12 BULLETIN 558, U. S. DEPARTMENT OF AGRICULTURE. 



Grain Dealers' National Association has adopted uniform trade rules 

 and a standard form of contract, while many of the terminal markets 

 have similar regulations. To avoid misunderstandings, both buyer 

 and seller should insist on the exchange of written agreements clearly 

 setting forth the terms of sale. 



CONSIGNMENTS. 



When the grain is consigned to a commission merchant at some 

 terminal market it is, in accordance with the shipper's wishes, either 

 sold by the merchant upon arrival or stored in an elevator or held 

 in cars pending further instructions. After final disposition the 

 commission merchant renders an account sale, which sets forth the 

 gross amount received for the car, amount of his commission (usually 

 from one-half to 1 cent per bushel, varying with the market and va- 

 riety of grain) , freight charges, and weighing and inspection fees, to- 

 gether with the interest on any money advanced on the shipment. In 

 some markets there are still other charges, such as switching or eleva- 

 tor fees, in case the grain has to be cleaned, dried, or stored. Any bal- 

 ance due the shipper not covered by amount of draft advanced is 

 then remitted. 



RELATIVE USE OF METHODS. 



From information obtained from various elevators in the surplus- 

 grain States of the Middle West during the year 1915, it appears that 

 approximately 50 per cent of the grain received was sold on track; 

 29 per cent to arrive; and 21 per cent consigned. In Minnesota and 

 the other grain States of the Northwest nearly all of the shipments 

 from the elevators reporting were consigned, while in States east of 

 the Mississippi over 75 per cent was sold on track, the remainder 

 being about equally divided between sales to arrive and consign- 

 ments. In Texas and Oklahoma over 50 per cent was sold to arrive 

 and most of the remainder was sold on track, these States consign- 

 ing very little. The proportion consigned as compared with the 

 amount sold on track or to arrive increased with great regularity 

 from the eastern and southern portion of the grain belt toward the 

 Northwest. Experience and observation show that these propor- 

 tions will vary somewhat each year in accordance with the condi- 

 tion of the crop, a larger proportion being consigned when the 

 quality is poor than when good. This is due to the fact that when 

 the quality is generally poor a car of good grain frequently is sold 

 at an exceptional premium, while it is impossible to tell what a poor 

 quality is worth by description and a better price can usually be ob- 

 tained by consigning it to a large market, where all classes of buyers 

 will have an opportunity for examination before bidding for it. 



PLACE OF SALE. 



Usually consignments are made either to commission merchants 

 at terminal points or to small market brokers, the latter ultimately 



