The morning call., 1894-06-23
EXIT STARR co.
Absorbed by the Sperry
Combination.
A VERY SIGNIFICANT DEAL.
Control of the Starr Mills Is
Secured.
REASONS FOR THE TRANSACTION
Although Plausible Statements Are
REASONS FOR THE TRANSACTION
Although Plausible Statements Are
Made by the Principals the OPP
position Is Uneasy.

A very significant move has been made
by the Sperry flourmilI combine, and peo-
pie directly interested are asking what it
means. 1t is, perhaps, the most important
event in the powerful company's history
since fourteen of the largest mills in Cali
fornia were absorbed in a big combna-
ton.
The Starr Milling Company, the most ex-
rensive concern of its kind here. has vir-
tually gone out of business-for the pres
ent, at leas stand it now becomes part of
the Sperry concern. This transaction
leaves only one large mill fighting the COM
bine-the Stockton Milling Company-and
as the opposition decreases il is feared
that prices will be materially influenced
by this approaching control of the flour
business.
That prices will be changed by securing
control of the Starr mills is denied, how
ever, both by Sperry's manager and Mr..
Starr. They claim there is no Intention of
combining on rates, and all the change
signifies is purely a business proposition.
The Sperry Company leased the mills"
said MIR. Starr, reluctantly and with some
hestancy, yesterday. "but they have
obligated themselves to me TO keep up the
standard of our brands ana the quantity
and quality of -four the same as if the
Starr Company was conducting affairs.
Il will act as agent for the mills and
manage everything for the Sperry Com
pany just the same as if l were running II
for myself
Eve will begin operations in few days
apd run along steadily thereafter. In
addition TO milling we will take in storage
We have been shut down for about thirty
days, and that left about twenty to thirty
ont NE ~,
Will go on for one year under the new
control, but at the expiration Of that time
the lease and contract expire. The mills
have an average daily capacity of 1000
barrels OF -four"
will the change effect the price of
1Our"' was asked.
Not at all; it will remain the same as
ever. The change cuts no figure in that
way, and unless wheat advances there is
no prospect OF an Increase, which depends
on the market Flour is about as CHEAP
now as ever 1t was. For instance, year
ago to-day it was 81 per barrel, whereas
current quotations are IS 40 for the same
quality.
There are still many mills-the Crown,
Del Monte, Yosemite, Capital, National,
etc., in San Francisco and Stockton, and
others In the country-out of the Sperry
Company. If they are mostly medium
sized mills they certainly are factor
bine. Oregon -four is coming down now
in competition with the California article"
I'VE have leased only the smaller Vallejo
mill temporarily" said the manager Of the
Sperry Company, but not the large Starr
mill at Wneatport. near Contra Costa
Our purpose is to supply the trade tribu-
tary TO the mill up Napa and SonOma way.
20 hold that business which the mill had
before closing down. No export business
Will be done from the mill, as we couldn't
sell In England at present market prices,
which would not pay cost of production
From the other side 1t was learned that
the Starr mills at Vallejo and at Wheat
port may be started running at full blast
In the near future. This depends on
changes in the market, however, for
should prices take sudden turn upward
the mills will begin grinding out thousands
OF barrels of flour daily-a far off contin-
gent. The very fact of securing control OF
the monster mills is taken as positive
proof by the opposition that the Sperry
combine killed two birds with one stone.
The probability of competition, invited
10y idle mills, is removed, and If circum-
stances be propitious manufacturing on a
large scale would be started. 1t is suffi-
cient to show that this wealthy combine
ton means to fight in the future