The Athena press. [volume] (Athena, Umatilla County, Or.) 18??-1942, 1896-09-25
A BIG WHEAT COMBINATION.
Agreement Entered INTO by the Buy
a.e - r1n-.oe~SsL u..Lo4


ers to Depressithe Market.
East Oregonian: Boring the past few
weeks the attention oi people interested
In wheat has been called to the seeming
lack Of competition among grain men
and the existence OF an apparent agree
ment, by which the element of COMPETE
tive buying can be kept out of the grain
operations, and the seasons crop pur
chased at a lower figure than the export
demand and the supply would warrant.
1t is, perhaps, useless to prevent such an
agreement, If made. for bringing its nat
ural result-prices below the legitimate
figures the market Will allow-but it will
at least be interesting reading matter.
For several weeks the East Oregonian
has been making qhiet canvass and has
found evidence that the various grain
buyers whose business center in Portland
have combined to 3epress the price OF
wheat and rob the producer. These are
harsh words to uses but the conditions
which such an agreement will produce,
are very harsh for the wheat raiser. 1t
will be observed that in Pendleton the
buying is almost entirely confined to the
two mills. Of course, some wheat goes
to other buyers, but almost none except
ing that which has been delivered, SUBJ
iect to chattel mortgage. The free buy
iug IL confined to Che mills. In former
seasons, the elevator companies and the
mills have all been in the market, and
the consequence was that Pendleton was
good market for the cereal.
These are facta--an agreement has
been entered into whereby the two mills
are given undisputed possession of the
Pendleton wheat market.
They buy now as much wheat as they
have capital to purchase. By reason OF
competition, the mills are enabled to buy
at lower prices than would prevail we're
the other buyers in the market. When
the mills have bought all they can take
with the capital they have. the other buy
ers will come in and take the balance.
Later in the milling season, the mills
will have ground oil the wheat they pur-
chased under the arrangement now in
force, and they will want some more
wheat Then the elevator companies
will come forwardiwith their wheat, sell
ii to the mills andEmake the profit on the
sale as compensation for keeping out of
the Pendleton market now.
Here is the wayIit balances, and each
party is benefited The mills can buy
now with no competition from thu ele-
vator companies. The mills purchase
only enough for almited period of flour
grinding. So after while the elevator
companies can buy wheat in other locali-
ties with no composition from the mills
and bring it here and sell it to them. It
is mutual exchange of courtesies and
profits. Regarding the existence of this
agreement, the East Oregonian is in pos
session Of information which permits it
to make the assertion as positive fact,
and with the knowledge that no one can
successfully contradict it,
+ So far, then, as the Pendleton end of
the arrangement Is concerned, 1t is set
tied fact that the combination has been
made and the market put in condition so
the wheat offered can be bought advan-
tageously by the local mills. So far as
concerns the outside features and the eff
feet OF the combination on other market
points, the evidence, in the opinion of
several gentlemen of high standing who
were coneulted by the East Oregonian on
the subject is that the most Of the buy.
ing companies are in the agreement and
will attempt to deprees the season g
market prices byavoiding competition.
Evidence has been found that goes to
prove this true The effect will be ap-
parent to every producer OF grain, and
lack of desire for wheat and seeming dis
inclination to operate on the market will
find full explanation in the fact that
Northern Pacific coast market is in the
hands of combination which has for ite
object the still further depression Of q
market which Aow barely affords the
producer the expenses of raising the
wheat.