The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1906-03-12
States Contest with a Trust.

the .cordage trust is OF equal s1gnlh-
canoe with the war between the state
Of Kansas and Standard Oil, tho there
is nothing like so much capital in
volved,. and in the Minnesota case the
state is not coming to the rescue of
oppressed private owners, but is fight
ing to maintain an established indus
try under state ownership. 60
The state prison Irvine plant has been
marvelously successful, and has saved
the farmers of the state millions Of dol
lars on their binding Irvine. It has
habitually undersold the market from
to 8 cents a pound, and so has had
no trouble in selling every pound of it's
product within the confines of the
state. \ It has thus deprived the cord
ageztrust of sales measured by the ca
pacity Of the prison plant, and running
for this year up to 100000, pounds.
The trust interests have suffered this
competition for years, but now have
started out to crush it. A new plant
which will make Irvine by new process
from fax fiber will buy it's raw mate
rial in Minnesota, will meet the low
est price of the prison plant, and will
sell it's product entirely in Minnesota,
so as not to injure the market outside
this. state. s...,;. .-S.>G... ~ r.
IF Minnesota could be assured that
these low prices would continue, the
prison plant could we'll be abandoned
and prison labor turned in some other
direction, such as roadmaking. 1t is a
certainty, however, that with the prison
plant out Of business prices would at
once be advanced by the Irvine monop.
oily, and the farmers of Minnesota
would be once more paying big profits
to alien stockholders. So the Minnesota
plant must be kept going, in the face OF
astute efforts to crush it. The issue
must be met.
The cordage interests have planned
to confne the fight to Minnesota. As
the state law now stands, prison Irvine
may not be sold in other states. Il
next year the flax Irvine should break
into prison sales as intended, the pris
on would be left with millions o.
pounds unsold. The plan conceived b.
the board Of control and the warden
and now Endorsed by the governor, il
to amend our law so that if necessar,
prison Irvine may be sold in othe
states. The prison output is practi
sally sold for this season, SO there i
time for this change to be made by tn
legislature next winter. It will meal
that if a Minnesota market is cut of
prison Irvine will go into the Dakotas
Iowa and Wisconsin, where regula
trust prices are maintained.s II
The trust must then meet prisol
prices Yin all this territory and cut it
own profits TO almost nothing. or: Mir
nesota will dispose Of it's entire surplu
and the plant will go on fourishing.
The state is undertaking a har
fight, with powerful antagonist, an
J it may need e/moral support from tn
farmers of the state to help win Out
The state has certain advantages j
the contest, however. The prison labo
is less expensive than any the trus
can find, and the prison does not hav
to pay any dividends to stockholder
The, only profit exacted by the prise
plant is one that will provide sinkin
fund to buy new machinery and NEE
emergencies. Under these condition
the state ought to meet any industris
competition, and prices being equa
the state $ interests should be SUI
ported by Minnesota people.