The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1902-04-05
EXPORT WHEAT AND FLOUR RATES

T . r
Although the northwestern millers have
been able to prove to the satisfaction Of
western traffic men that export wheat
should be given an equal chance in the
rate sheet with export flour, the eastern
trunk lines have seen fit to reinstate the
old rate on -four and again seriously
handicap the millers in the foreign trade.
This means that the campaign of edu-
cation, begun about year ago by the
millers, which, 1t was thought, had been
brought to successful issue at meet
ing Of the Central Freight association in
Chicago, must now be carried east.
The millers have successfully met all
OF the old arguments which traffic men
have employed in their refusal to give
export -four the same rate as export
wheat. They have gone farther and
proven to the satisfaction of the western
railroads that as sound business propo-
sition -four for export should be carried
east at about the same rate as wheat for
export. Therefore the conclusion is
natural that the action of the eastern
lines is based on ignorance of the facts
and conditions surrounding the traffic and
dictated by old prejudices and theories
which traffic men of the west have cast
aside.
flour for export is not entitled to the
same rate as export wheat because flour
cannot be as proftably handled by the
roads as wheat; that flour cannot be
loaded to the full capacity of the cars as
wheat can be. Some traffic men have ar
gued that in case of wreck the salvage
on car of wheat, was much more than on
car of flour. The millers have recog-
nized that if these arguments were true
their demand for better treatment for
like.
In recent conferences between the mill
ers and western traffic men, the millers
clearly showed that flour for export could
be handled from mill to steamer at sea-
board at practically as low a cost as
wheat. In recent experiments it has
been found that the car has not been built
which cannot be loaded to its full capa-
city and ten percent additional with flour
for export.
Inc experience Of railway men is also
gradually reinforcing the argument made
by the millers that more can be realized
from wrecked load of -four than from a
wrecked load OF. grain. One of the lead
ing traffic men Of the northwest says that
the grain is usually SO scattered that it
cannot be saved while there is generally
a chance to gather up large percentage
of wrecked car of flour and send it back
to the mill for reconditioning. This has
been done in many cases and the results
are gradually educating the traffic men
out of the old prejudice on this point.
All this goes to show that export -four
will net the railroads as much revenue as
export wheat, and, for that reason, is en-
titled to practically the same rate.
With the shipment of grain there are no
other items of profit to be considered. The
roads have secured all the revenue incl
dent to the traffic when they collect the
freight bills at seaboard. But TO encour-
age the flour industry means that the
roads will not only haul the wheat yield
of the country east in it's manufactured
form, but will also secure a revenue from
the traffic in commodities connected with
the grinding of grain. More than that
they are building up the country and de-
veloping business for the future.
The policy of the eastern lines on flour
does not concern Minneapolis alone. 1t is
of interest to every community in the
country which manufactures, -four. West
ern railroads have already decided that
their best interests lie in encouraging the
shipment Of the manufactured product
They have wisely determined to cooper
ate with the millers. 1t is to be hoped
that the same cooperation can be secured
from the eastern lines
This is a great question affecting a
great industry. Cooperation of the trans
portation interests and the milling inter
ests Of the country will produce great re-
suits. All the -four America can make
will be wanted in foreign countries If the
rate to seaboard will allow American
-four to successfully compete There are
enough mills in the United States to grind
not only the maximum crop Of ZOO 000, 900
bushels, but 4O0,OOO,OO0 additional In
other words, the milling capacity of this
country exceeds one billion bushels Of
wheat. The railroads, therefore, are not
obliged to wait for the milling capacity
of the country to equal the wheat crop
before they get the traffic. Not only can
they make as good net revenue from ex-
port flour as from export. wheat, but they
are assured Of all the export wheat traffic
in the form of -four as soon as a favor
able rate will give our millers the oppor-
tunity to put new vigor into their efforts
for export trade.
There has been much ignorance of facts
and conditions in judging the relations
between export wheat and export -four
This is shown in the demolishing of old
theories by the experiments made by the
m1llers. Not long ago the Interstate COM
merce commission advanced the opinion
that the difference between the rate on
export wheat and export flour should be
in the neighborhood of 2 cents per hun
dred pounds. The western railroads. af-
ter obtaining new light, cut the difference
down to an Insignificant figure The prog
,ress which the millers make in educating
the traffic men of the east will be watched
with much interest. They are in the