Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1906-08-15
AFTER GRAIN TRUST
Steps Being Taken That May
Lead to Prosecution of
Elevator Combine
ARMOUR COMPANY AFFECTED
Board Of Trade Member, John Hill, Jr.,
Said To Be the Moving Spirit in
the Proposed Inquiry-FederaI and
State Courts May Both Act-claim
to Have Evidence.

Chicago Aug. 15.-Steps are being
taken which may lead to the prosecu-
ton OF certain elevator companies in
Chicago, alleged to constitute trust
under both the state and the fedora!
laws. The concern most directly af-
fected is the Armour Elevator Com
pany. The other concerns against
which action is contemplated are the
Calumet Elevator Company and the
Central Elevator Company, controlled
by Bartlett, Frazier & Darlington,
the Peavey Grain Company, tho Ros-
enbaum Grain Company, the South
Chicago Elevator Company, and
Keith & So
The moving spirit in both the pro-
ceedings is John Hill, Jr., board of
trade member, who has had many bat
ties in the last twenty years with ele-
vator companies, alleged to be acting
adversely to the interests Of grain pro-
ducers and the public and in violation
Of the laws,
Gives Evidence to HeaIy.
Mr.. Hill has been presenting evil
dence to States Attorney Healy for
the purpose of demonstrating to that
official that there is probable cause
why the Armour Grain Company
should be proceeded against for con-
tempt of court for violating an in
junction issued by Judge Tuley ten
years ago restraining it from dealing
in grain passing thru its warehouses.
He is trying to secure the prosecution
Of both the Armour and the other con-
Germs above mentioned for dealing in
grain in violation Of the state law as
construed by the supreme court nine
years ago in an opinion upholding the
injunction.
The punishment for contempt rests
largely in the discretion Of the court
If convicted of dealing in grain the
elevator companies could be deprived
of their licenses to do warehouse
business.
Mr.. Hill proposes to present all the
evidence he may secure to the inter-
state commerce commission and the
federal department of justice in Or
der that if the facts will justify it, the
elevator companies may be prosecuted
under the national antitrust law. He
also believes they have agreements
which make them trust in violation
of iNa state laws:
More Trouble for Companies.
At the same time that Mr.. Hills ac-
tivity is troubling them, the elevator
men are on the anxious seat regarding
an examination of their affairs, which
is being conducted under the direction
Of the interstate commerce commits
sion. A short time before the adjourn
ment of congress resolution present.
ed by Senator LaFollette, of Wisconsin,
was adopted directing the commission
to make "a thorough investigation OF
the elevator and grain buying and for
warding business of this country to
determine to what extent special ia
vors have been granted to them by the
railroad companies the influence
which the alleged monopolizing of this
branch of business has had upon the
market, and the injury it has worked to
the grain producers.
There is good reason to believe that,
in execution Of this resolution the COM
mission now has investigators in Chi
cago seeking the required information.
The commission has also sent long
letter to the officials of tho
various railways ordering them to send
it complete information regarding the
relat lions with elevator companies ALI
fe. Not TO hi ol,
desires Information are fully
set forth.
Says Companies Violate Law.
Many changes have occurred in the
elevator business in Chicago since Mr..
Hill nine years ago carried to a sue
cessful issue the suits he started to
stop warehouse proprietors from deal
ing him in his contentious. The eleva-
tor proprietors since then nominally
have stayed out of the grain business,
but practically, it asserted, they have
not.
1T is alleged that the action of the
Armours in warehousing grain as the
Elevator Company and dealing
in it as the Armour Grain Company is
a mere subterfuge adopted to enable
them to violate the law and at the
same time escape it's penalties. The
officers of the Armour Grain Company
are. President, George E. Marcy: vice.
president. E. M. Higgins; secretary,
A. James. The Armour Ele-
vator Company has the same officials.
These officials are also the only indi-
vidual stockholders in the Armour Ele-
vator Company, the Armour Grain
Company owning the rest of the eleva:
tor concerns stock 1t is therefore
that the two companies are
one and the same.