MARKETING HAY THROUGH TERMINAL MARKETS. 43 



cipal cause of a great many of these misunderstandings. The char- 

 acter of the grades, as has already been mentioned, is also a con- 

 tributing factor. 



In the first place, official grade certificates for outbound ship- 

 ments are seldom furnished by shippers from terminal markets. A 

 number of reasons have been advanced for this practice. It is 

 claimed to be impracticable to issue certificates for cars that have 

 been only " plug "or car-door inspected. However, such certificates 

 are issued and used in settlements for hay in inbound shipments. 

 Grade certificates for hay loaded out of warehouses at terminal 

 markets are issued in only a few instances; in some markets, it is 

 stated, $1 or $2 per ton more is charged for hay with which a grade 

 certificate is furnished. It appears, therefore, that the grade stated 

 by shippers in their quotations and terms of sale are personal grades 

 and not official market grades. Many shippers claim that the grades 

 given the hay are those desired by the buyer, but since the buyer 

 would hardly reject hay which conformed to his own ideas as to 

 grade it is doubted whether this is the reason for the use of such 

 grade terms by shippers. 



It has been noted also that more No. 1 hay is shipped out of the 

 various terminal markets than the official records show has been 

 shipped into them during a stated period, or, in other Avorcls, the 

 grades seem to have been raised on outshipments. This practice is 

 never satisfactory to the' buyers and they usually show their dis- 

 approval whenever they have an opportunity to do so. 



One of the remedies for the difficulties now experienced in con- 

 nection with grades in the terms of sale is to state definitely what 

 grades are to be used, i. e., whether they are individual or personal 

 grades, market grades, or association grades. Another remedy is 

 to leave the interpretation and application of the grades to a compe- 

 tent and disinterested party whenever possible. 



OTHER MARKET PRACTICES. 



In an apparent effort to overcome some of the difficulties expe- 

 rienced in shipping hay from terminal markets under present con- 

 ditions, dealers in some of the western distributing markets have 

 engaged in a marketing practice which is a combination of the activi- 

 ties of both a commission merchant and a shipper. Such dealers 

 solicit orders from buyers in the same manner as shippers do and 

 also solicit consignments from country shippers. When orders are 

 received they are filled from the consignments which have been made 

 by country shippers to these dealers. The advantage claimed is 

 that the shipper consigning the hay receives more than if it were 

 sold on the market because he obtains the whole amount paid by the 



