The Richmond Virginian. (Richmond, Va.) 1910-1920, 1911-10-06
ARbUCLES UNDER
GOVERNMENT EYE
Large Importing House Named
AS One of Chief Concern
In Coffee Corner
SHERMAN LAW IS
TO BE INVOKED
Members Of Congress Said
to Be Implicated In Deals
That Were Profitable
to Monopolists

NEW YORK, Oct, THE ex-
elusive announcement OF the prepare
t1ons being made by the department
of Justice to attack the coffee corner
with the view of furnishing the in
diViduals and corporations RESPONSE
Die for the present famine prices
brought about In the face of good
crop yields in Brazil, created q lively
stir in the Coffee Exchange.
The days developments showed
that the firm Of Lewisohn Brothers
are leading the fight against the bull
element. led by Crossman and Sielok en-
and Arbuckle Brothers. 1t also was
brought out that documentary evi-
dence has been obtained upon whici
an action VIII be directed against the
Arbuckle house, the largest coffee
roasterS In the United States.
1t IL alleged that the Lewisohns
recently purchased from the Ar
buckles several thousand bags Of cof-
fee at many points below the price
quoted at the Coffee Exchange. The
sale was conditioned, So it Is said,
upon the promise that the coffee
would not be sold in New York.
In heStraane az Trade.
1t Ia stated that the Lewisohns
promptly dumped the whole lot back
on the Coffee Exchange and the Ar
buckle house purchased 1t at an ad-
vanced price. The contention LIS that
all such transactions are IN restraint
of interstate trade.
joni T. Arbuckls declined to dis
cuss the matter to-day. The Lewisohns
also refused to discuss the subject.
Nobody denied, however, that the gov
eminent Is preparing an action against
Arbuckle Brothers, under the Sher-
man law. 1t Is asserted that one OF
the chief causes OF the present famine
prices Of coffee Is widespread prac-
tice of restricted sales The state
ment is made that . syndicate Of big
importers and bankers early last spring
bought up all the coffee available. in
creasing its holdings to more than L.
100000 bags; that this great bulk
of coffee has been withheld from the
open market.
Monopoly In Coffee.
Another powerful contributing cause
Is the complete monopoly OF the cof-
fee industry OF Brazil. made pos
sible only by the valoriEation plan,
financed for s75.000.000 by the big
gest bankers IN Europe and America
Dispatches posted In the New York
Coffee Exchange to-day revealed that
the commodity Is actually selling
higher at Santos than In this coun-
try in spite of the fact that this years
crop will be greatly above the nor
NAL. 1t was 100000 bags short last
year.
Rumors were circulated among
prominent coffee houses to-day that
before the government completes tho
the names OF several
member. of Congress Will DO brought
into unpleasant publicity.
It IL stated that when the move
ment for five-cent tariff on coffee
was started certain members OF Con-
eress were put In the riding market
and the proposal was Incorporated In
the original Aldrich- Payne bill.
Millions Made BY lnsidcrA.
The controlling financial interests
made heavy advance purchases In
anticipation Of the increased prices
that would reign after the tar1H had
boon imposed. Millions we're made
by all favored persona among them
several members of -Congress. The
tariff proposal was finally defeated,
but the market was IN control OF
the syndicate.
In the opinion Of Sigmund Hirsch,
of the flrm Of Nordlinger and Com
pany. there IN very little hope for the
Of normal coffee prices in
this country until the expiration OF the
plan. which has yet seven
Years to run.