Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1912-05-23
COFFEE TRUST IS
Hailed TO COURT
If Sherman Law Fails to Control
It, Embargo on Brazilian
Product May.

New York, May 20.--An appeal TO
Congress for an act prohibiting the I'M
portation of coffee from Brazil Is one
of the moves contemplated in the feder-
al attack on the coffee trust begun In
New York on Saturday. Such a drastic
measure, Of course, would be n last re-
sort.
Since 40 per cent. OF the worlds sup |
ply of coffee Is consumed in the United
states and since coffee Is the chief ex-
port of Brazil and her commercial
prosperity is dependent largely upon the
United States market, an embargo on |
Brazilian coffee, It is believed. would |
quickly bring the South American
country to terms.
United States Attorney Wise, who will |
fight the trust in tho proceeding just be-
gun, makes the suggestion OF retaliation |
on Brazil in the event tina. the relief |
expected through the courts does no. |
naterialize
II only made this suggestion to the |
attorney general" said MIR. Wise yostcr-
day, "ss a final resort IL the federal ac-
ton against the coffee combine fails.
Congress would undoubtedly have the
power to forbid The Importation of eof-
zee from Brazil, or from any State of
Brazl. Hut this measure would only
have to be resorted to in case the suit
! failed. and | see no reason to fear that"
SIELCKEN'S s1pD.ool SAFE
Mir Wise was asked If no was prepared
Ia cover the offer of Herman Sielcken.
/ the coffee merchant. 10 bet him 10000
4 that he will never be able to win his case
in court, and that the United States will
apologize to Brazil for It's action before
| the case l. concluded
| Mr.. Sielcken Is perfectly safe IN offer
ing to bet $1co0Uo with any government
employee on any proposition the re-
ply of the district attorney. LAS a rule
they don't possess that amount of money
for betting purposes. Why doesn't he use
that 2loo,oo0 in helping to lower the price
of coffee his combine has driven up?"
Just how gigantic a proposition the
coffee trust IS may be realized from the
/ fact. stated by federal official Yester-
day, that in the few years the trust has
been in existence it has spent S520m,0oo
in maintaining its Worldwide coffee
monopoly. This sum has gone in insur
ance on it's tons of coffee, warehouse
charges. interest on investment, etc. The
consumer has paid this sum first before
being taxed to produce the 100 per cent.
profits the trust has realized since its or
ganization.
PLAN TO RELEASE SUPPLIES.
| Mr.. ssielcken sent out word from his
quarters in the Waldorf yesterday that
he was too busy to be seen The sum-
mons upon him in the federal action
came in the midst of his preparations to
go abroad. He being the only one of the
seven defendants in this country. the
court action came In the nick of time.
otherwise. the government would have
been seriously handicapped in its plan to
release quickly the immense supplies Of
coffee the trust has stored in the ware
houses of the New York Dock company.
and to drive down the price of the com
modify Explaining the action, Mr..
Wise said Yesterday:
1T is simply a plan on the part Of
the Acknowledgment to get back to the
old laws Of supply and demand. Under
the operation of this combine. that
ancient trade law has been ignored With
a constantly increasing supply Of coffee
on hand. the trust has been careful to
keep it locked up. that the supply
: which It has released has always been
Just a pace behind the demand. con-
stantly Increasing prices have resulted.
No one can say how much higher the
price will go il there is no power in the
courts to put stop to this thing
GOVERNMENTS PLAN.
I'm the warehouses of the trust are
. stored 10000 sacks Of coffee With
that supply of coffee released on the
market, a price of fourteen cents per
I pound could not long he maintained.
This Is what the government plans to
do. A demand exists for coffee, but
the supply is deliberately held up
at is the plan of the government to
i equalize matters which the govern
g ment has a perfect right to do under
the Sherman act, We therefore are
: asking for the appointment of receive,
e for this coffee, and the sale by him.
= under plans arranged by the court of the
II coffee In open market.
n The natural price received for II under
the law of supply and demand will be
l. turned over To the owners of the coffee
4 Then. with that much accomplished, we
u shall ask that a permanent injunction ht
VI issued restraining the members of tn,
e trust from again cornering a supply OF
y coffee"
o 1t is estimated that II this $50 600 sack.
q Of coffee were placed on the market to-
day, the price Of coffee per pound woulC
II drop at once to sight or nine cents
NO DANGER OF A WAR.
n Mr.. Wise declined to comment on the
Il possibility of international complication,
N growing out of the suit No danger o.
y any such outcome Is felt however
3, From its inception the trust plan ha.
a been to capitalize the American taste TO
x coffee, as nearly one-haif OF all thu
Is worlds coffee production IL consumed
= here II Is this fact which Ia being KEEP
i, in mind in the event of failure to secure
"a relief In the courts
IA Neither Brazil nor any other COFFEE
a producing nation could long stand III
"a against the embargo against her produc
III from the nation which consumes 40 pc
cent. Of all the coffee raised