Standard Oil Company; Trusts, Industrial -- United States
At Minneapolis, the seat of the greatest flour-manufacturing industry
in the world, the elevators and railroads have united against the
wheat-growers in a way which does much to realize the dream of the
miller, of "cheaper wheat and dearer flour." A committee of the
Minnesota legislature investigated this combination in 1892. The
majority stopped short of reporting that it fixed the prices of wheat,
but admitted that some of the testimony tended that way, and that
the evidence "would seem to establish" that one of the most powerful
railroads had done so, and "had attempted to coerce compliance with
its requirements in the matter of prices by threats to embarrass the
business of local buyers."[30] A report from a minority of the same
committee was more outspoken. It summarizes the evidence, which shows
that the railroads and the elevator companies united to enforce a
uniform price for wheat. This price was six and a quarter cents below
what it should be. All the railroads adjusted their freight rates to
the artificial "list-price," and though rivals, they all charged the
same rates. The elevator companies, owning an aggregate of fifteen
hundred elevators, had a common agent who sent word daily, by telegram
and letter, to all wheat-buyers as to the price to be paid the farmers.
The report calculates the amount thereby taken from the wheat-growers
by the elevators at from four to five millions of dollars a year.
The findings of this report were ratified by the adoption of its
suggestions for a remedy. "There is," it said, "no agency but the State
itself adequate to protect, now, the producer of wheat in Minnesota
and the Northwest from the influence of this combine." It therefore
recommended the erection and operation of elevators by the State. This
was approved by the Legislature and by the Governor, appropriations
were made, and the officials of the State went forward with the plan
until the Supreme Court of the State stopped them on the ground of
"unconstitutionality."
That which we see the national associations of winter-wheat millers and
spring-wheat millers, and the fish, and the egg, and the fruit, and the
salt, and the preserves, and other combinations reaching out to do for
a "free breakfast table," to put the "square meal" out of the reach of
the "square eater," has been achieved to the last detail in sugar and
meat. Every half-cent up or down in the price of sugar makes a loss or
gain to the sugar combination at the rate of $20,000,000 a year. When
it was capitalized for $50,000,000 it paid dividends of $5,000,000 a
year. The value of the refineries in the combination was put by the New
York Legislative Investigation of 1891 at $7,000,000.
Public-domain text, read in full here on John Shaqi.
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