The Daily Missoulian. [volume] (Missoula, Mont.) 1904-1961, 1918-02-10
ISSUE new Mill
FEED DIRECTIONS
Rules Set Price Relations
Between Commercial Mill
Feeds and Wheat.
UNDER u. S. LICENSE
I. r. Rell Chairman Milling
UNDER U. S. LICENSE
]. F. Bell, Chairman Milling
Division Food Admins
tratiOn, Explains.

pN iSN II tbN'AiL7 'i'ti'
feeds, the L. $. food administration has
established d relation between the price
OF mill feeds and the price Of wheat.
The plan guarantees to farmer a direct
relationship between the price he re-
ceives for his wheat and the price he
pays for feed The regulations apply
to all mills engaged in the business Of
milling flour and feed from wheat and
licensed by the IT, S. food administra
ti0n.
The price of bran, bulk, {. o, b mill.
III carload lots, for one ton COCO
per cent of the average cost to such
mill OF one ton. Of wheat nj tho mill.
The price at the mill is determined
by the average cost to tho min Of the
wheat ground during the previous
month, plus an administration fee OF
one per cent paid J,y The mill on the
wheat so purchased and ground.
The regulations provide further that
on all invoices tile price shall be on the
basis of cash or draft. This is the
price, in bulk at the mill in carloads.
All invoices. moreover, shall show the
bulk price at the mill plus the price
Of sacks, items of freight and interest
II any, when goods are sold on extend
ed terms or credits.
Prices Not the Same in All Markets.
The rule does not mean that the
price of bran shall be Tie same in all
markets nor that it shall necessarily
reflect the freight differences between
any two markets. Had such "A plan been
followed. the results might have aa-
parently been to establish a more uni
form price. But inequalities In freight
would have probably resulted in ca di-
verting the flow. creating y surplus in
markets simultaneously placed and
to) shortages In markets less favor
ably located.
Tho plan adopted means that there Is
no advantage in mills shipping their
product far away. This guarantees
farmers supplies from the nearest
source Of production. II also tends to
keep his local min in operation and
give him the fun benefit of it's output
Figures for Specific Case,
Take a specific case. Let us say that
the price of wheat at Philadelphia is
1927 per bushel. A ton of wheat would
then cost S15.6T. Taking 3S per cent
of this would give Ms q price of $2S.i6
per ton. which is the bulk price for car
lots of bran at the mill in Philadelphia.
A mill located in Kansas City, for
example. pays $e1s for the wheat
which is s1l per ton. BY taking 3S
per cent OF this we have the, figure
O. ~ O i,,1 10, INN mi
that the mill at Kansas city may ask
Ger ton of bran bulk at the mill in
carload lots.
The freight between Kansas City and
Philadelphia Is $3.50 per ton, which
gives a bulk price of sa2.iS as against
mill price of S2S16 bulk. The differ
ence is S4.02, The Kansas City miller
therefore in shipping his goods to Phil
adelphia and meeting the competition
of the mill at Philadelphia grinding
wheat at the basic price would have
10 reduce his bran value $4.02 to meet
The competition. It is therefore dis
tinct advantage for the Kansas City
miller TO sell in his own market
This illustrative case can he readily
applied TO any freight difference by
aHiitS iIlt ltitpN AllS ilttit'l W fHIliliflA-
ing the maximum price that the mill
may ask for a ton of bran in carload
lots bulk {, .. h. mill. FIRST. ascertain
the actual cost to the mill al the wheat
ground. This cost is In" rrir" Of wheat
ground during TIA" previous month. Let
Us say the average cost was $2.1H per
bushel. Dividing This BY ca the nuntr
ber of pounds In a buah"l, Az get =
price OF 3ts cents pr pouud, on $40
per ton. IS per cent Of this is $3.50.
which is the maximum price per ton
for bulk bran AT the min IN carload
lots.
Fixed Difserentials for Other Mil
Feeds.
The other grades of mill feed ara
established on a fixed differvntiat tax
ing bran as the basic price. For shorts
or standard middlines, the maximum
charge may he SO per ton over the price
Of bran Mixed feeds may be 81 Der
ton over the price of bran. Flour mid
dlings may be 81 per ton. and Red Dog
SIS per ton over the price of bran. In
the case cited. the maximum price for
these feeds per ton bulk. f. o. b. mills
in carload lots. would consequently be
~ follows: shorts and standard mid
diings. $3.50; mixed feeds, $4,000;
flour middiings. 1880: Red Dog
S41.6e
Until further regulations are issued
maximum of so cents per ton differ.
entlal on feed sold and shipped in les.
than carload lots will be permitted.
in arriving at the price several things