The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1912-05-18
THE COFFEE HEARING.

what sensational development In Thurs
days hearing, 1t appears that bank,
ing combine in New York City aided
the Coffee Trust to limit the amount of
coffee and maintain prices at profl-
table figure for the benefit Of the Bra
lillian planters and the American and
European coffee dealers. Mr., Herman
Sielcken. a large coffee dealer in New
| York, disclosed the facts in the case
The bankers supplied the money, the
coffee planters destroyed a large por-
ton Of their crop and sold the remain
der for good deal more than the
whole would have brought if it had
been put upon the market. That is, IT
was scheme to limit the amount OF
coffee by destroying what was held to
be the surplus, so that the remainder
could be sold at prices dictated by the
trust in combination with the banking
syndicate which financed the deal,
| Here Is direct and positive evidence
of what The Tribune has often claimed,
| that the prices of commodities, of ne.
cessities of life, are not controlled by
the ordinary law Of supply and demand,
but that this law is perverted and
thwarted by speculative combines
| which fix prices to suit themselves
without regard to justice, fairness, or
| the productiveness of the various crops.
In this case, there was sufficient
coffee to have allowed of considerable
| -
And vet the law of supply and demand
was interfered with to such an extent
that there was not only no decrease in
price, but an actual increase, this by
| the arbitrary and despotic use Of mon
| ey so that the planters could be paid
| for coffee which they destroyed. as
| well az for the coffee which thev sold
and the people of the United States
were robbed so that the bankers and
| the planters could put through their
combine for restricting the supply. 1t
appears that the transaction was put
through not only with the consent. but.
with the connivsuce and support of
| the Brazilian Government and on this
ground Mr.. Sielckcn denied the right
of the committee TO probe into the
facts.
1t was Mr.. Sielckeu' idea that un-
less something Of this kind had been
| done to help the planters Of Brazil
10 keep up the price of coffee, there
might have been revolution. " So
that 1t appears from his testimony that
not only did the banking syndicate
take an interest in decreasing the sup
| ply Of coffee and financing the plant
ers by giving them as much for the
small quantity as they would have
gwen for the full crop, but il was q
| political job also, wherein the Gov.
ernment of Brazil CO operated with the
banking syndicate AMI with the plant
ers. The deal, it appears further, was
not for one year IS crop alone. but the
Brazilian Government coopcratcd in the
scheme to reduce the production Of cof
fee IN succeeding wears by putting Il
tax on the planting Of coffee. this be
ing stated As result of the Brazilian
Government desire "to encourage
planters to diversity their crops. =
1t IS all very nice and fine but when
| stripped of the wrappiugs Of sophistry
| and syndicatcd interests. it is simply
| plan to rob the public through keep,
! ing up the price of coffee
Mr.. Umtermycr, counsel for the in
vestigation, showed that the produc.
ton of coffee some years ago averaged
about 100000 bags, and that it sold
| from 61e cents to cents = pound in
New York. Now the production is
100000 bags, and the price is be-
tween Is cents and II cents pound.
! That Is, the product has doubled, and
the, price also has doubled, which, would
Indicate fourfoId demand. thing
which is incredible, The actual fact
| Is that the increase IN price az shown
by Mr.. Umtermyer was accomplished
by the banking and planters syndi-
cate. and by withholding from the
market the surplus supply Of coffee.
Mr.. SicIckcn admitted that he Ia in
a syndicate. called valorization com
mittcc, Of seven. which is now holding
100000 bags Of coffee ont OF the
market IN order TO maintain prices;
and he had the nerve to say that il
this coffee was thrown upon the mar,
kct it would have no effect on the
prices, This shows a sublime conf.
dence in the power OF the syndicate 10
control the market, in fact, as dis
closed by Mr.. Sielcken, the combina
tion is practically world wide This
valorization scheme is backe ed mp bv
loan of $4,000. 900. of which English.
German, French, and Belgian bankers
took S65 100000.
The coffee trade Of the world there
fore, rs in strong hands and is con.
troliod by an international syndicate
called valorization committee, com.
posed Of seven persons. The price of
coffee is so absolutely in the hands