St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1896-02-22
COMPETITION BY INDEPENDENT
BUYERS HELD UP THE PRICES
OF WHEAT.
FARMERS GOT FULL VALUE,
AND THE INCREASE IN TRADE
WELL REPAID MERCHANTS FOR
THEIR OUTLAY.
COMPETITION AT CLONTARF.
"A Farmer Describes the Benefit Ac-
cruing From One Merchants
Work.
special to the Globe.

w OK
Special to the Globe.
FRAZEE. CITY, Mimi, Feb. 20.-The
advantages of competition in the wheat
market have been fully demonstrated
here during the past season. Last fall
a fat house, with a capacity of 5000
bushels, was built, and it handled twice
as much wheat as the line house, with
double the capacity. The farmers re-
ceived the full value for their wheat,
and much Of the grain that would have
otherwise been marketed at other
points was sold here. Here
tofore many Of the farmers,
who sold their grain in Frazee
City this year, had been in the habit
of shipping their wheat direct from
small station, Luce, and having their
groceries and other goods shipped d.
rect to them from the large cities. This
year they have not only sold their
wheat here, but they have bought their
goods from the local merchants.
In 1894 there was considerable direct
shipment of wheat by farmers. both at
FYazee City and at Luce, a station six
miles east Of here. M. M. Loucks, pro-
prietor Of the hotel, bought several
carloads on track and shipped them to
Duluth. This competition increased
the business Of the town, and, realizing
the benefits which would follow, Gunner
& Chiffon, general merchants, decided
to build a fiat house to handle wheat
from the crop of '95. They built their
house on a side hill, and 1t was SO con-
structed that they could spout the
wheat direct into the cars. They could
and did handle 800 bushels day, load
ing out two or three cars. The prices
were better by from / to 2 cents a BUSH
Ell here than at Perham or Detroit, and
as a consequence 10000 bushels were
marketed here that would otherwise
shipped direct from the sidetrack at
Luce.
Early in the season the difference be-
tween the markets here and at Duluth
was a fraction over 13 cents. AS 10
cents a bushel covers the freight and
all other charges between the shipper
and buyer at Duluth, the margin of
profit was over 8 cents bushel. There
was strong competition from the start,
and the margin was beaten down until
it was only a little more than a cent
a bushel. That has been the differ
ence upon which the grain has been
bought for over three months There
has not been a direct shipment by
farmer this season, and the only cars
loaded on track were the ones bought
by Mr.. Loucks, who has bought for
Gunner & Chiffon.
During the season there has been
marketed here an aggregate of 10000
bushels Of wheat OF this the indie
pendent house has bought and shipped
out $4,000 bushels and the line house,
Monarch, has taken in 10000 bushels.
Of this 10000 bushels has been shipped
out, and there still remains in the
warehouse 10000 bushels. The wheat
has nearly all been bought for No. 1
northern, and the average dockage has
been one pound. The market was so
much better than those at neighboring
towns, and they We're considered fair,
that farmers who had always hauled
their wheat elsewhere sold it here this
season. Among those who formerly
sold at Detroit but marketed their
grain at Frazee City this year are:
Gus Lindow. A. Steptoe, Fred CARING,
James Reed and George Sizsmith, Of
the town Of Lakeview.
The farmers in the town Of German
have heretofore shipped their wheat
direct from Luce or sold it at the
Monarch elevator there or at Perham.
They not only shipped their wheat di-
rect to the terminal markets, but
had their groceries and other goods
shipped direct to them from the large
cities Of this and other states. This
year they have hauled their wheat to
FraZee and sold it to one or the other
of the buyers here. Naturally they
preferred to sell to the Independent
buyer, and the fiat house was crowded
all the time Among the German town
farmers who have marketed their
wheat here this season are AL Schoves,
who lives within a mile of the station
of Luce; X. Johnson, Charles Vessel,
Fred Dyer and Charles Schultz. From
the opposite direction, in the town of
Evergreen, came H. H. Hauser, Peter
Schran, John Leindecker, George Mil
ton, s. L. A. Picket and Paul Larson.
Toad Lake township is tributary
either to Perham or Menagha, on the
Park Rapid branch Of the Great North
ern. but the farmers brought their
wheat here. Among them were Adam
Neske, Henry Drews, John Neske,
Frank Neske, August Anderson and
Charles Kruse.
Many farmers in the town of Can
dor, in Otter Tail county, who for the
past three years have been hauling
their wheat to Perham, came here this
year. There had been competition at
Hefnam, ana they hauled from four to
five miles further to reach that mar
ket. This year, however, they have
had better market close at home and
the grain has been sold here. The
wheat has held out on grades at the
terminals, and all that was bought
here for No. 1 northern has received
that grade under state inspection.
There were a few carloads Of damp
wheat that were taken in below No. /
northern, and that is the only wheat
that went below that grade
Mr.. Loucks, who has bought the
wheat for the Independent house, and
who bought on track in '94 said he
was convinced that it would pay the
merchants in any town where there
are three or more general stores to
build fiat house. They should then
employ a buyer and pay the farmers
within a cent a bushel Of the terminal
price of wheat, less freight commits
sions and other fixed charges. 1t not
only brings additional business to the
town, but creates a friendly feeling to-
wards the town and its citizens. He
had been aStoniShed at the amount Of
business the independent house had at
tracted to FraZee City. There is an
other advantage in having Independent
buyers, instead of the farmers having
to load and ship their wheat; that is,
that the farmers get the money for
each load as they deliver it. They
then spend some money each time they
come into town.