Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1906-10-26
Manager Of simond Shields
Grain Company on the Stand
All Morning
ALLIED WITH THE RAILROAD
Testimony Indicated the Grain Cons
pany Was Closely Connected With
the Railroad Interests, il Not Owned
by It-EmpIoyes Worked for Both
Companies.
Special to Times-Republican.

Des Moines, Oct. 26.-The Interstate
commerce commission today began ex-
animation Of witnesses in the hearing
relative to the alleged grain trust in
Iowa. Commissioners Lane and Clark
arrived last night. Attorney Marble
for the commission did most Of the
questioning Of witnesses today.
In the testimony Of Mr.. Hiland boz
fore the interstate commerce COM
mission today on the dual capacity Of
e. w. Shields. as agent for the Mil
waukee, as manager Of their Kansas
City elevator and member Of the 81
monds- Shields Grain Company, the
largest shipper thru the elevator, Mr..
Hiland testified that the clerks en-
ployed in the office as agent for the
railroad might also at times work for
the grain company. but that he had
no knowledge whatever as to whether
they were honest and did sufficient
amount OF work for the railroad.
He said they hired Shields to look
after that and Attorney Marble OF the
commission wanted to know whether
he knew that Shields did look after it.
Mr.. Hiland was unable to say that he
did. Later he said the roads auditor
was expected to keep check on
Shields and the board Of directors was
responsible for the auditor and, he
the board Of directors or that anybody
was real sure that the road was get
ting what it bargatned for.
49, af~.A
some length on the leasing Of the tile
tanks for the storage Of grain to the
Simond- Shields Grain Company the
amount OF rental, etc.
Mr.. Marble. attorney for the COM
mission, asked him II he did not know
that. the lease with the privilege Of
clean ing, clipping and mixing grain
was worth $4,000 a year. Mr.. Hiland
had testiAsd that they were leased on
q basis Of $1,000 for capacity Of IT,
100000 bushels and the capacity ocs
those leased was 100000. He testified
that the fact that Simonds Shields
were large and responsible shippers
and that the road had to look to get
ting as large shipments as possible and
hence it was perfectly proper to give
the lease for $1,000.
He said emphatically he would de-
cline to consider an offer Of larger
amount from a smaller concern that
did not have the connections on this
road and give equal promise Of az large
shipments.
Mr.. Marble then led Mr. Hiland into
the question of how much Mr.. Shields
was taken into consultation in the hx-
ing Of freight rates. He denied 1iv-
ing Mr. Shields any special advantagv
as shipper. but admitted that Shields
as agent was promptly notified Of
changes and that he had been In con-
sultation In Chicago year ago when
the export rate on corn was withdrawn
as well as when the rate was put into
effect and that he furthermore knew
Of the rate that was in effect from At-
gust 1 to 10, this year on wheat to
meet rate on flour made by the Great
Western. M
Mr. Hiland denied all knowledge Of
any contract with the Neigh Elevator
Company. whether the elevator COM
pany agreed to ship any specific
amount Of tonnage, contradicting the
testimony at Omaha that the elevator
company quit business at two eleva-
tors because Of the unprohtablepess 81
this contract. He admitted that J.
Ogden Armour was q director In the
Milwaukee and interested In the Arr
mour line Of elevators on the road.
Commissioners CLARK then took up the
questioning and went into the details
Of the contract with Shields at Kan
sas City, whereby 1t was shown that
the railroad had failed to give notice
as required by the contract Of the
withdrawal OF the charge on cleanings
clipping and mixing grain. Commits
sioner Lane spoke up to say that the
mistake was in hiring Shields who. as
the railroads agent, could not keep
Advance Information from himself -
. shipper.
c. g. Meesaroie was called as wit-
ness. He directly charged that An
Iowa Grain Dealers Association logn-
ed the pool to control business in lows
and boycotted him when he refused to
joi min. He Is secretary sf the Coop
erative Farmers Association.