The morning call., 1892-08-10
THE FLOUR COMBINE.

Articles of Incorporation have heeR filed
by the Sperry Flour Company. new con-
Germ, which has absorbed seven OF the ex-
listing flour-milling companies, with some
twelve mills, whose daily capacity is vari-
ously stated at from 3000 to 1850 barrels.
The capital of the new corporation is
S10,00O.000 Three leading milling concerns,
Starr & Co.. the Union Milling Company
and the Crown mill at Stockton, have not
Joined the combine. 1t is stated that these
three produce about as much flour as the
other seven. The object of the combination
is of course alleged TO be to prevent over
production and to reduce the cost of manu-
facture. All combines and trusts are said
to be formed with the same purpose. Ii
appears that the present annual produc-
ton Of flour in tins State averages about
100000 barrels, half of which. accord
ing TO the millers, is consumed in the State
ana nne-haf exported; but the actual
capacity OF the mills is far larger than this.
There is nothing which distinguishes this
combine from the other combines which
have gone into effect in the East and
which are now numbered By the hundred.
Combines always begin by assuring the
public that no advance in prices is eontem-
plated and that the object sought is merely
Standard Oil, which carefully avoided put
ting on the screws too tightly at first, is re-
ferred TO as proof that the interest Of con-
sumer and eombner may be identical under
jud cious management But as a matter Of
fact, the market reports are there TO show
that wherever a trust or combine is formed
among the makers or producers Of an article
OF general consumption the price always
tends upward. The operations Of the sugar
trust have caused a permanent advance of
about cent pound in sugar; and those
Of the new trust in anthracite coal in Penn
sylyanla have been equally beneficial to the
producer. Since January there has been a
rise Of 65 cents in CRATE coal and 81 90 in
chestnut coal. If the promoters OF the
Sperry Flour Company succeed in their
enterprise, the cost of -four TO the consumer
is pretty sure to advance. whatever the
philanthropists who are at the head Of the
concern may now promise.
II is not for the true interest Of California
that the growing export trade in flour
should be checked by combine which shall
| give the Minneapolis millers an advantage
over ours. Our export trade in -four is
| growing steadily, and it is a trade which
ought to be fOstered, not hampered. Twenty
| years age we shipped abroad not less than
zOo,VoO baIiciS .. HOuEs leu years ago tue
shipments reached 7j0. 600 barrels; in 1891
there were 1,263,090 barrels. Last month
they were light. owing to accidental causes;
the total shipment was only IS. $50 barrels,
as against 137, 697 barrels shipped in 1891
and the movements for the first seven months
OF this year is behind that of last. But our
new markets show an increased consump-
ton, the decrease being in our shipments to
Great Britain and France. In July last our
-four shipments to China were 80 per cent
larger than our shipments to Great Britain.
aud We sent nearly half as much flour 10
| Central America no we did TO England.
| These are the markets we ought to try to
build up. They will in time prove more
valuable than the markets on the other side
of the Born. What they may become when
steam intercourse with our neighbOrs is
| further developed may be inferred from the
| fact that. though we are running no steam
ers to South America, we managed TO ship
! to that continent in the mouth of July not
| less than 1000 barrels OF flour.
Any advance in the market price of flour
| engineered by combinations for the purpose
| OF enrchlng corporations or syndicates here
will work against the export movement, and
| cannot receive public approval.