The Minneapolis journal., 1906-10-23
WHEAT BIDS FIXED
BY BOARD, HE SAYS
Grain Dealer Declares Kansas City
Elevator Combine Sets
the Price.

81 Kansas City, Mo-, Oct. 23.-Both
Commissioners Clarke and Lane were
on hand today when the interstate COM
merce grain hearing was resumed in the
district court Mr.. Lane had been de-
layed in getting here from Chicago.
The commissioners leave tonight for
Omaha, where the hearing will be tax
en- up again.
B. R. Beall of Kansas City of the
which is affiliated 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 it's
members likewise were blacklisted by
the Kansas City Board of Trade. He
also stated that the rules of the Kansas
City Board Of Trade provided that any
member of that organization dealing
with members Of the National Board
of Trade were liable to suspension.
Fixed Wheat Prices.
Mr.. Beall said that he had been a
member of the Kansas City Board Of
Trade up to year ago.
'Was there at that ttme,' asked
John H. Marble, attorney for the in
terstate commerce COMMISSION, any
combination in existence to agree upon
the price to be paid by the members of
the Kansas City Board of Trade for
NYes,n said Mr.. Beall. "Such a
combination existed in 1904.''
Mr.. Beall said that the elevator com
panies in Kansas evidently were in this
combination and he named half a dozen
leading local grain firms and individual
grain men who were members of it
Among them he said, was the South
western Grain Elevator company
owned by Armour. =,
Attorney Marble handed NJ Bean q
price card issued to members OF the al
legged combine Nov. "a, 1904, and wit.
ness recognized it as being similar to
one he had received.
Mr.. Beall said that the combine was
formed in the office Of one OF the
prominent members Of the Kansas City
Board of Trade in April 1904. He was
a party to it one day only and then
Withdrew because he did not like the
arrangement.
Rate Fixed Every Morning.
. All the principal elevator men in this
city, Mr.. Beall said, were members OF
the combine which fixed it's prices every
morning. Grain generally was bought
at the fixed prices, which was fixed arbi
trarily. 1t was determined on the basis
of the Chicago option and marg11
sufficient to insure a profit to members
Of the combine was agreed to-.
George P. Black of the Midland Ele
vator, a branch Of the Peavey Grai1
company here, testified that his com
pany maintains fftysix elevators OF
the Union Pacific and seventeen on it,
branches. He said he was "inclinet
to Think his company was the larg
est shipper on the Union Pacific.
Hated the Shovel Men.
:, Mr.. Black often talked over tn
grain business with competitors, but h
had no agreements as to the price q
division Of the grain. He said b
bought grain from other elevators, bu
he would not buy grain from loca
dealer who shoveled it. t%"s;
p "I'u go up to my limit to drive hiI
out Of business. The scoop shoveler !
a demoraizer-here today and gone tc
morrow. He has no investment an
we drive him out where we can. W
raise the price Of grain on him to .ge
rid of him. We ordinarily buy on
margin to make 21a cents a bushel.
don't try to drive out farmers elevs
tors that way.' -"