Omaha daily bee., 1906-10-26

WIS known az farmers elevstora but these
were operated along the SEINE conditions
as line elevators. and that is what brought I
on the unpleasant relations between me
and the Grain Dealers association.
Dueked IN season.
II am q democrat BY politics and Con-
grogationaiist BY religion. believe IN
the policy Of maintaining prices and d. 4
vision OF business. "A transaction OF this 7
kind IN Kansas. where the manager got /
into trouble and into Jail for thirty days. /
convinced me that n the association bust 1
ness was wrong IN Kansas Il was unlawful
In Nebraska. and that time TO close the
doors Of penitenuary is when YOU are
on the outside. then closed deal In
conjunction with couple OF men at Elgn |
with the Observation-Disclosures company
FOR a farmers elevator bought It and then
\ the Nebraska Grain Dealers association
/ proceeded to boycott me- They would not
buy grain Of me, or II they did they bid
less than to others, so this was big
loss to me and subsequently ruined me.
then brought suit against forty-hve or
/ forty-six Of the association. This was in
June. 1905. ] believe the suit IL still pend
ing, though 1 did some time ago sign a
| stipulation for. it's dismissal oh. yes; ]
received some compensation, but ] do not
J INC 20 a'a'S tHe aiiouiie " '"0
ton"
Commissioners Lane; you need not DO
So"
Mr.. worrail: Il could do SO it you insist,
but / would much rather you get the tip
from the other fellow. Yes, the compensa-
ton was substantial"
MIR Marble. I'VE have received the tip
from the other fellows at Chicago"
Mr.. worrall; '"rhe reason stipulated to
withdraw the suit was that first it was a
better proposition, and second was that
was dead broke. I would not like to give
all of the transactions, as ! expect TO get
into the grain business again shortly,
want to see the terminal charges elimi-
mated. I did own an elevator at Council
Buns. but the road did not compensate me
for elevation allowances. I put in a claim,
but they refused to pay it,
Organization Of Farmers Elevators.
, J. g. Going OF Mlnden stated that he was
! connected with the Formers Cooperative
Shipping association which owned thirty
eight elevators, the line extending south to
: Billings Ok and north to Rising City
Neb. The head Offices OF the association
t were at Kansas City. The association did
: not enter into pooling arrangements with
Z competing line elevators and does not con-
: cede part OF the grain Of any locality to
ii
grain Each competitor tries to buy It's
prorate share. The capital stock Of the
concern is s1SG.O0O and money borrowed on
mortgages to operate the concern will bring
. Il up to Si25yO0O more The expense of op-
Grating the entire line OF elevators is about
S175 per day 1--WE buy grain on a strictly
competitive basis There IL no penalty
clause attached to our association, The
> Farmers elevators have benefited the farm
= ers and brought back more money to them
= than the regular line elevators. The cost
y OF operating a 1000 bushel capacity eleva-
y tor Is about $l25 per month each. One eie-
n vator will handle about $50 cars during the
y crop season. The grain is bought at cost
Z OF about cent bushel at the elevators
e II we go to 3 az or 3 to market IT, we
l must necessarily buy at a loss. We can
Y handle corn at ~ cents without loss and
N oats about the same.
" "Ae rule the country merchants are moi
e, favorable to farmer elevators We have
W good facilities at our elevators for handling
y grain up 20 a brokers standpoint The
e lack OF finances prevents US from building
r terminal, elevators. There are no SCOOP
II shovels where we continue 20 do business
1t Sometimes a loss occurs where there ar,
r more elevators than the locality viii jus
J. tify. We force the other elevators TO pay
h a better price than Il we were not there.
/
ie n. p. Peek on the stand.
J. The hearing was resumed Thursda!
1- morning at 10 O'Clock. with e. p Peck
general manager OF the Omaha Elc sato
ne company, as the FIRST witness. He said h
re had been member OF the Nebraska Grail
y Dealers association and that the purpos
70 OF that organization was to consult as {
prices and as to the best methods of buy
ing. selling and marketing grain. ANON
r. the grain companies members OF il wer
re the Central Granaries company, Nebrask
to Elevator company, Nye-schneider- Fowle
! company Transmssissippi Grain company
'r- Updike Grain company and Omaha Els
ee vator company All Of these companie
ke had elevators at country stations. rhe as
he ISOLATION dissolved about year and
70 half ago upon the advice Of the Unite
NIX states district attorney, who advised this
RS IL was a combination and might be amer
'ot able under the antitrust laws. No agree
mt ment was made by the association TO DO,
'rt business at any station. Witness knew q
60 the WorraI suit against the association
re but thought It was still pending. He sal
IT he did not know it had been dismissed; ha
20 received no notification to that effect.
se knows of NO Money Deal.
ed 81 do not know Of any money being pal
MI by the association to Worrall to WITHDRAW
ha the suit, There had been no agreement a
on any meeting OF the association to pa
i'd worrall for dropping the suit. I do nc
ne like track buyers or shovel houses.
would buy grain OF responsible merchar
M In any country town who had an elevator
be / was not Of the party, as testified by Nj
Ike Won Dorm wednesday. who went 10 Chidag
It's 70 induce the j. Rosenbaum Grain oompan
I to cease buying grain from Won Dorm nc
'er was ! a party TO any such agreement"
'er Nathan Merriam was recalled and test
rs hed as to his contract with the Missoui
n Pacific, which he held was still In efec
q There had been no modification OF the cor
Ie- tract, nor had Il been abrogated July
W. The contract was entered into some tim
I'D In october, 1895. The contract called fc
he reimbursement for all transfer servlc
ka elsewhere on the same basis as at Oman,
on on the basis Of IL cents per 100 pounds
ny points east OF the Mississippi river an
Big practically the same for all points wet
OF the Mississippi. A special reduction wa
made for the principal Missouri rive
nd points, and the price was proportioned
he the income OF the railroad from bushes
IA. coming through the Merriam a Holmquii
10 elevators on the basis or 81 for inoomin
ICE ana 81 for outgoing cars on ali roads ths
- -.-a.-.a aas,-iee a the Maria m eor,u.r,