Referring to the statement of the special elevator committee to the trade, and quoted by Mr. Greeley, to the effect that the trade need feel no alarm at the difficult situation confronting us as the committee had “assurance of sufficient regular storage capacity to meet any emergency that may arise," that statement by the committee was absolutely true and correct in every respect. At the time the statement was made the committee had the assurance of over 6,000,000 bushels of elevator room that, in case of absolute necessity, could be used for public storage. Part of this elevator capacity was being operated by its owners in their private business and could only be given up at great personal sacrifice, but it would have been devoted to the public service if needed.

Mr. Greeley makes the misstatement that I was chairman of the special elevator committee. I did not have that honor. I was not chairman of the committee.

Under direction from the board of directors, and only after the previous elevator committee had asked to be discharged from further duty, I appointed a special committee to consider the subject, and as I was, as president of the board, ex officio a member of all committees, I worked with this one, and I have never served with any committeemen who more unselfishly and more loyally devoted their time and ability to the best interests of the exchange.

It is true, as Mr. Greeley states, that up to the settlement of the elevator controversy I "made a determined stand against them." I did so because I believed their position was wrong and detrimental to the interests of our exchange, and I shall be equally opposed to them if they ever take the same position again. At the same time, when the elevator proprietors finally acceded to the demands of the committee, and accompanied their request to have their elevators declared regular with the conditions and agreement as prescribed by the committee and approved by the board of directors, the time for controversy and strife had passed and the time to test the plan fairly and dispassionately had arrived. I never stated to Mr. Greely that I "never would and never could consent to make the elevators regular." On the contrary, my efforts were largely directed toward forcing the elevators to become regular on terms that would be favorable to and meet the approval of the members of the exchange; and that, I believe, has been accomplished.

What I did say to several members was that I never would and never could consent to make the elevators regular on the conditions which the elevator proprietors demanded, and I never did.

Mr. Greeley refers to the so-called McReynolds's elevator agreement and the guaranty fund subscribed to protect the proprietors of that elevator against loss in operating the elevator for one year as a public warehouse.

I was the first one to sign that guaranty, and I consider it money well spent. It assisted in bringing the elevator proprietors to agree to our proposal, it furnished over 1,000,000 bushels additional storage room, and it is giving the trade an opportunity to patronize an absolutely independent elevator if they wish to do so. No misrepresentation was practiced in regard to this elevator, as alleged by Mr. Greeley. The board of trade did not first approach the owners of the property. On the contrary, the attorney for the bondholders of the McReynolds elevator came to me stating that the McReynolds elevator was empty and idle; that for several months fruitless efforts had been made to sell it and that, being vacant, it was difficult to keep the property insured. He asked if the bondholders controlling the elevator should operate it as a public warehouse under the rules of the board of trade, would certain members of the board guarantee the elevator $20,000 gross earnings for one year or jointly make up any deficiency between the gross earnings and that sum? I stated I would be one to sign such an agreement, and the arrangement was finally consummated.

I did state to the bondholders and to those who signed the agreement that I did not think all the elevators formerly "regular" would be declared regular again at the same time by the board of directors even if they did make application, but to this the attorney of the board would not consent, and when the elevators accepted our proposal and applied to be made "regular" he insisted, on account of certain legal considerations relating to the injunction suits then (and now) pending before the Supreme Court of Illinois, that all the elevators sign the agreement, and be declared regular together or else that none of them be permitted to do so.

It was, as Mr. Greeley states, gratifying to know there were so many members of the board willing to assume some responsibility in connection with guaranteeing the McReynolds elevator against loss, and not the least gratifying feature is the fact that, so far as I know, Mr. Greeley is the only one who regrets this action.

Mr. Greeley repeatedly refers to secret meetings, secret agreements, and "keep secret documents." There were none such. The elevator committee endeavored to keep the members advised of the situation, and when the directors approved of the

settlement effected it was expressly ordered that everything in regard to the conditions agreed upon with the elevator proprietors should be made a matter of record and be spread upon the minutes of the directors' meeting in full, where it is open to the inspection of every member of the association.

The only agreement or understanding of any kind with the elevator proprietors accompanies their applications, and is on the directors' records, open to the inspection of any and every member of the association. I am neither a proelevator man nor an antielevator man, and I do not believe we should be divided into such classes. I am for what is right and best for the exchange, and I firmly believe the so-called elevator agreement will prove to be both. It concedes to the elevator proprietors nothing to which they are not legally entitled, and, on the other hand, it protects the interests of the members and of the exchange. Best of all it furnishes a basis upon which we can all work in harmony and upon which we can firmly upbuild the Chicago market. If, however, it fails to meet with the approval of the members, it can be abrogated on July 1 next, as by mutual agreement the experiment has been limited to that time. Yours, truly,

HIRAM N. SAGER.

Those two letters were submitted to the 1,640 members of our exchange. What happened? The election took place, just afterwards, and I was elected president of the board of trade by one of the largest votes that has ever been cast for president. Out of the entire 1,640 members there were only about 10 members or less who did not vote for me, with the full knowledge of all the facts and with Mr. Greeley's dirty, malicious, lying screed before them. That was the answer to Mr. Greeley's tirade of abuse and falsehood, deliberately pronounced by 1,640 intelligent, wide-awake, honorable merchants. There is not another man in that entire association so low so contemptible, so absolutely false to all the true ethics of manhood as would have issued that screed just before that election except Mr. Greeley.

Gentlemen, you do not know the character of the man who has testified here against me and who has maligned the association with which he was connected for so many years. He has told you here that that elevator settlement was made in the nighttime an absolute falsehood. That elevator settlement was the result of months of deliberation; it was the result of the carefully thought out investigation and best judgment of one of the ablest, most honorable select committees that our exchange could possibly produce to settle that disturbing question, and it was indorsed by the directory of 18 members; and, gentlemen [turning to representatives of the Chicago Board of Trade], bear me out in this: Not only my committee, not only my administration, not only the members of the exchange at that time indorsed and approved of that settlement of the elevator question, but every administration since, from that day down to the present, has indorsed, has approved, has renewed that very same agreement, and it is the agreement to-day under which the public .warehouses of the city of Chicago are operating as regular warehouses of the Chicago Board of Trade.

Do you think, gentlemen, that I am moved in this matter? I am most profoundly moved. This is the first time in my entire business life of more than 30 years on the Board of Trade of the City of Chicago, and this is the first man of all the 1,640 odd members who have in all that time ever accused me of the slightest deviation from absolute morality and integrity and the highest of commercial ethics. And his charges are as false, as malicious, as absolutely untrue as is the heart of that man which instigated his remarks.

Gentlemen, it is a most scandalous thing that a man so absolutely discredited among the members with whom he has been associated all his life, as is Mr. Hal Greeley, should be permitted to come before the Congress of the United States, as represented by your committee, and in the presence not only of your committee-and, gentlemen, this is one of the things that hurts me most of all-not only in the presence of your committee, but in the presence of my lifelong friend, my early boyhood friend and schoolmate, my friend of to-day, Senator Robert M. La Follette-in his presence, to malign my character. I say, gentlemen, that your committee should permit such a man to attack me, when I was 800 miles from here, is, to say the least, most astonishing, and therefore I crave your indulgence if I seem to make my remarks personal, if I seem to deviate from the matter you are considering, because my personal honor and character is the dearest asset I have in life. I am not a rich man; I never expect to be. I have been engaged in the grain business all my life-the most legitimate, most conservative, most useful feature of the grain business. I have never had a speculative transaction on our exchange in all my life. I have never been able to accumulate anything of any material moment, but I have built up among my associates in that exchange a reputation for absolute honor, a reputation for absolute truthfulness, a reputation for character that is second to none, and I challeng Mr. Greeley as to whether that is not true. There is not a member of our association-bar none-whether they agree with me or not, whether they agree with that settlement that was made by that committee or not-there is not a member of our association except this man-man! God forgive the word! This person. There is not another member of our association except this person who would accuse me of anything except the highest degree of honor and integrity and probity, and I am here to protect my good name, and through protecting my good name to protect the reputation of those three members of that committee, one of them now dead, who acted with me, and to protect the reputation of the 18 directors who acted with me in this matter-and their action has been indorsed, as I said before, by every administration from that day to this.

Gentlemen, pardon me for a few words more.

There is so much

to speak of in relation to this matter. I would like to talk two hours about it, but I am trespassing on the time of another member, who has given me the courtesy of a few minutes of his time to answer this libelous assault.

What was that agreement that Mr. Greeley criticizes and which he says, "lying," gentlemen, "was consummated in the nighttime," thereby inferring that it was done under cover, that it was secret, that it was hidden, which is absolutely not true. It was open to all the members of our exchange, and spread on their records, accessible to every member of our association, fully discussed by the directory, and is known and was known to all the members. I wish to submit what that agreement was, that adjusted the elevator question on what I believe to be, and what all the administrations since then have indorsed as being the most fair, the most equitable, most reasonable settlement of that difficult question that was possible. I submit the copy of the original agreement arrived at by the committee, approved by the entire directory, and since then by every admin

istration.

The CHAIRMAN. It will be inserted in the record.

(Copy of original agreement with elevator company, dated September 10, 1907, here submitted by Mr. Sager, is as follows:)

[Copy of original agreement with elevator companies about declaring elevators "regular" for storage of

grain.]

CHICAGO, September 10, 1907.

To the board of directors of the Board of Trade of the City of Chicago. GENTLEMEN: In submitting my applications, attached hereto, requesting the board of directors to declare as described in said applications, regular warehouses for the storage of grain and flaxseed, under the rules of the Board of Trade of the City of Chicago, for the period ending June 30, 1908, I desire to state that, after consultation with the special elevator committee, I understand

First. That all stations at which there is competitive buying of grain are to be considered as competitive points.

Second. All grain received into and delivered out from any of my regular warehouses shall be done under the supervision of competent supervising samplers appointed by the board of trade under the control of the grain committee, who shall act in conjunction with the State grain inspection department. The decision of the latter in regard to the grading of grain shall, however, on appeal be final.

Third. That it is not to be considered a violation of the rules of the Board of Trade of the City of Chicago, or of the law of the State as declared by the supreme court, for me as proprietor or lessee, of public elevators of class A to own grain in public elevators operated by me, provided the grain owned by me is segregated from that of the public, kept in "special bins" and the receipts issued against same be designated as representing "special bin" grain. Such receipts shall be plainly and conspicuously marked as “special bin” grain and designate the number of said bin. Such receipts not being regular for delivery on board of trade contracts. Nor is it to be considered in violation of the rules of the Board of Trade of the City of Chicago, or in violation of said decision of the supreme court, for such "special bin" grain to be sold to a bona fide purchaser and be loaded out, reinspected and delivered into regular elevators in the general public bins and receipts representing said grain then may become deliverable on board of trade contracts; it being understood that I as proprietor of said elevators shall have no interest whatever, either directly or indirectly, in the ownership or control of the grain after having been sold, and the ownership and control of the property shall thereafter be vested absolutely in the buyer who shall pay for the grain upon the delivery to him of the elevator receipts in the usual and customary manner as is provided for the deliveries of cash grain under the rules. I as proprietor, or lessee of public elevators of class A shall have the right to deliver grain into any warehouse made regular under the rules of the board of trade I may elect other than into elevators owned, leased or operated by me; provided, however, that I may stipulate for delivery of my grain into my own elevators, but shall be required to sell such grain to go to store. These sales are to be absolutely bona fide sales made in good faith. I as owner, lessee, or manager of said elevators shall have no interest whatever, either directly or indirectly, in the ownership or control of the grain after having been sold, and the ownership and control of the property shall thereafter be vested absolutely in the buyer, who shall pay for the grain upon the delivery to him of the elevator receipts in the usual and customary manner as is provided for the deliveries of cash grain under the rules.

Fourth. Grain stored in "special bin" not being deliverable on regular board of trade contracts, may be sold or shipped by me.

Fifth. I as warehouseman shall be required to exercise all reasonable care and diligence to preserve the grain in my warehouses in good condition, and in case of my inability to do so, I shall promptly by the proper publication advise the trade and the public (as required by law) of any damage to grain or flaxseed held in store by me.

Sixth. So far as the rules of the board of trade are concerned, it is to be understood that a delivery by other members to me as proprietor, lessee, or manager of a public warehouse, in the regular course of business deliveries upon open contracts, of receipts for grain stored in my warehouses and which I have been unable to again deliver out before the close of regular hours for such deliveries shall not be construed to be a violation of the rules of the board nor of the warehouse law, as far as the board is concerned. Such receipts, however, must be delivered out by me as soon as possible, but not later than the next business day.

Seventh. Neither this communication, nor my application to have, nor the action of the board of trade in making, my elevators regular under the rules of the board shall in any way affect or prejudice, or be used by me, or by any other party with my

connivance or consent, to affect or prejudice the pending litigation brought by the State's attorney of Cook County or a final decision therein.

Eighth. Any intentional or willful violation of the above agreement shall be considered as dishonorable conduct and subject me to discipline by the board of directors. Yours, respectfully,

And in substantiation of my statement that it has been adopted by every administration since then, I offer also a copy of the present agreement with the elevator companies, which you will see is practically the same agreement.

The CHAIRMAN. It will also be inserted in the record.

(Copy of present agreement with elevator companies here submitted by Mr. Sager is as follows:)

[Copy of present agreement, year 1914, with elevator companies about declaring elevators "regular" for storage of grain.]

BOARD OF TRADE OF THE CITY OF CHICAGO,

To the board of directors of the Board of Trade of the city of Chicago.

Chicago,

GENTLEMEN: In submitting our application, attached hereto, requesting the board of directors to declare as described in said application,-- regular warehouse- for the storage of grain and flaxseed under the rules of the Board of Trade of the city of Chicago, for the period ending June 30, 19—, we desire to state that, after consultation with the warehouse committee, we understand:

First. That all stations at which there is competitive buying of grain are to be considered as competitive points.

Second. All grain received into and delivered out from any of our regular warehouses shall be done under the supervision of competent supervising samplers appointed by the board of trade under the control of the grain committee, who shall act in conjunction with the State grain inspection department. The decision of the latter in regard to the grading of grain shall, however, on appeal, be final. We, however, will not accept grain for storage in our regular warehouses that is not satisfactory to the grain committee of the Board of Trade of the City of Chicago, as to grade, unless it comes from sources over which we have no direct control.

Third. That it is not to be considered a violation of the rules of the Board of Trade of the City of Chicago, for us as proprietors or lessees of public elevators of Class "A" to own grain in public elevators operated by us, provided the grain owned by us is segregated from that of the public, kept in "special bins" and the receipts issued against same be designated as representing "special bin" grain. Such receipts shall be plainly and conspicuously marked as "special bin" grain and designate the number of said bin, such receipts not being regular for delivery on board of trade contracts. Nor is it to be considered in violation of the rules of the Board of Trade of the City of Chicago for such "special bin" grain to be sold to a bona fide purchaser and be loaded out, reinspected, and delivered into regular elevators in the general public bins, and receipts representing said grain then may become deliverable on board of trade contracts, it being understood that we, as proprietors of said elevators, shall have no interest whatever, either directly or indirectly, in the ownership or control of the grain after having been sold, and the ownership and control of the property shall thereafter be vested absolutely in the buyer, who shall pay for the grain upon the delivery to him of the elevator receipts in the usual and customary manner as is provided for the deliveries of cash grain under the rules, it being our understanding, however, that no room in our own public houses shall be used for special binning our own grain to the exclusion of grain offered by the public for storage.

We, as proprietors or managers of such warehouses, shall be required to sell any grain or flaxseed that we may wish to sell to go to public storage in warehouses regular under the rules of the board of trade in the open market in the exchange hall during the hours of regular trading. Sales may be outright or in exchange for futures. That it shall be the duty of the directors to fix a place where such sales shall be made.

That the buyer of such grain sold as above to go to public storage shall order the same to store in public warehouses regular under the rules of the Board of Trade of the City of Chicago.