The Minneapolis journal., 1902-06-21
TIE MINNEAPOLIS JOURNAE.
NORTHWESTERN BUSINESS GOSSIP
Six Months of Record Breaking Results in Wholesale
Tradet-No Sign That the Great Northern Will Reduce
Grain Rates-Smaller Fire Insurance Companies In
crease Their Busness-Trafic Men by the Ears.

Six months lof the present, calendar
year are almost finished and nothing has
occurred to- check the record-breaking
pace with which northwestern wholesale
trade rounded the, turn at the first quar-
ter. There have been boom years in mort n
west trade, but none to show the results
now promised for 1902 Retail merchants
are buying steadily and orders placed for
fall delivery show. they expect an i'm
mense business While it is acknowledged
that July can kill the bright est crop pros
poets that may be presented in, June,
there Is among wholesalers general
| feeling that the grain crop OF the, north
| west has by a generously moist soil and
cool nights been fortified against any
drouth that may come In July far better
that the grain crop Of the average year.
! This opinion has had much to do In
shaping the policy Of credit men who,
while. not yet ready to ''let down the
bars, = are allowing the better class of
!, dealers more latitude In their! accounts
than Is usual in June.
4 y If this is not one of the most profit
4 able years in merchandise Wholesaling
Ethat the northwest has seen there will be
I much disappointment among men gen
orally regarded the best judges of condi-
tions in the twin cities and minor job
| 'bing points in the northwest. There were
few jobbing concerns in this section OF the
country which at the close of last years
business could not make the best showing
| in profits and volume Of business in their
! history. General conditions throughout
! the country are holding true this year
and the crops have a wonderfully good
! start. A prominent credit man who keeps
/ his finger closer to the pulse of mort b.
/ west trade conditions than most men In
i that line Of business, says that with but
\ an ordinary crop the northwestern whole
I sale houses will show a. record breaking
year, -. ~. r,
4 There never has been time when the
retail merchants of this section Of the
| United States were as near financial inde-
/ pendenee as atspresent.r They made money
in 1901, and for the most part paid all
old debts. Old accounts which had been
| on their books long enough to be out
l lawed were collected and their bank ac-
! counts at the aend of the year were de-
cidedly satisfactory. Some of their prof
it's of last year have been invested in new
buildings. Others will figure in this years
| discounts So. - t.-..--..',' -,
| They are more han ordinarily confident
on trade possibilities for this year and
! the first six months business of the
wholesale houses forcibly illustrates it,
THE PROSPECT IN GRAIN. RATES
i | As far as can be learned James J. Fill
i left no Instructions for the Great North
i .ern officials to reduce grain rates pre-
4 lvious to his departure for Labrador. Mr..
Hill is due to return to St. Paul about
I Aug. | and If he intends to reduce rates
| there will be- plenty Of time before the
4 new crop begins to move. When mer-
chandfse rates Were reduced some months
i ago, Mr.. HUI s4iqll5 made made statements which
:, might be <coLStrned that he intended: to
! reduce grain rates M this summer - He said
i !tion at. that time. as most Of the wheat
was then out Of the farmers hands. 1t is
known that sthe proposition has been un-
der, consideration at the Great Northern
/ offices for some weeks but what informa-
tion is obtainable indicates that the rates
E:Wil1 not be disturbed The explanation
| offered a few weeks ago that the advance
in wages all along the system as we'll as
increased costsofHaateri alAnigIst defer the
i .reduetion in grain rates, still holds good.
The policy Of the Great Northern in this
4 particular WillSof course, be the policy
Eof the ENorthernxP Pacific, and none Of the
bother roads * ntering The wheat fields are
inclined toward grain rate I reduction.
ksIhs 500 has JUST, reached that point where
Fits Searnings on grain are Beginning to
show satisfa ctoEss9 figures and athat there
is any particulaf Nyearning on the part
OF It's management to reduce grain rates
is MOTTO be expected. gzt The entire. situa-
tion is in the hands OF one man. James
]. Hill. 'If he takes the notion when
he returns from Labrador, rates may drop.
But unquestionably such action would be
a surprise to. .1nen who believe they are
close to, Great $Northern's president. 1t
I is reported. .tfat Mr.. Hill said some weeks
ago that When a railroad has earned
per- cent on its!stock and a reasonable al
! 1nuy oy91n$ fNyEf fhn5y, Sr%a @F -
erty 1t is time Ito reduce rates. The Great
Northern will probably show good sur
plus after paving regular dividends this
year. .4ysya &=%n#& - -.s<s O.. ~
There is: :one$Hne Of the Great Northern
system on which hsall hands concede that a
reasonable reduction in rates is. due to
make the grain. rates sof the system en-
tirely consistent. On the Sioux Falls
line which branches from the main line
at Willmar and extends to Yankton, S. D.
with another. branch ending at O'Neill
Neb., grain rates would stand reason
able reduction This line is one Of the
lighting lines 'Spushed into the southwest
when the Milwaukee and North Western
systems began to reach out for choice ter
ritory in North. Dakota. 1t is generally
n understood in traffic circles that promi-
nent officials offthose two roads have re-
quested the Great Northern not to make
reductions in that direction. b They ex-
Il pain LRaL LnesreductlOnS- would mean lit
ftle>'to the Great Northern in Increased
2 traffic apd would completely upset the
existing rate situation on the Chicago
4 lines in avery large territory.
THE INSURANCE SITUATION
Recent advances in rates by the larger
fire insurance companies and the with
drawal of sixty companies from Mime.
sofa have given some of the smaller
northwestern companies an opportunity
to increase their business. Last year
was successful one for most Of the
small insurance companies which were
operated on strict business basis. One
northwestern company writing both hal
and fire insurance on a conservative plar
paid a good dividend, made magnificent
addition to surplus, and was placed sin "a
i condition generally where 1t could reach
out for more territory. This s but one
instance Of several The increase ir
rates has further assisted the work OF
these companies enabling them to gel
start in fields in which they were
strangers up to the first Of the year
!. There are fewer weak kneed farmers
!. mutual insurance companies doing busi-
ness in The northwest than any previous
year. Western, Canada will probably fall
4 heir to the efforts Of the farmers hail