St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1896-02-05
PRICES OF WHEAT VARIED
WITH THE QUANTITY OF THE CE-
REAL IN THE FARMERS ELE-
VATOR.
HOW FARMERS ARE SQUEEZED.
Instances of Strange Grading-Why
Wheat Growers Hauled Grain
to Fertile.
Special to the Globe.

M INIOSf1, MILL, L GU. Il iAS
tactics of the wheat barons were fully
exemplified at this town last fall. They
bought very little wheat until the
blockade came, and when no cars were
available for track shipment, or to
carry the wheat in the line, elevators
paid whatever price they chose for
the grain the producers were compelled
to sell in order to obtain money to
meet their more pressing obligations.
The farmers south and west of McIn-
tosh refused to submit to the extortion,
and hauled their wheat to Fertile, on
the Northern Pacific twice as far from
their homes as their regular market
at this town. Before the blockade the
farmers elevator bought the bulk OF
the wheat, paying nearly all there was
in it, and there was no complaint. AS
soon as the supply of cars ceased the
farmers house filled UP and the line
houses had the market at their mercy.
They made the most of their oppor-
tunity and not only knocked the wheat
down a grade all along the line, but
spread the margin between the prices
of the same grades at local and ter
minal points from 1 to cents bushel.
In this way they were buying on a
margin of from 4 to cents a bushel,
and the farmers lost from to cents
a bushel over and above the legitimate
difference, between local and terminal
markets, made up Of freight and hand
ling charges. 1t is estimated that the
loss to the farmers during the block
ade was not less than $1,000. During
l. f,,I1
and there was no track shipping, so
the two line houses and the indepen-
dent house owned by Andrews & Gage
were the only ones that could take in
wheat. When cars were obtained there
was an advance IN the price because
the farmers buyer, Ing. Larson, al
ways paid the top figure. While this
condition existed the other three houses
allowed the grain to go to him until
his house was again filled, then they
would again have things all their own
way, and the unfortunate farmer who
brought his wheat to market at that
time had no alternative, but must &C
cept the pittance dotted out to him by
the agents of the lords Of the wheat
market. Farmers living to the south
and-~west escaped the extortion by
hauling their. wheat TO Fertile, where
the market was
ALWAYS OPEN AND FAIR,
but those living north and east of the
town were. unable to obtain relief, as
the distance was to great to haul, and
the markets on either side of Mcintosh,
at Erskine and Fosston, were in the
same condition as that at Mcintosh.
Many Of those who sold to the line
houses during the blockade obtained
two grades advance for the same
wheat at the farmers. elevator when
1t was receiving. In those instances
they lost or cents on every bushel
sold, and they only paid this tribute
because there was absolutely no way
by which they could avoid doing so.
Since the blockade has been raised the
farmers house. has = bought more
wheat than the other three houses
combined, although the other COM
Vanies are paying within a cent or two
of the farmers price. On Griday and
Saturday of last week the farmers
house took in over 5000 bushels of
wheat, and from all that your cor
respondent could learn, the other three
houses combined did not buy more
than 1000 bushels on those two days,
ana that is conservative figure as
many estimates placed the amount at
half that number of bushels
The success of the farmers eleva-
tor in keeping the market fair when it
hess on such close margin, is not the
only benefit the farmers have enjoyed,
for 1t has more than paid for itself
during the four years it has been in
operation. and now has over $500 sur
plus deposited in the bank. The cost of
the plant when it was built, in 1892,
was $1,000, and that has been wiped
out, besides paying all the operating
expenses, although an average Of two
cents bushel over the price paid by
the other houses has been paid on
every bushel of wheat that has been
bought and shipped. The season of go
'95, although there was a, light crop.
the house cleared $500, and at the COM
mencement of the present season there
was a debt of 5000 standing against
the property. This has been wiped out,
and there Is already a surplus of $500
in cash on hand, and the indications
are that the net profit on the business
done during the season of 1886 will
not be less than $1,000. Up to Feb. 1
there had been handled through this
house 10000 bushels Of wheat, although
the capacity of the elevator is only
15,000bushels. 1t is estimated that $50
900 bushels of wheat have been market
ed here this season, and this leaves
but 100000 to have been handled by the
other three houses, which have a COM
bined capacity of $4,000 bushels These
the farmers was on the wheat included
in the 100000 bought by the two line
houses and
THEIR RUNNING MATE,
the Andrews & Gage elevator When
your correspondent reached this town
on Saturday there were at least a doz-
en- loads of wheat waiting to unload
at the farmers house, and not single
load at any of the other houses. There
was a continual stream Of teams during
the day, and occasionally one, probably
one in ten, would drive to a line house.
This is said to be the invariable rule
Eince the farmers house has been
opened.
The present officers of the Farmers
Elevator company are o. J. Matson,
president; Stem Hofts, vice president;
c. G. Ostby, secretary; Ole Stoorn,
treasurer: directors, B. o. Narvison.
Hon. ]. D. Knuteson, Andrew Trovan-
ton, John Carlson and o. P. Synness.
The wheat buyer for the company is
elected each year, and Inglebret Larson
has been chosen to that position at
each succeeding election. The wheat
of the stockholders Is handled, that is,
weighed, elevated and loaded into cars,
for half q cent, "a bushel and the margin
on wheat bought is about IL cents be-
low the price at the terminal market.
From this there must be deducted:
freight, 10 cents; commission for SELL
ing at terminal market, " cent; in
surance, inspection and weighing, IA
cent, making total of 10A Gets, and
leaving " cents for handling charges
This has proven ample, as the company
has shown by the results Of its former
years of business.
Ole Stoorn, treasurer Of the company,
said the first year the farmers house