105 



We must find some means to educate the men in the field for this 

 work, because the farmers are commencing to demand that this phase of 

 their work be looked after. That demand is going to grow, and we are 

 going to have to meet it eventually. 



I don't believe very much in making new commercial machinery. 

 I do not believe in experimenting where there is already machinery 

 adapted for the work in hand. I do believe that there is now in existence 

 plenty of machinery to handle all our problems both in buying and 

 selling. 



The machinery that we use in our buying operations is perfectly 

 well known to every merchant in Philadelphia, but as equally unknown 

 to almost every farmer in the state. 



In our buying operations we use what is known as the negotiable 

 bill of lading. 



When goods are shipped by the wholesaler they are always shipped 

 in one of two ways. He either ships direct to the consignee, expecting to 

 follow with a bill, so that the consignee can go to the freight station and 

 get his freight the moment it arrives; or he ships to his own order, at 

 destination, and draws on the consignee for the value of the goods, attach- 

 ing to that draft the bill of lading. And in this latter case he uses the 

 negotiable or order form bill of lading. To this bill of lading and draft 

 he attaches an invoice or bill of the goods showing what has been shipped. 



The order form bill of lading represents the ownership of the prop- 

 erty, and it must be endorsed the same as a promissory note and turned 

 over to the buyer before the latter can get that freight. 



So the shipper sends the draft to the buyer's bank, with the bill of 

 lading, representing ownership of the property, the buyer pays for the 

 goods, secures the bill of lading and takes it and goes to the railroad and 

 lifts his freight. 



It is extremely simple machinery. It protects the shipper because 

 he receives from the buyer's bank the money to pay for the goods before 

 the bill of lading, representing ownership of the property, is surrendered 

 to the buyer. It protects the purchaser because the purchaser need not 

 pay the draft, under our present system, imtil the freight arrives. Then, 

 if he desires, he can inspect the property. And we buy on guaranty. 



It further protects the purchaser in the matter of his money to be 

 paid for the piu*chase because that money never leaves his o^vn home 

 bank. Our local farmers' exchange will not handle any money; the 

 member must deposit it in his own bank and that bank notifies the 

 exchange, when sending the order, that the money has been deposited. 

 So our plan offers the valuable service of bringing together the wholesaler 

 and the consumer. The operation carries with it almost no overhead 

 expense, because we keep no books; we simply bring the wholesaler and 

 consumer together. 



Last year we purchased under this plan, from March 1st until fall, 



