The producers news. [volume] (Plentywood, Mont.) 1918-1937, 1927-09-16
MILLERS ARE PRIME PROFTTEERS

Profits of the giant milling combines increase
the spread between what the farmer gets for his
products and what the wage Garner pays for his
daily Bread says Leland Olds of the Federated
Press. These profits made although the Amer
lean milling industry is 100 per cent overexpanded
averaging, according to department of commerce
figures, only Sc per cent of capacity operation
throughout the year.
The exorbitant mill profits are revealed in a
Wall Street Journal analysis of the reports of 8
leading companies for the year ended June 30,
1927. Stockholders in these concerns, which turn
out products known in every household, got back
In single year from fifth to two-thrds of their
entire original investment Compared with the
year ended June 80 1926, the share of the con-
sumers dollar taken by these companies actually
doubled
Washburn-Cro Co., makers of Gold Medal
flours, leads with daily capacity for producing
about 10000 barrels. Although the companvs
gross business decreased from 11$45O6 1888 in 1926
TO $90,S93,l37 in 1927, its profit increased from
1S43|,126 to $2,55O,S98, giving common stockhold-
ers return of $29.98 a share. If allowance is
mace Tor stock dividends and changes in capitali-
cation IN recent years this represents return of
ABOUT IN per cent on the prewar investment of
the owners. Washburn-C rosby's profit per dollar
OF sales increased from 125c in 1926 TO 265c in
1927
Plllsbury Flour comes second in size but leads
IN profits. 1t has daily capacity of more than
5S,OOO barrels of flour and 10000 cases of cereals
Its total business decreased from $50. 59O3 in
1926 to $75,954, lis this year but its profit in
creased from 1854, 428 to $2766271. This wears
profit gives the owners 3.65c out of each dollars IF
sales, compared with 185c in 1926 while Stock
holders got a return of 1874 share If we take
INTO account recent stock dividends and chances in
the par value of the stock this years profit means
return OF about 70 per cent on the investment If
of the owners.
standard Milling Co., with a daily capacity Of
about 10000 barrels of flour in addition to various
package cereals, is the only one of the three with
ulrect Wall Street banker control It's nrodncts
include Heckers Superlative Flour, Ceresota H-O
oatmeal and Force 1t does not reveal its total
safes put 1t profits for the year enedd June 90
amounted to $1772,752, return of S11.O7 ner
snare Oh common stock. If we take into account
recent stock dividends this means a return Of
ment.
[lour mining IS an industry in which the value
auued oy manufacture is only a small per cent If
the sales value of the product Accordina - 49,
1870 census Of manufactures 151bc ont of zach
dollar paid the mills for flour covers +l,o 80
coSV OF manufacture including the profits and sales
expense OF the milling companies. Wage earners
employed in the mills get only &c out of each
dollar which pays them an average annual WAGE
of $1183 annual wage
Inc l9zI profit of the milling companies. rang
Ing from z'o0c on>the dollar in the case of WASH
our-OrosOy to S65c in the case of Pillsbury. thus
represents from 1880 to 22.496 of the en+iro
Vaiue ADDED by the milling process including the
o1Sc Oh competitive selling. Labor gets only about
nv no per cent OF the value added by its efforts
mus 'ne more lucrative mills absorb almost as
rlaon Oh Vne consumers dollar in profits as labor
ee'S loF operating the machinery of production.