The Washington herald., 1921-01-10
FARMERS ENTRY
INTO ELEVATOR
FIELD Is SHOWN
Trade Commission in Re-
port to Congress Tells
Of Growth.
FINANCED BY BANKS
Competition Keen in Grain
And Side Lines. Says
Report.
FINANCED BY BANKS

Congress has received from the
Federal Trade Commission the first
Of a series Of reports on the grain
trade of the country, dealing with
country elevators and country grain
marketing.
A detailed description of the
mechanism of marketing and a dis
cussion Of the methods, based
largely upon schedule returns OF
about 10000 country elevators and
warehouses throughout the nation
are provided. The report also in
cludes a discussion OF the distribu-
tion OF the various types Of eleva-
tors and warehouses, their eharac~
teristics, functions and methods,
| the profits and losses on grades,
dockages and weights, the geo.
graphical and commercial move
ment OF grain. country hedging and
financing and competitive conditions
of the last seven or eight years.
Commercial line elevators are
most important in Nebraska and
! the four Northwestern States, and
Independent elevators in Iowa, Kan
sas and the States East OF the Mis-
sissippi," says the report.
Co-operatives Lead Also.
The cooperative type is most
| important in Iowa, Kansas, Nehras-
ka, Minnesota, Montana and North
and South Dakota. Mill line eleva-
tors are relatively most important
in Oklahoma, Kansas and Missouri
and individual mill elevators east
of the Mississippi in Indiana, Ohio,
| Wisconsin and Michigan.
IAN outstanding development in
the marketing OF grain in recent
! years has been the entry OF the
! farmer into the elevator business.
as shown by the number Of indi-
vidual cooperative elevators. The
1 average country elevator is of wood
with a capacity of $4,000 to $4,000
bushels. The five principal sidelines
handled by them are coal, feed,
flour, building material and seed
| The average country elevator buys
slightly less than 100, 900 bushels Of
grain annually. The commercial
line and mill line elevators buy only
| 1900 to $4,000 bushels respectively.
About 40 per cent OF the eleva-
tors and warehouses generally
hedge their grain, 10 per cent hedge
to a limited extent, while so per
cent report no hedging. The major
portion of the financing OF eleva-
tors is done by local banks, COM
mission houses and the head Offices
of the line elevator companies.
Commission house financing is Of
great importance in the four North
western States, and a considerable
amount Is done in Wisconsin, Illi-
nois and Missouri.
Find Competition Keen.
Competition is keen, especially
that Of the mill and cooperative
elevators. Mill elevators bid for
grain largely to supply the grinding
requirements and frequently do not
calculate upon a mercantile profit.
Not only grain prices, but also
grades, dockages, elevation and
storage charges and side lines be-
come subject to competitive infiu-
ences."
The letter OF submittaI, which
was signed by Victor Murdock.
Huston Thompson, William B. COL
yer' Nelson B. Gaskill and John
Garland Pollard, states that four
other reports are in course of prep
aration, dealing with terminal grain
markets, costs and profits Of the
present marketing system and fu-
ture trade operations.