The Dickinson press., 1907-06-01
The GRAIN EXCHANGES
Inquiry and Report by a Joint
N Of the Mime.
sofa Legislature.
go.
handling Of Grain Has Been Re.
duced to Safe and Eco
nomical Basis.

nOl1lCal Basis.
The chamber Of commerce Of Min.
neapolis and the board of trade of Du-
luth, the two grain exchanges of Min
nesota, were investigated during the
recent session Of the legislature of
Minnesota by a Joint committee COM
posed Of two members Of the senate
and three members of, the house Of
Representations 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 Q period
Of several weeks and included the ex-
animation Of . large number of Wit
nesses. The conclusions reported to
tho legislature were that the two or.
ganizations are q benefit to the farmer
and grower Of grain; that they. have
so facilitated tho handling Of grain
that It IL done at tho minimum Of ex-
pense and the highest worlds price is
obtained; that the high standard Of
business integrity required Of mem
bsrs Of the exchanges Ia . protection
to the consisnor Of grain, and. in Sens
eral. that the exchanges IRE entitled
to much Of the credit Of building up
and developing the grain trade Of the
Northwest. The report in full follows:
"Your committee begs to report that
pursuant to resolution adopted by the
house Of representatives and senate.
providing that a committee Of fifteen
be appointed, that said committee Of
fifteen delegated to the undersigned
committee the work of investigating
the rules. methods, ETC., Of tho 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
the part Of these witnesses, all of
which is herewith submitted.
"Your committee reports that among
the witnesses Sc giving testimony be-
foro this committee we're 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 q 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 systematiEed ito busiaess SO
that business, people can market vol
umes Of grain readily and convert it
into money with . less amount Of fric.
ton and expense than ever before.
"Your committee feels that the dc.
velopmeat Of tho 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 a
place where grain can be bought and
sold; 1t, gathers togethsFx s& these
places the buyers and sellers and
among these buyers aad sellers are
those whose scope Of prices extends
beyond tho confines Of this country;
among the facilities offered by each of
these exchanges is the infsrnation
openly given to all members. of the
conditions Of tho various markets OF
the world at an times. The sempeti-
ton of these sRohaasss ID open and
keen. The membership Of each d, the
exchanges includes nillsTs, elevator
owners. grain commission merchants,
linseed oil manufacturers. bankers.
cereal manufacturers. etc.: many Of
the members Of each Of these ex-
changes residing at other points than
at the terminal markets; the oempeti-
ton In the purchase aad sale Of all
grain in each Of these exchanges 10 50
open, the interests represented in the
exchange itself are 10 varied, the rules
making the transactions SO certain
and the high standard Of business in.
tegrity maintained by each of these ex.
chances, that 1t seems to this commit
tee that the result Of the existence
and work Of these exchanges has q
very small possibility of being hostile
to the best interests Of the producers
Of grain In this state.
"your. committee report that there
are $50 memberships In the chamber
of commerce Of Minneapolis. and that
there are 200 memberships In the
board of trade Of Duluth and that all
these memberships are issued. That
In order to obtain admission to either