agents in the Northwest grade the first few loads of a farmer's grain and thereafter give the same grade to the rest of his grain, loads that are of such quality as to be obviously different from the general run being graded separately as they occur.

Competition prevents accurate grading. In instances farmers believe their grain to be of the highest quality, and as a result will often sell to an elevator that offers them a better grade than the quality of the grain actually justifies, even though in such cases the elevator may make up for the overgrading by taking excess dockage. All of the above and other factors tend to prevent the accurate grading of grain, and this remains true even though many country agents from long experience in the constant handling of grain are very proficient in sight grading. Evidence of overgrading by country agents, at least in the Northwest, is frequently found, and subsequently there is presented in this volume certain statistical evidence in support of this conclusion (Ch. VIII, sec. 10 ff).

INTERVIEWS WITH COUNTRY AGENTS ON GRADING.-Fifty-four out of the 88 elevators visited by the agents of the Department of Agriculture in Iowa and Illinois claimed that their purchases from farmers were based upon actual grades delivered, while 33 reported them on the basis of average receipts. Of the hundred and odd agents® interviewed in the Northwest that made replies as to grading, about twothirds claimed that it was their intention to buy strictly on grade. The other third admitted that they were lenient on grades-a majority of them on close tests only, the balance as a general rule.

Several of the parties interviewed were very frank in stating that the grades given were the result of guesswork. Others said the grain was bought on its merits regardless of grades, one of the mills reporting being guided more by the millable value of the wheat than by the grades. One manager interviewed stated that he graded very closely, as he had been suspended and the elevator closed by the State because he had been declared incompetent to buy grain. He was finally allowed to resume buying and has given satisfaction ever since.

Of those admitting they were lenient on close tests, the usual leeway given was up to one-half a pound on test weight, although one concern allowed up to three-fourths of a pound and another gave the farmer the advantage whenever possible.

A majority of the northwestern elevator managers reported that it was their intention to grade each load delivered, but about one-fifth bought grain on average receipts and a few stated that each load was graded when it was possible to do so. One party interviewed said he graded each load unless the farmer's grain appeared to run about the same and then it was bought on the average grade.

When large deliveries from one customer were being made, one concern graded the grain on average receipts provided the variation between the best and poorest grain made a good average. Another buyer stated that although he endeavored to grade each load he occasionally missed one, and in such cases he graded the load as though it were the usual run of the farmer's grain. Another country elevator agent tests the first three or four loads a farmer hauls to get a line on his grain, and then grades the rest of the farmer's grain the same. One buyer graded on average receipts, although he graded separately any load that looked poorer than the average.

• Line agents not included.

DOCKAGE.-Dockage may be defined as the number of pounds deducted from the gross weight of the grain by way of allowance for the foreign material contained therein, in order to determine the net weight of the grain. To find the amount of dockage an average sample of the farmer's grain is obtained from the load and subjected to siftings through a series of sieves shaken by hand. The meshes of the sieves employed in this process are of graduated sizes similar to those prescribed by law for use by the terminal market inspection departments. The sample of grain is subjected to successive siftings, each through a sieve of a smaller mesh than the one preceding, until all the refuse has been sifted out, leaving only the grain.

In determining dockage there is employed, in addition to the sieves mentioned, in those cases where the grain contains a mixture of oats, a machine known as a "kicker." This contrivance consists of a series of slanting screens, one below the other, within a wooden frame, so arranged that they can be violently agitated by the turning of a crank. The sample is fed into the top of the machine, the crank is turned, and the grain in sliding over the screens is separated, the oats being spouted off into one pan and the other grain flowing from another spout into another pan.

In computing the dockage on a load of grain, the simplest method is probably to fill the test-weight kettle with a representative sample of the load (or use the sample employed to determine the test weight) and subject this sample to the sifting processes described. The refuse is then returned to the test-weight kettle, the scale beam of which, as already indicated, is so graduated as to record the number of pounds that the contents of the kettle will weigh to the bushel. The result will be the number of pounds dockage to the bushel, and this result multiplied by the gross bushels in the load gives the total pounds dockage on the load.

Correct dockage is not always taken by the country house any more than accurate grades are always given. The dockage taken is frequently estimated by the agent, and on account of competition or other factors its amount is often far from correct. According to the information obtained by the Commission, however, it seems probable, though not certain, that the farmer is less often favored by underdocking on the part of the agent than he is by overgrading. In fact, the charge has been made by farmers that the country elevators have taken a heavy toll from them by way of excessive dockage. This allegation is subjected to some statistical analysis in another section of this volume. (Ch. VIII, secs. 10 ff.)

8

INTERVIEWS WITH COUNTRY AGENTS ON DOCKAGE.-While most of the elevator agents interviewed by the Commission reported that they "took full dockage" or were "strict on dockage." there were several who stated that less than the full dockage was taken. In one instance this latter practice, so the manager stated, was due to orders of the board of directors because of "rows" with the farmers. There were also a few agents who admitted that they were "heavy on dock

Dockage on all grains, if containing foreign material, was taken by practically all the country elevators in Minnesota, Montana, and the Dakotas before the introduction of Federal grades. In the other States it was much less prevalent. For example, of 88 elevators visited by the agents of the Department of Agriculture in Iowa and Illinois, only 12 reported taking dockage-6 in Illinois and 6 in Iowa.

This applies to elevators other than line. Statistics demonstrate that the lines favor the farmer much less on dockage than on grades.

age," i. e., took excessive dockage. Three of these latter elevators stated that the heavy dockage was taken to make up for liberal grading. One agent reported that he used to guess at the dockage and another that he took more dockage on low-test than on high-test grain. Allowances made in price or otherwise to the farmer for dockage contained in the grain usually will depend upon whether or not the foreign material has any market value. Thus, one elevator in Chester, Mont., reported that no allowance was made because the dockage was without value. If the dockage, on the other hand, has value for feed or other purposes, the elevator will be able to obtain something for the screenings either by cleaning with its own facilities (if equipped to do so) or by having the grain cleaned at the terminal market. In consequence the elevator can often afford to, and sometimes does, allow something for the screenings in the price which it offers. Thus one elevator reported that it paid the farmers' market prices for the screenings obtained from their grain; another that it allowed 1 cent per bushel; another that it took full dockage but allowed for it in price, etc. If equipped with cleaning machinery the elevator may make no allowance in price but may instead return the screenings to the farmer. In the latter event a cleaning fee is usually charged." This practice was reported by a few elevators.

During the busy season some elevators do not allow for dockage and take it all, but in the slack season, when they have time to clean the grain, the dockage is returned to the farmers, if requested, and a charge made for the cleaning (see also Ch. VII, secs. 8-13).

Two or three elevators reported that the farmer is given the option of taking back his dockage upon payment of the cleaning fee or of selling it to the elevator, whichever he may prefer.

Dockage up to a certain point is retained without allowance by some elevators, the rest being allowed for in buying. One elevator in Montana reported no allowance up to 3 pounds, but that the dockage over this amount is returned to the farmer or bought by the elevator, as the farmer desires. Another concern took all dockage up to 10 per cent, and another one took all dockage unless it was exceedingly heavy, and then the grain was cleaned and an allowance was made.

WEIGHING IN.-After the wagon has been driven on the scale it is weighed and the weight noted by the agent. The weight taken is usually to the nearest 10 pounds. This is done as a means of saving time, and since the error on a single load can not by this method be more than 5 pounds, greater accuracy is regarded as unnecessary. The cover of the unloading pit is then lifted, and if the elevator is equipped with a dump scale the grain is unloaded by elevating the front end of the wagon and allowing the grain to run out of the rear end into the pit. If the scales are of the usual platform style, the end gate of the wagon is removed and the grain is shoveled and swept out of the wagon box into the pit. When the wagon is empty it is again weighed, and the difference between this result and the weight of the loaded wagon gives the gross weight of the grain.

In determining the number of bushels for which the farmer is to be paid, arbitrary weights approximating the weight of the grain per bushel are used for computation purposes-for example, in the

If grain is cleaned the price paid by some elevators is based on the cleaned grain; in other cases on the uncleaned.

Northwest territory 60 pounds in the case of wheat, 32 pounds in the case of oats, etc. The gross weight of the grain divided by the fixed arbitrary gives the number of gross bushels of grain contained in the farmer's load. This result, as previously stated, is then multiplied by the pounds of dockage, as determined by the agent, to obtain the total dockage on the load. This total dockage is then deducted from the gross weight and the result is the total net pounds of grain in the load. To convert pounds to bushels the net weight is again divided by the fixed arbitraries previously used and the result is the number of bushels for which the farmer is paid.10

PAYMENT FOR GRAIN.-The price per bushel having been arrived at, the agent draws a check or draft to the farmer for his grain, provided the transaction is an outright purchase. Local elevator companies usually have accounts with banks in the locality and issue checks. In the case of the line companies the agent usually draws on the line company, most of which have arrangements with the local banks at their various stations for cashing such drafts. When there is no bank at the station, arrangements are made with one or more local merchants.

In some States the laws require that elevators issue for every load delivered by the farmer a memorandum of the quantity of grain delivered. In some cases this law is complied with by the issuance of scale tickets similar to Form 1:

Thus, if the gross weight of the farmer's load were 5,400 pounds and the dockage per bushel 4 pounds and the grain in question was wheat, 5,400 would be divided by 60 to obtain the total bushels in the load, which would be 90; 90 multiplied by the 43 pounds of dockage per bushel gives a total dockage of the load of 405 pounds. Deducting this dockage from the gross weight of the load, 5,400 pounds, gives a total net weight, for the farmer's grain of 4,995 pounds. Converting this again into bushels by dividing by 60 gives 83 bushels and 15 pounds for which the farmer is paid.

Such a ticket is merely a memorandum showing the weights and dockage of each load and is not negotiable. Some companies comply with the law by the issuance of storage tickets instead of scale tickets. Regardless of the requirements of the State laws a number of line companies as a matter of practice issue a storage ticket (Form 2, p. 108) for every load or lot of grain delivered to the elevator, whether the grain thus delivered has been purchased or is merely put in storage by the farmer. If the transaction is an outright sale, the storage ticket is not retained by the farmer, but is indorsed by him and returned to the elevator agent, who thereupon draws a check or draft to the farmer, closing the transaction. This method, however, is not common, and is used apparently only by line companies. Should the farmer lose the check or draft, a duplicate can be had upon application to the elevator company and the filing of a bond.

THE ELEVATING OPERATION. After the grain has been dumped from the farmer's wagon into the unloading pit it must be removed to make room for other incoming loads. The bottom of the unloading pit slopes down into what is known as a "boot." This is a metal container at the lower end of that part of the grain elevating machinery known as the "elevating leg." This leg consists of a series of buckets or scoops attached to an endless chain or belt operating on rollers, one of which is at the top and one at the bottom of the house, the belt or chain running up through the house in an inclosed chamber. This cup or scoop belt turns at its lower end in the boot and the cups scoop up the grain. At the top of the leg the belt is deflected as it passes over the top roller so as to permit the filled cups to empty into a spout. This spout can be directed to any of the various bins. The agent sets this spout for the proper bin, the leg is set in motion, and the grain is elevated and spouted into the bin.

Section 4. The storage function and the sale of grain after storage.

CONDITIONS AFFECTING STORAGE.-Not all the grain grown in a community finds it way to the terminal market or other destination as soon as harvested. Some of it may be held back temporarily awaiting an increase in price, or permanently for use as seed grain at the next planting season.

As a general rule, the farmer withholds sufficient grain from each crop to supply his requirements for seed the following year. There are, of course, exceptions, as when he decides to grow a new grade or variety and, in consequence, markets his entire crop, retaining nothing for seed and later purchasing seed of the new type. In the great proportion of cases, however, the farmer retains at least the quantity of grain needed for planting the coming year. Where this is the case he ordinarily does not employ the local house for storage on account of the expense involved, though he may do so in occasional instances. The quantity of grain stored by a farmer for other than seeding purposes depends in a large degree upon his financial situation. If he is compelled to borrow money to grow or harvest his crops, thus in effect mortgaging them in advance, he is generally compelled to sell his grain as soon as it is harvested. One instance of such a condition is where a general crop failure has occurred the previous year in any section which has left the farmer in such a financial position that he is compelled to sell immediately whatever grain he may harvest in order to pay his debts.