Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1905-07-14
PLAIN CONSPIRACY CHARGED
Deliberate Scheme, Worrall Says, to Freeze
Him Out.
ONE CASE IN PARTICULAR is clTEr
Independent Grain Dealer Gives More
Testimony in Effort 20 Prove
Charge Against Line
Elevator Men.

1. -. NOrIau tOld some new things yes
terday afternoon before Notary Charles
w. Pearsall about the way members of
the Nebraska Grain Dealers association
handled the waif grain of a farmer named
stanhope of Filley, Neb., on the noor Of
the Omaha Grain exchange June 3, 1904.
According to the deponent deliberate
conspiracy was concocted in which he
was invited to join, to sell the farmer $
grain for a loss so as to teach him to deal
with regular dealers in the future. Two
cars of corn were sold for 3s cents when
the market price was AZ.
Said Mr.. Worrall, whose deposition is
being taken in his antitrust suit against
members of the association:
Before the Worran Grain company was
incorporated Mr.. Peavey bought a few
thousand bushels of grain from farmer,
an old friend of his named Stanhope, living
at Ftlley, Neb. When Mr. Peavey came
up and formed the company he gave in
structions to ship the grain here Before
the cars reached Omaha Secretary Miller
Of the Nebraska Grain Dealers association
came to me and says: My God, what are
you doing? Here are the numbers of three
cars shipped from Filley
Knew Nothing of IL.
Il replied l knew nothing about it and
would investigate. Just how he came into
possession Of the numbers and initials of
the cars 1 don't know, but l have a
hunch. He told me the Central Granaries
company and Hayes-E -Eames had given him
the information. He said: If you insist
upon doing this business right from the
start we know how long you will last
The corn came on to Omaha but 1t was
found that the drafts had been what the
Worral Grain company considered excess
sive and one car did not grade up well, so
the drafts were not honored."
Mr.. Worrall continued: THE drafts were
returned and in course of time, two or
three days, Mr.. Miller came up one morn
ing and wanted to know where the samples
were for those three cars. l gave them to
him and asked him what he was going to
do with them and he said the drafts and
bills Of lading had come to the Merchants
National bank and that the Commercial Ma
tional bank had turned them over to the
Neutrality-suspicious. Grain company to dis
pose of to best advantage.
Now. he said, as long as YOU have
gone part way in this matter, If you will
come in and bid low on this grain, we let
your share in the profits, said What's
your game 1 want to understand It fully
before 1 play He said, We want some
body to bid this corn in so that 1t will net
him a loss
Well said, Mr.. Miller, I'm not going
to enter into any such scheme as that to
rob n man in broad daylight and I'm not
soing to have anything to do with H. I'm
going to wash my hands clean of the entire
transaction and neither Mr.. Peavey nor
myself is going TO have anything to do
with it, We did not. ....
Sells for Different Price,
Two cars of that corn sold for 3S cents a
bushel on the floor of the exchange when
the same kind and quality and class of corn
from regulars brought AZ cents. One car
was either No. or not grade, I've forgotten
which, and 1t sold for SO cents. All three of
the cars were sold to ]. F. Twamley &
Son. That was done on June 9, 1904 and
the records of the exchange will bear me
out in that assertion, because It's the
truth"
In his testimony Of yesterday the wit
ness detailed how the association had gone
outside the state and tried TO influence Chi
cago dealers against buying from him. He
accused the railroads of refusing to give
him sites for elevators. Well along in the
afternoon Attorneys Ed P. Smith and M.
L. Learned said they were through asking
questions and Attorney F. s. Howell. for
the plaintiff started on the cross-examina-
ton. The story about the farmers grain
was developed before the proceedings ended
for the day. to be taken up again this
morning, when more sensations are prom
ised.
what UDdike Said.
Mr.. Worrall yesterday afternoon asserted
that Nels Updike told him, with reference
to the association: You know my office is
right on the same floor with them and l
am compelled to do some things that I
don't want to do, but do rather than to
have a row."
Witness admitted that from June to De-
cember, 1904, the Worrall Grain company
sold the Omaha Elevator company a large
number of cars of corn and wheat and
bought some from the same firm. Worrall
said:
Early in February, when we had been
told by j. +. Van Dorm, Rudolph BeaI. the
Exchange Grain company, that the Omaha
Elevator company the Transmississippi
Grain company and the Updike Grain com
pany had put up a job whereby the little
fellows and the irregular fellows could not
dispose of their grain at the same price
they did. I went to Chicago. / called on
Harris, Scotten g. Co. l laid the matter
before them and asked IL It were true Jo-
seph Schneideker told me committee from
Omaha had called on him and wanted his
company to refuse to bid the Worrall
Grain company, the Exchange Grain com
pany. the George Adams Grain company
and the Nebraska Hay and Grain com
pany because we bothered them and that
they could not get as large a profit as they
thought they were justified I'm having. Jo-
seph Schneideker told me he never entered
into an agreement at any time at any
place that he hated to as bad as he did
that, and that he felt ashamed OF himself
for ever having submitted to such an ar
rangement. He said This is the first
time in my life l ever did such a thing
and II is going to be ny-last. He said
they insisted upon drawing the lines so
that they could do business only with those
who had elevators.
Told Him He Had Elevators.
"I told him we had an elevator at Coun-
Gil Bluffs that would hold from 5000 to
10000 bushels when done He then said no
would do business with US. and did.
schneideker said that the Omaha commit
tee told him his firm must not expect 10 do
any business with them II they insisted
upon bidding the little follows at Omaha.
After that one OF the members OF the
Rosenbaum Grain company came out here
and said TO me: We had some trouble
about your business and some other deal
ers here. but after thinking the matter