The producers news. [volume] (Plentywood, Mont.) 1918-1937, 1920-05-07
WHEAT PRICE Up
FEED COST DOWN
Secretary Anderson Analyses
Effect of State Mills and
Elevators.

he industrial commission. has issued II
statement which points out the iinnn-
'ial advantages which will accrue TO
forth Dakota's wheat growers. flour
consumers and feed buyers. as the re-
| suit of tho Stntcown,ri system of flour
! mills and elevators.
These advantages will he Of two
classes. says Mr.. Anderson. First
t"llr> The actual cash gained by III"
farmers in selling their wheat. and Ivy
IN" consumers by purchasing flour and
InlI feed from the state plant: and
! second. are ilo>" gained through the
effect Of the state mill system as II
competitor u; III" lrivat" mills.
Hy way "f illustrating what may be
expected of the Grand Forks and other
mills. to he built 10y the state, Mr.. An
drrSOn shows what the Drake mills has
done In these two lines. lie produces
figures showing that In the yearly
operation Of the Drake mill, 49, 800
bushels Of wheat will be consumed.
and 10000 barrels Of flour and LILO
tons Of mill feed will he produced.
All allowances ar" made for what the
millcrs term "invisibIc loss" and other
shrinkngcs.
Boosts Wheat ~ Cents.
investigations made by Manager
!. A. McEovern. Mr.. L,leilrs and myself
indicntc that the Drake mill has paid
| conservativcly II cents per busllel
more for wheat than has been paid
generally throughout the state, taking
grldeS and freight rates into consider
atiOn." declares Mr.. Anderson. 1.-The
selling prices of the Drake mill aver
age 80 cents per barrel on flour and
$3.50 per ton on feed less than the
average price being charged through
out the state by other mills. Based
on tn" figures Of the production Of the
mill, the saving I" the people Of North
Dakota in consequence is $:,3.S2J
"I',It these figures do no: Tell the
whole story. As y consequence Of the
Increased price being paid ut Drake
for wheat. prices paid generally
throughout that s"ctinn are higher
than in her paris If Ill" state. The
price ut which flour and feed is being
sold by other mills is naturally less
in con <"ulirnr" Of the IrnH" compete
ton. In several towns il,rn,,"hul; the
state WHERE. he Drake mill has shipped
i'"ur prices 1T "Ilirl, mills located in
that section sell -four and feed have
been r'ri,n"h. This. hnIr.v"". is not
, taken into consideration in the rS:i.
u|le previously. ilnu=l, all has in
, >urrh I" I'll" benefit Of til" state OF
! North Dakota"
Will Save SIS 100000 Yearly.
ApIIyin" the formula p,n'lrtrh by
| the operation Of III" Drak. MIL to tIr'
entire grain industry. as controlled! 10y
the state with the erection Of its >ys.
ten Of mills and elevators. Nj. Andcr-
son continued:
"The annual produciinn of wheat in
the stat" is approximately 12I.Et'.Mnj
bushels. If tn" state by gnii,. into the
milling business can increase the price
paid to the farmer II cents per bu>hci
on an average this will amount to /,
saving Of S13.NO.hD annually.
1T means Il further saving Of ut
least so cents per barrel on all the
flour bought in the state. and $3.50 per
ton on all the feed used, Or approx
mately $15,GOO.OOO per year, ever,
should the milling operations Of the
larger mills to be built be no more
efficient than the small mill at Drake.
1T is safe. however. to say that u
mill Of 800 barrels daily capacity or
lnrgcr could reduce the cost Of pro-
| lucing flour under What 1t now costs
at the Drake mill. The overhead ex.
pense on n mill the size Of the one mt
Drake is practically as high as on u
mill Of 500 barrels capacity. The in.
crease in cost would be largely In the
matter Of fuel and common labor. In
other words. 1t would require no more
high priced labor for a 500 barrel mill
than it does for a mill Of 125 barrels
capacity.
Stops Local Monopoly.
1T is very common practice among
milIrrs to figure large margin Of
profit on business secured in the ter
rit0ry in which their mills are located,
since they have practically n m0nop-
oily. Such mills in selling on the large
markets like Chicago. New York and In
Europe. are compelled to meet the clos
est competition. Often sales are made
on these markets at less than the ac-
tual cost Of production. and In order
to enable the mills to show a profit on
their operations they are compelled to
charge long prices in the local terri
tory. Should the state Of North Da-
kota build a number Of small mills
throughout the state. such long profits
as far as North Dakota is concerned
would be thing Of the past
"One Of the most valuable advan-
tages gained in connection with the
state ownership Of mills in North Da-
kota is the encouragement given to
dairying. as consequence Of cheap
prices on mill feeds. thus making Dos
sible more diversified farming and all
the advantages in consequence there