MAKKETTNG GRAIN AT COUNTRY POINTS. 37 



test weight was determined. The amounts thus obtained varied from 

 those at the elevator from five-tenths to 4 pounds, only one sample 

 showing no variation, with an average loss of 1.23 pounds. Esti- 

 mating the 50 loads at 60 bushels each, the total deduction, using 

 the scale shown above, on the basis of the test weights as obtained by 

 the elevator, would have been $59.40, while on the test weights ob- 

 tained at this office it would have been $121.80 — a loss to the elevator 

 of $62.40, or 2.08 cents per bushel. 



In addition to the loss from this source the elevator made no men- 

 tion of reductions in grade for other reasons than a low test weight, 

 although three samples were dark wheat, 14 dark and yellow, 16 

 yellow and dark, and 7 yellow. Two samples testing 57 pounds and 

 grading No. 3 on that basis would probably have been graded " sam- 

 ple " on account of being musty ; one sample testing 57 pounds would 

 have graded No. 4 on account of being dirty and containing a large 

 amount of cut grain and smut balls. One sample, testing 60 pounds, 

 would have graded "sample" for the reason that it was smutty; 

 another sample (56 pounds) was an almost pure Turkey wheat and 

 should have commanded a premium. Still another sample was so 

 soft that it is probable that it would have been graded red wheat, 

 instead of hard, the price of the former being considerably lower at 

 that time. It is possible that the elevator sustained no loss on ac- 

 count of these defects, as these were only occasional loads whose 

 identity was lost by mixing with a large volume of other wheat, and, 

 for the same reason, no premium could have been paid on the load 

 of Turkey wheat, but it is probable that each load had its effect on 

 the entire lot. If the poor wheat had been docked properly a more 

 attractive price could have been paid for the better grades. 'Other 

 instances without number could be cited of overgrading or under- 

 grading, but these two are sufficient to indicate the tremendous loss 

 both to dealers and producers from this cause. 



There are several reasons for overgrading by the country elevators. 

 Undoubtedly some of it is caused by faulty judgment and ignorance, 

 but by far the greater part is due to the fear of losing customers. 

 Many dealers admitted overgrading, claiming self-protection as the 

 reason. 



HAZARDS OF THE COUNTRY ELEVATOR BUSINESS. 



The hazards of the country-elevator business include variation in 

 crop yields, unfair competition, the use of inadequately constructed 

 and equipped buildings, variation in grades, necessity of properly 

 interpreting market information, contracting for future delivery, 

 storage, car shortages, failure of sellers and buyers to observe con- 

 tracts, and financial risks. 



