THE MARKETING OF MILL FEEDS. 5 



It often happens that shippers are advised, either by telephone or 

 telegram, that a certain price per ton can be realized for their 

 shipment, and after obtaining consent to sell at that price the ship- 

 ment is immediately sold at a higher quotation. The shipper may or 

 may not receive more than the price which he had said would be 

 satisfactory to him. Frequently he does not. This practice, while 

 not general, unfortunately is indulged in with too great frequency, 

 and steps should be taken by the trade and exchanges to abolish it, 

 because it is inimical to their interests and those of bona fide dealers. 



Sales to self-owned concerns or those in which the commission man 

 may have an interest, or concerns solely established for the purpose 

 of having shipments booked to them temporarily, at prices not fully 

 representing prevailing market values, with the intent to sell im- 

 mediately at higher prices, should not be permitted. 



The handling of loheat feeds m distributing mm'kets. — Jobbers 

 in distributing markets differ from jobbers in producing markets in 

 their methods of handling wheat feeds. The latter, while they 

 have the option of placing shipments in transit unsold when tender is 

 made by mills on contract, do not follow this method to the same 

 extent as jobbers in the heavy consuming sections. They generally 

 prefer to make sales through brokers or direct to jobbers in dis- 

 tributing markets in principal dairy sections. 



A large volume of the business of jobbers or wholesale dealers 

 in distributing markets is done " on rails." When it becomes neces- 

 sary for the jobber or wholesale dealer to furnish billing instruc- 

 tions for the stuff he. has contracted, and transit offerinsfs are heavv, 

 he will, particularly during times of light demand, order shipments 

 direct to destination according to his open orders on file. 



If he has no open orders on file he has the option of reselling to 

 another jobber, of placing the feed in storage, or of placing the ship- 

 ment in transit to be held at a designated point for orders. 



In the more important feed-consuming sections facilities are ex- 

 tended by the railroad companies whereby shipments may be billed 

 to so-called holding or diversion points, from which shipments may 

 be reconsigned at the through freight rate. A diversion charge is 

 assessed for this privilege and demurrage charges are assessed if the 

 car is held beyond the free-time period. 



If the jobber, therefore, has no open orders on file, he often orders 

 his shipments to such holding points with the view of disposing of 

 them prior to their arrival at such points. He may select a holding 

 point close to the point of shipment or one located in the section 

 in which the bulk of his business is transacted, depending upon 

 prevailing conditions. 



In the selection of the holding point the jobber is not restricted 

 to one located in the territory as indicated by the rate-basing point 

 shown on the contract and on which basis the sale was consummated. 

 In the northeastern section, for instance, it is a well-established rule 

 that in all delivered sales to any of the following trunk-line terminal 

 points — Boston, New Yorkj Philadelphia, and Baltimore — the point 

 specified shall be considered as a rate basis only and not necessarily 

 the final destination of the goods, and that shipnient shall be made to 

 any point and via any line open for business in the eastern trunk 

 line territory designated by the buyer which is reached by lake or 



