26 BULLETIN" 558, IT. S. DEPARTMENT OF AGRICULTURE. 



STORAGE CHARGES. 



Many country elevators provide storage for a limited amount of 

 grain, while other elevator managers do not enter into this phase of 

 the business, preferring to purchase the grain outright at the time 

 of delivery. Many States have regulatory laws regarding the re- 

 ceiving, handling, and storage of grain. In almost all cases the law 

 fixes the maximum charges that may be exacted. Usually the sched- 

 ule of storage is based on 15-day periods. The schedules of rates may 

 vary from 1 to 2 cents for the first 15 days or parts thereof and from 

 one-quarter to one-half cent for each additional 15 days or part 

 thereof. The variation in the rate prescribed by law in the various 

 States is so great that no exact figures covering the grain-producing 

 nrea can well be given. Sometimes a maximum charge is defined 

 for continuous storage for a somewhat longer period of time. Thus, 

 one State permits a maximum charge of 4 cents per bushel from the 

 15th day of November to the 15th day of the following May. Some- 

 times managers provide free storage for their patrons as long as 

 storage room is available. 



A. 



HAZARDS OF ELEVATOR STORAGE. 



The matter of storing grain in county elevators for farmers is a 

 subject that has received considerable attention from the grain trade, 

 as well as from the farmers themselves. Several hazards are con- 

 nected with the storing of grain at local elevators, both for the ele- 

 vator manager and for the farmer, especially in the absence of laws 

 regulating the business. From the standpoint of the elevator man- 

 ager the principal objection to the practice is to be found in its 

 interference with the daily buying and shipping business, since when 

 the elevator is full of stored grain its use in receiving and loading 

 out daily receipts is greatly impaired. Frequently managers with 

 their houses filled with stored grain are forced to turn daily deliveries 

 over to a competitor. 



The practice of free storage usually has developed from severe 

 competition between houses. One manager may attempt to extend 

 his patronage by offering free storage. His competitor often is 

 obliged to offer the same inducement to hold his trade. 



The practice of free storage adds several items to the cost of oper- 

 ating the house. In the first place, the grain must be insured against 

 loss by fire, which is an item of considerable expense. Also the 

 manager of the house in almost all cases must bear the burden occa- 

 sioned by shrinkage of the grain while in store. If a farmer de- 

 livers 1,000 bushels to the elevator for storage he expects to have 

 1,000 bushels returned to him, or to receive payment for that amount 

 when sold. 



