St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1892-03-18


are a great many more elevators than are
necessary. There are in Minneapolis twenty
six elevator companies, each dong business
under separate head, and if they would
combine the saving i'll expense would OF
itself make good profit
Mr.. Amsden said that the Minneapolis
price of wheat was frequently higher
than that of Chicago. IJ had been as
much as 81 cents higher. This was
when wheat was scarce and the mlllers
wanted it and had to have it or shut
down the mills. The difference yeSter-
day between Chicago and Minneapolis
was ia cents. Mr.. Amsden, questioned
by Gen. Barrett about screenings, said
his company burned most of them for
fuel. They had never sold any except
in small lots. Ninty-nine onehun-
are 215 cents per bushel for the first
fifteen days, and half a cent bushel
for every fifteen days or fraction there
of additional. The charges from Octo-
Der till May would be on that basis.
The rate is the same the year round.
1--WE have at times carried wheat with
out selling against it. We may have
some now. 1t
Isn't Safe to DO 1t.
as Mr.. Pillsbury says, but men very
Gen Barrett-What is future delivery II 1t
is not TO throw the wheat on the market?
Directly the opposite.
''What is the difference between future and
cash?
Wont it about amount to the storage
charges?''
Yes, about
suppose you bought 100000 bushels at 81
and sold 1t for future delivery at 10. You
bov inv cd
Yes
Now. the charges would be the same if you
had bought it for Is cents, and you would
have had only S750.000 invested!'
YES the charges 90 not vary.
''Then this vast elevator system, with TWEEN
ty-six companies and 1000 elevators, has no
interest in keeping up prices?"
Isn't 1t the other way?
Having bought the wheat at the estab..
lsbed price, wouldn't 1t be to the interest OF
this elevator system to assist the price in
dropping? Wouldn't it make more than by
keeping it up?
You are making a lot of gamblers out of
the elevator men,"
Wouldn't 1t make more at rs cents than
at SIP
at would save something OH interest on
money invested and something on lnsur-
ance'
Then the lower the price the higher the
protit?''
We'll. if that is more satisfactory to you,
call it that way
Gen. Barrett here gave way to Gen.
Childs, and in answer to question Mr..
Amsden said that from an elevator stand
point the money saved on insurance and
on money invested would give the COM
pany so much more for handling the
grain, but from the millerS' standpoint
the reverse was true.
Mr.. SevatsOn asked him Tow much of
Xphn0f cold delivered
Witness said very little. None was sold
at Chicago.
Then if you sell on futures at 90 cents, and
buy il back or settle they call it, at 50 cents,
you make five cents bushel, don't you p
THAT depends on how we get out on The
cash wheat
Returning to the Fray.
Gen. Barrett again returned to the
fray and asked MI. AmSden what the
effect would be if the crop had been
held out, instead OF being sold out for
future delivery as soon as received, and
Mr.. Amsden replied that that was a
matter of opinion.
Senator Smith-As matter of fact it never
held out. a S general thing grain men
ell against their purchases.
Gen. Barrett-ls it customary thing to de-
liver wheat sold?
"Notin Chicago. We do in Duluth and
Minneapolis
why not in Chicago?'
1.-THE freight to Chicago is more''
Doesn't selling for future delivery have
about the same effect on the market as ware
housemen buying and drawing against it:'
THE man who sold half million bushels
would affect the market more than the man
who sold car load
You mean by way of bearing the market?"
''Itwoud have tendency that way"
Mr. McGhee-When you ship cash wheat to
Minneapolis who is it sold to?
"Millers, mostly"
suppose, instead of holding the wheat and
selling against it, you sold the whole in the
Minneapolis market, what effect would it
have?n
Il think you could buy wheat very Cheap
Wouldn't you buy your next wheat low
enough to cover The loss?'
We should like to, bat we are not able to.
for the price of wheat is determined by the
cash market When wheat is low in price
there is general discomfort. and as result
there are more track buyers, while when it is
high the elevators handle most of the wheat.
1t is therefore to the interest of the elevator
companies to have the price of wheat high"
You can make more money VIII ell the
price is high:.'
"Yes, because we handle more
Gen. Barrett wanted to know if the
elevators didn't make more on a crop
OF half the size of last years at higher
prices, and witness said he didn't think
SO. He also said that the elevator com
panieS expected competition. This was
in answer to a question as to their policy
in allowing every one to buy wheat at
stations.
Senator Smith-How many elevators have
you?
About 100. We are selling them off as
fast as we can get so cents on 81 for them"
HAS there been any discrimination by the
railroads at points where there are indepeGd-
ent buyersY
Il am sorry to say that we have not had
our proper proportion of the cars. The
tendency of the railroads is to favor the
small business houses. SO as to keep them
open"
Gen. Barrett again began to question
the witness about things that were al
ready of record. and both Mr.. Amsden
and the chairman became hostile, and
Barrett subsidized.
Senator Smith, don't suppose Amsden
knows any more about the business of Mr.
Irons than theman i'll the moon Goes.
Gen. Barrett-Let him refuse TO answer,
then.
Mr.. McGhee-You and Doc Fish are the
only ones that have refused to answer
Chairman GelsSel-I think these questions
have all been answered before.
Gen. Barrett didn't hear them.
g. Mr.. McGhee-You were out hoseshedding
a witness.
Gen. Barrett persisted in asking about
Irons business until Mr.. Amsden re-
piled that he would decline to answer
any more questions asked by Gen. Bar
rett.
Gen. Barrett am entitled to as much
courtesy as any man who comes here i'll the
pay of the elevators.
Chairman Geissel-We have given you full
scope
In response to single question by
Gen. Childs, Mr.. Amsden answered the
Barrett inquiries by saying that the
business of the elevator companies with