The times. [volume] (Washington [D.C.]) 1897-1901, 1900-06-11
FROM FARM TO MARKEP
Details of Handling a Crop of
Wheat Which Are Important.
Dumped From the Tillcrs' Wagons
Into Bins Pnsscs Thence to Eicvn-
Again Into Elevators. TO &c Loaded
in Canal boats or Stcams hips.

CHICAGO, June 10-Not many persons,
even among these connected with tbs gain
trade, and certainly not one in ten thou
sand outside OF il, are familiar with all OF
the details by which a bushei Of grain
grown on 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 ard test of the
country's actual prosperity, on which the
salvation of the present and the hope OF
the future of all business is founded. The
details. however, are seldom considered.
1t was in the detail of the process that
George j. Gould, Russell Sage, and other
Eastern capitalists recently lost about
$500. 1000.
Wheat is probably the most representa-
tive grain to follow on its long trip from
producer to consumer, for the reason that
II lie grown in commercial quantities in
practically all of the settled portions oil
this continent, while corn. with crop
four times as large as wheat, is raised IN
q 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 coun-
~ lines except in the shape of pork or
beef.
The Centre of Production.
Since the growing of wheat in this
country began there has been constant
development and growth in the methods
OF harvesting and transporting it, AS well
as constant shifting of the producing
area from one portion of the country to
another. When the era of exports CT wheat
from the United States began the great
growing centre was in New York, Mary
land. and Virginia. Now the commercial
surplus 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 marvel
GUS than has the increase in the pro-
duction. The relative difference in
prices between the producer and consumer
has been narrwed down so steadily that
the latter can now secure his supply al
reasonable figure, while the former can
sell at good prJft AT the close of the
war il cost 60 cents to send bushel OF
wheat from Chicago to New York by rail
this figure, in fact. being the average
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 charges Today there is differ
ence CT 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
ircidentsls of the transfer OF the wheat
one way and the transfer of its money
sha her
charges attaches itself to the wheat as
soon as it leaves the farmers hands until
It is ultimately paid for by the consumer.
Upon these two. in proportion as the de-
mand exceeds the supply. or vice versa.
Is the burden of this endless expense ac-
count thrown
AmCIs the first of these items are the
expenses of the grain buyer at the rail-
road station nearest the wheat field. These
usually include the cost of running the To-
cal 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 as
soon as the grain leaves the farmers wa
gon. otter before, and follows the grain to
the consumer.
The manager of the country elevator
must secure the interest on the capital
which he has tied up in the grain from the
tirie he pays the farmer cash for it to the
time he can draw cash on the bill OF lading
for the grain shipped TO the elevator at
some terminal point on lake or rail route
that will move it nearer the foreign mar
ket. AT the terminal the grain will be in
spected by State officials, who will exact
fee for the service; ii will be weighed by
another set of officials-another fee; il Will
be looked over and bought on its actual
appearance, regardless of :he State fnspec-
tors verdict as 10 the grade; the buyer will
extract his profit for so doing when he
pays for the grain, and he will send il to
q mixing house or hospital, where all of
the weeds, dirt, or other impurities will be
blown out of it, the light and shr.veled ker-
neis will be separated from the pump ones,
and the grain will all the while be taking
on hard polish which Will brighten and
improve its appearance.
How blending Is Done.
By this time it is in such shape that it
has passed beyond the No. 3 grade be-
slowed upon it by the State grain inspee-
tor, but has hardly yet entered the No.
class. The internes in the hospital afore-
said will therefore judiciously blend" say,
one car Of strictly choice No. wheat fur
nished them for the purpose by the house
physician) with anywhere from two to
half dozen cars of the improved No. 3, and
by this time there are respectively three or
seven cars of No. 2 wheat good enough to
pass muster as such in any market OF the
world. Then will come the transfer from
the hospital or mixing elevator to some ele
yator on which the State has put the stamp
OF chartered approval and the Chicago
Board OF Trade has further added its en-
dorsement Once inside of this elevator a
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 safe
guards Of the State and the leading grain
trading organization of the world, thus be-
comes negotiable property, on which banks
anywhere will loan almost up to the face
value. This discrimination in its favor as
against other forms of property. such as
real estate, bonds or other good assets, !
is because of the fact that there is always
an open market where the property can in !
stantly find a sale at some price, q result
not always attainable where the collateral
is Of some of the other sorts named.
The instances where the warehouse
men or other officials have proved recreant !
to their trust and secured enough collision
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 disclos
ures had the effect of throwing further |
safeguards around the warehouse receipts |
for grain, and these apparently proved |
sufficient TO last for score Of years. In |
Lay L.. Iaf1 h.