different kinds of grain unde
instructions daily sent out by the pric,
: committee, Part Of the plaintiffs case 4
: a map showing the counties and towns il
each price group" Within the lines O.
their respective territories the buyers TO
l the regulars are not allowed to ma,
l to farmers more than the price fixed unde
Q penalty of forfeiture of certain money
, placed in pool. This system, II is charged
a stiles and abolishes all natural competi
: ton.
! Trust Also GObbIes Up Market
Y 1t is further set out that the farmers
E elevators, or scoop shovel houses, are un
able to secure a market for their Dur
chases by reason of notices sent by tn
combine to its Chicago and other CORE
spondents to refuse to buy grain from tn
'irregulars. Printed pamphlets are regu
! larly circulated, as alleged. which Civ
specific information to combine buyers a
!. to those outside OF the combination wh
will "be good"-that is, who will maintai
/ the association prices.
!: At great length the petition goes int
\ details and explanations embodying tn
: above allegations and charges in differen
forms, but all to the same effect
Thomas d. Worrall. the complainant
talking OF the suit, says that he was 70
years a line buyer for the combine
II Of course knew of the working G
the system out at the country end" sal
he, but 1 did not realize how connie,
and impregnable the system was at thI
end until l came to Omaha and becam
an active participant for business on th
exchange. Then found out very speedii
that any one who would not be good
might browse around and work his hea
on. but he would not do any business.
r sample Secret Circular.
s. There are four other concerns in n
II same boat with ours on the Omaha e,
,,e change. the George A Adams Grain con
re pany, Exchange Grain company, C.
Thompson company and Nebraska Hay ar
= Grain company Mr Beals Of the latt,
company was practically forced out of Il
I game by the following circular:
| CONFIDENTIAL Bulletin No l5)
| Sept. g. l9N-To Members n G. D. A
= Pursuant TO the objects of this assocl
81 tion, II is my duty to inform you OF, II
ri following facts:
u There has been considerable irreEuli
4 and farmers business seeking an outl
III through the Omaha market. Most of IN
business has been cleared by sale or co
j signment through the Nebraska Hay al
Grain company, OF which Mr.. Rudolf
Beals is manager Mr.. Beals has a col
q OF the directory of the regular dealers
a this state but asserts his right to do bui
: ness with ANY AND ALL who may s,
him or send him grain on consignment
- 1t is my opinion that you would wish
be made acquainted with this dispositi
on his part, so that you can Judge as to I
tions. Yours truly, II. G. MILLER,
Secretary
M This amounted to boycott of the n