1 30 THE WHEAT INDUSTRY 



grain is bought at the grade shown by test, which 

 grade the buyer, after the grain is his property, 

 will try to improve. The reason for this appears 

 when we know that each grade usually has a 

 market value of two to three cents per bushel above 

 that of the next lower grade. 



While grading wheat follows general rules, ex- 

 perience is necessary to become proficient in the 

 work. Much depends on the judgment of the 

 buyer since he must be fair both to the seller and 

 to the purchasing company. 



The Ownership of Elevators. - - In the earlier 

 years the elevators were owned and operated by 

 individuals. Many were ex-farmers who pre- 

 ferred business to active farming and thought it 

 an easy way to make money. Others were bus- 

 iness men attracted to that line of work. Some 

 were highly successful, and those who lacked 

 business sagacity or were careless in management 

 failed. Competition between rival concerns in 

 the same town or in near-by towns forced operators 

 to buy on very close margins. The buyer pur- 

 chased independently, making himself the owner 

 of the wheat in transit to central market. If 

 the price advanced he was the gainer ; if it fell he 

 suffered loss. Buying thus became intimately 

 related to market tendencies, and many men failed 

 because they did not guard against falling prices 

 by buying with sufficient margin. When prices 



