The Bemidji daily pioneer. [volume] (Bemidji, Minn.) 1904-1971, 1914-06-16
CORN BROKERS PLAN
EXPOSED BY RAlNEY
Congressman Tells House Of Repre-
sentatives of His Investigation Of
Demand for Argentine Product.
PLAN TO M1sGUIDE FARMERS
Transactions Found to be Fictitious
NO Orders Placed for Delivery to
Chicago Grain Brokers.

BY Congressman C. H. Tavenner.
Washington, June ia trick OF
corn gamblers in the Chicago corn
exchange in attempting to depress
the price of May corn by announcing
large Chicago orders for the impor-
tation~ of Argentine corn, has been
exposed in the house by Representa-
tive Rainey of Illinois, himself corn
grower and cattle feeder. =
The newspapers "fell'' for the
trick, and announced in black head
lines that Argentine corn was about
to invade the Chicago market. Re-
publican politicians took it up, and
endeavored to brighten the corn belt
farmers by telling them that the
Underwood tariff bill had exposed
them to the competition of South
America.
BY piece of clever detective work
Mr.. Rainey was able to show that
the alleged transaction was fictitious
that no orders for Argentine corn
had been placed by Chicago brokers'
r. Instead of wholesale xmpprtations,
only one car of Argentine corn ar
rived in Chicago, and that was i'm
ported as an experiment to see if
the corn was good for chicken feed
and the car contained only $4,000
pounds.
According to Mr.. Rainey the scare
was organized either to influence the
price of May corn or else to provide
some campaign material for the Re-
publican protection argument.
BY correspondence Mr.. Rainey was
told by the secretary of the Chicago
board of trade that 100000 bushels
of Argentine corn had been purchas-
ed in Chicago for May delivery. 1t
was the assumption that this corn
was to be brought from South AM
erica in light-draft vessels which
could reach Chicago by way of the
Great Lakes and the Welland canal.
Later the trade board wired Mr.
Rainey that this corn hadrbeen stop
ped at the Atlantic seaboard for de-
livery in New England. y
Further investigation led Mr..
Rainey to boldly charge that no such
order1 for corn had ever been
placed in Chicago. From the GUS
toms service he learned that Argen-
tine corn came to the United States
in May through the ports of New
Orleans, Galveston, Mobile and New
York The New York importation
was 4O2,401 bushels.
But of this importation a corn
products concern in New York re-
ceived 100000 bushels, it's regular
order from Argentine, as Mr.. Rainey
learned by telegraphing to that
firm. This left only 282,401 bushels
which might possibly be the Chicago
shipment stopped in New York to
supply New England.
Further investigation showed Mr.
Rainey that this amount was about
the usual quantity imported each
month for the past several years by
New York traders. The mythical
Chicago shipment disappeared alto
gether.
Moreover, Mr.. Rainey looked up
the facts about the the five ships
which brought this corn to New
York, and found that not one of
them could get through the Welland
canal on account of their dimen-
sions.
These corn transactions, appar-
emily made of record on the Chicago
Board of Trade, was absolutely
fraudulent" said Rainey.- "There
was never any intention to deliver
Argentine corn in Chicago in May.
1t was never delivered there. 1t
was never DETECTED. It was never
even purchased in the Argentine Re-
public.' -