The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1901-07-02
UTAH MILLERS
FORM COMBINE
Organization to Control Out
put Of Flour.
ALL MILLS IN STATE
MAY BE ABSORBED
Step That May Lead to 0rgani-
ZatiOn of Trust.

The combination to regulate and con-
troll the output of Hour of the mills of
Utah, and to regulate the prices of
wheat and flour, seems at last within
reach and unless there is a hitch with
IN the next week, an organization viii
be incorporated under the laws Of the
state to carry these objects into effect.
The corporation viii include a number
of such Salt Lake business men as ".
5 Mccormick, w. s. Hills, Moses
Thatcher W. w. Ritter and every man
who is interested heavily in the milling
business. 1t viii not be heavily cap
italized. as it is figured that not a very
large amount Of capital viii be needed
to carry out the object in view. Ii is
expected that every miller OF import
ance in the state viii be included in the
combinations
The men at the head of this move
ment scout the idea of a trust or mo-
nOpoly, but il is apparently formed on
the lines of the great combinations that
are now controlling every important
branch of industry IN the country. The
plan, IN brief. is that this cOmbina-
ton, whatever II may be called, viii
buy all the products Of the Titan mills
and act as selling agent to the con-
sumner, thereby establishing anu main
tanning uniform prices 1Or flour every
where, except as prices are affected by
freight rates Every miller who goes
into the combine must agree I'd Keep
his output within certain prescribed
limits; he must agree TO turn the entire
product OF his mlH over 40 The COM
binatiOn, so that there can be no posi-
bic rate-cutting. Ultimately L. is the
intention to fix the price 10 De Caid
the farmer for his wheat also, AMI ii is
argued that the farmer viii bs the
chief beneficiary, as the combination
IS bound 20 increase the price OF wheat
ard lOlG y at uniform level
But the men at the head of the COM
binatiOn have still greater things in
view. While they viii not say that
they have in mind the purchase OF the
mills of the state, they do say thar they
VIII ultimately build up one great nil
that viii supply the demand, and anus
do away with the small mills. They
argue that IN this way there VIII be "A
great saving Of expense, while the
grade OF -four put upon the market VIII
bss gnore uniform, and the output can
thus be more readily controlled
VIII Open New Markets.
Another and very important object
of the leaders in the combination is to
secure a profitable outlet for the sur
Plus flour aud wheat that now drugs
the market. BY systematic WORK, e is
argued that great market Tor the
product of the Utah -four mills can be
worked up in the AsiaJic countries that
D
products and manufactured goods. To
accomplish this a man would have 10
visit those countries and introduce the
flour and work up the trade This IL IS
argued, could be done by the corpora
ton. but il cannot be done by the in
dividual milIers working alone. The
corporation could afford to keep men
out in different directions, and they
would be working for all the millers OF
/ Utah by working for the corporation.
One of the leaders IN the movement
was asked last evening what would De
done as Co competition coming in from
the outside in the way of wheat and
flour.
THE prices would have to be so reg
ulated,' was the reply, that nothing
Of the kind could be shipped into the
state Good business sense would have
/ to be exercised in this matter 1t would
not do TO make the same mistake that
was made by the Dairymen's assOcia-
ton last spring, when the price OF
/ Utah creamery butter was hxed so
high that carload after carload of east
ern butter was shipped into the state
No. the prices Of wheat and flour would
have to be so adjusted as 30 maintain
the best possible prices Tor the Utah
millers and farmers and at the same
! time protect them from outside compe-
tition. This could be done only by CO.
operation such as that now con
! templated-
This same gentleman was asked as
/ to how a uniform grade of flour would
be maintained. He replied:
If any mill produced a grade OF hour
that was not UP TO the standard It
would be thrown back upon its hands,
and the organization would refuse TO
! handle the product Of that min til II
was brought up TO the standard Ihere
! are three standard grades Ct Hour IA
I Utah-the high patent, the straight
/ grade and the low grade. They are
( easily distinguished and the difference
! is easily determined. If an outside Gus
/ toner wished the -four from any par
/ ffcular mill. say dealer in Cheyenne,
/ if ne wished Salt Lake Hour, IL WouIo
/ he sent him and the freight from SAT-
! Lake charged; if he ordered Logan
/ flour. it would be sent and the freight
( from Logan charged, so that in that re-
/ spect all the mills of the state would be
/ placed on the same footing.
Middlemen Must Go.
/ As to what was to become Of the
middleman if the organization were
/ perfected. this man said:
! s.Of course. ultimately, the middle
I man would be dispensed with; the ten
{ dency of the day is to bring the man
ufacturer and the consumer together
/ The organization would take the entire
| OUTPUT of the mills and act as t-lstllD-
/ uting agent to the consumers so tn1e
]
| man to do so far as this commodity is
] concerned. The combination would also
/ lead. ultimately, to the dismanthng OF
/ many of the smaller and least prOut-
/ able mills and the establishment OF one
large mill at some central point Ike
salt Lake fitted up with the latest ana
best machinery. A great mixing plant
would also, naturally. grow out Of tnls,
/ so that if there were a local demand
/ for the hard wheat -four Of Minnesota
/ it could be furnished; or any kinc 81
mixture could be furnished.
This combination has been under
I way for six months and is the out
1 growth of the many previous enorts
! 10 bring the mills of the state together
I All the details of the plan have been
/ submitted to the millers OF the state
/ together with Il form Of the agreement
that is to be entered into BY the various
/ nailIers who are expected to 60 into the
! combination. The combination WI NOT
be made unless n1illers representing 80
per cent of the total output of the state
agree to go into it. The papers have
all been made out and are ready Tor
fling with Secretary Of state ham
+ rnend. and the leaders in the enter
prise expect 60 be fully incorporated
and ready for. business TUESDAY OF
| Wednesday OF next week.