The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1915-01-26
NOT SPECULATION
SAYS mr.. PATTEN
Greatest Spectator In Wheat on CHI
cage Board Of Trade Says Price
Not Set by the Grain
Brokers.
SUPPLY AND DEMAND
Even Hints That RuIsarians Are
Anxious to Know What the
Price is In
Chicago.

CHICAGO, Jan. 26.--The unnatural
war. driving itself against the grain
Of humanity--this is the cause OF high
price in wheat. Every natural law
has been violated in its progress
and rules which usually govern the
prices Of wheat on the Chicago grain
market have likewise been violated.
This is the way Jas. A. Patten,
wheat king, summed up to the United
Press, causes resulting in the highest
wheat in the history of the Chicago
market after he left the witness
stand in Judge Lands court.
In his testimony, introduced by the
United States to prove the call" rule
Of the Chicago board of trade was in
violation of the Sherman antitrust
act Patten asserted optimism and pes
simism operated with the supply and
demand law, in governing prices. OPP
timism caused high prices, he testi-
fed. With a pessimistic view exist
ing throughout the United States,
why is it that today wheat reached
the highest price, he was asked.
"Oh that's where the war comes
in he replied. when l testified
that optimism caused high prices and
pessimism caused low prices, l meant
under normal conditions. Help the
Belgians.' This slogan seen every
where, sums up one cause Of the high
wheat price. Reliable reports are
that there were more than 100000
non-producing, who must be fed from
hand to mouth. And the condition In
Belgium is reproduced in other parts
of Europe, too
Asked if prices would go higher,
Patten said: Tomorrow you mean?
Why, that is story only tomorrow's
ticker can tell Patten denied spec
ulation caused high wheat prices, say
ing supply and demand has operated
the advance. He returned from Europe
recently, he said, not because he
wanted to stay near the exchange,
but on account Of the death Of a
member of the Bartlett-Frazier firm.
Patten freely answered every ques-
ton Attorney Davis asked curing the
court hearing. When defense counsel.
Henry L. Robins, rose to object to a
question, Patten answered before the
objection could be uttered. Il could
talk for two days." he said, "along the
line Of elements which enter into the
price of wheat"
Prefacing his analysis Of causes en-
tering into the prices of grain, Patten
told District Attorney Davies, lit is
very large question and one that is
very often misunderstood"
Supply and demand-economic
conditions; yes, and political ques
lions in our own country-these, if
you know the market, are the biggest
elements which enter into its making.
Weather conditions play part, too.
Wheat prices, 60 you ask me. Why
wheat is a world question. Existing
conditions on every part of the globe,
in the old world as well as our hamis-
phere, has something to do with the
matter
ELECTED by Attorney Davies the
question as to how large a factor the
Chicago market was in the world,
Patten replied: Every peasant-yes,
even in the Balkans, or in Bulgaria
and Austria and Russia that grows
and markets wheat-wants to know
the first thing in the morning what
wheat closed at on the Chicago mar
ket the evening before Chicago is
the world market" The concentra-
ton of corn at Duluth, Mimi, was re-
lated by Patten, Duluth brokers are
selling large quantities Of corn held
there on the Chicago floor at May auc-
ton. The brokers do not intend to
ever deliver it in Chicago. 1t will be
shipped, far east for consumptive use.
Some people may call that specula-
tivs-I don't"
Psychological was the term Patten
substituted for optimism and pessi-i
mism suggested by Judge Lan6fs.
Psychological, that expresses It
exactly. l mean this national state Of
mind which is such a large factor in
the wheat market" Patten said
He testified that there were times
when there was "disobedience of the
elements of markets. but refused to
commit himself on speculation in
wheat rft
Geo. A. Marcy. John c. Merrill and
other wheat brokers we're examined
during the morning.