220
stock of the company was $1,000,000, and it was all needed before the end of the first year's business.
Prior to the appearance of Rennie as a miller, the chief obstacle to milling with a profit in China was the lack of a market for the offal. Practically all of the profit enjoyed by the Pacific coast millers came from the high prices at which they were able to market millfeed, for which there was no demand in the Orient. Rennie, without much investigation, decided that the offal from his two thousand barrel mill could be fed to pigs at a profit and he established a “piggery” with several hundred animals at the start.
But millfeed for Chinese hogs was but little more nutritious than poison, and they died by hundreds; the experiment proved a flat failure. This was the beginning of the trouble, and as there was no market for millfeed in the Orient, it became necessary, in order to dispose of it, to ship it to Honolulu. Here it was sold at a very low price in competition with the Oregon mills. As Rennie secured most of his wheat from Portland and Puget Sound, the bran and shorts that finally found a consumer at Honolulu, had to stand a freight rate across the Pacific, and thence half way back again, compared with a short mileage between the Pacific coast ports and Honolulu, paid by the American millfeed.
While the pigs were dying, the Chinese were refusing to buy the flour. Mr. Wilcox had spent a large sum of money in working up a trade throughout the Orient for particular "chops", as the fantastic brands are known. The Chinese by years of experience had learned to have confidence in these “chops". So long as Rennie had them for sale, they bought from Rennie, but when Rennie, with his new mill, attempted to sell something "just as good", the Chinese buyers politely but firmly refused.
The Orientals are conservative in the extreme and they steadily refused to take up the new brands put on the market by the Hongkong mill. With slow sales for flour, and no profitable outlet for millfeed, matters were far from bright last winter when a cargo of weevily wheat from India distributed the industrious weevil throughout the mill and warehouses so thoroughly that Americans who have since visited the mill express the opinion that it will be impossible to rid the plant of the pest.
220
stock of the company was $1,000,000, and it was all needed before the end of the first year's business.
Prior to the appearance of Rennie as a miller, the chief obstacle to milling with a profit in China was the lack of a market for the offal. Practically all of the profit enjoyed by the Pacific coast millers came from the high prices at which they were able to market millfeed, for which there was no demand in the Orient. Rennie, without much investigation, decided that the offal from his two thousand barrel mill could be fed to pigs at a profit and he established a “piggery” with several hundred animals at the start.
But millfeed for Chinese hogs was but little more nutritious than poison, and they died by hundreds; the experiment proved a flat failure. This was the beginning of the trouble, and as there was no market for millfeed in the Orient, it became necessary, in order to dispose of it, to ship it to Honolulu. Here it was sold at a very low price in competition with the Oregon mills. As Rennie secured most of his wheat from Portland and Puget Sound, the bran and shorts that finally found a consumer at Honolulu, had to stand a freight rate across the Pacific, and thence half way back again, compared with a short mileage between the Pacific coast ports and Honolulu, paid by the American millfeed.
While the pigs were dying, the Chinese were refusing to buy the flour. Mr. Wilcox had spent a large sum of money in working up a trade throughout the Orient for particular "chops", as the fantastic brands are known. The Chinese by years of experience had learned to have confidence in these “chops". So long as Rennie had them for sale, they bought from Rennie, but when Rennie, with his new mill, attempted to sell something "just as good", the Chinese buyers politely but firmly refused.
The Orientals are conservative in the extreme and they steadily refused to take up the new brands put on the market by the Hongkong mill. With slow sales for flour, and no profitable outlet for millfeed, matters were far from bright last winter when a cargo of weevily wheat from India distributed the industrious weevil throughout the mill and warehouses so thoroughly that Americans who have since visited the mill express the opinion that it will be impossible to rid the plant of the pest.
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