The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1911-06-25
Uncle Sans Activities Have
Stirred Controllers of This
Drink to Prepare Their
Defense.
BRAZIL ANXIOUS TO
LEARN INTENTIONS
South American Republic Is
Largely Responsible u.
S. May Impose Counter
vailing Duty. :,
(National News Association

(National News Association)
Washington. June 24.-Manipula-
tons OF the International Coffee
trust have again stirred legislators and
government trust busters and awaken
ed fresh interest in the octopus of the
breakfast table. 1t is believed that tie
recent transactions in coffee in both
American and European markets are a
result Of the antitrust agitation in
congress. These transactions, which
were in warehoused coffee have ag-
gregated nearly 100000 bags. A bag
contains about 1873 pounds
From indications it would seem that
the coffee trust managers are getting
ready to put up the strongest possible
defense against the activities of this
government in the coffee trust matter.
So, too. is the government of Brazil,
which is known to be much concerned
about the possibility of serious fric-
tion in its commercial relations with
the United States.
So grave. in fact has this friction
become, that it has lately become
known that the Brazilian government
has addressed diplomatic representa-.
tions to the state department concern
Ing this governments views and in
tentions regarding the coffee trust. 1t
is not known what form these m
Quiries took, or what reply to them was
made by Secretary of State Knox At
present it is pointed out thatyth In
vestigation that has been, or is about
to be. inaugurated by the government
for no one is supposed to know
whether the government is investigat.
ing the coffee trust or not, and inquir-
les at the Department of Justice ELI
cit no definite reply, has not produced
results sufficiently definite to make
clear what action will be necessary.
Consequently, if reported information
is correct, the Brazilian government
is no wiser today concerning the steps
that the United States is taking to
break up the pool of coffee capitalists
than it was when inquiries were re-
Gently mode at the State Department.
Brazilian Agents Active.
However, Brazil is not resting on
her oars. That government is sitting
up and taking a whole lot of notice of
what is going on. One story has it
that there are a number of Brazilian
secret service agents in this country
watching the moves that are made by
ho
be true. it is safe to say that Brazil is
as fully advised of what this govern
ment is doing in respect to the coffee
trust as the Department of Justice of.
ficials and the President. The coffee
exchange people in New York are al
SO on the lookout and are displaying
much activity. The trust is highly
unpopular with the coffee brokers and
merchants. as well as with the whole
salers, retailers and consumers. The
brokers and jobbers complain that the
trust keeps such a tight hand on the
market that there is no speculative
possibility. Its domination of supplies
is such that anybody attempting an
independent movement can instantly
be swamped by the overpowering
might of the trust. either by withhold
ing supplies, or dumping them on the
market.
the independents and allied interests
the Brazilian government and the
trust point out that the maintenance
of price stability and prevention of
fluctuations have been advantageous
to the trade and the consumer. The
com bination. it is declared, has not ad-
vanced prices beyond a reasonable
point.
1,5o0, 900 Bags in Warehouses.
According to experts OF the Depart
ment of Justice, the coffee trust has
about 1900, 900 bags of coffee in ware
houses in the United States The
production has been so far checked by
the laws of Brazil that last years out
put is believed to have been within
the consumption, SO that the world.
through its consumption, is beginning
to reduce the surplus stock.
To effect the arbitrary restrictions
imposed on the consumers in all parts
OF the world, particularly the United
States. 1t has been. suggested by a
number Of lawmakers and Others that
a countervailling duty should be plac-
ed on Brazilian coffee imported into
the United States. Necessarily this
has caused the Brazilian government
a great deal of concern. as the United
States is one of its heaviest custom
ers.
The suggestion to investigate the
trust started through Representative
Norris. of Nebraska, in discussing the
grasping tendencies Of the trust and
(EonfinraA m p~an 9th