The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1909-01-18
STORAGE EGGS AS
PLEDGE FOR BIC
MONEY LOANS
PROBING OF MERCANTILE Elk
CHANGE WHICH FIXES PRICES
ON BUTTER AND EGGS IN U. S.
PROMISES SENSATION.

NEW YORK, Jan. l'.-While Meth
er the chairman nor any individual
member OF the committee OF nine.
appointed by Gov. Hughes to investi-
gate Wall-st. gambling, will say d
word officially for publication, II is
known that the probing Of the New
York mercantile exchange is expect
ed to lead up TO network OF ramlil-
cations in the financial district, and
the possible exploitation of the meth
DDS of one trust company that loaned
money with tens of thousands OF cold
storage eggs as collateral. To the
general public the Mercantile exchange
is almost unknown, but to the farmer
and the dairyman. and the immense
army OF householders in New York, II
is Of vital and continuous importance,
inasmuch as~it fixes prices for con
+sumcrs of eggs, butter and cheese
throughout the United States, and its
controllers, known as the Big Five,
turn over something like hundred
million dollars year In trade.
| rhe exchange. which decides awhat
the producer shall receive, and what
| the consumer shall pay, possesses
what is regarded as the most valuable
charter ever granted to an industrial
combination in this country, and in
the exercise OF its powers II reached
a point of such arbitrary arrogance.
that in July, 1907, suit was entered
To restrain IL from issuing or publish
inc quotations of the values in the
New York wholesale market OF any of
the grades OF butter at other than the
selling values OF the same. common
~ obtainable, as shown by wholesale
transactions at first hand"
The proof was SO palpable that the
exchange fixed prices to suit itself.
and for its own benefit that a per
emptory order was issued by the court
restraining the exchange from making
quotations except at the market sell
ing value.
IL is TO determine whether this man
date has been observed In letter anu
in spirit that the Hughes committee
will make its investigation. through
its sub. committee on commodities,
which consists OF Edward ID. Page and
Prof John u. Clark.
big Five" Of the Exchange.
Up To the time Of the legal proceed
ure, Is months ago, the New York
mercantile exchange, immune from
investigation or criticism since the
date Of its corporation IN 1874. was
a law unto itself in the regulation 6t
the prices of two important staples.
The buying and selling price OF the
butter and eggs OF the United states,
valued al more than a billion dollars,
was regulated by a committee on but
ter quotations and committee on
egg quotations The producer and
the consumer had no appeal The
dominating power of the exchange
known as the Big Five" consisted
Of Droste d snyder. Fitch. Cornell q
Co. Petit II Reed. thinner and Dun
kak. and y. w. Whitmore & Co
Independent dealers had 10 submit
10 the dictation OF the exchange or
be driven out OF business. and 10 was
not Until c. W~Martin & Co firing OF
the arbitrary methods. exercised in
restraint OF trade and competition In
stituted legal action. that the bosses
Of the exchange saw that their char
ter was threatened with revocation
The action was brought In Kings
county. before Justice Walter " Jay
cox. through the law firm Of Clark a
Taylor. 81 Brooklyn. Ia which 10 was
alleged that the exchange issued false
and fraudulent quotations that the
practice as pursued was a fraud and
imposition on the shipper: hat the
so-called settling basis OF prices
. was a subterfuge-'a child Of the mo