The farmer and mechanic. [volume] (Raleigh, N.C.) 18??-19??, 1902-08-12
MILLIONS IN The
DIXIE OIL MILLS
Their Rapid Growth and Very
Heavy Profits.
SIX DOLLARS PER TON
Farmer. should Receive About Thirty
Cents Per Bushel.
THEY CAM CONTROL THE PRICE OF SEED
The Io.aI Independent 0iI Mills Can and Will
Pay Just as Much for the Seed as
The agents of the
Trust,

'iNo
.-.,,t. Jordan in Atlanta Journal.)
-..r. IL. no other single industry in
....n which is developing more
..,. than that of the oil milling bust
From an infant industry of 80
400 it has grown until now hun
.. .r millions of dollars are invested
....au seed oil mill plants all over
..u,r Atlantic and Gulf States. The
".. .".y.lopment of this business is
r-... .au to the fact that it is a pay
,..,-. TO those who have invested
.a.r m.I.oas in it. From a few small
.r.n- which were erected in the 10's
and oa.rutcd as independent concerns
.h. business has grown until now we
have the cotton seed oil trust with its
.,irr..r- of capital controlling and oper-
.,frr I.rge numbers of mills under the
mar..emcut just the same as the steel
.rust "m,at' trust and similar trusts
.f HE. character. While the oil trusts
haze. been buying up large numbers of
.mau mills during the last few years,
the small local INDEPENDENT mills con-
-nr. 10 tee built and the promoters of
all thrs. small or large industries con-
,rr. to- make money. The business is
Estimating one because the dividends
aye usually satisfactory and the inves-
tors are coutented and happy. During
rhs mast seasons, the oil mills netted
POSSIBLY the largest dividends ever be-
fore realized in the business. The reason
for this was based upon the fact that
The margin of difference between the
purchase price of the raw seed and the
sale Of the manufactured products was
sufficiently wide to realize to the manu-
t|acturcrs an unusually large profit, run-
ming on an average from Sc to $40 net
profit per ton. The price of seed was
low and the price of oil, meal and hulls
high The cost of manufacture remain
ing the same as in past years.
As promised to our correspondent from
Camaa in the Inquiry Department Of the
last issue. we will now undertake to
cover this question fully, that the farm
ers who have seed to sell m q be fully
posted on the situation and know the
true value of their seed and how to
uset the prices of the oil mill people
who come into the market for their seed.
II q farmer knows nothing of these
things. it is impossible for him to arrive
at any proper conclusion regarding the
value of his seed to the mill and to him
self.
BI-PEODUCTS CT COTTON SEED.
The urice of cotton seed set by the
mills is largely based upon the market
rrlee and demand for oil, In order to de-
tegm.uc the value of a ton of cotton seed
TO an oil mill therefore we must know
what the by-products of q ton of seed
are and the total value of the same.
I"ductinE from that the price paid for
The tom of seed and the cost of manu-
'aeture We can easily arrive at the profit
OF loss to the mill in working a ton of
seed. The by-products of a ton of cot
ton seeds are as follows: 40 gallons of
oil. 1o pounds Of meal and 1000 pounds
Of hI.I=. I~intcrs, etc.
10 The atlanta Journal of August Cd
We find the local market for these by
L"fo3uo--. f. o. b. ears at the mill, adver-
uso4 AS follows: Oil 80 cents per gallon,
meal >-l per ton and hulls, loose, $6
l'T tom. Applying these prices to the
ed"ront Yields of a ton of seed We have
'Ao following:
~ gallons oil at .S1t.o0
+-s pounds meal at 81. 20........... so
-'V pounds hulIs at 0c............ 80
Total value .$25.7O
The price offered for seed is $1i per
.- or ~ cents per bushcI. This would
''Fr - margin of difference of $l1.70 per
.. 1.0"oon the cost of the seed and the
'.'.as Price OF the manufactured pro-
"0t Of this difference of $11.7O the mills
.t.. HI- ff. Frai.I+ I, +ho CnCI no
.'.|i"2 point to mill and the cost of
."o'|a'lpro, and whatever balance is
''. "Nl go to the net profit of the mill
... business. The average rate of
-''-al on a. ton Of seed from shipping
'o "lil is estimated at $50. AMI
"''".- -" cost of manufacture is 81
.''. OF course where seed are de-
,'..t| 'o In" mill from wagons the
m.N". Us saved. We have here tho total
.-@s Oh manufacture including freight,
~, 10 s,-3o per ton. These are out
.-'.'s some mills working the seed
'.. '.a" 81 per ton.
'" deduct the $3.50 cost of freight and
".".ltra from $11.7O the net differ
tween the original cost of tho
'.. I'D" value Of the ~by-products al
. prices and we get the net omunt
--. I"F ton, which should go to the
Tho mill on the business. II
MOULD work 5000 tons in one sea
r. ''' nearly all of them do that, the
@ '.'.' o" this basis for the seasons
1l. womb amount to, in round mum
I'm. .|"HJ9. This has been abou
,. ."-' profit to the mills the pas
I-.r... winch as stated above, wa:
mrr. 'h' most profitable season OF