New Ulm review. (New Ulm, Brown County, Minn.) 1892-1961, 1916-03-08
IMPLEMENT I B | |! NJ COSTS CT s rs
INCREASED e BY WAR v R
Rising Cost of Materials Forces Up
Price of Farm. Implements
This Year. -
Raise in Cost of Materials Unpre-
cedented, Caused by the
Great War.

The effects of the European war on the
commercial world, particularly in this
country, are becoming more apparent
and constantly, evidence themselves
through different channels. One of the
first effects was an increase in values of
farm products, and other effects have
been increased activity in various lines
of manufacture, particularly those in
which iron and steel play an important
part.
It is the effect on the iron and steel
market which comes closest to the farm
ing community, because of the vast
tonnage of iron and steel products con-
sumed in the implement industry, and the
Importance of implements in agriculture.
Perhaps never in history, have the prices
of such materials as enter most largely
into the manufacture of agricultural i'm
plements advanced so rapidly in so short
time.
Since January 1, 1914, some of the
necessary materials for the manufacture
of implements have doubled in price,
while others have increased some so to
80 per cent. The citation of few of the
advances will serve to illustrate the con-
dition: Bar steel, IS per cent; pig iron,
so per cent; sheet steel, 100 per cent; oil
rail steel, 60 per cent; galvanized sheet
steel, IS per cent.
In some special lines, tie advances
have been still more pronounced. For
instance, the advance in tool steel is 700
per cent; in high speed drills, 260 per cent;
while in the prosaic item of bolts, the ad-
vance is ITO per cent, and in linseed oil,
the principal ingredient of paints, 100 per
cent.
Some other items are cited to show that
the advance has not been on a few
special kinds of material: discs, so per
cent; pillow beams, IS per cent; harrow
teeth, 81 per cent; lumber, 20 per cent;
paint, rs per cent.
The above data is sufficient to de-
monstrate the need for an advance in
prices of finished implements. With
material of all kinds costing more, neither
the manufacturer, the jobber, nor the
retailer of farm implements is in a posi-
ton to absorb the increased cost, and
it would be impossible even to distribute
it among the three branches of the trade.
During the past four or five years, there
have been slight increases in the price
of implements; each one amounting to but
very little (perhaps fifty cents on dol
lar on gang pillow or drill, land these
advances have been absorbed between
the manufacture and the retail dealer.
But with conditions such as these it is
not possible, nor reasonable to expect,
those engaged in the manufacture and
sale OF implements to carry the burden.
1t is necessary to pass it on to the con-
sumner.
Farmers and other consumers of i'm
plements, vehicles, etc., are perhaps
familiar with market conditions in a
general way, but many of them are not
posted as to actual facts. The above
explanation of the conditions will put
the public in a position to know Just
what the situation is as regards the raw
material used in the manufacture of
agricultural implements. This condi-
ton is due, not to any act on the part of
those engaged in the implement business,
either voluntary or involuntary, but is
created entirely by conditions beyond
their control.
J AS a result of the increased cost of
material, manufacturers have found it
necessary to increase the cost of the
finished product, and an advance in
prices has been announced, effective i'm
mediately. The increases are based on
the added cost of manufacturing, and
are sufficient to warrant the retail dealer
in increasing his prices about Is per cent,
to cover the added purchase price and
the necessarily higher cost of doing
business.
Ever since war was declared, the far
mers have been deriving benefits from
the higher price of grain and other farm
products; and they, in turn, will not deny
to the manufacturer of implements and
the merchant engaged in the sale thereof
the right to advance selling prices to
meet increased cost of production. With
wheat selling for from $1.10 to $1.40 a
bushel at the primary market, the far.
mer is in position to meet the increased
cost of his machinery with equanimity.
His 1914 crop was saleable at high prices
and his 1915 crop, which was record
breaker, has brought top prices ever
since the first shipment was hauled to
market. Manufacturers of implements
have known for months that an advance
in prices was inevitable but the announce.
ment was held back until after most OF
the spring requirements had been filled,