The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1906-02-05
SAY PROCEEDINGS WERE
BROUGHT TOO HASTILY
AGAINST BOARD.
Special to The Journal.

Duluth, Mimi, Feb. 5.-The suit begun by the
state OF Minnesota, thru Attorney General Young
against the Duluth Board of Trade is one Of
great interest, not only to the members Of that
organization here, but to every board Of trade
and stock exchange In the country. If the
charges made against the local board are suf-
hclent grounds for sustaining claim Of illegal
lily there Is not similar organiza ton In the
country that would not be In the same tx.
This is the assertion of those who have investi-
gated the boards side Of the controversy.
There Is much criticism Of Attorney General
foung's complaint, not because he has instituted
but because he has filed a conl-
piaintin which are embodied assertions which he
states to be lin his belief true" Grain men
here say that he could have easily ascertained
that the charges were entirely untrue. They also
say the name farmers exchange" and the fact
inst some farmers are interested in the concern
making the complaint, may have led the attorney
eating the other side Of the case. An official Of
the board said: *f.4e
Says Charges Are Not True. al :.
'.The attorney general charges the Duluth
Bosrd OF Trade with twice refusing the applica-
ton ofs the Minnesota Farmers. Grain Exchange
for membership, when he could have found out
very easily that the said exchange never made
an application for membership, He also charges
that when the stock exchange began selling grain
thru the Duluth board 1t was stopped from doing
so thru the action of directors Of the board who
stopped all dealers from handling 1t, under pen
atty OF being boycotted. That assertion is alb
solutely false. No such thing was ever discussed
at board meeting, much less action taken. As
to the matter of handling the exchanges grain,
there Is not the slightest thing to prevent any
hrm from doing so, If the business is transacted
In accordance with the commission rule of the
board, which every member is required to adj
mere TO- Whether a firm wishes to handle the
business or not is matter for it to decide and
by the same rule, grain men cannot be COM
pelled to handle anyone's business whose respon-
s1b1l1ty may be In doubt -
There Is not grain man in this market
who has not sustained losses at some time or
other thru country shippers. More than one
firm can tell Of selling grain on which mortga ses
or liens afterward turned up that required il to
pc twice paid for Is 1t any wonder, therefore.
that the grain man picks his customers with
great care r. - -. - - ~ .rz..,- -. - :
One Of the largest firms here, according to re.
liable information, charged of 100000 in ten
years, an aversee Of $40, 900 year. This repro.
sented losses sustained in doing business with
country shippers. This is the side of the bust
mes that the public never hears Of and the
farmer never talks about. Minnesota laws, it i,
claimed, are peculiarly favorable to the grove,
Of grain as against the merchant -, !
&&~> Explains Membe rshdp Fee.
Another charge made by the attorney genera
! is that in further aid of the Duluth Board o,
Trades alleged conspiracy, a membership fee O.
1000 Is now demanded. The fact is the mem
bershiH is limited, and as the limit is reachet
! 1T would be impossible to gain admittance eve,
by paying double the required fee In thi
respect the board is like the Minneapolis Cham
Der OF Commerce, the Chicago Board Of Trad
| and every other grain and stock exchange.
It Is said here there is only one thing IN tn
entire complaint on which the state can fgh
| case: That Is that the commission rule
1 violation Of the law. The rule here is claime
to be no different from that enforced in oths
exchanges, and that the right Of exchanges t
make rules governing its members to their ad
vantage, as against outsiders has been sus
| tanned by the courts in practically every in
stance. One indignant grain man said today:
1T is frequently charged in the complaint tina
| the Duluth board Is seeking to create a monoE
oily Of handling the grain at Duluth. Tn
Duluth board is an organization under the law
Of the state. It has established a grain marke
here and the business here is done on it's floors
but there Is nothing to prevent any set of me
from organizing another board It would III
doubtedly take considerable capital to plac
! itself on paying basis, but the Duluth boar
| had to 20 thru period of hardship. The Supe
rior board is today trying to establish itsel
I without paying the price Duluth did, and at til
expense Of this market ,aY H. :|I
i In this connection, grain men freely expires
i the opinion that 1t would not take very search
j ing investigation to find the Superior Board
4 Trade people at the bottom of the charges ale
1 with Minnesota's attorney general. .s.