St. Paul daily globe., 1896-03-04
WHEAT PRICES WERE LOW
MANY FARMERS MADE MONEY BY
HAULING THEIR WHEAT TO
OTHER POINTS.
FAULT FOUND WITH GRADING.
pendent-A Fight I'm Which
Farmers Gained.
Special to the Globe.

Heretofore Morris has been one of the
fairest markets in Western Minnesota,
but last fall, and until an independent
buyer came, about the 1st of December,
it was the poorest in this section of the
state. There was some sort of an un-
derstanding between the owners Of the
elevators that kept the price paid for
wheat below that of the neighboring
towns Whether or not the under
standing was in the nature of a pool,
it is impossible to ascertain, but there
appeared to have been something of
that nature in force. That there was
no competition until the independent
buyer put in an appearance is unques-
toned; neither can there be any excuse
for lower prices here than at other
towns where the freight rate to the
terminal markets is the same.
Morris is reached by two railroads,
the Northern Pacific and the Great
Northern, and the competing towns
have only one road each. The freight
rate from Morris is IL cents per hum
dred, or 7.2 cents a bushel, making the
cost Of handling, inspecting, weighing
and insuring less than rs cents a
bushel. AS the margin between prices
at Morris and Minneapolis, before there
was competition, was II cents, the ele-
vators had 914 cents to pay handling
charges and profits. This averaged 2
cents more than the difference that was
maintained between the markets at
Donnelly, Chokio, Hancock, Cyrus,
Farwell and Hoffman and Minneapolis.
There was the usual result, that a
great majority of the farmers who did
wheat to the other towns and saved
from to cents a bushel by the opera
ton. Many of them claimed to have
saved another cent on the dockage,
which was very heavy here, while at
the other towns it was considered fair.
There was complaint Of the grades at
Morris, and farmers claimed that they
often received one grade higher at the
other towns than here. Taking all
things into consideration, the farmers
who sold their wheat at Morris lost, on
an average, cents bushel because
the market was controlled instead OF
being free. AS there had been mar
keted here, before there was competi-
mated loss was $4,000.
There are four houses here, one line
and three independent The line house
is operated by the Interstate Grain
company, and the independent houses
are owned by S. Stewart and Wells,
Pearce & Co. Mr.. Stewart has two
houses one on the Great Northern and
the other on the Northern Pacific. He
has only been shipping from the house
on the Northern Pacific, as there has
been falling out between the Great
Northern and Mr.. Stewart. This prac-
tically makes the number of houses
three, and places them on an equal foot
ing, as far as the public can learn. The
prices, grades and dockages were equal,
and that was all the public had to judge
from. These buyers, in past years, had
competed for the grain and paid fair
prices for it. Then the Morris market
was the best one for miles around.
This year they made no effort to Sc
cure the wheat, but appeared to be as
we'll satisfied when it was sold at one
OF the other houses. Now the market
at Morris is the worst for miles around
The elevator men were the only ones in
this part of the country who were con-
tented. The farmers were dissatisfied
with the market at Morris and hauled
their wheat to other towns. This hit
the business men, and hit them hard
for they had purchased heavy stocks Of
goods in anticipation of heavy busi-
ness when the crop was harvested and
marketed. After suffering for three
months or more they offered induce
ments to Neill Mclaughlin, who was
buying wheat on his own account at
ChOkio, twelve miles west Of here He
came to Morris the forepart of
December and used part of
the warehouse of M. B. Lord &
Co., machinery Dealers as a storehouse
for wheat. AS soon as he began to pay
a cent above the local price for wheat
the other three buyers advanced their
prices a cent above his. making an ad-
vance Of cents. The elevator men
then came out upon the street and at
tempted to induce the farmers to sell
their wheat to the elevators instead of
disposing of 1t to Mclaughlin. This
was something new, for they had not
solicited the wheat earlier in the sea-
son. Now it was different, for there
was a stranger in the camp, and he
must not be allowed to trespass upon
heir preserves. The competition raised
the price a cent higher part of the
time ,and as soon as the farmers learned
that the market had been opened up at
Morris they came here with their grain
instead of going to the smaller and
mere distant towns.
This state of affairs continued until
late in January, when Mr.. Mclaughlin
was called to his home at Green Isle,
when the price was dropped two cents
a bushel The change was made the
day after Mclaughlin left and by all
three houses. Many farmers are still
holding their wheat awaiting the re-
turn of Mclaughlin and some of them
hauled grain here after he had gone
They would not sell to the other
houses, but left it in the warehouse
used by Mclaughlin and will wait for
their money until he returns. There Is
one instance where farmer saved two
grades by selling his wheat to Nc
terms offered by the elevators 1t was
James McCarl. who hauled carload of
wheat and sold it to Mclaughlin for
No. northern. The elevators had re-
luctantly offered to take 1t in as reject
ed. When the wheat reached Mime
apolis it was graded No. 2 northern by
the state inspection and Mclaughlin
made a profit on the deal. There are
scores of instances where farmers
gained a grade by selling at other
towns or to Mclaughlin, but this is the
only one where two grades were saved.
A fair sample of the way the three
bought wheat before Nc
Laughlin came is the following: J. d.
Kyser, six miles west of Morris.
brought in his wheat, which was grad
ed No. 1 northern, docked two pounds.
and the price paid was IL cents below
the Minneapolis market. Mr.. Kyser
said the wheat was clean and that he
was sure that one pound dockage
would have been excessive The farm
ers In the immediate vicinity of Nor
ris were all in the same boat with Mr..
Kyser and all who sold wheat early in
the season paid heavy toll to the ele-
The farmers are beginning to under
vators. III,