MARKETING GRAIN AT COUNTRY POINTS. 3 



local market at all times. Usually, however, elevators remaining 

 open profit to a less degree than those operating during the harvest- 

 ing and marketing periods only. The latter are not burdened with 

 excess operating expenses, such as salaries, fuel, light, etc., during 

 that portion of the year when comparatively little grain is received, 

 while the houses kept open throughout the season rarely receive 

 enough grain during the postmarketing season to compensate for 

 the cost of operation. Neither do the latter houses distribute the 

 cost of operation on a per-bushel basis, because the price paid for 

 grain during the heavy marketing season is fixed by competitive 

 houses, which establish their figure upon the short-season basis. 

 If the house open throughout the year attempted to lower prices dur- 

 ing the heavy marketing season in order to accumulate a surplus fund 

 for the purpose of meeting operating expenses during the remainder 

 of the year, little grain would be received, because the farmer would 

 sell to the highest bidder, which would be the short-season house. 

 If, however, the house open throughout the year is able to purchase a 

 considerably larger volume of grain during the heavy marketing 

 period than its short-season competitors, it may be in a position to 

 pay the same price, and, on account of the increased volume, to make 

 a proportionately greater profit, thus providing for operating ex- 

 penses for the remainder of the year. Sometimes side lines are car- 

 ried to offset the difference in operating expense. It would seem 

 that price and other factors being equal, the houses that seek to 

 operate throughout the year should be encouraged. 



COLLECTION AND STORAGE OF GRAIN. 



Unless the country elevator is operated in connection with a mill 

 or some other manufacturing plant, it does not consume the commod- 

 ities received from the producers, but functions only as a collect- 

 ing point from which the grain is started to larger marketing centers 

 or to manufacturer and consumer. Such a collecting and shipping 

 point, if operated economically, is undoubtedly a great convenience 

 to a community. In the absence of such a local market the producer 

 is forced to dispose of his surplus grain at distant points, thus entail- 

 ing inconveniences and marketing hazards. Hence, to serve as a col- 

 lecting point for the surplus grain of a community, furnishing at the 

 same time the most direct route to a favorable market, is an important 

 function of the country elevator. 



The country elevator also serves as a temporary storage place 

 where small lots of grain delivered by the various producers are col- 

 lected until a volume is accumulated sufficiently large for economical 

 sale and transportation. In communities where a comparatively 

 small quantity of a certain variety of grain is marketed, several weeks 



