Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1908-05-01
Chicago Board of Trade Takes
Steps to Eliminate Price
Manipulation
ACTUAL VALUE TO RULE PRICE
Minneapolis Millers Join in Movement
to Break Wheat Corner by Agreeing
to Accept No. 2 Wheat at No. I
Price-Little Wheat Going Out of
Country.

Chicago, May 1.-Corners in grains
and provisions will not be popular in
the trade in the future if an amends
ment proposed by the directors of the
Chicago board of trade and posted for
be.lot is adopted by the members. The
amendment proposes to change the
rules of the board so that fictitious
prices based on the overbuying or over
selling of grain or holding products, or
market conditions, but are the result
of manipulative tactics on the part OF
an individual or combination of
individuals, will not be the bases for
the settlement for contracts on delivery
day.
The directors have been at work on
the rule for some time, and the amend
ment as posted is expected to stand the
st.ictest scrutiny. Past experiences in
divers corners of one community or an
other have been the guide in their work
of framing a new rule. The amend
ment provides that, in case any proper
ty is contracted for future delivery, and
is not delivered at maturity, the pur-
chaser must either purchase the same
for the account of the seller or require
a settlement Immediately and any dam
ages or losses to either party shall be
due and payable at once and be based
rlyaf vii the
day of maturity.
This rule, however. shall not be con-
strued as authorizing the payment of
extortionate cla1ms based on the ma
nipulation of the market. Any dis
agreement as to the market value
shall be arbitrated on request of any
party to the transaction by a COM
mittee of five disinterested members in
good standing. to be appointed by the
president. who shall organize at once,
and without unnecessary delay, hear
ana determine the case at issue. In
determining what the fair market price
is on the day of the maturity of the
contract. this committee shall take evil
dence offered by interested parties. In
determining the market price the vail
ue in other markets for manufacturing
and consumptive purposes shall be
taken into consideration. and also all
other facts irrespective of any fictitious
price that may prevail at the maturity
of the contract, and whether the value
has been arbitrarily raised by any COM
bination or by an individual.
Powerful Line-Up Against "corner."
Minneapolis. May Following the
announcements yesterday by nine 9TH
er milling companies, that they would
accept No. northern instead of No.
northern at price differential. for de-
livery on contract the Pillsbury- Wash
burn company sent its notice to that
effect to the Chamber of Commerce to-
day.
These ten companies make a power
full aggregation The Sheffield Milling
company. of Faribault, mentioned yes
terday as one of the nine signers.
should have read Sheffield King Mill
ing company
The result of the millers move is d
hesitant tone on change. 1t is con-
ceded that in the event of any specu-
lative clique attempting a corner. such
powerful opposition would be encoun-
tered as to predicate failure.
On the other hand, the natural
supply conditions are getting stronger
every day. Scarcely any wheat Is
moving from the country. Minneapo-
lis and Duluth are getting little. and
Minneapolis elevator stocks. already
down TO 6.250.o00 bushels on Saturday
last. have decreased 100000 bushels
since then, the wheat being drawn out
for milling or for shipment.