The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1913-05-22
THE GREAT COFFEE CORNER.

The story of the great international
combination for getting up a corner
in coffee was effectively told in the
United States senate last week by
Senator Norris, and what he chiefly
dealt with was made up of verified and
~indisputable' fact. This v~alorization
scheme was ostensibly a plan Of one of
the states of Brazil, with the backing
OF the national government, to remedy
the result of an overproduction of cof-
fee in a single season, by adjusting the
supply to the demand and maintain
ing what was deemed a reasonable
price," while a check was to be put
upon future production to keep it
within limits. 1t is unnecessary to
repeat the familiar details and tell how
bonds were ISSUED to buy up a large
part of the supply and store it in diff
ferent ports Of the world for ultimate
sale and distribution, how a tax was
imposed upon export in excess Of a
certain annual quantity and a r~estric-
tlon was put upon planting, to defeat
the operation of the normal law of
supply and demand.
What is strikingly brought out now
is the deliberate and calculated way in
which this scheme was devised and
perfected beforehand, and mercilesslv
carried out, not so much for the bene-
fit of an industry of southern Brazil
n the trade dependent upon it, as
Tor the profit Of bankers and favored
coffee dealers at the expense of con-
su1ners Of the product the world over,
but chiefly in the United States, by far
the best customer. An i~nternationl
trust" was formed of the most closely
riVeted kind, of which the
OF Brazil was q member. 1t was man.
aged by a committee of seven, one rep
resentlng, that government and the 9TH
ers the different bankers who were to
finance the operation, taking the 5 per
cent bonds of Santos guaranteed by
Brazil at Sc, looking after the purchase
and storage of coffee as part of the Sc
curlty, and its sale from time to time
at a controlled price for the Service
OF the debt and all expenses and prof
It's. 1t was sc planned and secured be-
forehand as to be a sure thing for all
concerned in the deal"
AS a ""trust""or unlawful combina-
ton it was difficult to deal with under
the laws of the United States, especial
~ with a friendly nation as one of
the parties, and yet the people of the
United States were being heavily
ts T93IJlptpH foT- tho .,-l H. 49,
It's, as well as for the supposed benefit
of the coffee industry of Brazil, says
The New York Journal of Commerce,
When efforts were made to strengthen
the law so as to reach at least the
American end Of the combine" and
weaken its power, the American mem
Der of the committee brought every
available resource to bear against 1T.
When suit was brought under existing
law everything was done to obstruct
its course, and IN that line OF defense
the effort of the Brazilian government
was enlisted through the state depart
inent until the suit was abandoned.
Senator Norris declared In his speech
that the Brazilian government, which
for many years had enjoyed the almost
isolated position Of being the most ia
vored nation 50 far as tariff laws
passed by this nation are concerned,
was trying to prevent action by this
government and by this congress BY
the subterfuge of making a threat that
Iii we were tai enforce our laws against