The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1902-05-10
KANsAs sHours HURRAH.

The prospect that the railroads win
throw off the differential in the export
rate on flour in favor of wheat is ex-
tremely gratifying to the millers of the
west, and it is to be hoped that they
viii not be disappointed. It will mean
a greatly increased volume of business
for American mills, especially those of
Kansas. and profits will probably be
more than proportionately increased.
With a transportation rate to Euro
pean ports on flour the same as the
rate on wheat, American flour will take
precedence in Europe, and European
mills viii feel the effect of the 'Ameri-
can invasion" along with the other
European manufacturing industries.
American flour is a superior article, but
at present it labors under a disadvant-
age because of the differential in the
freight rates on wheat and flour. It
costs seven cents a, hundred pounds
less to ship wheat from Kansas to
Europe than it does to ship flour. This
seven cents gives the European miller
that much advantage of American mills
in competing for European business
Even with the differentiaI in force
Kansas millers export a great deal of
flour, but not near as much as they
WO0A4 DS dDlC 10 snip Il tAAC C-ASOA ! a.
on flour We're the same as on wheat. SO
as to put them on equal terms with
European millers. With the differen-
tial thrown off they could undersell
European millers with a better grade
of flour and still make a larger profit on
their exports than they are now max
ing, which would probably mean an
increase in the price which they could
pay the farmer for his wheat.
In discussing this subject, Charles G.
Bovey writes as follows in the Review
of Reviews for May:
although the capacity of the flour
mills of the United States is more than
ample to grind into -four all the wheat
that is grown in this county, yer many
Of these mills are out of commission
for many months each year. owing to
/ the exports of wheat. The growing ten
dency to export wheat rather than the
-four manufactured from this wheat IS
caused, not by the lack of demand in
foreign markets for our -four, nor by
their ability to manufacture -four of
equal quality, but by the fact that the
transportation companies make a lower
rate on wheat than on the manufac-
tured article--fiour. While American
-four is wanted In European markets,
!
by reason Of the lower freight rates, is
-four made from American wheat in for
eign mills. Great Britain draws its sup
/ plies of wheat from India. Argentina,
Australia and Russia. While the Brit
ish miller prefers American wheat
nevertheless he can and does use the
| supplies from other countries in accord
ance with the prevailing price. II
Russian wheat is cheaper, he uses more
Russian If Indian wheat is cheaper,
he uses more Indian. American wheat
therefore, stands in the severest compe-
tftion. The supplies of wheat for the
British miller then, may or may not
afford cargoes for the railroads OF
America and the steamships from
American ports. How is it with -four
American -four, as already stated. sur
passes that of any other country for
general bread-makfng purposes. The
brands of American flour have in Great
Britain a trademark value in addition
to an intrinsic value. American wheat
entering British mill loses its identity
and therefore to the consumer has nc
trademark value. In other words, Il
the transportation companies Of Amer
lea should help in the development Of
the American -four trade in foreign
countries by transporting flour at tbs
same rate as wheat, they would enjoy
a permanent traffic for their cars anG
ships because American flour can be
obtained only in America, and. having
a trademark value, cannot be so easily
rejected for substitutes"
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