The great West. [volume] (St. Paul, Minn.) 1889-18??, 1890-05-02
Mr.. Hynes on the Milling Business
EDITOR GREAT West:

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EDITOR GREAT West:
Mr.. Pillsbury states that when
wheat is high in price thera is more
profit to the miller. This is true OF
course as to the Custom miller, who
takes toll as for instance: When
farmer brings six bushels OF dollar
wheat to be ground, and the miller
takes one, he gets a dollar for his
work, but when wheat is fifty cents
and he takes the same toll he only
makes fifty cents. But this does not
apply to merchant mills like those in
Minneapolis. These are large -four
factories, built to turn out large
amount of manufactured products,
and like all other manufactures, the
profits lay in the goods made, the
larger the out put the larger the
profit.
Now one can easily see that the
cheaper this product is offered. the
more they will sell of it. Hence it is
an object to buy ''raw material" at
as low price as possible. The wheat
grown in the Nothern spring wheat
region, owing to certain conditions
of soil, climate and variety, has a
distinctive quality from other wheats
grown in the U. s. 1t is known by
certain commercial titles, as No. 1
hard, No. 1 and 2 Northern. 1t be-
ing of the best quality lit leads the
list of prices. The -four made from
this wheat is the best known to the
world.
From such statistics as | have at
hand l find that the major part of
the wheat marketed in the Northwest
is ground at merchant mills, there be-
ing 1876 OF these mills with Minneap-
oils as headquarters) that are COM
bined in an association! Which is
to all intents trust.
What do they combine for? Sim
ply to get all they can, by hook or
crook. out of the margin that lies
between low priced wheat and high
priced -four.
Thus combined, they work as a
unit the flour that is exported is un-
der their complete control.
The English market is a leading
one, the price of any commodity
there, is accepted as a standard one,
for the world.
Now as this Northwestern flour is
of the highest quality offered in the
Liverpool market, and as the amount
that is exported is very large, it be-
ing, as per an item in Minneapolis
Journal" 35 per cent of the entire
production, and as this production,
for the month of January alone, was
2,O47, 900 barrels, it will be seen that
it has a powerful influence.
When offered for sale at certain
figure at once all other grades OF
-four become subordinate in price to
the N. W. -four.
Now as the English millers are
buying foreign wheat they are COM
PEELED to buy wheat at such a figure
as will allow them to compete with
the Am. -four; the price they then pay
for wheat is known as the Liverpool
price, and it is cabled to all the world /;
all other markets are made to har-
monte with it.
This n W, flour is a kind of a
lever that can be used for raising or
lowering the wheat and -four markets
OF the world. The power is located
at the Minneapolis end, a simple
cipher cablegram to the foreign
agents will have the desired effect.
By working in conjunction with
the Chicago manipulators the power
is complete and therein we can find
an explanation for some. of the great
fluctuations OF recent years.
Under the present conditions of the
agricultural industry the farmer is
compelled to part with his crop as
soon as he can market it. It is all
out OF his hands by the first of JAN
uary, and in the elevator controlled
by the same men who are interested
in the mills. 1t is easy to see that
these men do not look with favor
upon an organization, that has for
it's object, the improvement of the
condition of the farmer. They would
rather see him remain in q hand to
mouth condition.
'He won't be so id independent"