16 BULLETIN" 558, U. S. DEPARTMENT OF AGRICULTURE. 



per cent to interior terminals outside of their own State ; 30 per cent 

 to export terminals; 7 per cent direct to interior buyers, jobbers, re- 

 tailers, and consumers in Eastern States; 1 per cent to interior buyers 

 in the South ; and 20 per cent direct to mills. The small percentage 

 shipped to southern points is probably accounted for by the preva- 

 lence of the brokerage S} r stem in that section of the country and also 

 by the fact that southern bikers usually purchase grain in bags, a 

 condition impossible for most country elevators to fulfill, owing to 

 lack of proper equipment. 



PRICE PAID TO THE PRODUCER. 



There are many factors which the country buyer must consider in 

 establishing prices to be paid to the producer. If purchases are to 

 be made by grade, prices must be fixed for the popular grade of each 

 variety of grain handled. 



BIDS RECEIVED BY COUNTRY ELEVATORS. 



The dealer receives postal-card bids daily from terminal market 

 dealers, track buyers, and others offering prices for stipulated grades 

 of grain. Telegraph, telephone, and mail bids also are received 

 from these sources at frequent intervals, together with offers from 

 jobbers, brokers, retailers, and consumers. These bids, covering lots 

 of definite size or grade, are so limited in character that they can 

 not be sent out as generally as postal-card quotations. Quotations 

 from the various markets are printed in the newspapers and daily 

 market bulletins are published in the large terminal markets. Many 

 dealers also subscribe to a service furnished by the telegraph com- 

 panies, whereby they receive the quotations from one or more of the 

 large terminal markets at frequent intervals during the day. This 

 is commonly known as the " C N D " service. News-letters are 

 issued by various commission houses, which contain information 

 regarding the prices at which grain of various grades is selling in 

 the markets, both for immediate and for future delivery, and fre- 

 quently carry conjectural comments regarding the future trend of 

 prices. From the information obtained from these sources the 

 country buyer must decide what price is obtainable for his grain. 

 The seller must know, in each instance, how his grades and weights 

 compare with those in the market under consideration,, as well as 

 the proper amounts to deduct for brokerage, commissions, weighing, 

 inspection, etc., and in the case of bids to arrive or cash prices 

 paid for consigned grain at terminal markets he must be aware of 

 the proper freight charges. The same freight rate does not always 

 apply over all routes between the same points ; hence in case the offer 

 is for shipment via a certain route or for delivery on a specified 



