COLD STORAGE AND FOOD SPECULATION 57 



These manipulations of eggs, butter, and other 

 foodstuffs would be impossible without the co-opera- 

 tion of the Chicago banks, which are an integral part 

 of the system. The egg speculator is permitted 

 by the banks to borrow money on his warehouse 

 receipts on a valuation of only $L50 a case below 

 the prevailing market quotations, which are almost 

 always from 50 to 100 per cent, more than the price 

 originally paid for the eggs. In other words, the 

 speculator borrows on a valuation which he himself 

 fixes rather than the price which he paid. This 

 gives the dealer a big line of credit which he can 

 use to buy more eggs, upon which he then borrows 

 money at a fictitious valuation and uses the proceeds 

 of his loan to buy other eggs. The co-operation of 

 the banks makes it possible for the speculator to 

 pyramid his holdings during the storing season and 

 greatly to enlarge the scope of his operations and 

 still further monopolize the market. 



The attitude of the egg speculators toward the 

 public has been arrogant in the extreme. Judge 

 Landis, of Chicago, issued an injunction against 

 market rigging and forbade any but bona-fide sales. 

 The officers of the egg board met and worked out 

 a plan by which they could continue their specula- 

 tions but accompany each sale with bills, car num- 

 bers, and entries on their books, just as though an 

 actual transaction had taken place. The attitude 

 of the speculators toward the public is expressed in 



