The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1901-10-27
FLOUR TRUST
is ASSURED
includes All Utah and Southern
Idaho Mills.
PROMOTER is SAhGUlNE
NOW HAS sEvENTY-FIVE PER
CENT OF PLANTS.

The consolidation of the Touring
mills OF Utah and southern Idaho is
In fair way to become an assured
fact. according to the statements Of
Ambrose E, Mckenzie of Denver. who
is promoting the enterprise on behalf
of an eastern syndicate of capitalists
Nh Mckenzie has been in Ut4l 4
good portion of the time during the
past six weeks and in that time ne has
called upon most of the local milie1s
with the view Of interesting them in
the consolidation. He says that ne
now has control of IS per cent Of the
mills that he wishes to get. and is con-
fident of the success of his enterprise.
He was at the Kenyon last evening
on his return from the northerl part
of the state and Will leave here for
the east Monday evening.
MI Mckenzie was asked how ne was
getting along with the formation of his
Hour trust. and after giving his idea
of trusts in general. he discussed the
flour problem as follows:
Need of a Combine.
The general tendency of the public
is to oppose anything that has the ap-
pearance of a trust We have tax N
up the matter of the consolidation of
the mi ling interests of Utah and
southern Idaho as il stands separate
and distinct from the other sections of
the country. 1t is an established fact
that the business mas reached a point
beyond which it viii not yield a lusti-
fable profit on investment. This cCh-
dition IS due to individual strife In the
operation Of the mills: in the figh. for
trade and the establishment of indi-
vidual brands. Looking over the siiu-
alton it would seem to be a gross in
justice to recommend investment in
separate mills because Of the deraOral- /
fzed condition that exists So the ides
of he
the feeling that it would prove = BEN
eft TO the mill owners and to the hold
ers Of stock in the corporation. It
would also promote the industry in
such a way as to do justice to the rep
utation of state that desires to keep
pace with the progress of the country
in the development OF its natural re
sources.
Would Benefit Farmers.
cit has been said particularly by the
farming element that the incorporation
of the mills into a syndicate would be
n detriment to their interests. This
viii be clearly demonstrated to have
been a false conception of the intent
OF the incorporatOrs, they having had
suffi experience to justify them in
saying that they must offer sufficient
inducement to the producers of raw
material to enable them to develop the
highest quality possible in the product
1hey are interested in producing.
Therefore, the intention of this cor
p0ra-ion would be to offer inducements
TO the producers Of wheat, and thus
stimulate the milling industry by rails
ing the price to the highest possible
point for A. No. / article; in order that
the product of the mills would be of
such high quality that it would
stand at che very top as compared
with the products of the other states
IN the Union"
Mr. Mckenzie argued further that
the price of -four 50 that the profits
did not pay for the wear and tear on
the machinery. to say nothing Of the
interest or the investment; and this
naturally compelled each buyer of
wheat to force down the price of
wheat He said that the miIlers real
lie II Il this condition is a barrier TO
progress, and that so thoroughly con-
WINGED are they of the merits of the
consolidation proposition that many of
them desire to become part of the cor
poration, and he though that this
privilege would be granted. as it was
now under consideration by the under
writer's.
VIII Spend Million.
Mr.. Mckenzie stated that he had
control of IS per cent of the mills in
the state: that he had not called upon
all the lnillers yet. but that he would
do so, as re intended to slight none of
trem. H did not look for single
opponent to his proposition after it
was understood He said il was nor
the intention o. the corporation to shut
down the small mills, or any mills ex-
cept when the capacity went beyond
the power of consumption He said
also that the carrying out of the
scheme as outlined would necessitate
the expenditure of at least 81 900. 900.
and that strong effort would be made
TO secure an outlet to the Orient for
the surplus.