1898-10-06-sc-p7-wheat-blockade
October 06, 1898 Spokane Daily Chronicle Page 7:
WHEAT BLOCKADE.
Railroads Not Able to Handle the Wheat Crop—Warehouses Are Full and It Is Piled on the Ground.
The price of wheat is not the only thing that is bothering the farmers and the buyers nowadays. Nearly all of the grain has been harvested and now the question comes up, “what to do with it?” The men who have good crops are not ready to sell but they do not have-large enough granaries on their farms to hold it all until there is an advance in the market. The wheat is being hauled into the towns along the railroads in heavy quantities and nearly all the warehouses in the Big Bend and Palouse countries are full.
It now looks as if the wheat blockade that caused such great inconvenience last fall is to be repeated. The shortage of freight cars is becoming serious and unless the railroad companies put forth extra efforts and do something that will afford relief the wheat trade will be greatly interfered with during the next month when the rush is greatest.
Not Enough Cars.
J. K. Smith of the Washington Feed Company, in speaking of the situation today, said:
"The railroad companies in the wheat districts of eastern Washington are not able to handle the wheat that is coming into the shipping points along their lines. In the Big Bend, for instance, all the warehouses at Davenport, Mondovi and Reardan are full and more wheat is coming in every day. This would be all right if there were enough cars to carry the grain as soon as it has been contracted for storage. But there are not, and from present indications will not be for some time.
“At Davenport there are now 300,000 bushels stored; at Mondovi, 150,000, and at Reardan, 250,000. The grain is still coming into these places at the rate of 4000 and 5000 bushels a day, and as all the storage room is filled, it has to be piled up outside the warehouses. If there were proper accommodations, 10 or 15 cars of wheat would be shipped from each of those points every day to the coast where it could be stored, but instead of that amount the railroads are able to handle only one or two cars a day.
Worse Than Last Year.
“The blockade is going to be worse than it was last fall. Not half as much wheat has been hauled this season as the roads transported in an equal time a year ago. One reason we do not have as many cars here in the state of Washington is that the crops have been large throughout the country and the railroad companies claim that they are not able to get their rolling stock out here from the eastern points. And then business has increased. More lumber and shingles is being, shipped across the country now than last year. The railroads will not put their cars on the short run from here to the coast as long as they can get freight for transportation for much longer trips.
“This works a hardship on the buyers for they cannot afford to pay for the wheat when they are unable to handle it, As a sample of the way the grain is coming into the shipping places, our warehouse at Reardan received 63 loads the other day, some of which contained us much as 205 bushels. Six-horse teams are put on such heavy loads as these,”
Grain Still on the Farm.
“Has most of the wheat been brought in from the farms?"
“No, not yet. In the Big Bend country I do not believe more than half of the crop has been hauled in. The farmers are waiting until the market is more favorable or until snow comes, when they can bring it to the railroads with less trouble.”
Fine Quality.
“What is the condition of the wheat this fall?”
“It is much better than was expected at first. Most of the crop of eastern Washington will grade No. 1. The grain is much better for milling purposes, as it is hard and dry, while last season much of it was wet and soft from the rain.”
“Is there much danger of the grain being damaged which has been stored outside of the warehouses?"
“No, I do not think so. It will be covered with canvas and will not be injured by the weather.”
Trouble on the Coast.
The shippers on the coast seem to be having considerable difficulty in handling their grain. The state of affairs and the condition of the coast market is set forth in yesterday's Tacoma Ledger as follows:
“Wheat men say there is a car shortage in the northwest and that the receipts of wheat will rise and fall with the increase or decrease of available cars. There is little or no selling at present owing to the drop in the quotations on wheat. Last week and during the one previous the selling was free owing to a higher price ruling. The heavy receipts of yesterday are explained by grain men on the ground that the wheat sold during the past two weeks is being moved. It has been held back owing to a car shortage and is just beginning to come to tide water. A lull for a day or two is predicted, but it is possible the receipts may keep up.
Market Is Low.
“The temporary drop in price is effecting the selling. Farmers will not part with their crop for less than 50 cents and this has not been offered during the past few days. A well posted grain man, speaking of the situation, said yesterday that a steady market would probably prevail during the season, the price neither going above nor below 50 cents at the interior points for more than a few days at a time.
“It is possible that as soon as the farmers realize that the price will not be better they will begin to sell freely every time the 60-cent mark is reached. The exporters will buy as rapidly as they secure charters or a favorable offering is made.
Shipping Rates High.
“At present the great difficulty is in securing charters. The vessels are held too high on the sound, The San Francisco charter rates are 22s 6d, while the sound rate is not less than 30s. That is too much. There should not be more than 5s difference between the two points. There are indications of the charter rates weakening and when this occurs it will be easier for the exporters to purchase. The vessels at San Francisco will have to come north for cargo, as there is no wheat in California. The coast crop is in Washington and the ships will have to be loaded here. There is already a movement in this direction,
Less Than Last Fall.
“The state grain inspector's records show that 757 cars of wheat were inspected at Tacoma last month. This is far below the total for September, 1897, and is explained readily on the ground that the farmers are not selling. The wheat season has not opened as strongly this year as it did in 1897.”
