STUDIES IN EGG-MARKETING 809 



These longer-time policies are secured at a relatively low pre- 

 mium cost, thus again furnishing a source of profit. 



This handling of loans and insurance may in reality be con- 

 sidered a by-product industry. The costs on regular storing have 

 been greatly reduced per unit handled because an important source 

 of income is available from these by-product activities. Where 

 such is the case, the small firm is unable to compete and the 

 business becomes more and more centered in a few large units. 

 The effect thus far has been to cut down the margin on which 

 jobbers handle products for the future market. 



While jobbing has well-nigh displaced the business of commis- 

 sion merchants in the primary markets of the Central West, it is 

 of interest to note that the irresponsible type of commission men 

 had a special inducement to leave the field in Minnesota as the 

 result of a law passed fourteen years ago. Under the operation 

 of that law each commission merchant must obtain a license from 

 the Railroad and Warehouse Commission and also execute and 

 file with the Secretary of State a bond to the state for the benefit 

 of consignors. The amount of the bond and sureties are fixed by 

 the Commission, which may increase or reduce the amount from 

 time to time. 



W T hen the law was first proposed it was intended to apply spe- 

 cifically to grain commission men because of flagrant abuses 

 alleged in connection with that business. For instance, if a car 

 of grain was received in the morning when wheat was selling at 

 eighty cents and the price rose to eighty-two cents during the day, 

 the commission man might return an account based on sales at 

 the former figure and pocket the difference, even though the sale 

 was made at eighty-two cents. Under the new law commission 

 men were compelled to indicate the exact minute and hour of the 

 day when the sale was made. The law was also made to apply to 

 other commission merchants handling farm products, although the 

 specific requirements in other cases were not the same as for grain. 



As might be expected, the commission merchants were at first 

 opposed to regulation of this kind. Under the operation of the 

 law, however, it has been found that these very restrictions have 



