New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1900-06-10
FARMER TO CONSUMER.
THE ADVENTURES OF A CROP OF
WHEAT.
FINANCIAL ARRANGEMENTS FOR MOVING
IT-INsPBcTED. SAMPLED AND WEIGHED
ALI, ALONG THE LINE

ALL ALONG LIN
Chicago June (SpeciaD.-Scarcely one man
in ten actually engaged in the grain trade. and
certainly not one in thousand outside Of il,
are familiar with all of the details by which
bushel of grain grown United States soil is
forwarded TO the ultimate consumer IN Europe
Most business men know in a general way how
the grain gets to the consumer and the money
equivalent gets back TO the farmer, for that is
the final measure and test of the country's act
uai prosperity, on which the salvation of the
present and the hope of the future of all bust
ness is founded. The details, however, are sell
dom considered. 1t in the detail of the
process that George ]. Gould. Russell Sage and
other Eastern capitalists recently lost about
100000
Wheat is probably the most representative
grain TO follow its long trip from producer to
consumer for the reason that it is grown in
commercial quantities in practically all of the
settled portions of this continent. while corn.
with a crop four times large as wheat, is
raised in a comparatively narrow belt The
wheat too is exported in its original shape more
generally than is any other important grain
while corn seldom gets across county lines ex-
cept in the shape of pork or beef.
Since the growing of wheat In this country
began there has been constant development
and growth in the methods Of harvesting and
transporting Al, as Wen as a constant Vi
the producing area from one portion Of the
country another. When the of exports Of
wheat from the United States began the great
growing centre was in New-York. Mary
land and Virginia. Now the commercial
plus is grown west Of the Mississippi River. The
milling centre meanwhile has moved from
Rochester TO Minneapolis
The progress in transportation and sale of the
wheat has been even more marvellous than has
the increase in the production. The relative diff
ference in prices between the producer and con-
surner has been narrowed down steadily that
the latter can now secure his supply at rea-
sonable figure. while the former can sell at good
profit. At the close of the it cost go cents
70 send bushel Of wheat from Chicago 10 New
York by rail-this figure, in fact, being the aver
age rail freight for all OF 1864 This did not
include the grain mans profit at either end Of
the line. but covered simply the bare freight
charge To-day there is a difference Of only
20 cents per bushel between the selling price OF
wheat in Chicago and the price in Liverpool
This open market difference OF course represents
the freight handling and other incidentals OF the
transfer of the wheat way and the transfer
of its money equivalent the other. a long train
Of charges attaches itself to the wheat as soon
as 1t leaves the farmers hands until ii is ulti-
mately paid for by the consumer. Upon these
two in proportion as the demand exceeds the
supply, or vice versa. is the burden Of this end
less expense account thrown. Among the first
of these items are the expenses of the grain
buyer at the railroad station nearest the wheat
field These usually include the cost of running
the local elevator which dumps the farmers
grain into bins whence it is elevated TO
other bins and in turn runs into cars alongside
the elevator. Insurance starts soon as the
grain leaves the farmers wagon, often before.
and follows the grain to the consumer
The manager Of the country elevator must Sc
cure the interest the capital which he has
tied up in the grain from the time he pays the
farmer cash for it to the time he can draw cash
on the bin OF lading for the grain shipped 20
the elevator at some terminal point OF lake CT
1ail route that will move it nearer the foreign
market At the terminal the grain will be in
spected by State officials. who will exact fee
for the service: It will be weighed by another
OF oficials-another fee; II will be looked over
and bought on its actual appearance. regardless
OF the State inspectors verdict as to the grade;
the buyer will extract his profit for so doing
when he pays for the grain. and he will send 1t
to a mixing house hospital where all Of the
weeds, dirt or other impurities will be blown
out OF it. the light and shrivelled kernels will
be separated from the plump ones, and the grain
will all the while be taking hard polish
which will brighten and improve its appearance.
BY this time it is in such shape that ii has
passed beyond the No. grade bestowed upon it
by the State Grain Inspector, but has hardly
vet entered the No. 9 class. The internes in the
hospital aforesaid will therefore judciously
blend" say, one Of strictly choice NO.
wheat Furnished them for the purpose by the
house physician) with anywhere from two 10
half dozen cars of the improved No. 3, and by
this time there are respectively three or seven
cars of No. wheat good enough to pass muster
eS in market of the world. Then VIII
come the transfer from the hospital or mixing
elevator 10 some elevator on which the State
has put the stamp of chartered approval and
the Chicago Board Of Trade has further added
Its Endorsement. Once inside of this elevator
warehouse receipt is issued against it, and the
grain is declared good delivery" under the
rules of the Board Of Trade. The warehouse
receipt hedged about with the Endorsement and
consequent safeguards Of the State and the
leading grain trading organization Of the world.
thus. becomes negotiable property. on which
banks anywhere will loan almost up TO the
face value This discrimination in it's favor
as against other forms OF property, such real
estate bonds or other good assets, is because
of the fact that there is always open market
where the property instantly find sale at
some price. a result not always attaina BILE where
the collateral is Of some Of the other sorts
named. y.
The instances where the warehousemen or
other officials have proved recreant to their
trust and secured enough colusion on the part
of the various officials for the practice Of fraud
have been rare, indeed. In the Mum Scott
case of twenty years ago the warehousemen put
false bins in their elevators and shipped out
the grain on which money had been obtained
This left only thin veneer Of grain over large
bins OF atmosphere as collateral for the money
borrowed The resulting disclosures had the