Missouri Valley times. [volume] (Missouri Valley, Iowa) 1874-1931, 1914-03-05
WAREHOUSE TRUST
DOMINATES WHEAT
TRADING, He SAYS
Former Member of the Chicago
Board Declares the Members
Had Jackpot to Get Fa-
vorable Legislation.
EXPLAINS ALLEGED SYSTEM
Storage Concerns Fix Price to
Farmer and Control Futures
Market, Also, Declares
Samuel Greeley.

Washington. March 5.-Te suppsrt
his charge that the Chicago board Of
trade is dominated by an alleged trust
OF warehouse men. Samuel III. Greeley
told the House rules committee today
that d $4,000 iackp pot fund had been
raised among it's members last year
to get legislation at Springfield to
legalize dealing in puts and calls.
Greeley named two members of the
board who had admitted, he declares.
having participated in collecting the
fund He declared his belief that the
board had been forced to throw open
its doors to this So and $40 bet game"
and to seek it's legaization because
the warehouse men so controlled ana
manipulated the future and cash mar
kets by their possession OF stored grain
that legitimate dealing was inhibited
and floor traders driven to put and
call operations ito make a living.
Flays Board of Trade.
Speaking of Representative Mana
hans resolution to authorize an In
vestgation of the charges that me-
nopoly existed within the grain ex-
changes OF Chicago, Duluth and Mime
apoiis founded upon warehouse opera
tions and future trading, Greeley char
acterized the Chicago board OF trade
as a giant of fictitious wheat transac-
tions." and the weapon of a price con-
trolling monopoly. Mr.. Greeley was for
more than 90 years a member of the
board. Appearing before the House
rules committee in behalf of several
wheat growers organizations of the
northwest Mr.. Greeley urged federal
S,tion against an alleged monopoly
maintained by the public warehouse
man of Chicago and other market cen
ters.
Through membership on the Chicago
board and control of the storage Of
IN, ha a..
clared had built up an organization
which controls the wheat prices OF the
! world more than any other agency sx-
,ept war scares and financial panies."
Key to Situation.
The key to the situation was deal-
| ing in futures. where no delivery 49,
Intended. ne declared, and it, this ousi-
| ness the Chicago board of trads out
stripped the other markets Of The
Sorld combined.
Evidence was submitted to the con-
mittee designed to show that the ware
house trust" began business in 1857.
and had steadily increased in power
until today the Chicago board was
"throttled and controlled by the public
warehouse men,.
Mr.. Greeley read in the record . re-
cent change in the rules by the board
removing certain penalties prescribed
against warehouse members. This. he
said. was done at the order Of tAs
warehouse mems command.
1t was said that if the hearings bring
out sufficient evidence. the subject
probably will be referred 10 the com
mittee on agriculture with recommeA-
dation that it draft legislation to rem
tdy the alleged evils.
Law Violation, He Says.
Mr. Greeley charged that public
warehousing in Chicago was conducted
-openlr and brazenly in violation Of
.he law without any organized objee-
ion of state authorities. to crush open
competition.
1T is recognized" he asserted that
% per cent at least of all cash grain
| which has entered public storage fer
many years has been controlled by Ill
egally operating warehouse prepriA-
ors. Innocent individuals are subject
ages in the game which are csrrs-
spondingly i'll favor of the combined
| warehouse man spectators.
| "Closaly associated with the sues
lions here involved should be censiA-
cred the manufacturing OF so-salled
contract grades OF grain from mixtures
Of the lower grades with better grades.
Such mixtures illegally placed in
public storage by subterfuges are
easily discovered and understood aaa
no doubt are known to exist BY cue
state authorities. who should. but
do not properly control the warehouse
business Of Illinois,
The effect of this. he said, was to
| enable the warehouse men to keep In
storage enough wheat TO sontrel Ao
market In futures and establish the
price on the farms at whatever they
choose to make it.