THE MARKETING OF MILL FEEDS. V 
local rates of freight from cities where such warehouses are situated 
to final destinations, it is important that this feature be looked into 
before storage arrangements are made. 
Freight charges on stored shipments to point where stored are 
collectible at tune of storing, the balance being billed forward when 
the shipment is ordered out to its final destination. Storage charges 
are payable monthly. 
HANDLING OF FEEDSTUFFS BY COOPERATIVE SOCIETIES. 
In line with everything else, the overhead expenses of middlemen 
have grown to such an extent that unless a substantial margin of 
profit is added to their cost price it is impossible for them to conduct 
their business on a paying basis. This, in a measure, explains why 
the retail selling price of feedstuffs during the last few years ad- 
vanced more than the increase in price received by the manufacturer 
seemed to warrant. The difference between mill and retail prices at 
present often amounts to as much as $10 per ton, exclusive of freight 
charges. 
Largely because of this wide variation in prices and because it was 
thought in some communities that the service performed by the local 
dealer was not altogether satisfactory, a large number of cooperative 
buying organizations have undertaken to purchase the feed require- 
ments of their members collectively. 
The feeds are generally retailed by the societies to the farmer at 
the prevailing market prices and the accumulated profits are dis- 
tributed annually on a pro rata basis, according to the amount of the 
purchases of the individual member, or according to the number of 
shares held in the organization by each farmer. 
At first, purchases by cooperative societies were made largely from 
wholesale dealers and jobbers in neighboring markets because of the 
practice of these merchants to sell on "arrival draft" basis, which 
enabled the manager of the organization to inspect contents of car 
before payment was made. Shipping mills required the payment of 
drafts covering their shipments " at sight," and because of the fear 
that difficulty would be encountered with claims for damage filed 
after payment for the goods had been made, few orders were placed 
with mills. Since it has been the experience of these associations that 
all just claims are receiving due consideration and are usually 
promptly disposed of, this objection has largely disappeared and 
business between cooperative societies and shipping mills has in- 
creased substantially. 
With the growing tendency on the part of consumers and farmers' 
organizations to buy their feedstuffs cooperatively, it is essential that 
they understand trading rules fully, and that they have a clear idea 
about the definitions of the various kinds and classes of feeds. 
TRADE RULES. 
In spite of the importance of the feed business there were until 
recently no generally recognized rules covering trades. Recently a 
number of exchanges and many important trade organizations have 
adopted the regulations formulated by a well-known feed distribu- 
tor.-" a— oeiation. 
8964°— 22 2 
