New-York tribune., 1911-02-24
COFFEE TRUST ALLEGED
,o,is Wants an Investigation
by Government.
NAMES BANKERS IN II
=, lillian valorization Plan Basis
:, His Charges-Seeks
Action by Congress.

.,,ytnn. Feb. ss.-Fwc resolutions.
IRE existence OF monopolistic
$50 =, the coffee market By Brazilian
t'nu0' interests and Americans and
y'o. .o.sns interested with them and call
le'0y,, ,,s President and the Attorney
- ~ - report whethsT any invsstiga-
hssn Instituted by the govern
tan 80 dropped into the hopper Of the
1sA- - representatives this afternoon by
H'1s ,,s,ive Norris. OF Nebraska II
A'' s,.s without remark. and the resolu-
Va ~r rs,t automatically TO committee.
'..s ,ssolutions attracted ne attention
=. uouse. and washington heard to-
ri,h considerable surprise that
IS a, their Introduction had IN some
l---., 1s,sed the New York coffee mar
q rot prooabls that either com
A',As viii report tbe resolutions at lhis
-. ssv N TIE session. but Ny. Norris
"a, -, sxislins suspension Of the rules,
- sex % hsYe them taken up IN the
80. ~ after q reasonable time, the
.-....+.ses fsn 10 act upon them.
~ Merits tonight expressed some con-
.,sees tina, the House would take I'D and
-. The resolutions. he said he believed
a., the Judiciary Committee would report
:. resolutions fayorahly, bat even if it
a. not the matter would become privileged
,s,sjD seven days after reference to the
,,rni,tee. and he proposed 20 brinS up the
.asi.ct IN the House directly.
~ Norris said he had been looking into
.. subject for some time, and had the
,s,aAs Of those whe he said. had entered
Il, the arrangement wi,a Brazil Tor the
ssE.e control J. P. Morgan s. Co. and the
National CRY and First Nationsl banks Of
ysw York. he said. constituted the Annert-
an end Of "the great scheme that has
s,snced the deal" This interest, Mr.. Nor
$. said. involved S75 eo0 OF capital. Of
,seh S350o0 90 each was subscribed tn
is,don and France, Soce0.eeO each in
A.srfca and Germany and $5,oo0oc9 in Hol-
Ind
The schehe. as Mr.. Norris outlined It,
ras that the state Of Sac Paulo issued
9 10000 5 per cent bonds. which this for
agn syndicate took Up. Brazil guaranteed
.hese bonds. and provided a surtax Of five
francs a bag, which the agreement pro-
sided was 10 be remitted 70 these inter-
,sts IN the bond syndicate and provided
6r q committee Of seven nea, six Of whom
we're 10 be selected by the financiers in
ne syndicate and one by .he Brazilian gov
.rnnent itself the committee 70 control
ne sale and disposition Of The coffee from
3razil
The so-callsd "coffes valorization plan"
.stsrrsd 70 by Representative Norris, has
,ssn IN operation IN its present fern for
bout two years although several years
ago Brazil began the policy Of buying cof-
se from the planters. with the object of
.euns them from disastrous losses which
hey would have incurred through being
obliged 70 dispose of their output in years
n unusually heavy crops.
It was late In 1905 that the sac Paulo
!-5o00o9O loan spoken Of by Mr.. Norris
vas 1osted in this city. London, Paris. Ber-
in and Brussels. This loan represented a
coaoHdauon Of several loans affected pre-
yieusy BY the state of sac Paulo. Brazil,
and vas secured by the guarantee OF the
l4@@iAla- -Dhr ll4ltrilh ealll Dt Ailt DlttSt OF
nsE than seven million bags Of coree
stored IN warehouses here and in European
siss
Additional security was provided by =
ariax on coffee exported from Brazil, this
iziax TO be increase II q larger crop than
rormal should be produced and diminished
/. smaller crop SHOULD be harvested. sac
'ssie, which Is the principal coffee produc-
ns state q Brazil. also pledged itself 20
'-g 10 more coffee and agreed TO the mar
sing ot the pledged coffee by a committee
. ssTen or whom six should be represen-
st'ss OF the bankers Under the plan a
gtain number o. bags Of coffee were 10 be
sDosea Of each year, ana the proceeds ap-
I'D te the redemption Of the $4,000. 900
az
L was announced early In January thet
4 ys!o1zation committee which handles
= sale of coffee for the Brazilian govern
lsai under the valoriZation plan had de-
-lsd 70 sell 100000 bags Of coffee some
ne during April. and that this would be
!. total amount disposed Of during the