The Anderson intelligencer. [volume] (Anderson Court House, S.C.) 1860-1914, 1902-08-20
THE OIL MILL INDUSTRY.
Hon. TIarvie Jordan, Of Georgia, in Atlanta
journal.

The. is no other single industry in
the South which is developing more
rapidly than that of the oil milling
business. From an infant industry
Of 30 years ago, it has grown until
now hundreds Of millions Of dollars
are invested in cotton seed oil mill
plants all over the South Atlantic and
Gulf States. The rapid development
of this business is largely due to the
fact that it is paying industry to
those who have invested their millions
in it. From few small plants which
were erected in the 50's and operated
as independent concerns the business
has grown until now we have the cot
ton seed oil trust with its millions Of
capital controlling and operating large
numbers Of mills under the manage
ment just the same as the steel trust,
meat trust and similar trusts of like
character. While the oil trusts have
been buying up large numbers Of small
mills during the last few years, the
small local Independent mills contin-
ue to be built and the promoters of all
these small or large industries contin-
ue to make money. The business is q
fascinating one because the dividends
are usually satisfactory and the inves-
tors are contented and happy. Dur
ing the past seasons, the oil mills net
ted possibly the largest dividends ever
before realized in tie business. The
reason for this was based upon the
fact that the margin of difference be-
tween the purchase price Of the raw
seed and the sale of the manufactured
products was sufficiently wide to real
ice to the man ufacturers an unusually
large profit, running on an average
from $6 to $40 net profit per ton. The
price Of seed waslow and the price Of
oil, meal and hulls high. The cost Of
manufacture remaining the same as in
past years.
AS promised to our correspondent
from Camak in the Inquiry Depart
ment of the last issue, we will now
undertake to cover this question: fully,
that the farmers who have seed to sell
may be fully posted on the situation
and know the true value of their seed
and how to meet the prices of the oil
mill people who come into the market
for their seed. If farmor knows
nothing Of these things, it is impossi-
BILE for him to arrive at any proper con-
clusion regarding the value Of his seed
to the mill and to himself.
BY-pRoDUcTS OF COTTON SEED.
The price Of cotton seed set by the
mills is largely based upon the market
price and demandfor oil. In order to
determine the value of ton Of cotton
seed to an oil mill therefore we must
know what the by-products of a ton of
seed are and the total value of the
same. Deducting from that the price
paid ecr the tor Of seed aud the cos.
Of manufacture We can easily arrive at
the profit or loss to the mill in work
ing ton Of seed. The by.produots
Of ton of cotton seeds arc as follows:
40 gallons Of oil, 700 pounds Of neal
and l 1000 pounds Of hulls, linters,
etc.
In The Atlanta Journal of August
I'd we find the local market for these
by-products, {. OBJ. cars at the mill,
advertised as follows Oil 35 cents
per gallon, meal $24 per ton and hulls,
loose, s6 per ton. Applying these
prices to the different yields Of ton
Of seed we have the following:
40 gallons oil at 35c. $l4 90
725 pounds meal at $1.20. 49,. $40
900 pounds hulls at 30c. 800
Total value. $25. 20
The price offered for seed is sl4 per
ton or Il cents per bushel. This
would leave n margin Of difference Of
$11.70 per ton between the cost of the
seed and the selling price Of the manu-
factured products.
Out of this di ference of $ll.7O the
mills must pay the freight on the seed
from shipping point to mill and the
cost Of manufacture, and whatever bal
ance is left will go to the net profit of
the mill on the business. The aver
age rate Of freight on ton Of seed
from shipping poia; to mill is esiima-
ted at $3.50, and the average cost of
manufacture is $4per ton. Ofcourse
where seed are delivered to the mill
from wagons the freight is saved. We
have here the total cost Of manufac-
ture including freight, amounts to
$5. SO per ton. These are outside fig
ures, some mills working the seed for
less than 81 per ton.
Now deduct the S5. SO cost of freight