Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1914-01-02

boards attorneys they concluded they
did not have the power to do this.
Consequently the bull clique that
would not offer over 60 cents for con-
tract corn on track December 30 took
this corn the following day at the
price they made for the December de-
livery or vertually TO OF cent rise
from the price OF the previous day on
the contract grade of cash corn
on Dec. 81 8fr. Wayne had names
OF commission firms. namely one, the
Quaker Oats company. who bought
cash corn over the sample tables at the
Chicago Board OF Trade. as follows:
Corn testing 20 per cent moisture at
55i. cents per bushel: No. 3 mixed
corn, testing Is per cent moisture, at
62is cents per bushel, or S1S cents per
bushel under the closing price that the
manipulators OF the December option
put on the contract grade. Under US
ual conditions OF the cash market
where manipulation 20 flctitiously raise
the price of a certain commodity. the
difference between No. 3 corn and No
3. the contract grade, is nominal. On
Dec. 81 January corn, which carries
could be bought all day on the board
at 64lz to 64& cents a bushel. This
January corn on Jan. became the
cash price of No. 2 corn in Chicago. or
a difference of 5K cents under the
price that the December bulls put on
the commodity Dec. 81.
Defaults Delivery.
Mr.. Wayne defaulted on his delivery
of December corn from the fact that
he felt that a monied clique of Chicago
men had conspired contrary to the
United States laws governing the mat
ter TO establish a fictitious price for a
No. corn on the 31st day of Decem-
Der. Mr.. Wayne has evidence of repu- |
table firms Offering the leading bull
house On Dec. 80 No. in car on track |
for the purchase Of these houses. The |
best offer they would make him on
Dec. 30 was SO cents, as mentioned be-
fore. The following day these same |
houses bought this No. 2 corn after the |
directors of the board had determined
they could not enforce the delivery of |
this grade of corn and lower grades
which was on track in Chicago on
December delivery. This matter will /
DC utClutu ny a hPpOAheNN
by the board of directors. consisting of
three members, to determine the set
Ting price on default of December
corn. Their duties are to determine
the true commercial value OF the COM
modify in question on Dec 81. This
being the case, they also have the
power to assess a penalty according TO
the Chicago Board OF Trade rules, OF
> to 10 per cent in addition to the COM
merciaI value OF the commodity.
The L. s. laws are very stringent
as regards conspiracy in restraint of
trade. This being the case Mr.. Wayne
a letter to the arbitration
board OF trade committee, January 1
which is as follows:
Care W. A Fraser Company.
Royal Insurance Building.
Chicago, Ill.
l.
This is to advise you that unless the
settling price you make on defaulted
Decemb Der corn is strictly the exact
value OF the commodity II
shall take the matter up through the ,
L. S. congressman in this district and u,
lsk that an investigation be started to
ascertain If some OF your members |
nave been guilty OF conspiracy. This I
do not think would be a hard mat
-er TO prove as the fact of a certain
clique Being able TO raise the price
IN a certain grade of corn to a
Dushel over night without materially
1enefiting the price OF other grades
would alone OF itself demonstrate a
TO say nothing about this !
same grade of corn for January ship
nent on December 81 and January 1
being from 10 cents a bushel less
han the prices established by the De
,ember bulls.
Very truly yours,