The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1920-10-20
SAYS WHEATPIT
is ON The SQUARE
Recent Slump Caused by
Canadian Exports of Grain.
Gambling Manipulation of
Prices Denied by Gates.
ARE PROBING GRAIN MARKET
Federal Trade Commission Fol-
lows Up Allen Charges.
Senator Capper Among Those
Called to Testify.

Chicago, Oct. 20.-Trading in grain
on the Chicago board of trade is on the
square. F. L. Gates. president of the
board, told George P. Watkins. statis-
tician for the federal trade commits
sion here today.
Watkins is investigating charges
made by Senator Capper and Governor
Allen, both of Kansas, that grain
prices are manipulated by the board of
trade and that gambling in grain is
conducted on an extensive scale.
There is no manipulation of prices
or gambling on the board of trade"
Gates said. The statement was made
In a private interview between Wat
kins and the board of trade president.
watkins will not conduct open near
ings but will interview officials OF
various boards of trade In cities where
they exist.
Slump Was Legitimate.
The recent drop of cents in the
price of wheat was due to the large
amount of Canadian grain coming into
the country" Gates continued The
price of wheat did not go below the
figure guaranteed by the government
during the war except on two days,
until October. when large amount of
Canadian grain started TO go on the
markets of this country"
Results of the present investigation
may supplement the report of the
probe made by a commission made
three and a half years ago on order
of President Wilson. This report has
never been made public.
Follow Up Allen Charges.
The hearing followed complaints of
Governor Allen of Kansas that the
slump was caused by spectators.
Charges by United States Senator
Capper of Kansas that the recent
eli, l. xn-Ia
spectators prompted the investiga-
tion. Chief Examiner Francis Walker
was to conduct the hearing.
Among those summoned to testify
were f. i. Gates, president of the Chi
cago board of trade; Senator Capper'
and numerous grain dealers and rep
resentatives of farmers associations,
Oklahoma Falls in Line.
oklahoma City, Oct. 20.-John A.
Whitehurst, president of the state
board of agriculture today wrote a
lotter to President Wilson declaring
that grain producers and dealers IN
Oklahoma are unanimously in favor OF
closing the grain option market until
congress convcnes.
Whitehurst telegTaphed wilson sew
eral days ago urging the latter 10 ols-
continue the market, charging that IN
stability of the market was caused by
speculation in futures at grain ex-
changes % the country. wilson, IN
his reply, asked Whitehurst to give
proof of his statement
Il have consulted great number OF
the largest milling institutions in the
state and talked with a considerable
number Of grain dealers and they are
convinced that the option market is
contributing largely to the present
erratic and unfair wheat market,
Whitehurst wrote.
Wanted Board of Trade Abolished.
Charging that gambling on the Chi
caeo board of trade is as illegitimate
as gambling on horse races. Governor
Allen, on his return from recent
speaking tour in the east. pushed his
request to President Wilson that
probe of the Chicago wheat pit be
made.
II the investigation shows that the
recent drop IN the prices of farm
products is due to manipulations by
the board of trade, Governor Allen
will ask that the board be abolished.
1t Is probable that the investigation
which has been asked in the wheat
market will be pushed into the fields
of trading in cotton and other COM
modities.
Developments as to the requests for
the abolition of the board of trade
will wait on the results of the investi-
cation which the Kansas governor has
asked. it is understood.