Warren sheaf., 1907-05-23
Inquiry and Report by a Joint
Committee of the Mime.
sofa Legislature.
Handling Of Grain Has Been Re-
duced to Safe and Eco
nomiCal Basis.

nesota, were investigated during the
recent session of the legislature OF
Minnesota by joint committee com.
posed of two members of the senate
and three members of the house of
representatives. Criticisms of the two
organizations had been widely circu-
lated through the Northwest and this
brought about the inquiry.
The committees investigation and
deliberations extended over period
Of several weeks and included the ex-
animation Of a large number Of wit
nesses. The conclusions reported to
the legislature were that the two Or
ganizations are benefit to the farmer
and grower of grain; that they have
SO facilitated the handling of grain
that 1t is done at the minimum of ex
pense and the highest worlds price is
obtained; that the high standard OF
business integrity required Of mem
bers Of the exchanges is a protection
to the cons3snor Of grain, and, in gen.
eraa, that the exehaAses ase entitled
to much Of the 6redK OF b0ildiAg UP
and developing the grain trade of the
Northwest. The report in full follows:
+ '''Yeur co11niffee begs to report that
pursuant to resolution adopted by the
house of representatives and senate,
providing that a conamittee Of fifteen
be appointed that said committee of
fifteen delegated to the undersigned
committee the work of investigating
the rules, methods, ETC., of the grain
exchanges as described above.
"And your committee reports that,
pursuant to such resolution, this un-
dersigned subcommittee held various
sessions and called before them vari-
GUS witnesses from different parts Of
the state of Minnesota and have lis
tened to all the evidence offered on
tie part Of these witnesses, all Of
Which is herewith submitted.
"Your committee reports that among
ne witnesses so giving testimony be-
fore this committee were the secre-
taries of these two exchanges, country
elevator dealers, country elevator own
ers, commission merchants, bankers,
millers, members Of the Farmers
Grain Exchange, etc.
And your committee reports that
these witnesses were subjected to ex'
animation and cross-examination I'm.
der oath and that, as result of such
testimony, it appears that these grain
exchanges have been organized for the
purpose of facilitating trade; for the
settlement of disputes; Of providing
rules under which business shall be
transacted, ETC.; that neither OF these
grain exchanges is engaged in any
way in the purchase or sale Of grain
or any commodity, the object of their
work being simply that of furnishing
facilities to their various members
and surrounding these members with
various safe methods and to establish
rules governing business transactions.
It has systematiZed it's business sc
that business people can market vol
umes Of grain readily and convert 1t
into money with less amount of fric'
tion and expense than ever before.
Your committee feels that the de-
velopment Of the grain business has
been materially helped by the organ
ization of these exchanges and that
they have been one of the causes that
has greatly developed the whole North
west These exchanges provide
place where grain can be bought and
sold; it gathers together at these
places the buyers and sellers anc
among these buyers and sellers are
those whose scope Of prices extends
beyond tho confines of this country
among the facilities offered by each O.
these exchanges Is the information
openly given to all members, Of thu
conditions of the various markets o.
the world at all times. The competi
tion of these exchanges is open ant
keen. The membership Of each Of thu
exchanges includes millers, elevator
owners, grain commission merchants
linseed oil manufacturers, bankers
cereal manufacturers, etc.; many O
the members Of each Of these ex
changes residing at other points thar
at the terminal markets; the competi
tion in the purchase and sale of al
grain in each of these exchanges Is 81
open, the interests represented in thu
exchange itself are So varied, the rule!
making the TRANSACTIONS so certain
and the high standard Of business in
tegrity maintained by each Of these ex
changes, that it seems to this commit
tee that the result Of the existence
and work Of these exchanges has :
very small possibility of being hostile
to the best interests of the producera
of grain in this state.
"Your committee report that ther'
are $50 memberships in the chambe
of commerce of Minneapolis, and tina
there are 200 memberships in thu
board of trade of Duluth and that al
these memberships are issued. ThA
in order to obtain admission to either
of these exchanges, membership Ger
tificate must first be bought and al
application be made to the exchange
for membership, which application Il
finally passed upon by the board Q
directors, it requiring majority (no
less than seven Affirmative votes) Il
sntitle the applicant to admission.
e. "1t annoars CLEARLY to vo1lr commit