St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1896-02-05
ELEVATOR MONOPOLY AND PROF
IT'S

ITS.
The letter from our special CORE
spondent from Mcintosh, published
this morning, continues the story Of the
robbery Of farmers by the elevator
combination. It is an old story in that
the methods adopted are everywhere
the same. It is always a new story
in that it adds another chapter to the
history of the farmers wrongs, and
another reason why the whole COM
munity should unite to throw off this
unspeakable tyranny, and to punish
the vile wrong that is done to the till
ers of the soil. At Mcintosh, also, last
fall, there was a temporary blockade
which became the elevator mems op-
vulture wheeling in the upper air
watches the beast that stumbles and
falls. Instantly he is ready to pounce
upon the helpless creature and feed 1
upon its vitals. &c. whenever there Is
an interruption in the stream Of the
farmers products to the central mar
kets, the elevator men increase dock
age, depress grades, spread prices, and
reap the profits Of whole season out
Of the misfortune that comes from
carrying grain to market during a few
weeks.
We have estimated from time to time
what the elevator profits and the
farmers losses in certain localities
amount to in actual money. The best
measure Of this, however, is found in
the dividends, and in the experience
OF independent buyers, and of farm
ers' elevators. 1t may not be generally
known, but we have indisputable au-
thortty for stating that the average
profit made by the elevator companies
In the Northwest is 80 per cent Their
returns vary from 20 to 40 per cent, &C.
cording to their opportunities to take
from the farmer the profits Of a years
labor. No such gains are possible in
this business without horrible injustice.
Beyond reasonable return on the
money invested in the elevator business.
all this excess of profit is just so much
taken out of the farmers pocket, and
subtracted from the resources Of the
Northwest to swell the ill-gotten gains
of few monopolies.
The experience of the management of
the farmers elevator at Mcintosh is in
structive. 1t was built in 1892, and since
then has been in business under the
charge of man hired by the farmers
and elected each year. It is a small
house. having capacity of only $4,000
| bushels. The line houses at the same
point have an aggregate capacity of g.
ing the last season handled 10000
| bushels of grain, while a fair estimate
| allows only 900 bushels to have been
handled by all the others combined.
They adopted the policy throughout Of
| letting the farmers elevator do the
business whenever it could be done
with nothing but the moderate mar
gin Of profit. The policy followed by
the farmers elevator allows a charge OF
only one and one-fourth cents per
bushel for handling. This is three
fourths of a cent less than the COM
NN-oNAAJ Ns''AiAie1ISA anu yet On
| this basis, buying and shipping grain
at figures which saved to the farmers
| Of the community a very large amount
OF money over what they would have
realized by dealing with the line COM
panles, and having capacity so linn
tied that it could not transact business
with the greatest economy and the
best advantage, the farmers elevator
has actually paid in profits since 1892
the entire cost Of the plant, and has
now cash balance of $500 in the bank.
| What sort Of profit this indicates for
the elevators managed by the big COM
panies we do not need to say. This
experience has been duplicated again
and again in other parts of the state.
as the revelations of our special cor
respondents in the future will
show. 1t is proof positive Of the per-
fectly enormous drain upon the people
of the Northwest to roll up millions
for the managers of business that is
today the most lucrative and the most
remorseleSs in it's eXactions in the
|