The Produce Exchanges 1

grain, receipt, warehouse, system and inspection

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It is, however, clear that the Act has at least the possibilities of surprising changes. It may eventually do away entirely with the system of grading which has grown up in response to the needs of trade, under the supervision of state authorities. That it will have such results seems unlikely. There is great prob ability that the State systems which have been well developed will be changed but little. There is a pos sibility that the State inspectors will receive Federal licenses, and if this takes place, the change will be in name only. It is generally believed that the new Federal system will seek to utilize what is best not only in the principles and methods of the state system but the personnel as well.

13. General methods of inspection and grading.— The method of inspection is much the same in all mar kets. All cargoes of grain that come into Chicago from country points are promptly reported by the railroad companies to the grain inspectors. These men visit the cars and secure samples of grain that fairly represent the grain in each car. Every car so inspected is then sealed by the inspector, and the samples are turned over to the grain merchants to whom the cars were consigned from the local shipping center. The grain merchant displays his samples in the market-place of the exchange building, and the grain is sent to the elevator. A warehouse receipt is issued upon the acceptance of the grain by the ele vator company, and this receipt, together with the sample of grain, becomes the basis for the sale and purchase of that particular amount and grade of grain. When the grain is sold, the warehouse receipt is de livered instead of the actual grain, each new owner in dorsing the receipt when he receives it. If the holder

of the warehouse receipt wishes the grain itself he can obtain it by presenting the receipt to the elevator com pany. Only those firms, however, can issue ware house receipts that have been declared "regular"— that is, only such firms as conform to the Board of Trade rules covering the inspection, handling and storing of the grain. The warehouse receipt thus be comes a very important instrument of trade, and a heavy responsibility rests upon the superintendent of the warehouse, for he has charge of the grain and is expected to keep it from deterioration. The various grades must be kept distinct, altho the identity of any particular lot may be lost.

The object of grading is to separate a commodity into grades according to difference in soundness, color and freedom from impurities. First, there are sea sonal and color variances, which are often one and the same thing. The classification of winter wheat differs from that of spring wheat according to substance, color (white or red) and location (northern or west ern) . Secondly, the appearance, the inherent qual ity of the grain, and its condition—its brightness, plumpness and sweetness, and the soundness of the berry—must be considered.

Thirdly, the question as to whether the grain is free from foreign substances, such as chaff, and from any admixture of other kinds of grain, is also care fully considered by the inspector before the product is assigned to a definite class.

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