The Mellette County pioneer. [volume] (Wood, Mellette County, S.D.) 19??-1971, 1919-04-11
FLOUR MILLS.

1t is much to be regretted that q
report of the exhaustive investiga-
ton, made by the Federal Trade
Commission on Touring mills is not
available, for we have reason to be-
lieve it will bring our important
facts and point the way for solution
of this problem through Federal
legislation.
What has been said with reference
to terminal elevators has much bear
ing on -four mills. One Of the very
large items of expense in this indus
try is that of fuel. This gives a big
advantage to the water-power driven
Touring mills in Minneapolis. Mills
located in South Dakota have SO far,
necessarily, depended on high priced
coal.
At many points within the state,
attempts have been made to operate
Touring mills, but the industry, as a
| rule, has not been profitable under
normal conditions. This lack of sue
cess was largely due, not only to ex-
pensive power, but also to inequality
of freight rates in this state as COM
pared with rates granted outside
mills, or the large Minnesota mills,
which do business in this territory,
which rates, as already pointed out,
cannot be controlled by state legisla-
ton.
Many of the mills have been turned
to other uses. Under the regula-
tions Of the Food Administration and
lack of facilities for tran oceanic
shipment existing during the war, the
al f-y, ar1u nIncnI hnyn IN ,,,nnt
cases, conducted a profitable bust
ness, but it is fair to assume that
these conditions are only temporary.
The project Of our water power
development, with it's possibilities
for cheap power, may change condi-
tons within a few years, and give
a decided advantage to mills located
within u borders.
Furthermore, it now seem certain
that one of our neighboring states
will soon enter into the terminal ele-
vator and milling business on Il large
scale, for which a preliminary ap-
preparation Of $4,000, 100000 seems
certain, and it will undoubtedly be
Illuminating and instructive for US to
wait and see what the results are.
All things considered, We do not
think it wise for the state to go into
the milling business at this time.
TERMINAL ELEVATORS.
Terminal elevators perform many
functions such as storing, drying,
cleaning and mixing Of grain; the
drying and cleaning and mixing is
frequently called conditioning"
The Committee found that many
terminal elevators are for rent, or
ment, owing to the fact that mills
are taking more Of the grain direct
and also owing to the fact that the
use of such elevators as conditioning
houses has declined sharply, as ia
cilities for cleaning at local elevators
have increased, resulting in keeping
screenings within the state.
There are no terminal elevators
in this state, nor are there any state
owned terminal elevators in this
country. The experiment has been
tried out in the provinces Of Canada
during the last twenty years. This
public ownership plan Of our neigh
Dor seems to have been a failure, for
such terminals are now either I'm ppi-
vate ownership or leased to private
organizations. The Cooperative
movement in Canada has, howe rer,
removed most of the grain market ne
difficulties.
These provinces in Canada lad
one decided advantage over South
Dakota. Most OF their grain went to
market through one or two gateways,
aud farmers in different parts Of the
provinces could reach the terminal
elevator without back haul" re-
sulting in extra freight charges. The
situation in North Dakota Is quite
similar, as a very large per cent OF
the grain raised within its borders
may be routed to leave the state at
a single point without such routing
over the railroads az would result in
extra freight charges.
The situation in South Dakota Is