St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1886-10-16

an Improvement In this respect are not to be
realized. One of these associations is the
Millers' union. 1t is apparently very inno-
cent sort Of combination by which all the
millers agree to buy all their wheat together
at uniform price, by sample on change,
the total purchase of each day to be divided
among the various mills according TO their
needs. These purchases are made by two
agents of the union At prices for
GRADE WHEAT
in store, fixed by a committee of three
millers- The other association is made up
OF the elevator companies and local
buyers, covering the greater part OF
tue territory west and southwest
tributary 10 Minneapolis. The buying by this
association is at uniform agreed prices quoted
daily 10 all buyers in the country from MINI
neapolis headquarters. The price is regulated
by the price of grade wheat thar day and tne
Miilers nnion fixes the prices of grade
wheat. This all looks harmless enough. But
II isn't. In the first place there is no more
competition between the buyers than if there
were only one in the field. The powerful in
ducemeut of mutual interest and profit is
strong enough, apparently, to hold this pool
together. they even 20 so far as to divide
the business between themselves, and if one
member of the association complains that he
is not getting his share the others ready 10
turn over business TO him and even up all
around for the sake Of maintaining the pool.
IhiS LIBERALIZATION not Ouiy SEEKS ~ LuOhbp-
Ollie the grain business in the territory
through which il extends, but it has been
powerful enough thus far to add cents to
the margin upon which ii buys. Last year
the MiilerS association bought upon q margin
of cents; this year the pool is buying upon
a margin OF cents. The difference comes
out of the
PRODUCERS POCKET
aud goes into the pocket of the dealer. simply
because he belongs to an association strong
enough to exact it. The advantage to the
producer secured by the suspension of the
Aillers' association has been the increase of
cents in the country grain buyers margin
above what IL was last year, and CORE
spending reduction in the price the farmer
gets for his grain. As they say in the play,
It's just as transparent as glass" when you
once see through it, and we predict that when
the farmers come to understand how they are
being compelled to give up an additional 2
cents a bushel by this powerful pool of grain
buyers and millers hey will find some way to
stop it We shall probably have something
more to say on this very interesting topic.
On Sept. 9, this Republican paper, I'M
aware of coming events, followed up the
subject in the following editorial:
Another feature of the profitable system
under which the grain pool is operating is
the advantage gained by buying by grade
in the country and selling by sample in the
ndFAtG. As SldteU IN L0S journal q IeW
days ago. the grain pool has succeeded in in
creasing the margin from 5 cents. the figure
last year. to cents per bushel. That adds
cents TO the profit OF handling it, and cuts OF
= cents from every bushel of every grade of
wheat bought by grade in the territory in
which this pool operates. This is claimed TO
be legitimate profit. Perhaps it is. 1t is
large enough, however, to hold the buyers to-
gether III
POWERFUL MONOPOLY
of the grain-buying in the country. and pays
so well that no one thus far has cared TO break
it. buU on the other hand, the slightest COM
plant from any member that he is not getting
his share Of the grain results in diverting
the stream to him till he has caught up
and his percentage is full. But there is more
profit in the transaction than is represented
in the tive-cent margin, and so much more
that we think the intilctiOn of this two-cent
extra tax upon the producer the less justifia-
bic. The prices paid for different lots of
wheat of the same grade when sold here by
sample will vary from one-haf cent to
three or four cents the same day. For exam
pie, yesterday No. l Northern sold on track
all the way from Y to IS cents, and No.
Northern sold at 69@73c-a difference of
3 cents in the one case and of 4 cents in the
other. This is about an average variation
when there is no excitement. To-day wheat
is being bought all through the country trib-
utarv to Minneapolis on a basis of not 75
cents for No. l Northern or even 1917 cents,
but about Y cents. The lowest price paid by
sample is practically the grade price in the
country. When the wheat comes in to Mime
apolis and is offered for sale by sample, it is
sold according to
ITS REAL VALUE
and as already explained, will vary in price
within the same grade from l to or cents
above the grade price at which it was bought
| Where does this diference-the advance over
the country price with the tive-cent margin
| added-gO to? Back to the country producer
whose wheat proved to be worth more than
| &c got for it? Is the buyer so well satisfied
with his almost sure margin of cents that
| he rushes back to the farmer to pay him this
difference? We would like to publish the
name OF one who would even divide Instead
of the margin being cents, as claimed, the
| pool is really working on a margin of cents.
! This is another reason why we protest against
! the pools. 1t is not only demanding larger
! margin than before, but is doing so in the
| face of the fact that the present system of
! handling the grain enables it to add from to
| 3 or cents to the marginal profit. We have
| said we do not expect this to last long. We
| have heard of farmers shipping their own
| grain and doing well at it. and would not be
| surprised TO see it done again very generally
This is the wheat pool ring that has Sc
! lected a. r. McGill as its candidate. A
| r. McGill is the man the PillSburys and the
FletcherS would place in the gubernatorial
| chaiI in the interest OF their schemes
against the farmers. And this is why Nc
Gill is carefully kept away from the farm
ing districts, and is why the farmers of the
state are rising to man in support of A.
! A. AmeS, the foe of mOnOpOlieS of all kind.