The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1901-11-12
Freight Was So Scarce that Grain
Was Carried to Europe in Vessels
at a Nominal Rate.
FLOUR INDUSTRY SUFFERED
BECAUSE FOREIGNERS GOT WHEAT
CHEAP ENOUGH TO GRIND.
Conditions at Observation-Disclosures to
Export Flour Than the I'm
ground Cereal.
staff Correspondence OF the Journal.


MINNEAPOLIS, Mimi, Nov. IA very
curious thing happened to the flour export
ing trade this summer. 1t was caused by
the steel strike. 1t would be very difficult
indeed for business man to discover on
his own account the relation between a
steel strike and flour shipments A few
months ago 1t would have been just as hard
a problem for the -four merchant 1t came
about something after this fashion: When
the strike in the various branches of the
steel industry had progressed few weeks
the production fell off, Exports of heavy
steel products ceased. Steel is taken to
Europe at a very low rate, sometimes even
for nothing, the big freighters requiring the
heavy freight for ballast. When there was
no longer any offering of steel and iron for
ocean shipping the vessels were in a bad
way.
The happy solution was to take wheat
for ballast instead of iron and steel. Wheat
is not so heavy and therefore not so salts
factory as ballast, but in pinch it would
do, and did do. Thousands and thousands
of tons of wheat were carried at a nominal
rate. Very often the grain was carried for
nothing, and so greedy were agents for
cargoes that they stood ready to paw
premiums for tonnage. One ship sailed ont
of Boston with hold full of wheat and
a few weeks later IT sailed back with the
same wheat to the same port The owners
were afraid it would be impossible to get
wheat for ballast in Boston. With that
same wheat that ship has crossed the ocean
four times and is now on the road to Liver
pool 1t Is quite likely that the owners are
paying something for the use of the wheat
as interest charges and insurance tariffs
cannot be picked up on the ocean.
The result of this scarcity of freight was
an unusually large summer and fall ship
ment Of wheat TO Europe. This gave the
British millers all the grain they could
American flour in the English markets Re
fore the strike the American millers never
dreamed that their export trade would be
affected by the idle mills, but they proved
a most serious matter.
EXPORTS FOR NINE MONTHS.
For the nine months of this year ending
Sept 30 the exports of wheat from the
United States amount to 10000, 900 bushels.
For the same period last year the exports
were 6OOo0.OO0 bushels. For the same nine
months of this year the exports or wheat
-four were Il 4SO6,OOO barrels. and for the first
nine months of last year the flour exports
were Il. .S63 900 barrels.
Ii Is to be noticed that there has been n
decided gain in the expectation of grain
but only a slight increase in the foreign
flour trade. This is mainly tc be accounted
for by the condition of the foreign rates
In fact, freight rates play an important
part in the flour export trade. Very fire.
quently, for reasons good with transporta-
tlon agents. -four is Disseminated against
Wheat at times Is a little more desirable az
freight When ocean freighting is light
and cargoes are in demand -four has a good
showing and the export business booms ac-
cordingly. IL the freight runs up a little
above grain the British miller can grind
American wheat and furnish the flour at a
lower rate than IL can be sent across the
ocean.
IL would be much better for America if
the 4OOO0 900 bushels Of wheat which have
been sent across oceans this year had been
shipped I'm the form of flour instead OF
grain. First there is the manufacturer
profit 1t is better for US that this go 10 an