Omaha daily bee., 1908-11-21
MVANE ON HOW TO SELL CORN
Tells Ames College Students Best
Methods Of Merchandising.
TOUCHES ON DEALS IN FUTURES
vs Much Good Has Come to All In
rests from sermons Preached
on Subjects Of This
Character.

AMEs. .1s, Nov. 2O-special)-E. j..
M1cvann. secretary OF the Omaha Grain
exchange. delivered by invitation an adj
dress on the Merchandising Of Coin" to
tie students OF the Iowa College of Agri-
culture at Ames. Thursday evening. The
address dealt with The method of hand
li1g corn on the cash market by buying and
solllng through the broker and commission
merchant; the method OF dealing in futures,
which Is the speculative side OF the grain
business"
On these subjects Mr.. Mcvann said in
Birt
in the great primary markets there is a
great diversity OF interests on the buying
side. There are the manufactured of
corn products such as starch. glucose and
breakfast foods! the stock feeding con-
Germs; the millers; the distilleries, and
Of 'the exporters. Some one OF these class
~ buyers has a place for every grade
of'corn that is offered and the only un-
fortunate thing about the business lie that
there Ia 81 very little tip top grades.
Heard Many
You Iowans have heard many sermons on
this branch of the subject from men who
are so much better qualified TO talk about
1t than | anu. that / won't venture more
than tho merest allusion to II. Much i'm
rrove - has been made as the result 81
their Efforts and l am sure we are all lcok-
ing Z .t,.rd confidently to the day when
nobody would dare to offer a lower price
for three corn OF better" but will be COM
nelled to make the better price to ut the
batter grade.
TO one unfamiliar with modern mer-
chandislng methods, It may seem some
what risky for a buyer to make a purchase
OF 1.00 bushels of corn based upon a small
sample or an inspectors grade ticket.
This risk is minimized by the machinery
provided for reinspection by the chief In
spector for appeal to the grain committee
end by other safeguards such as the de-
finition in the rules Of fraud perpetrated
by what is known as plugging, or, In other
words, putting damage and worthless
grain In a car and covering 1t up with
sound grain In such 8 manner that the
presence.
Deals in Futures.
With regard to deals in futures the
speaker said:
Trading In futures is very little under
stood outside of the students Of economics
ana the men who are engaged In those
classes of business where hedging, so
called. has become a necessity. There Is
need for a more clear and full understand
ing OF this very important side Of the grain
where We will have, when this years corn
crop is harvested. over 200. 100000 bushels
of corn. Let us assume that one-half OF
this amount is consumed within the state
which will leave 100, O0O, 900 bushels Of corr
ton.
somahoHy nus PfrSaews' 1hS wan mean q
braska about $50, 600, 900 In good money
Nobody knows at the time the corn com.
mences to flow to the railroads for sale
and shipment just what is going to be done
with 1t. 1t may meet a ready market and
II may meet Q market filled to repletior
with the offerings of other states and
countries. If the grain dealer who buys
any considerable quantity of 1t is obliged
to provide a warehouse for the storage
of II, to insure the property against loss
by fire, and tie up his money indefinitely
in the grain, taking all the chances OF be.