The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1906-09-23
A GRAIN TRADE QUESTION

A GRAIN TRADE QUESTION
The finding of the court in the case
OF the state of Minnesota against the
Duluth Board of Trade is of wide in
terest. Mr.. Young, the attorney gen
eral,. brought the suit at the instance Of
the Minnesota Farmers exchange, an
organization or association of farmers
having for its purpose cooperation,
economy in the marketing of grain and
the effecting of a greater net return to
the producers included in it's member
ship. The association had some trouble
with the Duluth Board of Trade. It
was alleged that the right to member
ship in that body was denied the repre-
sentatives, Of the farmers, and an effort
was made to show that the Duluth
board seeks to control the grain trade
at the head Of the lakes, that it tries
to keep the farmers out of the bust
ness, that it is a conspiracy in restraint
Of trade, and that the uniform commits
sion rule of the board is in violation of
the antitrust law of the state of Min
nesota. '@'& =, ?.
The state had failed previously t,
make the general charges stick and the
decision recorded yesterday hinged upon
the legality Of the commission rule.
Indirectly the Minneapolis Chamber
OF Commerce, Chicago Board Of Trade
and other organizations Of the kind are
concerned. '>
It is doubtful if the last has been
heard OF this question, altho it will
probably not come up again in quite
the same form. There is a tendency on
the part of, farmers to get together for
the purpose Of lettering themselves
financially by cutting out middle men
and otherwise reducing the cost to
them Of marketing their produce. Many
glowing schemes have been heard of
along this line, most Of them imprac-
ticable. Still, the trend is on, and only
last week there was the report of a
new farmers association in the Cana
dian west for mutual benefit and profit.
There would seem, then, to be an un-
settled question Of the right Of an ex-
change to exclude from membership
such an organization of farmers. This
does not imply that the Duluth board
did this; on the contrary, it is specif-
cally denied that the farmers were
turned down by the Duluth board. New
| ertheless, the question is there. "
! If man were to apply for admis-
sion to the Minneapolis Chamber of
! Commerce and it was his known inten-
ton to do business at lower rates of
commission than other members, he
would probably be denied admission,
nor is it likely he would have any re-
/ L. 1O..A
a hundred, five hundred or thousand
farmers agree to market their grain
thru one channel, a representative of
their interests to guide and direct the
flow Of their product, and if the idea
is to so economic and eliminate ex.
penses as to obtain FOR those farmers
who are members larger feturns than
, obtained by other farmers, with the
further plan that all such saving shall
be, returned as profit pro rata to the
members. then the question Of whether
or not this is equivalent to the cutting
Of commissions would come up, together
with the right Of the chamber to ex
! clude from membership any representa-
tive Of such organization.
There would be- nothing to prevent
these farmers from marketing thei1
grain independently. They might offe1
it direct to millers or exporters without
regard to the established boards Of
trade. But since they have shown de
sire to secure the recognition Of the
exchanges and to obtain representation
therein, it would appear that they con
slider it impracticable to sell their grai1
to advantage on the outside: Herein
| tLo,, :, 4ho IL co for' +ho oro,,rno tha1
the boards Of trade are a monopoly
and also for the counter argument thai
concentration of the business of buy
ing and selling in a few centers hal
so cheapened the cost. Of operation tina
it is now done at the minimum of ex
pense and that if the farmers are un
able to handle and market their grain
Independently Of the existing exchange
it is because Of these economies created
by years of experience, and not becaus
Of any desire on the part Of thes
bodies to prevent the farmer from goin|
about the marketing of his product il
any way he may see fit.
ANY association Of farmers applying
for membership in the Minneapoli
Chamber of Commerce would probabl..
receive the same courtesy as any othe
applicant and be considered sole
ly with regard 90 to financial re
sponsibility and good moral char
acter. Nevertheless, such an asso
citation might be doing for its member
Indirectly what the chamber will. no
, permit it's own members to do tin
rates of commission. The chamber
under it's bylaws could therefore cor
; sistently exclude such an organization
yet if it did so the charge Of nlonopol
and discrimination would probably b
raised.
The thing will come to test eventua.
ly, when the first authorized represer
tative of such farmers association
Of good moral character, proper recon
!: mendation and satisfactory bank az
. count appears and applies for men
,, bership.
,, HEAVY IMMIGRATION =:
/ The number of immigrants landed i
the United States during the mont