The morning call., 1892-12-18
TRUST OR BUST.
The Invitation Given to
Merry MiIIerS.
The FILLING Trust Discharging Men,
Reducing Wages, Playing Tricks,
Lowering Cost, Cutting Prices.

Several more men were discharged yes.
terday at the Golden Gate flouring-mills
and although Manager Hill Of that mill has
endeavored TO deny the statement made
exclusively in The CALL the other day
that the milling trust is discharging men
and cutting down wages there is plenty oil
evidence at hand that such is the case.
The fact is that the trust has declared
war on the mills that refuse to 60 in to the
big combination. and is trying 10 drive
them either out of business or into the
trust.
1t wants to perfect its grasp on the con-
troll Of the milling situation In the State,
and to do that it must destroy in some way
the competition of the Starr Mills at Vallejo
ana Wheatporf which have combined
capacity of 5000 barrels of flour a day, ana
the Union and Crown mills, at Stock ton,
which have each capacity of about 400
barrels day.
So the trust is cutting prices. 1t began
running them down three months ago and
-four is lower now, compass with the price
of wheat, than ever before in this State.
The last cut was made q few days ago.
The best -four can be bought now for So 90
barrel, and II is said that TO large buyers
rebates are given by the trust al this price
to get the business.
The lower the trust can sell the more
effective its war on its rivals, who are
forced to meet the cuts or close down, or
abandon the cereal market for the export
trade.
Millers not in the trust, who did not want
10 be quoted as discussing the situation,
said yesterday that -four was now selling at
actual cost 10 the mills.
Now, If the trust can produce -four at
lower cost than its slnge-handed eompeti-
tors, it can quote prices they cannot touch
and it can hog the business.
That iS IT tho Urn cf i- cafT 70 ba OF,
at. That is where the trust has an advan-
tage. Lower cost OF aggregate production
coupled with the ability 10 dictate prices is
the motive aud the argument that lead
manufacturers TO 60 into trusts.
The trust is now mainly concerned with
the cheapeniDg of its cost of production.
That is why. according to the explanations
given By outside millers. expenses are being
cut down at the Golden Gate mills the one
San Francisco mill in the trust. The SIX
big mills in the trust are, of course, being
run as far as possible as one mill. Is has
been found advantageous to lessen the pro-
duction Of the Golden Gate mills, and it is
now being run on half-time, or twelve
hours day. The f0rce of employees has
been halyed, and, as a further measure of
economy, wages Of those retained have been
reduced.
Another interesting method of trust
economy was said yesterday to be ia opera
ton. A man who declared that he knew
mlldI ub vas dODuL tdlu.
1.-THE Golden Gate mills are not grinding
anywhere near enough -four 10 supply the
demand for that brand. They are sending
sacks TO the Sperry mills at Stockton to be
filled there with Golden Gate -four. Two
or TIRES weeks ago % 600 sacks we're sent to
Stockton and about 600 week are being
sent regularly. / have seen, TOO, five car
loads Of -four from the trust mill at Salinas
dumped at the Golden Gate mills to be
sacked there as Golden Gate -four"
Another man. and very prominent
miller, put 1t this way:
1T is generally understood In the trade
that each of the big trust mills makes -four
Tor the others TO save cost of transporta-
ton. Thus the Golden Gate Mills grind
Sperry's Drifted Snow andLSalinas -four for
the San Francisco trade as we'll as its own
brand. and SperTy's mills makes all three
too. The railroad company loses q good
deal OF freight, but the mills save freight
charges"
AS TO the discharge Of men and the cutting
down OF wages at the Golden Gate mills, a
man 10 position to know what be is talk
ing about, said yesterday:
L know that men there who were getting
So day before the trust was formed are
now getting but 81 60 The second miller
used to get 81 30 day for attending to the
bolts and another man was paid to attend
to the purifiers. The latter man was dis
charged and the second miller was not only
required TO attend to the purifiers as well
as the bolts. but his wages were cut down
to "a day. During the past week thirteen
floor men. sack-sewers, purifiers and others
have been discharged, and l understand
that several more are to 90 to-day. The
packers have been reduced from So 10 So 80
day / hear that several men have been
discharged from the five other trust mills
L suppose that the trust has resulted in
thirty or forty men losing their jobs and
the wages Of others have been reduced"
There is said to be little present pros pect
that any Of the big rivals 10 the trust will
be conquered by II, but then the war has
only fairly begun. The war is Just now a
ine thing for -four consume s, but II the
trust should crush out competition and gain
the mastery of the market-zipl whizzl car
you see the price of -four?