East Oregonian : E.O. (Pendleton, OR) 1888-current, 1907-08-26


the grain storage question, writes the
washtucna Enterprise as follows:
Washtucna, Wash, Aug. %, 1907.
Editor Enterprise:
Dear Sir:-After reading Mr.. j. s.
Howard's letter of August "a In the
Enterprise 1 think Mr.. Howard beats
about the bush and does not confine
his argument to the real issue of the
case. Personally, think Mr.. Howard
is a nice man. In fact I am on
friendly terms with all the ware
house men and think they are all
good fellows. And l do not think the
companies they work for are all
thieves and robbers, but l do think
they are out with the big nit to make
all they can regardless Of whether the
rancher makes a cent or not.
As to Mr.. Howard's raving about
Mr. Ford we can see that the con-
duct of Mr.. Ford cuts no figure In
the raise in handling charges. he
may be good, bad or Indifferent.
That does not Justify the warehouses
in their raise. As to Mr.. Mr.. How
of lumber, coal, and wood, he does
not state that the reason Of that ad-
vance is mostly due TO the coal and
lumber trust instead of to the adj
vance in labor. Perhaps he doesn't
believe It, but I do.
This so per ctnt raise is not the
only gain made by the deal, but Is
means to the accomplishment of the
real object, viz: The administration
of a Knockout blow to the independ-
ent buyer-alluded to by Mr.. Howard
as "tinhorn ticket scalpers"-also TO
catch the rancher a-coming and
a-going. But what difference does.t
make to the rancher whether the
party who buys his wheat ts a tin
horn scalper" or whether he belongs
to trust 80 long as he pays the price
and the rancher gets his money. And
this ticket scalper must have bid up
too strong for them-hence their de-
sire to get rid of him. For the ad-
vance in handling charges and the
clause in the ticket allowing the
warehouse to charge for resacking,
for sacks and twine for same places
the Independent buyer where he can
not tell how much resacking, extra
sacks and twine are going to be
charged up against him after he buys
a lot of wheat.
The warehouse companies claim
that they cannot handle wheat for
30 cents per ton; that they lose mon
ey. But 1t does seem strange that 1t
has taken all these years to find this
out. They have just discovered that
they are losing money.
They say wages have advanced,
compelling them to raise their storage
charge. Well, let us figure a moment
and see. 1t formerly took from eight
to 10 men at each warehouse during
wheat hauling to pile the wheat af-
ter it was received. Then they paid
% cents per hour. Now they use
sack piler and half the number Of
men and pay 80 cents per hour. Just
figure the difference between 10 men
at 25 cents per hour and five men at
80 cents per hour. And yet when
they were using the 10 men and no
sack piler they were all anxious for
I'm their house. They were after the
rancher like a swarm of bees; really
seemed anxious for the wheat. Yet
now they tell you that they lose mon
ey at so cents per ton. handling
charges.
We have four warehouses here and
1t Is estimated that among them they
will receive 100000 bushels of wheat.
NoY let us figure a little. Dividing
5000 bushel equally among the four
houses gives each house 100000
bushel. But we will figure safe and
say 150 900 bushel, which is 4500 tons.
At so cents per ton handling charges
would be $3.50. Say they sell half
of the wheat before they get any
storage and they get one months
storage on balance, 1850 tons at 10
cents per ton is s225, which added to
the s2250 makes $2475. Say they
get another month storage on half
of the 1850 ton. This amounts to
$112.50, which added to s2475, makes
s25S750. Now let us figure expenses
also. We will say they use five men
straight time for four months at s;
per day, which is about $500, leav'
ing them net profit of $1,000 at 81
cents per ton handling charges. Ado
to that the so per cent raise which
is on basis figured $1125. This would
make their profit s2125 whether the,
buy any wheat or not Really It Il
too bad to see the poor warehouse
companies lose money that way
"But," says the local warehouse man
"you did not figure my salary for 1
year out of that"
I would like to know how TIL
company could buy wheat IL they di'
not keep a man here. How does tn
independent buyer get his salary? H
does not have any warehouse to whicI
to charge up his salary. But he ha
been paying these warehouses thei
handling charges, making his salar
besides and yet outbidding the Who'll
outfit when It comes to buying wheat
But for arguments sake, let us fig
ure the regular mans salary, whic
Is about 5000 per year. This added t
the above expenses makes $4,000. Bt
he has not mentioned the fact tha
he has perhaps sold 100000 sacks an
made profit of perhaps $4,000. Th
&, added to the s25s7,50 makes $45s7.5
Deducting the $4,000 expenses leave
a net profit Of $21S7.50 whether the
buy any wheat or not.
There NAV not be any warehous