The Ward County independent. [volume] (Minot, Ward County, N.D.) 1902-1965, 1919-09-18
GRAIN MAN
n MUST DEAL IN FUTURES
A. A. Robinson, Prominent Minot
4 Elevator Man, Reads Interesting
Paper Before MinOt Rotary.

fdper BEFORE MlnOt NOtNTy.
VI A. A. Robinson, OF the Robinson Ell
evator Co., one of the oldest grain
dealers in the Northwest, read the fol-
lowing interesting paper at Mondays
meeting Of the Minot Rotary:
Mr.. Chairman and Fellow Members
Y of the Rotary Club:
"A 1t is indeed pleasing to me to be
able to present to you at this time
something of the nature of my bust
mes. The fact that our state has re-
Gently passed laws enabling it to en-
ter into competition with country
grain dealers and also the additional
fact that many unpleasant things
have been said concerning the coun
try grain trade of this state and the
Northwest, by political agitators,
gives me pleasure in vindicating in
my own way my position as country
grain elevator operator.
The nature of my business is so diff
ferent to that of any other business of
this center, that shall be compelled
to speak upon the subject somewhat
in detail to give you fair under
standing Of it.
l am going to start out with the
assertion that instead Of being an un
necessary middleman, the country
grain elevator occupies the most inn
portant position in this vast grain
raising area that is held by any bus
mess institution. AS stations like Mi
not where the farmer receives his
bulk of cash for his years labor
through the sale of grain, the position
occupied by the grain elevator is one
of extreme Importance, and l would
like to further state that grain, as it
is now marketed from this station and
from all other stations within the
grain belt of the United States is
marketed more efficiently and at
smaller cost to the producer than any
other product Of the farm. 1t costs
100 per cent more to market cotton in
the southern states, which product is
a less perishable staple than grain.
Wherever the element of risk enters
into the holding of property, the mar.
gin, of course, must be increased, and
as there is more risk in the handling
of grain, due to it's moisture content
and getting out of condition in tran
sit, than that involved in the handling
of cotton, it is logical to suppose that
the marketing of grain should cost
relatively more than it costs to market
cotton.
Speaking of the public generally,
there is an annoying belief that a
grain man is in some way connected
with the gambling business. This is
not so. OF course, country grain
dealer, or any citizen for that mat
ter, may speculate in grain or gamble,
if he wants to. But the country grain
dealer keeps from gambling by buy
ing or selling future trades to protect
him against fluctuations in the mar.
ket covering the cash he has already
paid for grain. If it were not for
this future trading the country shipper
could not protect his margins; the ele-
ment of risk would be increased and
therefore he would be compelled to
pay the farmer less because he must
increase his margins in proportion to
the greater risk. This necessity is ap-
parent in every mercantile business.
A country grain shipper is bene-
factor to his community, providing, OF
course, he conducts his business hon
estly, which I dare say most Of them
do. During the heavy marketing sea,
son, as at present, it is necessary fol
US W heep III CiOSe cOuSh Will Wy
terminal markets. The terminal
grain markets, by the way, are not
only centralized distributing points
but they are centralized points which
accumulate and amass information
covering world markets Of grain
Through this information, l., as q
country grain shipper, can receive the
highest world market price. for my
grain by taking advantage Of the ser.
vice of any one or more of the mem
bers of any of the grain exchanges.
Of course, in the matter of prefer
ence, l confne my shipments to few
concerns; concerns with whom l have
done business for many years and up
on whom / can rely for straightfor
ward business dealings.
Every. day / receive what is calleet
card bid from Minneapolis. It i:
based upon the previous days market
values. My commission merchant i:
also familiar with yesterdays prices
if there is an advance in the marke
he will either phone, wire or write me-
as the necessity of the occasion may
warrant. In this manner | am KEEP
fully advised as to what grain l pur
chase may be sold for, and you vii
readily see CnaC Cne closer all duV1s
ed, the closer can shave my margins
and the nearer l can pay the farme!
the best price obtainable in the world
1t is foolish to claim, as some do
that country grain dealers extract al
unreasonably large margin of prof
on the grain they handle. Competition
regulates, in a large measure, the mar
gin of profit !, as grain dealer, cal
secure at this station or any other sta
ton. I have several very good com
petitors at Minot and no matter a
what station / may be interested
always have an ample number of com
petitors who are keen for the bust
ness and who will see that I do no
get load of grain if l do not pur
chase it at very low margin. Thi
fact should be apparent to everyon
of you. To illustrate this further,
would say it is my constant endeavo
to pay so much for grain at my ele
vator that / will attract wagonload
that may be produced beyond the di
viding line between Minot and othe
stations.
You may be interested to know tina
Tho Tinted States Grain cOrnOratiOr