24 BULLETIN 919, U. S. DEPARTMENT OF AGRICULTURE. 



both instances amounts to about 10 per cent or 15 per cent of all hay 

 shipped. 



Trade associations have made numerous regulations designed to 

 eliminate these unfair practices between shippers and buyers, but 

 lack of enforcement authority and of an impartial agency to deter- 

 mine grades seems to be the principal cause of their inability to 

 eliminate them. From its experience in the regulation of the inspec- 

 tion of grain and cotton, the Bureau of Markets believes that Federal 

 inspection of hay made available to the interested parties in any con- 

 troversy concerning grades would overcome many of the present dif- 

 ficulties and eliminate many of the heavy losses which are ultimately 

 added to the cost of marketing. 



The terminal markets are not free from practices which are fre- 

 quently very unsatisfactory to shippers and buyers using them, but 

 these will be discussed in describing the methods of marketing hay at 

 terminal markets. 



DEALERS IN TER31INAL MARKETS. 



While the general methods of handling hay at the various ter- 

 minal markets are similar, there are mam 7 practices that are peculiar 

 to certain markets. 



CLASSES OF DEALERS. 



Dealers operating at terminal markets may generally be classed as 

 brokers, commission men, receivers, and shippers. There is no 

 sharply denned line between the various classes, however, for the 

 reason that many dealers conduct their business in such a way as to 

 place them in two or more classes at the same time. For example, 

 it is frequently the case that brokers are also commission merchants, 

 or commission merchants are also receivers and shippers, or, again, 

 receivers are also shippers. The term " distributors " is sometimes 

 applied to that class of dealers designated as shippers to distinguish 

 them from country shippers. 



Brokers. 



Brokers operate usually in large consuming sections, but some are 

 also located in other markets. Their business is primarily to sell hay 

 as direct local representatives of the shipper. The activities of the 

 broker in distributing markets in behalf of the country shipper have 

 alread} 7 been described, and the business of the broker in other mar- 

 kets is conducted in practically the same manner. 



< 'commission Merchants. 



There is considerable difference between brokers and commission 

 merchants in most markets, and the services rendered are quite dif- 



