Great Falls tribune. [volume] (Great Falls, Mont.) 1921-current, 1921-09-27
FARMERS INFORMED
WHEAT BUSINESS IS
RUNNING HANDLERS
Continued from Page One.

| wanted complete restoration Of the
two-cent charge and explained that
this was not the only factor upon
which the farmers were paying in
creased costs, but that nearly every
factor contributed to his expense with
wheat at about half the price of a wear
ago.
Mr.. Williams, of Yellowstone county,
said the elevator man should be fair to
the man who was on his last pins. the
man who has no means and who is at
the mercy of the banks being particu-
larly in need of this reduction.
He said the elevators should cooper
ate with the farmers TO enable them
to get reasonable returns on tneir
crops. He said the man with means
and who could handle his wheat without
the necessity of putting it through the
elevators could save money and that
in the vicinity Of Harrison they were
doing that same thing. AS conse
quence the elevators were losing Gus
tom.
Admits High Expenses.
John Dexter, editor Of the North
western Stockman and Farmer. pre-
elevators could not expect to handle
grain on storage basis at the pres
ent figures unless they diversified, as
does the farmer. He stated there were
5S3 elevators operating in the state
last year. with an average capacity Of
10000 bushels and value Of $4,000.
He said he had found it would cost
$500 per year to keep an elevator
going. that the crop Of 1920 amounted
to p 100000 bushels and. figuring that
80 per cent Of this passed through the
elevators. world mean 19,650OOO bush
els. or 1892 bushels to the elevator,
and at rate Of 4 cents per bushel this
would mean an income Of bnt 81 .334.4S
per elevator. He said it would require
the marketing Of 100.O0O.OOO bushels
in these 5S3 elevators in order to pay
interest on the investment at ? cents
per bushel
Mr.. Dexter held that to operate on
strictly storage basis the elevators
must charge nearer 10 cents per bushel.
unless they find some other source of
revenue. He held that the elevator man
could not expect to operate his plant
for four or five months and expect that.
to carry him through the year. They
must diversity, he said. but be held
the elevator charge should be reduced
to 2 cents. because they should share
with the farmers in the hazards of the
business.
Can Be Done Cheaper.
Commissioner Davis read a number
of letters from grain growers Of the
4 cents, one from George P. Finch of
Bozeman. stating that his individual
crop would have been handled by hand
at saving of $500 from the cost under
the present elevator charge and he felt
that. with the improved machinery of
the elevators. they could well handle |
it for less than he could do it.
John G. Critics, receiver for the Mon |
tana Grain Growers, said that any |
elevator which confined its operations
to handling grain at either two or four |
cents per bnshel is doomed to destruc
ton. He said that at least IS per cent
If the grain in the past had been sold
through the elevators and only the very i
small remaining portion had been sub
iected to the handling charge and that
lad to be absorbed by the margin of
profit he got when he sold purchased
wheat He said the tendency now is
% handle more without direct sale as
he result Of the formation Of farmer
associations or agreements.
The defense Of the elevator men was
directed by G. T. vandenover. Of Min
leapolis, form erly Of Great Falls. who
irst questioned p. r. Fisher. Of the
;allatin Valley Milling company Mr.
Fisher gave figures of the cost Of the
operation of the 33 Montana elevators
,wned by his company which. including
ahor. power. taxes, fees, insurance,
epairs, supplies, general office ex-
lense, depreciation and interest on in
estment. made an average Of 81, 1877
'er elevator He thought that, if any
hing, the operating cost was even