The Montgomery advertiser., 1906-10-24
METHODS OF < GRAIN TRUST Evidences of Favoritism
 Shown. INDEPENDENTS ARE CUT OUT Interstate Commerce Commission
 Hearing Is On. Score of Dealers, Elevator Men and Railway Omcials are Examined
 In Kansas City-Was
 Not Completed.

IAuhodS Slty' Nlo OCt. So.-1N of favoritism shown to the Kansas City elevators of the Chicago, Milwau- kee and St. Paul Railway in the mat ter of granting reduced grain rates to shippers. the existence of a rule in the Kansas City Board of Trade, threaten ing It's members with suspension if they dealt with irregular grain men, so-called. a combine of members of that organization to fix prices and threats by grain dealers associations to boy colt Boards of Trade members who might buy from farmers and others against whom the associations had is- sued orders. were some of the things brought out here today at the grain hearing begun yesterday by the Inter- state Commerce Commission.
 A score of grain dealers, elevator men and railway officials were exam ined. It was decided to continue the hearing tomorrow.
 E. W. Shields. elevator agent for the Chicago. Milwaukee and St. Paul Rail- way and active manager of the Sim onds- Shields Grain Company of Kansas City. proved an important witness Mir. Shields said he was in Chicago last fall when he was called upon to advise about a special export rate on corn. He helped make a rate, effective sew eral days later. then came home and bought corn right and left.
 He shipped 3.5oo,o0o bushels before other dealers learned that the reduced rate would be made.
 Again. this summer, he said, he hap pened to be waiting around the office of the Vice-President of the Chicago, Milwaukee and St. Paul Railway when the railroads agreed on a cut of 1-2 cents a hundred pounds on wheat. He went out and sold several hundred thousands bushels for delivery under the rate.
 R. R. Beall or Kansas City of the National Grain and Elevator. which Is afiliated with the National Board of Trade of Kansas City, a rival of the Kansas City Board of Trade. testified in effect that farmers who dealt with the National Board and its members likewise were biackiisted from the Kansas City Board of Trade. He also stated that the rules Of the Kansas City Board of Trade provided that any member or that organl1atlon, dealing with members of the National Board of Trade were liable to suspen- sion.
 MT. Beall said that his company in It's existence had sold probably half A million bushels of grain. none of which he was able to sell in Kansas City, because of these restrictions.
 Asked if his company had expe- rienced any trouble from the Kansas City Board of Trade or from any rail- way in moving its grain outside of Kansas City. MT. Beall said:
 "Yes. We experienced interruptions when we attempted an export ship ment of wheat at New Orleans through the Illinois Central elevators in that city. They placed an embargo of 1-2 cents a bushel on our shipment for running the wheat"
 MT. Beall had. he said. protested viz orously to the officials of the New York Central Railroad. both at New Orleans and Chicago and charges were considerably reduced.
 Continuing MT. Beall said tbat their grain on this particular shipment was all short in weight in the elevator from 1000 to 2.000 pounds to the car.
 MT. Beall declared that he did not consider 1t safe for his company to operated by persons interested in the Kansas City Board of Trade.
 Mir Beall said that he had been a member of the Kansas City Board of Trade up to year ago.
 Was there at that time," asked John S. Marble. attorney for the In- terstate Commerce Commission, any combination in existence 10 agree on the price to be paid by the members of the Kansas City Board of Trade for wheat?"
 Yes" replied MT. Beali Such a combination existed in 19of" --
 MT Beall said that the elevator com panies in Kansas City were in this dozen leading local grain firms and in al tnr bers of it. Among them, he said. was the Southwestern Grain Elevator owned by Armour ...:
 All the principal elevator men in the city MT. Beall said. were members of the combine. which fixed it's prices ev- cry morning. It was determined on the basis of the Chicago option and margin sufficient to insure a profit to members of the combine was agreed to.
 Mir. Beall was asked If ha knew of any Kansas City grain men ever having been notified by the grain deal CTS association of Oklahoma. Kansas or Nebraska not to buy grain of irreg- ular shippers. so called.
 Mir. Beall said that such notifications had been received up to within two or three years ago. The Kqnsas grain dealers association. 1t was generally understood at that time, he Sai1, W 1d'i boycott any buying 'u"h prosc"ibed grain. Kansas City grain members generally. he said. had followed the wishes nf tho Kansas glain dealers in this matter. not takir.- grain from the irregular dealers or from the farm CTS direct.
 Mr. Beall cxpla ned that the National Board of Trade had hedduuart"rs in Kansas City. IL mad twcn;y-fivr act;V" members here ani about 4oo 'n Cther cities. It had no exchange outside of Kansas City. In reply to direct question, Mir. BeaN declared that the members of the Natipual Board nf Trade were blacklist l by the Chicago, Minneapolis and l.dusas City BodrdS of Trade, and that the Kansas City Board of Trade interier.I with all shipments of grain bal"IsinS to the National that passed thrNuYa Kansas City.
 Loot Oklahoma Bank.