The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1902-01-25
FARM And ELEVATOR
Both Hit by New Tax Law Say
Grain Men.
FLOUR TRADE ALSO AFFECTED
Denied the Minnesota Farmer,
Says One.

The provision in the proposed tax law,
requiring all grain in terminal elevators
to be assessed at it's full value on April
! OF each year, is a matter OF vital 1mpor-
lance to the grain and flour trade or
Minneapolis, and, Indirectly, the producer
will be affected. This, at least, Is the
contention of the elevator and flour mill
men on the Minneapolis exchange. al
vices from Duluth are to the effect that
there is the same anxiety there over the
effect OF the proposed law. There are
those interested in the trade who think
there is no cause for worry, that affairs
will adjust themselves under the new ar
rangement as they have in the past and
that Minneapolis and Duluth will, in any
event, continue to hold their own as grain
terminal points. But the heavy interests
concerned take the other view of the case.
The effect of the proposed law, they say,
will be to put burden OF from 11a to 2
cents per bushel on the flour mill and ele-
Vator men at Minnesota terminal points
as against West Superior and Chicago,
and that the grain men, to protect them
selves, will have to transfer the burden
to the farmers, with the inevitable result
that wheat now shipped to Minneapolis
and Duluth for storage during the fall
and winter will go to Wisconsin and Chi
cago. where the law imposes no such re-
strictions as are proposed here.
Will Hit Flour Too.
The flour business in Minneapolis and
Duluth will be affected to the same ex-
tent as grain, it is said.
While the millers and grain men have
taken no steps as yet to get together for
concerted front to have this provision
Of the bill changed, it is expected that
they will do so within a few days. They
were not consulted by the commission
while the law was being framed, nor did
f11,r 1,@s,. o,,t, ,,1,~
to get their views before the commission.
What the Grain Men Say.
Here are few expressions of opinion
from prominent grain and -four mill men
on the effect of the new law:
Charles M. Harrngton-The proposed law
taxing grain in terminal elevators hits the
grain and -four business hard, and Indirectly
every grain raiser who ships to Minneapolis
and Duluth will be affected. 1t will dis
crimlnate against the two cities in favor Of
Chicago and West Superior to the extent Of
| at least cent and a half per bushel. 1t would
wipe out the present carrying charge between.
Minneapolis and Chicago and tend to drive
the business OF grain storage to these points.
The burden will really fall on the farmer.
Under the present system the carrying Of
huge stocks Of wheat in Minneapolis elevators
during the winter months keeps a large
| amount of whe at off the market during the
weeks following the harvesting of the crop
and holds the market steady. This is evil
denced by the fact that while the transport
taton rate between Minneapolis and Chicago
is from five TO six cents per bushe, there is
rarely q difference between the two markets
OF moro than three cents. The farmers are
the gamers fy the difference. Now wipe out
cur carrying charge and inevitably this con-
dition cannot continue The market at points
Of country delivery will be based on the full
poj1 oho tn Il >bo
terminal elevators now pay from 10000 to
$4,000 year in taxes credits, which is
grain in storage. We bear this Whole burden
ourselves, but increase it to the extent pro-
posed by the new law and the farmers will
| have to take their turn.
Views of President washburn.
| John Washburn, President Of the Chamber
p, of Commerce-The undoubteG effect of the
proposed law would be to kill the grain and
flour trade in Minneapolis and Duluth. If we
had foreseen this action. there would have
been no 5, 0O0,0 900 increase in the storage ca
pacity Of Minneapolis elevators this past
year.
+. B. Wells, of F. H. Peavey & Colt will
not hurt the elevator operators particularly,
because what extra expense is incurred on
account Of taxation will be regarded as fixed
| charge, just as are insurance and interest.
| The additional weight will fall on the pro-
Queer who sends his grain to the elevators,
| and who will be charged just that much more.
| incidentally the consumer may feel the addi-
tlonal expense of handling grain.
w. ]. Bettingen, President of the Independ-
ent Elevator Company-It is apparent where
Minneapolis would suffer- The grain now
! sent here for winter storage, like that hereto
! fore sent to Duluth, would be shipped to
West Superior
A Duluth Opinion.
Senator c. O: Baldwin of Duluth-The grain
| OF the northwest will inevitably &C to West
| Superior, and the inspection of the grain will
! be taken out Of the hands Of Minnesota and
placed in control Of Wisconsin, The farmers
| of the northwest will then be at the mercy
| Of the inspectors of another state The new
| law will give West Superior the advantage of
| Duluth by at least "a cents per bushel, and
center the grain storage business in that city.
FLAX INTERESTED, TOO