'^IMS A2 
 
Cornell University Library 
 HD 9037.N9A2 
 
 Report of the Board of grain commissione 
 
 3 1924 013 914 795 
 
PUBI.IC DOCUMENT No. 37 
 
 RBPORT 
 
 OF THE J \ < ■ 
 
 Board of Grain Commissioners 
 
 TO 
 
 HIS EXCELLENCY, JOHN BURKE 
 
 Governor of North Dakota 
 
 BISMARCK, N. D. ^ 
 
 TRIBUNE, STATE PKINTEKS-AND BIND£1!S 
 , 1908 
 
Wl^^<^// 
 
 Cornell University 
 Library 
 
 The original of tiiis book is in 
 tine Cornell University Library. 
 
 There are no known copyright restrictions in 
 the United States on the use of the text. 
 
 http://www.archive.org/details/cu31924013914795 
 
RKP 
 
 OF THE 
 
 Board of Grain Commissioners 
 
 TO 
 
 HIS EXCELLENCY, JOHN BURKE 
 
 Governor of North Dakota 
 
 BISMARCK. N. D. 
 
 TRIBUNE, STATE PRINTERS AND BINDERS 
 1908 
 
REPORT OF BOARD OF GRMN COMMISSIONERS 
 
 . To His Excellency, John Burke, Governor of North Dakota : 
 
 Sir : The undersigned, appointed by yotir Excellency as a board 
 of grain commissioners,. under the provisions of chapter 1-29 of the 
 general laws of 1907, he'reby respectfully " submit the following 
 report and recommendations: 
 
 THE LAW. CHAPTER 139. 
 
 (See exhibit "A".) 
 
 ORGANIZATION OF BOARD. 
 
 Pursuant to the provisions of the statute providing for the ap- 
 ^pomtment and designating the duties of this board, we severally 
 qualified by executing a bond in the penal sum of five thousand 
 dollars, arunning to the state of North Dakota, and conditioned upon 
 the faithful discharge of our duties as members of said board of 
 grain commissioners, said bonds being on file in the office of the 
 secretary of state. 
 
 On Novemiber 14, 1907, we met in the city of Minneapolis and 
 organized by the election of Mr. A. R. Thompson, chairman, and 
 Mr. M. O. Hall as secretary of the board. 
 
 TERMINAL WEIGHING OF GRAIN. 
 
 The board immediately took up the matter of investigating the 
 system of terminSl grain inspection and weighing in vogue at Min- 
 neapolis, Duluth and West Superior, beginning their duties in 
 this respect, by an investigation of the state weighing system in oper- 
 ation at the city of Minneapolis. 
 
 - In pursuance of this the board repaired to the office of Mr. P. P. 
 Quist, state weighmaster of grain and informed him of their desire 
 and purpose. Mr. Quist, in his capacity as the chief of the Minne- 
 apolis weighing department, rendered efificient and accorhmodating 
 service to this board in pursuing their investigation. 
 
 We first inspected the office of the weighing department. On the 
 long counters we found spread out for the use of the public carbon 
 copies of the weighers' daily reports which showed in detail the 
 work of the, previous day, giving car numbers, initials, kinds of 
 grain, and weights. These reports also showed notations of leaks 
 or any other bad order condition of the cars which might have re- 
 sulted, or did result, in a shortage. When leaky cars are discovered 
 
REPORT OF GRAIN COMMISSIONERS. 
 
 a special report is made by the weigher, and the leak designated on 
 the reverse side of the written report which has a diagram of 
 a freight car. 
 
 Our attention was called to the Minnesota statute which requires 
 all shippers to place a caxd_aa-the grain- door of the car shipped 
 giving the out- weight, so th^t in case of a discrepancy as between 
 local weights and terminal weights, an immediate investigation can 
 be made to determine such discrepancy for it is very, obvious thkt 
 such an investigation will be of more value if made at once in- 
 stead of after days or weeks have elapsed. 
 
 If the name and address of the shipper appear on these shipping 
 cards, and the weighers report shows stichjcar to\be in bad order, 
 a letter is at once sent to the address given and' a copy of the weigh- 
 ers report enclosed which can be used in m'aking a claim against 
 the transportation company for the grain lost in transit. Mr. Quist 
 assured us, in this connection, that a just claim accompanied by 
 such an official 'report is hardly ever rejected by the transportation 
 companies, but usually settled promptly. We wish, to emphasize 
 the importance of this to our shippers, — of weighing the grain and 
 enclosing a card in the car showing the outweights, as a basis for 
 recovery in case of shortage. 
 
 Mindful of the report " niade by the North Dakota' Bankers' As- 
 ■fsociation, referred to in the preamble to the statute under which 
 ' we were appointed, we were quite concerned as to the application 
 of the so-called ' 'cu j^t.i.Q.ti-..gya±e.m ' ' and the manner in which it af- 
 - fected grain that was being elevated from the bottom to the top 
 of the elevator ; we have been informed that light grain and chaff 
 were taken out- of the grain by suction before it was weighed. Mr. 
 Quist informed us, that on all occasions before, the state established, 
 weighing service at an elevator or mill a complete test was madte by 
 the state scale inspector, not only of the scales and spouts, but that 
 • this test also included the suction system and no suction was per- 
 mitted to be placed in the scale hopper, or in any place where light 
 grain or chafj could be drawn out befort the grain was weighed. 
 
 A visit was made by our "board to elevator "C" at Minneapolis, 
 where -a test was made of the suction draft in our presence. At this 
 elevator we discovered that the suction draft, as we found it in 
 operation at that timie, took out only fine dust, chafif, an^d light- straw 
 substances. There was no-evidence that any. grain, or even foil! 
 seeds having any particular weight, were removed by this draft. 
 It was explained to us that the modern suction system, as employed 
 in the large terminal houses, was absolutely necessary to collect and 
 carry away fine and light dust, which is a menace to the health 'of 
 the employees and is also dangerous explosive, and that this suc- 
 tion system is required by insurance companies. 
 
 We next visited the electric steel elevator at Minneapolis, which 
 as the name thereof would indicate, is built entirely of steel having 
 round' steel tanks for storage pu,rposes. This elevator, being fire- 
 
STATE OF NORTH DAKOTA 
 
 proof -IS exempt from the Minnesota la^w which requires that all 
 grain stored ift-ptrWrc elevators • must be insured in favor of the 
 own£r) .thus saving a great deal of money, as the insuran-ce rate 
 on graiaJs«quite high. ' At this elevator we made a. very close in- 
 spection cif the system of weighing in vogue, which- is identical with 
 the system generally in operation at Minneapolis, Sueprior, and 
 Duluth. An assistant state weigher was stationed on the grotmd 
 floor of the elevator r his duty is to k€ep a record of the. seals of the 
 cars about to be weighed; he inakes a careful examination of the 
 car in order to detect any' bad order or leaky conditions, and it is 
 also his duty to see that the car is properly swept out after being 
 unloaded. He then notifies the state weigher, who is stationed in 
 the upper story, or cupola, of the elevator, that the car has been 
 unloaded and the contents thereof , elevated. The scales in this .ele- 
 vator as in most all other of the terminal elevators, are located' in 
 the cupola, most of them having a weighing. capacity of from 85,- 
 000 to 120,000 lbs. The scales are of the so-called "hopper scale" 
 variety. The scale beams are equipped with a register device,. which 
 prints the weight on the ticket. The scale hoppers are also pro- 
 vided with a Neale patent indicator, which is not only a check 
 against a leaky scale hopper, but against accidents and even dis- 
 ' honesty. In weighing the grain, after it is elevated into the hopper, 
 twfd-^men-are-cmployed, — one is a staie--weigher, representing the 
 state, and the other som£ .employ«fi»represnting the ' particular ele- 
 vator company, or mill, where the grain is being handled. Each 
 of these-nien keeps a separate record. They check up their weights 
 at the scale before the grain is dropped from the hopper with a 
 view that no error can be made, and especially when it is further 
 checked by the so-called automatic "tyip^-^^aate-r-^ ticket. ■ There 
 is also a device which indicates when the scale hopper iias been 
 opened, and which makes it impossible to receive other grain into 
 the hopper before tfre same has been completely emptied. When 
 the day's work is ^nded, the, state weigher makes out a full' report, 
 in duplicate, of his day's work, which is sent ■ to the state weigh- 
 master's ^ office, together with the automatic register ticket, where 
 they are again checked, by clerks with report sheets to detect any 
 error that may have been made in the report. This is done for the 
 purpose of still further insuring the correctness of the official cer- 
 tificates to be issued by the weighing departmtent. Thesecertifi- 
 cates- are issued, in tfee first itiStance-to- the xuns-^ee-TTf-tfiF grain " 
 in question, or upon application -ia-duplicate form to. any person or 
 persons who have any interest. in the grain .sajy.eighed. ^ 
 
 Our board next made a "visit to the Pillsbury "A" mill. Here 
 we examined into the condition of the cars that were standing in 
 the inill yard preparatory to being unloaded. Several of these cars 
 shqwed indications of having leaked while in transit, and where in 
 a condition unfit for carrying grain. Investigation proved that 
 state employees, had made this inspection and had made a complete 
 
REPORT OF GRAIN COMMISSIONERS. 
 
 record of conditions. The system of weighing in vogue at this 
 mill was also inspected, and was found to be about the same as 
 that at the elevator just described.' This mill has a daily- capacity 
 
 [of .seventeen thousand barrels of flour. 
 
 We next visited the ~ Phoenix mill, where the weighing of the 
 grain unloaded there was done on a track scale, also under super- , 
 vision of the state weighing department. The system in vogue 
 here we found to be this, — that the gross weight of a car and con- 
 tents were first ascertained, and then the grain is unloaded and the 
 eriipty car re-weighed to ascertain the tare, in no case is the sten- 
 
 ~«ii~wei^lTlr m'arked on the car taken for the . tare. No reliance is 
 placed on the stencil weight on cars. Moreover, at these track scales 
 all cars axe-detachedr f rom_ other .qars while being weighed. We .were 
 informed in this connection that about one-third of the different 
 stations where state weighing is in force at Minneapolis were 
 equipped with such track scales. These track scales are equipped 
 with the same safety devices and automatic registers that are used 
 on the hopper scales. 
 
 Our attention was called to the fact that all state weighers are 
 under five thousand dollar bonds, conditioned upon the faithful 
 and honest discharge of his duties as, such. Again, our attention 
 was called to the fact that aside from the constant scale supervision 
 by an experienced scale exipert employed by the state, the shipments 
 from elevators to mills, or from scale to scale, where state weighing 
 was in force were carefully watched with a vi^w of ascertainins; 
 whether these scales weighed the same. One of the purposes' of this 
 is to detect any scale getting out of order. 
 
 This practically concluded oUr investigation into the public weigh- 
 ing system at Minneapolis. A few days later, however, we re- 
 sumed, such investigation as to the system at Duluth and Superior, 
 and there we found that practically the same system was in opera- 
 tion, conducted in the same manner. 
 
 We found in pursuing this investigation that an unusually large 
 number of cajs are received at terminal poin to ' in-bft d-ordert "cars > 
 that are received in such condition that it is quite obvious that more 
 or less loss has been sustained while in transit; — losses that in most 
 cases perhaps should be born by the transportation companies, in- 
 asmuch as it is only right and proper that a transportation com- 
 pany should in the first instance furnish a car in good condition, and 
 'deliver its contents intact to the consignee. Responsibility for dis- 
 crepancies occurring while in transit shoiild be in most cases born 
 by the transportation companies. We also found that at Duluth 
 and Minneapolis, 85 per cent of all the grain was weighed on so- - 
 called "hopper scales". Furthermore that it appears that there is 
 a regular shrinkage of about S^-l-bsr-perHrhmisaiulJiuahels, caused 
 by hauling, as it is a well recognized fact that grain cannot be 
 handled without a loss when elevated and weighed in hopper scales^;', 
 it appears to this board that this is an injustice to the shipper, and 
 
STATE OF NORTH DAKOTA 
 
 we would recommend as an improvement to the present system of 
 weighing, and in perfect fairness to the shipper that all grain be 
 weighed on track scales before unloading instead o^ hopper scales. 
 
 MINNESOTAj LAW GOVERNING APPOINTMENT AND 
 DUTIES OF WEIGHMASTERS AND WEIGH- 
 ERS.— Revised" Statutes of 1905. 
 
 (See exhibit "B".) 
 
 We have not thegjuperior system governing the duties of weigh- 
 niasters, etc., but we understand they are practically the same as 
 the Minnesota system. 
 
 TERMINAL INSPECTION OF GRAIN. 
 
 Our board next took up the matter of terminal inspection of 
 grain, and in this connection made careful and diligent inquiry into 
 the system in vogue as to-^F;ade-awd"LO "T.lTC'kage. The Minnesota ter- 
 minal inspection system was established by an act of -tlie4©gislature in 
 iSS^-afid has been in operation since that time under the provis- 
 ions of the, general law, as amended from time to time. The ter- 
 minal inspection law was the out^^wt-h- of a -demand "3fi the -^part 
 of the farm gES pf M.m.o,PKQ,t3-..fnr a system different from commer- 
 cial inspection, which . obtained prior to the enactment of the Min- 
 nesota grain and railroad laws of 1885. Prior to this time the in- 
 spection of grain at the Minnesota terminals was in the hands of 
 men \\rho were appointed by the- chamber of commerce. It was 
 claimed by shippers that such an arrangement was too one-sided, 
 giving the purchaser of the grain practically the sole privilege of 
 fixing its-grade and its dockage. Under the present system the state 
 becomes tlie arbiter between the shipper and the buyer. As originally 
 established, this system was conducted almost entirely on the basis 
 of oittst de u i'TiJi' dju i' -ino p ect ion. When a carload of grain reached 
 the terminal market it was placed by the railroad company upon 
 special tracks called inspection tracks, which were provided for in 
 each railroad yard. A state grain sampler-appeared in the morning 
 as soon as it was light enough to see, accompanied by an inspector. 
 He first took a record of the car number and initials, also a record 
 of the number of the car seal, which he had to break in order to 
 enter the car. He then took a hollow brass tube, called a probe, and 
 by plunging this tube down through the grain to the bottom of the 
 car in five or mor« places he secured a fair sample of the grain 
 throughout the entire car. These several probes were deposited at 
 the, door of the car, from "which the inspector made his itispection, 
 and fixed the dockage. The sampler then re-sealed the car, keeping 
 a record of the state inspection seal, applied in place of the broken 
 railroad seal. ■ While a state inspector was determining the grade of 
 the grain in the car in question, a sampler employed by the cham- 
 
REPORT OF GRAIN COMMISSIONERS. 
 
 ber of commerce at Minneapolis, or the board of trade at Duluth and 
 Superior, also took a sample, which sample was turned over to the 
 consignee, of. the car for exhibition in. the chamber or board of 
 trade. The chamber of commerce and the board of trade also keep 
 a complete seal record. Such was the system originally employed. 
 'In later years the Minnesota^ railroad and warehouse commission, 
 who are charged with thfe supervision, by law, of the inspection and 
 weighing departments have made several innovations. The most 
 important is doubtless the one that there.i«-no- more car. door or 
 outside insJDection. All grain is now inspected inside. The grain 
 samipler; .instead of depositing the several probes of grain taken by 
 him at the car door, to be then and there inspected, now deposits, 
 them in a small sack, called a sample sack; in this sack, together 
 with the grain, he. places a ticket of the car on which has been 
 marked the number 6f the car and initials. The sample is then 
 taken or expressed to the state inspection, officer where, under light, 
 it is inspected by expert inspctors; the grain dockage, if there be. 
 any dockage, is then determined by means of apparatus adapted to 
 the work, consisting of finely adjusted scales and sieves of- differ- 
 ent ' kinds. 
 
 In the event that the shipper or the consignee is not satisfied with 
 either grade or dockage, , as the case may be, of the grain in the 
 car- in question, it is his privilege' to call foi::~a-xe»-ii--ispection,. The 
 grain is the»-a-t-®Hee-re~lns.pected. by the chief deputy inspector, or 
 hia assistant, using for their re-inspection purposes the same sam- 
 ple as originally based upon. In case either of the parties is still 
 dissatisfied with the re-inspection, it is- their privilege to call for 
 an ■• app eal, which means that the merits of the case willthen be 
 considered by the sta te ■■ boiwd of gr c a jil appeals, a board of' ■nine 
 members, — three of whom officiate at Minneapolis, three at Duluth 
 and three at Superior. ■ This is an entirely independent board being 
 appointed by the governor of the state, while the inspectors and 
 weighers are appointed either by the railroad and warehouse com- 
 mission themselves, or with their consent, by the chief inspector 
 of grain. In -Superior they are appointed by the state gfaih com- 
 missioners of Wisconsin. In case of ' controversy as to the 'grade 
 or dockage, a sample of the grain being submitted to the board of 
 appeals, an entirely new sample is ■ procured from the same car. 
 Thus, while the original inspector, and the' chief deputy inspector 
 reviewing his inspection, use the same sample, the board of appeals' 
 procures an entirely new sample frorn the same car. 
 
 In pursuance of the system of in-door inspection, and with a view 
 of expediting the disposition of cars upon arrival at tlie terminals, 
 thus alleviating the annual car shortage, the Minnesota Commission 
 have established sampling stations in interior towns in that state. 
 ^Thus, there is a sampling station at Wilmar, at, Melrose -at Cas.s 
 Lake, at Sandstone and at Staples. 
 
STATE OP NORTH DAKOTA 
 
 Grain samplers in the employ of the insp'ection department are 
 stationed at these places, which in all cases are division points. As 
 the grain eomes to these points, it is side-tracked and the state 
 samplers, together with the commercial samplers, obtain samples of 
 the grain in the same manner as indicated above. These samples 
 are then inclosed in a strong wooden -box securely locked, to which 
 thqre ^are two keys, — one in the possession of the sampling fore- 
 man at the interior point, and the other iri possession of the inspec- 
 tion office at Minneapolis, or Duluth as the case may be. The 
 sampks, when so secured, are sent by express to the terminal point 
 which is the destination of the cars of grain of which they are sam- 
 ples. It thus quite frequently happens that the samples are received 
 some time before the arrival of the car of grain that they actually 
 represent. This affords plenty of time for original inspection, and 
 re-inspection if required. In_ this manner all the preliminary details 
 are settled when the car arrives, and it can be immediately ordered 
 to. its final destination, thus assuring prompt unloading and dispo- 
 sition for further use. The grade and dockage given by the board 
 of appeals is final. • ' 
 
 Our board also found that the rules that govern>t]a.gy,.gKa,diiag and 
 dockiiig-.o.Lg-rain ^t_tlie.ierminals-- in -..Minnesota ai"e. estejjlished' at 
 :the beginning of each gxain year by the members of the board of 
 
 ■ ^ppeate. They are. charged by law with meeting ever>- year and estab- 
 lishing such grades, as in their judgment, the conditions may ,wa'r- 
 rant. As soon as the grade and dockage of any carload o,f grain - 
 has, been completed or finally determined, a certificate of inspec- 
 
 __tion is issued by the state inspection department. Thereafter the 
 carload of grain may be sold or delivered at any mill or elevator 
 for unloading. In this connection, we desire to state that it, is 
 also made the duty of the grain samplers during their work in the 
 rarlroad yards to make a careful examination of e^ch car of grain 
 with which they come in contact for the purpose of discovering any 
 leaky-*G6Maditions that may exist, and they are also charged with re- 
 porting to the office any indications on ,the surface of the grain in 
 the car which would indicate that any grain might have been re- 
 moved either by leakage or otherwise from such car. 
 
 In connection with this, the departments have, also established an 
 important branch of the state inspection and weighing system, that 
 of watching or patrolling the terminal yards, whereby cars loaded 
 with grain are continually watched while going- jthrough these 
 yards, in order; to detect leaky conditions that may exist, a.5 well 
 as to guard against pilfering. T-he terminal railroad yards -are 
 usually located in outlying districts where the vigilence of special* 
 watchmen is repuired. Very often leaky cars, are found and re- 
 ported by these special watchmen that would not show to be leaky 
 except when in motion, for cars often leak in the yards when being 
 switched about, which do not show any evidence of leakage when 
 standing still. A great deal has also been accomplished in this i-e- 
 
10 REPORT OF GRAIN COMMISSIONERS. 
 
 spect in protecting the property of shippers from pilferage, a loss 
 against which the local shipper would be almost powerless if it 
 occurred. These special watchmen cover the entire terminal sys- 
 tem wherever cars of grain are handled, and they also see to it that 
 cars are properly ssvept at the different unloading stations. These ^ 
 special watchmen, assigned to this patrol service, are empowered 
 with police authority. 
 
 The commissioners were treated with all possible courtesy by 
 the chiefs of -the respective departments both in Wisconsin and Min- 
 nesota, and they apparently had nothing to conceal. 
 
 MINNESOTA LAW GOVERNING APPOINTMENT OF 
 
 CHIEF INSPECTOR AND DEPUTY INSPECTORS 
 
 OF GRAIN. 
 
 (See exhibit "C".) 
 
 RULES ESTABLISHED ,BY THE RAILROAD AND WARE- 
 HOUSE COMMIS'SION GOVERNING AND REGU- 
 LATING INSPECTION OF GRAIN. 
 
 (See exhibit "D".) 
 
 • DUTIES OF DEPUTY INSPECTORS AND HELPERS: 
 '(See exhibit "E".) 
 
 HANDLING OF GRAIN AT TERMINALS. 
 
 Grain, after being inspected and weighed, at' terminals, is dis- 
 pnspdi.-^£-tur-_ gniTig- fft Tl l ills "'' tpr.rr.v»fti .. - 4^ynfpri Some of the 
 coarse grain is unloaded by teams from the car. Grain that goes 
 to the several mills, in most all cases, can be considered as sold 
 to these mills for manufacturing purposes, as it stands' to reason 
 
 . itliat a 'mill w0uld not buy grain that it did not intend to use for 
 
 'some purpose. As a matter of fact, over-g^^rer cent of all the ^ 
 grain that arrives at the terminals has passed from the original- 
 possession 'of the raiser of the grain, into the, possession' of the sev- ' 
 eraljia^ indepeijsie-nt, or fap«ers' elevators that operate the local 
 elevators on several railroads that lead to these terminals,' 
 
 Less than 5 per cent of the grain received at these terminals- 
 
 [ belongs to original shippers or farmers. Investigation at local mar- 
 kets shows that most all farmers raising grain dispose of the same 
 
 .at the local markets, -and thoLinterest in terminal, inspection, weigh- 
 ing, and prices, IS measured with the indirect effect of such condi- 
 tions. As these conditions are good or bad, they reflect themselves 
 back on the producers. The shipper of grain to the terminals, has 
 his option if he desired to temporarily store his grain, to patronize 
 either public or ,semi-.public terminal elevators. 
 
STATE OF NOIfTH DAKOTA • 1 1 
 
 The pi i ii i blir deawi tors are licensed as such and their Ijusiness is 
 under the jurisdiction and supervision of the railroad and ware- 
 house commission of that state. Dail^s-Keports are made from these 
 houses to the state 'warehouse registrar. These houses are not per-' 
 mitted to mix ...gf a i n :;'' o f---dtffe«'etrt-grad^-together. Wliile it is" per- 
 missible to niix_tlie--grai»-o.£-di-feren.t-©wners, the grade being the 
 same, it is not allowed to mix that of superior and inferior grades, 
 Thus, the identity of the grain stored is retained. It is inspected 
 iixiy the, state inspector, . and inspected -0i4t-tn~the same manner. 
 The weighing in and out is on the same plan, and under state sup- 
 ervision. These elevators Coffer an opportunity that independent 
 shippers and others may afford themselves of, who may consider 
 their grain to be of superior quality, and who desires to dispose of 
 the same by special sale or otherwise. 
 
 By utilizing these public elevators, shippers can, if they so desire, 
 prese wic t h ' (Hd. eTrtit]r-<»f.Aeir"-grain by speciajUbimiipg," the same; 
 this feature of special warehousing being given them by law. In 
 view of this, it is quite remarkable that so little use by shippers 
 is made of the public terminal elevators, particularly by those rais- 
 ers and shippers of grain who are fortunate in producing and own- 
 ing the higher grades. It would seem that they, above all others, 
 would take advantage of an opportunity to get the higher prices 
 that the superior grade of -their gain entitles them to. The latter 
 suggestion appears particularly pertinent, as it would effect North 
 Dakota farmers and shippers, who this board feels are the produc- 
 ers of the better grades of grain. 
 
 At the present time there is one of these public elevators at 
 Minneapolis and one at Diiluth. In addition to acquiring a IJiXtts^ 
 forthp proper conduct of their business, they are also bcaided to the 
 state of Minnesota in a sum sufficient to guarantee the performance 
 of their duties as pyJilic-JKar^iieMsemen, in accordance with the pror 
 vision of law. 
 
 In speaking of semi-public elevators we refer to those hoiises 
 where grain is inspected in and out by state inspectors, and also 
 weighed in and out by state weighers. There are a large number 
 of these houses, most all of which are owned by private parties. We 
 refer to them as semi-public elevators under state supervision of 
 grades and weights. This does not mean, however, that the iden- 
 tity of the grades of the grain going Into these- houses must ' be 
 preserved : that is optional with the owner of the grain. If he so de- 
 sires he can mix grain of , different -grades. These semi- 
 public houses handle a' great bulk of the grain that comes to the 
 tei-minals. While they hav-e public inspection- and- weighing, they 
 are private in operation, inasmuch as the grain they handle befongs 
 either ,to the -jgkyator, or to. ptixate. parties for whom they ware- 
 house and handle the same. 
 
 This is a phase of the terminal grain business that has been quite 
 generally misunderstood by our North Dakota shippers and farm- 
 
12 REPORT OF GRAIN COMMISSIONERS. 
 
 crs who seem to think that all the elevators of Minneapolis and Du- 
 luthare public houses., where the identity of the grain must be 
 Preserved as received. We here desire to strongly emphasize the 
 tlistinction that exists as between public and semiwpublic houses. 
 
 Ataother class of terminal houses that invited and engrossed the 
 attention of our board are the so-called grain hospitals or mixing 
 JoQUses. Of these there are quite a' number at the terminals. As ■ 
 their name suggests^ they make a business of cleaning, scouring and 
 mixing sjrain for profit. The grain that is not in a warehousable con- 
 dition is conditioned, smutty grain is scoured, grain of inferior 
 grade or of no grade is mixed with grain of better grades, to in-*- 
 sure the- market grade or cfuality. Wheat that is' too light in weight 
 for a certain grade, I's mixed with heavier wheat, so that' it may 
 acquire the proper weight. Smutty wheat, which in its dirty condi- 
 tion, would be unfit for human food is scoured or washed, and 
 brought up to a No. 2, or sometimes even a No. 1 grade. Foreign 
 seeds and foul stuff are removed from the grain; On the whole, 
 the grain hospital system is a business practice whereby inferior 
 an,d unjfiarketable graiii is improved and made marketable. That, 
 this process requires the mixing with the poor grain of some of the 
 better, or perhaps even the best grain, is admitted. ,' ■ 
 
 It suggests itself ta our board that the modern grain, hospital, 
 under proper supervision, would serve a good public purpose pro- 
 viding the profits they- made were indirectly reflected back to the 
 producer of the superior grade which they handled. These houses, 
 together with the mills and semi-public houses, are also the bene- -'- 
 ficiaries of the sale of the imm'ense amount of screenings or di'rty 
 grain. This brings us to that particular feature of our official duty 
 which requires that we shall "make full inquiries into the dockage'- 
 of grain and the expense of cleaning grain, and 'the disposition of 
 screenings, and their approximate value." Srreenings as here des- 
 ignated in the law, are^jif, foul stuff, and foreign seeds contained 
 in the grain, as raised and brought to market. It presents one of 
 the lamentable features of local disputes as between the seller and' 
 buyer. ' ■ 
 
 In thr-cariy—tftys when the farmers cleaned their grain, and 
 wheft, |)ecause of new and clean ground, there was little or no for- 
 eign stufif in the grain, there was no dockage. Later it became nec- 
 essary and today dockage is recognized as a necessary and legiti- 
 mate practice, and has been officially, sanctioned for years. Wheat, 
 flax seed, and rye are now' officially docked at the j£rminal. The 
 last few years have ghown a ■^i>«7Hfl*ge-4H«rase-m-4(Bckag as 
 would appear from the records. Thus, in 1904 the average dockage 
 was 21.1 ounces per bushel; in 1905 it was'l8.6 ounces per bushel- 
 m 1906 it was 27.9 per bushel; in 1907 it was J^a^ ounces per 
 bushel, and in 1908 39.2 ounces per bushel. This latter is the rec- 
 ord for the crop year ending Aug. 31, 190S. 
 
STATE OF NORTH DAKOTA 1 3 
 
 AH of this emphasizes the groAving importance of this feature of 
 the grain business. Not many years ago screenings or dockage 
 were of little. or no comimercial value, being burned, as a rule, under 
 boilers in engine room^ qi mills or elevators.. Today they are used 
 for various commercial pu'rposes ranging in value from $3iilXL-to~ 
 $15.00 per ton. ' 
 
 No absolutely reliable figures could be obtained^ that would give 
 the amount and value of such screenings. ' 'However, this board 
 did ascertain through reports received that the average, amount of 
 dockage taken at local elevators in the state of Minnesota was 
 about,-eky en huiidl ' < :L d bushels J-fc )r...t h e-yeg..f-&ftdtttg-Jtme-3fflfa, 1907. 
 There was at that time 1,723 local elevators in that state, and the 
 amount of 'dockage obtained by this average in that state in wheat 
 and flax, according to this average would aggregate 1,897,000 bush- 
 els, or approximately 57,000 tons, which at an average value of 
 $11.00- per ton would be^$g2JQa.aO. This represents only the oflf- 
 fall or dockage from wheat or flax. To this tliere would have to 
 be added. an estimate as to the probable amount and value of screen- 
 ings obtained by the cleaning of other grain, such as rye, oats and 
 barley. These figures and estimates are from Minnesota. 
 
 In our own state of North Dakota, owing to practically no regu- 
 lation, this board would feel warranted in doubling thp figures. 
 We have approximately the same number of local elevators in North 
 Dakota as they have in Minnesota. This appears to us altogether 
 the more remarkable when we consi'der the fact that the North 
 Dakota lands are much newer, and ought to produce, and in our 
 judgment do produce, cleaner grain than the long farmed- land of 
 Minnesota. In view of this we feel justified in estimating the com- 
 mercial value of the screenings' now practically given away by 
 North Dakota grain raisers at not less than $150,000 per year. 
 The North Dakota grain producer does not -only give away this vast 
 amount of screenings, but he is in addition taxed the regular amount 
 of fse%b± that accrues oh shipments of grain in which the same is 
 contained. It may appear impracticable but nevertheless the waste 
 of this immense amount of stuflf, which is suitable for food purposes 
 for stock, would suggest the idea that it should be kept at home, and 
 used by our farmers, instead of being given away and paying 
 freight on the same besides. 
 
 ' For instance, the . farmers' elevators, or |«ad.ep&ndent elevators, 
 or even the line elevators.- migJaA. eqwp4.li,ek»houses with cleaning 
 machinery,, so that these, screenings might be kept at home and prob- 
 ably ground into feed. Screenings, as now sold kt the terminals 
 are used principally for the^feeding of sheep and for the manufac- 
 ture of .food. Thousands of tons of feed are annually shipped in- 
 -to this state, and it would seem. to be an act of wisdom to retain our 
 own screenings right at home and use them for such purposes, in- 
 stead pfi shipping them to Minneapolis, Duluth, and Superior, pay- 
 ing the freight on same 'and then "shipping the manufactured feed 
 
14 REPORT OF GRAIN COMMISSIONERS. 
 
 back iHto this state, which seems to be the logical, or rather the 
 illogical consequences of our present system,. 
 
 MINNESOTA LAW GOVERNING AND REGULATING 
 PUBLIC ELEVATORS. 
 
 (See exhibit "F".) 
 
 TERMINAL GRADES AND CLASSIFICATION. 
 
 I Terminal grades, under the Minnesota laws, are established an- 
 |jiually by the state board of grain appeals., Formerly this was done 
 by the railroad and warehouse commission, but siiice 1899 this duty 
 , devolves on the- separate board, appointed by the governor of the 
 state, who are in.no wise connected with or responsible to the rail- 
 road and warehouse commission. We quote the law relating to 
 this board: 
 
 (See exhibit "G".) 
 
 This board in compliance with provisions in section 3063 of the 
 revised laws of 1905, did on September 3, 1908, estabJishthe follow- 
 ing grades of grain, which are known as Minnesota grades, the' 
 same to take effect from and after that date. 
 
 V ' NORTHERN SPRING WHEAT. . 
 
 ' (See exhibit "H".). 
 '^ ' DURUM— Macaroni Wheat. 
 (See exhibit "I".) 
 -• ' VELVET CHAFF WHEAT. 
 .(See exhibit "J".) 
 MIXED WHEAT. 
 (See exhibit, "K".) 
 BARLEY. 
 ; (See exhibit "L".) 
 FLAXSEED. 
 (See exhibit "M".) 
 Also the following manner of testing grain: 
 
 MANNER OF TESTING GRAIN. 
 , ',y(See exhibit "N".) 
 
 Quoting a prominent Twin City grain man : "Fixing price of wheat 
 by committee of chamber of commerce and.' spread in price of grade, 
 
STATE OF NORTH DAKOTA IS 
 
 is one of the greatest injustices in the grain trade." Our board 
 also inquired into the differences in price, as between the several 
 classes of wheat; there are three classifications of wheat, which af- 
 fect our state, naiTiely, that called Northern Spring Wheat, Durufn 
 or Macaroni Wheat, and Velvet Chaff Wheat. The latter wheat 
 as yet . has been raised in our state only in very limited quantities. 
 The raising of durum wheat has however, assumed large propor- 
 tions, the amount reported as being raised in 1907 being 18,822,630 ■ 
 bushels as against, 50, 658,389 bushels of northern spring wheat, as 
 reported to the commissioner of agriculture, by the several licensed 
 local elevators doing business in our state. 
 
 These figures sugest the importance that the raising of durum 
 wheat has assumed in our state, and our board felt justified and war-- 
 ranted in view of this, to make careful and diligent inquiries into 
 the terminal grading and prices, as well as into local grading and 
 prices, as they affected the disposition of this wheat. When we 
 began this investigation, we found that this wheat was being graded 
 under the separate classification at the terminals, namely that of 
 durum -wheat. Otherwise the inspection, dockage and weighing 
 is done in the same manner as that for other wheat. We also 
 found that there was a large difference in the price of this wheat 
 as compared with the corresponding grades of isrorthern Spring 
 wheat. 
 
 On- October 14, 1907 when we first took up this matter, the offi- 
 cial difference in price at Minntapoli's, between No. 1 Northern 
 spring wheat and No. 1 Durum wheat, was 17 3-4 cents. This we 
 believe was about the average difference that they obtained at termi- 
 nal markets during the grain season of 1^07. At this time, Novem- 
 ber 1908, the difference in price between No. 1 spring wheat and 
 No. 1 Durum at terminals is 16 cents. We also found that the dif- 
 ference at local markets in North Dakota as between Northern 
 spring wheat and corresponding grades of Durum wheat Avas ful- 
 ly as large, and sometimes even larger than the average, which we. 
 quote for the terminals. 
 
 In view of this fact, and of the generally recognized fact of the 
 superiority of the durum wheat, our producers are justified in in- 
 quiring and being informed, as accurately as possible whether this 
 ferere discrimination in these two classes of wheat is justified by 
 their flour makins: qualities and disposition as to sale,, etc. Our board 
 devoted some little time to making inquiries along this line, and in 
 pursuing: this course of this investigation, we had two objects in 
 view. First, to find out the "relative value of these two wheats, as 
 to their flour making qualities. In this respect we submit, together 
 with this report, several scientific tests that have been made bv 
 competent analytical chemists, one of whom is Prof. E. F. Ladd, 
 food commissioner of North Dakota, and the other test was made by 
 the Howa;rd chemical laboratofy of Minneapolis. 
 (See exhibits "P" and "Q".) 
 
16 REPORT OF GRAIN COMMISSIONERS. 
 
 The other object that we had in view, was to discover, if possi- 
 ble, what becomes of the Durum wheat when it reaches the terminal . 
 markets. In this respect we desire to say that it has been commonly- 
 reported , that the large mills of Minneapolis were grinding a great 
 deal of this durum wheat, together with northern spring wheat. 
 Our efforts to ascertain this fact from the poprietors of the mills 
 themselves, were only partially successful, although several of thern 
 did admit that they were grinding durum wheat. 
 
 From the chamber of commerce we obtained the following fig- 
 ures, takeri from the Northwestern Miller, as to recepts and. the 
 manufacture into flour of the following classes of Wheat, for the 
 crop year at Minneapolis ending Aiig. 31, 1907. These figures are 
 as follows. - 
 
 Bushels. 
 
 Spring wheat ■ 70,658,180 
 
 Duruni wheat , 9,900,550 
 
 Winter wheat , 13,106,850 
 
 Mixed wheat i 1,342,240 
 
 Western wheat 22,170 
 
 From the observations and inquiries that we made, and the in- 
 formation that 'we were able to obtain, we are of the opinion that^ 
 ' there is an uncalled for and unjusf price discrimination, as between 
 northern spring wheat and durum wheat. Inasmuch as this is a 
 subject intimately ' connected with the matter of inter-state com^ 
 merce, we would suggest that the federal government should care- 
 fully inquire into the local and terminal purchase of durum wheat, 
 and what becomes of the same after it leaves local markets! We 
 deem it quite essential to the proper protection of the grain grow- 
 ers, who are raising durum wheat, that they should receive the full 
 market value for such wheat as demonstrated by its actual flour or 
 food value. ' We are constrained to believe that at this time they 
 are not receiving such full value, but that large quantities of this 
 wheat are ibeing ground together with northern spring wheat, and 
 disposed of in domestic and" foreign markets for the full price at 
 value of northern spring wheat flour. , 
 
 In support of the figures given above from the Northwestern 
 , Miller, as to the consumption of durum wheat at Minneapolis, we 
 quote the following from the report of the secretary of agriculture 
 made to the president, for the year 1907. Speaking of durum wheat, 
 this report states : "T^venty million bushels of last year's ci-op were 
 exported to Europe. Of the remainder all except the Seed reserve 
 went rapidly into domestic consumption, chiefly for bread flour. It 
 is certain from official figures that over six milKon bushels were- 
 ground in Miiineapolis mills. Probably ten million bushels were 
 used in the country mills of the northwest. In Minneapolis a large 
 portion of this wheat was blended with hard spring, although con- 
 siderable amount of straight Semolina was made from macaroni 
 
STATE OF NORTH BAKOTA 17 
 
 factories. In the country mills a considerable quantity of pure 
 durum wheat flour was_ made." ' ' 
 
 In a bulletin issued by Secreary Wilson March 1908 after he had 
 sent a special -representative to investigate durum wheat in .Minne- 
 apolis, be Sctys "Fully -ten million bushels, of durum wheat are ground 
 and nuxed_.iith_dome.sticJiQur~-at4ftBneapolis." 
 
 It apepars from this, that the federal government has already 
 made a beginning in investigating the disposition and use of dur- 
 um wheat for domestic purposes, and this investigation ought to be 
 continued until it can be ascertained where every bushel of this wheat 
 grows, and for what purposes it is tised or sold. 
 
 If this be true, and we believe it is true, then some way or 
 means should be 'devised which would afford to the raisers of dur- 
 um wheat that correct price to whirch they are entitled. During 
 the' present year the Minnesota board of grain appeals has estab- 
 lished another classification of wheat, namely that called "velvet 
 chaff wheat." This is a comparatively n€w variety of wheat, and 
 while the same has been grown in Minnesota and South Dakota for 
 some years it has as yet not been, very much in our own state. .How- 
 ever, it is quite probable thg,t in the course of a few years, on ac- 
 comit of its hardiness and superior yield, it will be extensively 
 rg.ised in North Dakota. Up to the present year this velvet chaff 
 wheat was mixed by local buyers with their northern spring wheat 
 and disposed of as "such. Millers grinding the same claim to have 
 discovered a perceptible, inferiority as .between, this , and the blue 
 stem variety and mainly at' their request, a' new classification was 
 established. 
 
 The difference in the price of the corresponding grades of Nor- 
 thern spring wheat and velvet chaff at this time, is 6 cents per 
 bushel.' We- are not prepared to ^tate as to whether or not this is 
 an unjust discrimination, as we have stated in regard to the dif- 
 ference in prices bet^yeen durum and northern spring wheat.. How- 
 ever, we beheve also that in this , instance careful" investigation by the 
 'federal government ought to establish the correctness or incorrect- 
 ness of the difference in price. 
 
 While perhaps not strictly germane to the duties and function's 
 of this board, "we assume the liberty of briefly stating the modus 
 operandi in vogue .at. the terminals "as "*to*flie"purchase and sale qf 
 grain. This, business is , conducted almost entirely through the 
 agency of the Minne.apolis Ghanrbef- of Commerce and the Duluthi 
 and Superior Boards of Trade. These are organizations of men 
 engaged in the grain' business for the purpose of facilitating such 
 business, .organized on the theory that a large volume of grain that 
 finds its way to these terminals, necessitates-some'CehtraFpIace where 
 the same,, or samples thereof, can be presented for sale, ^and where 
 seller and buyer can meet advantageously, to mak&. the trades and 
 purch^ises which- their business necessitates. This_board ij. willing 
 to go on record as not favorablejo-sp- called chambers of c ommerce 
 
 — 2— 
 
18 eepoTj-tof grain commissioners. 
 
 and boards, of trade, JjytOTtil some, better system, is, adopted' they 
 must be tolerated. ,. 
 
 These organizations employ grain -samplers, whose "duty it is to 
 accorHpany- the-st-ate-graiH-sampl-ars, and to procure proper samples 
 of the grain in cars which are about to be inspected. These samples 
 are presented on tablf s H n rin g the _Q.pe.ri-sfijis.u-in.s of the chamber 
 of commerce or board, with an official tag affixed showing what the 
 state- inspection -was as to sH€h car. This affords a reliable way of 
 presenting and selling the several cars of grain, as they are received 
 from day to day. The sales so made by members of these organiz^.; 
 tions, whose charge is J_xent per bushel for all kinds of grain €x-' 
 cept oats, for which a charge is made of .1-2 cent per 'bushel. No 
 discrimination is made in the sale of grain, the shipments of indi- 
 viduals receiving the same attention from the commission meii who 
 are members of these organizations, as those of larger concerns. 
 
 A complete neeo r d i s ke p t- of afrsates-as- to time, place, and price, 
 and from this record, can -be ascertained at any future time the, ex- 
 act price for which any carload of grain may have been sold in the 
 past. - These organizations also exercise care as- to the, financial 
 standing of, the several members connected therewith who do a 
 commission business, and who solicit consignments of grain from 
 shippers. -.,,..■ 
 
 WHAT ATTORNEY GENERAL YOUNG OF MINNESOTA 
 
 IS DOING. 
 
 In reference to the marketing of the grain raised in North Dakota 
 it would be proper to state that an action has been commenced in 
 the courts of Minnesota by the attorney general, the. decision of 
 which will greatly affect the rights of the people of this state. 
 
 When the Farmers' Exchange- was organized a few years ago one 
 of its objects was to secure the marketing of the grain of Minne- 
 sota and the Dakotas in such a way as to secure the best results 
 to the producers. For that purpose it was proposed, if possible, to' 
 have a rqjxssmtatLsje^-f-t-he- organization on the floor of the cham- 
 ber of commerce at Minneapolis and the board of trade at Duluth 
 to handle the grain of those belonging to the organization. There 
 was also a provision in the constitution that the net profits arising 
 from the business at the end of the year should be distributed among 
 the members pro rata. This organization started business _by open- 
 ing an office at Minneapolis, and another at Duluth. They were 
 tujaiieto obtain a membership at either- place. on the grain exchange 
 mainly because of the provision in the charter of the company that 
 the net profits plthe business was to be divided among the producers 
 who composed this. There is a rigid rule in force at the chamber 
 of commerce at Minneapolis, and also in the board of trade at Du- 
 luth, prohibiting any member fronr doing business with an out- 
 sider for less than, a fixed commission for services and also prohib- 
 iting any member from making advances to ' shippers for less than 
 
STATE OF NORTH DAKOTA 19 
 
 a-fixed- rate Jaliuterestj.'to be .xl£.terau««d in- each ^Te by the board, 
 with a provision that if any member should cut the rates of- com- 
 mission, or rates of interest, he should besubject to_a.fine of a thous- 
 and dollars and expulsion from the ehamber or board as the case 
 may be. By reason of this rule, the Farmers' Exchange,- though it 
 received large shipments of grain. from North Dakota and Min- 
 nesota, -was unable to make anv profit on the business because it 
 was required to pay the same commission to the member of the 
 chamber for handling it that any other shipper was obliged to pay, 
 and this without regard to the volume of business that it furnished 
 the commission house. It is, of course, unnecessary to say that no 
 one but a member can sell grain on the floor either of the chamber 
 of commerce or the board of trade, and that all the grain business 
 of Minneapolis is confined to thechamber 'of commerce, and all of 
 the grain business of Duluth is confined to the board of trade, except 
 the sale of such coarse grain as is needed for home consumption. 
 
 The action that has been brought by the attorney general of the 
 state of Minnesota and is now pending in the supreme court of that 
 s-tate is one wherein it is claimeds-tbait-tbe-^pfaeti-ee-crf the board of 
 trade at Duluth, which.., rpq uirps all thi?--m&oibexs--tn charge the 
 same rate. of. commission and the same .rate of interest xm. advances, 
 and prohibits them from competing with each other either as to 
 commission or interest rates, Js a violation, of the anti-trust Jaw of 
 the state^ ,.If. this action is decided in 'favor of the state, as it is 
 hoped it will be, it will go a long way 'towarjl restoring an open 
 market at both Duluth and Minneapolis, and will permit the mem- 
 bers of the 'grain exchange to compete with each other for busi— 
 tiess by charging only such commission for their services as is 
 reasonably compensatory, and not such commissiori as the board of 
 trade may insist upon. jGetwp'ctrtTcm— between- the members would 
 naturally reduce the commission charge, and the interest charge 
 very much below what they are now, and will effectuate a great 
 saving to the grain producers of the states of Minnesota and Nerth 
 Dakota. , ■ 
 
 The attorneys who have handled this litigation on behalf of 
 the state are Attorney General Young,' Assistapt Attornev General 
 ■Royal A. Stone, and Assistant Attor-ney General, Geo. W. Peter- 
 son. 
 
 LOCAL WAREHOUSING, GRADING, DOCKAGE AND^ 
 WEIGHING OF GRAIN. 
 
 While the act under which this board was created and appointed 
 did not contain any dire'ct provision for an dnvestigation of local 
 elevator, and grain conditions, in this state, we - nevertheless felt 
 it our duty that in order 'to present a report we be at least fairlv 
 complete as -to any existing unsatisfactory commendations that it 
 would be necessary for us to give sofne little attention to local con- 
 
20' REPORT OF GRAIN COMMISSIONERS. 
 
 ditions, being limited as we were by a smell appropriation and by 
 a time limit of fifty days, during the year 1907, we found it impos- 
 sible to devote as muph time as we should have desired in making 
 an investigation of local elevator conditions. Finding no provision 
 in the law governing our appointment, giving us such authority 
 we presumed upon the good will apd official authority of the rail- 
 road commissioners of this state, whom. the law charges with the 
 supervision of local elevators, and who in their capacity as com- 
 ntissioners have access to the books and records of such elevators. 
 This authority on the part of the commissioners was secured through, 
 the good offices of Your Excellency'. 
 
 In this manner «we were given an opportunity to make careful 
 investigation of the grain business as conducted by the several local 
 elevators af different ,pbints in this state, and while - we are riot 
 prepared to insist that the business transacted by the several local 
 warehouses at these several stations would be. an absolutely fair 
 criterion of the local grain business of the state of- North Dakota, 
 still we believe that it is fairly so, and that the result of our inves- 
 tigation in this respect, indicates Yeiy.,.,_grave and serious, locai 
 trouble s that should receive carefullegislative consideration. 
 - In this respect we take the liberty to suggest that'; while the law 
 makers of our state cantiot go beyond its borders in the matter 
 of regulation, modification, or change of systems of inspection, 
 be they under federal or state control, they can and have full pow- 
 er to remedy any local troubles- that are found to exist and whicli 
 in our judgment seriously impair the prosperity of the grain 
 growers of our state. Local elevators are modern means of re- 
 ceiving and handling grain. Our laws have designated them as 
 public elevators. They, are public in this sense, that their busi- 
 ness is subject to public supervision and regulation. Our laws 
 define fairly well what their functions and privileges are, as well 
 as the privileges of those for whom they transact business. 
 
 There appears to be rather well, defined opinion prevailing that 
 the business of an elevator man,- as far as- the iuuadlmg and pur- 
 chase of grain, is one and the san^e. This, however, is a mistake. 
 ■Public elevators in Jvforth Dakota, as defined by our law, are licensed 
 for the-4iandlkg-,-&te-ragerand-shipment of grain, nnf. fgr-^-he-pttr" 
 cli a s a .. a f t he ■« & »!«. The bu^^Hg^awl-^sUiag:. of grain is an entirely 
 diiteseijt-matter and one which at all times should remain open to 
 any person or persons who desire to engage in such business. The 
 fact that the public elevator man is fortunate enough to receive at 
 elevator site on or off a, right of way, does not in any manner en- 
 title him to a monopoly of the purchase of grain. His business, as 
 defin' d by law, is to receive, store and deliver grain at the option 
 of the owner th-ereof, for a stipulated compensation fo.r such 
 s{'rv,>.c 
 
 All of our laws are predicated on this proposition. It is assumed 
 that elevator sites be granted and elevators erected commensurate 
 
STATE OF NORTH DAKOTA 21 
 
 with the locjfl amount of grain tributary to such stations and "that 
 the amount of grain received by the several houses, will 
 rpasonably compensate them by exacting the, legal charge which is 
 provided for the handling, storage and insurance of grain. When 
 this is followed by such houses, no just complaiflt can be made. 
 However we are constrained to believe that t he local eleva tors of 
 North. Dakota a re not moving within that reasonabk limit which 
 termin al g'rades. t ermmal dockage/ terjliinal prices and the freight 
 rate between Jtgnninal and leeart points would suggest. 
 
 Gur deduction in this respect is based upon this proposition which 
 we believe to 'be fair and reasonable to both the producer and the 
 local elevator man. First, our grain practically all going to the 
 Minnesota and Superior terminals, it is necessary that it be re- 
 ceived, graded and docked locally on a basis of such inspection and 
 dockage. As long as this system prevails, we are bound to con- 
 form to that as a reasonable commercial necessity. In the states 
 of Minnesota and Wisconsin this is obligatory on the local elevator 
 man. There they must conform to the terminal grades, and it 
 clearly ought to be made the obligation of every local elevator 
 man in the state of North Dakota to do likewise, as .long as these 
 systems prevail. Moreover l&eaJ-^pices- should "be fixed~and gov- 
 erned bjL_taiasiiiial-"p«ces, minus freight charges, regular.v.£i&vator 
 charges, charges for terminaljjaspection, switching_^and.weighing, 
 and such reasonable charges for a c ommission to.^ ell the grain upon, 
 arrival at the terminals. These facts, all of which can be easily 
 ascertained at all times through the method of price quotations in 
 the publfc press and through information at the several freight 
 ofifices, ought to make the margin of ..difference in price that should 
 exist between terminal and local marekts. That such is not the 
 ca^e at this time, or that such was not the case a year ago, we 
 ascertained quite fully in the limited investigation that we mad'- 
 as to local inspection, dockage, wei'gning and price conditions. 
 
 There are also indications of overages in loscal warehouses, but 
 we are -not prepared to state whether the same occurred by rea- 
 son of overdockage or incorrect weights. In either event, this is 
 a loss to the producer. In the matter of local prices paid, we dis- 
 covered what is perhaps the, greatest factor through which the local 
 producer sustains loss, namely, undsc-payment as compared with the 
 terminal prices. 
 
 It would be difficult from the limited investigation that we made, 
 to fix any very definite amount as to what this loss may amount 
 to on an average, but it would appear to range anywhere from 
 o qg to. - tea-cents per biashel, according to the presence or absence 
 of local competition, as ,the case might be. We repeat that , it is 
 our opinion that some remedy can and should he here applied by en- 
 forcem'ent of existing laws or by the enactment of new laws that 
 have this end in view. While it is manifestly impossible to enact 
 laws giving any one authority to fix terminal or local prices, it 
 
22 REPORT OF GRAIN COMMISSIONERS. 
 
 would appear however to be of necessity that effective means should 
 be provided for by legislative enactment that would make it pos- 
 sible for the producer to escape unprofitable market conditions, at 
 local markets to which they are contributors. 
 
 Cor rect local dockage and weights we believe can be established 
 land enforced by competent and thorough local supervision, and 
 lit is not ^impossible to compel terminal delivery of grain handled 
 through local houses by individual shippers for the purpose of se- 
 curing correct terminal prices. If this avenue of escape is-legall)! 
 esta1)lished and opened to the North Dakota grainproducer, it will 
 enable hi'm to evade the necessity of selling his grain at local points to 
 local buyers, unless the price they offer him is satisfactory. 
 
 It appears to this board that such a law would be only fair and 
 right, and would have a tendency to effectively remedy existing 
 local troubles. The very fact that the producer could circum- 
 vent and get away from conditions that did not suit him, or which 
 in his judgment were unreasonable and unfair, would of necessity 
 bring about better conditions. We enclose detailed exhibits of 
 our local investigation. 
 
 Before dep'arting from the matter of local investigation, we feel 
 that we are justified in appending a few suggestiojns relative to 
 the local grain business in our state. From figures received from 
 the commisisoner of agriculture we find that the farmers of North 
 Dakota produced a total of 110,000,000 bushels of grain during 
 the crop season of 1907. The loss or gain of a cent per bushel on 
 this grain means $101,000 as the case might be. This amount is 
 easily lost or gained by favorable or unfavorable conditions, nor is 
 there any guarantee that such loss would stop at this figure. 
 
 AH of this suggests that every provision that human ingenuity 
 can invent, should be employed to insure such reasonable protectioq 
 to the North Dakota grain growers as they are reasonably entitled 
 to. Grain raising and the profits resulting therefrom are the pres- 
 ent and future basis of prosperity in this state. We are essentially 
 an agricultural or grain growing people, and anything that in any 
 manner detracts from the profit that rightly belongs to and should 
 go to the rrtan who raises the gr^in, is detracting from the pros- 
 perity and reward to which the farmer is entitled. Recognizing 
 this fact, we again emphasize the ugent necessity of better and more 
 stringent local regulation and supervision. 
 
 It is not enough that local warehouses should be bonded and 
 licensed for the proper performance of their business as public 
 elevators. It is also necessary that some one with full and proper 
 authority should, from time to time, inquire as to how well they 
 comply with the laws -already enacted for their government in regu- 
 lation, and those which hereafter may be enacted. In other words, 
 the laws governing this business should be enforced and that can 
 only be done by keeping in official contact with the several places 
 
STATE OF NORTH DAKOTA 23' 
 
 of business, in order to ascertafn whether or not they are doing 
 
 aright. ' ' 
 
 As to the method for stich local supervision, that is a matter that 
 should occasion careful legislative considefation and inquiry. Per- 
 haps the division of our state in districts might afford a reasonable 
 plan, and then to carry out this work it will of course require a col- 
 
 . lection or appropriation of the necessary funds. All of these funds 
 should be acquired by tax or a lic£nae_ilona--febe->ottes-esgaged in 
 tlip ^r^w, iV)i|(^jnpc^g^ op.;t..-^.r/-.iiir| be manifestly unfair ta tax such 
 as are not engaged in the grain business, for the protection of those 
 
 ' who are. At the utniost it would be a small tax, and one that we 
 feel certain would repay it many times over in a short time. Ex- 
 perience in'otber states has demonstrated the usefulness of careful 
 Ipt^nJ MliprrviTJinn , and there is no reason why the same benefits 
 should not manifest themselves in this state. In this connection, we 
 suggest another idea, and that- is c , nmpM ] e f> ty ,. anraua - l " Feports-£FG i m ' al l 
 
 InraTpW^l^rir ^^pn-d./Atn.cf KiisJMPCc in .thic etifp TllCSe reports sllOukl 
 Rbnw -t^e ar^Q]^^ t- nL ..aj:ah^Jc»c4> u3^d ., .j3£a Ki...a'^^ dockagE and 
 
 disposition.. of .tli£-Saiue,_also the- terminal iaieighiy..^fKade and dock- 
 
 This would enable those who are in charge of the department 
 of supervision to ascertain with reasonable accuracy ■ as to how 
 well local eleyator men do conform to terminal conditions. 
 
 RECOMMENDATIONS. 
 
 REQUIRED LEGISLATION. 
 
 After careful inquiry into the provisions of our state laws which 
 now apply to the regulation of local grain business in this state, 
 our board arrived at the following conclusions in a general way 
 as to the required legislation ; part of the suggestions herewith 
 'made are covered by existing law, and others will require the en- 
 actment of a new law: 
 
 First. ' The enactment of a general law covering all the subjects 
 herewith alluded to, and then repealing existing laws that cover 
 "the same subject, would be the practical way to solve this proposi- 
 tion. In our judgment the proper supervision .and, regulation of lo- 
 cal grain, business for this35Jat&«j;S6|««*9- alaw that first should 
 embrace official jurisdiction and supervision. The railroad com- 
 tnission of this state should be given full power to regulate and 
 supervise. &£. local, ,a§^jK.eIl. as any' terminal, grain business estab- 
 lished under. our Jaws. 'I^ey should issue all,, He.cnses required by 
 ' local or terminal elevator men, and they should be given full power 
 to revoke or annul such licenses for cause, also to receive, pass up- 
 on and accept or reject the bonds executed by elevator men under 
 the requirements of the law. 
 
 Second. The supervision and regulation of the local and termi- 
 nal grain business of this state will cause more or less expense. 
 
24 REPORT OF GRAIN COMMISSIONERS. 
 
 This should be born by those directly engaged and interested in the 
 grain business. The most practical way to raise the money so re- 
 quired will be from a gKuiuaiedJliGeBse i ee to_be.p_^id by the local 
 elexatan-iueH-iff'accordance with the capacity of the elevator which 
 they operate. The money so collected should be gathered into a 
 special fund to be known as the "state grain fund", and out of this 
 should be defrayed wholly, or in part, the expense of local and term- 
 inal grain supervision. 
 
 Third, by legal enactment there should be established and defined 
 what shall constitute £ublic_lo_caLaiid- ter-mmai- elevators;. Termi- 
 nal elevatprs should 6e established by purchase, or lease, at- terminal 
 citjes on th£_iiiairL_Eail?ead-14nes immediately adjoining the Minne- 
 sota l>orderj_or . at Miimeapolw, Duluth, and Spuerior. Under pub- 
 lic local elevators should be defined all elevators and warehouses 
 in which grain is received, stored, shipped or handled, which are 
 situated on the right of way of any railroad company, of adjacent • 
 thereto to be used in connection with its line of railway at any sta- 
 tion or siding other than at such places within the state which may 
 have been designated, as terminal' markets ; also all elevators and 
 warehouses where grain is received, stored, shipped, or handled, 
 situated at any boat landing, on any river within the state. 
 
 Fourth, the enactment of a law providing for a .legal form -of 
 elevator or. stnrage . re e eipt f or-gfamr- This act to provide for a uni- 
 form form of receipt to be used by all public local elevators in the 
 state. One of the features of said receipt to be the compulsory 
 delivery of -grain stored at the initiatory elevator, or at a terminal 
 elevator, at the option of the holder of the receipt. Also the enact- 
 ment by law of a form of surrender receipt to be issued to. the 
 holder of storage receipt upon a surrender of the same to a focal 
 elevator man together with a demand for terminaV delivery of the 
 grain covered by such eceipt; 
 
 Fifth, the enactment of a law providing for .the appointment and 
 employment by .the railroad commission of this state of a competent 
 5cale_expj£j: or experts, who shall' have power to inspect and report 
 as to the condition Of scales used in public local or terminal eleva- 
 tors within the state, the commission to have power to condemrT 
 scales found to be unfit for use or out of order, and to prohibit 
 the^use of any such scales' until properly repaired. We believe this 
 *° °^J^'; better than the method now employed which requires the 
 sheriff of each county to perform this duty. 
 
 Sixth the enactment of a law providing for annuaLieaorts of 
 all the business, transacted ^-by" local -elevator men and of daily oi 
 weekly reports of business transacted by terminal elevator men such 
 reports to be made to the railroad commision, and bv them kept on 
 file for the inspection of all parties interested. Also a provision 
 made in such law for weekly reports of all receipts and shipments' 
 made by local warehouseman during the period from August 1st 
 in each year to November 1st of the same year, these repor s to 
 
STATE OF NORTH DAKOTA 25 
 
 show the amount of" graig rec eived during the preceding week of 
 all kinds and its grade. Also the amount of c b ckage applied, also 
 the amount of grain of all grades shi pped, and destination, giving 
 -date of shipment, number and mitials of the car. The commission 
 shall during this period employ some person whose duty it shall be 
 to ascertain the terminal grades, dockage, and sale price of such 
 shipments for the purpose of comparison of local grades, dockage 
 and sale prices. This law also to contain a provision for sepcial 
 reports at any time the commission, in their judgment, deem such 
 special report necessary. ~ - 
 
 Seventh, the exaction of an adeq uate bgi id from all partiqs en- 
 gaged in the local or terminal elevator business.. Such bond to be 
 given for the faithful performance of thetr duties and obligatiori,3 
 as public elevator men, and to be graduated in amoimt in accord- 
 ance with the volume of business to be transacted. 
 
 Eighth. A law providing for a sys t e m -e f " pti bfeity under which 
 the raitroadJC£iiH»fissi©n--shall -acquire and keep on. file, or publish, 
 as in, their judgment ,may.seem-»g6©ssary. Constant knowledge of 
 tjpi'n pri/r-pj^ ?g--poJ.tLat j:.ko. several'4eeai-and'~teTminar markc'ts. 
 
 ISTinth.. The enactment of a law providing for pexaonal,, xifficial 
 su-peradsien of the lacal.anrl ■•tp.rminaiJa4*stness of -this state, either 
 by the memibers of the. railroad commission- themselves, or by such 
 agents and experts as they may ^employ for such purpose. The com- 
 mission, or its agents to have full power to enter upon the premises 
 of any local or terminal elevator and to cause such elevator and the 
 business thereof, and the mode of conducting the same, to be in- 
 spected whenever in their judgment such inspection seems proper, 
 and for such purpose all such elevator property, its books, records, 
 accounts and papers, shall at all times during business hours be sub- 
 ject to such inspection. The necessity for such local supervision 
 and inspection suggests to our board the advisability of dividing the 
 state into two or more districts and putting these districts under 
 the .supervision of individual members of the commission, or of 
 agents whom' they find it necessary to employ for such purpose in 
 order to exercise more diligent and constant supervision. 
 
 TERMINAL ELEVATORS. 
 
 One of the perplexing propositions referred to this board by the 
 act providing for our appointment and defining our duties is the 
 matter of terminal elevators. The state qf North Dakota is un- 
 fort'^nately so situated geographically that it does not contain within 
 its borders such large _ commercial points, .that by virtue of -their 
 ecographjcal location, or because of transportation- centralization, 
 ypj„U|- u^ A^^;^„-,i-^A ^c^ ff^Ymm?\]<Va(\yy!fi'*'^ The real terminal mar- 
 kets for the grain raised in Nnrth naknta are mitsidt^. g;!; n^^r stat-^ 
 and terminal regulations at these points are impossible because of 
 their location' outside the jurisdiction of our laws. Whatever regu- 
 lation might be attained at these points would necessarily have to 
 
26 REPORT OF GRAIN COMMISSIONERS. 
 
 be with the courtesy and consent of those in charge of the govern- 
 ment and regulations at those points. 
 
 We have given this matter a great deal of thought and considr- 
 eration and have decided to recommfend the leasing of terminal 
 1 elevators at MinneapoHs and one at the head of the lakes. In 'con- 
 \nection with this recommendation we consider it our duty to re- 
 port an incident of Minnesota legislation of the same nature, which, 
 while it may detract from the feasibility and practicability of our 
 recommendation in this respect, we nevertheless feel ought to be 
 brought to your attention, and to the attention of the legislature 
 which would have to take proper action in this matter. 
 
 In 1893 the legislature of Minnesota enacted a law providing for 
 the purchase of a site and the construction thereon and operation 
 thereof through its railroad and warehouse commission, of a terrh- 
 inal- elevator at Duluth, the same to be of a capacity of 1,000,000 
 bushels. This site Was duly purchased by the Gommission and 
 they were about to let the contract for the construction of an ele- 
 vator when they were stopped by injunction proceedings com- 
 menced by a citizen of that state in an action entitled "Rippe vs. 
 Becker" in the district court of Ramisey county, Minn. The dis- 
 trict court held in favor of the state but on appeal was reversed by 
 the Minnesota supreme court, "Rippe vs. Becker 56, Minnesota 
 100." 
 
 The Minnesota supreme court held that the state through the 
 act in question was preparing to engage in the grain business and 
 that this was in conflict with the constitution. The court affirmed 
 the right of the state to "regulate" such business, but not to engage 
 m It. The site so purchased is still owned by the state of Minnesota, 
 but no further attempt has been made by the legislature of this 
 state, or by its railroad and warehouse commission to engage in the 
 grain business. 
 
 We state this fact for the purpose of bringing it to the atten- 
 tion of competent legal authority as to whether or not our constitu- 
 tion allows our state to engage in the grain business. Should it be 
 found that such is the case, and that the constitution of 'North Da- 
 kota, the same as that of Minnesota, would prohibit our state from 
 •engaging in such business, then our board would recommend the 
 designation of several cities in our state near the Minnesota bor- 
 der, as terminal markets and that the elevators situated at such 
 points be defined and declared to be public terminal elevators. 
 
 COST OF TERMINAL ELEVATOR. 
 
 Our committee inquired into the matter of cost of purchasing or 
 building a termmal elevator as per instructions in the law providing 
 for our appointment. The cost of purchasing or building would 
 perhaps be very nearly the same, taking into consideration the 
 depreciation of old terminal elevators which are for sale As to 
 
STATE OF NORTH DAKOTA 27 
 
 the cost of a new building, it would, at this time approximate 
 the following figures : 
 
 Elevator to be built of^ iron or concrete, 1,000,- 
 000 bus. capacity, 30c per bushel $300,000 
 
 Iron or concrete, 1,500,000 bus. capacity 25c per 
 bushel 375,000 
 
 To build elevators of the same capacity, the material being wood, 
 would cost less, or approximately from 12 1-2 to 15c per- bushel, 
 accofding to the -capacity, about one-half of their cosf in iron or 
 concrete. 
 
 As to the cost of the -site — that is a matter that varies according 
 to the location. In this respect our committee ascertained that 
 adequate and well located sites can be purchased at from $1,000 
 to $10,000 per acre. ' ' ' 
 
 In 1893 the railroad commission of the state of Minnesota under 
 direction of a statute which had then been passed, purchased a termi- 
 nal elevator site at Duluth. This site is still in possession of the state 
 It is advantageously located, and comprises two acres of ground. 
 The purchase price of this site at that time was $17,000. It has nev- 
 er been used and we have an oflfgr from the state auditor of Minne- 
 sota for the purchase. of this site. However, before such sale could 
 be consummated it will require legislative sanction, and a previous 
 appraisal by some authority from that state. 
 
 OPERATING EXPENSES AND MAINTENANCE OF TER- 
 MINAL ELEVATORS. 
 
 We find that the expense of maintenance and the operation of a 
 terminal elevator will be about $3,600 per month. To this, however, 
 must be added the expense for fire insurance, liability insurance, 
 boiler insurance, and taxe^. The operating expenses would be 
 divided somewhat as follows: 
 
 1 superintendent, per month : $ 200.00 
 
 1 foreman, per month 100.00 
 
 1 engineer, per month 75.00 
 
 1 mill wright, per month 85.00 
 
 2 weighers, per month 170.00 
 
 1 fireman, per mo:pth .■ \ 65.00 
 
 1 electrician, per month 90.00 
 
 2 sweepers, per month 100.00 
 
 g workers, per month , . . .j 500.00 
 
 1 watchman, per month 60.00 
 
 100 tons of coal per month 450.00 
 
 Office expense, per month ._ 250.00 
 
 Stationery, per month 10.00 
 
28 REPORT OF GRAIN COMMISSIONERS. 
 
 If such a house is to run.day and night the time expense will in- 
 crease accordingly. In the event of operating a terminal house, or 
 houses, under a lease, the expense of course would he relatively, the 
 same, exceptiiig the payment of taxes. In connection with the fore ■ 
 going we here" desire to report that there was offered to our com- 
 mission a terminal elevator with a capacity of 950,000 bushels, con- 
 structed of wood, in good condition, situated adjacent to the trans- 
 fer yards in the city of Minneapolis,_ together with five acres of 
 ground, all in modern running condition, for $160,000. 
 
 While complying with provisions of the law as to ascertaining the 
 cost of building or purchasing a terminal elevator, our board after 
 full, and mature deliberation and in view- of the uncertainty as to 
 whether it would be as feasible and practicable for a state to'engage 
 in the gram business, and after consulting with various grain pro- 
 ducers in our own. state, who are interested in this project, we have 
 decided to recommend the lease of terminal elevators, — one at 
 Minneapolis and one at the head -of the lakes as an experiment in 
 this respect. We regard this as the safer method, in vi'eW of the 
 fact that it will be an experiment. Should this prove satisfactory, 
 it will not be difficult in the future to procure a site, erect terminal 
 houses, or acquire such site and elevator by purchase. The expense 
 of leasing such houses will be about 4 per cent of the Cost of the 
 building. 
 
 , In another place in this report we have described the business 
 of the so-called grain "hospitals" or mixing houses. The improve ■ 
 ment of grain by this process- has become quite modern, and in our 
 judgment permanent, and we would suggest that the benefits of 
 thus improving grain ought to be within the reach of farmers and 
 shippers from our state. With this end in view, we would suggest 
 the acquireaieD±-o-F-«pefatietua£-gxai]i-4w5pitals,--^one to be at Min- 
 neapolis, and the other at the bead of the lakes, to be operated in 
 connection with our terminal elevators. This would afford an op- 
 portunity for our North Dakota farmers, or shippers, who are un- 
 fotunate to come into possession of or raise smutty grain, or whose 
 grain has been damaged by inclement weather, or who have not the 
 facilities for cleaning grain before delivering same, at the local 
 market, to ship their grain to these. houses for the purpose of im- 
 provement, they to become the beneficiaries of the increased market 
 value by reason of such improvement, and to be recompensed in a 
 reasonable manner for the off-fall from such grain. 
 
 We inquired into the cost of cleaning and improving grain at 
 these houses, and found that such cost ranges from 1-2 to 2 l-2c. 
 per bushel, according to the condition of the grain handled. - For 
 original cleaning the usual charge is from l-2c to Ic per bushel, 
 but if it becomes necessary to scour or wash grain, the cost is ma- 
 terially increased, being from 2c to 2 l-2c per bushel. However, 
 in view of the largely increased market value of grain treated in 
 this fnanner, it is quite obvious that still larger profits should ac- 
 
^TATE OF NORTH DAKOTA ^9 
 
 crue to those who would avail themselves of the opportunity of 
 thus improving their grain. 
 
 FEDERAL GRAIN INSPECTION RECOMMENDED. 
 
 This board, after very carefully considering "the "matter, haVe no" 
 hesitancy in endorsing the federal inspection of grain, and believe 
 if it became law, vi^ould be more satisfactory than any^ of the pres- 
 ent systems. The. following are a few of the reasons. 
 
 First. ^ Federal inspection if adopted would establish a uniform 
 standard of grades over the entire country, and, there would not 
 be the friction which now exists. by' reason of the different systems 
 now in vogue. Illinois, Kansas, Missouri, Wisconsin, and Minne- 
 sota all have different systems and standards, of grading. _ Under 
 federal, inspection the -trouble now arising frorh so many dififerent 
 systems would be obviated. 
 
 " Second'. As has been stated before, 95 per cent of the grain raised 
 by the farmers of No'rth Pakota is disposed of at local elevators, 
 where no system of inspection and dockage prevailed, but on the 
 contrary every local buyer adopts his own standard. ■ Under fed- 
 eral inspection the producer would get the benefit by bringing the 
 inspection, within his reach. 
 
 Third. On' investigation we found that the present system of 
 delivering grain for export on contract grades, or certificates of in 
 spection issued by the Minnesota inspection department, have proved 
 very unsatisfactory to the foreign buyers, and also works a hardship 
 on the North Dakota farmer for 'the reason that the grades .inspected 
 out for export -are inferior to the grades inspected into 
 terminal elevatofs, and the price paid for the inferior ' grades, 
 'fixes the price on the better grades raised by the North Dakota, 
 farmer. We believe that the federal inspection would correct this 
 wrong. ' ' 
 
 Fourth, federal inspection would tend to restore the confidence of 
 the grain girowers Wf North Dakota, which has been sadly lacking 
 under the present system of dockage and inspecting grain at the 
 terminal markets. For this, and other reasons which might be given, 
 we strongly endorse federal inspection and urge the people of -North 
 Dakota to use ev^ry effort to get -a federal inspection law passed. 
 
 As further evidence,' we wish to quote Senator McCumber, the 
 author of the federal inspection bill now pending: in congress. (See 
 page 260 hearing before the committee on agriculture and for- 
 restry U. S. S.) : ' ' . 
 
 "Now, that same carload is taken intb the eleVator. The pur- 
 chaser has bought it at a grade less than it is worth. He does', not 
 send that same carload on and finally sell it at the same grade 
 a'broad. He mixes it with three carloads of No, 3 or No.' 4 and 
 he ships that abroad (or to the consumer) as No. 1. He did not 
 even pay for it as No. 1 in"the first instance, but he has mixed it 
 and sent it abroad. When it gets over there they will give only. 
 
3\) 
 
 REPORT OF GRAIN COMMISSIONERS. 
 
 we will say, a No. 3 price for it; 'but the shipper has got in three 
 times as many bushels of No. 3 and No. 4. He has paid for the 
 -other stuff that he put into the No. 1 only 50 cents or 60 cents a 
 bushel. Then the consumer over there refuses to pay the N0..I 
 price. He pays us a No. 3 price.. ' That makes ajl of our No. 1 
 grain— what is really No. 1 grain — sell for what would naturally 
 be the No. 3 price when you compare it with the number 1 of 
 other countries. 
 
 I wish to insert here another table, taken from the records of the, 
 .weighing department of the State of Minnesota, showing the 
 amount of each grade, weighed in at, the amount weighed out of, 
 the elevator at Duluth during the years 1903, 1903, and 1904. The 
 table is as follows: (From annual reports Minnesota grain inspec- 
 tor for years named, Duluth weighing department.) 
 
 WHEAT. 
 
 
 Years endinB August 31st 
 
 Grade 
 
 1902 1903 
 
 1904 
 
 
 Received 
 
 Shipped 
 
 Received 
 
 Shipped 
 
 Received 
 
 Shipped 
 
 No 1 hard 
 
 593,806 
 15,187,012 
 19,693.454 
 7,035,133 
 - ' 892,241 
 2,561,595 
 
 648,607 
 
 19,886,137 
 
 15,178,999 
 
 1,971,355 
 
 94,626 
 
 468,922 
 
 1,628,681 
 
 21,905,842 
 
 11,625,037 
 
 1,300,553 
 
 1.890,093 
 
 966,170 
 
 1,746,712 
 
 23,606,721 
 
 7 638,201 
 
 297,794 
 
 77,62* 
 
 112,840 
 
 90,543 
 
 12.401,897 
 
 10,295.172 
 
 a2,616,065 
 
 2,350,303 
 
 2,586,843 
 
 109,528 
 
 
 18,217,789; 
 
 
 0,723.732 
 
 
 a283,299 
 
 Rejected 
 
 314.139: 
 256,943 
 
 
 
 I have not the record for the subsequent years, but this will an- 
 swer the purpose. I call your attention especially, that in 1903 
 15,000,000 bushels of No- 1 Northern were received and about 20,- 
 000,000 bushels of No. 3 northern were shipped out. At the same 
 time 20,000,000 of No. 2 northern were shipped in and about 15,- 
 000,000 bushels shiped out. In other wards about 5,000,000 bush- 
 els of No. 2 northern changed immediately to No. 1 as soon as it 
 was entered into the elevator. 
 
 I now read the letter to the president. It reads : 
 
 (See exhibit "O".) : 
 
 CONDITION OF CARS. 
 , DULUTH TERMINAL INSPECTION & WEIGHING,- 
 
 1908. 
 
 Sept. Oct. 
 
 Grain door leak . ., 932 635 
 
 End door leak 854 184 
 
 Side door leak .^, 373 21 
 
 End leak , 994 
 
 Roof leak 9 
 
 Corner leak 149 3 
 
 Bottom leak ,. 72 23 
 
STATE OF NORTH DAKOTA 31 
 
 Door post leak 36 
 
 Center pin leak 3 
 
 Drawbar leak 36 
 
 Side door open 139 
 
 Grain door open 12 
 
 End door open : ... 173 
 
 Side door oflf 38 
 
 End door off 5 
 
 Leak in side of car 313 
 
 No seals on end 1034 385 
 
 No hasp ; 80 
 
 Patched ' 109 931 
 
 No seal on side 633 
 
 Doors open 338 
 
 Broken seals ■. 57 
 
 Total number of leaks 3898 
 
 ' : Total number of leaky cars 3044 4818 
 
 WISCONSIN GRAIN AND WAREHOUSE COMMISSION 
 
 SUPI^RIOR, WISCONSIN. 
 
 Condition of cars receiyed during October 1908. 10,533 cars re- 
 ceived. ^ , . 
 
 The following figures show the condition of cars weighed by 
 Wisconsin, North Dakota ' weighers during, the month of October, 
 1908; 4833 in leaky condition as follows : 
 
 Grain door leaks •. 3479 
 
 End leaks '. '..... 1760 
 
 - Side leaks 807 
 
 Corner leaks 445 
 
 Draw bar leaks 340 
 
 Bottom leaks . 7^ 
 
 (Report made on all new work of this kind whether done before 
 or after grain was loaded, to be determined upon shipper and rail- 
 road company). 
 
 Cars reported newly nailed, patched or cleated .... 1163 
 Cars with leaks stuffed with rags, waste, paper or 
 
 grass . . . ■ } 44 
 
 Cars showing depression in grain line i . . . 13 
 
 Reported in bad order on end or sides '31 
 
 Reported as having been loads from wrecked cars 2 
 
 Evidense of having been, repaired, en route 4 ■ ' 
 
 Car with no side doors ' ^. 53 
 
 No .end doors 4 
 
 With side door nailed 10 
 
32 REPORT OF GRAIN COMMISSIONERS. 
 
 SEAjL RECORD. 
 
 Cars no end seals .....' ]. . . . JL038 
 
 No side seals ' '. . • • 503 
 
 Broken ' seals 'i 117 
 
 Cars end' doors' open • 155 
 
 Cars side doors open 113 
 
 (Signed.) H. A. Juneau, 
 
 Chief Weighmaster. 
 
 We also wish to state in this connection that there is now in. 
 operation at Superior, Wisconsin, a system of inspecting docking 
 and weighing of grain, under the supervision and laws of the state 
 of Wisconsin, of which any shipper of grain can ayail himself, if 
 he so desires. The chief inspector is a North Dakota man,- and 
 our state is also represented by one of three of the. state board of 
 grain commissioners, as well as' One member on the board of ap- 
 peals. Any one shipping grain to the head of the lakes, not being- 
 satisfied with Minnesota inspection, can get the Wisconsin inspec- 
 tion by calling for it, or he can obtain both if he wishes by paying 
 for the same. 
 
 This gives the shipper the option of choosing between the two 
 systems, consequently he is not compelled to -accept the standard 
 adopted .'by one, but on the- contrary can avail himself of one or 
 both if he so desires! In calling attention to this matter, this board 
 intends to be perfectly non-partisan but- deems it their duty to state: 
 these facts for the benefit of the North Dakota shipper; ' 
 
 We are attaching to this report a letter from the commissioner 
 of Minnesota, Mr. C. F.^ Staples', relative to the commission mer- 
 chants law. (See exhibit "R".) ' ^ 
 
 This finishes our report, Your Excellency-, and' in . conclusion wc 
 wish to say that while the time allotted to the investigation was not 
 in proportion to the magnitude of the undertaking, however, we 
 sincerely hope that our labors have not been in vain.- Realizing as 
 you do that we were iiot allotted with any authority by law, where- 
 by we could demand certain important things in our investigation 
 you at once appreciate the difficulties under which we labored. 
 Notwithstanding all this, we believe we have accomplished, some 
 practical results, and we trust that ydu, the legislature,, and all the 
 people of our state, will appreciate and profit by them. 
 
 A. R. Thompson, 
 
 Chairman. 
 M. O. Hall, 
 
 Secretary. 
 E. D. Washburn, ' - • . 
 Board of Grain Commissioners 
 
 For North Dakota. 
 
"STATE OF NORTH DAKOTA 33 
 
 EXHIBIT A. 
 
 The law. Chapter 139. 
 
 An act providing for the naming by the governor of the state o[ 
 a board of grain commission, prescribing their duties and provid- 
 ing an appropriation therefor. 
 
 Whereas, the people of the state of ISforth Dakota generally rec- 
 ognize the fact that the inspection of grain in the terminal cities 
 in Minnesota and Wisconsin has not been satisfactory to them,-and 
 that there has been more or less conflict as to the ,grade? of grain 
 and the dpckage 'on same and. 
 
 Whereas, from the investigation made by the committee from the 
 North Dakota state bankers association during the past summer, it 
 was shown that there were abuses and that conditions existed which 
 ought not to exist and which should be remedied ; now therefore 
 the following law is proposed for enactment by the legislature : 
 
 Be it enacted by the legislative assembly of the state of North 
 Dakota : 
 
 1. Board appointed, duties; appropriation.) There shall be ap-: 
 pointed, by the governor of this state, within sixty days after the 
 passage and approval of this act, a non-partisan board, consisting 
 of three members, who shall be citizens and freeholders of the state 
 and not directly or indirectly interested in any elevator company, to 
 be known, as 'the "grain commission board". The duties of this 
 board shall be to go to the cities of Duluth, Minneapolis and Su- 
 perior and to carefully investigate the feasibility and pra ctica bility 
 of the state of North Dakota bimng or leasicg or build ing an ele- 
 vator to be used as a temiinaCelevator for the use and benefit 
 of the people of the state of North ".Dakota and making a report 
 thereof. The said board in their investigation shall make full in- 
 quiry into the, present grain i nspec tinn. the methods of haadling 
 gcaia, the dockage of grain and the p-yppnsp ^^f rlpaning. grain and 
 the dispositio n of the screening s and their approximate value. They 
 dre to report as to the probable cost of buying, leasing or building 
 of a terminal elevator of a certain capacity, and the probable ex- 
 pense of operating the same, including taxes and insurance. Also to 
 report any further matters that may come to their knowledge dur- 
 ing their investigation and that would be of help in throwing fur- 
 ther light and information on the Subject. The board 'shall make a 
 detailed report of their finding to the governor of the state which 
 shall be submitted by him to the next session of the legislature' for 
 such action as they shall deem proper. Each member of the board 
 shall receive for the time actually spent by him in the performance 
 of his duties the sum of seven dollars per day and his actual and nec- 
 essary traveling expenses, and other expenses, but in no event shall 
 each member of the commission spend more than sixty days in the 
 performance of their duties. Not more than fifty days shall be spenlt- 
 in this work in the year A.D. 1907, and not more than ten days in the 
 year A.D. 1908 to supplement their findings of 1907, ancrto bring 
 
 _3— 
 
34 REPORT OF GRAIN COMMISSIONERS. 
 
 down their report as to conditions as near to the time of the'meeting 
 of the next stat€ legislature as possible. The board is hereby author- 
 ized to employ and pay for a stenographer to assist in preparing their 
 . report. For "the purpose of carrying out the provisions of this act 
 there is hereby appropriated the sum of two thousand dollars, or 
 so much tl\,ereof as may be necessary, to pay the per diem and ex- 
 penses of the commission and- their stenographer. 
 
 2. Emergency.) Whereas, an emergency is said to exist in that 
 this, board should be appointed prior to June 1st next, therefore 
 this act shall' be in force from and after its passage and approval. 
 Approved March ith, 1907. 
 
 MINNESOTA LAW GOVERNING APPOINTMENT AND 
 DUTIES OF WEIGHMASTERS AND WEIGHERS. 
 
 (Revised Statutes of 1905.) 
 
 2073. Weighmasters and weighers. The railroad and warehouse 
 commission shall appoint at each terminal point a state weighmaster 
 and such weighers as may be necessary, who shall have the con- 
 trol of the weighing of all grain subject to state inspection, except 
 when otherwise 'ordered by the party shipping the same. Every 
 such weighmaster and weigher shall give: 'bond to the state in the 
 sum of five thousand dollars, conditioiied for the faithful discharge 
 of hi's duty. (7674, 7675, 7677.). 
 
 3073. Weighmasters' records and certificates. All weighmasters 
 and weighers shall keep such records as may be prescribed by the 
 commission, and shall ftirnish'to any person for whom weighing is 
 done a certificate under his hand, showing the amount of each, 
 weight, the number and initial letter or rother distinctive mark of 
 each car weighed, place and date of weighing, and contents of car. 
 Such certificate shall be prima facie evidence of the facts therein 
 certified. (7705, 7706.) 
 
 3074. Fees for inspection and weighing. The fees for inspec- 
 tion and weighing -shall be fixed by the commission, and shall be i 
 lien upon the grain. If the grain is in transit, such fees shall be 
 paid by the carrier and treated as advance charges, and if received 
 for storage, by the warehouseman, and added to the storage 
 charges. AH moneys so collected and all fines and 'penalties for 
 violation of any provision of the subdivision, shall be paid into the 
 state treasury and known as the "grain inspection fund." and paid - 
 out only on order of the commission and auditor's warrant. All 
 interest received from deposits of said moneys shall be credited 
 on the first of each month to such fund, and nioticeof the amount 
 of such interest shall be sent to' the chief inspector. (7676,7690 7699 . 
 7700, '03 c. 336.) 
 
 3075. Qualifications of inspectors and weighmasters. No mem- 
 ber of a board of appeals, chief or deputy inspector, weighmaster, or 
 
STATE OF NORTH DAKOTA 35 
 
 weigher shall during his term of service be in any way interested in 
 the handling, storing, shipping, purchasing or selling of grain or any 
 of its products, nor in the employment of any person or corporation 
 .engaged therein, nor shall he be a member of any board of trade 
 or organization of like character. (7677, 7686.) 
 _ 2076. FiHng of bonds and suits thereon. All bonds required 
 by this subdivision shall be filed with the secretary of state and 
 suit may be brought thereupon by any person injured by the mis^ 
 conduct of the principal. (7683.) 
 
 2077. Removal ^of inspectors and weighmasters. . Upon written 
 complaint filed with the commission, charg;ing any inspector, dep- 
 uty inspector, weighmaster, or weigher, with official misconduct, 
 inefficiency, incompetency, or neglect of 'duty, the commission shall 
 investigate such charge, and if it be sustained, shall remove such 
 officer. (7687.) 
 
 2079. Misconduct of inspectors and weighinasters. Amy inspec- 
 tor or deputy inspector, weighmaster, or weigher, who shall know- 
 ingly or carelessly inspect of weigh any grain improperly, or give 
 any false certificates of inspection or weight, or 'accept money 
 or other consideration, directly or indirectly, for any neglect or 
 improper performance of duty, or who shall be guilty of any neglect 
 of duty, and any person who shall improperly influence, or_ attempt 
 to influence any such officer in the performance of his official duty, 
 shall be guilty of a gross misdemeanor and shall be punished by a 
 fine of not less than one hundred' dollars, nor more thin one thous- 
 and dollars or imprisonment in the county jail for not less than 
 -thirty days nor more than one year, or by both such fine and impris- 
 onment. (7689.> 
 
 2080. .Obstructing weighmaster. Any person or corporation 
 who shall obstruct any state weighmaster or weigher in the per- 
 formance of his official duties, by preventing his proper access to 
 the scales used in the weighing of grain or otherwise, shall forfeit' 
 to the state one hundred dollars, for each offense. (7679.) 
 
 RULES AND REGULATION ESTABLISHED BY MINNE- 
 SOTA RAILROAD & WAREHOUSE COMMISSION 
 " THAT GOVERN AT THE TERMINAL WEIGH- ■ 
 ING DEPARTMENT OF THAT STATE. 
 
 Rule .35. Duties of state weighmlasters. The state weighmasters 
 and ass'istant weighers shall be required to take an oath of office 
 and shall each give bonds in the penal sum of five thousand dollars 
 conditioned for the faithful discharge of their official duties. 
 
 Rule 36. ' State weighmasters to keep records. The said state 
 weighmasters shall keep a set of books in which shall be entered 
 an accurate account of ^11 grain or other property weighed, or the 
 
3fa REPORT OF GRAIN COMMISSIONERS. 
 
 weighing of which has been supervised by him or his assistant, stat- 
 ing that fees therefor and by whom payable, which books, shall be 
 open at all times to the inspection of the commission, to the ware- 
 house registrar, or other persons interested. 
 
 Rule 37. State weighmaster to have general supervision. ,The 
 said state weighmasters shall have a general supervision of all the 
 assistant weighers ■ and employes of their departments ; shall en- 
 force all laws, rules and regulations pertaining thereto_ and shall • 
 report the fact promptly whenever in his opinion the services of .any 
 eipployee can properly be dispensed with. 
 
 In case of emergency the said state weighmasters shall have 
 power to employ, temporarily, in accordance with the rules and reg- 
 ulations of their departments, such additional help as may be need- 
 ed, reporting his action at once to the railroad and warehouse com- 
 mission. And it shall be the duty of the state~ weighmasters to sus- 
 pend from duty any of the employees from their departments for 
 any gross violation of duty, whenever, in their opinion, the interests 
 of the service demand immediate action^ arid to at once report such 
 action to such commission together with all the facts in the case. 
 
 All employes in the wei.ghing department, . including clerks, 
 weighers, scale experts, shortage men, or any others are at all. times 
 under the direct supervision of the weighmaster, and must obey hi'-i 
 instructions. 
 
 Rule 38. State weighmasters to report to chief inspector. The 
 said weighmasters shall each day make a report of the previous 
 'day's business to the chief inspector, the said report to be made 
 under the direction of the chief inspector, on blanks furnished by 
 him for that purpose. 
 
 The said weighmasters shall also furnish the warehouse regis- 
 trar With such returns as he- may desire. 
 
 Rule 39. State weighmasters to collect weighing and other 
 proper charges. The said state weighmasters are hereby author- 
 ized and directed to collect, under the direction of the chief inspec- 
 tor, such charges for weighing and supervising of the weighing 
 of grain and other property, and for testing of scales, as maybe- 
 established from time to time by the railroad and. warehouse com- 
 mission, as well as all other fees that may become due on account 
 of the supervising and weighing service, or the testing of any scale. 
 
 Rule 43. Testing of scales and fees therefor. Assistant "weigh- 
 ers stationed at elevators or at railroad scales shall inspect and test 
 the scales to be used in the weighing of grain or. other property, 
 and see that they are in good order and properly balanced previous 
 to their being used for the purpose of weighing any grain or prop- 
 erty the weighing of which they are to supervise. Assistant weigh- 
 ers shall also weigh any grain or other property being weighed, 
 and they shall have the right to demand an official test of the scales 
 should any question arise in regard to the correctness of said, 
 weights or the condition of said scales. 
 
STATE OF NORTH DAKOTA 37 
 
 The expense af such tests by a state inspector of scales are to 
 be paid by the warehouse proprietor or railroad corporation, in 
 case the scales should be found incorrect, but not "otherwise. 
 
 Rule 45. Attempts at fraud, or interference. All persons em- 
 ployed m the state weighing departments shall promptly report to 
 the state weighmaster in writing any attempt to defraud the sys- 
 tem of state weighing or of the' supervision of the weighing of grain 
 or other property placed in charge of the .departmient. They shall 
 also report in the same manner all attempts by receivers or shippers 
 of grain or other property, or by any other person interested there- 
 in, to obstruct or in any improper way to influence the action of any 
 assistant weigher in the discharge of his duty. They shall also in 
 the same manner report all attempts by any warehouseman or rail- 
 road corporation, or any of their agents or employes, to prevent 
 them from giving free access to their scales in the regular perform- 
 ance of their duties; and. the state weighmasters shall report all 
 such cases to the railroad and warehouse commission. 
 
 We have not the superior system governing' the duties of weigh- 
 masters, etc., but we understand they are practically the same as 
 the Minnesota system. 
 
 EXHIBIT C. 
 
 MINNESOTA LAW GOVERNING ■ APPOINTMENT ON 
 CHIEiF INSPECTOR AND DEPUTY IN- 
 ^ ' ' SPECTORS OF GRAIN; 
 
 30C5. Chief inspector. Such railroad ajid warehouse comniis- 
 sion, shall appoint a chief inspector, whose term of ofifice shall be 
 two years unless sooner removed by the commission. Such inspec- 
 tor shall give bond to the state in the sum Of ten thousand dollars, 
 with sureties to be approved by the commission, conditioned for 
 the faithful and impartial discharge of the duties of his office, ac- 
 cording" to law and the rules and regulations prescribed by the 
 commission, and the payment o,f all damages -sustained by any per- 
 son, caused by the 'failure to perform such duties. (7680.) 
 
 2086. Deputy inspectors. The chief inspector, with the ap- 
 proval of tjie commissioh shall appoint such number of deputies as 
 may be required. One such deputy in each of the cities of St. Paul, 
 Minneapolis and Duluth ' shall be styled "chief deputy". Each 
 deputy inspector shall give bond as required of the ^hief inspec- 
 tor, but in the sum of five thousand dollars. They shall be under 
 the control and supervision of the chief inspector and may be re'- 
 moved by him. (7681, 7682, 7684.) 
 
 2068. .Duty of inspectors. Such inspectors shall inspect and 
 grade all grain received at or Shipped from any terminal warehouse 
 in carload or boat-load lots, and give a certificate of the inspection 
 to the person entitled thereto. Their decision shall be conclusive 
 
38 REPORT OF GRAIN COMMISSIONERS. 
 
 as to the grade and dockage of such grain and the certificate shall 
 be evidence thereof, unless changed upon re-inspection or appeal. 
 (7691.) 
 
 2069. Appeals. Any ownei", consignee, or shipper of grain, or 
 any warehouseman, who is dissatisfied with the inspection of ^rain 
 by any chief or deputy inspector, may ap-peal from his decision to the 
 nearest grain inspection board by filing notice of such appeal with 
 the chief deputy inspector and paying a fee, to be gxed by the 
 commission which shall be refunded if the appeal sustained such 
 deputy inspector shall forthwith transmit the notice to said boafd 
 of appeals. The decision of said board, fixing- the grade of such 
 grain shall be final. (7693.1 as amended, 1907 c. 55. 
 
 EXHIBIT D. 
 
 RULES ESTABLISHED BY THE RAILROAD WARE- 
 HOUSE COMMISSION GOVERNING AND REGU- 
 LATING INSPECTION OF GRAIN 
 
 2. Inspection Department. Duties of Chief Inspector. The 
 chief inspector shall keep a set of books in which shall be entered 
 an accurate account of all the grain inspected, the amount of in- 
 spection, fees chargeable ihereon; by whom payable and the amount 
 collected, which book shall be open at all times to the inspection of 
 the railroad and warehouse commission. 
 
 3. Chief Inspector, Has General Supervision. The said chief in- 
 spector shall have a general supervision of all assistant inspectors,, 
 and employes of this department, and enforce all laws, rules and 
 regulations pertaining thereto, and shall report promptly if in his 
 opinion the services of ^ any emptoye can be properly dispensed with. 
 In case of emergencies, the said chief inspector shall have power to 
 employ temporarily, in accordance with law, such additional help 
 as the exigencies of the service may require, certifying that such ad- 
 ditional help was necessary, and reporting the same at once to the 
 railroad and warehouse commission, for approval, and it shall be 
 the duty of said chief inspector, when in his judgment the interest 
 of the service demands immediate action, to suspend from duty any 
 of the employes in his department for any gross violation of duty,, 
 and report same at once to said commission, together with the facts 
 of the case upon which such 'action shall have been taken. 
 
 7. Dutie* of Chief Deputy Inspectors. The chief deputy in- 
 spectors' shall -keep a set of books in which shall be kept an accur- 
 ate account of all grain inspected, showing the gra-de and condition 
 of each variety^ with all necessary notations, the amount of inspec- 
 tion fees chargeable thereon, and by whom payable, and the amount 
 collected ; which books shall be opened to the warehouse registrar 
 and shall make a daily return of the same by means Kfereinafter 
 provided to the chief inspector at St. Paul. 
 
STATE OF NORTH DAKOTA 39 
 
 8. Duties of chief deputies, continued. Each chief deputy in- 
 spector shall have a general supervision over all deputy inspectors 
 and employes of his department, and shall enforce all laws, rules 
 and regulations pertaining thereto, and the orders and instructions 
 of tlie chief inspector, and shall report promptly to the- chief in- 
 spector any irregularity or violation of rules by any of his sub- 
 ordiriates, and if in his opinion, the services of any employee can 
 be dispensed with. The chief deputy and his assistants shall ac- 
 company the deputy inspectors at all times when practicable, for 
 the purpose of advising them and correcting any errors or tendency 
 to vary from established standards, provided, however, that wheli 
 
 ■ the grade on any carload or lot of grain has been determined and 
 recorded or the grain has been sold on such grade, no charge in the 
 inspection thereof shall be made, unless a reinspectiori or appeal is 
 called by some'person affected by such inspection. 
 
 9. Chief deputy inspector to issue certificates. The chief deputy 
 inspector shall, upon the request of the shipper or receiver, issue a 
 certificate fofany one car of grain inspected stating therein the 
 name of the inspector and a true copy of the inspection, copied 
 from his record of such inspection. If request is for certificate of ■ 
 grain delivered from an elevafor, he shall state in the certificate 
 the entire lot or cargo of all grades of that kind of grain delivered 
 to cars or vessel as the case may be except in case of a cargo con- 
 sisting of different lots belonging to different owners, in which case 
 the; amount of the entire lot or cargo of all grades shall be stated 
 on the back of the certificate issued for the. last lot or parcel deliv- 
 ered to complete said cargo. No alteration or erasures will be al- 
 lowed upon such certificates'. Certificates shall be signed by the 
 chief deputy issuing therm, and in the name of the chief inspector 
 per chief deputy. 
 
 EXHIBIT E. 
 
 . Duties of deputy inspectors and helpers. 
 
 12. All inspectors to take oath of office and furnish bond. Each 
 deputy inspector will be required to take an oath of office and give 
 a i>ond in the penal sum of five thousand (5000) dollars, subject 
 to the approval of- the railroad and warehouse commission, for the 
 faithful and -impartial discharge of his duties. Deputy inspectors 
 shall be- required to give, thirty days' notice in writing to the chief 
 inspector or chief deputy in whose charge he may be, before leav- 
 ing the service. 
 
 13. Inspection after dark or in wet weather. No inspector sta- 
 tioned at ah elevator is authorized to inspect out of store after dark 
 or in wet weather, except upon receipt personally, or through the 
 office of the chief deputy inspector, of an order written Upon the 
 printed 'blanks furnished by the department, filled and signed by 
 the owner of the grain, or his authorized agent, relieving such in- 
 spector from all responsibility for damages which may be caused 
 
40 REPORT OF GRAIN COMMISSIONERS. 
 
 ■by such wet weather, or loss by such errors as are liable to occur 
 by reason of darkness ; but in every case the inspector must be per- 
 sonally present when the grain is actually delivered on board, 
 making his report of the inspection after such delivery. 
 
 14. Inspector to give reasons for his grades'. Inspectors must 
 make their reasons for grading grain fully known by quotations 
 on their books, each inspector is required, in case of doubt, 
 to ascertain the weight per measured bushel of each lot of wheat 
 inspected by him, and note the same in his book. The weight alone 
 shall not determine the grade. No inspector shall in any case make 
 the' grade of any lot of grain above that of the poorest quality found 
 in that lot, when it bears evidence of having been "plugged" or- 
 "doctored" for the purpose of deception. 
 
 16. Inspectors, helpers and sealers to note conditions of cars. 
 Inspectors, helpers and sealers will, carefully note the condition o"f 
 the cars containing grain which they inspect, by notations in their 
 book and report to tlieir chief deputy any leakage in cars or filthy 
 condition of the cars, if it exists ; which report must be carefully 
 recorded and preserved for future reference. They shall also di- 
 rect the attention of the state sealer in their yard to any leakages 
 which they may discover in order -that he may also examine and 
 record the same. The chief deputy shall transmit duplicate" copy 
 of such report to the state weighmaster. 
 
 17. Inspector to place ticket on car. Each inspector must be 
 particular that all inspector tickets placed by him in the cars on 
 his track are plainly written. No alteration or erasure must occur 
 upon the tickets. In case of an, error he shall make out a new 
 ticket, carefully destroying the old one. This ticket must contain : 
 First, date of inspection; second: number and initial letters of the 
 car ; third : the grade of grain in that car ; fourth : the amoimt 
 of shrinkage per bushel, if uncleaned ; fifth, the name of the in- 
 spector. Each inspector must personally fill out and sign each 
 ticket. 
 
 18. Inspectors to inspect cars or vessels before loading. Inspec- 
 tors stationed- at elevators shall see that the vessel of car into which 
 they inspect grain is made clean and in a proper condition to re- 
 ceive the same, paying particular attention to cars which have been 
 used for transportation of coal, oil, stock, etc.. and on no account 
 suffer grain to go into such a car or vessel if there is danger of 
 its becoming damaged by reason thereof. Vessel owners and ware- 
 housemen will be required to exercise similar precaution against 
 loading grain into vessels or cars not in proper condition. 
 
 EXHIBIT F. 
 
 Minnesota law govermhg and regulating public elevators : 
 2047. Defined. All elevators or warehouses located at Minne- 
 apolis and Duluth and other points in the state which are now, or 
 
STATE OF NORTH DAKOTA 41 
 
 may hereafter be designated as terminal points, in which grain is 
 received for storage in bulk and that of different owners mixeJ 
 together or so stored that identity of the different lots or parcels 
 is not preserved, shall be public warehouses, known as terminal 
 warehouses. (YGSQ.) 
 
 38-95, 35 and 718 ; 93-374, 100 and 95, 378 ; 180 U. S. 453. 
 
 2048. License. All public warehouses shall be annually licensed 
 by and -be under the supervision and subject to the inspection of the 
 comrfiission. Written application under oath shall be made to the 
 commission for license, specifying the kind of warehouse, its lo- 
 cation, the name of the person, firm or officer of the corporation. 
 The license fee shall be two dollars. Such license may be revoked 
 by the cornmission for violation of law or of- any rule or regulation 
 by it prescribed' upon notice and hearing. A license may be re- 
 fused to any warehouseman whose license has been revoked within 
 the preceding year. (7660-7662.) 
 
 2049. Storage and inspection. ' Warehouseman's duties. Re- 
 ceipts. Every such warehouseman shall receive for storage and 
 shipment, so far' as the capacity of his warehouse will permit, all 
 grain in suitable condition for storage, tendered him in the usual 
 coures of business, without discrimination of any kind. All granr 
 shall be inspected on receipt and stored with other grain of the 
 same grade. A' warehouse receipt in the following form shall be 
 
 issued : 
 
 STUB RECORD. 
 
 Receipt No. ' ' 
 
 _.. : 190 .... 
 
 Received in store from 
 
 Bus. .7 , . Lbs Grade 
 
 Elevator Co. 
 
 Warehouse Receipt No .Minn., 
 
 290 The Elevator Com- 
 
 :pany has received in store, in its elevator known as 
 
 situated at Minnesota, for storage 
 
 from '.".'.'.'. .Owner,, . _. • 
 
 bushels of which has .been duly inspected 
 
 by a duly -authorized inspector of grain appointed by the state rail- 
 road and warehouse commission of Minnesota, and has been graded 
 
 by said inspector as number .~ • > and is that 
 
 grade Said grain or an equal amount of gram of the same kind 
 and grade is deliverable upon the return of this receipt properly^ 
 indorsed by the owner above named" and the. payment of all law- 
 ful charges ; -in case of grain stored separately m a special bin, at 
 the request of the owner or consignee, the identity of such grain 
 will be preserved while in store and said grain will be dehvered 
 
42 REPORT OF GRAIN COMMISSIONERS. 
 
 as such separate lot or parcel, in accordance with law, upon sur- 
 render of the receipt. Loss by fire, heating or the elements is- 
 at owner's risk. 
 
 The Elevator Co., con- 
 ducts said elevator as a public terminal warehouse and receives 
 
 and stores therein grain of others for hire 
 
 Bushels Grade. 
 
 By ':::::./.^'.y////^['.^" ['.'.'.'.. '.'.'..::. / 
 
 Countersigned by 
 
 Secretary. 
 
 The receipts shall be consecutively numbered and delivered to • 
 the owner immediately upon receipt of each lot or parcel of grain, 
 giving the true and correct grade and weight thereof. The manner 
 of receipt of such grain shall be stated in the receipt with the num- 
 ber and distinctive mark of each car, and the same of each barge 
 or other vessel. The failure to issue such receipt as directed or the 
 issuance of any warehouse receipt differing in form or language 
 from that prescribed shall be a misdemeanor. (7663, 7664) as 
 amended 1907 c. 303. • 
 
 See 1905 c. 302. 
 
 Receipts '78-379, 81 and 204, 543 ; 78-475, 81 and 526 ; 79-94, 81 
 arid 750; 89-98, 94 and 218; 91-346, 98 and 96.) 
 
 2050. Sale, etc., of stored grain forbidden. No such warehouse-^ 
 man shall sell or otherwise dispose of or deliver ouj of store any 
 such grain without the express authority of its owner and the re- . 
 turn of any storage receipt, except as herein provided, nor mix to- 
 gether grain of different grades in store, nor select grain of different 
 qualities but of the same grade, for storage or delivery, nor in any 
 way tamper with, grain of others while in his possession or custody, 
 with the purpose of securing any profit to himself or any othei"', 
 person, or attempt to deliver grain of one grade for that of another. 
 Any person violating any provision of this section shall be punished 
 by fine of not more than one thousand dollars ($1,000.00) or im- 
 prisonment in the state prison for not more than five eyars or both ; 
 (7650-7652, 7663, 7672.) 
 
 2051. Delivery of grain. Upon return of the receipts of the 
 proper warehousemq,n, properly indorsed, and upon payemnt or 
 tender of all advances and legal charges, grain of the grade and 
 quantity named therein shall be delivered to the holder of such re- 
 ceipt within twentyf our hours after facilities' for receiving the same 
 have been provided. If such warehouseman shall fail so to deliver : 
 It, he shall be liable to the owner in damage, at the rate of one 
 cent a bushel for each day's delay, unless he shall deliver the prop- 
 erty to the several owners in the order of demand as rapidly as it 
 can be done by ordinary diligence. If upon such demand and' 
 tender the warehouseman shall fail so to deliver such grain the ' 
 
STATE OF NORTH DAKOTA 43 
 
 -person entitled thereto may recover the same by action ; and sucli 
 ^warehouseman shall also be guilty of larceny. (7647, 7648, 7717.) 
 
 37-531, 527, 8 and 758 ; 37-464, 35 and 268 ; 41-116, 43 and 855 ; 
 77-128, 134, 79 and 656. 
 
 2052. _ Bond. Every person applying for a license for a terminal 
 warehouse at Minenapolis or Duluth shall file with the commission 
 a bond to the state in the penal sum to be fixed by such commission,, 
 not less than ten thousand dollars, nor more than fifty thousand 
 'dollars, for each such warehouse, conditioned for the faithful dis- 
 charge of his duties as such warehouseman, and full compliance 
 with all the laws of the state and rules of the commission relative 
 thereto. If such warehouseman apply for license for more than 
 one warehouse in the same county, but one bond need be given. 
 (7661). 
 
 2053. Special Bonds. At the request of the owner or thel con- 
 signee such warehouseman may store any grain of the same grade 
 and of the same owner or consignee in 'a separate bin, which shall 
 thereupon be marked and known as a special bin. If a warehouse- 
 man receipt be issued for such grain, it shall state that it is sepa- 
 rately stored, and give the 'number of the bin. The warehouseman 
 at the request of the owner, may clean dry, or otherwise improve 
 the. condition or value of such lot of grain, but it shall only be de- 
 livered in. such- separate lot, or as the grade fixed by its inspection 
 when received, without regard to its improvement by drying or 
 cleaning. (7663,, 7672.) 
 
 3054. Inspection. All, grain received at the terminal warehouse 
 shall be inspected and graded by state inspector, and reinspected 
 in like manner upon delivery from such warehouse. The charges 
 for such inspection' shall be paid by the warehouseman and added 
 to the storage, and the inspector may recover such charges from the 
 warehouseman. (7663). 
 
 3058. Examination, Every person having an interest m any 
 grain stored in any such warehouse, and every state grain inspector, 
 shall have the right to examine at all times during ordinary business 
 •hours any grain so stored, and all parts of such warehouse ; and 
 every such warehouseman, his agents and servants, shall furnish 
 proper facilities for such examination. (7673.) 
 
 3059. Control and Inspection of Scales. All scales in such ter- 
 minal warehouses, used for weighing grain in railroad yards at 
 terminal points, shall be under the control of the state weighmaster, 
 and subject to inspection by them, exempt from the jurisdiction of 
 sealers of weights and measures. They shall be inspected at the re- 
 quest of any person interested in any grain weighed or to be weighed 
 thereon. If found incorrect the cost of inspection shall be paid by the 
 owner thereof ; otherwise by the person requesting inspection. No 
 scales found incorrect shall be used until re-examined and found 
 correct. 7673 ; '95 c. 338.) 
 
44 REPORT OF GRAIN COMMISSIONERS. 
 
 EXHIBIT. G. 
 
 2060. Board of Grain Inspection. The boards heretofore known 
 as the boards of appeals for the inspection of grain at Minneapolis 
 and Duluth shall hereafter be known as the "Minneapolis Grain 
 Inspection Board" and the "Duluth Grain Inspection Board" re- 
 spectively. Each board shall consist of three members appointed 
 by the governor, who shall have the same qualifications as grain in- 
 spectors, and not more than two of whom shall ,be of the same pp- > 
 litical party. Their term of office shall be for two years from Au- 
 gust 1st succeeding their appointment, and until their successors 
 qualify. The governor may remove any member and fill and va- 
 cancy for the unexpired term. Members of either board shall have 
 the right taact at either Duluth or Minneapolis. ('99 c. 199 s. 1.) 
 
 3061. Bond: Before entering on the duties of his office, each 
 member of such board shall give bonds to the state with sureties 
 to be approved by the governor, I'n the sum of five thousand dollars, 
 conditioned for the faithful discharge of the duties of his office. 
 No 'surety on such bond shall be interested in or connected with 
 anv grain, warehouse or commission business, firm or corporation. 
 ('99 c. 199 s. 6.) 
 
 2062. Minnesota Grades., The two boards, or a majority of the 
 six members thereof, shall meet annually in joint session on or -be- 
 fore September 1.5th, and establish the grades of all grain subject 
 to state inspection, to be known as "Minnesota grades.' Such 
 grades, and the tests thereof, shall be published dailv for one week 
 in a newspaper in each of the cities of Minneapolis and Duluth, 
 and all grain received at anv public warehouse shall be graded ac- 
 cordingly. Such grades shall not be changed before the next an- 
 nual meeting without the concurrence of at least five members of 
 such -boards. (769 ; '99 c. 199 s. 3.) 
 
 EXHIBIT H. 
 
 Northern Spring Wheat : • , 
 
 No. 1 Hard Spring 'Vyheat. Shall be sound, bright, sweet, clean 
 and consist of over 56 per cent of hard Scotch fife, and weight not 
 less than 58 pounds to the measured bushel. 
 
 No. 1 Northern Spring Wheat. Shall be sound, sweet and clean, 
 may consist of the hard and soft varieties of the spring wheat, but 
 must contain a larger proportion of- the hard varieties, and weight 
 not less than 57 pounds to the measured bushel. 
 
 No. 2 Northern Spring Wheat. Shall be spring wheat not clean 
 enough or sound enough for No. 1, but of good milling quality, and 
 must not weigh less than 56 pounds to the measured bushel. 
 
 No. 3 Northern Spring Wheat. Shall be composed of inferior, 
 shrunken spring wheat, and weigh not less than 54 pounds to the 
 measured bushel. 
 
STATE OF NORTH DAKOTA 45 
 
 No.- 4 Northern Spring Wheat. Shall include all inferior spring, 
 wheat that is badly shrunken or damaged; and weigh not less than 
 49 pounds to the measured bushel. 
 
 Rejected Spring Wheat. Shall include all varieties of spring 
 wheat, sprouted, badly bleached, or for any other cause unfit for 
 No. 4. . ' 
 
 Note. Hard, flinty wheat, of good color, containing no apprecia- 
 ble admixture of soft wheat, may be admitted into the grades of 
 No. 2 northern spring and No. 3 northern spring wheat, provided 
 weight of the same is not more than 1 lb. less than the minimum test 
 weight required by the existing rules of said grades, and provided 
 further, for such wheat is in all other respects qualified for admis- 
 sion into such grades. 
 
 EXHIBIT I. . 
 
 Durum (Macaroni) Wheat: 
 
 No. 1 Durum Wheat. Shall' be bright, sound, dry, well cleaned, 
 and be composed of durum, corrynonly known as macaroni wheat, 
 and weigh not less than 60 lbs. to the measured bushel. . 
 
 No. 2 Durum Wheat. Shall be dry, clean and of good miUing 
 qualities. It shall include, all durum wheat that for any reason is 
 not suitable for No. 1' durum, and weigh not less than 58 lbs. to 
 the measured bushel. 
 
 No. 3 Durum Wheat. Shall include all durum wheat bleached, 
 shrunken, or for any cause unfit for No. 3, and weigh not less than 
 55 lbs. to the measured bushel. 
 
 No. 4 Durum Wheat. Shall include all durum wheat that il^ 
 badly bleached or for any cause unfit for No. 3. 
 
 EXHIBIT J. 
 
 A^elvet Chaff Wheat. 
 
 No. 1 Velvet Chaff Wheat. Shall be bright, sound. and well 
 cleaned, and -weigh not less than 57 lbs. to the measured bushel. 
 
 No. 2 Velvet Chafif Wheat. Shall be sound, dry, reasonably 
 clean, m|ay be slightly bleached or shrunken, but not good enough 
 for-No. 1, and weigh not less than 56 lbs. to the measured bushel. 
 
 No. 3 Velvet Chaff Wheat. Shall include allwhe^t that is bleach ■ 
 ed, smutty or for any other cause unfit for No. 3, and weighmg- 
 no't less than 54 lbs. to the measured bushel. 
 
 No 4 Velvet Chaff Wheat. Shall include all wheat that is very 
 smutty, badly bleached and grown, or for any other cause unfit for 
 
 No. 3. ■ 
 
 EXHIBIT K. 
 
 Mixed Wheat: 
 
 In case of any appreciable admixture of durum, western, wm- 
 ter or west'ern white and red wheat, with Minnesota grades Of 
 northern spring wheat, or with each other, it shall be graded ac- 
 cording to the quality thereof, and- classed as Nos. 1, 2, 3, etc. 
 Mixed wheat with inspector's notation describing character. 
 
46 REPORT OF GRAIN COMMISSIONERS. 
 
 EXHIBIT L. - 
 
 E.irley : 
 
 No. 1 Barley. Shall be plump, bright, clean and free from other 
 ■grain, and shall weigh not less than 48 lbs. to the measured biishel;- 
 
 No. 2 Barley. Shall be sound- and of healthy color, not plump 
 enough for No. 1, reasonably clean and reasonably free from other 
 grain, and shall weigh not less than 46 lbs. to the measured bushel.' 
 
 No. 3 Barley. Shall include all slightly shrunken and otherwise 
 slightly damaged barley, not good enough _f or No. 2, and shall weigh 
 not less than 44 lbs. to the measured bushel. 
 
 No. 4 Barley. Shall include al) barley fit for malting purposes, 
 not good enough for No. 3. . 
 
 No. 1 Feed Barley. Must test not less than 40 lbs. to the meas- 
 ured bushel and be reasonably sound and reasonably clean. 
 
 No. 2 Feed Barley. Shalt include all barley which is for any. 
 cause unfit for the grade of No. 1 feed barley. 
 
 EXHIBIT M. 
 
 Flaxseed: 
 
 No. 1 Northwestern Flaxseed. No. 1. north western shall be ma- 
 ture, sound, dry and sweet. It shall be northern grown. The max- 
 imum quantity of field, stack, storage and other dam_aged.seed inter- 
 rnixed shall not exceed twelve and one-half (13 1-2) per cent The 
 minimum weight shall be 51 lb5. to the measured bushel c6mmer- 
 cially pure 'seed. 
 
 No. 1 Flaxseed. Shall be northern grown, sound, dry and free 
 from mustiness, and carrying not more than twenty-five (-25) per 
 cent of imimature or field, stack, storage or other damaged flaxseed, 
 and weighing not less than fifty (50) lbs. to the measured bushel 
 of commercially pure seed. 
 
 No. 2 Flaxseed. Flaxseed that is bin-burnt, immature, fieldMam- 
 aged or musty, and yet not to a degree to be unfit for storage and 
 having a test weight of not less than forty-seven (47) lbs: to the 
 bushel of commercially pure seed, shall be No.' 2 flaxseed. 
 
 W. N. SMITH, GRAFTON, N. D. 
 
 No Grade Flaxseed. Flaxseed that is damp, warm, mouldy, very 
 musty or otherwise unfit for storage, or having a weight of less than 
 forty-seven (47) lbs. to the measured bushel of commercially pure 
 seed, shall be no grade flaxseed. 
 
 Also the following manner of testing grain : 
 
 EXHIBIT N. 
 
 Manner of Testing Grain: 
 
 Wheat, flax and rye shall be tested after it has been cleaned.; 
 The test kettle shall be placed where it cannot be jarred or shakeii.- 
 From scoop, bag or pan, held two inches from top of kettle; pour' 
 
STATE OF NORTH DAKOTA 47 
 
 into middle of same at a moderate speed until running over, strik- 
 ing off in a zigzag manner with the edge of, a beam held horizon- 
 tally. 
 
 . Note. No grain shall in any case graded above that of the 
 poorest quality found in that lot when it bears evidence of being 
 plugged or doctored. 
 
 Note. Wheat scoured or otherwise manipulated, the test weight 
 will not be considered in grading same. 
 
 EXHIBIT O. 
 
 I now read the letter to the president. It reads : 
 
 London Corn Trade Association, 
 Exchange Chambers. 28 St. Mary Axe, 
 
 London, E. C, February 15, 1908. 
 Mr. President: I am instruced by the European International 
 Committee on American Grain Certificates to communicate to you 
 the following facts : ■ , ' 
 
 There have been for some years past a general consensus of 
 opinion aAiong European buyers of grain that the operation -of the 
 present 'system of certifi«ati,n,g:-.§Fa-itt for export is increasingly 'un- 
 -satisfaetepy, and that whatever may be its merits for the purposes 
 of domestic trading, it naJfingetgixe^to European buyers .the con- 
 ' fidence and protection which is necessary in a trade where the only 
 guarantee for reliable quality and condition in exchange for buyer's 
 money is a paper certificate. , Formerlv b uyers in buying from the 
 United_,States of America, were able, as they still ,are, in their deal- 
 ings in grain with other exporting countries, to recover from- ship- 
 pers any damage they sustained owning to defects jn qiiality or con- 
 dkion, ^CJ since the introduction of the certificate system this is no 
 longer ^rossible. Even after its- introduction, indeed, until com- 
 paratively recent times, it was seldom found that any serious abuses 
 arose, and trusting to their belief in the reliability of the grading 
 system, buyers were willing to continue trading with America on 
 less favorable terms than they demanded elsewhere; but whether 
 ■from the increase of individual competition, or, what is probabl) 
 more important, the rivalry between the older ports and their smaller 
 and more recently established competitors, there seems little doubt 
 but that the sta,ndard of grading has been- lowered, • either tem- 
 porarily or in some cases permanently, in order to attract business 
 from interior points ; and we in Europe feel that the burden of such 
 departure from the more reliable and stricter method in force for- 
 merly has been borne chiefly, by. European importers, who, being 
 far away, have no power of protecting themselves agaHi«t.-eapjr^ 
 er, worse, in the grading methods of recent years. The result is 
 
REPORT OE GRAIN COMMISSIONERS. 
 
 that American grain suffers as regfards price when in competiti'oii 
 with grain from other countries. Th^uiasusing- dissatisfaction cul- 
 minated some twelve months ago in a general request from the prin- 
 cipal European grain centers that a conference should be summoned 
 by the, London Corn Irade association to csnsider the best measures 
 to adopt to remedy the defects of the present system of dealing in 
 grain from the United States of America. 
 
 The conference was held in London on the 8th of November, 
 1907, and was attended by delegates from all European importing 
 countries. It was unanimously resolved that a committee be ap- 
 pointed, consisting of seven members from the United Kingdom 
 and an equal number from other European countries (the latter 
 being represenfed as follows)-: , - 
 
 Belgium 1, France 1, Germany 3, Holland 1 and Scandinavia 1, 
 to suggest necessary improvements, and to negotiate with American 
 grain trade for their adoption. 
 
 This committee met and drew up a scheme (a, copy .of which T 
 have the honor to append) which was subrriitted to the principal 
 gram associations of the United States. of America, but which I re- 
 gret to say. did nutonlyprove unacceptable to .the-American exchange 
 ^'^t.wSI??- failed to .-draw any .co.imter .4>raposala„f rom tjiem. ^In- 
 deed, the way in which this subject has been treated by some of the 
 leading grain associations there would almost seem to indicate that 
 there is no desire tp _ recognize the undoubted fact that serious 
 faults have arisen or that there is any need to amend a system 
 which is responsible for -abuses of which European importers uni- 
 versally complain. 
 
 _ Traders here generally recognize that a reliable system of inspec- 
 tion and certificating, presents many advantages, but that to be 
 thoroughly reliable, it must depend not only upon the expert knowl- 
 edge, integrity and independence of the inspection ofificials, but that 
 the rules for grading by which these officials ata^Qiind must be -Uiii- 
 -fornk.3Pp]^ang-eq.uaIlyH:-erever5rport, and should be generally known 
 not, only in J:he.,y,arious American but also in the principal Euro- - 
 pean gram centers, and: that wherever -possible from time to time 
 type samples should be. sent to our leading grain associations. 
 
 This IS the system adopted by the agricultural department of 
 his majesty's government in the Dominion of- Canada, and has hith- - 
 erto proved generally satisfactory. 
 
 My committee observed with great satisfaction your reference 
 to this important matter m your last presidential message, and there 
 IS before your senate and house of representatives at the present time 
 a bill embodying some of the above suggestions. While they would 
 of course have preferred to get their own suggestions .accepted by.. ^ 
 American traders, they wish to be permitted to offer to you their' 
 sincere congratulations and thanks for the steps you are taking to 
 
STATE OF NORTH DAKOTA 49 
 
 remedy an undoubted evil and to assure you the warm support of the 
 European grain trade in your, efforts. 
 
 I liave'the honor to be, 
 
 Your most humble and obedient servant, 
 RoRERT A. Patterson, 
 Chairman European International Committee on American Grain 
 Certificates. 
 To President, White House, United States of America, Wash • 
 ington, U. S. A. 
 
 EXHIBIT "P." 
 
 Howard's Wheat and Flour Testing Laboratory. 
 
 Minneapolis, Minn., Sept. 11, 1906. 
 Chemical analysis of wheat sample rec'd from M. O. Hall. 
 Results given in percentages when practicable. Wheat sample 
 milled to produce straight flour. Rec'd 9-7-08. Schedule "G." 
 
 "Arnautka." 
 
 tests on the wheat. 
 
 Weight per bushel, cleaned 60 
 
 Cleaning loss 1 • ^ 
 
 Yield 70.5 
 
 tests on the flour. 
 
 Ash 82 
 
 Acidity ^^^ 
 
 Soluble carbohydrates ^ ^ • '^ 
 
 Total nittogerious compounds 16 • ''' 
 
 Gliadin 9-8 
 
 Glutenin .- ^.6 
 
 Other nitrogenous compounds 3.3 
 
 Gluten 14-4 
 
 Color, poor ^ ■ ° 
 
 Volume of loaf, cu. in 14:| 
 
 Weight of olaf , oz Ill 
 
 Water used, oz • • • ' ° ■ ^-^ 
 
 Explanatory Remarks : The cleaning loss is the amount removed 
 by our small milling, separator and scourer and is expressed in per 
 cent. The yield is the percentage of straight flour made on,otiV_ex- 
 tferimental mill and calculated on the cleaned wheat. With a No. 
 2 northern wheat we get from 65 to 70 per cent of straight flour 
 and results are comparative with each other and approximately 
 proportional to the yields which would be obtained in a merchant 
 
 mill. . , r c v t 
 
 The ash is the percentage of mineral matter left after thorougH 
 burning, and is lowest in a true first patent and higher, as more of 
 the branny particles are found being highest in the lowest grades 
 
50 REPORT OF GRAIN COMMISSIONERS. 
 
 of flour. In flours made from spring wheats and best first patents 
 range from 35 per 'cent or 30 per cent to 40 per cent, 2d patents and 
 straights from 35 per cent to 55 per cent, cut straights, etc., from 
 50 per cent upwards. ■ 
 
 Acidity is the measure of the soundness of the flour. The acid- 
 ity of this flour is considerable above that' of flours made from or- 
 dinary spring wheat. The limit for such flours is -.US per cent. 
 So that while this flour may be all right at present, it will not keep 
 as weir as if the acidity were lower. Soluble carbohydrates nor- 
 mal. Soluble carbohydrates (sugars, dextrins, etc.) are ferment - 
 ible materials, and in soud flours do not usually exceed 6 per cent. 
 
 The nitrogenous compounds are , the materials which influence ■ 
 the expansion or volume of loaf which the flour will give. They 
 include the two gluten compounds — gliadin and glutem'n — and 
 other soluble nitrogenous compounds of little importance present 
 usually in small amounts. This is a very high per cent of gluten, 
 but it is of poor quality for bread making purposes, as evidenced 
 in the expansion of the baked loaf. 
 
 The baking tests is made according to our usual method, using 
 12 ounces of flour. Colors are marked as follows: Patents: 
 maximum 1, medium, 1.5, minimum 2. Straights, maxi- 
 mum 2.5, medium 3, minimum 3.5. The average volume hard 
 spring wheat flours is at present about 195 cubic inches. The weight 
 of loaf and water used are at present averaging about 17.00 and 
 6.06 ounces respectively. 
 
 In general this wheat gives a flour yield equal to the -ordinary 
 springs having the samie weight per bushel; it has about "^the same 
 water absorption and bread yield. The expansion oi the loaf is 
 decidedly below that of the ordinary springs, and also the keeping 
 qualities of the flour. The ash is much higher and -the color is the 
 distinctive macaroni creamy white color, and very good for this 
 variety- of wheat. •' 
 
 EXHIBIT "Q." : 
 
 The milling tests for the sample of/wheat, Aronautka, Lab. No. 
 214. milled under date of Sept. 5th, was as follows 
 Grade, No; 1 Northern — 
 Weight per bu. uncleaned, 59 lbs. 
 Weight per bu. wheat cleaned, 61 1-4 lbs. 
 No. of pounds milled, 137 lbs. 9 ounces. 
 Weight of pfitent flour, 70 lbs. 6 ounces. 
 Weight of 2nd clear flour, 3 lbs. 11 ounces. 
 Weight of total flour, 91 lbs. 1 ounce. 
 Per cent of total flour, 67 . 73. 
 Weight of bran, 11 lbs. 9 ounces. 
 Weight of shorts, 31 lbs. 13 ounces. 
 Total weight recovered, 134 lbs. 7 ounces. 
 Percentage recovered in millins;,. 97.73. 
 Yield of bu. per bbl., 4 bu. 56 IJjs. 
 

 
 STATE OF NORTH DAKOTA 
 
 
 
 51 
 
 Bakings tests for the three grades of flour in comparison with 
 the regular laboratory standard were as follows : 
 
 Sample 
 
 Weight 
 
 of 
 Flour 
 Grams 
 
 Measure" 
 
 of 
 Loai Ins. 
 
 Weight 
 
 of 
 
 Loaf 
 
 Grams 
 
 Vol- 
 ume of 
 Loaf 
 cc. 
 
 * 
 Color 
 
 Tex- 
 ture 
 
 INo. 
 
 Loaves 
 
 per 
 
 bbl. 
 
 Flour 
 
 No. cu.in, 
 per bbl, 
 Flour 
 
 Standard 
 
 Patent (214) 
 
 1st Clear 
 
 359.0 
 347.5 
 323.1 
 312.0 
 
 26yj X 22}^ 
 26J4 X 21M 
 25}i X 20% 
 24X X im 
 
 512.0 
 
 503.9 
 489.4 
 468.9 
 
 2564 
 2531 
 2302 - 
 2171 
 
 1. 
 1.7 
 3.5 
 7.0 
 
 Good 
 Fair 
 
 247.5 
 255 7 
 274.7 
 284.8 
 
 38490 
 39508 
 38596 
 
 2nd Clear 
 
 37738 
 
 In many Ways it is hardly possible to compare results with those 
 of Howard's laboratory, since he used the straight flour. 
 
 In expansion, as indicated by the volume, the patent for the 
 durum fell a little below the standard, which is fife and blue stem, 
 and one that has been used for several months in this laboratory. 
 
 It will be noticed, however, that a slightly less amount of flour 
 was used in the patent than in the standard, so that the volume of 
 this particular flour was very good,, while the volume for the first 
 and second clear, as will be • expected, is much less. 
 
 The chemical work has not as yet been completed. Unfortunate- 
 ly, one of my assistants was stricken down with typhoid fever and 
 " another doing the flour work was out of the laboratory for a week. 
 This has put us quite a little behind in our work, but as soon as we. 
 can get the data completed I will send it to you. 
 
 Yours very truly, 
 
 E. F. Ladd, 
 Under date of November 10th, this board again wrote Prof. Ladd 
 -for the balance of his report, and received the following answer : 
 
 November 11th, 1908. * 
 
 M. O. Hall Nicollet Hotel, Minneapolis, Minn. : - '. ■ 
 
 Dear Sir: In the absence of Prof. Ladd I am instructed to 
 
 acknowledge receipt of your favor of November lOth, and to say 
 
 that Prof. Ladd is now in the east and does not expect to return 
 
 -until ahout the 20th. 
 
 Yours very truly. 
 
 Alma Johnson, 
 No. 4286. Stenographer. 
 
 Office of Railroad and Warehouse Commission. 
 
 Hon. M. O. Hall, Secretary of the Grain Commission of North Da- 
 kota, Mohall, North Dakota: , _ _ 
 Dear Sir: In compliance with the desire of your commission 
 
 for information with reference to the operation of laws governing 
 
£>4 REPORT OF GRAIN COMMISSIONERS. 
 
 by Victor Carlson, a shipper residing at Hallock, Minnesota, this 
 'being but one of a large number of similar complaints received- fronP 
 various shippers in northern Minnesota and North Dakota, which 
 had been filed with the commission, in each of which it was alleged; 
 that false returns had been made lay said defendants, with the- re- 
 sult that they had been defrauded of the true value of their con- 
 signments of grain and flaxseed shipped , to said defendants \yho 
 were engaged -in the business of grain commission merchants at 
 Duluth, Minnesota, being duly licensed as such under the law. On 
 December 8th, 1903, the defendants were arraigned in the Duluth mu- 
 nicipal court to answer to the charge of said Victor Carlson, that they - 
 had failed to make a true report, within twenty-four- hours, stating 
 the true price of the sale of a certain car of flaxseed which had been 
 consigned by said Carlson to said defendants at Duluth, to be soM 
 on commission for his account. On January^ 5th, 1904, the^ case 
 came on for trial before a jury, resulting in a verdict of guilty. In 
 this case Mr. Carlson consigned a carload of flax to Edwards- Wood 
 & Co. for sale on commission; the car arrived in Duluth on Jan. 
 19th, 1903. On that day flax opened at $1.18 1-2, went up to 
 $1.19 1-2. Edwards-Wood & Co.. claim that they offered on the 
 Duluth board at $1.19 1-2, but failed to make a sale, and then pur- 
 chased it' themselves. On the next day 'they, sold the flax to the 
 Hall Elevator comipany for $1.20, and reported to Mr. Carlson the 
 sale of the day before at $1.19 1-2'. The court instructed the jury 
 as follows : * 
 
 "The offense charged against the defendants in this proceeding 
 is that of failing to make a true report within twenty^four hours, 
 stating the true price of the sale of the car of flax, which it is clairn- 
 ed was consigned by Carlson to defendants to be sold" on commis- 
 sion. 
 
 "The offense charged is that of omitting to perform a positive 
 duty enjoined upon commission merchants by the law of the state. 
 
 "When grain is consigned to a commission merchant to be sold 
 on commission, it is the duty of the commission merchant to sellit 
 in the open market for the best price obtainable, and to remit to the 
 shipper the amount of thfe same, less his commission and the neces-' 
 sary disbursements. The commission merchant has no right in 
 law, when grain has been consigned to him to be sold on commis- 
 sion, to purchase the grain himself ; an attempt by him to make a~ 
 purchase of such garin is not binding upon the shipper ; and if any 
 such attempt is made, and thereafter the grain is sold .to an actual 
 purchaser, the law requires the comimission merchant to make a true 
 report of the amount received at the sale to the actual purchaser 
 within' twenty-four hours thereafter." 
 
 The attorneys for the defendant entered a motion for a new trial, 
 which was denied. An appeal from this order was taken to the 
 
STATE OF NORTH DAKOTA 55 
 
 state supreme court, which rendered its decision on February 17th, 
 1905, in which no error was found in the instructions or ruHngs 
 of the trial court, and its order was accordingly affirmed. This 
 was followed by the imposition of a fine of one hundred dollars on 
 each member of the defendant firm ,or a total of $400.00 and costs, 
 this being the maximum penalty for such oiiferises. 
 
 The importance of the result in this case can be best appreciated 
 wheii it is considered that this firm was conducting an extensive 
 business with a network of agencies, about two hundred and forty 
 in all, scattered through the northwest. ' After the final proceed- 
 ings were closed, the numerous branch offices of Edwards-Wood 
 & Company at the outside points were gradually closed, and in 
 the course of a short time the firm) retired from business. Other 
 similar systems have extended their branch offices into this great 
 agricultural district, but no further complaints of a like character 
 have reached this office. 
 
 At the present time there are at Minneapolis, St. Paul and Duluth, 
 approximately, two hundred persons, firms or corporations engaged 
 in the business of commission merchants, who handle grain and ag'- 
 ■ricultural products on commission. On the other hand, there are 
 many country shippers corrnprising farmers' eleyator companies, 
 also independent buyers and individual shippers, aggregating a vast 
 number of persons and interests that must of necessity market their 
 grain through the agency of these commission merchants, and who 
 are almost wholly dependent upon their integrity in the handling and 
 disposition of these shipments. It is pleasing, however, in this con- 
 nection, artd only just, to say that cases of default among the 
 commission merchants at the terminal points comparatively speak- 
 ing have been extremely few in number, there having been at all 
 tirmes manifested a general disposition on the part of the officers 
 and members of the great commercial bodies in the cities to. aid the 
 'commission in enforcing the laws and weeding out irregularities, 
 thus maintaining their long established reputation for integrity of 
 purpose and fair dealing. The requireinent that bonds shall be fur- 
 nished by comimission merchants to indemnify shippers against loss, 
 also minimizes to a great extent the risks to which they might other- 
 wise be subjected. 
 
 In- the trial of this case, the question also of the relations be- 
 tween consignors and consignees and the obligations of commission 
 rrierchants under the law was exhaustively discussed and developed, 
 and the immediate effect was to stimulate a desire on their part to 
 become better acquainted with the laws affecting their business. 
 Another important " result from this case was to firmly establish 
 beyand question that the law is valid in all its parts, and that the 
 careful observance o'f its provisions cannot be evaded with im- 
 punity. It has placed the commission merchants' business on a 
 
54 REPORT OF GRAIN COMMISSIONERS. 
 
 by Victor Carlson, a shipper residing at Hallock, Minnesota, this 
 being but one of a large number ofsimilar complaints received- fron^ 
 various shippers in northern Minnesota and North Dakota, which 
 had been filed with the corninission, in each of which it was alleged 
 that false returns had been made by said defendants, with the* re- 
 sult that they had been defrauded of the true, value of their con- 
 - signments of grain and flaxseed shipped , to said defendants who 
 were engaged -in the business of grain commission merchants at 
 Duluth, Minnesota, being duly licensed as such under the law. On 
 December 8th, 1903, the defendants were arraigned in the Duluthmu- 
 ni'cipal court to answer to the charge of said Victor Carlson, that theyv 
 had failed to make a true report, within twenty-four hours, stating 
 the true price of the sale of a certain car of flaxseed which had been 
 consigned by said Carlson to said defendants at Duluth, to be sold 
 on commission for his account. On Januaryv 5th, 1904, the' case 
 came on for trial before a jury, resulting in a verdict of guilty; - In 
 this case Mr. Carlson consigned a carload of flax to Edwards-Wood 
 & Co. for sale on commission; the car, arrived in Duluth on Jan. 
 19th, 1903. On that day flax opened at $1.18 1-2,' went up to' 
 $1.19 1-2. Edwards-Wood & Co. claim that they off ered -on the 
 Duluth board at $1.19 1-2, but failed to make a sale, and then pur- 
 chased it themselves. On the next day'they ,sold the flax -to the 
 Hall Elevator company for $1.20, and reported to Mr. Carlson the 
 sale of the day befor-e at $1.19 1-3; The court instructed the jury- 
 as follows : 
 
 "The offense charged against the defendants in this proceeding 
 is that of failing to make a true report within twenty-four houfs, 
 stating the true price of the sale of the car of flax, which it is clairn- 
 ed was consigned by Carlson to defendants to be sold' on commis 
 sion. 
 
 "The offense charged is that of omitting to perform a positive 
 duty enjoined' upon commission merchant's by the law of the state. - 
 
 "WJjen grain is consigned to a commission merchant to be sold 
 on commission, it is the, duty of the commission merchant to sellit 
 in the open market for the best price obtainable, and to remit to the' 
 shipper the amount of the same, less his commission and the neces- 
 sary disbursements. The commission merchant has no right in 
 law, when grain has been consigned to him to be sold on commis- 
 sion, to purchase the grain himself; an attempt by him to make, a 
 purchase of such garin is not binding upon the shipper ; and if any 
 such attempt is made, and thereafter the grain is sold .to an actual 
 purchaser, the Jaw requires the comimission merchant to' make a true 
 report of the amount received at the sale to the actual purchaser 
 .within' twenty- four hours thereafter." 
 
 The attorneys for the defendant entered a motion for a new trial, 
 which was denied. An appeal from this order was taken to the 
 
STATE OF NORTH DAKOTA 55 
 
 State supreme court, which rendered its decision on February 17th, 
 1905, in which no error was found in the instructions or ruHngs 
 of the trial court, and its order was ^accordingly affirmed. This 
 was followed by the imposition of a fine of one hundred dollars on 
 each member of the defendant firm ,or a total of $400.00 and costs, 
 this being the maximum penalty for such offenses. 
 
 The importance of the result in this case can be best appreciated 
 when it is considered that this firm was conducting an extensive 
 business with a network of agencies, about two hundred and forty 
 in all, scattered through the northwest. After the final proceed- 
 ings were closed, the numerous branch offices of Edwards-Wood 
 & Company at the outside points were gradually closed, and in 
 the course of a short time the firm) retired from business. Other 
 similar systems have extended their branch offices into this great 
 agricultural district, but no f.urther complaints of a like character 
 have reached this office. 
 
 At the present time there are at Minneapolis, St. Paul and Duluth, 
 approximately, two hundred persons, firms or corporations engaged 
 in the business of commission merchants, who handle grain and ag ■ 
 ■ricultural products on commission. On the other hand, there are 
 many country shippers comiprising farmers' elevator companies, 
 also independent buyers and individual shippers, aggregating a vast 
 number of persons and interests that must of necessity market their 
 grain through the agency of these commission merchants, and who 
 are almost wholly dependent upon their integrity in the handling and 
 disposition- of these §hipmerits. It is pleasing, however, in this con- 
 nection, afld only just, to say that cases of default among the 
 commission merchants at the terminal points comparatively speak- 
 ing have been extremely few in number, there having been at all 
 times manifested a general disposition on the part of the officers 
 and members of the great comrnercial bodies in the cities to. aid the 
 commission in enforcing the laws and weedirig out irregularities, 
 thus maintaining their long established reputation for integrity of 
 purpose and fair dealing. The requirernent that bonds shall be fur- 
 nished by commission merchants to indemnify shippers against loss, 
 also minimizes to a great extent the risks to which they might other- 
 wise be subjected. 
 
 In- the trial of this case, the question- also of the relations be- 
 tween consignors and consignees and the obligations of commission 
 mferchants under the law was exhaustively discussed and developed, 
 and the immediate effect was to stimulate a desire on their part to 
 become better acquainted with the laws affecting their business. 
 Another important ' result from this case was to firmly establish 
 beyand question that the law is valid in all its parts, and that the 
 careful observance Of its provisions cannot be evaded with im- 
 punity. It has placed the commission merchants' business on a 
 
56 REPORT OF GRAIN COMMISSIONERS. 
 
 more stable and satisfactory basis tlian before, by insuring a greater 
 degree of protection to shippers, and establishing an increased feel- 
 ing of confidence on all sides. 
 
 Very respectfully yours, 
 
 Charles. F. Staples, 
 
 Commissioner. 
 St. Paul, Minnesota, Novemter 33, 1§08. 
 
CHAMBER OF COMMERCE. 
 
 LIST OF MILLS WITH DAILY CAPACITY OPERATED IN 
 MINNEAPOLIS. 
 
 THE PILLSBUEY FLOUR MILLS CQ. 
 
 Capacity 
 ■ Bb- 
 
 Bbls, 
 
 |i"s5"ry';A" 12,500 
 
 PiUsbury "B" 5,000 
 
 Anchor 3,000 
 
 Palisade 3 000 
 
 Lincoln 1,600 
 
 25,000 
 NORTHWESTERN CONSOLIDATED MILLING COMPANY 
 
 Capacity 
 in Bbls. 
 
 "A" 3,500 
 
 "B" 2,500 
 
 "C" 2,400 
 
 "D" 2,560 
 
 "E" 2,000 
 
 "F" 3,000 
 
 15,960 
 
 THE WASHBURN-CROSBY CO. 
 
 Capacity 
 in Bbls. 
 
 Washburn "A" 10,000 
 
 Washburn "B" 2,300 
 
 Washburn "C" 10,C0O 
 
 Washburn "D" 2,300 
 
 Washburn "E" ■ 2,600 
 
 Washburn "F" 500 
 
 Washburn Rye Mill 800 
 
 28.500 
 Capacity 
 in Bbls. 
 
 Cataract— Barber Milling Co 1,300 
 
 Phoenix— Phoenix Mill Co 800 
 
 Dakota— National Milling Co 700 
 
 Christian— Geo. C. Christian & Co 2,000 
 
 EusseU-Miller Milling Co 3,000 
 
 Nokomis — Yerxa Andrews & Thurston, Inc , 1,000 
 
 Atkinson Mill 1,000 
 
 9,800 
 
 Total Capacity 79,260 
 
 —11,3— 
 
CHAMBER OF COMMERCE. 
 
 ELEVATORS AND STORAGE. 
 
 On Dec. 31, 1915, the 'total storage capacity for grain in Minneapolis 
 amounted to 4'5,50i5',0O0' bia., divided' as follows: 
 
 Public State Elevators, "Regular,'' under Cham'ber of 
 
 Commerce rules. 2'6 31,235,0i0O 
 
 Public State Elevators, "Not Regulaa"," under Cham- 
 'ber of Commerce rules _ 1 6fl0,0OO 
 
 Pri'vate Houses 25 13,680,mo 
 
 Total : 53 45,505,000 
 
PUBLIC DOCUMENT No. 26 
 
 REPORT OF I 
 
 STATE GRAIN COMMISSIONERS 
 
 APPOINTED BY "^"^Z^-^ -- 
 
 THE GOVERNOR 
 
 To Serve on the Minnesota Board of Appeals 
 
 August 26, 1909 to December 31, 1910 
 
 BISMARCK, N. D. 
 
 TRIBUNE, STATE PRINTERS AND BINDERS 
 1910 
 
RliPORT OF 
 
 STATE GRAIN COMMISSIONERS 
 
 APPOINTED BY 
 
 THE OOVERNOR 
 
 To Serve on the Minnesota Board of Appeals 
 
 August 26, 1909 to December 31, 1910 
 
 BISMARCK. N. D. 
 
 rSIBUNE, STATE FRIHTEBS AND BINDERS 
 1910 
 
LETTER OF TRANSMITTAL 
 
 Mi>fNEAPOi<is, Minn.; Jan. 3, 1911. 
 
 •To The Hon. John M. Burke, 
 
 Governor of the State of Jforth Dakota, 
 Bismarck, K. Dak. 
 
 In accordance with Senate Bill No. 345, Enacted by the 
 Eleventh Leg-islative Assembly, Year A. D. 1909, Providing- for 
 two State Grain Commissioners, who were to be appoihted by 
 the Governor of the State, to serve on, the Minnosota Board of 
 Appeals, at the Minneapolis and Duluth Terminals, and having 
 been regularly appointed and commissioned, August 26th, the 
 year 1909, to serve as members of said Board of Appeals, we 
 very respectfully submit the following report: 
 
RDPORT 
 
 Immediately following- our Appointment to office, .We pro- 
 ceeded to Rlinneapolis, where we established our Headquarters 
 office, which, tbroug-h the coiirtesy, of the Railroad and Ware- 
 house Commission of Minnesota, was furnished us. 
 
 Owing to the fact that the law providing- for the said Com- 
 mission, was ilot specific as to our duties; also, that various con- 
 flicting reports had been circulated throughout our State, with 
 regard -to Minnesota's System of Inspection. We felt that bet- 
 ter service could be rendered in the discharge of our duties, by 
 jointly acting together in oiir investigations. We find that the 
 method of detenniniug Grades, and their system of Inspection 
 to be as follows: , 
 
 In compliance with the provisions of Section 2062, Chapter 
 28, Revised Laws of 1905 of the State of Minnesota. The Joint 
 • Minneapolis and Duluth Grain Inspection Boards, (That is the 
 Board of Appeals) meet about the 1st day of August, and estab- 
 lish Grades of Grain,, for a period of one year, which shaH be 
 known, as Minnesota Grades. The Appeal Board consists of 
 six members, three at Minneapolis and three at Duluth, and 
 hold their appointment under the Governor. 
 
 They are the Court of last resort in the matter of Grades. 
 When a ear of grain reaches the Terminal market, it is placed 
 by the Railroad Company upon Inspection tracks, which are 
 provided in each Railroad Yard. A state sampler is on hand 
 in the morning, as soon as it is light enough to see. He takes 
 the seal record of the car.- He then takes a hollow brass tube, 
 and by plunging it thrpugh the grain, to the bottom of the car, 
 in several places, secures a fair sample of the whole load. The 
 sampler re-seals the car, and keeps a record of the State Seal 
 applied. " A sample of the grain is also takgn by a Chamber of 
 Commerce Sampler, which is given to the Consignee. A seal 
 record is also kept by the Chamber of Commerce Sampler. The 
 sample thus obtained by the State Sampler, is placed in a 
 sainple sack, and a ticket giving the number of th« car and 
 initials. The sample is taken to the State Inspection Office, 
 where it is inspected. The Grade and dockage is then de^er- 
 termined, by means of finely adjusted scales, and sieves of dif- 
 ferent kinds. If the shipper is not satisfied with grade or dock- 
 age, he can call for re-inspection. The case is then reviewed 
 
REPORT OF STATE GRAIN COMMISSIONERS 
 
 by the Chief Deputy Inspector, or the Assistant Chief Deputies. 
 In case the parties interested are still dissatisfied, an appeal can 
 be called for. Then the case will be brought before the Board 
 of Appeals, and the Grade and Dockage, determined by them 
 will be final. 
 
 Another duty of the Inspection Department is to make an 
 examination of each car for leaky conditions, and keep a record 
 of it. When grade and dockage has been determined, a certifi- 
 cate of Inspection is issued by the State Inspection Department. 
 The grain is then sold and unloaded. All grades of grain as 
 now graded here are made on its physical appearance. This, 
 we believe to be unjust, and should be made on its commercial 
 or milling value, determined by accurate chemical analysis, and 
 baking tests. We find that wheat that was graded Three 
 Northern, on account of its badly bleached color, made as good 
 flour, and the baking test was equal to the best hard or 'number 
 One Northern Grades. Also smut in wheat affects the grade 
 just to the amount of smut it contains. Take for example, a 
 sample of our best Northern wheat, and let it contain smut, and 
 it will be graded as low as number Three or rejected. This we 
 also believe to be unjust. All wheat is washed by the modern 
 mills of our country, as well as smutty wheat, in order to pro- 
 perly temper it for grinding. We understand the cost is no more . 
 to condition smutty wheat than any other wheat. The smut be- 
 ing all removed by the same operation. This is another good 
 reason why it should be' graded,' on its commercial value. The 
 difference in the price paid for smutty wheat is from four to ten^ 
 cents per bushel under number One Northern price. We find, 
 and it is freely admitted, that about all cargoes loaded out of 
 Duluth, carry one pound and often times more dockage per 
 bushel that is not taken into account or considered. The mix- 
 ing of different grades as they are inspected in and the grades 
 they finally take, on out Inspection is unjust and works to the 
 disadvantage of our state. 
 
 In justice to the Farmers and Growers of Grain we believe 
 the Inspection Department from the samplers to the Board of 
 Appeals inclusive should be taken out of politics and come un- 
 der civil service regulation. So that no person or persons con- 
 nected -with the service would depend on holding his job upon 
 the success or failure of any political party. No doubt the 
 matter -of weighing Grain at the Terminals, at Minneapolis and 
 Duluth and other weighing stations, have been more severely 
 complained of, than any other department of the grain business. 
 But we believe, not always justly, from the fact the shippers do 
 not always weigh their grain. The manner of weighing we 
 find to be as follows: 
 
 First, The State Weigher examines the car, for bad order 
 
STATE OF NORTH DAKOTA 
 
 or leaky conditions. If any are found, a complete record is 
 made of these conditions. Before unloading the weigher takes 
 a record of the seals. The car is then placed at the unloading- 
 pit and the grain elevated to the garner located above the scale 
 hopper. * The scale is balanced and the grain drawn into the 
 scale hopper, and weighed, and the weight recorded, in a boolf 
 provided for that purpose. The weigher then takes a special 
 ticket, and bv means of a type registering device, a printed 
 record of the weight is obtained, which must correspond with 
 the weights in the record book. All State scales are equipped 
 with this type registering device* 
 
 In the large elevators, the weighing is done on hopper 
 scales in the cupola. Here two men are required for the work. 
 One up stairs does the weighing, and the one below keeps the 
 seal record, sees that the cars are properly placed for unloading, 
 and that the cars are swept. He then signals the weigher 
 above that the grain is all elevated. It is then weighed. 
 
 At some places track scales are used. In weighing in this 
 instance the car is uncoupled from other cars, and weighed on 
 the scale platform. When emptied, the car is weighed back 
 and the net weight is thus obtained and the record kept, same 
 as the hopper, scale weights. The State of Minnesota has a law 
 requiring the shipper to place a card in the car, giving the 
 shipping weight. We find, that not ten per cent of the ship- 
 pers comply with this .law. It is very important that they 
 should do so, for then the State Weigher, would note any differ- 
 ence between the State Weight and the Shipper's Weight, while 
 the grain was still in the hopper. ^The matter could tljen be 
 immediately investigated, -and if loss was caused by leaky con- 
 dition of the car, the shipper would have valid claim against 
 the Railroad Company. He would know the actual amount of 
 his loss, and settlement could be more easily obtained. Each 
 day the Weigher sends reports to the State Weighmaster's 
 office, fiom which an Official Certificate of weight is issued, 
 giving the ciar number, initial, contents, State Weight, the date 
 and place where weighed, and if found in bad order, notation is 
 made o;i the Certificate. 
 
 We have found that in several instances, where we were 
 asked to investigate cases of shortages, that the car, or cars of 
 grain, that had been consigned to the Commission Company, by 
 our shippers, after having been Inspected by the Minnesota In- 
 \spection Department, but not weighed by them, were reconsign- 
 ed by the Commission Company, to mills elsewhere in the State 
 of which they were Stockholders. The said Milling Company 
 not having a State Weigher issued a private Certificate of 
 weight which was nearly identical with the regular Minnesota 
 State Certificate of Weight, differing only in having been signed 
 
8 REPORT OF STATE GRAIN CO:>IMISSIONERS 
 
 Weig-hmaster instead of State Weig-limaster, as the regular 
 State Certificate would show. The shipper believed he had re- 
 c6ived the regular Minnesota Certificate of Weight. 
 
 ' The number of bad order cars, that is today, cars, without 
 seals, or doors and having leaky sides, ends or bottoms, found 
 by the State Weighing Department for the past five years, will 
 average more than fifteen thousand cars each year, at ■ Minne- 
 apolis alone. 
 
 The following table of bad order conditions we believe will 
 be of interest. We find the total number of cars weighed at 
 Duluth in the months of September, October, November and 
 December, 1909, were 25,979 ears. The total riumber of leaky 
 cars at Duluth for the same period was 7,225: The total num^ 
 ber of cars weighed at Minneapolis tor the months of Septem- 
 ber, October, November and December, 1909, were 56,214. The 
 total number of leaky cars was 3,502 for the same period. 
 
 Other bad conditions were as follows: Cars received with- 
 out seals at Minneapolis and Duluth, 5,486, patched cars re- 
 ceived at Minneapolis and Duluth. 6,009, car door's found open 
 at Minneapolis and Duluth, 1,597, and numerous cars found 
 without doors and with other defects. Thus it can be readily 
 seen why there are so many shortages in weights complained of. 
 A visit to the various railroad and Inspection tracks, which by 
 the way, are commonly known as the "wheat fields" eft Termi- 
 nals, and see hundreds of bushels of wheat that are strewn, and 
 wasted, often times through lack of care and careless switch- 
 ing and handling of cars, would convince any shipper of grain,' 
 
 the necessity of weighing his grain and placing a card in the 
 car, showing the actual net weight. We would advise that 
 every Farmers' or Independent Elevator of our State, should be 
 equipped with an automatic scale and every car weighed before 
 shipping to Terminal markets, and a card placed in . the car, as , 
 required by the Minnesota State law. These scales are not ex- 
 pensive, easily installed and do not require much room or need 
 much, attention. ' 
 
 One of the most important things done in connection with 
 Inspection and Grading of grain at Minnesota Terminals, and 
 Sampling stations, is the sampling of cars. This should be done 
 thoroughly, fairly, and by men of unquestionable honesty and 
 integrity, who would always comply, with the rules, and regula- 
 tions governiag the taking of samples. This we. find is not al- 
 ways done, but instead, what is known as a grab sample is tak- 
 en even from cars ordinarily loaded, which statement' can be 
 verified by reference to the numerous times, that it is necessary, 
 to have new samples taken, and the calls from mills and elevat- 
 ors for reconsideration on grades and dockage after the cars are 
 
STATE OF NORTH DAKOTA 
 
 Opened and unleading commenced. These calls are invariably 
 for lower grade. No doubt there are as many cases where the 
 grade fehould be raised. There were appealed to the Grain In- 
 spection Boards (Appeal Boards), ^t Minneapolis and Duluth 
 for the year ending July 31st, 1910, 49,181 cars, of which 10,184 
 cars the grade was raised, and dockage lowered on 1,196 cars. 
 The appeals for the year ending July 31st, 1910, were greater 
 in number than the appeals for any previous year, in the his- 
 tory of the Appeal Board, by 14,419 cars. The average number 
 of cars inspected for the past previous five years, was 267,849 
 and t£e average number of cars appealed fot the same period 
 was, 25,788. Thus it appears that the Appeals for the year 
 ending July 31st, 1910 exceeds the average Appeals for the pre- 
 vious five years by 23,393 cars. The shippers were benefitted 
 the past year through the Appeals Department to the amount 
 of $250,000 or more by the raising of Grades and lowering of 
 dockage. 
 
 It is the intent of the Minnesota State Inspection Laws, , 
 that the name of any shipper, consignee or the name df the Ap- 
 pellant or any car inspected, re-inspected or Appealed should 
 not be known to the Inspection or Appeals Departments. We 
 find that the Appellant at Minneapolis sign all appeal orders, 
 but do not sign them at Duluth. The signing of these orders 
 at Minneapolis, we believe, should not be permitted. 
 
 The question of Durum Wheat, may well be touched upon 
 this report. At the Terminals of Minneapolis and Duluth, 
 there are received each year about 30,000,000 bushels of this 
 wheat, which according to analysis, and baking °t6sts, made 
 both by state and private laboratories, makes as good a loaf in 
 nearly all particulars, as good number One Northern Wheat. 
 Such being the case, it is contended by the best authorities that 
 the commercial value of the two grains ar^ about the same, and 
 at the outside there is only five cents per bushel difference in 
 favor of the best Northern Wheat. The difference in price 
 however is from 20 tents to 25 cents per bushel, between the two 
 classes of wheat. A difference of about five or six million dol- 
 lars each year, on the real commercial value of the wheat. * 
 
 Who gets this large sum of money? Surely not the farmer 
 or growers of this wheat. In going through some of the large 
 mills of Minneapolis, we hp.ve taken samples of the wheat go- 
 ing into the rolls and have found ten per cent or more of the 
 samples being ground int,q flour to be Durum Wheat. Minne- 
 apolis receives from eight to nine million bushels per year of 
 this wheat. 
 
 From our observation, we are lead to believe that seventy- 
 five per cent or more of all the Durum received at Minneapolis 
 
10 .REPORT OF STATE GRAIN COMMISSIONERS 
 
 is mixed with our Northern Spring- Wheat and made into patent 
 flour. 
 
 After havingf made a tnorougfh and exhaustive investigation 
 of the present method of handling grain at the Terminals of 
 both Minneapolis and Dulutti, we have reached the following" 
 conclusion: That the only proper and profitable way for the 
 people of our state to handle their grain is by establishing state 
 warehousfes, at Minneapolis and Duluth or Superior and pos- 
 sibly at points within our state. Our reason for this conclusion 
 is, that our wheat being acknowledged the best in the United 
 States is much sought after by millers everywhere, and if it was 
 handled by our own terminal houses under our own State In- 
 spection, thoroughly cleaned and conditioned and, when shipped 
 out either in car or boat accompanied by our North Dakota Cer- 
 tificate of Inspection, it would not loose its identity, and would 
 command a premium anywhere from five to eight cepts per 
 bushel more than we are now getting for it. We have been ad- 
 vised by Eastern Millers that they would be glad to pay the 
 above premium for our North Dakota -y^heat, if they , could get 
 it in its purity. By the establishment of State Warehouses or 
 Terminals, our people could save to themselves not only this 
 premium amounting to about $3,400,000.00 but also the dockage 
 which has a value of about *$1, 350,000.00 on wheat and flax each 
 year. Also commissions and other charges amounting to about 
 $760,000.00 per year. There is another item of loss that should 
 be taken into consideration. That is the loss on weights, which 
 is of frequent occurence, and hard to estimate, but no doubt is 
 quite large. Under the present methods, in a great many cases, 
 our wheat loses a gr^de, and in some instances two fifrades at 
 the Minnesota Terminals, by reason of the dockage it contains. 
 By having oiir own terminals to condition this wheat we could 
 save these grades, and thereby save the Grain Growers of our 
 State,' on premiums"," dockage, grades, ^loss on weights, commis- 
 sions and other terminal charges, about $5,500,000.00 annually. 
 
 This you understand, does not take into consideration the 
 loss our farmers sustain, at the local end of the business. But 
 only at the Terminals or selling end. For the past five years, 
 our state has shipped on an average of 60,000,000 bushels of 
 wheat, and 13,000,000 bushels of flax, which at two and a half 
 cents per bushel profit to the local elevators would amount to 
 $1,825,000.00 each year. And in addition to this, must be taken 
 into account, the short weights, ov* dockage, and undergrad- 
 ing done by many local elevators, of which our farttiers so 
 grieviously complain. There is no doubt that the farmers sus- 
 tain a very heavy loss from these causes. We believe more than 
 $1,000,000.00 each year. The loss that our grain growers are 
 sustaining each year, by the present method of handling their 
 g-rain would be about $8,325,000.00. This loss to our grain 
 
STATE OF NORTH DAKOTA , 11 
 
 growers would build or buy fully equipped one thousand local 
 elevators, and provide; a Terminal House with a storage capaci- 
 ty of 5,000,000 bushels each, at Minneapolis and Duluth or 
 Superior. Among the many other good reasons why this system 
 would be of great benefit to our grain growers, is that if for any 
 cause, at any time, throughout the year, the price was low, and 
 the grower did not wish to sell his grain and needed money to 
 take care of his current expenses, he could ship his grain to our 
 State Terminal, and store it at the actual cost of the storage, 
 and receive our State Storage Certificate, which he could use as 
 security for loans, at a very reasonable rate of interest, As 
 there is no better security offered than warehouse , receipts, 
 especially when they are issued by the State, money can be had 
 at times as low as three per cent. And as high as hinety per 
 cent of the value of the grain, will be advanced on State Term- 
 inal Warehouse Receipts. 
 
 As our state is almost entirely devoted to agjriculture, and 
 its greatest industry is by far the production of grains, of which 
 we produce more wheat on an average, than any other state in 
 the Union. And have been producing more than one-half of all 
 the flax grown in the United States, we believe that the proper 
 handling of these products is one of the most important matters 
 now before the people of our sta:te. And to our mind, the State 
 Warehouse or Terminal is the only remedy fos the evils from 
 which our grain producers suffer. We would therefore earnest- 
 ly ask our state legislators to give this all important matter 
 their most serious consideration. Drawing our conclusions from 
 our observations, experience and labor, since receiving the ap- 
 pointment of State Grain Commissioners, we believe our state 
 legislators ■«<rill make no mistake if they provide for a contin- 
 uance of the office of State Grain Commissioners until such time 
 as the state shall have its own terminals. We believe the duty 
 of the commission in connection with its duties on the Appeal 
 Board, would be to maintain a bureau of Information, and In- 
 vestigation where the shippers of our state could report and 
 have investigated all cases of irregularities in the matter of 
 grades, weights, dockage, etc. We would recommend that one 
 of the. Commissioners be located at Minneapolis the other at Du- 
 luth, and that the expense of maintaining an office , at each 
 place, be provided fot by our state. It is true that our Commis- 
 sioners can have no voice in the decisions of the Board of Ap- 
 peals under the present rules as laid down by the Legislature of 
 Minnesota, but their very presence alone will be a great influ- 
 ence to promote just decisions and prevent careless methods of 
 grading. The great milling interests and large purchasers of 
 grain .have representatives who find it among their duties to 
 call on the Inspection and Appeals Departments to urge and re- 
 quest that grades be lowered and dockage raised and for other 
 
12 REPORT OF STATE GRAIN CX>MMISSIONERS 
 
 favors of value. We believe that the grain producers of our 
 state should not be without their representatives also upon the 
 Minnesota Departments of Inspection, 
 
 We commend most highly, all of the officers; and their 
 deputies, both at Minneapolis aiid Duluth, who harie charge of 
 Inspection, "Weighing and the Appeals Department, for their 
 very courteous treatment accorded us at all times. 
 
 We wish to especially acknowledg'e our appreciation of the 
 action taken at the beginning of our term of office, by Mr, F. 
 W. Eva, Chief Grain Inspector, who instructed the officers of 
 the various departments, to grant us the privilege of making 
 inquiries, as to the details of their methods of accounting for 
 the crop each year as it is received at the Terminal markets, 
 and be given acceiss to any and all records kept by them which 
 has made our work in connection with the departments, . most 
 agreeable. ^ 
 
 Respectfully submitted, 
 
 J. T, Clifford, 
 
 H. O. Brown.