548 IOWA DEPARTMENT OF AGRICULTURE. 



The grades number three includes a larger portion of the corn inspected 

 and is in fact the standard commercial grades of the Western markets. 



The total inspection of grain at Chicago for three years 1901-2-3 shows 

 percentage of each grade as follows, to wit: 



Number 2 corn 9% 



Number 3 corn 67% 



Number 4 corn 21% 



No grade . 3% 



It is a well known fact that Iowa corn does not average as high grade as 

 Nebraska and Illinois, consequently we must conclude that Iowa corn does 

 not hold up to the average shown by Chicago inspection as Nebraska and 

 Illinois contribute largely to the receipts of that market, 



I have referred to number two corn as the speculative grade, by which I 

 mean that a buyer of contract corn for future delivery (Board of Trade 

 options) may demand delivery of number two corn and can not be com- 

 pelled by the rules of the Chicago Board of Trade to accept a lower grade 

 on his contract, and it can thus be understood how it may be considered 

 possible to ' 'corner" number two corn when only 9 per cent of the receipts 

 at Cnicago for three years, grade number two, even though there may be a 

 large amount of lower grade corn in the country. 



The inspection rules take into consideration three distinct conditions, 

 to-wit: color, moisture and purity. The color and purity of corn is plainly 

 apparent, and an actual count of kernels would determine quite accurately 

 the grading in that respect, so far as the rules given are concerned. 



The moisture content of corn is not so easily determined, and the term 

 "reasonably dry" as given in the rules is rather indefinite and uncertain. 

 There is a large amount of corn that is close on the line between grades and 

 with such indefinite terms as "reasonably dry" and "reasonably clean" an 

 inspector may through indifference or dishonesty do a great injustice. 



New corn even though of high grade in other respects may miss grade 

 because of excessive moisture, as to illustrate, the inspection of corn at 

 Chicago for seven days November 15th to 22d last was as follows, to-wit: 



Number 2, 18 cars or *^ of one per cent. 

 Number 3, 395 cars or 123^ per cent. 

 Number 4, 1381 cars or 43 per cent. 

 No grade, 1418 cars or 44 per cent. 



You will note that eighty-seven per cent of this corn marketed in Novem- 

 ber graded number four and no grade principally, because of excessive 

 moisture and it was even in worse condition during the previous days. 



The discounts in value at terminal markets on this corn was large and 

 grain dealers have suffered heavy losses in many instances, on corn this 

 season because of their discounts. In fact the terminal grain dealers did not 

 want it unless at a heavy discount. 



I know of an eight thousand bushel lot of average corn that was shelled 

 and run through a dryer in November and the shrinkage in weight 

 amounted to a cost of five cents per bushel to say nothing of the labor. 



Under ordinary conditions corn containing not more than twelve or 

 thirteen per cent of moisture at the beginning of the warm weather follow- 

 ing its maturity will carry or store safely, but new corn, that is soon after 



