y in the valorization ointment was Senator G.W. Norris, of
Nebraska, who early in 1911 called for a congressional investigation of
the operations of the valorization syndicate, which he said was costing
the American people $35,000,000 a year. The attorney-general was
instructed to report as to whether or not there was a coffee trust. It
was a leisurely investigation, which encountered many snags placed in
its way by those who believed it would be against international policy
to question too closely the participation of the Brazil government in
the enterprise. Politics played no inconsiderable part in the
investigation, which dragged along until May 18, 1912, when an action
was begun in the Federal District Court for the southern district of New
York, alleging conspiracy in restraint of trade on the part of Hermann
Sielcken; Bruno Schroeder, of J. Henry Schroeder & Co.; Edouard Bunge;
the Vicomte des Touches; Dr. Paulo da Silva Prado; Theodor Wille; the
Societe Generale; and the New York Dock Co.; also praying for injunction
and receivership of the valorization coffee then stored in the United
States, and amounting to 746,539 bags. The injunction was denied.
Immediately thereafter, rumors began to circulate that the government's
coffee suit would never be tried. The Brazilian ambassador threatened
diplomatic interference, and Attorney-General Wickersham let it be known
that a friendly settlement might be effected. Sielcken boldly challenged
the authorities to prosecute the case, and even seemed to invite
criminal proceedings against himself. Saving the government's face, and
Brazil's face, at one and the same time, proved to be a long and tedious
process.
Meanwhile, Senator Norris introduced in Congress a bill designed to give
the government power to seize importations of coffee when restraint of
trade was proved. It was vigorously opposed by many prominent
green-coffee men and roasters; but in February, 1913, it became enacted
into a law. It effectively killed all future valorization schemes in so
far as direct participation by this country is concerned.
About December 1, 1912, Attorney-General Wickersham accepted good-faith
assurances from Mr. Sielcken's attorney--who represented also the Brazil
government--and agreed that if the valorization coffee stored here was
sold to bona-fide purchasers before April 1, 1913, the government's suit
would be dismissed. In May, 1913, the attorney-general of the new Wilson
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