Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-02-25

| The systems of marketing Sraln-such
as corn, wheat. oats, barley and rye-are
| practically the same from the time the
] crop leaves the hands of the farmer until
it reaches those of the consumer. There
| is one popularity about existing grain
\ marketing systems. and that is that there
| is one way of handling grain east OF the
| Rocky mountains and another west OF
| them. East of the Rockies the grain is
| handled in bulk. except as it leaves the
hands of the small farmer. He hauls 1t
| to market in bags. but it is thereafter
| poured into elevators or cars. The usual
practice is for the farmer TO sell his
grain to nearby mill elevator. with
III wagon-h uling distance. although at
times he loads or cars direct to
some primary market
West of the Rockies it is handled in
bags throughout. There are three kinds
of elevators handling gran-the line ele-
vators. which are Il part of system of
elevate operated under one manage
ment. and with larger handling plants in
the big grain markets. Independent ele-
vators. which have nothing to do with
the elevator trust and farmers ele-
vatorS. owned and operated directly by
associations of farmers. Tie independent
and farmers elevators sell through COM
mission men. who are members of grain
exchanges. The prices received are called
spot cash prices to distinguish
the sales from futures" Some grain is
sold Ito arrive in specified number
of days: other grain is sold Ion the
track. or before it is unloaded from the
cars and the major portion of the re-
mainder lin store" that is, In the big
elevator. There are two kinds of ele-
vators in the big markets-the public
elevators and the private ones. The for
mer are open to the public and delivery
to the purchaser. In the states where
there Is grain inspection public elevators
are under state Jurisdiction.
The farmer usually sells his grain for
cash, hence the grain buyer needs a con-
siderable C a p a l.
Farmer Usually much of which he
Sells for Cash T mas n saun to 0o SuSsr
may have as much as 80 per cent of the
value Of the grain he ships advanced to
him, the commission dealer making the
advance charging him interest on the
amount so advanced. The farmer who
prefers to hold his grain for better prices
may borrow a reasonable amount for his
immediate needs by pledging his elevator
receipts security.
A grain elevator may serve not only
to store and transfer grain. but 1t may
undertake to clean and mix it well.
1t very frequently happens that one
farmer may bring in lot of No. . wheat
that is just little under the standard
for No. !. Another farmer brings in
lot that is No. 3. but which, by having
a little No. 2.mixed with it, might pass
easily as No. .. In this way nothing Is
taken from the value of the first lot.
while good deal is added to the value
of the second lot. This applies to other
grains as well as wheat. and adds some
thing to the profits of the elevator bust
ness.
In the export grain business grain
shipped from Atlantic ports usually goes
with bill of ladng attached. When its
quality is certified to when loaded at
Baltimore or Newport News that certifi-
cation Is accepted as the basis of pay
ment by the English importer. no matter
what the condition of the cargo is upon
arrival. From the gulf ports shipment
usually Is made on what are known as
rye" conditions; that is. the exporter
must stand the chances of deterioration
en- route