Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1902-08-07
OIL MILL INDUSTRY.

49, HERE 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 - years ago. It has grown IN
I'll now hundreds Of millions OF dollars are
invested in cotton seed oil mill plants al
over the south Atlantic and gulf states.
The rapid development OF this business
Is largely due 10 the fact that Il IL
having industry 20 those who have invest
ed their millions IN it. From Few sEnalt
plants which were erected In the tes anu
operated as Independent concerns the GUS
fness has grown until now we have the
cotton seed oil trust with its millions OF
capital controlling and operating lafee
numbers Of mills under the management
lust the same as the steel trust NEAR
trust and similar trusts OF like CHARACTER
While the oil trusts have been ouylng
up large numbers OF small mills during
the last few years. the small local lnoe-
pendeut mills continue TO be built and the
promoters OF eli these small or large IN
dustries continue TO make money. Inc
business is q fascinating one because the
dividends are usually satisfactory ana the
investors are contented and happy. our
ing the mast seasons, the oil mills netted
uozsfhfv the largest dividends ever be-
fore realized in the business. The reason
for this was based upon the fact that the
marlin OF difference between the pur-
chase price Of che raw seed and the sale
Of the manufactured products was sum-
GENTLY wide 20 realize 20 the uanufactur-
ers an unusually large profit, running
on an average from s. 10 so net proft per
ton. The price OF seed was low and the
~rrice al OH. meal and hulls high. The cost
q manufacture remaining the same as In
past years
As promised to our correspondent from
l. Ew~ 80 v4vsrN
last issue. We viii now undertake 20 cover
this question fully, that the farmers who
have seed 70 sell may be fully posted on
the situation and know the true value or
their seed and now to meet the prices or
the oil mill people who come into the mar
knt for their seed II q farmer knows
nothing OF these things. IL IS impossible
for him 20 arrive at any proper conclu-
sion REGARDING the value OF his seed TO
the min and 70 himself.
By-Products Of Cotton Seed.
me price Of cotton seed set BY the mills
IS largely based upon the market price
and demand for oil In order 10 determine
the value OF a ton Of cotton seed to an oil
mill therefore we must know what the
hy-products % a ton % seed are and the
total value OF the same. Deducting from
that the price paid for the ton OF seed
and the cost Of manufacture we can east
lv arrive CT the profit or loss 20 the mill
=
OF q ton OF cotton seeds are as follows:
Al gallons 81 oil. 20 pounds Of meal and
COO hounds OF hulIs. linters. etc.
In The Atlanta Journal OF August "a we
ind the local market for these by-prod-
nets 4 o. b. cars at the mill. advertised
as follows: oil g cents per gallon. meal
Sc per ton and hulls. loose. s. per ton
Applying these prices 10 the different
Yields OF q ton OF seed we have the follow
ing:
= gallons oil at s5c...............-....sI4.o 90
- pounds meal at 49,. SO
LOO pounds huIis at SC. :. :. :. :. 800
Total value. -. .ss.0
The price offered for seed Is 81 per ton
or II cents per pushed. This would leave
4 margin OF difference OF S11-T0 per ton
between the cost Of the seed and the
selling price Of the manufactured prod
ucts.
out Of this difference OF s11.T0 the mills
must pay the freight on the seed from
shipping point 10 mill and the cost OF
manufacture, and whatever balance IS
left viii go 20 the net profit OF the mill
on the business The average rate Of
freight on g ton OF seed from shipping
point to mill is estimated at $50. and the
average cost OF manufacture is 81 per
ton. OF course where seed are delivered
20 the mill from wagons the freight Is
saved We have here the total cost OF
manufacture including freight. amounts
70 $50 per ton These are outside figures.
some mills working the seed for less than
81 per ton.
Now deduct the $50 cost OF freight and
manufacture from N1.70 the net difference
between the original cost Of the seed and
the value Of the by-products az present
prices and we set the net amount OF $50
per ton. which should so 70 the profit Of
The mill on the business. II a mill should
work 30oo tons IN one season and nearly
all OF them do that, the net profit on this
basis for the seasons business would