The Washington times., 1911-05-04
: INVESTIGATE COFFEE.
DEALS ON SUSPICION.
!: Of TRUST SCHEM|NG.
Some 133,OOO,OOO Pounds of
Warehoused Crop In
Transactions.
TARIFF MAKERS ARE
KEEN FOR REFORM
Big Fight Planned BY Syndicate
and Brazil Against Govern
ment'S Activities.
BY JUDSON c. WELLIvER.

4ome big operations in coffee, believed
TO be manipulations by the international
coffee trust, are just now commanding
the attention of legislators and public
- officials who have gone on the trail of
! that remarkable organization.
Within the last few weeks transac-
tions in waTehoused coffee have been re-
ported, in American and European cof-
fee centers, aggregating near 100000
bags. A bag contains 153 pounds of cof-
fee. Just what significance attaches to
these tremendous movements is not
surely known, but they are believed to
have an intimate relation to the agita-
tion in Congress, and the investigation
by the Department of Justice, both of
which are directed against the trust.
The coffee trust managers are getting
ready to put up the strongest possible
defense against the activities of this
Government. So is the government or
Brazil, which is known to be much con-
Cerned about the possibility of serious
friction in its commercial relations with
the United States.
Query State Department.
So grave has become this agitation.
that diplomatic inquiries have been ad-
dressed by the Brazilian embassy in this
city, TO the State Department, concern
ing this Government views and inten-
tions. 1t is not known just what form
these inquEies took. or what reply was
made. At present, it is pointed out,
the investigation has not produced re-
suits sufficiently definite to make clear
what action will be necessary.
Not only is the Brazilian government
sitting mp and taking notice, but the
Coffee Exchange people in New York
are displa wing much activity. The trust
j. highly unpopular with the coffee
brokers and merchants, as well as with
wholesalers. retailers and consumers.
The brokers and jObbers complain that
the trust keeps such firm hand on the
price situation that there is no specula-
tive possibility. Its domination of sup
plies is such that anybody attempting
an independent movement can instantly
b.. swamped by the Overpowering might
Of the trust, either Withholding supplies
or dumping them in the market.
advantages to Consumer"
AGAINST this the Brazilian government
and the trust agents urge that the main
1cnance of price stability and prevention
OF fluctuation, have been altogether ad
vantaEeous to the trade and the con-
Eumcr. The combination, it is declared,
has not advanced the price beyond rea-
sonahle profits.
The combination. according to the cof-
fec authorities. now has in warehouses
in this country and at European ports
q about 10000 hags. The production has
finally been so far checked by the Bra
lillian laws that last years output is
believed TO have been within the con-
sumption, so that the world is begin
ming 10 reduce surplus stocks.
suggestion Of a COunteIVailing duty, at
our ports. on Brazilian coffee, mas Civ
en- both the trust and the Brazilian gov
ernment the HVelieSt concern. Repre-
sentative Norris suggestion of such an
arrangement got the diplomatic agents,
not only Of Brazil. but OF other coffee
growing countries, very active.
To Restore Normal Balance.
Colombians. the East Indian coffee in
terests, and others. declare that such a
measure Of encouragement by the
United States would enable them to ap-
pear as big factors in the coffee trade;
the discrimination in thelr favor would
induce q big increase in production and
IN a fcw years they believe would re-
store a normal balance.
Meanwhile, With the tariff makers
talking and the diplomats ag1tated. the
Department of Justice is saying nothing
and investigating the American end OF
the Coffee trust.
Herman Sielcker, of New York. a
member of the firm of Crossman AZ
SiCl"llpn. is known tC the trade as the
couatry's coffee king He is the Ameri-
plitteC which manages the coffee bust
ness Cf the :yT TdiCatc. and the car of
the situation in the United States MIR.
SiClCkcn'S exact rela tiOnS TO the trust
are expected to be developed soon, and
10 provide some real illumination.