The Birmingham age-herald., 1905-09-01
MILLING INDUSTRY
 GROWS RAPIDLY Development Very Pronounced
 in the South
SOUTH NOW HAS9110 MILLS
In 1900 Southern Millers Paid $65, 5,ooo,- 900 to Farmers for Grain Used. Mills Are Constantly
 Increasing.

Washington, August 31.-(Special.)-T surprising development of the south as a grain producing section, with the re- sultant upbuilding of the milling indus try, is shown by the statistics in the re- port of the census bureau, department of commerce and labor. Farm lands have been steadily developed until today there are in the south according to the bureaus report 9110 milling establishments occu- pied In tranfering the products of the southern farmers into Hours of various kinds This Is an increase of 2723 mills during the decade ending 1900
 In other words, the south, in order to handle her own grain and receive the benefits of the business resulting from it's production, has been building mills at the rate of 300 a year. until at present there is over s25000,OOO invested in the grain milling industry alone. In 1890 the mills of the south annually purchased 49,- 100000 bushels of grains, which amount at the ending of the ensuing decade. had grown to total of over GOO bushels The amount paid to the farmers for this grain in 1890 was s41. 900. in 1900, S66,- 000000 and the value of products in 1890 was $52,000,000, and in 1900, $73,000,000.
 Reaps Reward Of Industry.
 The tendency Is continually becoming stronger to manufacture southern grown grain into it's various products in south ern territory instead of shipping 1t to out side terminal points and allowing them to reap the reward of the industry of the southern farmer.
 This development in grain milling in the past ten years has been almost en- tireiy due to a railroad practice, which consists in making what are known as milling in transit rates." Early in the history of the production of flour in this country 1t became apparent that tho miller situated at an inland point could not compete with the terminal miller at the seaport If 1t were necessary to pay freight on grain from the grain shipping station to his mill, plus the freight on his flour from his mill to the terminal market, since his sum would exceed the straight fiat rate on the grain from the grain shipping station direct to the ter minal market.
 In other words, the miller located at a
 
 him in one direct shipment, could sell his grain more cheaply at that point than the inland miller who found it necessary to pay freight on two shipments and two terminal charges. In their efforts to build up the country in general and in order to encourage country mills, the rail- Soads several years ago established the Nnilling in transit" rates. Such rate on grain enables the country miller to stop the grain in transit at the point where his mill Is located, mill the grain into flour and feed, and forward the same to the terminal market at prac- tically no greater charge than would be made if the grain were transported with out break from the originating point to the terminal market. Through these milling in transit" rates, more than from any other cause, has come the tre- mendous development of the south as a grain and grain-products producer.
 Benefits Country Mill.
 MT. Charles Frank II. Blodgett. a mer- chant of Janesvllle, Wis, during its re- cent hearings, described the economy ad- vantages and the practical necessity of Milling-in- transit" rates for the coun- try miller. and protested against gov ernment rate-making since this would necessarily abolish Milling n-translt' rates. The point, as explained by MT Blodgett, was that although no one was injured by these "Milling-in- transit rates the interstate commerce commits sion. If given the rate-making power would be forced to abolish them upon the complaint of a terminal miller, so that should the government take in hand the business of regulating freight rates for the country, 1t would mean destruc- tion to the country miller.
 The south is not ordinarily thought of as an important grain-producng or mill- ing section in comparison with the west The fact Is, however, that the southern millers at present take from southern farmers over 72000.OO0 bushels of grain, the milling industry expends in the south S6S, 100000 annually and produces for the benefit of the south material worth over S73,OO0,000 without considering by-products These figures afford a striking example of what has been accomplished in one of the minor" industries of the south ern states through the intelligent CO., operation of the manufacturers and the transportation interests Well informed southern business men. say that the ln- dustry will expand to many times It's present portions if 1t Is left to it's free development without governmental inter- ference.