THE MARKETING OF WHEAT 219 



to show that combinations between elevators and railroads have 

 practically eliminated competition. Many of the railroad offi- 

 cials are stockholders in elevator companies. 



The History of the Primary Market has been the history of the 

 terminal elevator systems. In the control and operation of these 

 systems lies the key to a proper comprehension of the functions 

 of the primary market in grain distribution. The terminal ele- 

 vators, operated on such a stupendous scale, receive, store and 

 transfer all grain that flows from the local markets to the 

 primary market. They contain by far the larger portion of* the 

 country's visible grain supply. The importance of a primary 

 grain market like Chicago, the historic storm center of the 

 competitive conflict for control over the Mississippi valley grain 

 movement, is augmented by the fact that its supremacy as a 

 distributing center for manufactures depends largely upon its 

 capacity to command the agricultural products which are ex- 

 changed for the manufactured products. Herein lies the ulti- 

 mate explanation of the consolidation of the distributive 

 agencies engaged in the grain trade. 



The Pacific coast warehouses, located on the railroads and 

 rivers, are generally operated in the interest of milling, export- 

 ing or speculative dealers. In recent years, many farmers have 

 shipped directly to the coast cities and placed their grain in 

 storage there. Each farmer makes certain of securing the re- 

 turn of his own wheat by marking his sacks and piling them to- 

 gether, for the wheat, coming from the dry interior, usually 

 gains enough in weight to pay for storage. The large wheat 

 dealers of Portland and San Francisco have local buyers to rep- 

 resent them at the railroad stations and steamboat landings. 



The Inspection of Wheat. The rigid system of grain in- 

 spection and grading maintained by various states and trade 

 organizations not only simplifies and facilitates the movement 

 of wheat to a surprising extent, but it also tends to minimize 

 fraud in the grain trade. " In wheat inspection the greatest care 

 and accuracy are always maintained. The procedure at Min- 

 neapolis is approximately as follows: One man, passing along 

 the cars, records their numbers and initials, and takes note 

 whether their seals have been tampered with; another man 

 breaks the seals and opens the doors ; the third man is the wheat 

 expert who is the official deputy inspector of the state. Quick 



