THE LOCAL ELEVATOR MANAGER 343 



into classes and sub-classes, and these again into grades. The 

 grade depends on the color and condition, the test weight per 

 measured bushel, the moisture content, on certain inseparable 

 materials, and other factors. In addition to naming the grade, the 

 local manager must determine the dockage, that is, the amount 

 of foreign matter and broken kernels, which he screens out of 

 the sample by putting the grain over a sieve. If 100 pounds 

 of grain contains 10 pounds of screenings or dockage, it is 

 customary to pay for the 90 pounds of grain out of each 100 

 delivered by the farmer. More will be said later concerning the 

 dockage problem. 



The local elevator manager may dispose of his grain in a num- 

 ber of ways, but the two most usual practices are to consign and 

 to sell to arrive. If he thinks the market is working upward, he 

 consigns to one or more commission houses with which he has 

 established commercial relations. The financing of the grain in 

 such a case is usually done in this manner. The commission house 

 makes an advance to the country shipper when the grain starts 

 to move, enabling the country manager to pay cash for the farmers' 

 grain. This loan is repaid as the grain is sold at the terminal. The 

 country shipper then forwards by mail draft with bill of lading to 

 his consignee, who usually honors the draft several days before 

 the arrival of the car, charging an interest rate for the money 

 advanced as fixed by the Grain Exchange at that market. This 

 banking function of the commission merchant is very important 

 in the markets of Duluth, Minneapolis, and Chicago. The 

 commission merchant in turn borrows from this city bank, 

 using bills of lading as security. To indicate the importance of 

 this kind of financing, it may be mentioned that one Chicago 

 commission house had at one time over $800,000 of borrowed 

 money advanced to the country on consigned grain, none of which 

 grain was yet unloaded at the terminal, and another house had 

 out $2,000,000. 



If the market does not seem to be a rising one, or if a temporary 

 car shortage impends, or if certain other conditions prevail, the 

 local manager may sell his grain "to arrive." In the Minneapolis 

 district this term usually means to arrive at Minneapolis within 

 20 days after acceptance of the bid. In the Chicago district the 

 term "to arrive" refers to time of shipment, and hence the bids 

 sent out from Chicago always specify time of shipment as three 

 days, ten days, thirty days, ninety days, and so on. The local 

 shipper, when he accepts the to-arrive bid, has his grain sold at a 



