The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1903-06-23
GOOD FOR OIL MILLS
The Slump in Flax Prices Will
Help the Local
Crushers.
Present Figures for Seed the Low
est Quoted for Four
Years.

Minneapolis, as manufacturing city
is likely to be benefited by the great
| slump in flax, which has carried prices be-
low the dollar mark. The long expected
and long-predicted break came at last,
| and flax sold yesterday at 971@c, the low
est price quoted here since December,
1892 This is a decline of 90c bushel
| from the top figures on the former high
| range when flax sold here at $1.87h AS
compared with two years ago, the linseed
oil industry is on a basis as different as
the flour milling industry would be should
cash wheat some day reach a level of 45c
as against the present figure Of about SIC.
The shifting of prices of raw material
naturally affects the Industries consum-
ing the commodity, and since the linseed
Oil industry is now on a lower basis with
reference to supplies Of raw material than
for four years there is great interest
shown as to the probable effect upon Min
neapolis where there are seven linseed
Oil mills. Grain elevator. men, farmers
commission merchants, and land men.
from end to end Of the country, are also
discussing the probable effect Of the great
slump in prices.
Acreage Not Affected.
The decline will have little effect upon
the acreage in the northwest this season.
as practically all the flax farmers in
tended to plant is now in. 1t will mean
disappointment, however, to many farm
ers when they come to market their prod
uct. Minneapolis elevator men will not
be adversely affected by the decline An
advantage will accrue to them from the
fact that only half the money formerly
needed will be required to handle the fax
which Will mean a great saving to them
in interest charges Commission men will
not suffer. Land men will feel some eff
feet, as flax raisers will not realize as
much from their crops as expected and
some new settlers may have to be ca
ried little longer than expected.
i The effect upon the linseed oil Industry
will be beneficial. Labor has been a. fac
tor in linseed oil consumption and where
plans for new buildings have been held
up thru labor disputes, so much demand
for paint was cut off and this reacted upon
the oil men. The dropping Of linseed oil
to around the 36c level will mean the nse
of paint in many localities where former
high prices were deterrent and much more
OIL is likely to be consumed in the com
ing season.
Standard OH a Factor.
The three local mills of the American
L1nseed OH company are in uncertain
position as their controlling interest now
rests with the Standard Oil company. The
Wall Street Journal in an analysis of the
situation thinks the American NAV he
atfected by the drop in seed, as the lower
the prices the smaller the margin Of profit
and this is given as one reason for the
decline OF the company's stock to around
$40 a share. -.
Local oil men do not share this view and
believe the prospects Of good business a re-
better now than when EVERYONE 6,onlsaa
for declines in fax and this impending
danger made it very precarious to Inv
supplies Of seed ahead. The independent
mills of the Daniels Linseed Oil company.
the Minnesota mill. the Northern and The
big Midland have been doing a good busi-l
ness for some time. and are likely to
operate on an even larger scale. the com
ing season. K 60