The Nonpartisan Leader Newspaper, November 22, 1917, Page 5

W w cres MW W ] <P oo North Dakota Incpectors Discover Elevators Filching on Freight and Wheat Classification "2 NOTHER steal by the grain § combine has just been nipped in the bud by the new North Dakota grain grading depart- ment created by the farmers’ legislature. Elevators in the north- western part of the state, where prac- tically nothing but *“dark northern” wheat is produced, have been buying this in as “northern spring,” thus cheating farmers out of four cents per bushel “right off the reel.”” Investiga- tion indicates that the practice has been general and that the wheat pro- ducers of that section have been vic- timized. The state inspection depart- ment, in co-operation with the attorney general's office, is now preparing to compel the companies to return to the farmers this four cents per bushel, and also uabout four cents additional that they have cheated them out of on freight charges. Here is the story: Under the fixed price for wheat, No. 1 northern spring at Minneapolis &hould bring $2.17. Northern spring is the standard sub- class upon which prices are fixed. Red spring is a lower sub-class and brings two cents less per bushel, grade for grade, than northern spring. But dark northern spring is en- titled to_a premium of four cents per bushel over northern spring, or $2.21 per bushel. Practically noth- ing but dark northern is raised in the section of country investigated, and yet not a bushel of it has been classed dark northern. It has all been bought by the elevators as “northern spring” although there is practically no wheat of that class raised there. ’ M'GOVERN INVESTIGATES CONDITIONS FIRST HAND This is what J. A. McGovern, chief deputy state grain inspector, found last weelk when he made, a house to house canvass of several days, visiting elevaters and farmers. He returned to Fargo headquarters indignant and de- termined to force the grain buyers to disgorge. Under the authority granted in the grain bill (which was introduced and forced through the last legisla- ture by Nonpartisan league senators ‘against the opposition of most of .the hold-overs) licenses to buy grain can be denied to buyers who violate the law and the regulations. “Men who will rob those farmers up there would stoop to anything,” declared Mr. McGovern after a thorough investigation. “It is piti- ful to see the conditions. There are farmers there who have hardly anything left after cleaning up their seed for next year’s crop— only a few sacks of wheat sitting - around the wall in their granaries. It is the finest grain | ever saw, all hard, dark northern, most of it 97 to 98 per cent hard, vitreous kernels, although it is only requir- ed to be 85 per cent such grain in ocrder ta be classed as dark north- ern. And the elevator men are robbing them of this on classifica- and freight charges. “I have advised the farmers not to gell for any classification less than dark northern, and we are going to compel the companies to pro-rate back to the farmers the extortion they have exacted, according to their weigh tickets, of which we have copies. If they don't none of the buyers who have been caught in this robbery will open an elevator door next season. We have full authority and are going to use it. The attorney general is with us and eager to see justice done.” “pARK NORTHERN” IS STRANGELY MISSING - The way these buyers were caught illustrates the completeness and effi- ciency of the North Dakota grain in- spection law—which, by the way, was one of the Nonpartisan league planks that was enacted in full at the last session of the legislature. First, an accounting was asked for through the accounting department. In due time reports made out on special blanks-be- gan to arrive at the headqum‘ters of - fice in Fargo. These show just how. much grain and just what kind of grain the elevators have. To the sur- prise of the inspection department there-was no dark northern shown. That section of the state raises dark northern almost exclusively. It is famous for this kind of wheat. De- sides, the department had already on hand scores of farmers' samples from this very district—all were. dark northern. There was no other kind of wheat. These accountants were sent up through the district to check up the details of this extraordinary situation. Sure enough the weigh tickets showed nothing but northern spring—no dark northern. These tickets were all copied in full, under the authority given the accountants, and the department was thus in possession of every detail of the elevators’ business for the season. Every wagonload was recorded, and the grade and class set down. Then Chief Deputy McGovern went to the front. He visited Stanley, Palermo, Blaisdell and Tagus. All the wheat the elevators had in their bins was dark northern. Then he spent three days visiting farms. There was no grain on the farms but dark north- ern, and that of the highest grade, No. 1. ‘At one place he asked the buyer if - he knew how to grade grain. JUST A GOUGE— THAT’'S ALL “You had to show experience when you applied as a buyer,” said McGov- ern, “don’t you- know that is dark northern, and is not northern spring?” “They’re all buying that way up here” was his evasive answer. “Don’t you know that under the fixed prices that kind of grain brings $2.21 at Minneapolis?” persisted Mc- Govern. “Well, we thought if we allpwed them $2 flat that was enough,” replied the buyer. Then he added, “there isn't much grain up here this season any- how.” This was to show that since the elevators had not much to expect, they were entitled to a little extra gouge to make up for the shortage. - In addition to finding that this grain was being bought as No. 1 northern in- stead of No. 1 dark northern, a robbery of four cents in itself, the elevators were stealing over four cents per bushel in freight and commission charges, Mr. McGovern said. No 1 northern is worth $2.17 at the termin- als, the commission and freight from this section is around 12 cents (vary- ing slightly, according to the station) so that the farmers should have been receiving $2.04 or $2.05 even if their wheat was northern spring, but they were getting.only $2 flat. Adding the margin taken on freight to the under- classification, the elevators were get- ting the grain for about eight cents per bushel less than they were entitled to under the fvderal fixed prices and regulations. WILL FORCE BUYERS R TO REIMBURSE FARMERS It is this “velvet” th;t the grain de- partment and attorney general intend to have returned to the farmers. As every farmer's sales are known, it will be only a matter of arithmetic to figure up what is coming to them. Mr, McGovern also left word with all farmers he visited to save samples of every wagonload of grain they sell to the elevators in this section and send them to inspection headquarters. These will be used as evidence in e the matter is not settled, and the depart- ment has'to go into court. M&ny sam- ples were already on hand, as was mentioned above, and it was through these that the department learned of the robbery. Mr. McGovern was anxious that every farmer learn what is being done and take such steps as he can to co-operate in gathering evi- dence. $ Accountants are still at work in the same section of the country and if their reports show the same conditions a’s those already shown, more elevators will be involved. i ‘No. 2 . “SOUR” GRAPES GANI~NT) il = THE “ABOVE FRUIT IS FOR THE BENIFIT OF \ I DONT THINK THERE (5 ANY DANGER OF HIM CLIMBING THAT YHE .PEGPLE —Drawn especially for the Leader by Frank Chaney Jr. The fox (ihe old political gang)—“Well, they are probably sour grapes, anyway.” Robbery at Watertown Grain Buyers Flout Government Fixed Price for Wheat and Gouge Farmers 3 to 7 Cents a Bushel : OMBINATION of grain buyers of Watertown, South Dakota, - is resulting in farmers being !;‘. 2P) cheated out of several cents on every bushel of -grain that they sell. The schedule of prices fixed by the price fixing board for the 1917 crop at Chicago was $2.20 for No. 1 Northern, $2.17 for No. 2, $2.14 for No. 3 and $2.10 for No. 4. The Minneapolis prices are three cents lower than the Chicago prices, that is, $2.17 for No."1, $2.14 for No. 2, '$2.11 for No. 3 and $2.07 for No. 4. 3 Prices of wheat at all points tribu- tary to Minneapolis are supposed to be the Minneapolis price, minus the freight from the shipping point to Minneapolis. The same differentials between grades, three cents between No. 1 and No. 2, three cents between No. 2 and No. 3 and four cents between No. 3 and No. 4, are supposed to be maintained at all points. GRAIN BUYERS DEFY GOVERNMENT PRICE The freight rate between Watertown, S. D, and Minneapolis amounts to 14 cents per bushel.. This should make the price of No. 1 at Watertown $2.03, with No. 2 three cents lower, No. 3 six cents lower and No. 4 ten centg lower. ~ " But the grain buyers of Watertown have announced flatly that they will not pay the prices fixed by the govern- ment. They start out by paying $2 for No. 1 and in addition take it wupon themselves to establish greater differ- entials .between grades than are ap= proved by the government. Their dif- ferential between No. 1 and No. 4 is 14 cents, as against 10 cents allowed by the government. This table shows the difference be- tween the government prices for Watertown and the prices arbitrarily decided upon by the Watertown grain buyers: Grain Gov't. Buyers' Buyers’ Price Price, Rakeoff No. 1 ...... $2.03 $2.00 .e 12,00 1.95 3 cents b cents . _° PAGE FIVE No. 3 ...... 1.97 1.92 5 cents INO. <74 esrvets 1.93 1.86 T cents The $1.86 price for No. 4 is being maintained in spite of the fact that the food administration has ruled that sales under No. 3 should be made on sample instead of by grade which ‘has resulted in growers in many parts re- ceiving within one or two cents of the No. 3 price for their No. 4 wheat, in- stead of taking a six-cent cut from the No. 3 price, as is the case at Water- town. i CAN DO NOTHING SAYS LIVINGSTON The condition of affairs at Water- town has been called to the attention of Don Livingston,.South Dakota’s new director of markets. Mr, Livingston states, however, that he is powerless to do anything except to give publicity to the practices of the Watertown grain buyers, which he has done Apparently the federal officials are the only ones who have authority to compel the payment of honest prices. The Leader is informed that the Min- neapolis agents for the government wheat buying corporation are fully in- formed in regard to the Watertown prices. Commissioner Livingston has stated that his record of the correct prices was made up from information secured from that source. But thus far the federal authorities have taken - no action to put a stop to these prac- tices. ; . LEAGUE A POWER The Nonpartisan league is destined to be a power in the politics of the state, and the Big Boys know it. We ask that they be given a fair shake— an honest deal —LYON COUNTY (MINN.) REPORTER. 50-50 PATRIOTISM Does it ever occur to you that the Bismarck Tribune so long and loud in Shoot-Mouth patriotism urging the readers to stand by the president, with the same pen keeps knocking the gov- ernor of North Dakota. Frazier is just- as much “our” governor as Wilson is “our” president. — MOTT (N. D) SPOTLIGHT.