The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1903-05-12
AS TORONTO SEES It
Minneapolis Millers Want Free Man
itoba Wheat to Lower Prices
of Raw Materials.
British Millers Cannot Be Undersold
at Present. Reciprocity in
Wheat Discussed.

Mail and Empire says:
Manitoba wheat is much desired by the
-four manufacturers of Minneapolis as
grist for their mills. But the free move
ment of the wheat from that quarter is
checked by a United States duty. This the
millers seek to have removed. in opposi-
ton to the farmers of western states, who
cling tenaciously to the tariff protection
on their chief product as Manitoba's capa-
city for competition increases. To COM
pensate the American farmer for the loss
of his wheat duty, the Minneapolis mil
lers propose that the Canadian farmer be
deprived of his wheat protection: Their
idea is, in short, to bring about reciprocity
In wheat. ' -#
So far they have failed to persuade the
wheat growers of the northwestern states
that this would be a good arrangement. 1t
is not unlikely that proposals for the free
interchange of wheat between Canada
and the United States will be considered
at the next meeting Of the joint high COM
mission, but they will not come from the
wheat growers on either side of the line. I
In the meantime the big mill operators
of Minnesota have been making COM
mercial experiment upon Manitoba wheat.
Some round lots Of No hard were bought
in Winnipeg last December by the Wash
burn Crosby company, to whose Humboldt
mill the grain was shipped, there to be
ground in bond That is, the merchandise
would remain in the control of the United
States customs until it should be re-ex-
ported in the form Of -four.
View Point Of MilIers.
| To the Minneapolis mill owners the ad-
vantage of free access to the wheat sup
plies of Manitoba appeared to be great.
It will be observed that the purchases of
| the Washburn Crosby company, were not
made in September or at any other time
in the shipping season. They were put
off till the middle of December, long after
navigation had closed. A large proper
ton of the crop remained in the country,
the resources of transportation not hav-
| ing sufficed to get it all out. The Min
neapolis millers expected to acquire at a
bargain a few million bushels Of the
wheat thus locked in the interior during
! the winter season. The farmers, they
imagined would welcome the winter
market in this way offered to them, albeit
the prices might not be on parity with
those in Liverpool.
But the Canadian wheat growers ap-
pear not to have been eager to realize
| on their held-over grain. At all events,
the Washburn-C Crosby company's low bids
did not bring out large offerings. And
that companys mill for grinding in bond
has ceased operations AS a matter Of
fact, all the great flour mills in Mime
sofa have closed down. The reasons given
for this suspension throw some light on
| the real motives of the American desire
| for free Canadian wheat.
| It Is charged that the railway cornpa-
MES killed the Minneapolis mills export
trade in flour. The reason alleged for
this hostility on the part of the railways
is that they are under the influence of
the great wheat exporters. Naturally, the
latter want to keep down the exports of
flour to as low a volume as possible, for
the greater the supply Of American flour
there is to the British market, the smaller
lrr,sl he ft,or oro1E fny orio
wheat American wheat shippers must
CO. operate with British millers to keep
down, in their common interest, the for
eign competition against the latter. Be-
cause they offer an enormously greater
+ freight tonnage than the flour exporters,
and because they represent a vast capital
in few hands. the wheat exporters can
prevail with the railways more than the
flour exporters can.
a Make Weight In Manitoba.
To offset the wheat exporters advan-
4 tage in freight rates, and also their COM
petition in the wheat market, the Mime
: apolis mill owners hit upon the idea Of
4 duty free Manitoba wheat. The duty out
of the way, they hoped to buy in Canada
son when they would have no competition
there If they could do this. they might
Z so far lower the cost of producing flour
las to be able to overcome the railway dis
elimination.
Besides the high freight rates, the Min
neapolis mills have had of late to contend
with specially high prices for wheat Their
demand last year made their city the dear
est wheat center in the world. In the
early spring they were paying as much
flor cash wheat as Chicago July wheat
+ was quoted at. At times the price in Min
! neapolis was as high as cents above that
in Chicago. Since last summer cash
s wheat in the -four city has steadily ruled
at premium on the futures. That is to
say, the Minneapolis nillers have to pay
for their raw material prices above the
; equivalent of those paid by their COM
lpetitors. the British millers.
Freight rates and wheat prices being
y both in their favor, the British millers
cannot be undersold. To bring down the
price of their raw material, the Mime
apolis millers want free Manitoba wheat.
That would probably not help them much,
Il for Manitoba wheat is frequently above an
export basis and our western farmers are
so prosperous that they are under no com
pulsion to sacrifice even their winter
stranded holdings.