The evening times. [volume] (Grand Forks, N.D.) 1906-1914, 1913-12-27
COMPETITION N GRAIN
BUYING IS DECLARED
tcontinued from Page III

" va IL ~ SSNSs Sld Nbko SCSSA.
monS tends to show merely a state Of
facts peculiar to this locality. or to
other localities subject to the COM
petitative influences Of a large Hour
mill. The freight rate upon wheat
from Jamestown. and the adjoining
wheat markets to the terminals, is
1Sc per hundred pounds, which re-
duced to bushels amounts to practi-
cailN sic per bushel, and for many
years the spread between the Min
neapolis III other terminal markets
n he town of Eldridge has been
10c. leaving practically a two cent
profit to the elevator to cover all Of
its expenses. profit. etc. This condi-
ton has existed for at least five years.
With the exception Of 1912. when the
margin of profit was three cent,
that during 1912 the wheat did not
have the same milling properties as
In other years. and there was not the
same local demand for it by the
jamestown mill.
The factor which has kept down
the margin Of profit during these
years II Eldridge. has been the exis-
tence of h Russell-Miller Milling
company at Jamestown. which Is on
tinually and actively in the market
for all Of the milling grain that it can
CIV AAOAu va AlS SCSlucIlI IlCNdlSI
company, has an elevator at Eldridgc.
and also n at Jamestown, and at
many other places. but this company
Is merely an arm of the Russell Miller
Milling company. II It's vocation is
to buy and store wheat against the
time when the RUSSELL Miller. Milling
company. will need 1t for its various
mills throughout the state and in 9TH
er localities. However. the Occiden,
] ESvAyntnA OnNN NNy >1cN l~,,.1 &Sl @So-
poses of all kinds Of grain the same
as other elevators. The presence Of
III mill at Jamestown operates to
furnish a strong market at all points
within hauling distance Of it, and this
is What Is known among elevators as
mill competition" and as a result:
the price of grain is always found to
be as high at these points az the eX-
| pense Of handling and marketing vii.
permit. and while it is conceded tina,
ordinarily an elevator OF ordinary di-
mansions and capacity must do bus:-
nes at not less than a three-cent
margin in order to prosper. yet at
| points within the radius of the mill
competition the elevators must find a
way to do business upon q smaller
margin or go out Of business.
1t would seem that the stimulus OF
( the three-cent margin Of 1912, u to
whatever cause, operated to induce q
number of farmers in the neighbour
hood Of Eldridge to buy a half in
terest in an independent elevator at
that point and organize a farmers
elevator company, but they had no
sooner done this than the market
vent up q cent a bushel and reduced
the three-cent margin to. a two-cent
margin. If this situation was nor
ma. and resulted from honest COM
petitive influences, it would be no vio-
lation Of the law by the Occident peo-
pie to pay 10 cents off Minneapolis at
Eldridge, though they might be pay
ing 9 cents off at jamestown, or IL
cents off at some otner point within
! the 1S-cent freight rate territory. and
the same is true of the Powers Ele-
vator company. FL it is forced py
reason Of the mill competition to pay
10 cents off at Eldridge. it does not
follow that it Is compelled to pay 10
cents OFF at Medina, or 9 cents Oft at
some other point, but the question to
be decided is whether market con-
dition sat Eldridge is a result OF the
inability of the elevator o compete
with the mill at jamestown without
paving q higher price. Or whether 1t
Is due to a conspiracy or agreement
among the elevators to pay a certin
price at Eldridge. This phase Of the
1 NdCS llldS NC uISIllSSCu Will The Hl3IS
statement that there is absolutely no
evidence, o has there been any at
tempt to prove on the part Of the
complainant that the price Of grain
at Eldridge has been fixed by any col
lusire agreement between the buyers,
and 1t may be assumed as a fact that
the price has been placed at its pres
ent figure because of the proximity to
Jamestown, and the fact that the
farmers can haul their grain to
Jamestown and get a higher price.
9. But while the price may be uni.
form and due entirely to competitive
influences and far from any c%ollusive
agreement yet it does not follow that
there are no other ways in which
the law might be violated, and in fact
there are several ways in which to
beat the devil around the stump"
and accomplish the same result as
though the law were openly violated.
For instance, it Is just as much a vio-
lation Of the law to collusively agree
upon the rate of dockage as it is to
agree upon the price. or to collusively
agree upon the grade Of the grain
purchased as it is to agree upon the
price. because the net return to the
producer is dependent upon the grade
and dockage Of the grain, and the
next question which faces the com
mission is as to whether there has
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