Forest City press. (Forest City, Potter County, D.T. [S.D.]) 1883-19??, 1912-11-28
President of Great Western
Railway Co. Explains How
Great Grain and Milling
CenterS are Established
and Prices Main
tanned.

Drdskd Bankers association in Omaha.
Eeb., on october 81. 1t is instructive
and towns throughout Iowa. Nebraska
and South Dakota. The speech is re-
printed IN full:
AR: Chairman ana Gentlemen of the Ne
btaska Bankers Association: l have ac-
tfpted tho invitation TO address you be-
cause ! have something to say which ! re-
Hdfd as OF Importance to every business
unrest OF the state, and because ! regard
The bankers OF "A state the most repre-
tentative class OF it's business interests.
The very nature OF the banking business
cofipels the banker to keep i'm close touch
with every branch of business. and from
~ the vasio,Is industries Of his locality.
Iii addition. the advice of tho banker. and
more especially the country banker. Is
constantly sough. by the farmers and To-
Therefore. when I address the Bankers
ssscciation I feel that am ta'king face
>" face with the very heart OF the bust
Eess interests OF the state.
MY subject relates primarily OF an OPP
poittlIity OF increasing the prosperity of
the farm. but as the farms are so large
braska that they may be justly regarded
AZ the basis OF all the business Of the
siaic. 1t Is evident that an increase OF
the prosperity of the farms would al
81 tvcry other branch of i~ndustry-the
banks. the merchants, and generally the
business Of al! who live in the villages
and cities.
The basis Of my gun is the PROPOSE
ton that organization of industry natur-
ally divides into two dcpartinents-thc de-
tai;incnt OF production. and the depart
hicnt Of distribution, or commerce.. Pro-
duction liz funda mental. Commerce is
secondary. ana dependent upon produce
lion. becausc things must he produced be-
inrs, they can be exchanged.
In the prosecution of industry each de-
partmcnt has it's part, and the reward
winch cacn receives depends primarily
Upon how well il performs its own part.
and scconcarily upon how we'll the other
department performs its part. That is to
Ray. the producers may perform their
part we'll and he robbed of a portion of
their just rewards by a failure of the
department to market the prod
hct well. And this is tine point of my
argument.
1t is the part of the farmers of Nebras-
ka 4" grow the crops. ii is the part of
me department to provide the
markets. The farmers perform their part
we'll. but 1t is my contention that the
industry OF the state is robbed indirectly.
OF q percentage OF their just rewards.
amounting. iE the aggregate. to millions
annually. by the fault of the commerce
market for grain.
That - nearby market for the products
81 the farm adds to the value OF such
products in the hands OF the farmer is
no longer a theory. but it is a fact which
mas been demonstrated
The Grain Market.
Before %recounting the demonstrations
which nave been made of his important
fact. let us consider what constitutes a
grain market.
II consists OF a large number of active.
int grain dealers c~ongregated in a
market town. intent upon making a profit
OF NJ. eighth to n quarter of a cent per
bushcl for themselves. But the nature
Of this business is such that every time
NI.a- alb. M frtA n~ N ~,,p rA4,. c-..
Themselves they arc compelled to make
iMore for the farmers than they get for
thmcsicycs.
II We analyzc the work of such men we
zee that while they are not ~philanthro-
pists. and are all the time working for
their " profit, in effect they spend
their time. talent and energies in obtain
ing for the farmers the highest possible
price at the least possible expense.
BY the use of the telegraph they keep
In touch with all the markets of the
order TO take advantage of the slightest
increase In the demand. which would adj
vance prices. They also keep informed
AZ to all the channels of transportation
which. reach such markets and consumers.
IN order 10 be prepared at all times to
themselves of the cheapest means
81 transportation to reach the area OF
TO day. II some freight agent in any
part OF the United States. or IL any ship
which sails the seas lets q stitch drop in
tatcs. these market makers seem to know
4 by instinct and take advantage OF 1t
Instantly: In fact they scent Q low rate
quicker than a high price. They perform
= work for the farmers. which the farm
do for Themselves. 1t 10 work which even
tiie legislature cannot do for them. ~.
IN u fully developed market there is an
S.;'eI class Of dealers. who ~ elevators.
Hil-cs aud rates. They buy the grain.
~ &c II and carry 1t from the time Of the
s:n.:iai slut, Immediately following each
consumption. But the rOOters establish
the Lrises n they~ make the elevator
mcii pay mere than the equivalent Of the
iiisistst price which can be obtained u
n experience has proven that the elc-
water men in the nearby market town can
Afford 10 pay more thar the equivalent
town.
The mdisputable proof Of this PROPOSE
ton IL che fact that ! all highly developed
rain. aniaif they should refuse TO pay
more than such equivalent the ~"rooters''
would ship i.
d ~rccouhting tho demonstrations that =
fjcultural product. In the hands Of the
fogmers, I shall cite only examples with
which NJ are familiar.
! call attention first to the magnificent
obass been established In Omaha. Prior to
~ establishment, when b farmers OF
lgebraGka sold their live stock. they were
rice. icss the cost Of transportation. say
- miles. to Chicago Today they sell
sucli stock At the market price In Omaha.
less the cost Of transportataon, only 10
to Omaha, and h market price
&c Omaha n always nearly. and some
lfnlcA quite, ms high ~ Ct Chicago. II r
liWsys hsgSer than the equivalent market
y chicsac s nsrnep1; en z