The Tupelo journal. (Tupelo, Miss.) 1876-1924, 1905-01-27
The Oil Mill Situation.

a dispatch from jackson, us
cussing the price Of cotton seed oil,
ard the necessary remedies for the
present conditions, says:
The oil mill situation in Mississippi,
as well 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 26 cents, the aver
age for the season being something
like 80 cents gallon. At this price
there is a fairly good profit in the
business. Now oil is selling at 10
cents a gallon at interior points, and
1G cents in Chicago. Cotton seed oil
enters very largely into the manu-
facture Of lard, which is now selling
at over 4 cents pound, while the oil,
If reduced to the pound basis, would
bring only cents a pound. Every
oil mill in the South is at the mercy
of the big packers" said a prominent
manager, in discussing the situation.
In other years we 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
give for the products of the mills. At
Is cents a gallon it will just about
pay for the cost of crushing, while
we must get our profit from the bulls
and meal and the linters. Last year
linters were selling for about 6 cents.
and this year, owing to the drop in
the price of cotton, they are bringing
but 3 cents, which cuts quite 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. 1t is ascertained that all OF
the mill managers in the State are
advising the farmers not to sell all
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 it on their land. The
mill men say that if this policy is fol
lowed in the South generally, that
there will be no question about re-
lieving the situation. The mill men
In discussing the situation frankly say
that they are not making any money
this year, and what they desire is TO
save themselves from as much loss as
possible. Next to Texas it is probable
that Mississippi is the greatest cotton
oil mill State in the South. During
the past few years large number or
mills have been organized in all parts
of Mississippi by local capital. Here
tofore these mills have proven very
profitable investment, and there are
a good many prosperous farmers who
hold stock in the mills. 1t is with the
farmers to see whether the mills shall
receive a good price for their prod
ucts. If they will use their surplus
seed ON their lands the mill men say
that they can pull through with a
little profit, and not be at the mercy
of the big packers. the largest con-
sumers of their products. From talks
with mill men it seems probable that
this plan will be recommended by the
mill men of the South when they meet
next month to discuss the situation
and devise plans for betterlng their
condition. If all the seed that was
made last year is ground the oil mills
will have the longest run in their his
tory. and all will be over supplied.
1t is to prevent such situation that
the mill men are advising the farmers
to make other disposition of their
seed. With a reduced acreage this
wear The mills can begin next season
on a good basis. not being over sup
plied with manufactured products
which they will have to dispose OF at
little if any profit.