MARKETING GRAIN AT COUNTRY POINTS. ily 
railroad the shipper must ascertain whether such routing or de- 
livery is possible under the rate quoted. 
PREMIUMS AND DISCOUNTS. 
The estzblishing and issuing of price quotations from marketing 
centers is a broad subject, embracing some features that often lead 
to misunderstanding between the producer and the country-elevator 
manager and between the manager—especially one with little ex- 
perience—and terminal market dealers. Price quotations, particu- 
larly as they appear in many newspapers, are often misleading and 
confusing. Some farmers note the top price and expect the local 
elevator to bid for their grain upon that basis. Frequently the top 
prices paid in large markets are only for a few cars of extra choice 
quality of grain, or, as sometimes happens, they represent a pre- 
mium for a certain kind of grain of which the supply is limited 
and for which the demand is unusually keen. Thus on July 17, 
1915, during the early movement of new wheat, local elevators 
in a certain country town were offering’ the farmers $1.10 per 
bushel for wheat. Track buyers, representing a large terminal 
market within shipping distance, were offering the local elevators | 
$1.14 per bushel. The newspapers, however, appeared with large 
headlines proclaiming the fact that wheat was selling in this terminal 
market for $1.30. Freight rates from the country station to this 
terminal market were 4.2 cents per bushel. The farmer patrons of 
the country station concluded that the local elevators were buying 
their wheat at $1.10 and reselling it in the central market at a price of 
$1.30 per bushel, less freight. When the situation was analyzed it 
was found that the price of $1.30 was paid for a single car and 
that it was an unusual sale, the premium being due-to the fact that 
several millers desired wheat of that particular variety. Owing to 
the ight movement at this time, however, only one car was available, 
so competitive bidding forced the price to the abnormal level. If at 
that particular time there had been ten or fifteer cars of the same 
quality of wheat on the market, undoubtedly the price would have 
been lower. The country buyers were unable to base their price on 
premium quotations, because, in all probability, by the time their 
grain was marketed receipts would have increased materially and 
the price would have dropped to the normal level for cash grain. 
The $1.14 track bids offered to country dealers had taken this fact 
into consideration, as the bids were made for delivery within two 
weeks. Commission merchants in the central market published the 
high premium sale for the purpose of creating a favorable impression 
of that market among inexperienced country dealers and thereby 
_ securing larger consignments. 
93179°—Bull, 558—17——_3 
