Excerpt from Report of the Industrial Commission on the Distribution of Farm Products, Vol. 6

On the cost of shipping corn to primary markets, the following figures show what proportion of the value in that market goes to the distributer and to the producer. The consumer's price for corn at Chicago J uly 25, 1900, was 39 cents. The combined expenses of distribution between producer and consumer from Hutchinson, Kans. To Chicago were cents. The producer therefore received cents, the distributing expenses amounting to per cent of the consumer's cost, and the producer receiving per cent of that value. Substantially the same result occurs in the shipment from Salina, Kans., to Chicago: that is, the expenses of distribution between farm and primary market are equal to one-third of what the consumer pays for corn in Chicago, and the producer gets the other two-thirds. The result difiers little for three other shipping points in Kansas to Chicago. Of cents, 2 cents go for local charges and the balance for freight and handling to Chicago. Shipments of corn from Illinois points to Chicago show a much lower cost of distribution. From Media, Ill., to Chicago the com bined expenses of distribution ou' J uly 25 were 8 cents per bushel for corn. The value of corn at Chicago was 39 cents, so that the producer received 31 cents, the expenses of distribution amounting to per cent of the consumer's cost, and the producer receives per cent of the consumer's cost. The shipments from Benson, Ill., show a somewhat lower cost of distribution, where the proportion is per cent of the consumer's cost, but the two shipments show that the average expenses of marketing Illinois corn in Chicago would probably not be much higher than 20 per cent of the Chicago value - that is, one-fifth of the cost to the consumer goes for carrying the product and about four-fifths of the value goes to the producer. According to the special report of the corn movement to Chicago that market has undergone a change of great advantage to the producer. Fracti cally all grain that comes to the central market is purchased by the dealers at the local markets. The farmers rarely ship any grain on their own account. All the dealers at these local markets are constantly in touch with the central markets. They receive quotations by wire every day, so that they know the prices of grain in Liverpool, New York, and Chicago. Formerly the majority of these buyers shipped to commission houses located at the central market, but latterly this practice has been largely abandoned. The large grain concerns deal directly with the local dealer, and their familiarity with the rapidly changing rate situa tion enables them to put grain into any one of the great world markets with the greatest economy ih-cost of transportation and handling. This is chiefly owing to the adjustment of freight rates. The difierence between handling by commis sion through Chicago for exports and the through rate on grain is about 3 cents. This difierence is sufficient to give the trade which can command it, as against any one which can not, the mastery of the whole shipping situation.

About the Publisher

Forgotten Books publishes hundreds of thousands of rare and classic books. Find more at www.forgottenbooks.com

This book is a reproduction of an important historical work. Forgotten Books uses state-of-the-art technology to digitally reconstruct the work, preserving the original format whilst repairing imperfections present in the aged copy. In rare cases, an imperfection in the original, such as a blemish or missing page, may be replicated in our edition. We do, however, repair the vast majority of imperfections successfully; any imperfections that remain are intentionally left to preserve the state of such historical works.