The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1904-07-01
MILLS WILL ALL
HAVE TO CLOSE
Railroads Place Insurmountable
Handicap by Cutting Wheat
Rates.
Difference Amounts to Seven
Gents a Barrel on Flour for
Export.

The railroads have handed out a
body blow to the milling interests of
Minneapolis. They have cut the ex-
port rates on wheat and placed a
handicap on the millers that is likely
to close the entire local milling ca
pacity. They have thrown the situa-
ton back almost to where it was at
the time of the New York Central
Pennsylvania rate war, when all the
flour mills in Minneapolis were COM
PEELED to close.
At that time-some two months ago
the Interstate commerce commits
sion, sitting in New York on seabOard
differentials, gave a hearing to com
mlttee representing the Minneapolis
millers, Minneapolis Chamber of
Commerce and Millers' National
Federation, that went from here
to present the case from the
northwestern viewpoint. 1t was shown
that under existing rates, foreigners
could buy wheat in America, take it
to Europe, make flour of it and ship
1T back to America at a profit and
that no American miller could sell
American made -four against flour
milled in England from wheat i'm
ported from America. 1t was con-
tended that wheat should be removed
from classification with other grains,
or else it should be made impossible
to cut rates on wheat without CORE
spending reductions on flour. The JUS
tice of the contention was admitted
by the commission and the traffic
managers.
Difference in Rates.
1t looked as tho something had been
accomplished, but it now proves to
have been all for naught. Under the
rates announced today, wheat can be
taken from Chicago and placed along
cid cI, f@H,
can buy this wheat and defy Ameri-
can competitions. Wheat may be
moved for sc per cwt., but flour can
not go for less than SIC, and this is
equal to discrimination of &c a barrel
on flour.
This cut on wheat comes at a most
unfortunate time-co-inciden with a
rise in flour rates. or substantially
that. When the Great Lakes traffic
was tied up by the strike, the all-rail
lines put eastbOund rates on flour
down to a alexandria, basis. Flour
had been going all-rail at 25c domes-
tic and 231ac for export. The railroads
reduced the figures to 21ac and 2Oc
making 1T good until June 80. This
was compensation in a measure for
the bad effects of the former discrim-
1natory rates on wheat and the par
alyZing effect of the lake strike. For
a time the millers held their own
and were even beginning to gain lost
ground, the Minneapolis mills operat-
ing to almost rs per cent Of capacity.
Today the rates on flour are restored
to the former basis and simultaneously
comes the reduction on wheat, and the
industry stands upon the edge of de-
m oralization.
w A MilIer's Statement.
G. c. Bovey, of the Washburn
Crosby company, summarizes the Sit
uation as follows:
The pretext for this discrimination is
given to the daily press as retaliation
against the rates on similar commodities
by the Canadian carriers. But how short
sighted this Is on the part Of the traffic
officials of the roads of the United States!.
Why not make the rate on flour lower and
move the wheat in the manufactured
form, thereby giving employment to la
Dor, while the roads get the same vol
ume of tonnage and the same amount of
revenue?
The millers have just returned from
their annual convention, determined to
use their best endeavors to re-establish
their foreign flour trade. The new wheat
is just about to move and the millers
were anticipating good export trade,
but now they are confronted with dis
elimination against them.
1t is needless to say that there will be
a closing down of mills until the traffic
managers come to their senses and put
flour on parity with wheat. The flour
rates must be reduced 81 cents per hun
dredweight to enable the millers to do
an export business.