weigher, and the weight depends entirely upon the way the grain falls into the bucket and the manner it settles. Very little of it is ever weighed. It is true of the great majority of the markets where this grain is inspected that, theoretically, they take the bucket with them, but practically they leave it in the supply house at the other end." Report of investigation by North Dakota Bankers' Association made November 23, 1906. To Members North Dakota Bankers' Association: Your committee appointed to investigate the subject of grain inspection and grading, as affecting the interests of North Dakota shippers, met according to arrangement at Superior, Wis., on the morning of September 27, and, after a preliminary discussion as to the scope of the investigation, proceeded to visit some of the terminal elevators in order to familiarize themselves with the methods of handling grain as it comes from the shipper. We found that grain is inspected, graded, and the dockage fixed by the state inspector under the rules of the Minnesota grain inspection board. The grain is then ordered into one of the terminal elevators and after being unloaded is elevated to the top of the elevator where it is weighed. During the process of elevating all grain is subjected to a suction draft in order to keep the building free from dust (?). This is an injustice to the shipper as, in our judgment, all grain should be weighed immediately upon being unloaded and nothing should be taken from it before it is weighed. The amount of light grain and dirt taken out under the present method simply depends upon the force of the suction draft. We obtained a statement showing the grain of various grades shipped in and shipped out from one of the larger elevators during a period of three months, the dockage actually taken out, and the profit in mixing the grain so as to raise the low-grade grain to that of higher grades. In our judgment a much smaller dockage is actually taken from the grain than that taken by the country elevator or fixed by the official inspectors. We find that all of the dockage or screenings taken from the grain has an actual value and believe the shipper should receive this value. This matter of dockage is one that could be so easily remedied and the shipper given the benefit of the screenings actually taken from his grain that the wonder is the present unjust custom of not only confiscating the screenings, but in addition compelling the shipper to pay the freight on them to the terminal point, has been allowed to prevail so long. We find that eastern millers want the grain as it comes from the farmer and it is an injustice to the shipper and to the miller to prevent this, as is now done. The shipper must accept the inspection, rules, and customs which have been forced upon him by the powerful combination of elevator and railway interests, and the miller must take the grain that is offered him by the "grain trust," so called, and not in the condition as to mixing, that he wants it. In examining the report above referred to, of grain received and grain shipped out of the terminal elevator we were able to get a report from, we found that during the three months covered, the report showed the following grain received and shipped out: The screenings actually taken out of the grain received averaged three-quarters of a pound to the bushel. From our knowledge of the dockage taken at country elevators and also of that fixed by official inspectors at terminal points during the period named, we believe this dockage of three-quarters of a pound actually taken from the wheat to have been very much less than that taken from the shipper or farmer. These screenings sold for about $8 per ton. After this dockage of three-quarters of a pound per bushel was taken out the grain was shipped out as clean grain without any dockage. What an eloquent story is told by the above figures. The fact that nearly 100,000 bushels more of No. 1 Northern, the highest grade taken in, was shipped out than was received speaks so loud against the present system and rules of inspection that it is simply unnecessary to go on down the line and call your attention to the fact that nothing lower than No. 3 wheat was shipped out. The profit in mixing the receipts of this elevator for the three months, as shown by their report, was $83,720.69. In order to arrive at the probable profits of the terminal elevators there should be added to the above the amount realized from the screenings, the charges for handling the grain, and the proceeds of the sale of wheat and other grain taken from the screenings, for we found that all screenings are carefully cleaned over and all good grain taken out, and that the good grain taken from the screenings is shipped out as screenings in order to avoid inspection and appearing in the amount of grain shipped out of the elevator. We are of the opinion that grain hospitals, either independent or in connection with terminal elevators, should be established, where shippers could have "off grade" grain cleaned or scoured at a reasonable cost before it is offered for sale, the shipper to pay this expense and receive the benefit resulting from such treatment of his grain needing treatment in a hospital elevator. We also favor the amending of existing laws governing the handling of grain by terminal elevators so as to allow no more grain of a given. grade to be shipped out than is taken in. Your committee found much to criticise by visiting the freight yards, in the careless manner in which cars are handled by the railroad companies and the very poor class of grain doors used. The amount of grain lost by leakage from cars and by the careless shunting and switching of cars in the yards is very large. All the foregoing are of course matters of minor importance as compared with the apparent combination of the railroad and elevator interests in forcing all grain received at terminal points to be inspected under Minnesota inspection rules. A competitive market was established under Wisconsin inspection at Superior. The Wisconsin law provides that the grain and warehouse commission shall consist of three members, one from Wisconsin, one from New York, and one from North Dakota. Under this law the shipper in this State has a representative on the board, and the influence of this representative can be of great benefit to our shippers if his duties are conscientiously performed. This board appoints all inspectors and weighers and can see to it that inspection and weighing is honestly and properly done. Our shippers were undoubtedly greatly benefited during the time the Wisconsin inspection was in force, but by the apparent combined efforts of the interests above named this Wisconsin inspection is inoperative and all grain received at the head of the Lakes must be inspected by Minnesota inspectors under Minnesota rules. The story of how the Wisconsin law was made absolutely inoperative is an interesting one. The Duluth Board of Trade made a rule that no member of the Duluth Board of Trade could hold membership in a similar organization within a hundred miles of Duluth. This was done to compel all grain men doing business at the head of the Lakes to confine their business to Duluth. Then all terminal elevators located in Superior suddenly were closed as public elevators and became private elevators operated by individuals holding leases. As private elevators they were able to discriminate in the business offered them, and this discrimination took the form of refusing to receive grain inspected under Wisconsin rules and by Wisconsin inspectors. It does not require anything further to show you how Wisconsin inspection was put " down and out," and why all of our grain must now be graded, inspected, and weighed under Minnesota inspection rules. Your committee attempted to have a hearing with the Duluth Board of Trade and met with some of the officers and members of that board for this purpose. Exceptions were taken by members of the Duluth Board of Trade to the fact that Senator Hudnall, of Superior, Wis., had been invited to be present at this meeting. Senator Hudnall had asked the privilege of speaking at our last association convention on the subject of the grading and inspection of grain, and during the course of his remarks had made statements to which the Duluth Board of Trade had strongly objected. The object of your committee in having him present at the conference with the board of trade was to get at the truth or falsity of the statements made, to which exceptions were taken by the Duluth Board of Trade. Members of the board of trade absolutely refused to proceed with the conference while Senator Hudnall was present, notwithstanding the fact that your committee stated if the conference could not proceed while he was present his statements would have to be accepted as facts by the committee. Objections were also made by members of the board of trade to the stenographer who was present at the request of your committee. Your committee withdrew from the conference for the purpose of considering the objections raised by members of the board of trade. Being present at the invitation of the board and feeling that our request to have Senator Hudnall present long enough to go over the statements made by him at our convention, to which exceptions had been taken by the board, was not unreasonable, and also feeling that an effort was being made to throw such restrictions around the conference as would make it of no value whatever to the committee, it was finally decided that we would withdraw and not attempt to proceed further with the conference at that time. The committee thereupon retired from the conference. Following this attempt at a conference with the Duluth Board of Trade your committee entered into correspondence with a large number of eastern millers. This correspondence was of considerable interest and disclosed the fact that the eastern millers can not obtain grain at Duluth except in the condition it is offered them as to mixing. They want a certain proportion of grain of good grades just as it comes from the shippers, but can obtain it only after it has been mixed and the higher grades reduced in quality. Your committee also asked for an interview with the Great Northern Railway Company officials in order to request that the Great Northern elevator at Superior be reopened as a public elevator and that all opposition to Wisconsin inspection by the railway company be withdrawn. This interview was arranged, and on Tuesday morning, November 13, Senator Cashel, Senator Young, and Mr. Macfadden, of the committee, met with Louis W. Hill, first vice-president, B. Campbell, fourth vice-president, and Mr. Braaten, of the railway company, at the company's office in St. Paul. The railway company contended that it was absolutely impossible for a large elevator to operate under the Wisconsin inspection law owing to the fact that the law made it possible that any shipper or receiver of grain could demand of the elevator company a special bin, and that a small amount of grain stored in special bins would completely tie up the capacity of the elevator. It was also pointed out that shippers could demand both Minnesota and Wisconsin inspection on the same grain, and that while either inspection would be satisfactory to the railway company, traffic was impeded and great annoyance caused where both inspections were demanded. Other objections were raised to the Wisconsin inspection law and the statement made that the Great Northern Railway Company would open its elevator as a public elevator just as soon as these objectionable features could be eliminated from the law. The proposition was also made by the railway company to lease any or all of their elevators at Superior to an organization of independent shippers, to be formed in North Dakota or to include shippers of North Dakota, Minnesota, and South Dakota, on a basis of 4 per cent interest on the investment in the elevator. The lease to be made for one year or longer with the privilege of being canceled by the lessee at any time by giving thirty days' notice to the lessor railway company. This proposition to your committee seems to be the solution of many of the problems of correcting the evils and injustices now in existence in the handling of grain at the head of the Lakes, and your committee will now take up the matter of perfecting an organization to take one or more of the Great Northern terminal elevators with the independent shippers of the State. By an organization of this kind the shipper can retain complete control of his grain. He can obtain the value of all screenings taken from his grain. The eastern miller can obtain grain in just the condition he wants it and a competitive market at the head of the Lakes can be reestablished. Your committee is of the opinion that the reforms outlined will be of material benefit to the grain growers of the State and will be a stepping-stone to a better system of inspection, viz: Federal inspection, which would do away entirely with the many conflicting inspections established in the various States. Respectfully submitted. JOHN L. CASHEL, Committee. Memorials and resolutions of grain growers' associations in favor of national inspection. The Tri-State Grain and Stock Growers' Association passed the following resolution, unanimously, January 19, 1906: Whereas Senator McCumber, of this State, has introduced a bill in the United States Congress to provide for a national inspection and for fixing a uniform standard of classification and grading of wheat, flax, corn, oats, barley, rye, and other grains, and for other purposes; and Whereas the personal experience of the farmers of the Northwest has shown the necessity of a measure of this kind; and Whereas such a law would not only give the producer the grade to which he is entitled, but would make it so that the purchaser could rely on the quality of the grain bought in whatever market it might be obtained: Therefore be it Resolved, That we hereby heartily indorse the principle proposed in this bill and ask Congress to speedily pass the same that we may obtain relief from the injustice which we suffer under the present existing conditions. I certify that the above resolution is correct as passed by the TriState Grain and Stock Growers' Association of Fargo, N. Ďak., January 19, 1906. J. A. JOHNSON, Secretary. [Memorial adopted by antigrain trust meeting, held at Salina, Kans., January 15, 1907.1 FEDERAL INSPECTION OF GRAIN. Too much can not be said and done in favor of a national inspection law. We have no uniform inspection of grain and cotton, the principal farm products which are so largely dealt in and which are of such great importance to both the producer and consumer. A shipper of grain can not send a car of wheat from one point to another with any degree of security at the present time, take all the precaution he S D-60-1-Vol 31- -3 |