Jasper County Democrat, Volume 23, Number 59, Rensselaer, Jasper County, 20 October 1920 — McCRAY FIRM CAUSES FARMERS TO LOSE MONEY [ARTICLE+ILLUSTRATION]

McCRAY FIRM CAUSES FARMERS TO LOSE MONEY

Speaker Shows That Board es Trade Candidate's Business Brings Financial Brief to Many. ' Kniman, Indiana, October , 19.— Facts showing that the farmers of the northwestern part of Indiana have lost thousands of dollars through the Sawers Grain company of Chicago, of which Warren T. McCray, Republican nominee for governor, is vice-president, were given in an address at Kniman, Jasper county, Monday evening by Elmore Barce, a well-known lawyer of Fowler. Mr. Barce revealed the fiijpncial dealings by which the money was absorbed' through board of trade speculations on a tour of Jasper county in the Interests of Emmet Scanlon, who is a candidate for representatives from Jasper, Benton and- Newton counties.

“The greatest menace to the farmers of the middle west today is the Board of Trade at Chicago,” he said. “The farmer rises early, plows his fields, plants his grain, tends it during the long hot day of June, but when it is gathered in the fall the Board of Trade gamblers of Chicago garner in the substantia) profit of his summer’s toil. During the war, with the greatest crisis in history upon us, the operations of the board of trade were suspended. The government had to stop this nefarious business as a part of the program of saving civilization. Trading in grain futures suddenly ceased, but the farmers found, to their great joy, that for the first time in their lives, they received an honest return for’ their labor, and that notwithstanding the high prices for farm labor and material, they were actually realizing a substantial profit from their produce and their fields. Pits Are Again Open “A different story is now to be told. With the passing of the great world war,—the Board of Trad eh as again resumed operations —the ‘pits’ are again open, and many are ' the unfortunate who are falling in. A great daily in Indiana remarks that ‘the grain gamblers of Chicago are again double-crossing both producer and consumer, running down the price until the farmer is forced to sell, and then the cost to the buying public.’ "So great Is this peril to the thrift and industry of a great people, that Senator Arthur Capper of Kansas has drafted a bill to prohibit all gambling in grain futures, and has been led to exclaim that the ‘grain gamblers have made the Exchange building in Chicago the world’s greatest gambling house.’

“The farmers of Benton and Warren counties have had some bitter expediences. Over at Sheldon, 111., just across the state line, is one of the offices or ‘bucket shops’ of the Sawers Grain company, . an Illinois corporation, and a member of the Board of Trade at Chicago. Strange things about this company have recently come to the light of day. “Over at Earl Park, a peaceful little village in the heart of the corn belt, our neighbors organized the Farmers’ Elevator company and started to buy grain. They put in charge a soldier boy who had gone over the top, as honest a lad as there was in the county; but over him, and doing the buying and selling, was one Loe Kelley, and Kelley who got into the Board °C Trade. All at once there was an'explosion, and a reorganisation of the s company. Honest men, who had been friends all their lives, became embittered towards one another; tbe soldier boy, who was in nowise to blame, lost a good job, and an examiner was appointed to go over the books. He made a report in writing, which is extant, and can be read by anyone. In that report is this item: 'Losses occurred in options hedging with the Sawers Grain company, $9,685.98.’ Sixty-five dollars of this amount, in cold cash, was paid by these farmers to this Board of Trade organization to square their accounts. Temptation Is Strong "This is not all. A few miles to the northwest is another little village

of Benton county, named Raub. It is also in the center of a fine agricultural community. The farmers up there organized the Raub Grain company. But over it they placed the same Lee Kelley who had managed the affairs at Earl Park. Kelley was not a bad man at heart; far from it. He had a wife and three children, and took a prominent part in the social and religious affairs of his little town. But the temptation to gamble on the board of trade was too much for Kelley. All at once rumors became rife that disaster was in the air. They proved to be true. One morning the citizens of Raub found out that Kelley had gone. His wife and children lingered for a few days, and then they too moved out under a cloud of humiliation and shame. An examiner was appointed to look over the grain ledgers., He told the farmers to at once call an attorney. The disclosures revealed that the Raub Grain company had unpaid accounts for 'futures’ with the Sawers Grain company of approximately $25,000, and that he had in addition, executed two notes to the same company for the aggregate sum of $20,000 more. Forty-five thousand dollars of the people’s money swept away in a maelstrom of speculation on the board of trade. These are facts gleaned from first-hand information and are not to be denied. This had all happened in the present year of our Lord, 1920. “Up from Warren ‘county, and from the little village of Tab, comes another tale. Frank R. Pence was a grain merchant down there and was known to the farmers far and wide. They thought him financially sound, and loaned him money and sold him thousands of bushels of grain. He was nominated for state senator on the Republican ticket and was to have been voted for this fall. Inventory Shows Losses "Frank Pence suddenly passed over into the great beyond and left a widow. They have filed Inventories in the Warren circuit court showing assets of about $37,000, but claims already filed on, the claim docket last Saturday, amount to $79,681.71, and the clerk of the court says that this is not all. The bank of Tab alone has filed a claim for $27,218.50. "What was the matter? Everyone we consulted said, 'Board of Trade.’ We went in person to the record of Warren county. On pages 457 and 458 of Mortgage Record No. 38, w found a mortgage from Frank R Pence and Delia M. Pence, his wife to one William Simons. This mortgage covers lots 0,1, 2,3, 4, 5 26, 27, 28, 29, 30, 34, 44 and 45 in the town of Tab. It is of date April 9, .1918, and it is made ts _ secure three notes of e,ven date, one . for $5,000, and two more for SIO,OOO each, a grand total of $25,000, and this mortgage is unreleased save as to lot 1.

“Who is William Simons? On page 134 of Mortgage Record No. 40 of Warren county .it is recited in a certain release of mortgage therein appearing, that William Simons is the president of the Sawers Grain company (an Illinois Corporation). This company had a note ahd mortgage on Frank R. Pence for SIO,OOO as far back as March, 1913, and pn April 9, 1918, the mortgage Indebtedness of Frank Pence to this Sawers Grain company ; had increased to $25,000. Where did this go? The winds 'whisper and the birds sing that Pence loved the board of trade too much. What will the farmers receive who haye filed their claims for grain? ■ Maybe 40 cents on the dollar, maybe less, 'the Sawers Grain company still hold£ its mortgage.. - McCray Admits Interest “Now, my friends, here are some interesting facts. I hold in tay hand what is called by the lawyers, an examination of the party to a lawsuit. It was taken before Michael J. Wagner, a notary -public of Jasper county, Ind., by agreement of the'' parties, at the Discount and Deposit State bank of Kentland, at Kentland, Ind., on Tuesday, Oct. 21, 1919, at 8 o’clock p. m. It was taken in the suit of Herman Messman vs. Warren T. McCray et al, and the party under examination was Warren ~T. McCray himself. That examination Is still in existence and may be seen at any time. Here are some questions propounded to McCray at that time and, in that

examination, and here are his answers :

Q. During any of that time were you connected with any company that was dealing on the board of trade; had a membership in the board of trade? A. I' expect I dealt with a great many firms of that kind. Q. Were they members of the board of trade ? A. I suppose, Practically all the Chicago firms we did business with have memberships in the board of trade. Q. Now, do you have any stock in any of the companies? A. Yes, sir; one company. Q. What was the name of the company? A. The Sawers Grain company. A. And- what, if any, official, capacity do you hold in the Sawers Grain company? A. I was vice-president. Q. And how long have you held that office? A. Since 1910. Q. Up to the present time? A. Yes, sir. Q. And during that time you say you had stock in this company? A- Yes, sir. Q. How much stock did you have in the Sawers Grain company? A. Ten thousand dollars. Q. Do you know how much it was capitalized for? A. Forty. Did you transact business through the Sawers Grain company? A. Yes, sir. Compares McCulloch’s Record

“And now, my friends, I have made diligent inquiry to ascertain who Dr. Carleton B. McCulloch is, and what he stands for. This search discloses to me that he is a man who stands among the foremost in his profession in this state; that he has been a successful business man; that he understands the fundamental principles of sound, economic government; that he fully comprehends and advocates the abolishment of those laws that are oppressive and intolerant; that he is a plain man of the people. No man in Indiana possesses higher ideals, and no man in this state or any other state, has better demonstrated by acts and deeds his love of country, its honor and traditions.

“When the world-wide war engulfed us, and the United States joined in the struggle on the side of the allies, Dr. McCulloch was one of men of mature years who locked his doors, abandoned his business, and gave his valuable services to his country. There was urgent need of the best brains in the medical world, and there the great learning and great skill of Dr. McCulloch came in hand. He would not have me say it, but it affords me great pride to speak thus kindly of him. He was assigned, as a lieutenant, to that well-known unit. Base Hospital No. 32. Soon after its organization this unit was sent to Fi'ance. By sheer force -of his intellect and devotion to duty, he was promoted again and again until he became a lieutenant colonel. Much of his work was in the danger zone under shell fire. For meritorious work and valor he received the special recognition of France, and the grateful acknowledgement of his country. “Who are you for, my friends, this vice-president and stockholder in a Board of Trade firm, or this officer who gallantly served his country under the shell fire in France?”

Democratic Nominee for Joint-Repre-sentative of Benton, Jasper and Newton counties. *"

JAMES EMMET SCANLON