Interstate Commerce Commission. In practice the Commission has confined itself mainly to the prevention of undue discrimination in so-called elevator allowances, which the railroads sometimes pay to elevator concerns at transfer points for the transshipment of grain. The allowances may be in the form of so much per bushel or one hundred pounds of grain handled, of a lease of railroad elevators to the concerns free of charge or at favorable terms, or in some other form. The United States. Supreme Court has upheld the payment of reasonable allowances for services rendered, but the Interstate Commerce Commission has the power to prevent undue discrimination in the payment of any allowances for elevation, transfer, mixing, cleaning, clipping, drying, weighing, storage, "loading out," or other interstate elevator service.11

The Department of Agriculture also became a factor in the regulation of grain elevators under the United States Warehouse Act of August 11, 1916, as amended July 24, 1919 and February 23, 1923. This act, which applies to elevators in warehouses where grain "is or may be stored for interstate or foreign commerce or if located within any place under the exclusive jurisdiction of the United States in which grain may be stored" is voluntary or optional in its application. A warehouse or elevator, even though used for the storage and handling of grain moving in interstate or foreign commerce, is not subject to the terms of this act unless the concern operating it voluntarily makes application to the Secretary of Agriculture to declare it a "federal warehouse." The act specifically states, also that the provisions contained in it are not to interfere with state laws or ruling of state commissions concerning grading and standards.

Upon application, the Secretary of Agriculture may issue a license to an elevator owner or warehouseman entitling him to act as a "federal warehouseman." A reasonable charge may be made for every examination or inspection of an elevator or warehouse made upon such application, and if a license is

11 See 222 U. S. 42. For I. C. C. decisions see 12 I. C. C. Rep. 112, 15 I. C. C. Rep. 326, 17 I. C. C. Rep. 192, and 18 I. C. C. Rep. 664,

granted an annual fee not exceeding two dollars is charged for each license or renewal. The elevator or warehouse when so licensed must carry out all the provisions of the Warehouse Act and of the Federal Grain Standards Act which will be discussed in a subsequent chapter dealing with grain inspection and grading.12 It is also subject to regulations as to the duties of a federal warehouseman prescribed by the Secretary of Agriculture.

A federal warehouseman is required to file an approved bond in which he agrees to abide by State and Federal regulations. He is prohibited from discriminating between persons desiring to avail themselves of elevator or warehouse facilities and is required, so far as available capacity permits, to accept all agricultural products of the kinds customarily stored.

The issue of storage receipts is required subject to a code of regulations. The issue of other than original receipts is prohibited except in case of a lost or destroyed receipt when a new receipt may be issued in compliance with federal or state. statutes. Delivery of stored commodities is compulsory on demand either of the holder of the receipt or the person who stored them when such demand is accompanied with an offer to surrender the receipt, if negotiable, with proper endorsements, to satisfy the warehouseman's lien, and to sign an acknowledgment of delivery. Upon delivery each receipt is to be canceled. Every licensed warehouseman, moreover, is required to keep correct records of all grain stored and withdrawn and all receipts issued returned and canceled and to make reports to the Secretary of Agriculture concerning the condition, contents, operation and business of each federal warehouse or elevator.

The contents of receipts issued by federal warehousemen are also defined under the United States Warehouse Act. Their written or printed terms shall disclose: (1) the location of the elevator or warehouse; (2) the date of issue of the receipt; (3) a consecutive number; (4) whether the stored grain will be delivered to bearer, to a specified person, or his order; (5) 12 Chapter XVI.

the rate of storage charges; (6) the quantity of grain stored and its grade in accordance with the standards which have been promulgated by the Secretary of Agriculture; (7) a statement to the effect that the receipt is issued subject to the terms of the United States Warehouse Act and the regulations prescribed under it; (8) the fact of ownership in case the receipt covers grain owned by the warehouseman either solely or jointly with others; (9) the amount of known advances made and of liability incurred for which a lien is claimed; (10) such other conditions as may be lawfully required by the Secretary of Agriculture, and (11) the signature of the warehouseman or his agent.

The United States Warehouse Act applies not only to grain elevators or warehouses, but also to warehouses in which wool, cotton, tobacco, flaxseed and other farm products are stored in interstate or foreign commerce or in places which are under the exclusive jurisdiction of the federal government. An amendment of February 23, 1923 authorizes the Secretary of Agriculture to define the term "agricultural products."

Sources of Elevator Profits.-The income of the terminal elevator concerns is derived from different sources. As public warehousemen they are paid storage charges, the maximum of which is limited by the states or by the grain exchanges. At Chicago, for example, the maximum storage charges at "regular" elevators are 14 cent per bushel for the first ten days and 20 of a cent per day thereafter. Grain stored in public elevators at some markets may also be placed into separate bins upon request of the grain owner, in order that it may be cleaned, mixed, dried or otherwise improved, and the warehousemen are entitled to pay for such services. The income from this latter source is small, however, because grain owners seldom avail themselves of this privilege. The profits of the warehousemen, who deal in grain, are mainly derived from the sale, storage and handling of grain which is owned by them. As grain dealers they obtain a profit by purchasing grain at one price and selling it at a higher price. They also mix grain in their private elevators or in private bins, so as to raise the grade of a part of the poor grades of grain purchased from the

REGULAR WAREHOUSE RECEIPT FOR GRADED GRAIN

No.

This Grain is subject to our advertised
rates of storage

Regular Warehouse Receipt for Graded Grain

and the surrender of this receipt, and payment of charges.
It is hereby agreed by the holders of this receipt
that the Grain herein mentioned may be stored with
other Grain of the same quality by inspection, in ac-
cordance with the Rules and Regulations of the New
York Produce Exchange. Loss by Fire or heating at
owner's risk.

FORM XI.

.Bushels
.subject

COUNTERSIGNED

Regular Warehouse System Receipt for Graded Grain

and the surrender of this receipt and payment of charges.

.Bushels
..subject

It is AGREED by the holder of this receipt that the grain herein mentioned may be
stored, and shall be considered to be and treated as if it were actually stored, with all other
grain in said System of the same grade by inspection, in accordance with the rules of
the New York Produce Exchange, and that delivery under this receipt may be made of
grain of the same grade out of any of the warehouses in said System. In case of
loss or damage by fire in any part of said System, so much of said grain as shall bear
a like proportion to this receipt as the lost or damaged grain of the same grade shall bear
to all grain of like grade in this System of warehouses at the date of any such fire, shall
be adjudged lost or damaged; and the obligation to deliver it under this receipt, except, as
salvage, canceled; loss by fire or heating at owner's risk.

It is also AGREED that this grain is subject to the payment of our advertised rates
of storage, and that accrued storage must be paid April 30th and October 31st in each year,
and if not so paid, an extra charge of 4 cent per bushel shall be made.

FORM XII.