The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1906-10-23
GRAIN COMBINE.
Workings Of the Kansas City
Board Shown Up.
Farmers Who Deal with Rival
Are Biacklisted.
FIXED THE PRICES.
Discrimination By Railroads Is
Also Alleged.
b. R. BeaIl Testifies Before In
terstate Commission.


Kansas city. Mo, oct. 2s.-Both
Commissioners Clarke and Lane we're
on hand today when the interstate
commerce grain hearing was resumed
IN the district court. Mr.. Lane had
been delayed in getting here from Chi
easo. Twenty grain dealers. elevator
mne and railway officials had been
subpoenaed to testify today The
commissioners will tonight leave for
Omaha, where the hearing will be
taken up again.
B. r. Beal of Kansas City of the
National Grain & Elevator company.
which is affiliated with the national
board of trade of Kansas City, a rival
Of the Kansas City board of trade,
I testified in effect that farmers who
dealt with the national board and its
members likewise. were bIackIisted by
the Kansas City board of trade.
He stated also that the rules of the
Kansas City board Of trade provided
that any member Of that orga MIA ton
dealing with members of the national
board OF trade were liable to suspen-
sion.
Mr.. BealI said that his company in
its existence had sold probably half
million bushels Of grain, none of which
he was able to sell in Kansas City, be-
cause of these restrictions.
Asked if his company had expert
enced any trouble from the Kansas
! City board of trade or from any rail-
way in moving its grain outside of
Kansas City, Mr.. Beall said:
Yes, we experienced Interruptions
when we attempted an export ship
/ through the Illinois Central elevator in
j that city. They placed an embargo of
! . II cents bushel on our shipment for
running the wheat"
Mr. Beall had. he said, protested
1 vigorously to the officials of the Illinois
t Central railway, both at New Orleans
/ and Chicago and the charges were con-
siderably reduced.
Continuing, Mr.. Beall said that their
grain on this particular shipment was
all short in weight in the elevator
from l, 900 to 1000 pounds to the car.
Mr.. Beau declared that he did not
/ consider it safe for his company to
put its grain through any elevator
operated by persons interested in the
Kansas City board Of trade.
Mr.. BeaH said that he had been q
member Of the Kansas City board Of
trade up to year ago.
Was there at that time" asked
John H. Marble, attorney for the in
/ terstate commerce. commission. any
conbtuat ton in existence to agree upon
! the price to be paid by the mem bers OF
the Kansas City board of trade for
wheat?'
Yes replied Mr.. BeaH. Such com
/ binatiOn existed in 1904. Mr.. Beall said
| that the elevator companies in Kansas
City were in this combination and he
named half a dozen leading local grain
1 were members of it. Among them. he
said, was the southwestern grain ele-
vator owned by Armour.
Attorney Marble handed Mr.. BeaH
i & price card issued to members of the
alleged combine November Is 1904, and
witness recognized 1t as being similar
to one he had received.
Mr.. Beal said that the combine was
formed in the office of one of the prom
| inent members of the Kansas City
board of trade in April. 1904. He was
/ a party to it one day only and then
/ withdrew because he did not like the
arrangement.
All the principal elevator men in the
/ city, Mr. Beall said. were members of
the combine, which fixed its prices every
/ morning. Grain generally was bought
/ at the fixed price, which was fixed arbi-
trarily. It was determined on the basis
| Of the Chicago option and a margin
| sufficient to insure a profit to members
| of the combine was agreed to.
Mr. Beall was asked if he knew of
| any Kansas City grain men ever hav-
ing been notified by the grain dealers
associations Of Oklahoma, Kansas, Iowa
/ or Nebraska not to buy grain OF irreg-
| ular shippers so called
Mr.. Beall said that such notifica lions
| had been received up to within two or
| three years ago. The Kansas Grain
Dealers association, it was generally
| understood at that time, he said, would
boycott any one buying such prescribed
grain Kansas City members generally,
he said had followed the wishes Of the
/ Kansas grain dealers in this matter, not
/ taking grain from the irregular dealers
| or from the farmers direct.
| Witness said he had heard that sew
eraI roads had refused to set cars for
the irregulars. but he knew of no actual
case of this kind.
Mr.. Beall explained that the national
board Of trade had headquarters in
Kansas City. It had IS active members
here and about 400 in other cities. It
had no exchange outside of Kansas
City. In reply to a direct question Mr..
Beall declared that the members of the
national board of trade were blacklisted
by the Chicago. Minneap polls and Kan
sas City boards Of trade and that the
Kansas City board of trade interfered
with all shipments Of grain belonging
to the national that passed through
kansas City. The weight department
of the Kansas City board. he said. in
sisted upon weighing all the nationals
grain, claiming the right to weigh ali
/ grain coming into Kansas City.
Mr.. Beau in reply to a question from
Commissioner Lane named ten members
Of the Kansas City board of trade, who
he asserted. had refused to buy grain
from his company, giving as an excuse
that they feared expulsion from their
board.
Kings Auto Hits a Man.