Omaha daily bee., 1906-10-17
BROKERS FIX PRICES FOR GRAIN
Agreement as to How Much Shall Be Bid
Tor Country offerings
ELEVATOR MEN ELIMINATE COMPETITION
Companies Refuse to Take Grain from
Each ether for Storage,
ARMOUR CONTROLS MANY COMPANIES
One of His Employees says Bidding for
Grain L. So Keen that There is
Little Proat In the
Business.

CHICAGO, oct. 16-W. 5. Jackson. for
NOR president of the Chicago Board of
Trade. was called as witness at today.s
session of the Interstate Commerce CONF
mission to testify as to the practice OF
| owners of elevators storing grain contrary
! to law. lie testified that he had known
OF cases where grain had been stored In
elevators that belonged to the owners OF
| the warehouses
In such cases, he stated, however. 1t was
the custom to transfer the title of the
grain before storing Il, thus in a way COM
plying with the letter of the law After
! the grain removed from the elevators
he asserted IT would he retransferred to
the owner.
Several other grain men testified that
such a practice was in vogue aud stated
that they did not consider II in violation OF
the law.
Board Rule Criticised.
Richard Gambrin Board OF Trade
broker, was the first witness called today
when the Interstate Commerce commission
| resumed its inquiry into the methods OF
handling grain in the west and northwest
Mr.. Gambrili declared that the rules OF
the Chicago Board Of Trade are clearly i'm
restraint Of trade and are rapidly making
the Chicago grain market in the words OF
the witness, "a one-horse proposition"
"A rule Is posted In the Chicago Board
Of Trade exchange" said Mr.. Gambrill.
(which prevents me from going into the
country and bidding for grair. That. Ia
my mind, is detrimental to business and Is
In restraint of trade
Samuel Finney, another broker on the
Board of Trade. testified that there Is an
agreement between certain board Of trade
men to bid certain prices for grain in the
country. and he named two Arms which he
declared are party to this agreement.
Employees OF these firms were at once
served with subpoenas.
President B. L. Winchell OF the Rock
Island road was then called 10 tell about
the purchase OF elevators from the ChicaRo
Rock Island Elevator company for 81, 10000
concerning which Mr., shafer testified yes
terday.
President winchells testimony covered
the details Of the purchase of the elevators
and contained nothing sensational
Agreement Among EIevator Men.
James Petit. president Of the Peavey
Grain company. testified that up to sixty
days ago there was ain agreement among
six elevator companies whereby their
profits on the storage Of grain were as
| sured them, each agreeing TO refrain from
taking grain FROM the warehouse Of the
other for shortage. He said that this
agreement was dropped when the new rate
law went into effect.
Mr. Petit declared that the agreement
between the elevator companies provided
that each company should pay In tllrce-
fifths OF cent bushel of the storage for
the first ten days, the money to be Kept
in a fund to be redistdbuted to the com
panies in proportion to the amount OF
grain in each storage house. Under this
agreement, If no grain went out of the
stores, all Of the money was returned IL
there were but two companies in the
agreement, and one allowed 100000 bushels
to be taken out that company would get
back two-thirds OF the amount Il had paid
in and the other company would retain
| one-third Mr.. Petit declared that he was
not sure whether the new rate law would
permit of this agreement and not being
able to obtain clear legal opinion as to
its legality, he withdrew from the agree
ment Those who had been in IL with
him, he said, were the Armour Elevator
company, Calumet Elevator company. Cen
tral Elevator company South Chicago F;le-
vator company and the J. Rosenbaum
Grain company.
The witness said that the agreement did
not prevent competition, but declared that
it allowed the bidding of higher price
for grain In the country.
Little Pront I'm Business.
Secretary James Of the Armour Elevator
company and Armour Grain COMPANY was
! the next witness He said the Armour In
terest control besides these two companies
! the Nicola Elevator company, Milwaukee
! Elevator company and the Southwestern
Elevator company. lie said that the officers
in all these companies were practically the
same The Nicola company, he asserted.
leased some elevators from the Chicago.
Burlington & Quincy Railroad company at
the rate OF $500 a quarter. the railroad
paying taxes insurance and repairs
George Marcy, president of the two COM
panies bearing Mr.. Armour's name, was the
next witness. He declared that the bid
ding on grain in the country is so keen
and there so many commission men
In Chicago after It that by the time the
grain reaches Chicago there is little profit
in It.
When asked about the rule on the Chi
cago Board Of Trade prices to be bid on
country grain, especially as TO its fair
ness, Mr.. Marcy declared that It was NOT
/ fair and that he voted against il.
i. +. Rumsey OF Rumsey a Co. for
fifty years member OF the Chicago Board
OF Trade. then took the stand and de-
clared that he is unqualihedly In favor OF
the grain dealers associations ana I'm favor
Of discouraging farmers In the elevator
business.
He said IT was not fair TO commission
men who deal honestly and that this state
Of affairs should not be allowed 20 40 on.
He concluded his testimony with the re-
mark:
The grain dealers are the most homer
able men as a class in the world"
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