The San Francisco call., 1906-06-19
D|sPOsES
Of F. OUR
SURPLUS
Finance Committee Sells
13,500,000 Pounds to
Highest Bidder.
Gets $3.50 a Barrel for
Most Of 1t and S3.16
for Rest.
Sufficient Amount Is Re
served to | .ast for
Six Months.

The heavy surplus of flour sent here
by Eastern sympathiZers was sold yes
terday by the finance committee. Of
the lot 120OO,O0o pounds sold at $3.50
per barrel. and 1900, 900 pounds at
$316. The Globe Mining Company was
the purchaser.
The committee reserved 10000
pounds for relief purposes. This Will
last for more than six months, accord
ing to the present demands
When the sale of this -four was first
attempted, a bid for the whole lot was
made by the Sperry- -McNear combina-
tion, which offered fat sum of $225
a barrel for the entire lot. This propo-
sition was refused by General Greely
Bids were again invited.
In answer to the inquiry of w. Z
Edgar, chairman of the Minneapolis
relief committee. James d. Pheian
chairman of the finance committee
sent the following reply yesterday
june IS, 1905.
William C. Edgar, chairman Mime
apolis Relief Committee, Minneapolis
Mimi:
cerning sale of -four, and the finance
committee is extremely anxious that
vast quantity OF flour received from
various sources in and out of the State;
aggregating 1000 tons of assorted
being without warehouse room. the
army quartermaster and commissary,
which had full charge of receipt and
distribution, stored the same on three
army Transports, there being practical
ly no other Warehouse facilities This
supply was in excess of every possible
need. and on the recommendation of
General Greedy we decided to offer the
-four for sale for export, intending to
convert the proceeds into other and
more pressing forms of relief. believing
that the flour was an absolute gift, to
be disposed of in the judgment of this
committee and to thus serve the pur-
pose of the donors and meet the prac-
tical questions of relief before us
which pressed for solution. We con-
verted much of this -four into bread,
and we are still continuing to do so,
and in offering it for sale we reserved
$50, 600 pounds, which at present rate
of distribution is equivalent to six
months supply. AS you may well un-
derstand, people living in tents had no
proper facilities to bake their bread.
The flour was offered for export with
tation of the local -four trade. We
were ordered to remove it from the
transports, and we would have to pay
seasons storage on the first of July.
and General Greedy was authorized to
sell tie flour by this resolution. without
requirements as to export, local trade
not objecting:
General Greedy to SELL through the
regular army channels, in the same
manner as other army stores are dis
posed Of namely. by inviting bids and
awarding contracts, the surplus flour
and meal now stored with the United
States commissary and quartermaSter
in such lots and in such manner as he
may decide; and he is also authorized
to reserve such portions for free dis
trlbution as in his Judgment and in the
Judgment of Dr. Devine of the National
Red Cross Association may deem de-
sirable for the purposes of relief."
The bids were advertised June and
were opened and awarded today.
Twelve million pounds sold at $3.50
per barrel, and million and a half
due to length of hauling. The amount
reserved for relief was 100000 pounds
We trust you will understand the
necessity and the desirability of this
course, which was carefully considered
before action was taken, and the COM
of selling. even if it is necessary to
purchase -four when needed out of the
proceeds which the generosity of your
people and others have put into our
hands.
We are informed that there are four
carloadS OF flour now on the way, and
cite this as an example of the fact
that we are not responsible for the
congestion of certain classes of sun
plles IN excess of our ability to take
care of them The splendid response
or the people cannot be restrained in
their desire to help San Francisco. nor
do we intend to do so. but ask you to
rely upon our judgment as men on the
ground serving what we believe to he
the interests of our stricken commu-
nifty.
JAMES d. PHELAN,
Chairman Finance Comp,;t+an