96 BULLETIN 558, U. 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 
srea 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. 
HAZARDS OF ELEVATOR STORAGE. 
The matter of storing grain in country 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. 
