New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-05-20
CONGRESS Would Have to Act.

Congress Would Have to Act
"Of course. the importation Of coffee
could not be stopped by suit. That
would have TO be done by an ct OF
Congress, but Congress has the power to
PASS law forbidding the importation ut
any coffee to be held for the purpose oS
cornerirg the market. III the event Of
this suit being lost by the government II
,s highly proba BILE, in my opinion, that
Congress will he asked 70 pass such a
law"
Mr.. Wise thinks the price q coffee
will be lowered if the government wins
its suit. Others interested in the coffee
market think the winning Of the govern
ment's suit would result only in tenn
rorarv brcpk i'm the price Of coffee and
that a law to prevent the importation OF
coffee TO be held for corner would not
result in smashing the trust, but that
the only way 10 end the present holo-up
Of the worlds coffee market would Dc
for Congress 10 pass d law fOrDldolhg
the importation Of any coffee whatever
It is pointed out that the United States
consumed G,3G49j2 bags of coffee In
1911. and the consumption promises 10
he greater this year. If the government
wins it's suit the $4,000 bags dumped on
the market would be so small a proper
.jon If the total annual consumption
lose than u per cent-that only tenn
porary break in the price would neces-
sariIy follow. While II Congress passed
= law forbidding the importation or COL
fee TO be held for a corner 1t would only
he necessary for the trust to store us
coffee in foreign ports and ship IL 70
%ou, York after il had been sold here.
Quick Way to Kill Trust.
~ on the other hand law were
nassed forbidding the importation OF all
coffae the market for 40 per cent or thN
worlds annual production Of coffee would
he destroyed and the corner wouid ole
speedy death and the price or coi1ee ne
6xed once more by the law OF supply anu
81 demand.
II ia believed, also, that in the event oI
The government winning its suit repre-
ssrtatives of the trust would make every
endeavor to buy up the coffee now stored
with the New York Dock Company LII
thus keep their control OF the market
The alleged coffee corner has been al
extremely lucrative enterprise ana cue
returns have been quick. The state oi
Sac Paulo. Brazil, borrowed S15,oooooo
though the bonds were 10 run Six year'
the prohts were such that the loan was
paid off in three years.
II Is alleged the profit OF those WHO
engineered this first corner was ABOUT
"a 542 OOO. or more than "a per cent
And this profit was only that made on
the handling Of the loan TO sac Faulo
and leaves out entirely the proht on me
sales of coffee. The bonds were 3old III
q discount that amounted to Sl,Ol6,4Vo'
The interest paid amounted to about
s217SOOO. The bankers received q
. commission OF 1 per cent on the race
vsIua of the bonds and per cent OF me
interest, a total of about Sl6''ooo. ann
they also got IL per cent. or about Sloi'-
~ for stamps, taxes and other eX-
uses.
This was the loan in which the Ma
tional City Bank participated to the ex-
+ tent OF one-third.
Export Tax, s5sooo,ooo.
On the second loan-S75. 900 0O0--Sao
Paulo paid a discount of S1Os90.OO0. and
I'D to September 80. 1910 there had beer
paid out as the expenses of the state IN
the valorization scheme about So2'ooo''
700. The tax of so cents bag on cofree
exported had amounted at that time 70
$59,OO0,OOO
1t is set forth that clause In the con-
tract with the committee of seven con
stituted as the arbiters OF the worid'
coffee supply provides that they shaii &c
DER cent on the net product OF h'
sales. Up to September 80. 1910. sa'
Paulo had purchased about ll,OOO'oo'
bags OF coffee, worth approximate!
S110,00OOOO 1t is said that In addition
to ali the other profits It might max
through the corner the committee woui'
draw down about 100000 on this COZ
tee by virtue Of the contract. and II
annual ] per cent would approximat
100000 paid as q bonus for doubling IN