Democratic Sentinel, Volume 20, Number 34, Rensselaer, Jasper County, 28 August 1896 — FLOUR COMBINE DISRUPTED. [ARTICLE]

FLOUR COMBINE DISRUPTED.

North American Milling Trust Has Gone to Pieces. Flour will be sold for a time at least at whatever price individual millers see tit. The big flour combine known ns the North American Milling Company has gone to pieces, and as a result a cut of 10 cents a barrel in prices has been mijde by the Northwestern millers and followed practically all over the country among spring wheat millers. This makes the present: price in Chicago of best Northwestern brands $3.55. The combine was supposed to be one of the best and most carefully planned ever known, and its failure is considered by some of the Northwestern concerns at least as conclusive evidence that a successful combination is impossible. However, one big concern claims that' the break in arrangements is only temporary. The combination was effected March 10 last, and was the result of months of patient work on the part of its inaugiirators, and many meetings were held. It represented a combined milling capacity of over 100,000 barrels a day. The mills within the combination had to put up a guarantee fund for the faithful carrying out of the agreements on a basis of 10 cents per barrel per bOO barrel milling capacity. In spite of this it was soon discovered that some of the mills were taking advantage of the others in granting rebates, and this has grown from small beginnings to such large proportions that a general row resulted. The minimum price was made by one to an appointed for that purpose in the Northwest, and he made the price from time to time based on the conditions of the trade, it is said, uninfluenced by any of the mills in the combine, and in every way those who went in in good faith tried to sustain a fair minimum price, which was supposed to he a good thing for all branches of the trade.