The commonwealth. (Greenwood, Miss.) 1896-1923, 1905-01-28
Mississippi State News
The Oil Mill Situation.

\ dispatch from Jackson, dis
cusslng the price Of cotton seed oil,
and the necessary remedies for the
present conditions, says:
The oil mill situation in Mississippi,
as web as every other Southern State,
is not at all promising. The oil mill
men are feeling the situation about
as badly as the farmers. The slump
in cotton prices has put all at sea.
The highest price that oil brought last
year was "a cents a gallon. and the
lowest was about 20 cents, the aver
age for the season being something
Ike 30 cents Il gallon. At this price
there Is a fairly good profit in the
business. Now oil is selling at Is
cents q gallon at Interior points, and
10 cents in Chicago. Cotton seed oil
enters very largely into the manu-
iacture Of lard, which is now selling
at over 4 cents a pound. while the oil,
II reduced to the pound basis, would
bring only 2 cents a pound. Every |
oil mill in the South is at the mercy
OF the big packers" said a prominent
manager, i'll discussing the situation.
In other years VIZ have been en-
abled to dictate our own prices, but
now the shoe Is on the other foot, and
the packer is doing the debating.
and is saying just how much he will
glVe for the products of the mills. At
10 cents a gallon it will just about
pay for the cost of crushing, while
we u get our profit from the bulls
and meal and the iinters. Last year
llnters were selling for about 6 cents,
n this year, owing to the drop in
the price OF cotton, they are bringing
but ; cents, which cuts quite a large
chunk Of profits out of the business"
1t seems from what can be learned
that the packers are under the i'm
preston that oil mills have large
quantities of oil and that they can get
the product of the mills at their own
prices. IT is aSCertained that all of
the mill managers in the State are
advising the farmers no to sell all I
their seed, but to save it and put it on ,
their lands. 1t is said the farmers ,
are largely following that advice.
Some Of the big farmers are buying
the surplus of the smaller farmers
and are putting il on their land. The
mill men say that il this policy is fol- ;
lowed in the South generally, that
there will be no question about re- "
licVing the situation. The mill men S
In discussing the situation frankly say Y
that they are NOT making any money Il
this year, and what they desire is to -
save themselves from as much loss as ~
possible. Next to Texas 1t is probable p
Mississippi is the greatest cotton Il
oil mill State in the South. During n,
the past few years n large number of
mills have been organized in all parts
Mississippi by local capital. Here
tolore these mills have proven a very
profitable Investment, and there are IN
good many prosperous farmers who ii
hold stock in the mills. 1t is with the h,
to see whether the mills shall
'ecetYe a good price for their prod "
If they will use their surplus b
iced on their lands the mill men say III
hat they can pull through with a .c
lttle profit, II not be at the mercy
the big packers, the largest CON ="
uhIers Of their products. From talks
Win mil men it seems probable that
his plan will be recommended by the
lllt men OF the South when they meet Of
month to discuss the situation tic
nd devise plans for lettering their an
ondition, If all the seed that was
lade last year is ground the oil mills we
ill have the longest run in their his me
)ry, and all will be over supplied. eel
is to prevent such a situation that
le mill men are advising the farmers
make other disposition of their
With a reduced acreage this
ear the mills can begin next season DOL
a good basis, not being over sup I'LL
led with manufactured products mo
hich they viii have to dispose of at no
tie if any profit. ORA