THE MAKKETIFG OF MILL FEEDS. 9 



local rates of freight from cities where such warehouses are situated 

 to final destinations, it is important that this feature be looked into 

 before storage arrangements are made. 



Freight charges on stored shipments to point where stored are 

 collectible at time of storing, the balance being billed forward when 

 the shipment is ordered out to its final destination. Storage charges 

 are payable monthly. 



HANDLING OF FEEDSTUFFS BY COOPERATIVE SOCIETIES. 



In line with everything else, the overhead expenses of middlemen 

 have grown to such an extent that unless a substantial margin of 

 profit is added to their cost price it is impossible for them to conduct 

 their business on a paying basis. This, in a measure, explains why 

 the retail selling price of feedstuffs during the last few years ad- 

 vanced more than the increase in price received by the manufacturer 

 seemed to warrant. The difference between mill and retail prices at 

 present often amounts to as much as $10 per ton, exclusive of freight 

 charges. 



Largely because of this wide variation in prices and because it was 

 thought in some communities that the service performed by the local 

 dealer was not altogether satisfactory, a large number of cooperative 

 buying organizations have undertaken to purchase the feed require- 

 ments of their members collectively. 



The feeds are generally retailed by the societies to the farmer at 

 the prevailing market prices and the accumulated profits are dis- 

 tributed annually on a pro rata basis, according to the amount of the 

 purchases of the individual member, or according to the number of 

 shares held in the organization by each farmer. 



At first, purchases by cooperative societies were made largely from 

 wholesale dealers and jobbers in neighboring markets because of the 

 practice of these merchants to sell on " arrival draft " basis, which 

 enabled the manager of the organization to inspect contents of car 

 before payment was made. Shipping mills required the payment of 

 drafts covering their shipments " at sight," and because of the fear 

 that difficulty would be encountered with claims for damage filed 

 after payment for the goods had been made, few orders were placed 

 with mills. Since it has been the experience of these associations that 

 all just claims are receiving due consideration and are usually 

 promptly disposed of, this objection has largely disappeared and 

 business between cooperative societies and shipping mills has in- 

 creased substantially. 



With the growing tendency on the part of consumers and farmers' 

 organizations to buy their feedstuffs cooperatively, it is essential that 

 they understand trading rules fully, and that they have a clear idea 

 about the definitions of the various kinds and classes of feeds. 



TRADE RULES. 



In spite of the importance of the feed business there were until 

 recently no generally recognized rules covering trades. Recently a 

 number of exchanges and many important trade organizations have 

 adopted the regulations formulated by a well-known feed distribu- 

 tors' association. 



8964°— 22 2 



