10 BULLETIN 077, U. S. DEPARTMENT OF AGRICULTURE. 



COMPETITION BETWEEN" SHIPPERS. 



There is sometimes considerable competition between shippers in 

 producing territories. The most common kind is the competition 

 between regular shippers who live in the same territory and who 

 have built up a business and are in it to stay. Their relations are 

 more or less friendly, and such competition acts to stimulate the 

 country market. 



SPECULATORS. 



Speculators work in divers manners. Lack of space does not per- 

 mit a full discussion of the workings of speculators. One or two 

 illustrations will serve. " Foreign " speculators are those who think 

 that prices are going to advance considerably in the immediate 

 future. They appear in a producing section and contract for hay 

 at a price which the country shipper can not afford to offer. In 

 many instances no money is paid down to bind the bargain, because 

 the producer is so elated with the high price he believes he will get 

 upon delivery of his hay. If the market does strengthen, the deal 

 goes through ; but if the market fails to advance and the price drops, 

 the speculator suddenly leaves the region. Sometimes a few dollars 

 per ton are paid down, and if the speculator has to break his bargain 

 he will sometimes go to the regular country shipper and try to get 

 relief by turning over the business upon receipt of the money paid 

 out. When this is done, the regular shipper has the hard task of 

 trying to convince the producers that the speculator's high price 

 was all wrong in order that he maj^ be able to buy hay at what it is 

 really worth. Such speculators cause a great deal of trouble and 

 dissatisfaction and serve no legitimate aid in the marketing of hay. 



LEGITIMATE " OUTSIDE " BUYERS. 



" Outside " buyers sometimes come into a territory and work some- 

 what as do the speculators, in that they pay a higher price than 

 the regular shipper can afford to pay. A case of this kind occurs 

 when the outside buyer has a large order to fill at a very good 

 price and does not have enough hay in his own territory to fill it. 

 He is perfectly justified in advancing prices in the territory in which 

 he works, but it is not often that he buys at such high prices for a 

 very long time. When the " outside " buyer is operating, it naturally 

 hinders the resident shipper's business. One reason why the outside 

 buyer can afford to pay very high prices is that he may be shipping 

 the hay into a territory with which the resident shipper is unfamiliar. 

 There may be a marked difference in the manner of interpreting 

 grades in this market and in the one to which the resident shipper 

 usually ships his hay. These operations work more or less hardship 



