^mm^mmmmm k' ■^■, :f >.fl HD 9036 A5 1922b v.l A| Ai OS 01 1 1 a\ 41 9i 3 2 2 U.S. FEDERAL TRADE COAAMISSION REPORT OF THE EDERAL TRADE COMMISSION ON A/ETHODS AND OPERATIONS OF GRAIN EXPORTERS THE LIBRARY OF THE UNIVERSITY OF CALIFORNIA LOS ANGELES REPORT OF THE FEDERAL TRADE COMMISSION ON METHODS AND OPERATIONS OF GRAIN EXPORTERS VOL. I INTERRELATIONS AND PROFITS May 16, 1922 1-3 ms WASHINGTON GOVERNMENT PRINTING OFFICE 1922 REPORT OF THE FEDERAL TRADE COMMISSION ON METHODS AND OPERATIONS OF GRAIN EXPORTERS VOL. I INTERRELATIONS AND PROFITS May 16, 1922 WASHINGTON GOVERNMENT PRINTING OFFICE 1922 FEDERAL TRADE COMMISSION. Nelson B. Gaskill, Chairman. A'^ICTOK aiURDOCK. John F. Nugent. Huston Thompson. J. P. YoDEK, Secretary, ADDITIONAL COPIES OF THIS PUBUCATION MAT BE PROCURED FROM THE SUPERINTENDENT OF DOCUMENTS GOVERNMENT PRINTING OFFICE WASHINGTON, D. C. AT 15 CENTS PER COPY V CONTENTS. Page Acknowledgment XI Letter of submittal XIII Summary XIX Origin and scope XIX Production of principal grains XIX Importance of grain exports XX European governmental control XXI Nature of export business XXII Importance of foreign interests XXIII Control and interrelations XXIII Proportion of export business examined XXIV Rate of profit XXIV Frequency of turnover XXV Margin of profit per bushel XXVI The United States Grain Corporation XXVIII Chapter I.— Okigin and Scope of the Inquiry. Sec. 1. Origin of the inquiry 1 2. Scope of the inquiry 2 3. Sources of information 2 Chapter II. — Production and Exports. Sec. 1. World supply of wheat 3 Production of principal countries 3 Demand for wheat and wheat flour 4 2. World supply of rye 5 Production of principal countries 5 Demand for rye 6 3. World supply of barley 7 Production of principal countries '. 7 Demand for barley 8 4. World supply of oats 9 Production of principal countries 9 Demand for oats 10 5. World supply of corn H Production of principal countries 11 Demand for corn 52 6. Importance of grain exports 13 Importance in foreign trade 13 Exports of principal grains 14 7. Exports from the principal ports 15 8. Proportion of grain exported 17 9. Grades and kinds of wheat exported 17 Export grades 17 Kinds of wheat exported IS Chapter III. — European Government Control. Sec. 1. The Allies' war control 20 The Royal Commission on Wheat Supplies 20 Overseas organization 21 The wheat executive agreement J_ 22 m 3081S75 IV CONTENTS. Page. Sec. 2. Decontrol in Europe 22 United Kingdom 22 France 24 Italy 2r, Belgium 2(5 Korway 27 Spain 27 Rumania 27 Germany 28 Chapter IV.— Export Business and Methods of Foreign Buyers. Sec. 1. General characteristics of the export grain business 29 Grain exporting a complex business ._ 29 Grain transportation and handling 29 Orders and settlement 29 2. American branches of foreign houses HO 3. Operations of United States branches of foreign concerns 31 Supervision of branch ofiices . . .'U Origin of orders 31 Handling orders by United States branch ollices 32 Hedging and futures transactions 34 Terms of purchase .3.5 Steamer space 36 Exchange . .37 Stocks of grain .__ .37 4. Handling grain abroad .38 Facilities for handling .38 Financing foreign buyers .39 Combinations among foreign buyers 39 Chapter V. — Control and Interrelations ob'. Grain Exporters. Sec. 1. Form of organization of the grain exporting company 41 2. Grain exporting companies in order of 1921 volume of exported wheat 41 3. Control and interrelations of the principal grain exporting firms__ 43 Samuel Sanday & Co 43 Louis Dreyfus & Co 43 P. N. Gray .orted from the United States in that year. RATE or PROFIT. Profits are shown both including and excluding gains or losses from transactions in futures. These transactions were generally hedges employed to reduce the business risks, but apparently to some extent they were pureh^ speculative ventures. In the wheat market futures trading, which was suspended during the war, was not re- sumed until July 15, 1920; consequently the results for companies closing their business year June 30, 1920, showed no futures trading in wheat. SUMMARY. XXV The export grain trade is essentially a merchandising business, and a laroc part of the money employed' in it is borrowed. Approxi- mately 50 per cent of the money used in the business by the hrms Avhose books were examined in 1920, and 40 per cent in 1921, con- sisted of loans. The borrowed funds employed in the business con- sisted almost entirely of short-time loans, and the amount of these loans fluctuated greatly from month to month. This method of financing tends to enhance the risk of the merchant, but if his busi- ness is successful it yields much larger profits. Experience, ability, a thorough knowledge of the export grain trade, good connections in importing countries and especially credit are more essential to success than the control of large capital. The rate of profit for exporters and fobbers is shown first, upon the capital stock, surplus, and reserves, which constitute the stock- holders' investment, and second, upon the capital stock, surplus, reserves, and borrowed money, which includes all of the funds em- l^loyed in the business. The earnings which were related to the stockholders' investment were those derived from the grain trade before the deduction of P'ederal taxes or of excessive bonuses, while those which were related to the capital stock, surplus, and borrowed funds used in the grain business included in addition to the above the interest paid on borrowed money. In 1920 the exporters showed a larger average rate of profit than fobbers, while in 1921 the fobbers had a much higher average rate of earnings. The average rate of return for exporters in 1920 on the capital stock and surplus, excluding losses or gains from trans- actions in futures, was almost 53 per cent, and that for fobbers about M per cent. Including the results for futures trading, the profit was almost 58 per cent for exporters and over 38 per cent for fobbers. In the same year, 1920, the average rate of profit on all funds employed in the business, excluding losses and gains on futures, was almost 27 per cent for exporters and approximately 18 per cent for fobbers. Including profits and losses on futures trading, the rate of return was nearly 29 per cent for exporters and practically 20 per cent for fobbers. In 1921 the rate of return on the capital stock, surplus, and re- serves, excluding the results for transactions in futures, was a loss of over 3 per cent for exporters and a profit of almost 31 per cent for fobbers. Including the results from futures trading, the ex- porters showed a profit of about 30 per (cnt and the fobbers slightly more than 38 per cent. The average return on all of the funds em- ployed in the grain business, i. e., capital stock, surplus, and bor- row^ed funds, before the inclusion of gains or losses on futures, was about 3^ per cent for exporters and nearly 23 per cent for fobbers. Including gains or losses in futures, these rates were increased to 1' per centtfor exporters and to a little over 27 per cent for fobbers. FREQUENCY OF TURNOVER. In the business of exporting grain as conducted at the present time in this country there is very little fixed investment in plant; almost all the funds employed being in liquid form and a large proportion generally borrowed. For 2G companies, exporting 134,000,000 bushels of wheat in 1921, or about 39 per cent of the XXVI SUMMARY. total quantity exported, the total funds employed aggregated $51,711,000, of which $25,010,000 was borrowed. These 26 companies had net earnings (before payment of interest or Federal taxes) of $11,479,000, of which $2,500,000 was payable as interest. The export grain merchant stores such grain as he holds in public warehouses and often sells again in a brief interval, and even on the same day. This is shown by the fact that for grain exporting companies whose records Avcre examined the turnover of capital (capital stock, surplus, and reserves) as indicated by sales was 23 times in 1920 and 31 times in 1921, while taking exporters and fobbers combined the turnover in 1920 was 22 times and in 1921 nearly 27 times. Taking individual companies, several instances of companies having a turnover in 1920 or 1921 of more than 100 times a year are included. Although the average per cent of profit on each turnover was small, for exporters 2.5 per cent in 1920 and almost 1 per cent in 1921, the frequency of turnoAer often gave large net profits. MARGIN OF rnOFIT PER BUSHEL. The companies engaged largely in exporting grain, whose profits are shown, sold almost 42,000,000 bushels of wheat in their 1920 business year and over 174,000,000 bushels in 1921. Their aggregate trading profit on cash wheat, i. e., the net profit excluding gains or losses on transacations in futures amounted to almost $3,319,000 in 1920 and to only $423,000 in 1921. There was a loss of a little over $72,000 on the transactions in futures in 1920 and a profit of $4,163,000 in 1921. The transactions in other grains were much smaller than for wheat in both years. The concerns engaged chiefiy in fobbing sold 67,340,000 bushels of wheat in their business year ending m 1920 and 103,600,000 bushels in 1921. The net trading profit on wheat amounted to a gain of $3,593,000 in 1920 and of $4,900,000 in 1921. The profits on futures were comparatively small in both years, in 1920 they were about $50,000 and in 1921 almost $265,000. The quantities of other grains sold were quite small in both years. The marked decline which occurred in wheat prices during the latter part of 1920 and in 1921 is reflected in the average sales realiza- tion of the exporters, which declined from $2.73 to $2.01. In 1920 the range for the averages of individual companies was from a minimum of $2.30 to a maximum of $3.03, while in 1921 it was from $1.38 to $2.61. These wide ranges were chiefly due to the period of the year in which a particular company made the bulk of its sales. The aggregate trading profit per bushel on cash transactions for all export companies, i. e., the profit excluding futures, was quite large on wheat in 1920 and small in 1921. In the former year it was almost 8 cents per bushel and only 0.3 of a cent per bushel in 1921, There was a small average loss on futures in 1920 and an average profit of almost 2^- cents per bushel in 1921. The average profit, iiicluding the profit or loss on futures, was 7.7 cents per bushel on wheat in 1920 and 2.7 cents per bushel in 1921. The companies engaged chiefly in fobbing had on the average a net sales realization of $2.38 per bushel on wheat in 1920 and of $2.14 per bushel in 1921. The average for fobbers in 1921 was higher than that shown for exporters in that 3^ear. This was because a SUMMARY. XXVII larfje proportion of the sales were made while prices were still rela- tively high. The fobl)ers showed substantial net trading; profits on cash wheat in both years. In 1920 the average was 5.3 cents per bushel and in the following year' 4.7 cents. The average profits from transactions in wheat futures were small in both 3'ears; in 1920 this average profit was 5.4 cents per bushel and in 1921 it was 5 cents. The average net sales realization for exporters was $2.05 per bushel for rye in 1920 and $1.90 in the following year. The average net profit per bushel on cash rye, excluding futures, was 2.7 cents in 1920 and onl}^ 0.6 of a cent in 1921, The net gains on futures increased the average profits to a little over 4 cents per bushel in 1920, while there was no change for 1921. The average net sales realization on rye for fobbers averaged 4 cents per bushel higher in 1921 than in 1920. This was due to a very low sales realization for one company handling a large propor- tion of the total quantity sold. The net trading profit on cash rj^e was large, averaging over $0.11 per bushel in 1920 and slighth' more than $0.26 in 1921. There was a slight gain on futures in 1920 and a loss of 1 cent per bushel in 1921. Including futures, the profits averaged $0.12 per bushel in 1920 and a little over $0.25 per bushel in the following year. The exporters showed an average net sales realization of about $1.49 per bushel on cash barley in 1920 and of only $0.86 in 1921. In 1920, excluding futures, there was an average net trading loss of 0.7 of a cent per bushel and a profit of only 0,1 of a cent in 1921. The average gain on futures was exactly the same, 0.9 of a cent per bushel for each year. Including futures, there was an average profit of 0.2 of a cent per bushel in 1920 and of 1 cent per bushel the follow- ing year. The fobbers had a relatively high average sales realization on bar- \ey in both years. In 1920 their average was $1.56 per bushel and in the following year an average of almost $0.95 per bushel. This average, which was higher than for exporters, was due to large sales by one company in each year while prices were still relatively high. There was an average net trading profit, excluding futures, of a little over 3 cents per bushel in 1920 and a loss of almost 10 cents per bushel in 1921. The average was not materially changed when the losses and gains from futures were included. The average net sales realization of exporters on oats was about $0.90 per bushel in 1920 and almost $0.69 cents in 1921. There was an average net loss of 2.8 cents per bushel in 1920, excluding futures, and a profit of only 0.7 of a cent per bushel in 1921. The average profit on futures was 0.5 of a cent per bushel in 1920 and 2.1 cents per bushel the following year. The inclusion of futures reduced the average net loss to 2.3 cents per bushel in the former year and in- creased the profit to 2.8 cents per bushel in 1921. The fobbers showed an average net sales realization of $0,87 per bushel for oats in 1920 and of $0.57 per bushel in 1921. The average cost of sales exceeded the net sales realization in both years, conse- quently there was a net trading loss on cash transactions, which averaged 1.7 cents per bushel in 1920 and 3.5 cents per bushel in the following year. There were substantial profits from trading in XXVIII SUMMAltY. futures for both years, averaging 2.7 cents per bushel in 1920 and 2 cents per bushel the next year. This gave an average net profit of 1 cent per busliel on oats as the final result for 1920 and reduced the loss to 1.5 cents per bushel the following year. There was a large decrease in tlie average net sales realization oj\ corn for exporters from 1920 to 1921. In the former year the aver- age was $1.86 per bushel, which declined to $0.80 per bushel in 1921. For individual companies during the two-year period the maximum average net sales realization was $2,11 per bushel in 1920 and the minimum $0.69 in 1921. The average net trading profit, excluding futures, was 1.2 cents per bushel in 1920 and there was a loss of 1.3 cents per bushel in 1921. There was an average loss of 2.6 cents per bushel on futures in 1920 and a profit of 1.4 cents per bushel in 1921, giving as a final result a net loss of 1.4 cents per bushel in 1920 and a gain of 0.1 of a cent in 1921. The average cost of sales exceeded the average net sales realization for fobbers on corn in both years. The average sales realization de- clined from $1.50 per bushel in 1920 to $0.82 in 1921, while the net trading loss on cash corn was almost 5 cents per bushel in the former year and 1.3 cents in 1921. There was a substantial profit on futures, averaging almost 2 cents per bushel for each year. As a final result there was an average net loss of 2.8 cents per bushel in 1920 and an average profit of 0.6 of a cent per bushel in 1921. THE UNITED STATES GRAIN CORPORATION. The Senate resolution directing this inquiry instructed the com- mission to begin " with the harvest of the 1919 crop.'" That crop was controlled by the United States Wheat Director, and the wheat exports were largely handled by the United States Grain Corpora- tion. The price guaranteed to the producer for the 1919 crop was the same as that for the crop of the preceding year. The price of No. 1 northern spring wheat and its equivalent at the principal ports w^as $2.20 per bushel on the Pacific coast, $2.30 on the Gulf, and for the Atlantic seaboard it ranged from $2.38| at Baltimore to $2.39^ at New York. During the fiscal year ending June 30, 1920, the United States Grain Corporation was financed by the Government by a special ap- propriation of $1,000,000,000 in addition to its capital stock of $150,- 000,000, which had been previously appropriated by Congress. During the fiscal j^ear ending June 30, 1919, the Grain Corporation sold for export almost 174,000,000 bushels of wheat, for which it re- ceived about $423,000,000. The following fiscal year a little over 94,000,000 bushels were fobbed, for whicli almost $226,000,000 were received. In July, August, and September, 1920, about 3,600,000 bushels Avere sold for export for nearly $10,300,000. The quantity of other grains sold was comparatively small. Although the United States Grain Corporation was not organized for profit, it added a small per cent to the cost of sales to cover ex- penses, which, from the large volume of business transacted, to- gether with income from other sources, gave a net profit at the end of February, 1921, amounting to approximatelj^ $51,000,000. The rate of profit on the total funds used in the business was about 10.5 SUMMARY. XXIX per cent in the fiscal year ending June 30, 1919, and not quite 2 per cent the following year. The net earnings from the entire period, September 1, 1917- February 28, 1921, on the principal grains amounted to $28,787,000, of Avhich about $14,645,000 was on wheat, $12,070,000 on flour, $780,- 000 on barley, and $1,292,000 on rye. The margin of profit on all wheat handled (including Australian wheat imported for sale on the Pacific coast) was a little over 4 cents per bushel prior to June 30, 1919, while it was 2.6 cents per bushel on the business transacted after June 30, 1919. The margin of profit on rye was 4 cents per bushel prior to June 30, 1919, and almost 23 cents per bushel from July 1, 1919, to the close of business. The large margin on r^^e in the latter period was due to a marked increase in the price between date of purchase and date of sale. The margin on barley was 6.6 cents per bushel in the earlier period and about 3 cents per bushel after July 1, 1919. METHODS AND OPERATIONS OF GRAIN EXPORTERS/ Chapter I. ORIGIN AND SCOPE OF THE INQUIRY. Section 1. Origin of the inquiry. This inquiry was made pursuant to the direction of Senate Kesohition 133, Sixty-seventh Congress, second session, adopted De- cember 22, 1921, -which reads as follows : Whereas the condition of the export market has been alleged as one of the reasons for the decline in the domestic prices of grain since the summer of 1920 ; and Whereas there nevertheless has been during the past year a record volume of exports of grain from the United States and at prices showing a wide margin over the price at the farm ; and Whereas a wide spread of 15 to 20 cents between cash wheat and futures throughout the marketing season of 1920-21 existed and was caused either by the unprecedented export demand or heavy pressure on futures, or both ; and Whereas the organization of the expoi't trade and all the conditions connected with the export of grain by American exporters and the purchase thereof by foreign Iniyers are of vital interest to American farmers and consumers : There- fore be it i Resolved, That the Federal Trade Commission be, and hereby is, authorized and directed to immediately investigate, beginning with the harvest of the 1919 grain crop, the margins V?^tween farm and export prices; the freight and other costs of handling; the profits or losses of the principal exporting firms and cor- porations and their subsidiary or allied companies and firms : all the facts con- cerning market manipulations, if any, in connection with large export transac- tions, or otherwise ; the organization, ownership, control, interrelationship, foreign sub.sidiaries, agencies, or connections of the concerns eugaged in the e:4i)ort of graiii. including the extent of their control of the facilities used bv them ; the organization, methods of operation, and agencies used by foreign buyers of grain in this country ; and other data affecting the demand for, and foreign disposition, movement, and use of American exported grain ; and report its findings and recommendations thereon as promptly as the various phases of the work are concluded. For the purpose of this investigation it is requested that the United States Grain Corporation, the Department of Agriculture, and other Government departments, and the United States Food Administration make available all the pertinent records from these several departments and organizations for the use of the commission. The language of the above resolution is very comprehensive and includes all phases of the export grain business as well as certain aspects of the domestic grain business. The demand for the inquiry was the result of an unprecedented decline in the prices of the principal agricultural products at a time when the quantity of ex- ports of certain products, particularly wheat, was unusually large. 1 Subsequent to the presentation of this report to Congress in manuscript, a few minor changes in text and figures were made in the copy submitted to the printer. 2 METHODS AND OPERATIONS OF EXPORTERS. Section 2. Scope of inquiry. In order that the facts concernin<^ the more important phases of the export grain business might be made available to the Senate and to the public at the earliest possible date, the commission divided the inquiry into several parts, and, in response to the direction of the Senate, as expressed in the resolution directing this inquiry, the com- mission is reporting in this volume the facts covering the costs, margins, and profits of exporting firms and corporations, including their subsidiary and affiliated concerns, the organization, ownership, control, and interrelationships of concerns directly or indirectly con- nected with the export grain trade, and such information as was ob- tainable in this country concerning the agencies used by foreign buyers of grain in the United States. Information regarding the margin between the farm and export prices, the ownership and con- trol of facilities used bj^ companies and firms connected Avith the ex- port grain business; conditions of competition and other pertinent data " affecting the demand for, and foreign disposition, movement, and use of American exported grain " will be presented in a later volume. Section 3. Sources of information. The information presented in this report concerning the costs, margins, and profits of exporters was obtained directly from the books of the companies by examiners of the commission. As a rule, officials of the companies readily granted access to the necessary books and records and greatly facilitated the work by their prompt cooperation. The data covering the organization, ownership, con- trol, and interrelations of concerns connected with the export grain trade was secured by reports made in prescribed form by the com- panies and firms engaged in the various phases of the trade. The situation with respect to the organization, methods of operation, and agencies used by foreign buyers of grain in this country was ob- tained from the above-mentioned reports, from interviews with rep- resentatives of foreign houses and well-informed American exporters and other persons conversant with the conditions, from an exami- nation of the correspondence files of the above-mentioned concerns, and from official documents of various countries. The facts regarding the United States Grain Corporation and its predecessor, the Food Administration Grain Corporation, were either furnished by officials of the former organization or were se- cured directly from their records by examiners of the commission. Valuable general information was secured from the United States Departments of Agriculture, Commerce, State, and Treasury, and from the Joint Commission of Agricultural Inquiry. CHAPTKr IT. PRODUCTION AND EXPORTS. Section 1. World supply of wheat. Production or prtxcipai. cot xtrtes.— An imclerstanclin£r of chanires in wheat pricos requires consideration of tlie economic fac- tors which enter into the statistical position of the wheat trade. In tliis connection it is important first to frive attention to the matter of supply. Fluctuations in the quantity of wrain produced in dif- ferent parts of the world greatly influence the export movements and prices. The size of the wheat crops produced in the different wheat-pro- ducing countries is of particular interest on account of the fact that wheat is irroAvn in larcre quantities in so many countries. In 1921. for example, the world crop is estimated at 2,900.148.000 bushels. This quantity was produced in 33 different countries. It is difficult to secure accurate statistics of the Avorld wheat crop promptly be- cause, on account of difference in climatic conditions, wheat is har- vested in every month of the year in some one of the important wheat-producing countries. In the United States the wheat harvest begins in May in Florida and southern Texas and ends in August in North and South Dakota. The most accurate estimates of the Avorld's production published in this country are those of the T^'nited States Department of Agri- culture. The following table shows the world's production of wheat and the quantity and pro])ortion produced in the Ignited States nnd Canada, as renorted bv the United States Department of Agricul- ture for the period 1910-1921 : Table 1. — EHtimntcd rcorlrVs production of u-Jicat. and the rjiinntity nnd propor- tion produced Tyy the United States and Canada, 1910-1921} [In thousands of bushels.) Production. Percentage of total. Year. World.2 United States. Canada. United States. Canada. 1910 3, 575, 055 3, 551, 795 3,791,951 4, 127, 437 3,.5&5,916 4,127,685 3,701,333 2, 007, 886 2, 500, 639 2,742,639 2, 867, 864 2, 990, 148 6.35, 121 621,338 730, 267 763. 380 891,017 1,02.5,801 6.36.318 6;{6, 6.55 921,438 968, 279 8.3.3, 027 791,893 132.019 2:30, 924 224, 1.59 231, 717 161,280 393,543 262, 781 233, 743 189,075 193, 260 263, 189 300,8.58 17.8 17.5 19.3 18. 5 24.9 2J.9 17.2 31.7 36. 9 35. 3 29. 20.6 3.7 191 1 6.5 1912 .5.9 1913. ... .5.6 1914 4.5 1915 9.5 1916 7. 1 1917 11.6 1918 7.6 1919 7.1 1920 9.2 1921 . . 10.0 ' U. R. Dcnartment of .\^riculture Yearbooks, 1912-1920, and Crop Reporter, Jan. 28, 1922. ' Statistics incomplete since 1916. 106205°— 22— 3 4 METHODS AND OPEPvATIONS OF EXPORTERS. Tlie above table shoAvs that during the period 1910 to 1921 the world i:»roduction fluctuated from a minimum of 2,007,880,000 bush- els in 1917 to a maximum of 4,127,685,000 bushels in 1915; while the maximum production in both the United States and Canada oc- curred in this same year, the minimum was in 1911 for the United States and in 1910 "for Canada. The 1913 world production was nlmost equal to the 1915 maximum, being 4,127,437,000 bushels. In the United States 1919 was the year of next highest production, when the total was 968,279,000 bushels. The world's production has been gradually increasing each year since 1917, the year of minimimi production, until it reached 2,990,- 148,000 bushels in 1921. This total production, however, was still much below the average of 3,726,431,000 bushels per year for the five-year period 1910-1914. The smaller world total since 1916 Avas due to the absence of Russian statistics and to a decline in the pro- duction for other European countries. During the 12-year period, 1910-1921, the United States main- tained the leading position as a wheat-raising country. Its propor- tion of the total crop ranged from about 17^ to practically 25 per cent from 1910 to 1915, and to almost 37 per cent in 1918 when Rus- sian statistics were not available. For the entire period its produc- tion averaged 788.000,000 bushels per year, or 23.9 per cent of the aggregate quantity of wdieat harvested for which statistics are avail- able. In the same period the Canadian production increased from less than 4 per cent of the world total in 1910 to over 11 per cent in 1917. Beginning with 1917 the United States and Canada combined produced from about 37 per cent to over 44 per cent of the world total, excluding fiussia. Appendix Table 1 shows the estimated pro- duction by principal countries for the period 1910-1921. Demand for wheat and wheat flour. — All of the large wheat- producing countries, after supplying their domestic demands, have a surplus available for export to supply the demands of consumers in countries producing either no wheat at all or less than their domestic demands. For the last 12 years the principal wdieat-pro- ducing countries have exported from one-half to three-quarters of a billion bushels of wheat annually. The foreign demand for this wheat is reflected in the imports of countries importing wheat and flour. TJie principal countries importing wheat and flour are the United Kingdom, France, Italy, and the Netherlands. The following table shows the quantity of wheat and flour imported by each of these countries and by all other countries and the per cent each bears to the total imports by all countries for the 10 years 1910-1919 : PRODUCTION AND EXPORTS. Table 2. — Quantity of wheat and the wheat equivalent of wheat flour imported by the principal importing countries, 1910-1919.^ [In thousands of bushels.] Year. United Kingdom. France. Italy. Quantity. Per cent. Quantity Per cent. Quantity. Per cent. 1910 221.232 207,919 229, 160 22G, 938 218.025 191,054 211,830 206,255 175, 460 178, 543 33 29 33 29 41 37 38 42 34 35 23,960 79, 695 26,698 57, 669 65, 598 76,776 106,448 87, 517 72,627 86,630 3 11 4 7 12 15 19 18 14 17 45,322 43,383 6.5,914 66,6,35 37,399 83,159 74,088 77, 249 78,671 95, 503 7 1911 6 1912 . . . 10 1913 9 1914 7 1915 16 1916 13 1917 16 1918 15 1919 18 206,643 34 68,362 12 66,732 11 Year. Netherlands. Other countries. Total. Quantity. Per cent. Quantity. Per cent. Quantity. Per cent. 1910 80,946 68, 657 75,018 89, 534 57, 951 28,766 30,242 12,575 2,245 18,259 12 10 11 12 11 5 5 3 1 4 302,535 321, 343 295,685 334,460 156, 645 140,366 137,686 105,029 188, 959 134, 552 45 44 42 43 29 27 25- 21 36 26 673,995 720, 997 692, 475 775,236 535, 618 520, 131 560, 292 488,625 517,962 513, 487 100 1911 100 1912 100 1913 100 1914 100 1915 100 1016 100 1917 100 1918 100 1919 100 Average importation 46,419 8 211,726 35 599,882 > U. S. Department of Agriculture Yearbooks, 1912-1920. The United Kingdom is by far the largest importer of wheat and flour, and furnished a market during tlie 10-year period for from 30 to 40 per cent of all the wheat and flour sold outside of the country in which produced. The largest imports were recorded for 1013, when the total was 775.236,000 bushels, of which the United Kingdom took 226,938,000 bushels, or 29 per cent. The smallest annual total Avas shown for 1917, when the total imports of all countries were only 488,625,000 bushels, of which the United Kingdom took 206,255,000 bushels, or 42 per cent. The average annual imports for the 10-ycar period Avere nearly 600,000,000 bushels, of which 206,- 643,000 bushels, or 34 per cent, went to the United Kingdom. Three other European countries importing wheat and flour in considerable quantities were France, Italy, and the Netherlands. These three coun- tries imported from 22 to 39 per cent of the total imports of wheat^^and flour for all countries during the 10-year period. Their annual average for the period was 31 per cent. Combining the four Euro- pean countries in the above table shows that they imported from 55 to 79 per cent of the total imports, while their average for the period was 65 per cent. Section 2. World supply of rye. Production of principal countries. — Rye is used largely for bread-making purposes in several countries of the world, particu- 6 METHODS AND OPERATIONS OF EXPORTERS. larly in Kuropc. It is normally ])ro(liic('d throughout the world in somewhat larger quantities than barley. Quantity production of rye is not nearly so widespread as is that of wheat and barley. Normally about 70 per cent of the world's total rye crop is produced in European Kussia and the territory comprised in old (jrermany. No reliable estimate of Russian production has been available since 191G. (jerman estimates are lacking for 1917 and 1918, and that country's production for the years 1919-1921 has been only about one-half of normal. The following table gi^'es the best available estimates of the w^orld's production of rye, together with the quantity and proportion pro- duced by the United States for the 12-year period 1910-1921. Table 3.— Estimated world's production of rye and the quantity and proportion produced by the United States, 1910-1921} [In thousands of bushels.) Year. World. United States. Quantity. Per cent. 1910 1,673,473 1,753,933 1,886,517 1,880,387 1, 596, 882 1,577,490 34, 897 33,119 35, 664 41,381 42, 779 54, 050 2.1 1.9 1.9 2.2 2.7 3.4 1911 1912 1913 1914 1915 Year. 1916 1917 1918 1919 1920 1921 World.2 1, 432, 786 459, 356 562,536 3638, 745 8 596,845 '771,779 United States. Quantity. Per cent 48, 862 62,933 91,041 75,4N3 60, 490 57,918 3.4 13.7 16.2 11.8 10.1 7.5 1 U. S. Department of Agriculture Yearbooks, 1912-1920, and Crop Reporter, Mar. 18, 1922. 2 Statistics incomplete since 1916. '25 countries. '22 countries. The above table shows that from 1910 to 1916 the w'orld's j^earlj production of rye has been comparatively uniform, ranging from about 1,433,000,000 bushels in 1916 to approximately 1,886,000.000 bushels in 1912. With figures missing from Russia and Germany in 1917 and 1918, the world's reported rye production estimates dropped to 459,000,000 bushels and 563,000,000 bushels, respectively, for these years. (See Appendix Table 2.) For the 12-year period 1910-1921 the rj^e production in the United States has ranged from a minimum of about 33,000,000 bushels in 1911 to a maximum of over 91,000,000 bushels in 1918. The propor- tion of the world's crop of vye produced by the United States in normal times has been comparatively small, ranging from not (juite 2 per cent in 1911 and 1912 to less than 3^ per cent in 1915 and 1916. For the three-year period 1919-1921 the proportion produced by the United States Avas considerably more than normal, it being about 10 per cent of the reported world's crop. The United States is shown as producing a still larger proportion for the years 1917 and 1918. This is largely because estimates are lacking from the two countries that usually produce about 70 per cent of the crop. Demand for rye. — The demand for rye is largely confined to the countries in which it is grown, very little of it entering into the export trade. Prior to 1914 Germany was the largest exporter of PRODUCTIOlSr AND EXPORTS. 7 rye. Xext in importance were Russia and the Xetlierlands. These tiiiee countries combined exported 92 per cent of the total rye ex- ports by all countries from 1911 to 1913. Since 1913 export statis- tics for Germany are not available and the Netherlands exports have dropped to a negligible quantity. Russian exports dropped from an average annual export for the three years 1911-1913 of 34,921,000 bushels to 12.315,000 bushels in 1916, since when statistics are not available. Prior to 1914 the exports of rye from the United States were negligible. Since that date thev have increased from 8,158,000 bushels in 1914 to more than 40,000,000 bushels in 1919. Since 1917 the United States has supplied the bulk of the foreign import de- mand for rye. The foreign demand for r^^e as reflected in the imports for all countries is principally in Finland, Norway, Sweden, Denmark, and the United Kingdom. The following table shows the imports by countries for the years 1911 to 1918 : Table 4. — (juantity of rye imported by the principal importing countries, 1911-1918.' Iln thousands of bushels.] Year. United Kingdom. 1911 1912 191.3 1914 1915 1916 1 1917 1918 2,343 1,965 2,276 2,073 1,4.36 2,054 5, 353 5,300 Norway. 11,305 9, 168 11,088 8,128 7,885 7,329 5,095 3,095 Sweden. 2,153 4,708 4,446 2,586 1,986 1,168 461 138 Nether- lands. 33,083 27,714 32,273 17, 539 2,232 1,156 356 751 Finland. 17,730 12,873 15,813 9,898 13,425 12, 639 Denmark. 7,746 8,170 9,846 5,701 2,757 2,3.50 443 41 Other countries. 44,094 28, -375 38, 825 8,085 134 86 1,762 5,605 Total. 118,454 92,973 114,567 54,010 29,855 26,782 13,470 14,930 lU. S. Department of Agriculture Yearbooks, 1912-1920. Prior to 1917 Finland was the largest importer of rye excepting the Netherlands, whose imports were Jargely for reexport. Since 1916 statistics showing Finland's imports are not available, while the Netherlands imports have dropped perceptibly. The imports of the United Kingdom, while comparatively small, are becoming more im- portant. Thev fluctuated from about 1,436,000 bushels in 1915 to 5,350,000 bushels in 1917. Section 3. World supply of barley. Productiqx of principal countries. — Barley is about as widely grown as wheat, but the quantity produced throughout the world, broadly speaking, is only a little over one-third that of wheat. In the United States the barley crop averages about one-fourth as much as the wheat crop. It must be remembered that the world production estimates are not absolutely comparable, since the number of coun- tries reported varies somewhat from year to year. Normally from 33 to 36 countries are reported. In the war years 1917 and 1918 estimates were not available from several of the war countries. That probably accounts for a large part of the decline in world estimates for those years, although world production must have been actually less at that period because in some of the nonreporting war coun- tries production certainly was much below normal. 8 METHODS AND OPERATIONS OF EXPORTERS. The following table gives the best available estimates of the world's production of barley, together with the quantity and pro- jDortion produced by the United States, for the 12-year period 1910-1921 : Table 5. — Estimated world's production of "barley and the quantity and pro- portion produced hy the United States, 1910-11)21.^ |In thousands of bushels.] World. United States. Year. World. United States. Quantity. Percent. Quantity. Per cent. 1910 1,388,734 1,373,286 1,466,977 1, 650. 265 1,463,289 1, 522, 732 173, 832 160, 240 223, 824 178, 189 194,953 228, 851 12.5 11.7 15.3 10.8 13.3 15.0 19)6 1, .529, 031 931,313 1,069,944 2 972, 937 3 1,145,476 2 968, 914 182,309 211,759 256, 225 147, 608 189, 332 151, 181 11.9 1911 1917 22.7 1912 1918 23.9 1913 1919 15.2 1914 1920 16.5 191o 1921 . 15.6 1 U. S. Department of Agriculture Yearbooks, 1912-1920, and Crop Reporter, Mar. 18, 1922. 233 countries. '36 countries. The above table shows that from 1910 to 1916, as was the case with rye, the world's yearly production of barley was comparatively uniform, ranging from about 1,373,000,000 bushels in 1911 to about 1,650,000,000 bushels in 1913. The reported production for the years 1917 to 1921 was about two-thirds the normal average. This reduc- tion was caused by war conditions which reduced production and pre- cluded the securing of accurate crop estimates from some countries. (See Appendix Table 3.) For the 12-year period 1910-1921 the barley production in the United States ranged from a minimum in 1919 of about 148.000,000 bushels to a maximum of over 256,000,000 bushels in 1918. Leaving out of consideration the two particularly abnormal years of 1917 and 1918, the yearly proportion of the world's total crop of barley pro- duced by the United States throughout the perioct has been com- paratively uniform, ranging from 10.8 per cent in 1913 to 16.5 per cent in 1920. For the abnormal years of 1917 and 1918 the proportion of the reported world's total produced by the United States was over 20 per cent for each year. Demand for barley. — Most countries producing barley have a small surplus above their home demand for export. The principal countries exporting barley prior to 1914 were Austria-Hungary, India, Nether- lands, Rumania, and Russia. No statistics are available for Austria- Hungary since 1913 nor for Rumania since 1914, while Russian exports dropped from 168,000,000 bushels average for the three years 1911-1913 to less than half a million bushels in 1916, since when no statistics from Russia are available. The principal countries de- manding barley prior to 1914 were Germanj^ Belgium, France, the United Kingdom, and Netherlands for reexport. Germany was by far the largest importer, prior to 1913, but since that date no statistics are available. The following table shows the imports for the prin- cipal importing countries for which statistics are available for 1911 to 1918, inclusive; PRODUCTION AND EXPORTS. V Table 6. — Quantity of barley imported by the principal iviporting countries, 1911-lOlS.' [In thousands of bushels.] Year. United Kingdom. France. Italy. Nether- lands. Other coun- tries.2 Total. 1911 50, 748 45, 970 52, 464 36,547 27,976 36,957 21,462 11,725 9,653 6, 3<4 5, 428 4,9.38 4,374 10, 442 9,440 11.022 840 878 728 1,050 633 513 1,530 7,604 44,937 34, 030 44, 585 23,994 6,569 5,846 2,360 136 211,220 178,919 189, 502 16, 182 13, 824 9,790 7,904 3,518 323, 398 1912 266, 181 1913 292, 767 1914. 82,711 53,376 1915 1916 63, 548 1917 42,696 1918 34,005 1 U. S. Department of Agriculture Yearbooks, 1912-1920. Statistics incomplete since 191C. Excepting Germany, whose statistics are not available since 1913, the United Kingdom was the largest importer of barle3\ Netherlands was also a large importer, principally for reexports either in the grain or as barley malt, prior to 191G, since when its imports have declined rapidly. France and Italy are becoming more important importers of barley. Section 4. World supply of oats. Production of principal countries. — Tlie production of oats in the 29 comitries for which statistics are available for the year 1921 was approximately 2,898,841,000 bushels. The quantity harvested by the same countries in 1920 aggregated 3,497,967.000 bushels, which was equivalent to 99 per cent of the world crop for that year. In 1919 there were 28 of these same countries that produced 2.811,264,000 bushels of oats, which was equivalent to 98 per cent of the world crop in 1919. In the five pre-Avar years, 1909-1913, the oat crop for 27 of the 29 countries reporting in 1920 and 1921 averaged 3,309,- 025,000 bushels. This was 76 per cent of the world crop for that period. The following table shows the world's production of oats and the quantity and proportion produced in the United States for the period 1910-1921 : Table 7. — Estimated world's production of oats and tlie quantity and pro- portion produced by the United States, 1910-1921^ [In thousands of bushels.] Year. World. United States. Year. World. United States. Quantity. Per cent. Quantity. Per cent. 1910 4, 182, 410 3, SOS, 561 4,617,394 4, 697, 437 4,034,857 4, 362, 713 1, 186, 341 922, 298 1,418,337 1,121,768 1,141,060 1, 549, 030 24.8 24.2 30.7 23.9 28. 3 35.5 1916 4,138,050 2, 987, 945 3,115,452 2, 853, 897 3,536,880 2,898,841 1, 251 , 837 1, 592, 740 1,5.38,124 1,184,030 1, 496, 281 1,060,737 30.3 1911 1917 53.3 1912 1918 49.4 1913 1919 41.3 1914 1920 42.3 1915 1921 36.6 " U. S. Department of Agriculture Yearbooks, 1912-1920, and Crop Reporter, Apr. 16, 1922. The world production of oats fluctuated during the period 1910 to 1921 from 2,863,897,000 bushels in 1919, the lowest year's produe- JO METHODS AND OPERATIOlSrS OF EXPOKTKRS. tion shown in the table, to 4,097,000,000 bushels in 1918, the highest year. (See Appendix Table 4.) Throughout the period the United States was by far the leading country of the world in the production of oats. In the twelve years ending 1921 the oat crops of the United States ranged from 922,- 000,000 bushels in 1911 to 1,593,000,000 bushels in 1917, while its share in the world crops varied from about 24 per cent in 1911 and 1913, to more than 53 j>er cent in 1917. It will be noted that while there was a substantial decrease in the world crop subsequent to 1916, in this same i^eriod the proportion produced by the United States was considerably in excess of all other years, its share in the crop in the last five years averaging about 44.6 per cent as com- pared with 34.2 per cent for the entire period. Germany, Canada, France, and the United Kingdom come next in order among the five principal oat-producing countries. The average annual pro- duction for the 12-year period was 3,770,369,000 bushels, of which the United States produced 1,288,548,000 bushels, or 34 per cent. Demand for oats. — Prior to 1914 the principal countries growing a surplus of oats for export were Argentina, Canada, Russia, and the United States. The average annual exports for all countries for the three-year pre-w^ar period 1911-1913 was 234,427,000 bushels, of which Argentina exported 52,754,000 bushels, Canada 16,583,000 bushels, Russia 65,279,000 bushels, and the United States 12,592,000 bushels. Of the remainder, Germany exported 30,844,000 bushels and the Netherlands 33.814,000 bushels, but the exports from these two countries were largely reexports. In 1914 Russian exports dropped to 14,441,000 bushels and since that date no statistics are available. Since 1914 Argentina, Canada, and the United States have been the principal exporters of oats. The principal countries in which there is a demand for export oats as reflected in statistics of imports are France, Italy, Switzer- land, and the United Kingdom. Prior to the war both Germany and the Netherlands were considerable importers of oats, principally for reexport. The following table shows the imports for the principal countries importing oats and oatmeal for the period 1911-1918: Table 8. — Quantity of oats imported bij the principal importing countries, 1911-1918.^ [In thousands of bushels.] Year. United Kingdom. France. Nether- lands. Switzer- land. Italy. Other countries. Total. ion 04, 870 04, 924 64, 470 52, 905 59, 165 48,986 58, 014 55,595 37,316 14,929 39,992 35, 473 56,610 72,324 42, 819 33,353 35,689 51, 304 38,711 20,006 4,332 4,902 2,712 1 12,586 12,661 12,205 10, 235 6,913 7,320 3,372 2, 142 8,960 10, 8;30 7,331 4, .-49 27, 047 38,308 19, S02 19, 258 77, 169 78,330 75,863 28, 254 13, 056 4,841 5,9S7 7,741 236 590 1912 232' 978 1913 238,572 151 422 1914 1915 . 167,723 176 681 1916 1917 132 706 1918 118' 090 1 U. S. Department of Agriculture Yearbooks, 1912-1920. The United Kingdom was the largest importer of oats every year excepting 1916, when France took the lead. France was the second PRODUCTION AXD EXPORTS, 11 largest importer for all other years except 1912, when it was third. The Xetherlands was an important importer of oats prior to 1915, but the Xetherlands' imports were largely reexported. Switzerland furnished a steady market for about 1'2,000,000 bushels of oats prior to 1914 since when its imports have declined rapidly. Italy's de- mands, which were eight to ten million bushels per year iwioT to the war. had increased to over 38,000,000 bushels per year in 1916, but de- clined to a little over 19,000.000 bushels in 1918. Section 5. World supply of corn. Productiox of principal countries. — The production of corn in the 19 countries for which statistics are available for the year 1921 is placed at 3,701,557,000 bushels. The quantity harvested by the same countries in 1920 aggregated 3.870,155,000 bushels. This was equivalent to 93.6 per cent of the total world crop for that year. In 1919 there were 18 of these same countries that produced 3,429,815,000 bushels of corn, which was 94 per cent of the world crop, and in the five pre-war years 1909-1913 the corn crop for 15 of the 19 countries averaged 3,397.894.000 bushels, or 87.6 per cent of the world total for that period. The principal corn-producing countries Avere the United States. Canada, Argentina. Austria-Hungary, Italy, Yugo- slavia, and Rumania. The following table shows the latest avail- able statistics on the production of corn for the world and the quantity and proportion produced in the United States for the years 1910-1921: Table 9. — Estimated worWs production of corn and the quantity and propor- tion produced by the United States, 1910-1921} [In thousands of bushels.] Year. World. United States. Year. World. United States. Quantity. Per cent. Quantity. Per cent. 1910 4,031,630 2, 886, 260 2,531,488 3, 124, 746 2,446,988 2, 672, 804 2,994,793 71.6 72.7 71.5 68.2 70.7 71.3 1916. . . . 3,642 103 2,566,927 3, 065, 233 2,502,665 2,811,302 3, 208, 584 3,080,372 70.5 1911 1912 1913 3,481,007 4,371,888 3, 587, 429 3,777,913 4, 201, 589 1917 1918 1919 1920 1921 3, 512, 823 3, 129, 433 2 3,649,815 2 4, 135, 597 3 3, 701, 557 87.3 80.0 77.0 1914 1915 77.6 83.2 > U. S. Department of Agriculture Yearbooks, 1912-1920, and Crop Reporter, Jan. 28, 1922. » 19 countries. '24 countries. The United States maintained the position it has always held as the leading country of the world in the production of corn. In the 12 years covered by the table its crops ranged from about 2,447,000,- 000 bushels in 1913 to nearly 3.209.000,000 bushels in 1920, while its proportion of the world crop ranged from 68.2 per cent in 1913 to 87.3 per cent in 1917. It will be noted also that the crops for this country in the last two years were among the largest in the period and considerably in excess of the average for the 12 years. The total world production of corn exceeded 4,000,000.000 bushels in four different years of the 12-year period 1910-1921. The maximum pro- duction was reached in 1912, when it was nearly 4,372,000,000 bushels. 12 METHODS AND OPERATTONR OF EXPORTERS. Tho minimum production was in 1918, wlien it was about 3,129,000,- 000 busliels. Appendix Table 5 shows the world production of corn, by princi- pal producing countries, and other countries combined, by calendar years 1910-1921. According to this table, Argentina was second in importance as a corn-producing country and, excepting in 1911 and 1917, its crops ranged above 1G0.000,0()0 bushels. The largest crop harvested was in 1915, when the production of 338,000,000 bushels gave this country its highest proportion of the world's crop. Italy comes third among the corn-producing countries for which statistics for the full period are available. The corn crops for this country ranged from 77,000,000 busliels in 1918 to 122,000,000 bushels in 1915, the average for the 12 years being 95,000,000 bushels. Italy's share in the world crop varied from 2.1 per cent in 1920 to 3 per cent in 1913, its average for the period being 2.5 per cent. Owing to incomplete reports for Eumania its corn-crop statistics have been included with other countries in the table. The statistics available, however, indicate that complete reports would probably give Rumania third position among the corn-producing countries. In the first 11 years of the period, 1910-1920, Egypt had from 1.4 per cent to 2.1 per cent of the world corn crop, and from 1914 to 1920, inclusive, the corn crops of British India were from 2 per cent to 3 per cent of the total world crops in those years. Demand for corn. — The principal countries growing more corn than is needed to supply their own demands, as reflected in export statistics, are Argentina, British South Africa, and the United States. Rumania and Russia also showed exports prior to 1914, but statistics of exports for these tw^o are not available since 1914. Argentina was the leading exporter of corn except for the two war years 1917 and 1918, when the United States took the lead. Argen- tina regained the lead, however, in 1919. Import statistics show that the principal corn importing countries are the United King- dom, France, Denmark, and the Netherlands. The following table shows the quantity of corn, including corn meal, imported by the principal importing countries for the years 1910-1921: Table 10.- -Quantity of corn imported by the principal importing countries, 1910-1919.'' [In thousands of bushels.] Year. United Ivingdom. Nether- lands. France. Den- mark. Other countries. Total. 1910 73, 487 77, 449 88, 166 97,721 7.5, 499 92, 226 68, 759 53, S02 32,275 38,987 21,512 25,743 38, 262 39,674 25,674 43, 338 27, 514 8,528 346 9,635 15, 355 19, 742 23,951 23, 279 16,331 17, 582 28, 379 6,349 6,748 6,921 7,217 11, 085 13, 809 15, 938 10,399 27,354 17. 767 9,508 105 ia3,346 120, 727 164,927 161, 203 54, 552 57,244 34, 724 31,177 32, 202 38,477 220,917 1911 2,54, 746 1912 329,115 1913 337, 815 1914 182, 455 1915 237,744 1916. 177, 143 1917 109,364 1918 71,676 1919 94,020 1 U. S. Department of Agriculture Yearbooks, 1912-1920. The United Kingdom was the largest importer of corn each year covered by the table. The second largest purchaser, excepting Ger- PRODUCTION" AISTD EXPORTS. 13 many and Austria-Hunorary, statistics for whose imports since 1913 are not available, was the Xetherlands. France, Denmark, and Italy all purchased corn in considerable quantities. Section 6. Importance of grain exports. Importance in foreign trade. — The exports of grrain and prod- ucts made directly from ofrain constitute an important proportion of the total value of the domestic exports from the United States. Since 1910 the value of exports of breadstuffs has constituted from about 6 to 17 per cent of the total value of all domestic exports. The smallest proportion during that 12-3^ear period was in 1910 and the largest in 1921. The proportion of the total value of do- mestic exports supplied by breadstuffs was much larger during the war and post-war years than from 1910 to 1913. There was a de- cline in both the value and proportion for breadstuffs in 1916 as com- pared with 1915. This decline was due almost entirely to a marked decrease in wheat exports caused by the small crop of 191G. The total value of domestic exports and the value and proportion sup- plied by breadstuffs for the period 1910-1921 are shown in the following table : Table 11. — Total value of domestic exports and of breadstuffs, loith index num- bers based on 1910 as 100, and the proportion of domestic exports supplied by breadstuffs, 1910-1921} Domestic exports. Breadstuffs. Proportion of exports Year. Value. Index numbers. Value. Index numbers. supplied by bread- stuffs. 1910 $1,829,022,929 2, 058, 413, 224 2,362,696.056 2, 448, 576, 614 2, 071, 057. 744 3, 493, 230, 532 5, 422, 642, 505 6,169,617,225 6,047,874,437 7,749.815.556 8,080,480.821 4,379,023,730 100 116 129 134 113 191 296 337 331 424 442 239 $109, 093, 689 135,860,349 161,672,348 203, 391, 856 310,280,873 527, 886, 907 471.918,100 631, 988, 510 801,497,716 920,301,977 1, 079, 107, 701 • 748,015,627 100 125 148 186 284 484 433 579 735 844 989 680 6.0 1911 6.6 1912 6.8 1913 8.3 1914 15.0 1915 15.1 1916 8.7 1917 10.2 1918 13.3 1919 11.9 1920 13.4 1921 17.1 1 Monthly Summary of Foreign Commerce of the United States, Bureau of Foreign and Domestic Com- merce. The total value of domestic exports increased rapidly and quite uniformly from 1910 to 1920, but there was a sharp decline in 1921. In 1920, the record year, the total value of domestic exports was about 342 per cent greater than in 1910, while the 1921 value de- clined until it was only 139 per cent greater than in 1910. During this period the value of breadstuffs exported from the United States increased even more rapidly than the value of all exports. The record was also reached in breadstuffs in 1920, when the value of these exports was 889 per cent larger than for 1910, while that for 1921 dropped until it was only 586 per cent greater. A noticeable feature of our foreign trade for 1921 was the in- creased volume of exports over 1920 in the case of the leading agri- cultural commodities, while the values almost without exception showed a marked decrease from the previous year. 14 METHODS AND OPERATIONS OF EXPORTERS. The sum of ?>2 of tlie principal afrricnitural commodities enterinj^ into our export trade showed an increase of 27 per cent in quantity over 1920, while values showed a decrease of 39 per cent. Exports of phincipal chains. — Wheat, rye, oats, barley, and corn are the principal jirrains exported from tlie United States. Generally speaking there lias been a marked increase in the quantities of these jrrains exported from the United States since 1910. Imports have also been generally much larger during the latter part of that period. Detailed statistics of exports and imports for the period 1910-1921 are shown in Appendix Table 6. The quantity ancl value of net ex- ports — i. e., exports less imports — for each of the five principal grains and products thereof are given in the following table for the period 1910-1921 : Table 12.- -Net exports of grain, and products thereof, from the United States, 1910-1921} Wheat. Rye. Calendar year. Bushels. Value. Bushels. Value. 1910 61,059,430 81,408,498 106, 466, 609 153, 697, 001 230,071,942 271,652,209 209,627,269 132,793,834 192,621,895 259,267,508 268, 272, 431 328,995,208 $65, 595, 367 81,362,436 106,614,778 151,051,647 248,511,830 373, 866, 410 301,861,116 310, 743, 259 476,811,616 635,605,175 737,563,185 508,747,814 51,018 31,436 601,123 2,034,321 8, 158, 407 13,654,598 15, 837, 500 14,688,836 16, 308, 089 40, 494, 346 59, 252, 966 30,145,645 $36,359 1911 22,198 1912 344, 659 1913 1,402,180 1914 8, 043, 740 1915 15, 794, 669 1916 19, 3.S0, 293 1917 27, 959, 504 1918 31,065,348 1919 74,210,710 1920 125,977,975 1921 44, 588, 575 Barley. Oa ts. Calendar year. Bushels. Value. Bushels. Value. 1910 8,262,961 3, 555, 136 8,194,936 12,782,267 18, 208, 186 26, 529, 403 22, 485, 920 17, 85S, 849 20,764,017 39, 003, 636 17,854,335 25,834,000 $4, 705, 321 2,505,777 5,810,410 7, 882, 342 11,183,382 19,312,6.83 19,752,951 26,207,499 34,443,229 56,344,715 27,165,469 20,687,056 2,130,934 3,607,234 28,040,997 » 5, 731, 649 27,994,295 108,015,235 105, 733, 463 111,632,823 129, 738, 264 66,961,275 9,820,610 5, 419, 243 $1,160,516 1911 1,821,310 1912 11,318,505 1913 » 1,206,719 1914 18,277,368 1915 .* 61,466,273 1916 . ; 55, 787, 830 1917 82,060,145 1918 114,443,339 1919 57,965,038 1920 9,689,563 1921 3,948,975 Calendar year. Corn. Total 5 i P'ains. Bushels. Value. Bushels. Value. 1910 44,072,209 63, 522, 250 31,727,912 41,940,517 1,218,624 43,805,702 53,610,190 55, 481, 280 45,127,684 4, 854, 523 14,387,142 132,161,193 $29,170,700 37,733,711 23,278,738 24,476,803 3,&S3,806 36,846,642 47, 865, 477 81,196,548 86, 189, 283 18,702,767 25,645,403 96, 412, 501 115, 576, 552 152, 124, 554 174,931,577 204,722,457 285.651; 454 463.657,147 407,294,348 332,455,622 404,559,949 410,581,288 369,587,484 522,555,289 $100,668,263 1911 123,445,432 1912 147,367,090 18:3,606,253 1914 289,900,126 507,286,677 1916 444,647,667 528,166,955 1918 742,952,815 842,828,405 1920 926,041,595 674,384,921 ' Monthly Summary of Foreign Commerce of the United States, Bureau of Foreign and Domestic Com- merce. ' Excess of imports. PRODUCTION AND EXPORTS. 15 In the above table the exports of such products as wheat and rye flour, rolled oats, and corn meal were reduced to their grain equiva- lent and included in the totals. The quantity and value of the ex- ports of wheat and its products were larger each year than those for any other of these principal grains and their products. During the last three years, 1919-1921, such net exports were very large. The total for 1921 reached a record of almost 329.000,000 bushels, valued at nearly $509,000,000. While 1921 established the record as to quantity, 1920 Avas the record year as regards value, when exports of something over 268,000,000 bushels Avere valued at more than $737,500,000. The net exports of rye, barley, oats, and corn fluctuated much more widely during this period than those of wheat. Next to Avheat the net exports of barley M^ere more nearly uniform, ranging from a minimum of about 3,555,000 bushels in 1911 to a maximum of over 39,000,000 bushels in 1919. Rye, oats, and corn show very great fluctuations, Oats ranged from net imports of about 6,000,000 bushels for 1913 to net exports of nearly 130,000,000 bushels in 1918. The quantity of corn exports varied almost as widely, its range being from a net export in 1914 of something over 1,000,000 bushels to more than 132,000,000 bushels in 1921. The A^ery large increases in net exports of corn in 1921 is mostl}^ accounted for by large increases in exports to Canada, central Europe, and the United Kingdom. Rye net exports fluctuated much more than any of the others, the range being from about 31,000 bushels in 1911 to over 59,000,000 bushels in 1920. Section 7. Exports from the principal ports. The bulk of the exports of Avheat, rye, barley, oats, and corn for the three-year period 1919-1921 passed through 13 ports of the United States. Some ports that were quite important for one kind of grain Avere unimportant for other grains. For example, Detroit has been quite important as a corn and oats shipping point for export but relatively unimportant as regards the other grains con- sidered. While large quantities of Avheat Avere shipped from Gal- veston during this three-year period, that port was of negligible importance as a handler of the other four principal grains. (Appen- dix Table 10 shows the exports by ports.) The leading wheat shipping ports for the period haA^e been Gal- A^eston and Ncav Orleans on the Gulf, Baltimore, Philadelphia, and New York on the Atlantic seaboard, and Portland on the Pacific coast. During the years 1920 and 1921 there Avas also considerable moA^ement of wheat from the lake ports of Chicago and Duluth- Superior. The bulk of the rye shipments Avent from New York and Balti- more. San Francisco, Ncav York, Baltimore, and New Orleans AAere the leading ports in the export of barley. Considering the three years 1919-1921 as a Avhole, nearly one-half of the exports of oats moved from New York. In 1919 NeAv Orleans, Baltimore, Philadelphia, Boston, and Detroit Avere also important shipping ports for this grain. Milwaukee Avas the leading export point for oats in 1921, nearlA' tAvo and one-half times as much going from there as from its nearest competitor, NeAA' Orleans. For the 16 METHODS AND OPERATIONS OF EXPORTERS. whole period corn was exported birf^ely from Chicago, Baltimore, Detroit, NeW Orleans, and New York. In 1921 Milwaukee, Philadel- phia, and San Antonio were also important export shipping points for corn ; the exports from Milwaukee Avere destined for Canada and those from San Antonio for Mexico. Some very noticeable shifts occurred in the relative importance of certain ports as grain-exporting points during the three-year period 1919-1921. For instance, the wheat exj)orts from the Gulf ports of Galveston and New Orleans rose from about 80,000,000 bushels in 1919 to oyer 149,000,000 bushels in 1921, while those from the North Atlantic seaboard ports of Baltimore, Philadelphia, New York, and Boston fell from over 105,000,000 bushels in 1919 to less than 54,000,000 bushels in 1921. This change is probably largely accounted for by shorter interior hauls and unfavorable freight rates for the North Atlantic poits as compared with the Gulf ports. Portland wheat exports rose from 2,500,000 bushels in 1919 to 37,500,000 bushels in 1921. Relatively speaking, the shifting in rye export shipments were less important than in the case of wheat. However, the exports of this grain from the Gulf ports of New Orleans and Galveston rose from practically nothing in 1919 to over 2,000,000 bushels in 1921, while those from Philadelphia dropped from over 7,500,000 bushels in 1919 to about 1,000,000 bushels in 1921 and New York exported in 1921 less than half the quantity moved in 1919. As regards barley exports, both the Gulf ports and North Atlantic seaboard ports declined in importance in 1921 when compared with 1919, while the Pacific coast ports gained. Barley shipments from the Gulf ports dropped from over 8,000,000 bushels in 1919 to about 1,000,000 bushels in 1921, and those from the North Atlantic ports fell from over 17,000,000 bushels in 1919 to about 6,000,000 bushels in 1921, while those from the Pacific ports rose from about 6,000,000 bushels in 1919 to over 18,500,000 bushels in 1921. New Y^ork exports of over 26,500,000 bushels of oats out of a total of about 55,000,000 bushels in 1919 fell to only a little over 300,000 bushels in 1921 out of a total of 3,250,000 bushels. In 1921 Milwaukee exported over 1,250,000 bushels of oats as compared with none for 1919. While corn net exports were nearly 29 times greater in 1921 than 1919, some of the ports showed much larger proportional gains for 1921 than this general increase would indicate. For instance, Gal- veston shipments of corn increased from about 3,000 bushels in 1919 to over 905,000 bushels in 1921, and the movement through San Antonio rose from about 103,000 bushels in 1919 to nearly 8,000,000 bushels in 1921. Chicago corn exports went from about 900,000 bushels in 1919 to nearly 36.000,000 bushels in 1921. Baltimore. Philadelphia, Boston, and Milwaukee also each made much larger gains in their corn exports for 1921 as compared with 1919 than the increase in total exports would lead one to expect. The large increases in corn exports at certain ports in 1921 over 1919 do not seem to have been made by those in one section at the expense of ports in ajiother section as in the case of wheat. Appendix Table 10 shows the number of bushels of wheat, rye, barley, oats, and corn exported for the calendar years 1919, 1920, and 1921 through 13 important ports. peoductiojSt and exports. 17 Section 8. Proportion of grain exported. There are no statistics which sliow the proportion of a given crop that is exported in a particular year; even statistics of production and of reserves are estimated. The quantities exported and im- ported are secured from dechirations made at the time of export or of import. While it is not possible to show the*exact proportion of a particular crop that is exported in a given year, the ratio of the quantity exported in a given year to the estimated production for that 3^ear can be shown. The following table, based upon net export and production statistics, shows what per cent the net export of each of the five principal grains — wheat, rye, barley, oats, and corn — was of the total production of each for the 12-year period 1910-1921. Table 13. — Proportion of United States net e-r ports to estimated prodnction for the five principal grains, 1910-1921. Year. Wheat. Rye. Barley. Oats. Corn. Year. Wheat. Rye. Barley. Oats. Com. P.ct. P.ct. P.ct. P.ct. P.ct. P.ct. P.ct. P.ct. P.ct. P.ct. 1910 9.6 0.1 4.S 0.2 1. 5 1916 32.9 32.4 12.3 8.4 2.1 1911 13.1 .1 2.2 .4 2.5 1917 20.9 2:3.3 8.4 7.0 1.8 1912 14.6 1.4 3.7 2.0 1.0 1918 20.9 17.9 8.1 8.4 1.8 1913 20.1 4.9 7.2 0) 1.7 1919 20. S 53.6 26.4 5.7 .2 1914 25.8 19.1 9.3 2.5 « 1920 32.2 98.0 9.4 .7 .4 1915 2G.5 25.3 11.6 7.0 1.5 1921 41.4 52.0 17.1 .5 4.3 ' Imports exceeded exports. 2 Less than one-tenth of 1 per cent. The above table shows a wide range in the f)roportion of the net exports to the estimated production for the five principal grains. The ratio of exports in a given year to that year's wheat crop ranged from a minimum of about 10 per cent in 1910 to a maximum of a little over 41 per cent in 1921. The proportion was in excess of one-fifth for the entire period 1913-1921, and it was particularly large in each of the last three years. The proportion of rye ex- ports fluctuated from a minimum of one-tenth of 1 per cent in 1910 and 1911 to 98 per cent in 1920. As in the case of Avheat the proportion of lye exported was very large during the three-year period 1919-1921. A large exporter of wheat and rye stated in a letter dated February 25, 1920, that "practically all the rye in store has been cleaned off." The proportion of barley and oats ex- ported during the period 1910-1921 was much smaller than either rye or wheat. In the case of barley the equivalent of only 2.2 per cent of the 1911 crop was exported, while the maximum of a little over 26 per cent was exported in 1919. In 1913 the imports of oats exceeded the exports. The proportion of oats exported has never been large. The largest net exports occurred during the war period. The proportion of the com crop exported is comparatively small. In 1914 corn exports were less than one-tenth of 1 per cent of that year's crop, while the largest proportion, which was for 1921, was only 4.3 per cent. Section 9. Grades and kinds of wheat exported. Export grades. — The bulk of the wheat exported from the United States during the period July 1, 1920, to December 31, 1921, was No, 2 grade. July 1, 1920, practically marks the date of resump- 18 MKTirODS AND OPERATIONS OF EXPORTERS. tion of cxi)()rtiii20. to December 31, 1921, is largely raised in the States of Nebraska, Kansas, and Oklahoma. Soft red winter wheat, which constituted a little over 12 per cent of the total, is produced principally in Ohio, Illinois, Indiana, Mis- souri. Oklahoma, and eastern Kansas. Most of the hard red spring Avheat. which furnished 5 per cent of the total, is produced in North Dakota, South Dakota, and ^Minnesota. Durum, a varietj^ of spring wheat, is almost all produced in North Dakota, South Dakota, Min- nesota, and ^Montana. California, Washington, Oregon, and Idaho produce nearly all of the Avhite club and common white wheats. The quantities of these last three varieties of wheat constituted a very small ])roportion of the total exports from the United States during the 18-month period beginning July 1, 1920. Detailed information respecting tlie kinds of wheat exported from the United States during the 18 months ending December 31, 1921, is given in Ap- pendix Table 11. 106205°— 22 4 Chapter III. EUROPEAN GOVERNMENT CONTROL. Section 1. The Allies' war control. Governmental regulation and direct control of food supplies dur- ing and subsequent to the war with Germany expanded far beyond that of any earlier war. In the wars with France at the time of the Revolution and the Na- poleonic Era statutory legislation in England reached its maximum up to that date, and these wars may be said to have been mainly conducted under acts of Parliament specifically enacted for that purpose. Among the numerous acts for the conservation of grain supplies were those prohibiting the making of wines and sj)irits from grain and flour, prohibiting the making of starch, hair powder, and blue from wheat; permitting, and later requiring, bakers to make bread with a larger proportion of bran by mixing other grains or potatoes with wheat. Most of these measures were repeated in the recent World War, and in addition many other steps taken, including Government purchase and direct control of important articles of food, the intensive regulation of the kinds and quantities of different foods to be used, and the fixing of prices.^ The Royal Commission on Wheat Sitpplies. — The problem of food supplies at the outbreak of the World War was placed in the hands of various commissions, and in August, 1914, there was organized a Commission Internationale cle Ravitaillcment as the result of an agreement with the French Government to assist in the purchase of food supplies, munitions of war, and field equipment. The scope of this commission was later extended to other allied Governments. Applications for permission to export goods intended for allied Governments were dealt with by this body. Exportation of food was prohibited, and after a few months the prohibition was extended to feeding stuffs for animals. The Royal Commission on Wheat Supplies by virtue of a royal war- rant of October, 1916, was appointed to inquire into the supply of wheat and flour in the United Kingdom ; to purchase, sell, and con- trol the delivery of wheat and flour on behalf of the Government; and generalh" to take such steps as might seem desirable for main- taining the supply. On October 27 the royal warrant was extended to include other grains, and on April 25, 1917, the terms were again widened to include the supply " of wheat and all other cereals and the products thereof, of all pulses and the products thereof and farina, and of all substitutes for an}'- such grain, pulse, or products thereof." Thus, by the spring of 1917 the Government had become 1 British War Administration, Ch. I, pp. 3-14 ; Ch. X, p. 197. 20 EUROPEAN GOVERNMENT CONTROL. 21 resjionsible for importino; wheat, maize, barley, rye, oats, peas, brans, and other pnlse, flour, and every kind of product of a cereal charac- ter and all substitutes therefor. Overseas organization. — Two concerns in the United Kinjrdom, with establisliments in foreij^n markets, entered into voluntary con- trol, and their oroanizations l)oth in England and abroad were placed at the disposal of the royal commission on a fixed basis of remuneration. Thus the commission at the outset found itself pro\'id.ed vrith agencies in Canada, the United States, the Argentine, and India. The largest of the overseas organizations was the Wheat Export Co. (Inc.), 27 Beaver Street, New York, incorporated under the laws of the State of New York, with its allied house, the Wheat Export Co. (Ltd.), of Canada, incorporated under the laws of Canada, with headquarters at AVinnipeg. The wheat export companies were the official agents of the Governments of Great Britain, Italy, and France, and acted solely on their belialf and for authorized gov- ernments, taking no instructions excei)t those which reached them from the Allies. They were ]:)recluded from trading except for or at the instance of the Governments concerned. The organization of these same allied powers in Argentina was styled the Comision Interaliada para la Compra de Cereales. There were a series of problems in connection with the ])urchase of grain in Argentina, due largely to the necessity for an immense storage of supplies, the purchase of large quantities of jute, and to labor troubles, which were more acute in South America than elsewhere. Some 9,000,000 tons of all cereals were purchased through the roj^al commission's Argentine organization. A subordinate agency was set up in Montevideo, Uruguay. In Australia the whole crop was controlled by the Commonwealth Government, wdiich in turn sold large blocks to the royal commission, as agents for the wheat executive — the cereal alliance of France, Italy, and Great Britain. In September, 1916, it was estimated that about 1,600,000 tons of old crop wheat were available in Australia. Sales were subsequently made to the commission of 5,415,000 tons. During 1918, 125,000 tons were dispatched to the United States and in 1919, 40,000 tons were sold to the Government of India. In India the central government at an early stage of the war took steps to regulate the export of Avheat and flour. Although 90 per cent of the grain produced is usually retained for home consumption, the influence on internal prices of the exportable balance might have unduly raised prices in that empire, and under certain conditions might have depleted the necessary supplies. The Government of India, being reluctant to incur either risk, limited exports to specified quantities at regulated prices. A Avheat commissioner was appointed who was authorized to act as correspondent of the royal commission. A sj^stem of internal control of distribution arose from the original necessity of regulating export, a measure which was also applied to rice and grain, with the result that during the grain famine of 1919 the problem of food supply Avas handled w^ith success. Throughout the war the range of wdieat prices in India was maintained at a lower level than in any other exporting country of the world. South Africa, though a recognized importer of wheat, was able to sell a certain quantity of maize, maize meal and flour, oats, and brans, 22 METHODS AND OPERATIONS OF EXPORTERS. and an ofricial of tlie Union was allowed to act as the local correspond- ent and a^ent of the royal commission. 'J'liic WHKAT ExKcuTivK AGREKMKNT. — France and Italy on Novem- ber 29, 1916, joined witli the United Kin Grain bought for stocks In this country is not bought on a c. i. f. basis. 'It may hapi)€n that part* of the grain destined for a particular order is late in arriv- ing at port, and in such instances the agent may be able to borrow grain to complete the order. 1 METHODS OF FOREIGN BUYERS. 37 There is no doubt that the cost of running steamers is coming down still further, and, therefore, we would rather be short than long of freight at a level of 4/- carso basis. Luke freights.— L?ike freights for the Canadian route are probably different and we note your engagements of 300,000 bushels for the opening of navigation to the Bay at 3 cents. It looks very reasonable particularly if it is for first- trip boats and we leave it to your discretion to take more at the same price. The chartering of space is conducted in a manner quite similar to the purchase of grain, the exporter bidding a freight broker for a quantity of space in a specified position. If, as sometimes occurs, the broker can himself meet the requirements, a contract is made for the space needed and the steamship company notified. AYhen nego- tiating for cargoes it is generally necessarj^ to cable London, the headquarters for such business, and this is also conducted through freight forwarders, who in turn work through chartering brokers. Usually there are several bids and offers exchanged before the deal is consummated. As a general rule parcel freights are booked here and cargoes in London. Usually only sufficient space to meet im- mediate requirements is chartered. However, at times the more important foreign firms, in their desire to be absolutely sure of suffi- cient space, have speculated in the sense that they have booked ocean freight in anticipation of their needs. As previously indicated, the question of securing space is fre- quentlj^ of vital importance. Orders are often lost to competitors because the latter temporarily have all the available space to certain ports under charter. Then, too, ocean freight rates frequently fluctuate and cause losses, although profits are at times thereby increased. Exchange. — In order to avoid the risk of fluctuations in exchange, a sufficient amount of foreign money ^ is sold to cover the sale of the grain. If the grain is sold for deliver}?' in the future the sale of exchange must be made for delivery, at seller's option, in the month of shipment. Upon making shipment and securing all docu- ments the latter are attached to the draft, which is presented at the bank through which the exchange transaction was made.* The matter of exchange is of great importance to grain exporters. Dollars at a high level frequently force foreign buyers out of the American market. Generally, every effort is made to prevent fluc- tuations in exchange affecting their profits. However, these foreign houses frequently speculate in exchange and at times have been " long " large amounts of dollars for extended periods of time. Stocks or grain. — Some of the large foreign companies endeavor to maintain a regular " stream " of grain going to certain ports. This is necessary to supply their regular trade. Every effort is made to prevent disarrangement of this flow and it has been neces- sary at times to divert shipments destined for other ports to the stream in order to meet imperative requirements. In order that the stream may be maintained the large foreign grain finns with branches in this country find it necessary to maintain stocks of * That in which payment for the grain is to be made. For example, at the present time, March. 1922. sales to TJnited Kingdom are on a sterling basis ; Portugal also generally buys in sterling; Holland in guilders; Greece and Italy generally in dollars. ■♦ This applies in particular to American exporters. Since the local branches of the foreign houses sell but little of the grain they handle, most of the exchange transactions are attended to by the head offices. The American branches, however, frequently attend to transactions involving Canadian exchange. 38 METHODS A'NT) OPERATIONS OF EXPORTERS. f^rain in order to meet their demands in times of emergencies. This is particularly true when foreign countries are buying from hand to moutli, and it is necessary to have grain in " near-by positions " for prompt shipments.^ These stocks of grain are stored in public elevators at points be- lieved most strategic for the purpose of the individual concern. Few foreign concerns own elevators in North America. As a rule the eastern seaboard markets are utilized for this purpose, although considerable quantities also are stored at Buffalo and other interior markets by these concerns. Winter storage in boats at Buffalo is used frequently when rates and general market conditions are be- lieved favorable to the practice. Storage space in elevators at Gulf ports is also used. Occasionally grain has been stored at Pacific coast ports. Most of the Pacific coast business is handled by the head offices of the foreign concerns which deal directly with firms on the Pacific coast. Stocks are also maintained abroad by some concerns in order to insure a supply of grain at all times.'' These stocks of grain presumably yield an additional profit in that the owners are able at times to mix grain of a low grade with that of a higher grade and sell the resultant mixture as No. 2 gi-ade.'^ The following quotation from a letter dated February 1, 1921, to the head office of a foreign firm from its American branch is of interest in this connection : We unfortunately found when it came to making an actual shipment of #1 Dark Northern that we had to make the mixture 35% of #1 and 65% of #3 instead of 25% and 75% respectively as originally advised you. We could also probably make Dark #1 Northern out of half and half mixture of #2 Northern and #3 Northern. This practice of mixing is very common and from all reports profitable. It is a well-known fact that grain going for export is generally of the lowest qualit}?^ permissible for the designated grade. Section 4. Handling grain abroad. Facilities for handling. — While comparatively little could be learned in this country of the distribution of grain abroad, it is reported that the facilities for handling grain in European countries are generally antiquated and inefficient as compared with those of the United States and Canada. Comparatively few European ports have modern equipment for unloading grain from steamers. In many instances the grain must be sacked in the holds of steamers, transferred to lighters, which are towed to docks where the grain in sacks is trucked by hand into warehouses where it is weighed and stored. This method of handling is not only inefficient but apt to be w^aste- ful. The seller of the grain in the United States receives upon loading a vessel, certificates showing the weight of the grain loaded. s This is also true of American export firms. » While it was stated by American representatives of a few foreign concerns that they maintained stocks abroad, it is not quite clear that this is a voluntary situation. It is stated that these concerns only maintain stocks when they have arrivals which they can not dispose of advantageously and they are forced to store it for a turn in the market. ^ This practice Is not confined to grain in store. Grain that is bought for immedmte shipment is frequently mixed. See also Federal Trade Commission's report on The Grain Trade, Volume III. METHODS OF FOREIGN BUYEKS. 39 These certificates are sent to the purchaser as evidence of the seller's fulfillment of contract. However, in order to insure against loss of weight before actual delivery the seller may insure his outturn, i. e., the unloading weight, with one of the several insurance com- panies engaged in this business. For a small fee, al)Out one-eighth cent per bushel, these companies insure the seller against loss of outturn, and when a vessel thus insured is unloaded, a representa- tive of the insurance company checks the unloading weights and guards the interests of the seller in the unloading process. If the quantity of grain unloaded is less than that called for by the weight certificates the insurance company stands the loss; and if there is an excess in weight the insurance company receives the excess grain in addition to its fee. Besides the unloading process mentioned above there are other steps in the distribution of grain in foreign countries which are in- efficient and slow as compared with American methods. Grain re- ceived in bulk must frequently be sacked at some time in the dis- tributing process, owing to lack of bulk handling facilities at the point of consumption. Most of the grain shipped from the United States by foreign houses is sold on a c. i. f. basis and usually in large quantities. Sometimes sales of small quantities are made on a delivered basis, the grain being supplied either from cargoes or stocks maintained abroad. The smaller foreign mills, that is, those unable to handle a full cargo of grain, at times are supplied by direct shipment from Amer- ica. The seller frequently is able to secure orders from three or four rather small mills at different ports in somewhat close prox- imity, the total orders being sufficient to make a cargo, A steamer is then chartered for trips to all these ports. This is more ex- pensive, of course, than a charter to only one port, but is some- times the only way of supplying some mills. Other small mills secure less than cargo quantities of grain by shipments on regular steamers to their port. These statements also apply to purchases by small local grain merchants. There are many markets in Europe capable of absorbing but little grain at a time and the dealers in these places must of necessity buy in small lots. Financing foreign buyers. — It is believed that some of these large foreign firms obtain much of their business because they are willing to finance buyers. American firms are frequentlj^ unwilling and at times unable to do this. Lack of credit information and also a lack of cooperation from American banks are alleged to be the principal obstacles to financing foreign buj'ers by American firms. In this connection it is interesting to note that some international firms guard their financial arrangements very zealously to prevent any in- formation concerning them becoming public. It was stated that the ability to finance buyers in some countries was one of the most im- portant, if not the most important, factors in securing orders. For- eign buyers have frequently paid commissions or fees to sellers of grain not only on the grain they bought but for financing the pur- chases. Combinations among foreign buyers. — According to the best in- formation obtainable there are comparatively few combinations among 40 METHODS AND OPERATIOISrS OF EXPORTERS. foreign grain buyers. In the Netherluiids and Sweden there are re- ported to be groups of millers that have formed organizations which buy grain for the entire group. Since the M^ar there have l)een a few consolidations of mills, notably in France. Accoi-ding to the meager information at hand these have had little, if any, effect upon compe- tition for grain. The consensus of opinion among American grain merchants and brokers seemed to be that competition in the foreign grain trade was exceedingly keen. Chapter V. CONTROL AND INTERRELATIONS OF GRAIN EXPORTERS. Section 1. Form of organization of the grain exporting company. Trading in grain, including the sale of grain to the foreign buyer, does not require extensive physical equipment and therefore does not call for any considerable capital in permanent form. While some merchants phj^sically handle and store the grain, thus requiring the use of considerable capital, others, many of them among the largest grain merchants, do not so handle the grain. Hence, a large pro- portion of the capital of the grain merchant may consist of worldng capital which may be in the form of borrowings secured by grain. Because much capital in a permanent form is not required in grain merchandising, the corporate form of organization may not carry with it the same advantages which it has in the large units of some other lines of business. Out of 37 companies, each exporting in 1921 over a million bushels of wheat, 1 was an individual proprietorship ; 9 were partnerships ; and the remainder were corporations. Moreover, many of the corporations appear to be only nominally capitalized; and aside from small holdings by the salaried traders of the company and the directors' qualifying shares, the capital stock holdings are usually confined to a comparatively small number of people. On the other hand, the corporate form of organization for a given business unit facilitates its control by some other business unit. The company directly controlled by another, sustaining the so-called sub- sidiary relationship, is usually incorporated, though the controlling company may be a partnership or an individual proprietorship. Nu- merous instances of such company control over an incorporated con- cern are found in the grain exporting business. The corporate form of organization also facilitates the affiliation of companies. A partnership firm may have a partner in common with another partnership firm, but such community of interest is not so common nor so practicable in the partnership as in the corporation. Instances are noted in the grain exporting business where companies are linked together by being owned wholly or in part by common interests, either individual or company ; other instances are noted of companies being linlvcd together by holding a joint control over other firms. Section 2. Grain exporting companies in order of 1921 volume of exported wheat. In 1921 there were 36 companies whose exportation of wheat amounted for each company, including its fully controlled subsid- iaries, to more than 1,000,000 bushels. Besides these 3G companies there were 5 Baltimore firms ^ which refused to furnish the commis- 1 These firms are: John T. Fahev & Co., a partnership; Baltimore Grain Co., a corpora- tion; Gill & Fisher, a partnership; H. C. Jones & Co. (Inc.) ; and Hammond. Sn.vder & Co. (Inc.). other Baltimore exporters £ilso refusing information are C. P. Blackburn & Co., and Dennis & Co. (Inc.). 41 42 METHODS AND OPERATIONS OF EXPORTERS. sion's requested information, whose probable wheat exports in 1921 amounted for each firm to more than 1,000,000 bushels. The reported fifi^ures for these 36 companies covered not only American-raised wheat, but a certain portion of Canadian wheat which could not be excluded for individual companies from the figures representing their total exports. As reported by the Department of Commerce, there was a total of American wheat exported in 1921 amounting to 279,948,601 bushels. Adding to this the quantity of Canadian wheat exported from American ports as reported by the Depart- ment of Commerce, viz, 65,016,919 bushels, there was a total ex- port of wheat from United States ports in 1921 of 344,965,520 bushels. Of this total the 36 companies exported 293,885,920 bushels, or 85.2 per cent. These companies are listed in the table below in order of volume of exported wheat, together with quantity exported by each firm and percentage of total exported for the country, and accumulated quantities and percentages. Table 17. — Companies whose exportation of wheat in 1921 amounted for each company, with suhsidiaries, to more than 1,000,000 bushels, icHth quantities exported and percentages of total exported. Company. Bushels. Per cent of total United States export.* Cumulative bushels. Cumu- lative percentage. 51,587,922 36,768,353 19,084,914 17,332,000 13,96,5,974 12,200,000 11,001,578 9,612,975 8,369,229 8,215,365 8, 137, 100 8,000,000 7,938,897 7,655,859 7,348,170 6,000,000 5,941,200 5, 443, 287 5, 213, 950 4,975,841 4,614,874 4, 300, 000 3,973,357 3,940,150 3,616,027 2,919,419 2,175,000 1,900,000 1,807,650 1, 804, 145 1,584,740 1, 505, 000 1,393,300 1,324,000 1,138,614 1,096,000 1.5.0 10.7 5.5 5.0 4.0 3.5 3.2 2.8 2.4 2.4 2.4 2.3 2.3 2.2 2.1 1.7 1.7 L6 1.5 1.4 1.3 1.2 1.2 Ll LO .8 .6 .6 .5 .5 .5 .4 .4 .4 .3 .3 51,587,922 88,356,275 107, 441, 219 124,773,219 138, 739, 193 150,939,193 161,940,771 171,553,746 179,922,975 188,138,340 195,275,440 204, 275, 440 212,214,337 219,870,193 227, 218, 366 233,218,366 239, 159, 566 244,602,853 249, 816, 803 254,792,644 259, 407, 518 263,707,518 267,680,875 271,621,025 275,237,052 278, 156, 471 280,331,471 282,231,471 284, 039, 121 285,843,266 287,428,006 288,934,006 290,327,306 291,651,303 292,789,920 293, 885, 920 15.0 25.6 P N Gray & Co. (Inc.), New York 3L1 Barnes-Ames Co., Duluth, and New York subsid- 36.2 J. Rosenbaum Grain Co., Chicago, and its subsid- iary, Chesapeake Export Co. (Inc.), New York... Kerr Giiiord & Co (Inc.) Portland, Oreg 40.2 43.8 C f! & G. W. Eddy (Inc.), Boston 46.9 Grain Growers Export Co. (Inc.), New York 49.7 52 2 Wm H MtiUer & Co (Inc.), New York 54.5 Norris Grain Co., Chicago, Kansas City, and New York. 56.9 E. A. Strauss & Co. (Inc.), New York 59.2 C B Fox Co (Inc ) New Orleans 61.5 Albert C. Field (Inc.), New York 63.7 65.9 Nor thern Grain & Warehouse Co. Portland, Oreg. . Balfour, Guthrie & Co., San Francisco, Calif Hall-Baker Grain Co., Kansas City and New York. . Pacific Grain Co., Portland, Oreg 67.6 69.3 70.9 72.4 73.9 75.2 Webb & Kenward (Inc.), New York 76.4 77.6 Donahue-Stratton Co., Milwaukee 78.7 Commercial Union of America (Inc.), New York. . Schilthuis American Trading Co., New York Suzuki & Co Portland Oreg 79.8 80.6 81.3 Mitsui & Co. (Ltd.), Portland, Oreg 81.8 Blake-Dobbs Co. (Inc.), New York 82.3 Gray-Rosenbaum Grain Co. (Inc.), Portland, Oreg. Langenberg Bros. Grain Co., St. Louis and New 82.9 83.3 Peoples Industrial Trading Corporation, New York. The Updike Grain Co., Omaha, Nebr 83.8 84.2 84.5 Mitsubishi Shoji Kaisha (Ltd.), Seattle, Wash Cooperative Wholesale Society (Ltd.), New York.. 84.9 85.2 • Total wheat exported from the United States, 1921, including Caoadiaa wheat, 344,955,520 bushels. CONTROL AND INTERRELATIONS. 43 It appears from this table that 2 firms (branches of foreign houses) exported, in 1921. 25.6 per cent of the total wheat exported from the United States ; that 4 firms exported 36 per cent ; that 8 firms exported 50 per cent ; that 21 firms exported 75 per cent ; and that 36 firms exported 85 per cent. This statement, however, does not dis- close the full extent of concentration in the exportation of wheat. As pointed out above, 5 Baltimore firms are not represented in these figures. The inclusion of the exports of these firms would doubtless raise the total well above 90 per cent, and since the exports of one of these firms are particularly large, would show a much higher total percentage for the largest half dozen companies. The remaining percentage, less than 10 per cent, perhaps as small as 5 per cent, was exported by some 50 companies, each exporting less than 1,000,000 bushels. Section 3. Control and interrelations of the principal grain-exporting firms. Attempt is here made to set forth (1) the individual and company interests controlling the principal grain-exporting companies; (2) the exporting and other grain and elevator companies which these principal exporting companies themselves control; and (3) the inter- relations of these exporting companies both as between themselves and as between themselves and other grain companies, whether the interrelationship of these companies is through their being owned by a single interest or whether it is through their jointly owning other firms, in either case the companies being bound together hj a common interest. Companies are treated in order of size of volume of the 1921 wheat exports, except that related companies are placed, as far as possible, in juxtaposition with one another. Samuel Sanday & Co. — Samuel Sanday & Co., London, England, is an English partnership, its principal office being located in London. It has an American branch, operating as Sanday & Co., with an office at Xew York, which purchases all grains for export for the account of the main office in London. In addition to the 51,600,000 bushels of wheat exported in 1921, it exported 22,000.000 bushels of corn, rye, oats, and barley. Partners, all of London, are as follows: Samuel Sanday, H. W. Patrick, A. B. Earle, G. T. San- dav, A. C. Sanday, W. D. Sanday, Robert Clark, G. L. Wilson, J. Kenyon, G. M. Clayton, and H. Beatty. The firm liolds a member- ship in the New York Produce Exchange in the name of G. F. Earle, their New York manager, who was a vice president and director of the Wheat Export Co. (Inc.), and held 20 per cent of its stock. This company was the official agent for the allied Governments during the war, becoming inactive early in 1920. (See below.) Louis Dreyfus & Co. — Louis Dreyfus & Co., Paris, France, a partnership, has branch offices in New York ; London, England ; Buenos Aires, Argentina; Antwerp, Belgium; Bombay and Calcutta, India; Melbourne, Australia; and Barcelona, Spain. It is an ex- porter and importer of grain, linseed, and cotton seed. In 1921 it exported from the United States 36,768,000 bushels of wheat, 1,161,000 bushels of com, 841,000 bushels of rye, and 1,352,000 bushels of oats. The partners are Louis Louis-Dreyfus and Charles Louis- Dreyfus, both of 4 Rue de la Banque, Pans. It was organized in Paris in 1915. 44 METHODS AND OPERATIONS OF EXPORTERS. r. N. Gray & Co. (Inc.).— P. N. Gray & Co. (Inc.), New York, is a grain exporting and general merchandising firm acting also as a purchasing agent. In 1921 it exported 19,085,000 bushels of wheat, 5,042,000 bushels of corn, 5,304,000 bushels of rye, 1,015,000 bushels of oats, and 20,000 bushels of barley. It was organized in 1919 under the laws of Delaware. It has a capital stock consisting of 20,000 shares of common of no par value, and 5,000 shares of preferred of $100 par value. The preferred has no voting privilege. Of the com- mon stock, 8,000 shares are owned by the Societe Anonyme Bunge, Antwerp, Belgium; 7,810 shares by Prentiss N. Gray, New York; and the remainder bv six other holders in New York as follows: Carlos Falk, 1,050; Wallace H. Foster, 1,050; John D. Fletcher, 1,050 ; Edgar Eickard, 500 ; Abbie Church Rickard. 400 ; Edwin P. Shattuck, 400. The entire issue of common stock is held by a voting trust expiring February 15, 1926, which vests the unrestricted voting privilege in the hands of Edouard Bunge, care of the Societe Anonyme Bunge, Antwerp; Willy Friling, care Bunge & Co. (Ltd.), London; Prentiss N. Gray, New York; and Wallace H. Foster, New York. The preferred stock is held principally by interests represented by the owners of the common stock, 1,500 shares being held by Bunge & Born (Ltd.), Buenos Aires, Argentina, a large Argentine grain exporting firm owning a controlling interest in the S. A. de Molinos Harineros y Elevadores de Granos, a large milling firm at Buenos Aires. P. N. Gray & Co. (Inc.), New York, holds 7,000 of the 10,000 shares of the P. N. Gray & Co. (Ltd.), Winnipeg, a grain merchan- dising firm. It also holds 1,250 of the 2,500 shares ($100 par value) of the Gray-Rosenbaum Grain Co. (Inc.), Seattle, Wash. (See be- low.) The Gray-Bunge interests operating through the Gray-Rosen- baum Grain Co. (Inc.) are reported as negotiating for the purchase of the Portland Flouring Mills Co. and the Pacific Coast Elevator Co., Portland, Oreg. (See below.) Gray-Rosenbaum Grain Co. (Inc.). — Gray-Rosenbaum Grain Co. (Inc.) , Seattle, Wash., has branches at New York and Portland, Oreg. It is an exporter of and a dealer in grain. In 1921 it exported 1,804,000 bushels of wheat. It is capitalized at $250,000. Of the 2,500 shares of stock, P. N. Gray & Co. (Inc.), New York, holds 1,246 and P. N. Gray, New York, holds 4; while the J. Rosenbaum Grain Co., Chicago, holds 1,244, and E. F. and E. S. Rosenbaum, Chicago, each holds 3 shares. Its president is P. N. Gray, president of the P. N. Gray & Co. (Inc.) ; its vice president, E. S. Rosenbaum, and its treas- urer, E. F. Rosenbaum, both of the J. Rosenbaum Grain Co. These three officers are also on the board of directors. The company was formed in 1921 under the laws of Delaware. It operates on the Pacific coast. The J. Rosenbaum Grain Co. — The J. Rosenbaum Grain Co., Chicago, 111., operates branch offices under the firm name at New York, Omaha, Galveston, and Fort Worth, and under the name of the Terminal Elevators at Kansas City. It was organized under the laws of Illinois in 1901. It declared the value of nearly 47,000,000 bushels of export wheat in 1921, and it therefore handles much more export grain than its actual export, which amounted in that year to 13,520,000 bushels. There are 14 holders of stock, but CONTROL AND INTERRELATIONS. 45 the greater part of the stock is held by immediate members of the Kosenbaum family and the J. Rosenbaiim estate. E. F. Kosenbaum, president of the company, and E. S. Rosenbaum, vice president, are both large stockholders. The J. Eosenbaiim Grain Co. holds a one-half interest (the P. N. Gray & Co.. New York, holding a one-half interest) in the Gra3^-Ilosenbaii'fn Grain Co. (Inc.), Seattle. (See above.) It also controls the Chesapeake Export Co. (Inc.), New York. (See below.) Through lease from the Southern Pacific Terminal Co., Houston, Tex., it operates the Sunset Elevator, Galveston, Tex. The Chesapeake Export Co. (Inc.). — The Chesapeake Export Co. (Inc.), New York, has a branch office at Winnipeg, Canada. It is a grain exporting firm having exported in 1921, 44G,000 bushels of wheat and 43,000 bushels of corn. It is capitalized at $25,000 of common stock, all owned by the J. Rosenbaum Grain Co., Chicago, and $475,000 preferred stock, one-half of which is owned by E. F. Rosenbaum and one-half by E. S. Rosenbaum, both of the J. Rosen- baum Grain Co. Common and preferred stock have like voting powers. The company was organized in 1915 under the laws of Virginia. The PeopIvEs Industrial Trading Corporation. — The Peoples Industrial Trading Corporation, New York, is an exporting and im- porting firm. It is reported as inactive since June 30, 1921. During the fiscal j^ear ending that date it exported under 10 contracts 1,506,000 bushels of wheat, of which 963,000 bushels were furnished by the J. Rosenbaum Grain Co., Chicago, 111. (see above), and 543,000 by the Chesapeake Export Co., New York, subsidiary of the J. Rosenbaum Grain Co. The Peoples Industrial Trading Cor- poration is capitalized at $500,000, one-sixth of which is held by E. F. Rosenbaum, president of both the Peoples Industrial Trading Cor- poration and the J. Rosenbaum Grain Co. ; one-sixth by the Armour Grain Co., Chicago (see below) ; one-twelfth by Percy Rockefeller, New York, director of National City Bank. New York; one-twelfth by Samuel IMcRoberts, New York, formerh^ executive manager, Na- tional City Bank, and formerly director of Armour & Co., Chicago; and one-half by Ivan Stakheef & Co., Russia. E. F. Rosenbaum, Chicago, 111. ; George E. Marcy, Chicago, 111., president of the Armour Grain Co. ; Samuel McRoberts, New York ; and Ernest Eklund, New York; comprise the board of directors. This company was organized July 1, 1919, under the laws of Delaware. Armour Grain Co. — Armour Grain Co., Chicago, 111., is a manu- facturer of cereal foods and a grain dealer for domestic and export use. In 1921 it exported 3,973,000 bushels of wheat. It is, however, a much larger fobber of export grain than exporter. It declared value on export wheat at the United States customhouse in 1921 for 20,750,000 bushels, which of course includes much of what it reports above as itself exporting. Its exports of corn for the year were 12.951,000 bushels. It is capitalized at $1,000,000, 53 per cent of which is owned by J. O. Armour, Chicago, 111., president of Armour & Co. ; 8 per cent by P. D. Armour, Lake Forest, 111. : 8 per cent by Lester Armour, Chicago, 111. ; 5^ per cent by ]\f re. Lolita Armour, Lake Forest, 111. ; 124 per cent by G. E. Marcy, Chicago, 111., president of Armour Grain Co. ; 8 per cent by May L. Valentine, New York ; 46 METHODS AND OPERATIONS OF EXPORTERS. and various small holdin^js by directors. This company owns the stock in the Export Elevator Co., Biifi'alo, N. Y., which is capitalized at $25,000, and has branch elevators at Fairport, Ohio, and Texas City, Tex, The Armour Canadian Grain Co. (Ltd.), Winnipeg, Canada, capitalized at $40,000, is owned by this firm. The Armour Grain Co. holds the entire stock ($50,000) of the Erie Co., New York, an elevator concern, and the entire stock ($1,000) of the Buf- falo Cereal Co., Buffalo, N. Y., a cereal manufacturing concern. One-sixth of the capital stock (total stock $500,000) of the Peoples Industrial Trading Corporation (see above) is held by the Armour Grain Co., while one-twelfth is held by Samuel McRoberts, former director of Armour & Co. The Armour Grain Co. was organized in 1901 under the laws of New Jersey. The Barnes-Ames Co. subsidiaries and affiliated companies. — The Barnes- Ames firms engaged in exporting grain or fobbing export grain are as follows: Barnes- Ames Co., Duluth, Minn., Barnes-Irwin Co. (Inc.), Philadelphia, Pa., Barnes-Jackson Co. (Inc.), Baltimore, Md., and Barnes-Piazzek Co. (Inc.), Kansas City, Mo.^ While ac- tually exporting about 17,300,000 bushels of wheat in 1921, this group of companies handled much other export wheat, having de- clared a value on over 25,000,000 bushels in that year. Other Barnes- Ames firms are: The Itasca Elevator Co., Duluth, Minn.; the Neal Grain Co., Omaha, Nebr. ; and Smyth, Barnes & Co. (Ltd.), London, England. The Barnes-Ames Co. — The Barnes-Ames Co., Duluth, the pri- mary company in the Barnes group, capitalized at $1,000,000, is owned principally by Julius H. Barnes and Ward Ames, jr., whose holdings, equal in amount, comprise more than 90 per cent of the total capital stock. It was organized in 1914 under the laws of Minnesota. It has a branch office at New York, The Barnes-Irwin Co. (Inc.). — The Barnes-Irwin Co. (Inc.), Phila- delphia, capitalized at $150,000, is owned by the Barnes-Ames Co., holding 51 per cent of the stock, and H. D. Irwin, Philadelphia. The composition of its directorate and officiary makes clear that it is man- aged in consonance with the general management of the Barnes group of firms. Julius H. Barnes is president, H. D. Irwin, first vice president, and George S. Jackson, Baltimore, second vice presi- dent. The company was organized in 1920 under the laws of Delaware. The Barnes-Jackson Co. (Inc.). — The Barnes- Jackson Co. (Inc.), Baltimore, Md., is also controlled by the Barnes- Ames Co. through a majority stock ownership. It is capitalized at $150,000, 49 per cent of its stock being owned by George S. Jackson, Baltimore. Its president is Julius H. Barnes, and its first and second vice presidents are, respectively, George S. Jackson and II, D. Irwin. It was organized in 1920 under the laws of Delaware. The Barnes-Piazseh Co. {Inc.). — The Barnes-Piazzek Co. (Inc.), Kansas City, which was bought out and ceased doing business Febru- ary 28, 1922, operated as gi-ain receivers and shippers of domestic gi-ain and as fobbers at Gulf ports. It was owned by the Barnes- Ames Co, in the amount of 51 per cent of stock, D. F, Piazzek held 30 per ' This company's business and assets were recently sold to the Nye-Schneider-JenJss Co., of Chicago, and it ceased doing business Feb. 28, 1922. CONTROL AND INTERRELATIONS. 47 cent and the remainder was held by P. P. Allen and O. T. Cook. Julms H. Barnes was its president, and D. F. Piazzek, vice president. The company was organized under the laws of Delaware in 1920. It operated a branch office at St. Joseph, Mo. The Itasca Elevator Co. — The Itasca Elevator Co., Dulnth, op- erates a grain elevator. It is capitalized at $100,000 and is owned by the Barnes-Ames Co. in the amount of 77 per cent of the capital stock. The Neal Grain Co. — The Neal Grain Co., Omaha, is a grain merchandising firm with a capital stock of $25,000, 20 per cent of which is owned by the Barnes-Ames Co. Smyth^ Barnes & Co. {Ltd.). — Smyth, Barnes & Co. (Ltd.), Lon- don, has a capitalization of £50,000, 45 per cent of which is held by the Barnes-Ames Co. It buys and sells grain. The Zenith Grain Co. (Ltd.).— The Zenith Grain Co. (Ltd.), Win- nipeg, Canada, is a correspondent of the Barnes- Ames Co. The Nye & Jenks Grain Co. — The Nye & Jenks Grain Co. is an important grain exporting firm. This company and the following domestic grain comj^anies are subsidiaries of the Nye-Schneider- Fowler Co., of Fremont, Nebr., which is controlled under a five-year purchase option on 55 per cent of the stock with full voting power pending exercise of the option by Julius H. Barnes, president and large stockholder of the Barnes- Ames Co., Duluth, Minn,; Trans- Atlantic Brokerage & Export Co. (Inc.), New York; Rialto Elevator Co., Milwaukee, Wis. ; Independent Grain & Lumber Co., Mason City, Iowa; Nye-Schneider-Fowler Grain Co., 0«maha, Nebr.; Central Granaries Co., Lincoln, Nebr.; Nebraska Elevator Co., Lincoln, Nebr. ; Thresher Fuller Grain Co., Kansas City, Mo. ; Nye, Jenks & Co., Minneapolis, Minn.; Nye-Schneider-Jenks Co., Omaha, Nebr. The Nye & Jenks Grain Co. {Chicago). — The Nye & -^^^nks Grain Co., Chicago, 111., having a branch office at New York, deals in both do- mestic and export grain. In 1921 it exported 760,000 bushels of wheat. For the fiscal year ended June 30, 1921, however, its wheat export amounted to 2,920,000 bushels and its corn export to 1,952,000 bushels. It is capitalized at $250,000, all held by the Nye-Schneider-Fowler Co., Fremont, Nebr., except seven shares held by the directors to qualify them tor the office. These directors are F. L. Carey, Chi- cago, 111., who is also president of the company; L. N. Perrin, Chi- cago, 111., vice president; A. O. Mason, Chicago, 111., secretary; Julius H. Barnes, New York, president, Barnes-Ames Co., Duluth, Minn.; W. I. Beam, Chicago, 111., treasurer; Ealph Van Vechten, Chicago, 111.; Charles R. Bostwick, Fremont, Nebr. The company is organized under the laws of Illinois. Hansen Produce Co. (Inc.). — Hansen Produce Co. (Inc.), New York, is an exporter and dealer of grain and feeding stuffs. In 1921 it exported 4,976.000 bushels of wheat. Its total export of other grains for fiscal year ended June 30, 1921, was larger than that of any other firm, corn amounting to 14,885,000 bushels, rye to 11,617,000 bushels, oats to 1,877,000 bushels, and barley to 495,000 bushels. It is capitalized at J?? 1 ,250,000. Of the 12,500 shares. Axel Hansen, Kew Gardens, Long Island ,N. Y., president and treasurer, owns 2,475 shares and Ericlcpon & Christensen, Esbjerg, Denmark, 9,925 shares. The company owns the entire capital stock ($100,000) 48 METHODS AND OPERATIONS OF EXPORTERS. of the Universal Commission Co., Winnipeg?, a branch house, and the entire capital stock ($15,000) of the W. B, Wheeler Corporation, New York. Kerr, Gifford & Co. (Inc.). — Kerr, Gifford & Co. (Inc.), Port- land, Oreg., capitalized at $385,000, exported in 1921, 12,200,000 bushels of wheat. It was or^^anized under the laws of Orej^on in 1917. Peter Kerr, Portland, president of the company, holds the majority of the stock. The firm both mills and does a general mer- chandising business in grain, flour, feed, and cereals. It has branches at Seattle, Spokane, and Alalia Walla, Wash.; San Francisco, Calif.; Lewiston and Boise, Idaho ; and La Grande, Pendleton, and Eugene, Oreg. It owns the Diamond Flour Mills Co., The Dalles, Oreg. ; the Merchants Warehouse Co., Portland, Oreg., operating terminal docks; and the Kerr, Gifford Warehouse Co., Portland, Oreg., operat- ing country warehouses. C. F. & G. W. Eddy (Inc.).— C. F. & G. W. Eddy (Inc.), Boston, Mass., merchandises hay and grain and exports grain. In addition to the 11,000,000 bushels of wheat exported in 1921 it exported more than 2,000,000 bushels of other grain. George W. Eddy, president, Clinton L. Eddy, treasurer, and B. M. C. Eddy, one of the directors, hold practically all the stock. It was organized under the laws of Massachusetts in 1895. The Grain Growers Export Co. (Inc.). — The Grain Growers Export Co. (Inc.), New York, capital stock $390,000, is engaged solely in the exportation of grain. In 1921 it exported 9,600,000 bushels of wheat besides nearly 6,000,000 bushels of corn, oats, bar- ley, and rye. Its president is Thomas A. Crerar, Winnipeg, who holds 3,500 shares of its capital for the account of the United Grain Growers (Ltd.), Winnipeg. The remaining 400 shares are held by J. J. O'Donohoe, New York. The company was organized under the laws of New York in 1917. The Melady Grain Co. — The Melady Grain Co., New York, is a partnership organized January 1, 1921. It is an exporter of grain, principally wheat. In 1921 it exported 8,369,000 bushels of wheat and over 500,000 bushels of rye. The partners, John Melady and W. F. Kosar, New York, own interests in the firm of 75 and 25 per cent, respectively. Wm. H. Muller & Co. (Inc.).— Wm. H. Muller & Co. (Inc.), New York, handles grain, minerals, and metals. In 1921 it exported 8,215,000 bushels of wheat, 11,402,000 bushels of corn, and 2,306,000 bushels of other grains. It is capitalized at $25,000, all of its stock being held by W. H. Muller & Co., The Hague, Netherlands, which in turn has offices in the principal receiving grain markets in the world. It was organized under the laws of New York early in 1920. The Norris Grain companies. — The Norris group of grain firms consists of the Norris Grain Co., Chicago, 111. ; the Norris Grain Co., New York, N. Y, ; and the Norris Grain Co., Kansas City, Mo. In 1921 this group exported 8,137,000 bushels of wheat and 480,000 bush- els of rye and corn. The Norris Grain Co. (Chicago). — The Norris Grain Co., Chicago, merchandises and exports grain. It is capitalized at $1,000,000; CONTROL AND INTERRELATIONS. 49 James Norris, Chicago, president, holding 9,362 shares; C. C. Fields, Winnipeg, vice president, 518 shares; and Eobert J. Hanley, Chicago, 111., secretary and assistant treasurer, the remaining 120 shares. These three officers of the company are its directors. It was organ- ized in 1908 under the laws of Illinois. The N orris Grain Co. {Neio York). — The Xorris Grain Co., New York, is the agent of the XoitIs Grain Co., Chicago, its sole business being that of exporting grain. Its capitalization is nominal — $5,000— the stock being held by the Norris Grain Co., Chicago. Walter Trappe, Xew York, president, and Eobert J. Hanley, Chi- cago, treasurer, are its directors. It was organized in 1916 under the laws of Xew York. The N orris Grain Co. {Kansas City., Mo.). — The Norris Grain Co., Kansas City, Mo., handles grain. It has a branch at Wichita, Kans. It is capitalized at $1,000,000 ; James Xorris, president, holding about 62 per cent ; Fred C. Hoose, Kansas City, vice president, 29 per cent ; and other officers and directors holding the remaining shares. It was organized in 1914 under the laws of Missouri. The Northern Grain & Warehouse Co. — The Northern Grain & Warehouse Co., Portland, Oreg., is a grain merchandising and ex- porting firm, having branch offices at Seattle and Spokane, Wash., Helena, Mont., and San Francisco and Los Angeles, Calif. In 1921 it exported, roundly, 6,000.000 bushels of wheat. It is capitalized at $1,200,000. A. Cohn, president, together with members of the Cohn family, hold above one-third of the capital. The company was organized under the laws of Oregon in 1909. E. A. Strauss & Co. (Inc.), New York (see below), capitalized at $200,000, is jointly owned by this company and Strauss & Co. (Ltd.), London. The Zaring Grain Co., American Falls, Idaho, owner of grain warehouses, capitalized at $15,000, is 50 per cent owned by this company. The Cereal Grading Co., Minneapolis, Minn., is a grain' merchant with terminal elevators for buying, storing, cleaning, selling, and shipping grain. It is capitalized at $10,000, 74 per cent being held by the Northern Grain & Warehouse Co. E. A. Strauss & Co. (Ixc.).— E. A. Strauss«S: Co. (Inc.), New York, exports grain and malt. In 1921 it exported, roundly, 8,000,000 bushels of wheat. It is capitalized at $200,000. It is a subsidiary jointly of the Northern Grain & Warehouse Co., Portland, Oreg., and Strauss & Co. (Ltd.), London. Of its 2,000 shares the former company holds 944 ; A. Cohn, president of both the E. A. Strauss & Co. (Inc.), and the Northern Grain & Warehouse Co., 1 share; and James P. Livingston, San Francisco, first vice president and director of E. A. Strauss & Co. (Inc.), 55 shares; Strauss & Co. (Ltd.) holds 948 shares ; E. A. Strauss, London, chairman of the board of direc- tors of the E. A. Strauss & Co. (Inc.), 1 share; Samuel K. Thorpe, London, second vice president and director, 1 share ; and A. H. Hurst, New York, vice president and director, 50 shares. It was organized in 1919 under the laws of Delaware. C. B. Fox Co. (Inc.).— C. B. Fox Co. (Inc.), New Orleans, La., exports wheat and other grain. Its wheat export in 1921 was 7,939,000 bushels and its corn 4,011,000 bushels. It is capitalized at $25,000, C. B. Fox, president, holding over 99 per cent, and H. L. 50 METHODS AND OPERATIONS OF EXPORTERS. Daunoy, New Orleans, vice president, and W. B. Fox, New Orleans, secretary-treasurer, holdino^ the remainder. It was or23.8 Per cent. 34.0 22.7 154.3 65.9 125.3 49.4 260.0 13.4 Per cent. 28.8 17.9 35.8 54.0 14.4 28.4 38.9 17.2 Per cent. 28.2 14.6 >19.9 48.0 15.3 33.0 36.2 17.9 1920. 1 Per cent. 26.3 65.0 131.0 91.0 48.9 120.2 Per cent. 22.3 66.3 129.1 95.2 56.4 1 1.34. 3 Per cent. 16.5 30.1 19.4 25.0 15.1 '6.1 Per cent. 14.6 2. .. . 2 30.6 3 3 18.5 4. 4 25.9 5 5 16.6 6 6 173.1 Average 8 38.3 33.6 19.9 18.0 Average 38.5 31.0 27.3 22.9 ■Loss. INVESTMENT AND EARNINGS. 75 An examination was made of the records of 6 important fobbers for 1920 and 8 for 1921. The individual results for one company hav- ing: a small investment were omitted from the above table for 1920 because they would be misleading. In 1920 the range of return on the stockholders' investment was from a loss of 31 per cent to a profit of 91 per cent. Two com- panies showed a loss and two a profit in excess of 50 per cent. While the individual profits were large they were not as large as for exporters. The average for all companies was a little over 38 per cent. When the gains and losses from future trading were ex- cluded the range was from a loss of 134 per cent to a profit of 95 per cent. Two companies showed a loss and three a profit of over 50 per cent, while the average was almost 34 per cent. The fobbing business was more profitable than the exporting busi- ness in 1921. Only one company showed a loss on the stockholders' investment when the profits and losses on operations in futures were included. The range for individual companies was from a loss of 24 per cent to a profit of 286 per cent. All of the companies showing a profit made in excess of 27 per cent and the average for all com- panies was a little over 38 per cent. ^Vhen the profits and losses from future trading were eliminated, two companies showed a loss, two increased earnings, and the profits for other companies were smaller than the earnings, including the results from transactions in futures. The average for all companies Avas about 31 per cent. The average for all companies, excluding the losses and gains from future trading, was 34 per cent for 1920 as compared with nearly 31 per cent in 1921. The rate of return on the total funds employed in the grain busi- ness was larger for most companies in 1921 than in 1920. One com- pany showed a loss on the combined results in 1921. The range, including the loss or gain on futures, was from a loss of about 7 per cent to a gain of 54 per cent, with an average of a little over 27 per cent. The results, excluding future gains and losses, were some- what lower. Two companies showed a loss and the range for all companies was from a loss of about 20 per cent to a profit of almost 48 per cent, with an average of almost 23 per cent. In 1920 two of the six companies showed a loss, including the loss or gain on futures, and the remaining four substantial or large profits. The range was from a loss of somewhat more than 9 per cent to a profit of about 30 per cent, with an average of almost 20 per cent. When the profits and losses on futures were excluded the results for all but one company were only slightly changed and the average was 18 per cent. Section 9. Earnings from the export grain business. Total, earnings by grains. — As already explained (see p. 67), the Commission has allocated general and other expenses not charged directly by the companies to the different grains on the basis of the quantities sold. The earnings by grains are presented separately for companies engaged principally in exporting and for concerns whose business was largely fobbing. The results for 1921 include a much larger volume of business than those for 1920. This was due to the fact that the United States Grain Corporation (see Cliap. VII) 76 METHODS AND OPERATIONS OF EXPORTERS. handled the bulk of the wheat sold for export and that foreign gov- ernmental agencies exported the grain prior to June 30, 1920. Wheat exceeded all other grains both in volume and value of sales, the quantity being practically 73 per cent of the total and the value 80 per cent of the total in 1920, Rye was second both in volume and value, the quantity and value each being approximately 15 per cent of the total ; while oats was third, with 5 per cent of the total quan- tity and 3 per cent of the total value. These three grains supplied 91 per cent of the total quantity and 94 per cent of the value in 1920. In 1921 about 63 per cent of the total quantity of all grains consisted of wheat, with a value of over 75 per cent of the total. Corn was second in quantity and value, with 25 per cent of the quantity and 14 per cent of the value. Rye was third in quantity and value, with not quite 6 per cent of the total quantity and slightly more than 6 per cent of the value. These three grains furnished 94 per cent of the total quantity of all grains exported and 96 per cent of the value. (See p. 14.) Total earnings for exporters. — The following table shows by grains, the quantity, the net sales value, the cost of sales, general ex- pense, the net trading profit excluding futures, the profit or loss from transactions in futures, and the net profit including futures for com- panies engaged almost entirely in exporting grain. Table 28. — Earnings for grain exporters as computed by the conwvission, by grains, 1920 and 1921. EARNINGS FOR 1920. Item. Wheat. Rye. Oats. Barley. Bushels sold 41,881,000 35,929,417 14, 319, 552 5,398,754 Net sales $114,076,956.03 110,326,474.82 $73, 705, 734. 81 72, 374, 564. 00 $12,812,598.88 13, 078, 560. 07 $8,017,884.55 7, 959, 028. 53 Cost of sales Gross trading profit General expense 3, 750, 481. 21 431, 846. 29 1,331,170.81 367, 968. 06 1 265, 961. 19 140, 883. 96 58, 856. 02 98, 310. 87 Net trading profit Futures 3,318,634.92 1 72, 264. 40 963, 204. 75 503,217.55 1 406, 845. 15 72, 686. 67 1 39, 454. 85 49, 467. 15 Total profit 3,246,370.52 1,466,422.30 1 334, 158. 48 10, 012. 30 Item. Com. Other grains. Total grain income. Bushels sold 3, 198, 293 234.365 100,961,381 Net sales $4,347,637.11 4,267,064.80 $383, 293. 89 384, 829. 17 $213, 344, 105. 27 Cost of sales 208, 390, 521. 39 80, 572. 31 43,164.41 I 1, 53.5. 28 1,400.42 4, 953, 583. 88 General expense 1, 083, 572. 01 Net trading profit 37, 407. 90 1 83, 466. 35 12,935.70 257.84 3,870,011.87 469, 898. 46 Total profit 146,058.45 12,677.86 4,339,910.33 INVESTMENT AND EARNINGS. 77 Table 28. — Earnings for grain exporters as computed b|/ the commission, ly grains, 1920 and 1921 — Continued. EARNINGS FOR 1921. Item. Wheat. Rye. Oats. Barley. Bushels sold 174,058,292 29,568,647 6, 05S, 887 5,243,035 $349,596,416.11 347,618,847.08 $56,234,82.5.78 55, 823, 490. 20 $4, 150, 216. 92 4,066,511.02 $4,511,283.12 Cost of sales 4,447,035.73 Gross trading profit 1, 777, 569. 03 1,354,776.69 411,335.58 231,494.71 83, 705. 90 42, 970. 67 64, 247. 39 61,896.25 Net trading profit 422, 792. 34 4, 163, 012. 09 179, 840. 87 1 13, 375. 66 40, V:?5. 23 126,422.73 2,351.14 48,574.31 Total profit 4, 585, 804. 43 166, 465. 21 167, 157. 96 50,925.45 Item. Corn. Other grains. Total grain income. 43,612,985 576, 987 259,118,863 $34, 890, 356. 02 35, 152, 658. 22 $980, 603. 82 891, 482. 75 $450,363,701.77 Cost of sales '. 448,200,025.00 Gross trading profit 1262,302.20 290, 893. 96 89, 121. 07 3,617.82 2,163,676.77 1,985,650.10 1 5.53, 196. 16 612,817.02 85, .503. 25 1, 590. 42 178,026.67 Futures 4,939,040.91 Total profit 59,020.86 87, 093. 67 5,117,067.58 > Loss. As already stated, the commission has considered notes payable as part of the money used in the grain business and has included in the total profit the interest paid on borrowed money. The method of allocating general administrative and other expenses to the differ- ent grains has already been explained. (See p. 67.) Other grains in- clude buckwheat, flax, milo, and kaffir corn. The net trading profit shows the actual results of the merchandising operations and does not include the loss or gain from transactions in futures which are shown under futures. In addition to the profit or loss on merchandising operations in grain there were various other items of income, as income from out- side investments and commissions on business done for others, which were not derived from the grain business and were not allocated to specific grains. There were also various items of expense which could not be allocated to specific grains. The net income for the company is obtained by adding this other income and deducting these items of expense from the total profit for all grains combined. In 1920 there was a loss in the merchandising operations for oats, barley, and other grains, and from future transactions in wheat and corn. There was a net trading profit for wheat, rye, and corn and a gain from future trading for rye, oats, and barley. The combined net earnings from the merchandising transactions for all grains amounted to a little over $3,870,000 in 1920, the net gain from futures was nearly $470,000, and the total profit including futures was almost $4,340,000. 78 METHODS AND OPERATIONS OF EXPORTERS. In 1921 the volume of sales of wheat, corn, and all grains was much large)' than in 1920. Corn was the only grain showing a loss for net trading operations and rye the only grain showing a hjss for trans- actions in futures. The merchandising profits were small for all grains, while the gains from futui'es were large for all grains except rye. There was a total profit for each gi^ain, but the earnings were much smaller, when the volume of the sales are considered, than for the preceding year. Total earnings for fobbers. — The following table shows by grains, the quantity, the net sales value, the cost of sales, general ex- pense, the net trading profit excluding futures, the profit or loss from transactions in futures, and the net profit including futures, for com- panies engaged largely or entirely in fobbing grain: Table 29. -Earnings for grain fobhers a-s computed by the commission, hy grains, 1920 and 1921. EARNINGS FOR 1920. Item. Bushels sold . Net sales Cost of sales. Gross trading profit . General expense Net trading profit. Futures Total profit. Wheat. 67, 340, 371 $160, 046, 319. 07 155, .W4, 202. 94 4,.502, 116. 13 909, 543. 83 3,592,572.30 50, 452. 81 3,643,025.11 Rye. 1,092,873 $2,027,936.66 1,886,275.19 141,661.4,7 15,733.11 125,928.36 5,978.05 131,906.41 Oats. 9,067,181 $7,895,906.53 7,923,882.32 > 27, 975. 79 128,571.91 1 156, 547. 70 244, 819. 00 Barley. $1,151,800.53 1,120,172.26 31,628.27 9,050.90 22, .577. 37 11,042.80 21,. '34. 57 Item. Bushels sold. Net sales Cost of sales . Gross trading profit. General expense Net trading profit . Futures Total profit. Corn. 5,986,327 Other grains. 357,016 $8,952,8.53.27 9,169,966.20 1 217, 132. 93 79,568.53 1296,701.46 127,781.05 1 168,920.41 $548,249.92 527,542.39 20, 707. 53 4,990.86 15, 716. 67 15,716.67 Total grain income. 84,582,305 $180,623,065.98 176,172,061.30 4,451,004.68 1,147,459.14- 3,303,54.5.54 427,988.11 3,731,533.65 EARNINGS FOR 1921. Item. Wheat. Rye. Oats. Barley. 103,651,619 1,099,237 14,105,699 394,669 .S222, 149, 277. 89 216, 160, 816. 25 $2,082,544.79 1,783,9.58.95 $8,024,423.96 8,391,144.74 $374,206.10 407,326.50 Gross trading profit .5,988,461.64 1,088,607.29 298, 58.5. 84 10, 585. 38 1366,720.78 131.448.32 133,120.40 5,914.70 Net trading profit Futures 4, 899, 8.54. 35 264,599.54 288,000.46 111,239.99 I 498, 169. 10 285, 100. 87 139,035.10 1,898.76 Total profit 5,164,453.89 276,760.47 1213,068.23 1 137.136.34 IT^VESTMENT AND EARNINGS. 79 Table 29. — Earnings for grain fobher.t as computed by the commission, by grains, 1920 and 1921 — Continued. EARNINGS FOR 1921— Continued. Item. Com. Other grains. Total grain income. 18,162,303 327,360 137,740,887 $14,920,231.66 14,981,126.79 $369,989.27 404,685.85 $247,920,673.67 Cost of sales 242,129,0.59.08 1 60, 895. 13 177,9-39.81 134,696.58 5, 263. 74 5,791,614.59 General expense 1,419,779.24 1238,854.94 340,853.67 139,960.32 4,371,835.35 881,212.8.5 Total profit 101,998.73 139,%0,32 5,253,048.20 I Loss. In 1920 the cost of sales was greater than the sales realization for oats and corn, consequently a loss is shown for the net trading profit. In the case of oats the gains from future trading exceeded the net trading loss, hence a profit is shown where futures are included. In 1921 the net trading profits were large for wheat and rye and mod- erate for corn and other grains, while losses were shown for oats and barley. A profit was shown for transactions in futures for each grain excepting rye. AVhen gains and losses on futures were included a profit was shown for corn. In 1921 the volume of sales of wheat, oats, corn, and for all grains was much larger than in 1920. The merchandising profits on all grains were somewhat larger in 1921 than in 1920, but they did not increase in the same proportion as the volume of sales; thus the in- crease in quantity of all grains sold was 62 per cent and that for the total profits 32 per cent. When the profits and losses from future transactions were included the total profit for 1921 was 40 per cent larger than 1920. Section 10. Net profit per bushel by gn^ains. Net profit on wheat for exporters. — As already stated, the Com- mission distributed general, administrative, and other expenses not charged directly to the diffeient grains bj^ the companies. (See p. 67.) In this section the net profit per bushel for the principal grains exported or sold f. o. b. vessel for export is presented. This information is shown separately by companies, which are designated by numbers in order not to disclose their identity. The following table shows the net sales realization, the cost of sales, the gross trad- ing profit, general expenses, and net trading profit, the profit or loss on futures, and the net profit or loss including futures of exporters^ for 1920 and 1921 : 80 METHODS AND OPERATIONS OF EXPORTERS. Table 30. — Sales realization, cost of sales, and net profit per bushel for wheat exported, by companies, 1920 and 1921. Year and com- pany. Not sales realization. Cost of sales. Gross trading profit. Deduct general expense. Net trading profit. Profit or loss on futures. Total net profit in- cluding futures. 1921. 1 $2. 576 1.384 2.385 1.52 2.435 1.922 1.72 2.715 1.461 2.09 2. 528 1.542 1.586 2.378 1.468 2.61 1.563 2.008 $2. 608 1.354 2.35 1.59 2.417 1.946 1.714 2.715 1..508 2.072 2.512 1.862 1.582 2.329 1.469 2.644 1.60 1.973 $0,068 .03 .035 >.07 .018 J. 024 .006 $0. 018 .012 .004 .006 .011 .006 .004 .005 , .009 .025 .01 .003 .005 .009 .007 .038 .023 .007 $0.05 .018 .031 1.076 .007 1.03 .002 1.005 1.056 1.007 .006 1.323 1.001 .04 1.008 1.072 1.06 .028 $0,007 .004 1.01 .094 .024 .064 .009 .011 .123 .002 .015 .004 .003 1.002 .017 .001 .03 .009 $0,057 2 .022 3 .021 4 .018 5 .031 6 .034 7 .011 8 .006 9 1.047 .018 .016 1.32 .004 .049 1.001 1.034 1.037 .035 .067 10 1.005 11 .021 12 1.319 13 .002 14 .038 15 .009 16 1.071 17 1.03 18 .037 Average 2.009 1.998 .011 .008 .003 .024 .027 1920. 1 3.03 2.732 2.691 2.904 2.842 2.622 2.624 2.846 2.298 2.718 2.826 2.698 2.592 2.721 2.96 2.668 2.446 2. .533 2.845 2.555 2.578 2.827 2.268 2.641 2.753 2.636 2.519 2.65 .07 .064 .245 .371 1.003 .067 .046 .019 .03 .077 .073 .062 .073 .071 .085 .021 .007 .015 .004 .01 .009 .01 .02 .009 .009 .008 .03 .019 1.015 .043 .238 .356 1.007 .057 .037 .009 .01 .068 .064 .054 .043 .052 .017 1.007 .002 2 .036 3 .238 4 .356 5 .006 i.COl .051 1.003 1.001 6 .056 7 .088 8 .006 9 .01 10 1.032 1.01 1.011 .036 11 .054 12 .043 13 .043 14...!.! .021 .073 Average 2.724 2.635 .089 .01 .079 1.002 .077 1 Loss. There was a wide variation in the net sales realization per bushel for different companies. In 1920 the range was from a minimum of $2.30 to a maximum of $3.03 and in 1921 from $1.38 to $2.72 per bushel. This wide difference for different companies was largely due to the period of the year in which a particular company made the bulk of its sales. Companies making a large proportion of their sales early in 1920, for example, show a very high average, while those making the bulk of their shipments in the latter part of the year show a much lower average. There was a very wide range in the gross trading profit. In 1920 one company showed a slight loss, while two other companies showed very large margins, amounting to $0.37 per bushel in one case and to almost $0.25 per bushel in the other. In 1921, on the other hand, 7 out of 18 companies showed a loss, one showed no gross profit, while the gross profit for the remaining companies ranged from two-tenths of a cent to almost $0.07 per bushel. The net trading profit, i. e., the net profit before deducting gains or losses on futures, w^as generally quite large in 1920. Two of the 14 exporters showed slight losses while the profit of the remaining companies ranged from almost $0.01 to nearly $0.36 per bushel and INVESTMENT AND EARNINGS. 81 the average for all companies was almost $0.08 per bushel. In 1921 the net trading profit was much smaller. Ten out of 18 companies showed a loss ranging from one-tenth of a cent to $0,323 per bushel, while the remaining concerns showed profits per bushel ranging from two-tenths of one cent to $0.05 per bushel. The average for all com- panies was three-tenths of a cent per bushel. The net profit per bushel including future gains and losses was slightly smaller in 1920 than the net trading profit, while in 1921 all but two companies showed profits from their transactions in fu- tures. In 1920 the average results for all companies was a small loss on futures while in 1921 the average profit was $0,024 per bushel. Net profit on wheat for fobbers. — The companies engaged en- tirely or principally in fobbing show considerably lower per bushel averages for the net sales realization in 1920 than was the case for exporters; while in the following year the average for fobbers was higher. The following table shows the net sales realization, the cost of sales, the gross trading profit, general expenses, the net trading profit, the profit on futures, and the net trading profit including futures, of fobbers for 1920 and 1921. Table 31. — Sales realization, cost of sales, and net profit pet bushel for icheat fobbed, by companies, 1920 and 1921. Y ear and com- pany. Net sales realization. Cost of sales. Gross trading profit. Deduct general expense. Net trading profit. Profit or loss on futures. Total net profit in- cluding futures. 1.. 1921. $2.15 2.29 2.237 2.193 2.33S 2.403 1.501 $2,085 2.24 2.273 2.089 2.308 2.323 1.471 $0. 065 .05 1.036 .104 .03 .08 .03 $0,009 .012 .018 .01 .011 .023 .009 $0,056 .038 1. 054 .094 .019 .057 .021 I $0,004 .003 .072 .001 .009 1.011 .001 $0,052 2 .041 3 .018 4 .095 5 .028 6 .046 7 .022 Average 1920. 2.143 2.085 .058 .011 .047 .003 .05 1 2.373 2.076 2.64 2.493 2. 138 2.89 2.238 2.296 1.993 2.661 2.431 2.095 2.832 2.252 .077 .0,83 1.021 .062 .043 .058 1.014 .015 .014 .024 .01 .ens .01 .012 .062 .069 1. 045 .052 .025 1.048 .026 .062 2 .069 3 1.045 4 .052 5 .025 6 .004 .067 .052 7..,- .041 Average 2.377 2.311 .066 .013 .053 .001 .054 The average net sales realization ranged from about $2.08 per bushel to $2.89 per bushel in 1920, with an average for the seven companies of almost $2.38 per bushel. In 1921 the minimum aver- age price for a particular company was $1.50 per bushel and the maximum about $2.40, while the average for the seven companies was $2.14 per bushel. Two out of seven companies in 1920 and one company in 1921 showed cost of sales in excess of the net sales realization, while the gross trading profit for the remaining companies ranged from a little over $0.04 per bushel to somewhat more than $0.08 per bushel in 1920 and from $0.03 to a little over $0.10 per bushel in 1921. 82 METHODS AND OPERATIONS OF EXPORTERS. The g:eneral expenses varied considerably. In 1920 the smallest amount was $0.01 per bushel and the largest $0,024, while in 1921, due to a much larger volume of business, the range was from a mini- mum of 0.9 of a cent to $0,023 per bushel. Two companies in 1920 and one in 1921 showed a net trading loss. For the remaining concerns the net trading profit ranged from $0,025 per bushel to a maximum of $0,069 in 1920. The average for the seven companies was somewhat more than $0.05 in 1920 and not quite $0.05 per bushel in 1921, The range for individual fob- bers was much smaller than for exporters. In 1920 only two companies showed profits on futures. In one case this profit was large, almost $0.07 per bushel, and it changed the results for net trading from a loss to a profit. In 1921 two com- panies showed a loss on futures while the other five showed net gains on future transactions, but there was only one case in which the per bushel profit on future operations was substantial. The average net profit, including futures, for all seven companies was slightly higher than the net trading profit in both years. Net profit on rye for exporters, — Each company exporting wheat also exported some rye in both 1920 and 1921, The average net sales realization for all companies was $2.05 per bushel in 1920 and $1.90 in 1921, The average gross trading margin was 3.7 cents per bushel in 1920 and only 1.4 cents per bushel in 1921, The net trad- ing profit, which shows the results exclusive of the profits or losses from futures, was 2.7 cents per bushel in 1920 and only 0.6 of a cent per bushel in 1921, In 1920 the average profit per bushel for all companies was increased 1.4 cents per bushel when futures were included, while the hedging profits and losses for all companies balanced in 1921. The following table shows for rye exports the net sales realization, the cost of sales, the gross trading profit, the general expense, the net trading profit, the profit or loss from futuTes, and the total net profit including futures, per bushel, by companies, for 1920 and 1921 : Table 32. — Sales realization, cost of sales, and net profit per hnshel for rye exported, by companies, 1920 and 1921. Y ear and com- pany. Net sales realization. Cost of sales. Gross trading profit. Deduct general expense. Net trading profit. Profit or loss on futures. Total net profit in- cluding futures. 1. 1921. $1,874 1.129 1.8.39 1.405 2.004 2.092 1. .575 2.243 1,49 1.762 2.016 1.452 1.57 1.661 1.384 1,887 1,809 1.62 $1,913 1.124 1.896 1.243 2.044 2.046 1.594 2.222 1.549 1.738 2.00 1.42 1,561 1,598 1.35 2,247 1,75 1,599 1 $0,039 .005 I. 0.57 .162 1.04 .046 1.019 .022 1.0.59 .024 .016 ,032 .009 .063 .034 1.36 .059 .021 $0,017 .012 .005 .005 .011 .006 .004 .006 .008 .024 .01 ,003 .005 ,009 ,008 .039 .023 ,008 1 $0. 0.56 1. 007 1.062 .157 1.051 .04 1. 023 .016 1.067 $0,006 .003 .052 1 $0. 05 2 1.004 3 1.01 4 . .157 5 1.005 1.004 1.003 1.004 .117 1.056 6 .036 7 1.026 8 .012 9 .05 10 .. 11 .006 .029 .004 ,054 ,026 1.399 .036 ,013 1.112 .006 .001 1.044 .032 1.087 .019 .018 1,106 12 ,035 13 .005 14 .01 15 .058 16 1,486 17 .055 18 .031 Average — 1.902 1.888 .014 .008 .006 .006 INVESTMENT AND EARNINGS. S3 Table 32. — Sales realisation, co-ff of sales, etc. — Continnecl. Year and com- pany. Net sales realization. Cost of sales. Gross trading profit. Deduct general expense. Net trading profit. Profit or loss on futures. Total net profit in- cluding futures. 1.. 1920. $2. 443 1.906 2.014 1.99 2.128 2.089 2.304 2.465 1.697 2.198 2.12 2.11 2.336 2.223 $2. 382 1.931 1.91 1. 959 2.094 2.068 2.379 2.418 1.6.57 2.148 2. 082 2.081 2.214 2.188 $0. 061 1.025 .104 .031 .034 .021 1.075 .047 .04 .05 .038 .029 .122 .035 $0. 021 .007 .015 .007 .004 .01 .009 .011 .02 .009 .009 .009 .029 .018 $0.04 1.032 .089 .024 .03 .011 1.084 .036 .02 .041 .029 .02 .093 .017 I $n. 003 .029 .008 .01 1.007 1.006 .022 $0,037 2 1.003 3 .097 4 .0.34 5 .023 6 .005 7 1.062 8 .036 9 .02 1.019 1.014 .01 1. 051 .033 .04 10 .022 11 .015 12 .06 13 .042 14 .05 Average 2.051 2.014 .037 .01 .027 .014 .041 1 Loss. There was a wide varriation in the net sales realization on rye for individual companies in both years. In 1920 the minimum sales real- ization for an individual company was about $1.70 per bushel and the maximum almost $2.47 per bushel, while in 1921 the lowest net sales realization was only $1.13 and the highest $2.24 per bushel. The gross trading profit on rye ranged from a loss of 7.5 cents per bushel to :i profit of a little over $0.12 in 1920, and from a loss of $0.36 to a profit of a little over $0.16 per bushel in 1921. In 1920, 2 companies out of 14 showed a loss when the profit or loss on transactions in futures were excluded, while in 1921 there vi^ere 7 companies which showed a loss and 1 that showed no profit out of the total of 18 firms. The range for individual companies was from a loss of 8.4 cents to a profit of 9.3 cents per bushel in 1920, and from a loss of nearly $0.40 per bushel to a profit of almost $0.16 per bushel in 1921. In 1920 the inclusion of gains and losses from futures generally increased the margin of profit or reduced the per bushel loss somewhat, but, as already pointed out, in 1921 the profits and losses of all companies combined were not changed by the inclusion of such gains or losses. Net profit on rye for fobbers. — There were only 4 of tlie 7 com- panies that sold wheat f . o.b. vessel for export in 1920 and 6 in 1921 that sold any rye for export. The average sales realization for fobbers was considerably lower than the average sales realization for exporters in 1020 and only slightly lower in 1921. In 1920 the average was almost $1.86 per bushel for fobbers as compared with $2.05 per bu.shel for exporters; while in 1921 the difference was only 0.7 of a cent per bushel, the average for both fobbers and exporters was about $1.90 per bushel. The average gross trading profit per bushel was slightly more than $0.13 for fobbers in 1920 and $0.27 in 1921. Tlie average net trading profit was likewise large in both years. In 1920 it was approximately $0,12 per bushel while in 1921 it was slightly more than $0.26 per bushel. The profits or losses on futures did not materially affect the results in either year. In 1920 the profits, including futures, were $0.12 per bushel and in 1921 a little over $0.25 per bushel. 106205°— 22 8 84 METHODS AND OPEEATTONS OF EXPORTERS. The followinn^ table shows, for f()l)bers, the net sales realization, the cost of sales, the gross trading profit, the general expense, the net trading profit, the profit or loss on futures, and the total net profit including futures, per bushel on rya for 1920 and 1921: Table 33. — Sales reaUzation, cost of sales, and net profit per bushel for rye fobbed, by companies, 1020 and 1921. Year and com- pany. Net sales realization. Cost of sales. Gross trading profit. Deduct general expense. Net trading profit. Profit or loss on futures. Total net profit in- cluding futures. 1921. 1 J1.913 1.6i7 1. 60.5 1.665 2.230 1.606 $1. 6C7 1. 623 1. 457 1. 651 2.127 1.991 $0. 306 .024 .148 .014 .103 1 . 385 $0,008 .018 .009 .013 .023 .009 JO. 208 .006 .139 .001 .080 1.394 1 $0,016 .073 $0 282 2 079 3 139 4 001 080 6 ' 394 Average 1.895 1.623 .272 .010 . 262 1 1 . 010 .252 1920. 1 1.844 2.178 1. 034 1.930 1.7C6 2.102 1.350 1.846 .138 .076 1.316 .084 .015 .010 .018 .010 .123 .066 1.334 .074 .005 1.033 .335 128 2 033 3 .001 4 .074 Average 1.855 1.726 .129 .014 .115 .005 .120 1 Loss. In 1920 the minimum sales realization for an individual company was $1.03 and the maximum $2.18 per bushel, and in the following year the range was from $1.61 to $2.23 per bushel. One company in each year show .d a cost of sales in excess of its sales realization. In 1920 the gross trading profit ranged from a loss of almost $0.32 per bushel to a profit of about $0.14 per bushel, while in the following year the range was from a loss of approximately $0.39 to a profit of nearly $0.31 per bushel. The net trading profit showed a similar fluctuation for individual companies from a loss of about $0.33 per bushel to a profit of slightly more than $0.12 per bushel in 1920, and from a loss of a little over $0.39 to a profit of almost $0.30 per bushel in the following year. One company showed a very large profit on transactions in futures in 1920, amounting to over $0.33 per bushel, and in the following year another; company showed gains on futures of over $0.07 per bushel. For all companies combined there was a profit of only 0.5 of a cent per bushel on future operations in 1920 and a lo"s of $0.01 per bushel during the next year. Net profit on barley for exporters. — Eleven out of the 18 com- panies exporting wheat in 1921 also exported barley, while for 1920 12 of th'? 14 companies exporting wheat also exported barley. The average net sales realization per bushel for all companies was $0.86 in 1921 and $1,485 in 1920, but the average gross trading profit for all companies in 1921 Avas 1.2 cents per bushel as against 1.1 cents in 1920. The average net trading profit for all companies in 1921 was 0.1 of a cent per bushel as against a loss of 0.7 of a cent per bushel in 1920. For both years the average profit per bushel from futures for all companies amounted to 0.9 of a cent, giving a total net profit per bushel of 1 cent in 1921 and of only 0.2 of a cent per bushel in 1920. INVESTMENT AND EARNINGS. 85 The following? table shows for exporters of barley the net sales realization, the cost of sales, the g:ross trading profit, the «reneral expense, the net trading profit, the profit or loss from futures, and the total net profit including futures, per bushel, bv companies, for 1920 and 1921 : Table 34. -Sales realisation, cost of sales, and net profit per bushel for harley exported, iy companies, 1920 and 1921. Year and com- pany. Net sales realization. Cost of sales. Gross trading profit. Deduct general expense. Net trading profit. Profit or loss on futures. Total net profit in- cluding futures. 1.. 1921. $0,838 .689 .894 1.029 1.242 1.005 .697 .813 1.044 .777 .911 $0 <506 .683 .805 .904 1.335 1.154 .697 .773 1.01 .763 .887 $0,032 .006 .089 .125 1.093 1.149 $0,018 .012 .005 .006 .024 .005 .001 .008 .025 .005 .007 $0. 014 1.006 .084 .119 1.117 1 . 154 1. 001 .032 .009 .009 .017 $0,007 .001 .001 .036 .006 .016 $0. 021 2.. 1.005 3 .085 4 .1.55 5 1.111 6 1.138 7 1.004 n .01 .034 .014 .024 .032 9 .009 10 .009 11 , .0 6 .063 Arerage 1920. .86 .848 .012 .011 .001 .009 .01 1.. 1.389 1.744 1.388 1.53 1.243 1.205 1.361 2.097 3.061 1.722 1.481 l.r-9 1.353 1.593 1.428 1.492 1.298 1.186 1.337 1.8!2 2.96. 1.729 1.52 1.188 .036 .151 1.04 .038 !.055 .019 .021 .255 .096 1.007 1.039 1.109 .084 .021 .006 .016 .007 .004 .013 .009 .02 .009 .009 .009 1.048 .13 i.0'6 .022 1.062 .015 .011 .216 .076 1.016 1.018 1.118 .017 .015 1 .002 .223 .002 .002 1.031 2 .145 3 1.046 4 .02 5 .161 6 .017 7 .013 8 .246 9 .076 10 I . 023 1.039 11 1.018 12 .033 1.085 Average 1.485 1.474 .011 .018 1.007 .009 .002 'Loss. » Less than 0.05 of 1 per cent. The net sales realization for 1920 shows wide variations, from a minimum of $1.08 to a maximum of $3.06 per bushel. The range for 1921 was not so pronounced, extending from almost $0.70 to a little more than $1.24 per bushel. Of the 12 companies shown for 1920, 5 show gross trading losses, while for 1921 losses are shown for 2 companies. Net trading losses are indicated for 6 companies in 1920, the range for all companies being from an average loss of almost $0.12 per bushel to a gain of about $0.25 per bushel. For 1921 net trading losses were shown for 4 companies, the range for all companies being from an average loss of a little over $0.15 to an average gain of about $0.12 per bushel. For 1920, 8 of the 12 companies showed transactions in futures, and of this number only 2 had losses. Seven of the 11 companies in 1921 showed profits from operations in futures. P'or the total net profits, including futures, 5 companies showed losses in 1920, the range for this year being from an average loss of $0,085 to an average gain of almost $0.25 per bushel, while for 1921, 4 companies showed losses, the range for this year extending from an average loss of about $0.14 to an average gain of approximately $0.16 per bushel. 86 METHODS AND OPERATIONS OF EXPORTERS. Net PROFIT ON BARLEY FOR FOBBERS. — Of the 7 Companies engaged in wheat fobbing in 1920 and 1921, 4 fobbed barley in 1920 and 5 in 1921. Tlie average net sales realization per bushel for all com- panies was $1.56 in 1920 and almost $0.95 in 1921. The gross trad- ing profit averaged 4.3 cents per bushel in 1920, while 1921 showed an average loss of 8.4 cents per bushel. The net trading profit averaged 3.1 cents per bushel in 1920, and for 1921 an average loss per bushel of 9.9 cents was shown. After adding the profit or loss from futures the average profit was 2.9 cents for 1920 and the loss was 9.4 cents per bushel for 1921. The following table shows for fobbers the net sales realization, the cost of sales, the gross trading profit, the general expense, the net trading profit, the profit or loss from futures, and the total net profit including futures, per bushel on barley, by companies, for 1920 and 1921: Table 35. — Sales realization, cost of sales, and net profit per bushel for barley fobbed, by companies, 1920 and 1921. Year and com- pany. Net sales realization. Cost of sales. Gross trading profit. Deduct general expense. Net trading profit. Profit or loss on futures. Total net profit, in- cluding futures. 1921. 1 $0,612 1.112 1.61 1.002 .597 $0. 736 1.073 1.844 1.005 .59 1 $0. 124 .039 1.234 1.003 .007 $0,009 .011 .01 .008 .022 1 ?0. 133 .028 1.244 1.011 1.015 1 $0. 133 2 .C28 3 $0.01 1.2.34 4 1.011 6 .004 i.CU Average .948 1.032 1.084 .015 1.099 .005 1.094 1920. 1 1.475 1.807 1.479 1.06 1.418 1.729 1.458 1.213 .057 .078 .021 1.153 .015 .014 .01 .018 .042 .064 .011 1.171 i.«03 .039 2 .064 3 1.002 .009 4 1.171 Average 1.56 1.517 .043 .012 .031 1.002 .029 1 Loss. The net sales realization for barley fobbed in 1920 ranged from $1.06 per bushel to about $1.81 per bushel. In 1921 the range was more marked, extending from approximately $0.60 to $1.61 per bushel. The gross trading profit in 1920 ranged from a loss of 15.3 cents to a maximum profit of 7.8 cents per bushel. Three companies showed cost of sales in excess of the net sales realization in 1921. This gave for all companies a range in the gross trading profit from a loss of a little over $0.23 to a gain of almost $0.04 per bushel. The net trading profit for 1920 ranged from a loss, in the case of one company, of 17.1 cents per bushel, to a maximum profit of 6.4 cents per bushel. Only one company showed a net trading profit in 1921, the range for all companies extending from a loss of a little over $0.24 to a profit of not quite $0.03 per bushel. Two fobbers dealt in futures on barley in 1920, both shoAving losses, and in the following year two fobbers showed profits from futures. The total profits for 1920, including futures, ranged from a loss of 17.1 cents to a maximum gain of 6.4 cents per bushel. In 1921 only one company showed a profit on barley including futures, the INVESTMENT AND EARNINGS. 87 amount being 2.8 cents per bushel. The losses of the remaining companies ranged from 1.1 cents to 23.4 cents per bushel. Net profit on oats for exporters. — There were 18 companies that exported oats in 1920 and 11 companies in 1921. The average net realization from sales for all companies was about $0.90 per bushel in 1920 and about $0.69 in 1921. In 1920 a gross trading loss of 1.8 cents per bushel is indicated as the average for all companies, while for 1921 there was a gross trading profit of 1.4 cents per bushel. The average net trading loss for all companies in 1920 was 2.8 cents per bushel and the average net trading profit in 1921 was 0.7 of a cent per bushel. Future operations showed an average net gain for both years, which, when added to the net trading profits, resulted in a total net loss for all companies of 2.3 cents per bushel in 1920 and a total net profit of 2.8 cents per bushel in 1921. The following table shows for exporters, by companies, the net sales realization, cost of sales, gross trading profit, general expense, net trading profit, profit or loss on futures, and the total net profit including futures, .per bushel, for 1920 and 1921 : Table -36. -Sales realization, cost of sales, and net profit per bushel for oats ed' ported, by companies, 1920 and 1921. Year and com- pany. Net sales realization. Cost of sales. Gross trading profit. Deduct g«neral expense. Net trading profit. Profit or loss on futures. Total net profit in- cluding futures. 1.. 1921. $0. 623 .471 .504 1.029 .715 .922 .516 .50 .498 .542 .396 $0,638 .461 .423 .904 .678 .957 .532 .482 .469 .54 .457 1 $0,015 .01 .081 .125 .037 1.035 1.016 .018 .029 .002 1.061 $0,018 .012 .005 .006 .01 .006 .004 .009 .005 .006 .008 1 $0,033 1.002 .076 .119 .027 1.041 1.02 .009 .024 1.004 1.069 $0,006 .001 1.024 .036 .004 .031 1.042 .002 1.004 .017 .049 1 $0. 027 2 1.001 3 .052 4 .155 5 .031 6 1.01 7 1.062 S .011 9 .02 10 .013 11 '.02 Average 1920. .685 .671 .014 .007 .007 .021 .028 1.. .899 .829 .902 .859 .953 .955 .907 .935 .791 .857 .865 1.02 1.018 .898 .792 .916 .843 1.13 .95 .868 .911 .795 .849 .895 1.066 .972 .001 .037 1.014 .016 1.177 .005 .039 .024 1.004 .008 1.03 1.046 .046 .085 .021 .006 .015 .007 .003 .011 .01 .02 .009 .029 .019 .008 1.084 .016 1.02 .001 1.184 .002 .028 .014 1.024 1.001 1.059 1.065 .038 .017 1.003 1.002 1.0S7 .174 .009 1.029 1.067 2 .013 3 1.022 4 1.086 5 1.01 6 .011 7 1.001 8 .014 9 1.004 .018 1.028 10 .017 11 1.059 12 .. .057 1.002 1.008 13 .036 Average .895 .913 1.018 .01 1.028 .005 1.023 1 Loss. In 1920 the average per bushel sales realization ranged from about $0.79 to $1.02, while in 1921 the range was from almost $0.40 to about $1.03. Five of the 13 companies showed gross trading losses in 1920, and in 1921 gross trading losses are shown for 4 of the 11 companies. Net trading losses are shown for seven companies in 1920, the greatest amounting to 18.4 cents per bushel while the largest gain 88 METHODS AND OPERATIONS OF EXPORTERS. was '3.8 cents per bushel. For 1921 there were six companies that showed net tradin: oats for fobbers. — Six of the fobbers whose profits are presented in this report bought and sold oats in 1920 and eight in 1921. The net sales realization for all companies averaged about $0.87 per bushel in 1920 and about $0.57 per bushel in 1921. For all companies combined an average gross trading loss of 0.3 of a cent per bushel is shown for 1920 and 2.6 cents per bushel for 1921, while the net trading loss for 1920 was 1.7 cents, and for 1921 it was 3.5 cents per bushel. Futures transactions showed a net profit for all companies combined both in 1920 and 1921, which, when added to the net trading profit, made a total net profit for all companies of 1 cent per bushed in 1920 and a net loss of 1.5 cents per bushel in 1921. The following table shows, for fobbers, by companies, the net sales realization, cost of sales, gross trading profit, general expense, net trading profit, profit or loss on futures, and total net profit including futures, per bushel, for 1920 and 1921 : Table 37.- -Sales realization, cost of sales, and net profit per bushel for oats fobbed, by companies, 1920 and 1921. Year and com- pany. Net sales realization. Cost of sales. Gross trading profit. Deduct general expense. Net trading profit. Profit or loss on futures. Total net profit in- cluding futures. 1921. 1 80.554 .604 .473 .783 .598 .623 .405 .667 $0,573 .763 .532 .871 .622 .759 .398 .615 1 $0. 021 1.159 1.059 1.088 1.024 1.156 .007 .052 $0,008 .012 .017 .01 .01 .022 .009 .011 1 $0. 029 1.171 1.076 1.098 1.034 1.158 1.002 .041 so.oos .101 .072 .114 .041 .106 1 $0. 021 2 1.01 3 1.004 4 .016 5 .007 6 1 . 052 7 1.002 8 1.024 .017 Average .569 .595 1.026 .009 1.035 .02 1.015 1920. 1 .82 .852 1.697 .791 .584 .892 .833 .846 1.645 .752 .612 .846 1.013 .006 .052 .039 1.028 .046 015 013 01 .018 .01 .013 1.028 1.007 .042 .021 1.038 .033 .036 1.01 1.04 1.059 .008 2 1.017 3 .002 4 1.038 5 1.038 6 .068 .101 Average .871 .874 1.003 .014 1.017 .027 .01 A rather wide range was shown for the net sales realization in 1920, the lowest average being about $0.58 and the highest almost INVESTMENT AND EARNINGS. 89 $1.70 per bushel. The range in 1921 extended from about i^'0.41 to $0.78 per bushel. Two of the six companies showed gross trading losses in 1920, while for 1921 six of the eight companies showed gross trading losses. Of the three companies showing net trading losses in 1920, the greatest loss averaged 3.8 cents per bushel, while the largest gain for a particular company was 4.2 cents per bushel. For 1921 one company show^ed an average net trading profit of 4.1 cents per bushel and the remaining seven companies showed losses ranging from 0.2 of a cent per bushel to 17.1 cents per bushel. All but one company dealt in oats futures in 1920, three companies show- ing losses therefrom and two companies gains, so that for the total net profits, including futures, 3 companies showed profits ranging from 0.2 of a cent to 10.1 cents per bushel, and three companies showed losses ranging from 1.7 cents to 3.8 cents per bushel. For 1921 all except one company dealt in oats futures and only one company showed a loss from the j^ear's transactions. Three com- panies showed profits, including futures, ranging from 0.7 of a cent per bushel to 1.7 cents per bushel, while five companies had losses ranging from 0.2 of a cent per bushel to 5.2 cents per bushel. Net profit on corn for exporters. — C'f the companies here con- sidered 13 exported corn in 1920 and 15 in 1921. The average net sales realization for all companies was about $1.36 per bushel in 1920 ami $0.80 in 1921. The gross trading profit for all companies in 1920 averaged 2.5 cents per bushel, and in 1921 there was a loss of 0.6 of a cent a bushel ; while an average net trading profit of 1.2 cents per bushel is shown for all companies in 1920 and a net trading loss of 1.3 cents per bushel in 1921. The net results of transactions in futures for all companies in 1920 changed the net trading profit result to an average net loss of 1.4 cents per bushel; while for 1921 the net trading loss is changed, after including gains from futures, to an average net profit of 0.1 of a cent per bushel. The following table gives, for exporters, by companies, the net sales realization, cost of sales, gross trading profit, general expense, net trading profit, profit or loss on futures, and total net profit in- cluding futures, per bushel on corn for 1920 and 1921 : Table 38. — Sales reulization, cost of sales, and net profit per hushel for corn exported, by companies, 1920 and 1921. Year and com- pany. Net sales realization. Cost of sales. Gross trading profit. Deduct general e.xpense. Net trading profit. Profit or loss on futures. Total net profit in- cluding futures. 1921. 1 $0,878 .69 .879 .748 .817 .839 .765 .864 .866 .745 .807 .708 .733 .69 .818 $0,876 .691 .811 .774 .831 .854 .757 .879 .886 .745 .81 .698 .841 .709 .816 $0,002 1.001 .068 1.026 1.014 1.015 .008 1.015 1.02 $0,018 .011 .005 .006 .01 .005 .004 .005 .025 .005 .009 .007 .039 .023 .008 1 $0,016 1.012 .063 1.032 1.024 1.02 .004 1.02 1.045 1.005 1.012 .003 1.147 1.042 1.006 $0,007 .002 1.003 .031 .022 .C19 .002 .(H11 .024 . 006 .024 1 1)04 .104 .008 .027 1 $0,009 1.01 .06 1.001 1.002 1.001 .006 1.019 1.021 2 3 4 5 6 7 8 9 10 11 1.003 .01 1.108 1.019 .002 .012 1 001 12 13 I 043 14 1.034 ft91 15 Average — .80 .806 1.006 .007 1.013 .014 1 .001 1 Loss. 90 METHODS AND OPERATIONS OF EXPORTERS. Table 28. — Sales realization, coat of sales, etc. — Coiitinuofl. Year and com- pany. Net sales realization. Cost of sales. Gross trading profit. Deduct general cxijense. Net trading profit. Profit or loss on futures. Total net profit in- cluding futures. 1920. 1 $2. 105 .98 l.,581 1.617 1.161 1.533 1.157 1.622 1.695 1.0S6 .992 1.697 1.629 $1,672 .951 1.626 1.616 1.177 1.438 1.147 1.585 1.581 1.056 1.134 1.637 1.767 $.433 .029 1.045 .001 1.010 .095 .01 .a37 .114 .03 1. 142 .06 1.138 $.084 .021 .007 .018 .003 .011 .009 .011 .009 .009 .009 .03 .019 $.349 .008 1.052 1.017 1.019 .084 .001 .026 .105 .021 1.151 .03 1.157 $.017 1.029 1.005 1.381 .029 1.0.57 1.025 $.366 2 1.021 3 1.057 4 1. 398 5 .01 G .027 1.024 8 .026 9 .122 .005 .067 .227 10 .026 11 1.084 12 .03 13 - .003 1. 1.54 Average — 1.359 1.334 .025 .013 .012 1.026 1.014 1 Loss. For 1920 the average net sales realization for the different com- panies showed wide variations, ranging from $0.98 per bushel to almost $2.11 per bushel. The variation in 1921 was not nearly so pronounced, the range extending from $0.69 to about $0.88 per bushel. Four of the 13 companies in 1920 showed gross trading losses ; while for 1921, 9 of the 15 companies showed gross trading losses and 1 company showed neither gain nor loss. For 1920 the net trading profits, ranging from one-tenth of a cent to 34.9 cents per bushel, are shown for 8 companies ; and for the remaining 5 companies net trad- ing losses are shown which ranged from 1.7 cents to 15.7 cents per bushel. For 1921 only 3 of the 15 companies show net trading profits, ranging from three-tenths of a cent to 6.3 cents per bushel; the remaining 12 companies showed net trading losses which ranged from five-tenths of a cent to 14.7 cents per bushel. All except 2 of the companies in 1920 dealt in futures on corn ; 6 companies showed profit from these transactions and 5 losses, which, when added to the net trading profits or losses, gave for 7 companies total net profits ranging from 1 cent to 36.6 cents per bushel, and for 6 companies total net losses ranging from 2.1 cents to 39.8 cents per bushel. All of the companies dealt in futures on corn in 1921, 2 of the companies showing losses of three-tenths of a cent and four-tenths of a cent, respectively, and the remaining 13 companies showing gains ranging from one-tenth of a cent to 10.4 cents per bushel. When these futures profits and losses were included, net profits were shown for 5 companies, ranging from one-tenth of a cent to 6 cents per bushel, and net losses for 10 companies ranging from one-tenth of a cent to 4.3 cents per bushel. Net profit on corn for fobbers. — Results aro presented for seven companies that fobbed corn in 1920 and for eight com- panies in 1921. The average net sales realization per bushel for all companies combined auiounted to almost $1.50 in 1920 and a little over $0.82 in 1921, For all companies combined a gross trading loss of 3.6 cents per busliel was shown for 1920 and a loss of three-tenths of a cent per bushel for 1921, while the net trad- ing loss for all companies averaged 4.9 ce.nts per bushel in 1920 and INVESTMENT AND EARNINGS. 91 1.3 cents per bushel in 1921. The futures operations showed a profit averaging for all companies 2.1 cents per bushel in 1920 and 1.9 cents per bushel in 1921. When the profits on futures were included the total net loss was reduced to 2.8 cents per bushel in 1920 and a total net profit of six-tenths of a cent per bushel was shown for 1921. The following table shows, for fobbers, by companies, the net sales realization, cost of sales, gross trading profits, general expense, net trading profit, profit or loss on futures, and total net profit including futures, per bushel on corn for 1920 and 1921 : Table 39. — Sales reuUzatioii, cost of sales, and net profit per bushel for corn fobbed, by companies, 1920 and 1921. Year and com- pany. Net sales realization. Cost of sales. Gross trading profit. Deduct general expense. Net trading profit. Profit or loss on futures. Total net profit in- cluding futures. 1. 1921. $0.78 .875 .74 .719 .787 .892 .408 1.025 $0. 785 .867 .688 .852 .801 .917 .405 .979 ISO. 005 .008 .052 1.133 1.014 1.025 .003 .046 $0,009 .011 .017 .01 .011 .022 .009 -Oil 1 $0,014 1 .003 .035 1.143 1 .025 1 .047 1 .006 .035 $0,013 .053 .072 .111 .039 1.038 1 $0. 001 2 .05 3 .107 4 1.032 .014 6 • .085 1 .006 8 I .024 .011 Average. .. . 1920. .821 .824 1 .003 .01 1.013 .019 .006 1. 1.647 1.079 2.0G9 3.236 1.667 1.325 1.625 1.61 1.076 1.895 3.138 1.672 1.362 1.714 .037 .003 .174 .098 1.005 1.037 1.089 .015 .013 .024 .009 .018 .01 .013 .022 1.01 .15 .089 1 .023 1 .047 1.102 «.047 1.006 1.393 1.08 1 .034 1.025 2 1 .016 3 1.243 4 .009 5 1 .057 6... 1 .047 7.- .068 » .o;j4 Average 1.496 1.532 1.036 .013 1.049 .021 1 .028 1 Loss. The net sales realization for the different companies in 1920 showed variations ranging from about $1.08 to almost $3.24 per bushel, while the variations in 1921 ranged from approximately $0.41 to nearly $1.03 per bushel. Gross profits are shown for four companies in 1920, the remaining three companies showing losses; and for 1921 four companies showed gross profits and the remaining four com- panies losses. Three companies showed net trading profits in 1920 ranging from 2.2 cents to 15 cents per bushel and four companies showed net trading losses ranging from 1 cen" to 10.2 cents per bushel. For 1921 two companies showed net trading profits of 3.5 cents per bushel each and six companies showed net trading losses ranging from 0.3 of a cent to 14.3 cents per bushel. In 1920 all except one company dealt in futures on corn, one company showing a net gain and the remaining five net losses from these transactions. AVhen the profits and losses from futures transactions were included, the total net trading profits amounted to a gain of 0.9 of a cent in the case of one company, while total net losses ranging from 1.6 cents to 24.3 cents per bushel were incurred b\' the other six companies. In 1921 all except one company dealt in futures on corn, five companies showing net gains ranging from 1.3 cents to 11.1 cents per bushel, and two companies showing net losses of 2.4 cents and 3.8 cents per bushel, 92 METHODS AND OPERATIONS OF EXPORTERS. respectively, which, when added to the net trading profits, showed total net pi'ofits ranging from 1.1 cents to 10.7 cents per l>usliel in the case of four companies, and net losses ranging from 0.1 of a cent to 8.5 cents per bushel in the case of the remaining four companies. Section 11. Frequency and rate of return on turnover. A very significant fact in the grain exporting business is the frequency of the turnover of the capital employed. Export and fob sales are usually made in comparatively large quantities and the lapse of time between the purchase and sale of grain is short. In 1920 the companies engaged largely in the export lousiness had an average turnover of about 23 times the capital stock, surplus, and reserves, and an average of 31 times in 1021. The fobbers had an average turnover of 20 times in 1920 and over 21 in the follow- ing year. Taking individual companies, there were four instances of concerns having a turnover in excess of 100 times in 1920 and 1921, while there were 13 in excess of 50 times, and only four with a turnover of less than 10 times in both years. Some grain mer- chants, it may be noted, are " in and out " of the business during the year, i. e., they are not active in the trade throughout the year. On the total funds employed in the business, i. e., the capital stock, surplus, reserves, and borrowed money, the turnover was less frequent. Tlie average turnover for exporters was 10 times in 1920 and about 15 times in 1921, and for fobbers the average was 8 times in 1920 and about 13 times in the following year. For ex- porters and fobbers combined there were no instances for individual companies of a turnover in excess of 100 times on the total funds employed in the business, and only one, a fobber, in excess of 50 times. Fifteen companies had a turnover of less than 10 times in the two years. The average rate of return on the capital stock, surplus, and re- serves per turnover for exporters was about 2.5 per cent in 1920 and not quite 1 per cent in 1921, while for fobbers the average was l.'J and 1.8, respectively. For individual exporters and fobbers there was a wide variation. For exporters the range was from a minimum profit of four-tenths of 1 per cent to a maximum of 10.3 per cent in 1920, and from a loss of 1.1 per cent to a profit of 4.7 per cent in the following year. The range for fobbers was from a loss of 1.8 to a profit of 3.5 per cent in 1920 and from a loss of about 1.4 to a gain of nearly 3.5 per cent in 1921. i Chapter VII. THE UNITED STATES GRAIN CORPORATION. Section 1. Relations of Grain Corporation to the inquiry. The Senate resolution directing the export grain inquiry specifically stated that the commission should begin " with the liarvest of the 1919 crop " and that " it is requested that the United States Grain Corporation, the Department of Agriculture, and other Government departments and the United States Food Administration make avail- able all the pertinent records from these several departments and organizations for the use of the commission." The export movement from the United States of a new crop of wheat, rye, or barley is usually large during the last four months of each calendar year, and most of a crop that is exported is shipped during the fiscal year ending June 30. The examination of the books and records of the principal firms exporting grain from the Gulf and Atlantic seaboard ports disclosed the fact that the quantity of grain exported or sold for export by them was very small for the fiscal year ending June 30, 1920. This was due to the fact that the United States Grain Corporation was designated, by Executive order, as the agency to carry out the provision of the law guaranteeing the minimum price of wheat. (See p. 97.) In order to maintain this minimum price and to protect the Government against loss, the Grain Corporation purchased and sold the bulk of the 1919 crop exported. Hence it was necessary to examine the accounts of the Grain Corpo- ration and to report the facts in order to adequately answer the inquiry of the Senate. As the Grain Corporation was not operated for profit and its activities were not comparable with those of private concerns, the discussion of its operations are presented in a separate chapter. Section 2. Conditions prior to organization. There Avas a distinct shortage of wheat in the United Stat^^s in 1917. The production in 1916 was less than 640,000,000 bushels, or more than 37 per cent smaller than the 1915 crop, which was over a billion bushels. The prospects for the 1917 wheat crop were very poor. Owing to the fast shrinking merchant shipping space, result- ing from the destruction of tonnage by unrestricted submarine war- fare and the diversion of ships to the transportation of troops and munitions, it was practically impossible to reach the wheat in the distant markets of Argentina and Australia, and the Allies were forced to rely on America for the bulk of their supply of wheat and wheat flour. Influenced by the above conditions, the price of wheat of the 1916 crop advanced rapidly, reaching a high point in May, 1917, when cash wheat in Chicago sold as high as $3.45 per bushel. The wheat and flour markets were totally demoralized, and specu- 93 94 METHODS AND OPERATIONS OF EXPORTERS. lation in these commodities developed to such an extent that the directors of the Chicago Board of Trade prohibited furtiier trading in May futures and forced settlement of outstanding May contracts at a price fixed by a committee, wliicli named $8.18 per busliel. After this, prices began to drop and millers and dealers began buying only for current demands. On July 10, 1917, the Food Administrator addressed the President, describing the situation in part as follows : ^ During recent months the allied governments have consolidated their buying into one hand in order that tliey might relieve tlie burden of speculation from their own consumers, and as the restricted exports to neutrals are but a minor item, the export price, if not controlled, is subject to the will of tlie allied buyer, and, in a great measure, the American producer left to his judgment and without voice. The net result of this situation is that unless some strong and efficient gov- ernment action is immediately settled and brought into play, the American producer will face a slump in wheat, and in any event the price of export wheat will be dictated by a single agency and the American consumer will be faced with a large part of the essential breadstuff having passed into the hands of speculators. The Government believed it faced two important problems — first, to stabilize the price of wheat at a point sufficiently high to stimulate production and at the same time to keep the price of In-eadstuffs as low as possible to the consumer, and second, to establish a control over the distribution of Avheat and flour by retaining in this country a quantity sufficient for domestic consimiption and at the same time giving the maximum available quantity to the Allies. These factors were among conditions which led to the passage of the food control law. Section 3. Government price control. United States Food Administration. — On April 7, 1917, the day following the declaration of war against Germany, the Council of National Defense cabled Herbert Hoover, who was then in Europe, requesting him to become " its advisor upon food and price problems." Mr. Hoover returned on May 7, 1917, and the President appointed him Food Administrator of the United States, pending legislation authorizing control of food distribution and prices.- The Food Administrator began at once to la}^ the foundation for a food control law, and his recommendations and those of the Presi- dent regarding food control were embodied in a bill known as the Lever bill, introduced in Congress on June 11, 1917, which became a law August 10 of the same year. The reason for the enactment and the purpose of the Lever Act is stated in section 1 of the amended act, as follows : That by reason of the existence of a state of war, it is essential to the national security and defense, for the successful prosecution of the war. and for the support and maintenance of the Army and Navy to assure an adequate supply and equitable distribution, and to facilitate the movement of foods, feeds, wearing apparel, containers primarily designed or intended for containing foods, feeds, or fertilizers ; fuel, inciuding fuel oil and natural gas, and fertilizer and fertilizer ingredients, tools, utensils, implements, machinery, and equipment 'The Official Bulletin, July 11, 1917, p. 3. " War Industries Board, Government Control Over Prices, p. 40. UNITED STATES GRAIN CORPORATION. 95 required for the actual production of foods, feeds, and fuel, hereafter in this act called necessaries; to prevent, locally or generally, scarcity, monopolization, hoarding, injurious speculation, manipulation, and private controls affecting such supply, distribution, and movement; and to establish and maintain gov- ernmental control of such necessaries during the war. This act gave the President authority to create an}' agency or agencies and to utilize any department or agency of the Govern- ment in carrying out its provisions. On August 10, 1917, the same day the food control act was approved, the President issued an Exec- utive order creating the United States Food Administration and appointing Herbert Hoover United States Food Administrator. The above act and Executive order gave a legal status to what had already been done in the previous three months by the Food Admin- istrator, who, working under a special allowance from the President's emergency fund, had built up a staff of 450 persons and was ready to begin the administration of the food-control law. On August 14, 1917, the President, acting under authority of sec- tion 5 of the food control act, issued a proclamation requiring " all persons, firms, corporations, and associations engaged in the business of either storing or distributing wheat or rye, as owners, lessees, or operators of warehouses or elevators," and all manufacturers of any products derived from wheat or rye (except mills with a daily capacity of 100 barrels or less and farmers and cooperative associa- tions of farmers) to secure a license from the Food Administrator on or before September 1, 1917. Proclamations were issued on Octo- ber 8, 1917, requiring wholesale dealers in various grain and grain products, and on November 7, 1917, requiring bakers of bread, cakes, crackers, etc. (except those consuming less than 10 barrels of flour per month), to secure license from the Food Administrator. Licenses were issued under the above proclamations conditioned upon the licensee observing the regulations issued by the Food Ad- ministrator, among which were regulations providing that the licensee should sell such commodities " at not more than a reasonable advance over the actual purchase price of the particular products without re- gard to the market or replacement value at the time of such sale." The regulations provided " that if any licensee pays more for wheat than the customary market price in that locality, as evidenced by the price established for Government purchases at the nearest terminal market, less freight, he shall not be permitted to charge as costs the excess over such market price." Guaranteed w^heat prices. — Under the food control act of August 10, 1917, the United States Government undertook to guarantee to the producers of wheat a price to be fixed by the President. The President was authorized, Avhenever he should find that " an emer- gency exists requiring stimulation of the production of wheat," and that it was essential that producers should have the benefits of the guaranteed price, " to determine and fix and to give public notice of what under specified conditions is a reasonable guaranteed ]irice for wheat in order to assure such producers a reasonable jirofit." The law fixed the minimum guaranteed price for the 1918 Avheat crop " based upon No. 1 northern spring or its equivalent at not less than $2 per bushel at the principal interior primary markets." The guaranteed price determined by the President for the 1918 crop was somewhat higher than the minimum, as shown below. (See p. 98.) 96 METHODS AND OPERATIONS OF EXPORTERS. Fair price for the 1917 wheat chop. — The minimum price of $2 per bushel fixed by Confyress for the 1918 wheat crop did not apply to the 1917 harvest. The President, actinj^ under autliority of the food control act, api^ointed a committee '■ to conduct an incjuiry into all the different factors in the grain situation and to make a report which would enable him to establish a price for the 1917 wheat crop. The committee reported to the President on August 30. 1917, recom- mending " that the price on No. 1 northern spring wheat, or its equivalent, at Chicago be $2.20 per bushel." The following table shows the prices recommended for the different kinds of No. 1 w heat : Table 40. — Prices e-^ffthlished hy the Government for No. 1 wheat per bushel, Chicago basis, by kinds, for the 1917 crop. Kind of wheat. Price per bushel. Kind of wheat. Price per bushel. Dark hard winter $2.24 2.20 2.20 2.16 2. IS 2.21 2.20 2.18 tz.w Hard winter 2.24 Red winter 2.20 Yellow hard winter 2.13 Soft red winter 2.13 Dark northern spring 2.20 Northern spring Soft white . 2.18 Red spring Whiteclub 2.16 The price for No. 2 grade for each kind of wheat was fixed at 3 cents per bushel less than No. 1, while No. 3 was 6 cents less and No. 4 10 cents less than No. 1. The differentials from the Chicago basis for the principal interior terminal and seaport markets were also fixed, as shown in the following table : Table 41. — Differential in cents per bushel between the market prices at im- portant interior terminal and seaport markets for the 1917 ivheat crop. Market. Differential per bushel. Market. Differential per bushel. Chicago Base price. Do. Do. 2 cents less than base. 3 cents less than base. Do. New Orleans Do. Galveston St. Louis Diiluth Do. Minneapolis Subsequent to August 30, 1917, three changes Avere made in the differentials; first, arrangements Avere made for overseas transport from the Pacific coast and the base price for bulk wheat was fixed at $2.05 for Pacific Northwest points and $2.10 for California points; second, a ^eduction of 2 cents per bushel was made at Philadelphia, » H. A. Garfield, president of Williams College, chairman ; Charles G. Barrett, president Farmers' Union, Union City, Ga. ; William N. Doak, vice president Brotherhood of Rail- road Trainmen, Roanoke, Va. ; Edw. F. Ladd, president North Dakota Ajrricultural Col- lege, Fargo, N. Dak. ; R. Goodwin Rhett, president Chamber of Commerce of I'nited States, Charleston, S. C. ; .7. W. Shortill, secretary National Council of Farmers Coopera- tive Association, York, Nebr. ; James W. Sullivan, American Ji'ederation of Labor, Brook- lyn, N. Y. ; L. .1. Tabor, master Ohio State Grange Barnesville, Ohio ; Frank W. Taussig, chairman of U. S. Tariff. Commi.ssion ; Theo. N. Vail, president American Telephone & Telegraph Co., Ne ■ York City ; Eugene E. Funk, president National Corn Association, Bloomingtou, 111. ; Harry J. Waters, president Kansas State Agricultural College, Manhat- tan, Kans. UNITED STATES GRAIN CORPORATIOIir. 97 Baltimore, and Xew York, " in consequence of the suspension of increase of rates by the Interstate Commerce Commission " ; and third, all wheat below No. 3, Federal grading, was purchased " upon merits instead of grade." In announcing the above prices as the fair prices to be paid for Government purchases on August 30, 1917, the President said: Section 11 of the Food Act provides, among other things, for the purchase and sale of wheat and flour by the Government, and appropriates money for that purpose. The purcliase of wheat and flour for our allies, and to a con- siderable degree for neutral countries also, has been placed under the con- trol of the Food Administrator. I have appointed a committee to determine a fair price to be paid in government purchases. The price now recommended by that committee $2.20 per bushel at Chicago for the basic grade will be rigidly adhered to by the Food Administration. Guaranteed price for the lois wheat crop. — As already stated, Congress by section 14 of the food control act approved August 10, 1917, gave the President power to fix reasonable guaranteed prices for wheat and named $2 per bushel at the principal interior primary markets as the minimum guaranteed price for the 1918 crop. The President, acting under authority of the above act, by proclamation dated February 21, 1918, stated: I do hereby determine and fix, and give public notice of reasonable guar- anteed prices for No. 1 northern spring wheat and its equivalent at the re- spective principal primary markets, as shown in the following table : Table 42. — Prices of wheat guaranteed bij the Government for the 1918 crop. Market. Chicago, III Omaha, Nebr Kansas City, Mo . . St. Louis, Mo Minneapolis, Minn. Duluth, Minn New York, N. Y... Philadelphia, Pa... Baltimore, Md Newport News, Va Charleston, S. C.... Savannah, Ga Portland, Greg Price per bushel. $2.20 2.15 2.15 2.18 2.17 2.17 2. 28 2.27 2.27 2.27 2.27 2.27 2.05 Market. Seattle, Wash San Francisco, Calif. . Los Angeles, Calif Galveston, Tex New Orleans, La Salt Lake City, Utah. Great Falls, Mont Spokane, Wash Pocatello, Idaho Fort Worth, Te.x Oklahoma City, Okla Wichita, Kaus Price per bushel. $2.05 2.10 2.10 2.20 2.20 2.00 2.00 2.00 2.00 2.09 2.05 2.08 The above prices apply to No. 1 northern spring. No. 1 hard winter. No. 1 red Avinter, No. 1 durum, and No. 1 hard white wheat. The prices of other grades of wheat which were established under the United States grain standard act of August 11, 1916, were " based on the above guaranteed prices." This proclamation simply continued for another year the prices established for the 1917 crop. In June, 1918, the railroads were granted a general advance in freight rates of 25 per cent, and the President issued an Executive order June 30, 1918, authorizing the Food Administration Grain Corporation (.see p. 98) to pay "higher prices than the guaranteed basis for an}^ grade of wheat in any given market.'' Acting on this authority the Food Administration issued new prices etfective 98 METHODS AND OPERATTON.S OF EXPORTERS. July 1, 1918, which were intended " as nearly as possible to com- pensate for increases in railway and sea freights." The new prices for No. 1 northern sprinf^, No. 1 hard winter, No. 1 red winter, and iNo. 1 durum wheat at the principal markets are shown in the fol- lowing: table : Table 43. — Prices of wheat, guaranteed by the Government, hy principal markets, effective July 1, 1918. Market. Price per bushel. Market. Price per bushel. New York $2. 395 2.39 2. .3875 2. 3S75 2.225 2.215 2.26 2.24 2.18 Omaha 12.18 Philadelphia 2.28 Baltimore Galveston. 2 28 Newport News 2.20 Duhith Seattle.. 2 20 Minneapolis 2 20 Chicago 2.20 St. Louis 2.20 Kansas City 2.20 The basis for No. 2 wheat was 3 cents below No. 1 and the basis for No. 3 wheat was 7 cents below No. 1. Grades below No. 3 were dealt in on sample. Prices of other kinds of wheat than those mentioned above Avere fixed as follows : Dark hard winter, 2 cents above hard winter. Dark northern spring, 2 cents above northern spring. Amber durum. 2 cents above durum. Yellow hard winter, 2 cents below hard winter. Red spring, 5 cents below northern spring. Red walla, 7 cents below red winter. Red durum, 7 cents below durum. Soft white, 2 cents below hard white. White club, 4 cents below hard white. Intermountain basis f. o. b. outgoing cars, $2 per bushel. The Food Administration Grain Corporation announced that it would buy wheat on the above fair price basis at the principal pri- mary markets as named. It was also announced that producers had the right to bill their wheat to the Food Administration Grain Corporation at any of the principal primary markets named above, and wdien the wheat was unloaded in the elevator and weight and grade returns were received by the Food Administration Grain Cor- poration, remittance would be made on the basis of the Government price less 1 per cent administration charge for service. Guaranteed price for the loio wheat crop. — Acting under au- thority of section 14 of the food control act of August 10, 1917, the President issued a proclamation on September 2, 1918, fixing the guaranteed price of wheat for the 1919 crbp " for No. 1 northern spring and its equivalent at the respective principal primary mar- kets," as shown in the following table : UNITED STATES GRAIX COEPORATION. 99 Tahle 44. — Prices of iclieat guaranteed In/ the Government al the principal interiar and seaboard markets foi' the 1919 crop. Market. Chicago, 111 Omaha, Nebr Kansas City, Mo.. St. I.ouis, Mo Minneapolis, Minn, Duluth, Minn , Nev.' York, X. Y... Philadelphia, Pa... Baltimore, Md Newport News, Va New Orleans, La. . . Price per bushel. $2.26 2. IS 2.18 2.24 2.21i 2. 22i 2.39i 2.39" 2. 38-J 2.38f 2.28 Market. Galveston, Tex , Los Angeles. Calif San Francisco, Calif. Portland, Greg Astoria, Oreg Tacoma, Wash Seattle, Wash Spokane, Wash Salt Lake City, Utah Pocatella, Idaho Great Falls, Mont.... Price per bushel. $2.28 2.20 2.20 2.20 2.20 2.20 2.20 2.00 2.00 2.0O 2.0O The above prices were made the guaranteed prices for No. 1 north- em spring, No. 1 hard winter. No. 1 red winter. No. 1 durum, and No. 1 hard white. " The guaranteed prices at the respective prin- cipal primary markets aforesaid of all other grades of wheat estab- lished under the United States grain standards act approved August 11, 1916, shall be based on the above guaranteed prices and bear just relation thereto." These prices were guaranteed to any producer of wheat of any grade " upon the condition that said wheat is harvested in the United States during the year 1919. and offered for sale before June 1, 1920, to such agent or emploj^ee of the United States, or other person as may be hereafter designated, at any one of the above men- tioned cities " and provided the producer complied with all regula- tions in regard to the wheat guaranty. The guaranteed price at Galveston and New Orleans was increased from $2.28 to S2.30 per bushel by Executive order on June 25, 1919, effective July 1, 1919. Zones axd agexcies. — To facilitate the operations of the Food Ad- ministration Grain Corporation, the United States was divided into 14 zones centering about geographicallj^ and commercially terminal markets. Each zone out.side of New York was under the super- vision of a second vice president of the organization who was respon- sible for the administration of the corporation in his particular zone. The location of the agencies and the territory covered by each zone were as follows: Table 45. — Location of offices and territory included in the zones of the Food Administration Grain Corporation. Zone. New York, head ofRce. St. Louis, Mo Portland, Oreg New Orleans, La.. Philadelphia, Pa... Duluth, Minn Minneapolis, Minn. Baltimore, Md , Chicago, 111 Buffalo, N.Y San Francisco, Calif. Kansas City, Mo Omaha, Nebr... Galveston. Tex. Territory covered. Greater New York, Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont. Louisiana, Mississippi, Arkansas, Alabama, Florida, Georgia. Missouri (except Jackson and Buchanan Counties), Kentuckv, North Carolina, South Carolina. Tennessee, and Illinois (south of boundary line indicated under Chicago). Idaho, Oregon, and Washington. New Orleans only. Michigan (lower peninsula), Indiana, Ohio, Pcnnsylvania.and New Jersey. Douglas County, Wis., and terminal elevators in Duluth, Minn. Minnesota, Montana, Wyoming, North Dakota, South Dakota, and Iowa. Maryland, Virginia, West Virginia, District of Columbia, and Delaware. Illinois (north ofand including the counties of .\dams. Brown, Cass. Menow, Logan, Macon, Pratt, Champaign, Vermilion), Michigan (upper penin- sula), Wisconsin (except Douglas County), and Iowa. New York (except Greater New York City). California, Nevada, and Arizona. Colorado, Kansas. Utah, Oklahoma, Texas, New Mexico, and Buchanan and Jackson Counties, Mo. Nebraska. Galveston only. 106205°— 22- -9 100 METHODS AND OPERATIONS OF EXPORTERS. In addition to the above, the following subterminal markets were established : Newport News, Va Subterminal under Baltimore with same prices. Milwaukee, Wis Subterminal under Chicago with same prices. Seattle, Wash Subterminal under Portland with same prices. Los Angeles, Calif Subterminal under San Francisco with same prices. Each agency was operated as a unit in buying and purchasing grain and grain j^roducts, but made a daily report of all transac- tions to the head office in New York City. Section 4. Organization and capitalization. Organization of Grain Corporation. — The food-control act of August 10, 1917, authorized the President to purchase from time to time, to store, and to sell for cash at reasonable prices, wheat, flour, meal, beans, and potatoes. And in order to protect the Government against material enhancement of its liabilities arising out of any guaranty, the President was authorized to purchase and sell any wheat for which a guaranteed price was fixed. In order to facili- tate the exercise of the authority thus granted and " to enable the United States Food Administration to purchase and sell such com- modities in the manner and by the methods customarily followed in the trade," the President issued an Executive order on AugTist 14, 1917, directing the Food Administration to cause a corporation to be created under the laws of Delaware to be named the Food Admin- istration Grain Corporation. The board of directors consisted of seven members, four of whom were named in the Executive order directing that the corporation be created. The remaining three were to be " named by the incorpo- rators subject to change by and with the approval of the Presi- dent." The officers consisted of a president, vice president, secre- tary, treasurer, and 13 second vice presidents. Each of the second vice presidents represented the corporation in one of the 14 zones into which the United States was divided, for the purpose of admin- istering the activities of the corporation. The Food Administration Grain Corporation was under the direct control of the United States Food Administrator, who held and voted all of the capital stock of the corporation until June 30, 1919, when control of the corporation was transferred to the United States Wheat Director. The position of Wheat Director was created by an Executive order of May 14, 1919. The Wheat Director was vested with the executive administration of the laws " in so far as they apply to the wheat and its products of the crop of 1919 and the guarantees made to producers thereof and the protection of the United States against undue enhancement of its liabilities there- under." The Wheat Director simply took over the activities relating to wheat and wheat products formerly exercised by the Food Aduiin- istration, which was preparing to wind up its affairs by June 30, 1919. The Food Administration Grain Corporation was directed, by Executive order of May 14, 1919, to close its books as of June 30, 1919, and change its name to United States Grain Corporation, here- after referred to as the Grain Corporation. All of the capital stock of the Grain Corporation was held by the Wheat Di- UNITED STATES GRAIN CORPORATION. 101 rector in the name of and for the use and benefit of the United States. The Grain Corporation was authorized to purchase and sell wheat of the crop of 1918 after June 1. 1919, previous authority having expired on that date, and to purchase wheat and flour pro- duced from wheat of the 1919 crop " at the places designated for the delivery of the same by the President's proclamation " of Septem- ber 2, 1918, and " at such other places as the Wheat Director may designate for cash or on credit at the guaranteed prices or at such other prices and on such other terms as the "Wheat Director may direct." Capitalization of Grain Corporation. — The food-control act of August 10, 1917. appropriated $150,000,000 for the purpose of car- rying out the provisions of the act relating to purchase and sale of the products named by the President. The Executive order direct- ing that the corporation be created, pro^Hided that the capital stock should be $50,000,000, and directed the United States Food Adminis- trator to " subscribe for and purchase all of said capital stock in the name of and for the use and benefit of the United States and as purchased to pay for the same out of the appropriation of $150,000,000 authorized " by the food-control act. The President, by Executive order of June 21, 1918, directed that the capital stock be increased to $150,000,000 and that the Food Administrator purchase the additional capital stock and hold it for the United States and pay for it out of the appropriation of the $150,000,000 referred to above. The Grain Corporation was also authorized to " borrow such sums of money upon the security of wheat or flour owned by it, as may be required to carry out the pro- visions of this order." Outside borrowing constituted the principal source of capital during tlie 1918 crop year, and at one time these borrowings amounted to $385,000,000. This condition is not reflected in the balance sheets given below, for the reason that they are taken at the close of the wheat year. The act of March 4, 1919, appropriated $1,000,000,000 to enable the President to carry out the price guaranty made to producers of wheat for the 1919 crop and to protect the Government against loss resulting from such guaranty. The Executive order of May 14, 1919, transferring control of the Grain Corporation to the United States Wheat Director, provided that the capital stock shoukl be in- creased to $500,000,000 and that the Wheat Director should sub- scribe for and purchase the " additional capital stock in the name of and for the use and benefit of the United States and to pay for the same out of the appropriation of one billion dollars," referred to above. This increase of $350,000,000 was made subsequent to June 30, 1919, and it* was retired in June, 1920, pursuant to Executive order of June 26, 1920, which directed that the United States Grain Corporation reduce its outstanding capital from $500,000,000 to $150,000,000. The capital stock was further reduced from $150,000,000 to $50,000,000 by Executive order of August 18, 1920. This latter amount is still on the books of the corporatir-^^ Section 5. Extent and magnitude of operations. Purchases and sales. — The Food Administration Grain Corpora- tion was made the sole agency for the purchase and sale of all com- 102 METHODS AND OPERATIONS OF EXPORTERS. modities dealt in by the Government in the administration of the food-control laws. Most of its transactions were in . Qnavtitu and nrt-HOlcH ralnc of flour sold hy the flour department of the Grain Corporation, July 1, lOlS, to July 31, 1920. Date. Barrels. Average price per barrel. 1918. July August September October N ovember December 1919 January February March April May June Fiscal year 1919, July August September October November December 1920 January February March April May June P'iscal year July 2, 494, 104 1,602,999 l,02r),:m l,42r),09.5 l,6r>4, 10(> 2,670,595 3, 109, 816 1,. 560, 305 1, 786, 2.57 1,350,1.30 2,906,402 2,541,135 $27,1&3,316.06 17,728,86:1.90 11,2.')7,886.()9 1.5,778,210.69 18,217,071.19 29,936,373.39 3.5, 677, 46.".. 32 18,422,269.79 21,312,908. .52 15,394,937.75 32,944,674.48 29.188,372.74 24,206,337 273,042,347.92 1,346,607 921,060 1,135,117 584, 804 786,956 677, 162 1,043,790 732,897 1,517,292 1, 196, 632 1,731,579 1, 279, 691 14, 361, 533. 47 10,039,003.30 11, 776, .532. .58 6, 160, 742. 09 8,246,434.45 6,787,711.24 11,0.53,6.58.59 7, 719, 435. 61 16,13.5,017.37 12,721,053.57 16, 857, 623. 71 13, 538, 403. 34 12,953,587 135,397,149.32 $10.90 11.06 10.98 11.07 10.95 11.21 11.26 11.81 11.93 11.32 11.32 11.49 11.28 10.67 10.90 10.38 10.54 10.48 10.02 10. .59 10.53 10.63 10.63 9.75 10.58 10.45 1,046,318 11,085,544.43 For the fiscal year ending June 30, 1919, all of the sales of flour were for export, while in the following year all but about 650,000 barrels were sold for export. The quantity of flour sold for export by the Grain Corporation, as shown above, for the year ending June 30, 1919, is slightly larger than the total quantity reported by the United States Bureau of Foreign and Domestic Commerce. The small discrepancy is due to the difference in the date for particular sales appearing on the sales invoices of the Grain Corporation and the date as shown by the export declaration. In the following year export restrictions with reference to flour were removed and the Grain Corporation sales for export were slightly less than half the total. During the fiscal year ending June 30, 1919, the quantity of flour sold for export by the Grain Corporation was equivalent to about 116,200,000 bushels of wheat, and in the next year to approxi- mately 52,300,000 bushels. Millers' voluntary agreement. — Immediately following its or- ganization in August, 1917, the Grain Corporation entered into a series of agreements with millers and country elevators to main- tain the Government price basis in their purchases during the 1917 crop year. The chief provisions of the millers' agreements were (1) the mills were not to pay a higher price for wheat than the Govern- ment fair price; (2) the Grain Corporation guaranteed the mills against loss by decline in the price of wheat below the fair price UNITED STATES GRAIN CORPORATION. 107 basis or against a decline in the price of flour during the life of the agreement, the millers paying the Grain Corporation a sum equal to 1 per cent of the amount paid for wheat purchased and ground in the mill; (3) the Grain Corporation agreed to maintain an equitable distribution of the available wheat between the mills on a pro rata basis, each mill to receive the same proportion of the total that its average grind for the three years 1914^1916 bore to the total average grind of all mills during that period; (4) the millers agreed to oper- ate their mills at a profit of not more than 25 cents per barrel on flour and 50 cents per ton on feed; (5) the millers agreed not to store wheat for more than 30 days' supply without permission of the Food Administration: (6) millers agreed not to contract for the sale of flour more than 30 days in advance; and (7) the Grain Corpora- tion agreed to apportion all export sales of flour over the entire mill- ing industry. About 3,300 millers signed this agreement with the Food Administration during 1917 and 1918, while 4,014 millers signed similar agreements with the Wheat Director during 1919 and ]920. Millers' license. — The millers who did not sign the agreement, although at liberty to purchase wheat at higher prices, were effec- tively held to the fair price basis by the terms of the license required by the Executive order of August 14, 1917. This order was issued under authority granted the President by the food control law and required all persons, firms, corporations, etc., manufacturing any products derived from wheat or rye, except mills with a daily capacity of 100 barrels or less, and farmers and cooperative associa- tions of farmers to secure a license from the food administrator on or before September 1, 1917. On January 10, 1918, the size limit was reduced to 75 barrels. All millers were ultimately required to take out licenses to operate. The regulations under which licenses were issued to millers provided that (1) the mills should operate at a profit not exceeding 25 cents per barrel on flour and 50 cents per ton on feeds, and in computing cost, if any licensee paid " more for wheat than the customary market price in that locality, as evidenced by the price established for Government purchases at the nearest terminal market less freight, he shall not be permitted to charge as cost the excess over such market price "; (2) no miller could '' keep on hand or have in possession or under control at any time any greater quantity of wheat, rye, or flour, in the aggregate." than the equivalent of the output of the plant for 30 days, without the consent of the Food Administration; (3) no miller could contract for the sslU of flour for more than 30 days in advance, except " with the Federal Government or with the Government of any nation at war with German3\" The terms of the voluntary agreements and the requirements for securing a license to operate were substantially the same. About 7,000 millers were granted licenses to operate during 1917 and 1918. The number of millers' licenses in effect on June 1, 1920, were 10,105. Section 6. Financial statements, earnings, and margins. Balance sheets. — The balance sheets presented in this re})ort were prepared and submitted by the corporation and were not veri- fied by the commission. They do not reflect the maximum invest- 108 METHODS AND OPERATIONS OF EXPORTERS. ment during the year. During the 1918 crop year the corporation borrowed large sums on stocks of commodities on hand. At one time such borrowings amounted, as already stated, to $385,000,000, but this sum was largely liquidated before June 30, 1919. Pursuant to Executive order of May 14, 1919, the capital stock of the Grain Corporation was increased to $500,000,000, which gave the corpora- tion the use of $350,000,000 additional cash during the 1919 wheat crop year. This extra capital stock was retired, however, by Execu- tive order of June 26, 1920, hence it is not reflected in the balance sheet of June 30, 1920. The following table shows the balance sheets foi- the fiscal years ending June 30, 1919 and 1920, and for Februai-y 28, 1921. Table 50. — Balance sheets of the United States Grain Corporation. Item. ASSETS. Cash Accounts receivable Bills receivable Inventories United States Government bonds. Furniture and equipment Interest in suspense on flour loans. Total. LIABILITIES. Accounts payable Flour loans Accruals Reserves: Marine insurance Freight Contingency Transportation of German gold . Overages Miscellaneous list Capital stock issued Miscellaneous income Surplus June 30, 1919.1 ?97, 9.52, 31.5. 31 118,249,994.99 15,000.00 69,748,855.63 137,700.00 166, 598. 85 4,881.49 286,275,346.27 65,688, 77, 6,944, 401, 1,243, 28, 138, 198.16 214. 08 548.49 444.14 898. 48 975. 15 10,137, 150,000, 104. 84 000.00 23,643,962.93 Total 286,275,346.27 June 30, 1920. $1.30,197,441.44 36,285,190.87 16,600,114.29 29,419,647.80 198,700.00 128,598.08 212,829,692.48 Feb. 28, 1921. ?43,821,360.08 1,2.57,622.30 56,899,879.09 198,700.00 46,712.74 102,224,274.21 4,398,087.28 ""985," 069.' 57' 369,951.58 '2i,"i52,'369.'69" 161,186.69 150,000,000.00 9, 345, 516. 63 26,417,521.64 212,829,692.48 673,889.91 486, 2.54. 94 19,797.26 50,000,000.00 10,267,835.82 40,776,496.28 102,224,274.21 ^ Food Administration Grain Corporation. As already stated, the Grain Corporation was not an important factor during 1920, as it practically closed its business at the end of May, 1920. On June 30, 1920, its inventories amounted to about $29,420,000, but before February 28, 1921, all inventories had been closed out. Fluctuations in borrowed funds. — The balance sheets presented above do not indicate the importance of the borrowed funds used by the Grain Corporation. As already shown in the preceding chapter, there is a wide fluctuation in the amount of money required in the export grain business at different periods of the year, and as a consequence export concerns use large amounts of short-time loans. The books of the Grain Corporation showed as wide a fluctuation in the amount of borrowed money used in different months as was shown for private companies. The following table shows the amount of borrowed money at the end of each month from July, 1918-June, 1919: UNITED STATES GRAIN CORPORATION. 109 Table 51. -Monthly fluctnations in the amount of Mils payable for the Grain Corporation, July, 1918, to June, 1919. Date. Amount. Inde.x number. 191S July August September , October , November December , 1919 January February March April , May June , $4,753,507.42 4,737,218.74 78, 182, 744. 14 363, 877, 744. 14 365, 127, 690. 14 320, 247, 190. 14 313, 204, 690. 14 309, 188, 537. 06 253, 229, 159. 23 160,114,374.15 106, 391, 471. 54 77, 214. 08 m 1.3 1.3 21.4 99.6 100.0 87.7 85.8 84.7 69.4 43.9 29.1 1 Less than one-tenth of 1 per cent. As already stated, the amounts shown above are for the end of each month. The amount of short-time loans increased rapidly from Juh' to the end of November, 1918, after which there was a steady decline until the end of the fiscal j-ear. For the index numbers November, 1918, was taken as 100. During the fiscal year ending June 30, 1919, only $150,000,000 was available from appropriations for the use of the Grain Corpora- tion. This amount was not sufficient to finance the operations of the Grain Corporation ; consequently the amount of borrowed money was large, particularly in the months of heavy purchases. On March 4. 1919, an appropriation of $1,000,000,000 was made to finance the Grain Corporation in carrying out the price guaranty for the 1919 wheat crop. From this appropriation the Grain Corpo- ration increased its capital stock to $500,000,000, thus avoiding the necessity of borrowing during the year ending June 30, 1920. The heaviest borrowings were made during the six months begin- ning with October, 1918. As already stated, the largest amount borrowed was about $385,000,000. The largest amount borrowed at the end of a month was $365,127,000 on November 30, 1918. The marked decline in the amount borrowed, as shown for June 30, 1919, was due to the fact that Congress had appropriated $1,000,000,000 for the use of the Grain Corporation, which was available July 1, 1919. Income statements. — The Grain Corporation submitted a state- ment of miscellaneous income for the Food Administration Grain Corporation covering the period of its operations prior to June 30, 1919, a period of about 21 months. The corporation closed its books as of June 30, 1919. at which time it changed its name to United States Grain Corporation. The corporation also submitted state- ments o^ income for the United States Grain Corporation for the 3^ear ending June 30, 1920, and accumulated income up to February 28, 1921, at which time it had disposed of all commodities on liand. The income statements condensed by combining departments and agencies are shown in the following table : 110 METHODS AND OPERATIONS OF EXPOHrERS. Table Zi2.— Earnings from the operations of the Food Administration Grain Corjioration and the United States Grain Corporalion, September J, 1917, to February 28, 1921. Item. Sept. 1, 1917, to June :W, 1919. July 1, 1919, to June 30, 1920. July 1, 1919, to Feb. 28, 1921. Wheat settlement with Allies Interest on bank balances Miscellaneous interest received Guaranty and operating expense fund . Miscellaneous earnings Operating income $7,078,115.40 289, 657. 07 548, 200. 02 12,211,890.61 55,111,485.81 $1,905,600.42 27,884.64 7,496.56 12,577,153.98 3,310,968.28 $2,084,817.77 73,9.34.47 7, 4%. 56 13,285,921.44 3,416,380.85 Gross income. 75,239,416.11 17, 835, 163. 88 18,868,551.09 Operating e.xpense Handling and storage i Country storage Excess wlieat cost Miscellaneous interests paid . Interest on bills payable 3,400,918.33 8, 517, 159. 74 456, 169. 69 11,082,230.27 3, 210, 440. 26 13, 2.53. 49 3,436,011.23 1,560,317.44 2, 704. 36 266, 920. 47 3, 704, 771. .56 13,263.49 3, 060, 757. 08 1,555,002.67 266, 920. 47 Total expense . Net income 23, 456, 478. 03 8, 489, 647. 25 8, 600, 715. 27 51, 782, 938. 08 9, 345, 516. 63 10, 267, 835. 82 1 Includes insurance on reserve wheat stocks. The net income of the Grain Corporation up to June 30, 1919, aggregated $51,782,938.08. Of this amount, $28,138,975.15 was set up as a reserve for contingent liabilities. The remaining $23,643,- 962.93 was transferred to the surplus account. Payments were made from time to time by the Grain Corporation from the reserve for con- tingent liabilities. The aggregate amount paid out of this fund was $11,006,441.80. The remainder having been transferred to surplus, there were $40,776,496.28 income from the operations of the Food Administration Grain Corporation in the surplus on February 28, 1921. The accumulated net income of the corporation from date of organization to February 28, 1921, was $51,044,332.10. Kate or earnings on investment. — On account of the wide fluctu- ations in the amount of the monthly short-time loans, the commission used the monthly average loans, obtained by taking one-twelfth of the sum of the amount outstanding at the close of each month as part of the investment. The mean investment, consisting of one-half of the sum of the capital stock and surplus at the beginning and end of the year and the monthly average short-time loans, the earnings, including interest on borrowed funds, and the rate of earnings on investment for the fiscal years ending June 30, 1919 and 1920, are shown in the following table: Table 53. -Investment, earnings, and rate of earnings on investment for the two fiscal years ending June SO, 1919 and 1920. Fiscal year. Meaninvestment. Earnings. Rate. 1919 $369, 416, 046. 69 504, 349, 172. 72 $39,007,076.88 9, 612, 437. 10 Per cent. 10.55 1920 1.91 436,882,609.71 24, 309, 756. 99 5.56 UNITED STATES GRAIN CORPORATION. Ill Tlie rate of earnings on the mean investment including the monthly average short-time loans was a little over 10^ per cent for the year ending June 30, 1919, and only about 1.9 per cent during the fiscal year ending June 30, 1920, with an average of about 5J per cent for the two-year period. Earnings on iroducts sold, — For the purpose of this report it is desirable to show the earnings of the principal grains handled. In order to present such earnings the expensfes have been allocated to the different commodities on the basis of the gross earnings shown for each product. The following table shows the gross earnings, the expenses prorated on the above basis, and the net earnings by commodities for the period 1917 to February 28, 1921. Table 54. — Gross earninqs, expenses, net earnings, and other income for the Grain Corporation, September 1, 1917, to February 28, 1921. Item. Sept. 1, 1917, to June 30, 1919. Gross earnings. Expenses. Net earnings. Earnings from: Wheat $18,258,1.54.58 18,686,314.29 1,170,730.16 1,276,738.30 32, 457. 39 1,927,417.05 1,366.83 16,384,126.32 $7, 417, .59.5. 13 7,591,548.37 475,627.01 518,69.3.10 13, 182. 54 783,024.15 562.96 6,656,244.77 $10,840,559.45 11,094,76,5.92 695 103 15 Flour Barley 75S'045.20 19 274. 85 Corn '. Rye 1 144 392 90 Oats '803.87 Other commodities 9,727,881.55 Total 34,280,826.89 Other earnings: Guaranty and operating expense fund 12 211 896 61 Excess profits collected from millers (net) 4, 452' 296. 29 837 918 ''9 Interest received Total 17,502,111.19 Net earnings 1 51,782,938.08 1 Item. Earnings from: Wheat Flour Barley Cereal products Corn Rye Oats Other commodities . Total - Other earnings: Guaranty and operating expense fund Excess profits collected from millers (net). Interest received Total Net earnings. July 1, 1919, to Feb. 28, 1921. Gross earnings. Expenses. Net earnings $7,115,311.95 1,829,017.34 159,855.30 275,549.46 5,767,565.07 $3,309,672.45 S50, 750. 71 74,384.06 128,181.59 2,682,723.79 $3,805,639.50 978,260.63 8.5,471.74 147,367.87 51,841.28 8,101,587.02 7, 490. 56 2,1,58,752.24 2,106,248.80 10,267,835.82 112 METHODS AND OPERATIONS OF EXPORTERS. The earnings from wheat and wheat flour were larger than those for any other product, while the miscellaneous earnings from corn and oats were very small. The relatively large earnings from wheat and flour were due to the large volume of business in these products as compared with other commodities. As already stated, the Grain Corporation closed out its inventories of the different commodities between June 30, 1920, and February 28, 1921. The gross earnings in the above tables were obtained by combining the miscellaneous earnings, as shown on the books of the corporation, on each product in all departments and agencies with the exception of wheat. The item under " wheat settlement with the allies " was added to, and the item under " excess wheat cost " was deducted from the earnings on wheat. In arriving at the net earnings, the total expenses, including inter- est paid, are deducted from gross earnings on grain and other com- modities. As already stated, the allocation was made on the basis of gross earnings. The expenses consisted of operating expense and handling charges and storage, both of which apply to all com- modities. Interest paid, which amounted to nearly eleven and a half million dollars up to June 30, 1919, was practically all paid on money borrowed on wheat and flour held in storage under author- ity of Executive order of June 21, 1918. The amounts to offset this interest were included in the price of the commodities sold, and in some instances separate bills were rendered charging the purchaser with interest on reserve wheat stock, and even interest on " idle funds " covering purchases over a certain period, to offset the interest paid by the corporation. In this way the interest paid directly influenced the earnings, and is properly deducted from gross earnings. The handling and storage charge, however, includes amounts paid to grain elevators, under contracts relating to the guaranteed price of wheat, on grains which were never handled by the corporation; but it is impossible to determine how much of this should be charged to the guaranty and operating expense fund. The entire item was included in expenses deducted from gross earnings on commodities purchased and sold. Other income consisted of interest received, the credit balance of the guaranty and operating expense fund account, and the excess profiits collected from millers. None of these items resulted di- rectly from the purchase and sale of commodities. The interest received was interest on bank balances and bills receivable. The guaranty and operating expense fund was built up in part, at least, from items collected under the terms of voluntary agreements and license regulations incident to maintaining the guaranteed prices of wheat. The excess profits collected by the corporation from millers consisted of their profits in excess of 25 cents per barrel net on flour and 50 cents per ton net on feed manufactured. (See p. 107.) The net amount of excess profits collected from millers up to June 30, 1919, and included in the income statement prepared by the corpora- tion was $4,452,296.29, while the net amount so collected and paid into the United States Treasury on August 25, 1920, was $7,078,988.55. UNITED STATES GEAIlSr CORPORATION. 113 Section 7. Margins on grain sold. The Grain Corporation did not engage in business primarily for profits. Its original purpose was to expedite the administration of the food control laws. By the terms of the original food control act of August 10, 1917 " the President is authorized from time to time to purchase, to store, to provide storage facilities for and to sell for cash at reasonable prices, wheat, flour, meal, beans, and potatoes." The Executive order creating the Grain Corporation stated that " whereas in order to enable the United States Food Administration acting under the direction of the President to efficiently exercise the authority granted by said act, and to purchase, store, provide storage facilities for and to sell for cash at reasonable prices the commodities above named, and to enable said United States Food Administration to purchase and sell such commodities in the manner and by the methods customarily followed in the trade, it is expedient and neces- sary that a cori^oration should be organized." Later, as already stated, when a guaranteed price was established for wheat, the Grain Corporation was made the agent of the Government to carry out the provisions of the guaranty and directed to purchase and sell wheat in order to protect the Government against loss growing out of the guaranty. While, as stated above, the primary object of the Grain Corpora- tion was not to make profits, a margin was included in the selling price of the commodities purchased, which in the ease of wheat was 1 per cent of the actual cost, including the purchase price plus freight and actual handling charges. While the margins were usually small they were sufficient, together with other income, to build up a surplus of over $50,000,000 during the three years of operations. The following table shows the quantity of grains sold, the net earnings, and the margins per bushel by kind of grains and the margin per bushel of wheat equivalent on flour : Table 55.— Quantity, net earnings, and mar pin per iushel far the Crrain Cor- poration, hy grains, September 1, 1917, to February 28, 1921. Qrain. Sept. 1, 1917^uiie30, 1919. Quantity (bushels). 1 Net earnings. Margin per bushel. July 1, 1919-Feb. 28, 1921. Quantity (bushels).i Net earnings. Margin per bushel. Wheat Flour » Rye... Barley Corn . . Oats.. 260, 587, 941 217, 8.53, 059 28,500,093 10, 585, 671 2, 153, 093 21,004 $10, 840, 559. 45 11,094,465.92 1,144,392.90 695,103.15 19, 274. 85 803.87 JO. 042 .051 .040 .066 .009 .039 147,230,353 67,106,615 649, 733 2,720,330 $3,805,639.50 978,266.63 147,367.87 85, 471. 74 $0,026 .015 .227 .031 I Wheat and flour quantities from Supplement to Grain and Flour Statistics During the War, compiled by A. L. Russell, statistician of United Stales Grain Corporation. 5 Barrels reduced to wheat equivalent on the basis of 4J bushels per barrel. The net margin per bushel on wheat from the beginning of opera- tions by the Grain Corporation up to June 30, 1919, was 4.2 cents, while the margin for the period July 1, 1919 to February 28, 1921, was 2.6 cents per bushel. The larger margin during the first period was due in part to the purchase of a large quantity of Australian 114 METHODS AND OPERATIOlSrS OF EXPORTERS. wheat which was resohi in the United States at a good mar<^in of profit. The margin on flour sold was 22.8 cents per barrel, or 5.1 cents per bushel of wheat equivalent, during the first period of opera- tions; while- it was only 6.G cents per barrel, or 1.5 cents per bushel of the wheat equivalent, for the last period. The corporation, how- ever, received an average price of $11.28 per barrel for flour sold from July 1, 1918, to June 30, 1919, while the average was only $10.45 per barrel from July 1, 1919, to June 30, 1920. The margin on barley was 6.6 cents per bushel for the first period and only 3.1 cents for the last period. The margins on corn and oats sold during the first period were 0.9 of a cent and 3.8 cents, respectively, per bushel, while neither of these grains were sold during the last period. Rye was sold on a net margin of 4 centr per bushel during the first period. During the last period the margin on rye was 22.7 cents per bushel. This large margin was due to the fact that the entire sales were from stock on hand at the beginning of the period, which were carried in inventory at only $1.50, while it was sold for $1.97 per bushel. APPENDIX TABLES. Table 1. — Estimated world prodnctirm of icheat, by principal producing coun- tries, 1910-1921} [In thousands of bushels.] United States. Canada. Argentina. Australia. Year. Bushels. Per cent. Bushels. Per cent. Bushels. Per cent. Bushels. Per cent. 1910 635, 121 621, 338 730, 267 76.3, 3S0 891, 017 1, 025, SOI 636,318 636, 655 921, 438 968, 279 833.027 794, 893 17.8 17.5 19.3 18.5 24.8 24.9 17.2 31.7 36.8 3.5.3 29.0 26.6 132,049 230, 924 221, 1.59 231,717 161, 2S0 393, 543 262,781 233, 743 189,075 193, 260 263, 189 300,858 3.7 6.5 5.9 5.6 4.5 9.5 7.1 11.6 7.6 7.0 9.2 10.0 131,010 145, 981 166. 190 187, 391 113,904 169, 166 172, 620 80,115 184, 000 171, 591 214, 143 169, 756 3.7 4.1 4.4 4.5 3.2 4.1 4.7 4.0 7.4 6.3 93. 263 98, 109 73, 894 94,880 106, 600 25, 677 184.709 152, 433 114, 734 75,638 1911 2.6 1912 1913 1.9 1914 1915 3.0 1916 .6 1917 1918 1919 4.6 1920 1921 5. 7 1 144, 191 1.6 Total 9,4.57,534 23.9 2,gM,57S 7.1 1, 90.5, 867 4.8 1 1,210,10} ■ 3.1 Average 788, 128 234,715 158,822 1 100,842 1 British India. Russia.' Other countries. World. Year. Bushels. Per cent. Bushels. Per cent. Bu.shels. Per cent. Bushels. Per cent. Ibr^ 3.59, 6.54 375,629 ,370. .51 5 362, 693 312, 032 376. 731 323, 008 282,069 370, 421 280,485 377,888 250, 469 10.0 10.6 9.8 8.8 8.7 9.1 8.7 14.1 14.8 10.2 13.2 8.4 552, 067 346, 372 472, 390 656,324 833,639 826, 784 « (') (») (') (') 15.4 9.7 12.4 15.9 23.2 20.0 1,671,891 1,733.442 1,754,536 1,831,0,52 1,167.444 l,.30K 7. — Exports of barley and rye, including the flour of each, for the United States, calendar years 1910-1921} [In thousands of bushels.] Year. Barley. Rye. Year. Barley. Rye. 1910 8,263 3,555 8,195 12,782 18, 208 26, 529 51 31 501 2,034 8, 158 13,655 1916 22,486 17, 859 20,764 39,004 17,854 25,834 15,838 14 G89 1911 1917 1912 1918 ic' 308 1913 1919 40!494 59 253 1914 1920 1915 1921 3o'l46 1 Monthly Summary of Foreign Commerce of the United States Bureau of Foreign and Domestic Com- merce. Table 8. — Exports, imports, and net exports of oats, including oatmeal and rolled oats, for the United States, calendar years 1910-1921} [In thousands of bushels.] Year. Exports. Imports. Net Domestic. Reexports. Total. exports. 1910 2,833 3,698 31,296 7,573 36, 656 108, 195 105, 838 113,614 131,085 67, 570 16, 540 8,715 52 9 8 4 767 184 481 2 97 2,885 3,707 31, 304 7,577 37,423 108, 379 106,319 113,616 131,182 67,570 16, 549 8,984 754 100 3,263 13, 309 9,429 364 586 1,983 1,444 609 6,728 3,565 2 131 1911 3 607 1912 28*041 1913 2 s' 732 1914 27*994 1915 108 015 1916 105' 733 1917 111 633 1918 129 738 1919 66 961 1920 9 269 9*821 1921 5; 419 1 Monthly Summary of Foreign Commerce of the United States Bureau of Foreign and Domestic Commerce. 2 Excess of imports over exports. Table 9. — Imports, exports, and net exports of corn, including corn meal, for the United States, calendar years 1910-1921} [In thousands of bushels.] Year. Exports. Imports. Net Domestic. Reexports. Total. exports. 1910 44,072 63, 533 32, 627 46, 923 17, 018 50, 223 55, 237 57,011 47, 059 16, 002 21, 230 132,266 44,072 63, 533 32,641 ^6,916 17,010 50,305 55, 765 57, 136 47,118 16,067 22,172 132,325 44, 072 1911 11 913 5,005 15, 821 6,499 2, 155 1, 6.55 1,990 11,213 7,785 164 63 522 1912 it 23 22 82 528 125 59 65 942 59 31,728 1913 41,941 1914 1,219 1915 43,806 53,610 1916 1917 55,481 45,128 1918 1919 4,854 1920 14,387 132, 161 1921 ' Monthly Summary of Foreign Commerce of the United States Bureau of Foreign and Domestic Com- merce. 120 METHODS AND OPERATIONS OF EXPORTERS. Taij].k 10. — Domestic exports of principal (jrains by important ports or customs districts, calendar years 1919-1921. Port or district. Wheat. 1919. Galveston San Antonio New Orleans Baltimore Philadelphia New York Boston Chicago Michigan Duluth and Superior San Francisco Portland and Astoria, Oreg. Seattle and Tacoma Other ports Total . 1920. Galveston San Antonio New Orleans Baltimore Philadelphia New Yorlc ... Boston Chicago Michigan Duluth and Superior San Francisco Portland and Astoria, Oreg.. Seattle and Tacoma Other ports Total. 1921. Galveston : . San Antonio New Orleans Baltimore Philadelphia New York Boston Chicago Michigan Duluth and Superior San Francisco Portland and Astoria, Oreg... Seattle and Tacoma Other ports Total 280,057,601 BiLshels. 17, .587, 960 16, 0.58 12,785,563 2.5,501,321 31,517,322 39,131,060 9,351,179 489, 000 122 15 207 2, 520, 760 3,984 9,181,319 148,086,470 561,406 77, 045 695, 864 798, 338 684, 343 148, 606 174, 554 278, 767 262, 052 405, 888 5,715 289, 790 519,766 3S5, 200 218,287,334 122, 075 060, 170 031, 709 602, 542 443, 926 476, 576 183, 160 677, 072 696, 935 168, 200 38, 407 500, 263 962, 273 094, 293 Rye. Bushels. 300 8,493,883 8,69.5,885 12, 435, 503 9- 1,480 243, 922 255, 539 1, 135, 000 176 1,726,478 26, 898, 166 496, 713 562 177, 857 19, 679, 665 2, 280, 992 23, 488, 706 333, 759 525, 142 345, 096 7, 684, 589 370 2, 057, 037 57,070,488 1, 098, 501 650 1, 166, 361 11,604,219 1, 135, 125 6, 007, 807 347, 128 1, 662, 570 104, 467 4,060,348 32, 651 7,399 28,144 2, 556, 351 29,811,721 Barley. Busheli. 1,562,420 69, ,572 6, 926, 738 4, 062, 624 2, 303, 565 8, 334, 279 2, 517, 290 256, 982 570, 028 6, 134, 595 13 4, 873, 734 37,611,840 62,5,055 85, 113 5,949,073 735, 758 232, 538 4, 947, 659 45,112 106,519 "4,' 611," 083 93 516, 224 20, 933 165, 760 1,064,315 1,433,517 22, 303 4, 400, 365 89 52, 000 18, 366, 250 223, 156 78,410 6,902 25, 834, 000 Corn. Bushels. 3, 306 103, 143 1,2.33,081 810, 699 483, 649 1,196,374 1,761 898 91] 4,431,660 560, 432 5, 396 Oats. 60, 041 1,404,080 Bushels. .56, 180 15, 2.33 0,891,101 6, 129, S95 7, 649, 722 26,641,915 3, 524, 100 120, 925 2, 178, 188 168, 203 570 26,086 30, 034 1,861,727 Total. Bvshch. 19, 200, 866 20 1, 006 27, X36, 783 38, 998, 422 49,6.50,143 87, 739, 731 10,.m5,810 1,746,7.58 7,122,491 2,433,678 6,140,768 2,546,846 94, 848 19,047,338 11,186,533 82, 229 658, .510 1, 142, 998 1,623,402 700, 665 1,653,372 58, 854 648, 749 7, 800, 3S6 357, 128 2,106 223, 327 2, 809, 694 17,761,420 905, 620 7, 820, 8.50 13, 8.S3, 026 19, 089, 922 9, 796, 883 12,429,805 1,39,5,358 35, 956, 341 5, 974, 365 1,318,747 48,831 336, 299 19,118,458 55,294,479 I 279,077,488 1,500 13, 339 907, 06S 1,884,718 126, 160 7,884,700 85, 819 1, 348, 795 234 48, 833 21,221 30, 716 524, 771 12, 877, 874 25, 920 23, 857 543, 988 145, 143 317, 847 419 355, 107 129 5,531 22, 061 1, 505 , 782, 638 47, 766, 903 834, 569 56, 872, 860 51,721,881 21,024,698 74,123,043 4,698,098 8, 452, 658 9, 862, 848 15, 447, 839 4,667,737 12,311,011 3, 774, 272 12, 292, 926 323,851,343 94, 173, 049 9,071,287 73, 689, 399 48,775,343 26, 398, 237 41,232,035 6, 326, 430 50, 295, 983 7, 130, 963 12, 599, 424 18,491,670 37, 752, 879 6,406,631 35, 558, 642 467, 901, 972 1 Largely from Milwaukee, Wis. I APPENDIX TABLES. 121 Table 11. — Exports of wheat by kinds and principal ports of shipmetit, in six- month period, July, 1920~December, 1921 — Continued. [In thousands of bushels.] Hard red winter. Solt red winter. Hard red spring. Mixed. Port of shipment. Bush- els. Per cent. Bush- els. Per cent. Bush- els. Per ceut. Bush- els. Per cent. Of kind. Ofall kinds. Of kind. Ofall kinds. Of kind. OfaU kinds. Of kind. Ofall kinds. July-December, 1920. Portland, Me 279 4.84 48.95 291 667 9,340 3,317 2,363 123 19, 734 21,. 356 0.42 .96 13.48 4.79 3.41 .18 28.49 ;50.84 51 05 1,051 7,867 3.107 7,096 325 1.98 14.81 5.85 13.36 .61 42.65 665 2.51 18.36 18.41 41.94 .68 12.76 4.64 26.99 17.21 34.67 51. 95 28.66 8.44 3.32 27.07 New York 27.85 4,863 22.09 4,877 3:3.18 11.111 4,ii5 1,043 125 71.42 18.10 2.17 14.57 7.42 .58 33.06 Philadelphia Baltimore 2.3.58 11.05 Newport News New Orleans . . . 51.75 41.37 38.73 100.00 100.00 8.02 ISO 3,381 1,230 19.59 16,5651 31.18 14,. 340: 26.99 895! 1. 6F 49.29 57.70 Texas City Port Arthur 1,012 1864 1.91 1.63 Portland, Oreg 200 3.47 1.86 1 9, 710 2,366 14.02 3.41 90 12 185 .70 6.17 78.95 Total 53,122 100.00 33.17 26,492'l00.00 i 16.55 5,762 100.00 3.60 69,267100.00 43.27 January-June, 1921. Portland, Me 670 15.51 100.00 Boston 2 253 2,116 3,496 1,770 152 .0:3 3.25 27.17 44.88 22.72 1.95 100.00 3.61 26.53 51.99 5.62 .38 New York 806 961 509 27, 68:5 39, 307 8,275 1,471 567 1.01 1.21 .64 34.79 49.39 10.40 1.85 .71 11.50 12.05 7.57 87.92 99.24 99.21 100.00 3.98 698 2,135 445 16.16 49.43 10.31 9.96 26.77 6.62 5,157 2,6.54 2,118 1,983 150 66 19.92 10.25 8.18 7.66 .58 .26 Philadelphia Baltimore 33.28 31.50 New Orleans 6.30 Galveston .38 Texas City .79 Port Arthur Portland, Oreg 349 22 8.08 .51 2.45 3.53 113,323 419 51.47 1.62 93.57 Seattle and Tacoma 67.26 Total 79,579 100.00 67.35 7,789 100.00 6.59 4,319 100.00 3.66 2 25,884 100.00 21.90 Fiscal year 1921. Portland, Me 949 9.41 76.53 291 667 14, 497 5, 971 4,481 123 21,7)7 21,516 66 .31 .70 15.23 6.27 4.71 .13 22.83 22.61 .07 23.47 Boston. 1,051 8,673 4,068 7,605 325 44,248 53, 647 9,170 2,48:3 11,431 .79 6.51 3.07 5.73 .24 33. 34 40.43 6.91 1.S7 1.08 42.62 24.59 18.46 27.05 51.75 61.86 70.00 99.29 100.00 5.72 667 5,116 6,993 14, 607 ISO 5,151 1,382 i.95 14.92 20.40 42.61 .52 15.03 4.03 27 05 27.05 New York 14.51 31. 73 51.96 28.66 7.20 1.80 4,813 3,178 570 47.74 31.53 5.65 13.65 14.42 2.03 41.11 Philadelphia Baltimore 27.09 1.5.94 Newport News 19. .59 New Orleans :'\36 Galveston : .08 Texas City .71 Port Arthur Portland, Oreg 549 22 5.45 .22 2.20 .61 123,0:53 2,7&5 24.21 2.93 92.08 Seattle and Tacoma. 185 .54 5.11 76.93 Total 132, 701 100.00 47.69 .34. 281 100.00 12.32 10, OSl 100.00 3.62 2 95. 147 100.00 34.20 July-December, 1921. Portland, Me 35 359 2,983 685 1,953 39 16,940 35, 191 4. 893 2,1 SI 865 107 0.05 .54 4.50 1.04 2.95 .06 25.58 53.13 7.39 3.29 1.31 .16 36.84 100.00 19.16 4.48 21.03 20.42 72.98 98.64 100.00 100.00 3.81 2.10 60 0.56 63. IG Boston New York 1,486 2,899 6,164 9.08 17.71 37.65 9.55 18.90 66.38 3,349 7,247 31.43 68.01 21.52 47.40 5,457 3,151 618 15.10 8.72 1.71 35.06 Philadelphia Baltimore 20.61 6.66 Newport News New Orleans 5,530 220 33.77 1.34 23.83 .62 661 264 1.83 .73 2,85 Galveston .74 Texas Citv Port Arthur Portland, Oreg 21,303 58.94 4,686| 12.97 93.99 Seattle and Tacoma. 74 .45 1.45 92.08 Total 66,231 100.00 49.24 16,373 100.00 12.17 10,656 100.00 7.92 3 36, 143^100. 00 26.87 Calendar year, 1921. Portland, Me 35 359 3,789 1,646 .02 .25 2.60 1.13 4.58 99.45 16.78 7.07 730 4.87 95.42 Boston 2 1,739 5,015 .01 7.20 20.75 .55 7.70 21.56 New York 4,0-17 9,382 27.03 62.65 17.93 40.33 io.cii 5,805 17.11 9.36 47. 6i Philadelphia 24.95 1 Including Astoria. ' Including 14,000 bushels for San Francisco. •lucluding 3,000 bushels for San Francisco. 122 METHODS AND OPEEATTONS OF EXPORTERS. Table M.— Exports of itheat hy kinds and principal ports of shipment, in six- month period, July, 1920-Dec.emher, 1!)21. [In thousands of bushels.] Port of shipment. Calendar year, 1921- Contmued. Baltimore Newport News New Orleans Galveston Texas City Port Arthur Portland, Oreg Seattle and Tacoma Total Hard red winter. Bush- els. 2,462 39 44, (;23 74,49S 13, K-.S 3, rr-,2 1,432 107 145, 810 Per cent. Of Of aU kind, kinds 1.69 .03 30. 60 51.09 9.03 2.51 .98 .07 100. 00 15. 3S 20.42 81.58 98.96 99.50 100.00 3.88 1.87 57.70 Soft red winter. Bush- els. 9, OCO 7,30(1 372 74 24, 162 Per cent. 39. 9S 30.21 1.54 60. 34 13.35 .49 100.00 9.56 Hard red spring. Bush- els. Per cent. Of Of all kind, kinds. 2.97 2.33 .15 100. 00 2.78 Mixed. Bush- els. 2,736 2,644 414 I 34, 626 5, 105 * 62, 027 Per cent. Of Of all kind, kinds. 4.2C .(■7 .11 55.82 8.23 100.00 17.09 4.83 .55 .50 93.82 89.37 24.55 Common white. White club. Durum. Total. Port of shipment. Bush- els. Per cent. Bush- els. Per cent. Bush- els. Per cent. Bush- els. Per cent. Of kind. Of all kinds. Of kind Of all kinds. Of kind. OfaU kinds. Of kind Ofal kinds. July-December, 1020. Portland, Me.. 570 2,464 28, 252 14, 066 21,389 628 40,038 37,029 895 1,012 10, 774 2.997 0.36 1.54 17.64 8.78 13. 36 .39 25.01 23.13 .56 .63 6.73 1.87 100.00 Boston 81 2,067 1.77 45.29 3.29 7.31 12.24 3.24 100.00 New York 100.00 Pliiladelphia 1,7221 37.73 100.00 Baltimore. 694 15.21 100.00 Newport News. 100.00 New Orleans 96 61 31.89 20.27 0. 24 .16 262 32 43.96 5.37 0.66 100.00 Galveston.. . .09 100.00 Texas City 100.00 Port Arthur... 100.00 Portland, Oreg... 100.00 Seattle and Tacoma 144 47.84 4.80 302 50.67 10.08 100. 00 Total 301 100.00 .19 596 100.00 .37I 4.564 100. 00 2.85 160, 114 100. 00 100.00 January-June, 1921. Portland, Me 670 2 7,011 7,975 6,724 31,486 39, 609 8,341 1,471 14,2.39 623 .57 "5.' 93 6.75 5.69 26.65 33.52 7.06 1.25 12.05 .53 100.00 Boston ' 100. 00 New York 38 16 28.79 12.12 .54 .20 59 93 156 19.16 30.19 50.65 .84 1.17 2.32 100.00 Philadelphia Baltimore 100.00 100.00 50 37.88 .16 100.00 Galveston 100. 00 Texas City... 100.00 Port Arthur 100. 00 Portland, Oreg. 100.00 Seattle and Tacoma 28 2i.2i 4.49 154 100.00 24.72 100.00 Total 132 100. 00 .11 154 100. 00 .13 308 100. 00 .26 2118,151 100.00 100.00 Fiscal year 19Z1. Portland, Me 1,240 2,466 35, 263 22,041 28, 113 628 71, 524 76,638 9,236 2,483 25,013 3,620 .45 .89 12.67 7.92 10.10 .23 25.70 27.54 3.32 .89 8.99 1.30 100.00 Boston 81 2,126 1,815 850 1.66 43.64 37. 25 17.45 3.2s 6. 03 8. 23 3.02 100.00 New York 38 16 8.78 3.69 .11 .07 100.00 Philadelphia Baltimore 100.00 100.00 Newport News. . .. 100.00 146 61 33.72 14.09 .21 .08 262 32 34.93 4.27 .37 .04 100.00 100.00 Texas City 100.00 Port Arthur 100.00 Portland, Oreg 100.00 Seattle and Tacoma 172 39.72 4.75 456 60.80 12.60 100.00 Total 433 100.00 .15 750 100.00 .27 4,872 100.00 1.75 2 278,265 100.00 100.00 ' iBcluding Astoria. ! Including 14,000 bushels for San Francisco. 4 Including 17,000 bushels for San Francisco. APPENDIX TABLES. 123 Table 11. — Exports of wheat hy kinds and principal ports of shipment, in six- month period, July, 1920-December, 1921 — Continued. Common white. White club. Durum. Total. Port of shipment. Bush- els. Per cent. Bush- els. Per cent. Bush- els. Per cent. Bush- els. Per cent. Of kind. OfaU lands. Of kind. OfaU kinds. Of kind. Of all kinds. Of kind. OfaU kinds. Jnly-Dccember, 1921. Portland, Me 95 3.59 15, 5'-5 15,289 9,280 191 23,211 35, 675 4,893 2,181 22,666 2 5, 0S9 0.07 .27 11.. 57 11.37 6.90 .14 17. 26 26.52 3.64 1.62 16. So 3. 78 100.0 Boston. .... ■ 100.0 2,290 l,.3n7 524 1.52 SO 52.01 20.02 12.04 3.49 1.84 14.71 8.55 5.64 79.58 .34 100.0 Philadelphia 100.0 27 9.68 0.29 100.0 100.0 New Orlaens 100.0 100.0 Texas City 100.0 Port Arthur 100.0 Portland, Oreg 124 128 44.44 45. 88 .55 2.52 374 94 78.08 19.62 i.65 1.85 100.0 100.0 ' ' Total 279 100.00 .21 5 479 100. 00 .35 4, .353 100. 00 3.23 5134,514 100.00 100.0 Calendar year, 1921. Portland, Me . 765 361 22, ,576 23,264 16,010 191 54,697 75,284 13, 234 3,652 36,905 5,712 .30 .14 8.93 9.21 6.34 .07 21. 65 29.79 5.24 1.45 14.61 2.26 100.0 Boston. 100.0 New York. 318 16 27 9.24 3.89 6.57 .17 .07 .17 2,349 1,400 680 152 80 .50. 40 30.04 14.59 3.26 1.71 10.41 6.02 4.24 79. .58 .15 100.0 Philadelphia Baltimore 100.0 100.0 Newport News. . 100.0 New Orleans 50 12.17 .09 100.0 100.0 Texas Citv 100.0 Port Arthur 100.0 Portland, Oreg 124 156 30.17 37. 9R .34 2.73 374 248 59.08 39.18 1.01 4.34 100.0 100.0 Total 411 100.00 .16 6 633 100.00 .25 4,661 100.00 1.84 6 252,079 100.00 100.0 Source of data— Grain Standards Division, Bureau of Markets, U. S. Department of Agriculttire. ^Includine; 14,000 bushels for San Francisco. 6 Including 11,000 bushels for San Francisco. » Including 28,000 bushels for San Francisco. Table 12. — Estimated production of wheat, corn, oats, barley, rye, and buck- wheat in the United States, calendar years 1910-1921. [In thousands of bushels.] Year. Wheat. Com. Oats. Barley. Rye. Buck- wheat. 1910 635,121 621,338 730, 267 7&3,380 891,017 1,025,801 636,318 636, 655 921,4.38 968, 279 833,027 794, 893 2,886,260 2,531,488 3,124,74(5 2, 446, 988 2,672,804 2, 994, 793 2,566,927 3, 065, 233 2,502,665 2,811,302 3,208,584 3,080,372 1,186,341 922, 298 1,418,-337 1,121,768 1,141,060 1,549,0.30 1,251,837 1,592,740 1,538,124 1,184,030 1,496,281 1,060,737 173, 832 160, 240 223, 824 178,189 194,9.53 228,851 182,309 211,7.59 256, 225 147,608 189, .332 151,181 34,897 .33,119 35,664 41,381 42,779 54, 050 48,862 62,0.33 91,041 75, 4S.3 60, 490 67,918 17, ,598 1911 17, ,549 1912 19, 249 1913 13,8,33 1914 16,881 1915 15,056 1916 11,662 1917 16,022 1918 16.905 1919 14, .399 1920 13,142 1921 14,079 o UNIVERSITY OF CALIFORNIA LIBRARY Los Angeles This book is DUE on the last date stamped below. UCLA-Young Rcsen.ch Libiniy HD9036 .A5 1922b y L 009 611 725 4 '\/mwm^Mm^