The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1902-02-07
GRAIN RATES
IHJJRE MILL
So J. {. Howard Declares in
Interview
AFFECT EXPORT BUSINESS
Foreigner Buys His Wheat in
America.
He SHOULD BUY FLOUR
Mills Would Come to Wichita
We're Rates Right.

Were it not for railroad discrimina-
tons on grain rates, Wichita would have
two or three more large -four mills"
This statement was made by ]. z. How
ard. proprietor of the Union Mills. to a
reporter for the Eagle yesterday after
noon while speaking CT the action Of the
great trunk lines on the handling OF
grain.
Whenever a railroad company" said
Mr.. Howard, enters commercial pur-
suits the average merchant or grain deal
er stands no show in competition. They
have entered the commercial world. more
especially IN the grain ana coal business
BY reason Of this they absolutely decide
the price Of wheat. when it shall be NOV
Cd, and 10 what market II shall go. To-
day they are controlling the greater part
OF the wheat in Kansas that is held by
producers. They control the grain through
their buyers. The firm of Hall s, Rob-
insOn act for the Missouri Pacific; Rich
arson * Co, tor the Santa Fe. and
Rosenbaum- * Co. for the Rock Island.
These firms either operate elevators
along the railroads or so manipulate
freight rates that the elevators owned
by private parties are compelled to sell
TO them in order to stay in the grain bus
mess. OF course il would not be policy
for the railroads to absolutely control
every bushel of grain, for by 50 doing
their action would be so plain discrim-
ination and such an outrage on the public
that they would BE- driven out of business
at once. But by controlling a large part
of the grain they largely get the cream Of
the business and about all the profit there
Is in il.
In the past the railroad companies
have made the same rates for both export
wheat and -four. This enabled the II an
sas nillers 10 mill the wheat at home and
export It TO Europe. Now, however, q
higher rate is charged for export -four
than for export wheat. and It is conse-
quently cheaper for the foreigner TO buy
his wheat in this country and mill it him
self. There are so many barrels of Hour
consumed every day throughout the
world. The only question is where It
shall be milied
The grain companies ! have mentioned
prevent the miller from securing enough
wheat by manipulating the rates The
result of this is that the millers cannot
secure enough wheat at relative market
prices to operate their mills al fun ca
pacity.
Some Kansas millers depend upon the
eastern market and tine export market
for the sale of their products
The policy of the railroad companies
through the agency of the large grain
companies owning elevators along their
lines. il to have a large part OF the wheat
shipped away to be milIed instead of be-
ing miiled az home. The millcrs in this
vicinity handle about one-third of the
wheat crop. II the conditions were as they
should be we would handle two-thirds OF
the crop.
In the reports OF the Proceedings OF the
Interstate Commerce Commission, Paul
Morton. the vice president Of the Santa
Fe Railroad company. is reported as
having said in effect that their buyers
bought wheat and sold it: and the rail-
road company took the difference between
the purchase and selling price as freight
charges. after allowing Richardson * Co
one-half cent bushel
"Qf course when 1 speak Of the wheat
being shipped 70 Europe as 4 result Of the
discrimination of the railroad companies
I make allowances for that shipped as
ballast for vessels having light cargces.
This would occur under any circunl-
stances, but we protest against the IN
natural conditions brought about by rail-
road discrimination"
An extract from a letter written BY
J. N. Bernis Of Boston. president Of the
Bernis Bas Co. TO J. p. Morgan i, Co.
and which WAS printed IN the Modern
Miller, would be OF interest The writer
shows Ia what way the milling of wheat
81 home would benefit the railroads The
arguments accompanying the letter are
as follows:
Against the haul of wheat TO export
points Tor export:
!. Orly one haul 10 export points and
it is gone
- Usually cut rate in freight is
given 70 shippers.
.. Usually the wheat haul IS confined