Warren sheaf. [volume] (Warren, Marshall County, Minn.) 1880-current, 1907-05-23

Il Is evident that the reason for such
opinion is based upon the fact that
these exchanges gather together the
buyers and sellers Of all grains and
that therefore anyone having grain to
sell naturally goes to these exchanges,
simply because, if for no other reason,
that ali the buyers and sellers of grain
are in the market. It is a matter OF
convenience as we'll as expedition for
either buyers or sellers to be members
of either of these exchanges. Each
exchange provides a definite rate Of
commission to be charged, which is
cent on wheat and barley and one
half cent on oats, ETC., and also pro-
vides that members can do business
for other members at one-half the reg
ular rate, but it is also apparent that
unless transactions are very large the
Interest on an investment of mem
bership being considered and the vari-
ous costs and expense attendant upon
the conducting of the business is con-
sidered that there is a very slight diff
ference as to the costs between being
member or non-member It also
appears that by virtue of the high
standard of business integrity main
tanned by these exchanges, that the
farmer and country shipper can, to a
very great degree of safety. rely upon
the honesty of such commission mer-
chant with whom he does business.
1T also appears to your committee
from the evidence that the movement
of the grain crop of the Northwest re-
quires very large sums of money and
it also appears that the commission
merchants Of these exchanges not only
act as grain receivers, that IS, as the
trusted agents of shippers in receiving
their grain and selling the same, bit
that they also to very large degrees
advance the money to these shippers
in advance Of Shipments. It appear.
Ing that 1t certain times of the year
an amount Of money as great as $1o.-
100000 or $12.0o0.o00 Is loaned by
these commission merchants of the
two exchanges to the grain dealers at
country points throughout the North
west and at reasonable rHte OF IN.
terest. It being impossible for thess
country grain dealers to get the neces-
sary financial assistance from their
own country banks because of the fact
that no country bank, and in fact no
bank, can loan to any one concern
only certain fraction OF it's capital.
The commission merchants are there:
fore to large degree sustaining grain
dealers at country points in finan.
cial way and it is apparent that the
commission merchants, who are like.
wise borrowers of large sums OF money
themselves, are enabled to get this
money which they loan in this way
from the banks of the larger cities
because of the fact that they are mem.
bers of these exchanges and that these
exchanges themselves act as strong
forces in building up proper business
methods and principles and thus in a
very large degree aid their members
in their standing with the lending
| world. The testimony of the bankers
offered before this committee clearly
shows this phase OF the work Of these
exchanges. It also shows that it en-.
ables dealers of grain to so hedge
! their deals that at no time are they
specializing on the market or affected
! BY the tluctuation of the markets and
| they are thus enabled to show to the
! large bankers that they are at al
times secure and at no time are the!
running risk of being bankrupted o.
account of the sudden change in valHe
ut appears that the chamber c
commerce of Minneapolis expenGs be
tween 100000 and $4,000 every yeal
in information which is disseminated
among it's members advising them @
| the various facts and situations of the
markets throughout the world, thn
enabling the producer Of grain to kea!
thoroughly posted as to the marke
conditions of the entire globe.
/ 1T appears that the grain trade Q
the chamber of commerce of Mfnnear
oils has grown from 100000 bushel
in 1851 to 1870, 00o, 900 bushels Of grail
in 1906 and the board OF trade OF Du
luth has seen its grain business groy
from $500, 900 in 1881 to 100000 1000 i
1906. Thus it can readily be seen tina
SlICO JuC Vi NaAlA0kANAA Va SN1AVSV o 90
exchanges the grain trade has deve
oped greatly in the Northwest.
Your committee feels that, Will
perhaps they have not had the tim
to minutely investigate Ill the phase
and charges that have been mad
against these different exchanges, ye
they feel sufficiently well informed Q
the subject now under Investigate
to add the following as the deductio
Of the evidence by the different pa
i ties who have been summoned to te
tify before this committee.
"a cepy Of all Of this evidence Q
fered and all OF the rules, regulation
and bylaws, together with the article
of incorporation OF both Of these e:
changes, is hereto attached and mad
q part of this report.
Your committee, however, althoug
being satisfied that these grain e
changes have been in their operation
and are now, productive of great be-
"a Gifts. vet your committee Is incline