The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1913-12-27

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lie interest that the testimony Of the
individual witnesses should be review
ed. Suffice 1t to say that the testimo-
ny. tends to show merely a state of
facts peculiar to this locality. or to
other localities subject to the compel
itative influences Of a large flour mill.
The freight rate upon wheat from
Jamestown. and the adjoining wheat
markets to the terminals. is Is cents
per 100 pounds. which reduced to
bushels amounts to practically 81
cents per bushel. and for many years
the spread between the Minneapolis
or other terminal markets and the
town Of EIdridge has been 10 cents,
leaving practically a ,2-cent profit to
the elevator to cover all Of it's eXpens-
es, profit, etc. This condition has ex-
listed for at least five years, with the
exception Of 1912. when the margin OF
profit was 3 cents, which appears to
be due to the fact 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 1t
by the jamestown mill.
The factor which has kept down the
margin of profit during these years at
Eldridge, has been the existence of the
Russell Miller Milling 20. at James
town. which Is continually and active
ly in the market for all of the milling
grain that it can get hold Of. The o.
cident Elevator Co. has an elevator at
Eldridge, and also one at jamestown,
and at many other places, but this
company is merely an arm Of the Rus
sell Miller Milling Co., and it's voca-
ton is to buy and store wheat against
the time when the Russell Miller
Milling Co. will need it for its various
mills throughout the state and in 9th
or localities. However, the Occidenr
Elevator Co.. also buys and disposes
Of all kinds of grain the same as other
elevators. The presence of the 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 he as high
at these points as the expense OF
handling and marketing will permit,
and while 1t is conceded that ordin-
arily an elevator of ordinary dimen-
sions and capacity must do business
at not less than a Scent margin in
order to prosper, yet at points within
| the radius Of the mill competition the
elevators must find a way to do bust
ness upon a smaller margin or go out
Of business.
It would seem that the stimulus of
the 3-cent margin of 1912, due to
whatever cause, operated to induce a
number of farmers in the neighbour
hood of Eldridge to buy a half inter
est in an independent elevator at that
| point and organize a farmers elevator
company, but they had no sooner done
I this than the market went up l cent a
bushel and reduced the Scent margin
to a. 2~cent margin. If this situation
was normal, and resulted from honest
| competitive influences, it would be 10
violation Of the law by the Occidenr
people to pay 10 cents off Minneapolis
at Eldridge. though they might be
paying 9 cents off at Jamestown. or
II cents off at some other point with
in the 13-cent freight rate territory.
and the same is true of the Powers
! Elevator Co. If it Is forced by reason
Of the mill competition to pay 10 cents
| off at Eldridge, it'd oes not follow that
1t is compelled to pay 10 cents off at
| Medina, or 9 cents off at some other
point, but the question to be decided
Is whether market condition at Ed
ridge is a result Of the inability of the
elevator to- compete with the mill at
Jamestown without paying a higher
price. or whether 1t Is due to a con-
spiracy among the elevators to pay a
certain price at Eldridge.s This phase
of the case ma be dismissed with the
mere statement that there is absolute
ly no evidence. nor has there been any
attempt to prove On the part Of he
complainant, that the price of grain at
EIdridge has been fixed by any collu-
sive agreement between the buyers,
and it may he assumed as a fact that
the price has been placed at it's 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.
2. But while thep rice may be uni
form and due entirely to competitive
influences and far from any collusive
agreement, yet it does not follow that
there are no other ways In which the
law might be violated, n in fact
here are several ways in which to
,"oeat the devil around the stump" and
accomplish the same result as though
lie law were openly violated. For in
stance, 1t Is just as much a violation
of the law to collusively agree upon
the rate of dockage as 1t 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, be-
cause thaMnet return to the producer
is dependSat upon the grade and dock
age of the grain, and the next ques-
ton which faces the commission is as
to whether there has been any unfair
competitive means used by the elevat-
ors complained against at Eldridge In
the matter of docking or grading
grain purchased there. 1t is impossi-
BILE to raise wheat or grain without
there being more or less OF an admix-
ture of foul seed. technically called
dirt, in the grain. and while a great
deal OF this has a commercial value.
and in fact the members of The COM
mission well know that when the
dirt lis separated from the wheat II
sells for feed at practically the same
price as the wheat itself. yet before
The value of a busfel of wheat can be
determined, or In fact before the
weight of the wheat itself can be de-
ltermined. the dirt and foul seed must
he taken out. This Is done BIZ various
artificial methods; many Of which are
more or less imperfect, but by means
OF sleeves and other testing devices 1t
lis possible to arrive att a fair deter
nina ton OF tho amount OF dirt to be
found in N quantity Of grain whose