The Washington herald., 1909-01-31
FLOUR NOW At 4 STANDSHILL
Patten Wheat Deal Seriously At
fects the Market.
HIIIers Compelled 10 Ask High
Prices TO Avoid LOss-Har-
ket COnEested.

New York, Jan Changing Ike pail
over the wheat business OF the country.
the Patten deal. or attempted corner in
May wheat, is also having a depressing
effect on the flour trade, both locally and
in the West
While there are a number OF other con-
tributing causes 10 the present unsatis-
factory condition Of the -four business, no
one is willing TO deny that with the Pat
ten deal out Of the way and the wheat
market left TO follow the course Of natu-
raj influences q more encouraging tone
would be impaired 10 number Of allied
industries.
Not only is tie local -four situation IN
an unsettled condition. but reports from
milling centers also Indicate a stsguant
condition Of affairs in the West. and one
OF the weIl-known mills. the Sleepy Eye,
Of Sleepy Eye. MINI, is now being oper-
ated by a receiver Flour exports also
are far below normal
Local -four men ind i almost impossi-
bic to transact business, being confronted
on the one hand with pleas of buyers
that prices are too high and unwarranted
by current conditions and on the Other
by the fnsistence Of miIers that the pres
ent wheat situation compels them 10 ask
advanced prices 20 save themselves from
actual loss. Il would seem from an in
vestigation OF the situation as If both
contentious were correct
In September Of last yeaR when the
present milling crop was aT-ilable. spring
patents sold on the local market at an
average price Of $50 a barrel. At that
time the price Of cash wheat in Mime
apOlis was 1e3 a bushel- Now. however.
wheat is "a cents dearer. but buyers re-
fuse 20 pay more than cents a barrel
additional for their -four. although there
are about - bushels Of wheat 70 the bar
rel. adding in the neighbOrhOod Of %
cents more 10 the cost. OF course. those
who are versed in the technical part OF
-four making understand that the cost of
the various grades OF -four has TO be
averaged. and il Is necessary TO manu-
facture a series Of grades at the one time
in order to gain the maximum produc-
tion from a given amount of wheat
Miuers contend that the most economi-
cal method Of manufacture at the present
time has almost the effect Of making
them seek their profit from the by-prod-
ucts, such as bran or mil feed. and that
the top grades. or patents" are now ac-
tuallv under the cost of production
The present confusion in the -four situa-
ton began about last July, when the pre-
vious crop of spring wheat was exhaust
ed and many mills had to shut down.
Prices Of patents then scared as high as
S. q barrel, and as soon as the new crop
-four was available. IN September, It was
taken up as fast as the mills could turn
It out In fact. the buying reached alb
normal proportions. and many outsiders
were attracted from purely speculative
motives. believing they saw profit Of at
least 50 cents g barrel. according 10 the
prices at which flour had previously been
selling.
Among these spectators were many
who we're irresponsible financially and
who counted on making a turn 20 some
responsible buyer who would be able TO
take up the drafts Much Of this trade
has now been eliminated through re-sales
BY responsible produce exchange brokers
70 whom the -four had finally 10 be
turned over.