The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1920-08-26
n, D. OFFICIALS
HELD AT FAULT
ON WHEAT PRICE
Failure to Act to Save Car Sup
ply May Cost State
Heavily
FARMERS ARE THE LOSERS
Elevators Unable to Pay on
Present Market Because
of Lack of Cars
FARMERS ARE THE LOSERS

Failure to grasp the railroad stu
alton is costing North Dakota thou
sands, perhaps millions of dol
lars. .m0 =
North Dakota is paying, and will
continue to pay, in the opinion of we'll
informed men, because the situation
now faced by the state was not rec
ognized in time.
Not until the grain crop was ready
for harvest, and only after Minnesota
officials led the way, did North Da-
kota officials take action to get
enough cars to move the states crop.
Elevators are buying wheat at the
December delivery price now instead
of the cash price," said an official OF
the state government today. Mr.. Nc
Govern charges that the farmers will
lose millions of dollars.
Car Supply Short.
"The reason for this" he continued,
"is because elevators have no assur-
ance of an adequate car supply. The
situation may be relieved in time, but
the prospects are that these elevators
may have to hold large part of the
grain for three months or more. That
means they will sell the wheat at
about the time December prices be.
come cash prices. They must borrow
money to pay the farmers for their
wheat. If they paid the cash price
which now rules on the Minneapolis
market they will lose money; if they
pay the December price they may
make or lose money, but more prob
ably will break even on a normal
profit"
If the state officials had recognized
the situation months ago; had gone to
the Interstate Commerce Commission
and demanded that the railroads serv-
ing North Dakota be returned their
own cars, the situation would have
been saved. But only a few weeks ago
was concerted action taken. Grain
cars now are moving west in large
quantities. Just how man are NOV
ing is undetermined, but there is an
improvements in the situation.
Some railroad officials expect the
movement to continue for two or
three months before there is a really
adequate supply of cars on hand.
Minnesota Acted First.
The seriousness of the situation, it
was pointed out today, was first real
lied by Governor Burnquist, of Min
nesota, who started action in which
North Dakota and South Dakota fol-
lowed. He already had an organiza-
ton working before these other states
joined in. When the matter was fin
ally impressed on the Interstate COM
merce Commission prompt action was
taken with rate cases hanging fire,
with traffic congestion in big cities
constantly facing the commission and
with the outlaw strikes in progress,
the northwest was not given volUn-
tary attention.
tary attention. It was the Bankers
association, at it's convention at VAL
ley City, that started action in the
state.
Empty Advice. -
Many farmers want Immediately to
sell their grain to liquidate debts, al
though j. A. McGovern, deputy state
grain inspector, advises them to hold
it. A large part of the crop will have
to be held, because elevators soon
will be filled up and will not be clean
ed out as rapidly as they should. NC
Governs advice, therefore, is consid-
cred by many waste of words.
Had the officials of the state FORE
seen the situation the results might
have been entirely different, it is held
by many shippers.
Local Price Higher
Not all wheat is being bought on
the December price The Russell
Miller company, for example, which
manufactures flour buys wheat on the
straight arrival" price in Minneap-
+ oils, which is higher than the De-
cember price. 1t can do this because
it sells flour and can sell ahead
enough to warrant! this price. The
same thing can be done with any
flour mill, but the line elevator, \
grain man explains, can only get
money for his wheat when he sells
it, and he faces the prospect of not
being able to sell it until the Decem-
h1r ,1r;oo Looovooo Tho rocI rriro