1 Data furnished by Mr. E. S. Tompkins, special agent, St. Louis, Mo. 12. EASTWARD RATES ON WOOL. Statement showing rates on wool in bales, in carload lots, from the points named below to Boston, Mass., and Philadelphia, Pa. 1 [Rates in cents per 100 pounds in effect June 12, 1900.] 1 Furnished by Secretary Cornelius Hedges, board of sheep commissioners, Helena, Mont. Northern Pacific Railroad rates on wool, 1899.1 [All rail and rail and water being the same on the Northern Pacific.] These figures are based on a minimum shipment of 20.000 pounds, or a carload of baled wool, it being all pressed and baled at the wool warehouses before shipment 1 Furnished by Secretary Cornelius Hedges, board of sheep commissioners, Helena, Mont. Great Falls and Billings are by far the largest wool-shipping points in Montana and on the two different lines operating in the State. The rates from Benton, on the Great Northern, would be the same as from Great Falls, and from Big Timber, on the Northern Pacific, the same as Billings. The railroads, we are advised, fix a schedule of rates for each year good only for that shipping season. Statement showing rates on wool, carloads and distances from points named below to Boston, Mass., and Philadelphia, Pa.' 13. WOOL RECEIPTS AND SHIPMENTS AT CHICAGO, 1853 TO 1898, 14. THE WOOL TRADE OF THE PACIFIC COAST. Wool goes to market in California in what is known as woolpacks, which cost 34 cents per bale-the bales averaging 330 pounds in weight-as against 31 cents in 1899. Three-fifths of the crop is sold at interior points, payable cash there when weighed, any loading charges being paid by the buyer. When so bought in the country no commission is charged, as the wool is sold by the grower direct to the purchaser. The other two-fifths of the crop is sent to the commission men in San Francisco, who charge one-half cent per pound as commission on such wool. There are further charges of drayage of 10 cents per bale from cars to warehouses; storage for 1 month at 15 cents per bale; and an additional 15 cents per bale for every month the stuff remains in store. There is also insurance for the time the wool is in store at the the rate of 1 per cent for 12 months. The country charges for loading average about 5 cents per bale; shearing costs from about 6 to 8 cents per head, and the yield per head will average 10 pounds per head for both spring and fall in the southern part of the State, and 7 pounds per head for both spring and fall in the northern part of the State. Wool rates from California productive points. Prices and expenses of distribution at Portland, Oreg. The wool business as it is now handled in Oregon and Washington undoubtedly militates against the best interests of the grower. Practically everything is handled "in the grease," and as the limited scouring-mill capacity and demand for stock for local mills takes up but a very small proportion of the vast output of the 2 States, the loss to the grower through freight on grease and dirt is very heavy. Owing to the fact that such a large proportion of the clip is shipped to the Eastern markets, buyers for these markets practically fix the price for the clip and the local mills are not obliged to pay any premium over that paid by the Eastern buyers. The figures given above are the Portland prices paid by buyers for both the mills and for shipment to the East, and are representative of the prices paid by the scouring mills. Leading point at which stocks are accumulated for shipment are The Dalles, Oreg., for the districts east of the Cascade Mountains, and at Corvallis, Oreg., for the Willamette Valley wool. The freight from Corvallis to Portland, a distance of 97 miles, is 264 cents per 100 pounds; from The Dalles, a distance of 88 miles, 25 cents per 100 pounds. The latter point is on the Columbia River and is the shipping point for the largest wool district in Washington, the wool being taken from the ranches by team and ferried across the Columbia River. It is also an equally prominent accumulating point for Oregon wool. A large scouring mill is now in course of construction at this point. Other 1 Reported by Mr. T. C. Friedlander, special agent, San Francisco, Cal. eastern Oregon points of nearly equal importance are Heppner, Oreg., and Pendleton, Oreg., a scouring mill being in operation at the latter place. Wool dealers who handle the stock on commission charge 5 per cent on small lots and 24 per cent on large lots. The cost of distribution as figured above is based on an average between these rates. There has never been any well-directed effort toward perfecting a combination among the buyers, so that in this respect the grower undoubtedly gets about all that could be expected out of his wool in the grease state. A not infrequent practice among growers is that of "pooling "a number of small lots into one large lot and either consigning it to be sold on commission or asking bids from different buyers. This of course proves beneficial, as in the first case it lessens the expense of commission in selling, and in the second secures the premium which is always paid for a large lot over a number of scattered small lots which must be collected by the purchaser. 15. LOCAL CONSUMPTION AND FARM PRICES. An effort was made in the case of wool, as in the case of cotton, to ascertain what effect the existence of local mills had upon farm prices, and on what basis these local mills bought for their own consumption. The following reply from the secretary of the Clinton Woolen Mills, of Clinton, Mich., is taken to represent the position of this kind of demand in relation to the general market and in relation to the producer. It is seen from the statement made in this connection that while small local mills do not influence the general level of prices throughout any considerable territory, they nevertheless do contribute appreciably to the reduction of the difference between the average farm price and the price at seaboard markets-that is, the effect of these local markets is to keep the charge for distribution from such points to the Eastern markets at a minimum. How this affects the producer the letter in question explains, as follows: UNITED STATES INDUSTRIAL COMMISSION, MY DEAR SIR: This agency of the United States Industrial Commission is making an inquiry into the factors which enter into the determination of farm prices. As your mills are located in a district where farmers produce wool, we should like to ask of you on what basis you buy for your own consumption—that is, do you take into account the Chicago prices or Eastern prices at Boston or Philadelphia, and then deduct freight to these points and make the balance your basis of price which you ought to pay, or what you have to pay? Or does the price you usually have to pay to get wool run higher than this difference between the price of Eastern consuming centers and freight from Michigan points to the East? We are trying, as you may see, to ascertain to what extent the mills and the trade in your locality actually compete for the farmers' wool product. Any information you may be able to give me on this subject will be heartily appreciated. We inclose franked envelope for reply, and thanking you in advance, beg to remain, JOHN F. CROWELL, Expert Agent. Yours, sincerely, SECRETARY CLINTON WOOLEN MILLS, Clinton, Mich. CLINTON, MICH., June 4, 1900. DEAR SIR: Replying to your communication, would say that we base our prices to farmers (or try to do so) on the values of wool on the seaboard markets, allowing about 2 cents for the cost of getting the wool there and selling same. There can be no absolute rule, however, to guide one. There are so many different grades of wool, and so various is the condition of different lots, and so many buyers whose judgment differs both as to grade and condition, that statistics on this point will, as it seems to me, have but little practical value. Then there are a new lot of buyers every year who think there is a mine of wealth in the wool business, and who have to get their eye teeth cut in some way; these men go around and pay 1 or 2 cents more than the wool is worth based upon market reports, trusting to an advance or to luck to bring them out without loss, so that the farmer usually gets the benefit, anyway. Then the value of wool in the markets varies with the ideas of the commission men. Some of them are "bulls" and some are "bears." Two reports received by us this morning illustrate this point. One of these quotes Michigan fine unwashed at 18-19, while the other quotes the same grade at 20–21. Both these reports are from Philadelphia and both are of same date. Yours, truly, W. G. KIMBA LL. PART TENTH. DISTRIBUTION OF FARM PRODUCTS IN CITY MARKETS. 1. Cincinnati as a farm market (1) Marketing farm produce by wagon.. (2) Fruit auctions at Cincinnati. (3) Truck market and pools... (4) Cold storage in Cincinnati. (5) Handling of hay at Cincinnati (6) Statistical results-expenses of distribution (7) Commission charges, establishments, etc., at Cincinnati (8) Main shipping points from productive territory 2. St. Louis as a produce market. (1) The egg trade of St. Louis. (2) The orange market in St. Louis. (3) Expenses of marketing potatoes.. (4) Expenses of marketing strawberries. 3. The Denver market for farm produce... (3) Cold storage in produce trade (4) Statistical results for various crops.. 4. Markets for farm produce in Cleveland, Ohio. (1) Methods of handling leading products.. (2) Statistics of trade establishments (3) Rates of commission on farm products (4) Leading shipping points in productive areas. (5) Competition between farmers and dealers (6) Rates of transportation from distant points (7) Statistical results for 15 products. 6. The city of Washington as a farm market.. 5. Farm produce in Kansas City market.. Page. 338 339 339 341 341 342 342 343 343 344 344 344 345 345 345 345 347 347 347 347 348 348 348 349 351 354 354 354 354 7. Richmond, Va., as a farm market. (2) Remarks as to special products.. (3) The tobacco trade-methods and expenses. (4) Statistics of trade establishments, commissions, and cooperation.. (6) Statistical results for 10 products.. 8. Atlanta, Ga., a typical Southern market. (2) Unfavorable position of the producer... (3) Statistical results for 18 products.. 359 359 359 361 361 362 362 363 363 363 363 364 361 364 (3) Restriction of trade by excessive freights and unfair commissions.. 365 365 366 366 10. Madison, Wis., as a farm market.. (1) High expense of local distribution (2) Expense of farm products from distant points.. (3) The local milk trade. (4) Cost of marketing Wisconsin tobacco. (5) Statistical results for 15 products.. 11. Markets for produce in Lincoln, Nebr. (1) General features of the Lincoln market (2) Expenses of marketing milk. 367 367 367 368 368 370 370 370 370 (3) Expenses of marketing eggs.. 370 (4) Expenses of marketing butter. 370 (5) Expenses of marketing potatoes, 371 (6) Expenses of marketing vegetables, 371 (7) Expenses of marketing oranges and lemons. 371 (8) Expenses of marketing hay. 372 12. Wichita, Kans., as a farm market. |