Jasper County Democrat, Volume 16, Number 97, Rensselaer, Jasper County, 7 March 1914 — DEFENDS SPECULATION [ARTICLE]

DEFENDS SPECULATION

LAWYER ASSERTS PRACTICE ASSURES FARMERS FAIR PRICES. Fomer Representative Kelley Saya Growers and Consumers Are Harmed by Chicago Board of Trade. Washington, March 6. —Dealing in grain futures by members of the Chicago Board of Trade was defended as

a necessary protection ta both the producer and the consumer against fluctuations of price by Henry S. Robbins, counsel for the Chicago Board of Trade, at the hearing on the Manahan resolution.

Mr. Robbins stated that the distribution of American farm products is essentially a speculative business and that it is necessary that the risk attendant upon fluctuations be absorbed by a class of speculators so that the farmer may be assured a fair price and the consumer a food supply at uniform cost.

Mr. Robbins replied to a fiery address by former Representative Kelly of South Dakota, representing the Farmers and Grain Dealers’ association of that state. Addressing himself directly to the members of the Chicago and Minneapolis commercial organizations who were in the committee room, Mr. Kelly accused them of controlling the prices of grain to their Awn advantage and to the detriment of both farmer and consumer. In support of his statements he quoted prices month by month for several years, showing that the prices rose from March until October, when he said the grain was leaving the farmers’ hands and began to decline again when the fall crop was being gathered. Mr. Kelly showed the alleged disparity between the prices in Chicago, New York and London. He asserted that the price of corn has been forced down within the last 65 days by the board of trade. Speculators, he said, tried to explain this by tlje amount of corn Imported from Argentina, but he said the 7,000,000 bushels imported from the Argentine Republic could have no effect on the price of more than 2,000,000,000 bushels produced in this country. Mr. Robbins maintained:

That members of congress were exceeding their authority in undertaking this investigation. -