Salt Lake Tribune | 1914-03-08 | Page 1 | May Probe the Exchanges of the Country

MAY PROBE THE EXCHMESOF House Rules Committee Concludes Con-cludes Hearing on Manahan Resolution Authorizing Investigation. LEGISLATION ALSO SEEMS PROBABLE Sentiment Against Dealing in Futures Strong in House; Views of Grain Men on Proposition. WASHINGTON, March 7. Hearings on the Manahan resolution authorizing investigation of the Chicago, Minneapolis Minneap-olis and Duluth "grain pits' wero concluded today by the houso rules committee. Representatives of tho Minneapolis chamber of commerce, while denj-ing charges of conspiracy, monopoly and combination, asserted they wero in favor of a full investigation investiga-tion of grain exchanges. Tho committeo commit-teo probably will take up the question of a report on tho Manahan resolution next week. Members of the committeo appeared to favor a general investigation investiga-tion and Chairman Henry said ho bo-licved bo-licved a thorough probe of ''future" trading in all agricultural products, including in-cluding cotton, would aid congress in proposed legislation. F The principal argument of tho Minneapolis Min-neapolis exchange was presented by John J. McHugh, socretary of tho chamber of commerce. Ho said the present method of marketing grain, with the acompanying jjpjeculation in futures,, held down tho "margin of cost betwoen the price1 paid tho producer and tho post to the consumer to a minimum. mini-mum. Wide Margin Necessary. "Wheat could be merchandised," he said, "just as other commodities arc merchandised, without tho trade in futures; fu-tures; but that would ' necessitate a wider trading margin to taico care of tho speculative riBk that would bo Torccd upon the middleman, who would buy subject to tho constantly changing chang-ing market price. ' ' Tho intorestB of middle western grain farmers, wero represented by J. W. Shorthill of Nebraska. Ho urged a full investiRation and said that the fannora wanted to find out just what; tho effoct of 'eliminating fucuro deal-' ings in grain would bo. It had boon suggested, ho said, that prohibition in future- dealing would give the monoyod elevator interests control of the cash grain market. Ho also said that the effoct of future grain dealings on the credit of tho farmer in tho country banks should be investigated. Would Welcome Inquiry. David F. Simpson of tho Minneapolis chamber of commorco said ho belioved the grain oxchangon of tho country would wolcomo a broad, thorough investigation in-vestigation and insisted they had not eliminated competition nor combined to roduce tho price of grnin to farmers. Simpson snid tho Minnesota courts had docidod that tho grain exchanges were in no way operating in violation of tho law and that toe ovidence againBt tho exchaugos was part of a factional fight for business between tho Minnesota exchangos and the Equity Co-operative exchange, recently organized, now being waged in tho northwest. Simpson said the Minnesota legislature's legisla-ture's investigation had dovelopod that Ecpresentativo Manahan, author of tho investigation resolution, was an officer of the Equity exchange, Mr. Manahan interrupted to say his name had been used by the organization organiza-tion without his knowledge, but that aftor loarning of its use, ho acquicscod. Letterheads showing tho use of Mr. Manahan 's name woro placed in tho record. S D. Works, chairman of the Minnesota Minne-sota legislative committee which investigated in-vestigated tho uraiu exchange, said the northwestern fanner was prospering under tho present system. A communication from tho Duluth board of trade, favoring u full investigation inves-tigation of grain exchanges, was presented pre-sented to the committee by Representative Representa-tive Miller, of Minnesota.