New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-05-19
Wise incidentally Seeks to
Seize S10,0OO,000 Worth of
Goods Stored in Brook
lyn Warehouse.
AIMS AT VALORIZATI0N PLAN
International Financial Group,
Aided by State in Brazil,
Raised S9O,oO0,OO0, 1t
Is Said, to Stimulate
Prices Artificially.


the so-called coffee trust, the Brazilian
vaIorizaton scheme, and bring the price
Of coffee down from the alleged artificial,
fsures established by the half dozen
men who control the coffee supply OF the
world to somewhere within speaking dis
tance of the price that would be estab-
,,hed by the natural laws Of supply
ond demand were coffee allowed to find
its own way into the worlds markets
instead of being held back by the small
yropp Of men who control the sources
Of supply.
II Mr. Wise is Successful in his fight
$4,000 bags of coffee. worth approXi-
nostely $4,000 600. now stored in the
warehouses of the New York Dock Com
pany in BROOKLYN, will be seized hy the
government and sold At auction for
vhatever price the worlds demand Crc-
stes
II is no new thing for the government
~ attack = trust. Nor is it new for the
property Of trust 10 be seized. Nnen
suit was brought against the tobacco
trust the goods of tho trust in transit
between the various states were taken
nossession Of tv the government TO pre-
vent the trust carrying on its operations
panding the determination ot the suit
Bur II is new, and il establishes
nrecedent in the governments attack on
trusts for an attempt 10 be made -
seize goods with the avowed purpose OF
breaking the market price Of = commod-
ity.
rortv per cent Of the worlds annual
consumption Of about eighteen million
bags Of coffee is marketed In the Cnlreo
States. And Vet, despite the fact that
since 1906 the coffee production Of the
world has largely exceeded the demand.
the price has jumped from SIS cents
round in 1906 10 13s4 cents pound IN
1911, and in that year alone the United
States paid a tax TO the coffee trust of
more than sac, 10000
Enjoin.d from, Removing Coffee
7, - 70 remedy these conditions that
the governments suit was fled yester-
day. Herman sielcken is the represent
ative OF the trust IN this country, ana
after the suit was filed in the federal
district court yesterday morning TEN
porary restraining order was obtained
from Judge Hand prohibiting Mr..
s,elcken and the New York Dock Com
pany from transferring TO any other
place or in any way disposing of any or
the $4,000 bags of coffee in storage wlth
the New York Dock Company The re-
srraining order was served on Mr..
sielcken at the Waldorf yesterday after
noon, and the argument as 10 making II
permanent until the determination OF the
suit will be heard before Judge Hand to-
morrow morning.
The other defendants 10 the suit are
Bruno Schroeoar. Of J. Henry Schroeder
T. Co. of London; Edouard Bunge, of
Antwerp; NJ. LIE Vicompte des Touches,
Of Havre; DR.. Paulo Da Silva Prado, OF
Sac Paulo. Brazil; Theodor Willie, OF
Hamburg and the Societe Generate or
Paris. These defendants, with Herman
sielcken, comprise the committee formed
10 FIX the price OF coffee for the world
and the amount Of coffee to be fed an
nually TO the worlds markets
The inception of the scheme to form
combination to control the coffee supply
Of the world came with the productioH
Of a bumper crop of coffee by the State
of Sac Paulo. Brazil. in 190J-'06. Brazil
produces approximately 20 per cent of
the coffee supply OF the world. In 1910
the total supply amounted to 14,SOo'Ooo
bags and the price was SB cents
pound. That year. the year OF the
bumper crop, the production jumped to
23s00,OO0 bags.
Bumper Crop Starts Alleged Plan.
The consumption at that time kept
even pace with the production. and there
was no necessity for artificial stimula-
ton of prices, but with the bumper crop
II became evident Immediately that
there must be some control OF the sup
ply to the markets or the price would
drop greatly Then the alleged scheme
was formed to contrel the supply TO the
worlds markets and also take steps TO
stimulate the demand.
The result, Wise sets forth, was
ten-year contract between the State CT
Sac Paulo, Brazil. and various foreign
bankers, involving loans OF approximate
ly $4,000, 900, to be used in buying up
and holding the worlds coffee supply and
the successful stimulation OF the demand
to an annual consumption Of 1S,0OO.OOo
bags Of coffee. In the mean time, the
price was held fairly steady until 1911.
The lowest point reached was SIX cents
pound, in January, 1908. But In 1911
the price was jumped to 13A cents a
pound, and then the government began
its Investigations which have resulted in
the suit to break the trust.
In this scheme the cooperation or
Brazil. with its elastic system Of internal
and export taxation. was sought ond
readily obtained. The coffee planters
OF Sac Paulo, MInss Geraes and Rio de
Janeiro, the three principal coffee pro-
ducing states of Brazil. were only too
slad to have the price Of their source or
livelihood kept up. In December, 1905,
sac Paulo imposed an export tax Of so
cents bag on coffee, the money result
Ing from the tax to be used In maintain
ihs The price Of the commodity. The
domestic price Of coffee was also fixed
oy law at not less than 10 cents pound.
with the provision that this minimum
might be raised to 10 cents pound.
osfisusd - seventh page, second column