UNCLE SAM SCENTS ORGANIZED SYSTEM OF
PRICE BOOSTING RIGHT IN CHICAGO
Uncle Sam has put his finger on , for E. A. Cudahy and John Chaplin
Chicago as the spot where he be
lieves high prices of foodstuffs are
being manufactured. He is ferret
ing through a mass of evidence to
see if there is not an organized sys
tem of price boosting for the purpose
of getting from the consumer "all
the traffic will bear."
A situation that surprised even the
federal investigators was disclosed
when the government agents started
to work in Chicago. It appears that
packers, warehouse men and bank
ers are working hand-in-hand to pile
up high costs on the public. So
startling was the information se
cured by the federal agents that the
federal grand jury has asked Dis't
Att'y Clyne to issue subpoenas for
500 retail food dealers and some of
of Swift & Co.
Retailers will be asked by what
agreement they are able to raise or
lower prices simultaneously.
' A report will be investigated that
100 cars of lard are being held on
railroad tracks just outside the
stockyards and that the packers haye
a hundred million pounds' of salted
meats in storage.
Butter and eggs have made a lit
tle drop in the past week. All per
ishable food is expected to slump as
a result of the order of the Pennsyl
vania and Erie railroads refusing to
carry such foodstuffs east of Pitts
burgh. So much food has been piled
in the eastern yards, awaiting sale
to the allies, that the roads have few
cars left. This will relieve the situ-
the biggest packers and bankers of i ation in the middle west, which has
the city will be quizzed.
The agents disclosed a condition
whereby it is possible for a food spec
ulator to take $10,000 and with it buy
and hold as much as $100,084 worth
of foodstuffs in cold storage. To do
this he has to have the aid of- the
banks. The system is for him to buy
$10,000 worth of, say eggs. He then
borrows $9,000 on the $10,000 worth
of eggs in storage at 6 per cent. He
continues pyramiding his loans and
purchases until he has over $100,000
worth in storage on $10,000 capital
Then he can wait for a price killing.
This is fine stuff for the banks."
Chicago Cold Storage Co. is said to
have borrowed $3,000,000 from Chi
cago banks on warehouse receipts
during last summer's buying season.
Representatives of the six, big
packing firms and of three Chicago
banks were questioned by the grand
jury yesterday, among them Art
Meeker, vice pres. of Armour & Co.
They furnished testimony that the
pyramiding plan gave profits to ev
erybody but the-consumer. Marshals
been drained by-war speculators.
Chain stores pulled down the price
of butter from 44 to 39 and of eggs
from' 4? to 39.
ENGLAND ASKED FOR FACTS ON
ARABIA SINKING
Washington, Dec. 8. After con
sideration of the German "explana
tions" in the Arabia case, President
Wilson today instructed Sec'y Lan
sing to forward an outline of the re
ply to England, with the request that
any facts the British government
might have as to status of the ship
when she was sunk would be wel
come to this government
ARMED GUARDSWATCH BODY
OF OIL MILLIONAIRE
Tarrytown, N. Y., Dec. 8. Two
guards, heavily armed, today watch
over vault in Sleepy Hollow cemetery
in which remains of John D. Arch
bold were laid yesterday. Two oth
ers will relieve them tonight and this
watch will be maintained until the
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