St. Paul daily globe., 1896-03-23

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! Notwithstanding the scores Of indiyid-
ual cases detailed in these columns
showing how farmers have suffered
through the elevator combine Mr. Rob
bins insists that instead of combine
there is active competition, that track
shipments have proved a failure even
at Warren, that grades have averaged
higher at shipping than at terminal
points and that, in short, the tiller of
the soil has been receiving the very
fairest kind of treatment. According
to Mr.. Robbins, there is absolutely not
cent of profit in the elevator busi-
ness anywhere except in carrying over
the wheat for future delivery. This
astounding claim is not indorsed by
some OF the other managers, who adj
nit that a small per centage of profit
might be squeezed out by little super
human eXertion and exceptional fore
sight, but Mr.. Robbins is none the less
emphatic in his statements on account
of this.
There was q time" he admits,
when the number of elevator COM
panies was limited and the railway
companies would not furnish cars for
track shipments. This forced all the
wheat through the elevators. Then a
profit was made. But I speak of the
conditions which have existed for the
past three years, when I say that there
is no money in the business apart from
carrying charges. In the past five
years the price made off of the terminal
market and freight has never been more
than four cents. L can remember when
1t was and cents bushel. We aim
to fix our price at all outside points at
from 2.7 cents to 81 cents under tho
closing market price, plus the freight.
1t costs, we figure, 21a cents for in
surance. agents salaries and the like,
to handle the grain. Out of the re-
naming one-half cent must come a
quarter Of a cent switching charge and
then the freight on the dirt, so not
much is left
you maintain then" asked the
G b reporter that up to this point
there is no profit in the handling of
wheat under the present system and
conditions?"
Absolutely none" was Mr.. Robbins
emphatic answer. This can be proven
to the satisfaction Of any one at any
time. Now, here is where the money
is made: Say that wheat to arrive is
90 cents and May wheat is 62 cents.
If we choose to carry the wheat until
May. the interest and insurance is all
| we have to pay. This amounts to
eight-tenths of cent per bushel and
leaves 1.2 cents profit in carrying the
wheat forward. On 100000 bushels
| Iiic WOulQ De SlZ,UUU. WI H0n May
comes, suppose we turn around and
buy in the May option and resell for
July option at the same carrying
charge-there
WE GET OUR PROFIT.
But, mind you, all this is after we
have closed our transaction with the
| farmer and he has absolutely nothing
| to do with it,
All this, of course, is very pleasant
and ingenious Likewise, it is profit
able. Mr.. Robbins is a capital talker.
In the first place." he said, referring
to the main question, this matter of
there being competition in the grain
trade can be settled by an eXamina-
ton of the correspondence with the
agents Of this company at points where
no elevator business is carried on eX-
| cept by concerns known as line ele-
Vators. At these points our CORES
| pondence shows that we are constantly
giving leeway to our agents in price,
storage charges and concessions of var
1ous sorts on statements of theirs that
competitors are doing similar things to
! get an advantage in the business. Our
letters to Shepard, at Fisher, Tauson,
| at Norcross, and to agents at other
points where only line elevators exist
are open to your inspection. They
show that we gave authority to take
any step necessary to meet compe-
titlon. At Darwin, where we are the
only elevator, we gave instructions to
! pay cent above the list in order to
meet competition at Dassel and Litch-
neld. AT scores OF points we are Civ
ing the same orders. Our letters show
that these instructions are not given at
points where there are only indepen-
| dent buyers.
AS to profits the companies realize
on shipments made to terminal mar
kets promptly on the purchase of grain
repeat that no elevator company can
realize profit from this source under
| present conditions. In the territory
where claims of unjust grading and
| dockage have been made, our records
snow an actual loss on grades. The
elevators are now full of wheat and it
is impossible to tell how we will come
out on dockage except as indicated by
houses Whlch nave been shipped out
| only one, think Take Warren I'D to
the time Royem left, Oct. 16 He had
issued tickets for 3,503 bushels of No.
/ l hard, and 5,195 bushels of No 1
| Northern. When the grain was shin
! ped out there was loss of grade from
northern to northern, on 1897 bush
els, and from l northern to 3 northern
On oot pushels: He was short in dock
age 6i bushels and SO pounds I'M to
that time. Beginning with November
and UP to Feb. Z, our books show NOT
single gain on grade from Warren
but do show the following losses. Nine
cars from No to No. 2, one car from
NO. to NO. B. Besides this, remember
out OF every car load of wheat the
state takes 80 pounds, called a tare al
loWance to the elevator receiving If to
cover waste. That we have to stand -
Mr.. Robbins sent for his books and
taxing a few stations at random
showed the following difference in
| grazing there and at terminal points
generally resulting in loss to the com,
pany. out of about 100 cars shipned
from Stephen since August. two cars
shlpped as No. graded rejected. and
one car OF NO. dropped to No. g. The
single gain to the company was q car
load OF No. 1 northern to No. l hard
Argyle shipments Of 220 cars showed
the following on grades: Gains to tba
elevator company-one car No. north
efn TO NO. hard, one car No. 2 to No.
l ana two cars. No. to No. 2.
Losses: Twenty-eight cars No.
'Hortnern t 10 NO z, sixteen cars No. 2 to
| NO. 8, hVe cars No. hard to No. 1 one
car No. to rejected. Few stations
however, showed as heavy a per cent
or loss In grades, but that there is a
loss, the books show, in every instance
or nearly SO.
GAS TO SMUT"
explains Mr. Robbins, 'in the begin
n1ng or the season we started in to buv
smutty wheat, according to the rules
or the state inspectors making smuttv
wheat class as rejected This was lust
pefore the blockade. After a time II
developed that the mills had a new
process Of handling this wheat. and
would pay price equivalent to that
OF No. down to No. 8. The state in