The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1920-11-15
MILLS MAKE REPLY
Flour Supply Was Not Dis
turbed, Millers Say.
Northern Operators Invade
Kansas Trade Territory.
FORCED TO REDUCE OUTPUT
Only Ten Per Cent of Produce
ton Used i'm This State.
Local Firms Give Many Rea-
sons for Slump.
FORCED TO REDUCE OUTPUT

Reduced outputs by Topeka mills
did not disturb the flour supply for
Kansas, the industrial court was told
today. Northern mills were declared
to be invading trade territories of Kan
sas mills in the east with prices below
those of southwestern millers. OF the
normal output by mills of this state.
only 10 per cent of the production was
consumed within the state.
Compelled to Reduce Output.
Local millers who today appeared
before the industrial court under a
citation for suspending production. de-
clared they We're compelled to reduce
output because of slump in demand
for Kansas made flour. Officials OF
Topeka mills told the court that the
mills under existing conditions might
be able to operate two-thirds capacity.
Many reasons were assigned for ex-
isting conditions. 1t was denied that
! there was move to reduce flour pro-
duction under an agreement. Market
| ing conditions were declared largely
responsible.
Buy Grain Cheaper.
Canadian milled flour is now being
sold in this country In competition
with domestic product. witnesses said.
They also told the court that Canadian
wheat is permitted to enter this coun-
! try duty free. This permits Minne-
apolis and other northern mills to buy
grain much cheaper than Kansas MIL
lers can buy southwestern wheat. In
consequence product of the Kansas
mills is undersold 81 to st.50 a barrel.
Under the Lever act President Will
son might declare a protective duty on
Canadian wheat. Such course has not
been taken, the court was advised.
| Would Raise Price of Flour.
| "a protective tariff on wheat would
| in fph
| s. Jackson, attorney for the court.
Eyes Also higher wheat" replied
s. p. Cramer. president of the Topeka
Flour Mills company. kansas wheat
growers have lost heavily because of
the situation"
/ Cramer said general financial condi-
Itions entered somewhat into the flour
| situation. He also ascribed much
trouble to the export situation and 10
| Canadian exchange.
i For a time, Cramer declared there
was differential OF % to AZ cents
between mill products and flour. Thus
export business was lost to American
Emillers.
i Big Price slump Here.
Whether the consumer is receiving
benefits of the market situation or not.
flour prices have taken a big slump,
Topeka millers testified. They said
that price of Topeka made flour had
dropped SO to 81 a barred since Sep
tember 1. Wheat is bought by the
! mills as flour is marketed, Cramer tes-
titled. Cramer's mill has enough
wheat bought to maintain plant ca
pacity sixty days.
Only b small per cent of the Kansas
made flour is sold for use in this state.
now being sold in this state, il was de-
clared. This is due to unfavorable
conditions facing Kansas millers.
Kansas mills produce is, 100000 to
20, 900 barrels of flour a year the
court was told. Last year the mills
in this state ground 100000 BUSH
els of wheat.
| OF the total output, Kansas con-
sumed 1.750,000 barrels or less than
ten per cent of the state mill produc-
ton.
Run two-Thirds Capacity.
What are your future intentions %
aske Jackson.
I'VE intend to run as much as pos
/ sible," said Cramer
Can you estimately approxi-
mately?'
/ Il have no idea"
will it be two-thirds capacity un-
der present conditions?"
Il hope SO. 1 believe we can do
that
Exports have kept up the price Of
wheat, millers said. while wheat ana
not manufe ctured flour has gone over
seas. Eighty per cent of the export
is in foreign boats. A protective tar
riff would remove discrimination
against domestic wheat growers and
| millers, it was asserted, and relieve
much of the present trouble. II
| would, however, result in high prices
for flour and wheat
Earn Good Profit.
Armin Fassler, representing the
| Inter Ocean Mills. said his company
| had earned a good profit during the
fiscal year ending July /. Since that
time, tho, the mill has been losing
| money.
! During the twelve months ending
November l." said FassIer, "our ouo-
tations for flour changed 1T times
That is an average of once every one
and seven-tenths days"
! Cramer denied that his mill had
( discharged men because they were in
the recent mill strike in Topeka or
had released skilled workers. He said
| his mill is now using "a men as against
A a few weeks ago.
! "All of the men released were given
a weeks notice." he said. None OF
them were skilled nillers. They were
, in the common labor class"
| The hearing by the. Industrial court
Is the first under the provisions of the
state law prohibiting curtailment OF
production in essential industries ana
! may go to the supreme court for final
Interpretation of the provision OF the
| Industrial court law.