The Mitchell capital. (Mitchell, Dakota [S.D.]) 1879-1918, 1912-05-23
THE F. TRUST"

The money trust" pr be by a com
mission named by congress went Il
good ways from home when it inquir-
into the so-called coffee trust
formed at the instance and under the
direction of the state of Sac Paulo,
Brazil. The story OF this valoriZation
scheme was told to the commission
last week by Herman Siclcken, OF New
York. q big dealer in coffee who help
ed 10 carry out the plan.
Several years ago the coffee crop OF
Sac paulo was so large that the
price fell to a ~rninous figure. PLANT
ers and bankers together bean an
agitation for a restriction OF the out
put. After some time, about five
years ago the state of Sac Paulo sue
ceeded in getting under headway a
plan for the storage of surplus coffee
In order - assure at least n stable
price If not "A higher one. After at
tempting to negotiate the loans
itself, the state of Sac Panlo induced
the Brazilian government TO guaran-
tee payment of its bonds. With this
and its own promise to pay and with
the coffee itself as security, Sac
Panic was finally able TO borrow a
total of $4,000. 900. Under this
plan as much as 5000, 600 bags Of
coffee were bought for the purpose OF
keeping them off the market. Furth-
ermore, Sac Paulo taxes exports of
coffee and r~etricts the acreage in or
der to keep down production. Five
years ago the price Of coffee in Brazil
was about Z cents. Now it is IA cents.
There is no question it has been Il
tremendously valuable arrangement
for San Paulo. But of course the rest
of the world has been obliged to pay
the bin.
1t is impossible to charge the
3 scheme to bankers of the United Stat
es, for of the SIS. 900 900 bond issue
or1r O. n nnn nnn -,n ,Iano1 in Nnu
| York City. The plan originated in
Sac Paulo, primarily because thai
state is almost entirely dependent
= upon the coffee industry. 1t is UNI
questionably u conspiracy in restraint
t OF trade, for, while the production In
Z Sac Paulo has increased under IL
e from 100000 to $1,000, 900 bags
!, the price has been greatly enhanced
: 1t is a dangerous scheme. Suppose
every industry should be handled il
the same way. Then the price for al
products would become artificial anG
trade would become Il polite name fol-
q highway robbery. If governments gen
orally should father such a plan, il
$ would be equivalent to the pension
ing of all engaged in the industry
; protected.
@Aox
Deadwood, S. D.-Another sensa.
ton in the wolf bounty fraud investi
CATION in Pennington county came
with the unexpected confession tt
Attorney General Johnson her, of +
r. X. Hewlett, a hide dealer of Rapit
City. Hewlett declared that he hat
been in a conspiracy which has de
frauded the state out of severa
thousand dollars and that Deput.
County Auditor David Fall Of Rapit
City had issued fraudulent warrants
for hides with the knowledge of hi
l brother, Auditor John Fall.
All three men were arrested two
r weeks ago anu the Sranu Jury a
Rapid City is now probing the mat
ter.
Hewlett will plead guilty accord
ing to his agreement and deliver Owe
to Johnson all papers and books il
the case. The Falls deny their con
n~ection with the fra, DIS. Hewlett il
wealthy and we'll known
! The plan was to obtain vol
bounties by fictitious certificates mad,
out by County officials. County Audi
tor Tiernan OF Fall River County ha.
already admitted his guilt in a SINH
lar conspiracy.
Washington Springs, S. D.-Speak
ing to the most enthusiastic crowd h,
has vet greeted since he took tn,
: stump to show VI the issues G.. w
Egan of Sioux Falls, has sought to in
3 corporate into a campaign issue, Gov
. ernor Robert S. Wesley, plain spoken
sincere IN striking straight from the