St. Paul daily globe., 1893-06-13

years large reuuctlOn In the rate OIL
freight on grain, and the amount of the
reduction has gone into the price paid
farmers for their grain largely, but has
Injured mostly to the consumer, at the
far end of the calculation. All the re-
ductions made in the handling of grain
have usually gone to the farmer, and
this year the total margin of the ele-
yators for handling has been nearly
down to cents per buShel.
MIR. Milford then explained in de-
tail the operation of his elevator SyS-
tenn.
Some of the stations, he said. did not
receive grain enough to pay the eX-
penses of keeping them open and this
made a loss at some of the points,
whereas there might be large profits
SHOWN at other points. He did not be-
lleve that the general elevators OF the
Northwest at present took enough
grain to pay their running expenses,
let alone paying anything on the large
investment. The tendency of wheat
had been constantly upward since the
break of 1884 to the year 1890, since
which time it has been downward, till
now it Is the lowest ever known. The
prices Of the markets of the world, he
believed, fixed in the market of Chi
cago, and he gave incident of foreign
trip and examination of the market
formation, In 1891, as proof OF the con.
cluSlOn. 1t is erroneous to believe that
the markets are fixed in Liverpool.
In response to questions MIR. Mulford
gave it as his opinion that the trouble
and low prices were due to option deal
ing and to futures in the Chicago mar
ket. The question of low prices cause
farmers to feel that grain is going to be
a power, and they sell. The question
OF large sales also, although they are
fictitious, cause the farmers to think
they are real, and they dispose of their
middings. This causes a reduction of
prices and values throughout the world.
In the discussion that followed it de-
veloped that Mulford was opposed to
the government report system.
Pillsbury on the Stand.
c. A. Pillsbury occupied much time
on the stand, giving great deal of
statistics of milling and describing the
modern process at length. The millers
were not now making any profits eX-
cept upon some special brand of flour.
He attributed the low price of wheat to
short selling by spectators, and held
the operations of the Chicago board OF
trade to be disastrous to the farmer.
ment reports. He concluded by saying
the price of flower always follows the
price of wheat.
AS to the interstate commerce law, he
thought the effect had been disadvan-
tageous to the mllers as to rates. 1t
now costs 60 cents per barrel by lake
and rail to carry flour to New York, and
20 cents more will land it in Liverpool.
Mr.. PillSbury was examined as to any
combination of the millers to control
prices. None was ever known between
the millers. Among the elevator men
there was a fixing of prices, to pay the
same price at the same station, but this
was not always followed, and it was due
to the railroads, in the desire of each
company to get the freight belonging
to it. AS to crop prospects, Mr.. Pills
bury took the same view <S MIR. MOul-
ton. Nine times out Of ten the reports
lower the price of grain. The province
of the government was not to make
guesses. but TO state facts.
Peavey Has Some Views.
At, 8 O'Clock F. H.. Peavey appeared
before the committee. He was exam
ined by Senator PETER as to the opera
tion of his elevator companies and in
grain buying aud selling. Mr.. Peavey
explained that their operations were as
buyer and a seller of grain, for such
as they needed in their own calls as
seller of grain. There was no profit
whether grain advanced or declined, SO
they had no interest in controlling the
market, If the market could be con-
trolled. lie and associates handled, of
all kinds of grain, about $4,000, 900 BUSH
els. about 35,000,000 of it wheat. F. Ii.
Peavey & Co. are the owners Of
seven elevators in the Northwest. He
explained how each was operated and
managed. The organizations were made
in that form to better facilitate and
locallZe the management of the busi-
ness. His companies also make ad-
vanceS to the farmers. The advances
are about 20 cents on corn and so cents
on wheat per bushel. At points in
Washington the advance is IS cents on
wheat, and in some cases they have ad-
yanced at the rate of 25 cents q bushel
on grain not yet grown, taking mort
gage on the crop. This system is also
done in Nebraska and parts of Illinois;
also in California.
your opinion is the cause of this cOndi-
tion and new system of loans.
MIR. Peavey-It is due to variety of
causes. chiefly desire to loan money
to make more with it. We loan only to
well-to-do people and such as our agents
report good.
''At what rate of interest?''
''At per cent. People we loan to |
were formerly paying 2 per cent a
Mr.. Peavey said that his company has
two elevators in Minneapolis. Some