Evening Republican, Volume 21, Number 180, Rensselaer, Jasper County, 16 August 1917 — GRAIN MEN UP IN AIR [ARTICLE]

GRAIN MEN UP IN AIR

GREAT CONFUSION IN GRAIN MARKET CAUSED BY NEW FOOD LAW.

About twenty-five of the grain dealers of this part of the state held a meeting at the Makeever house Wednesday evening. Charles B. Riley, president of the Indiana Grain Dealers Association, was here and addressed the men. He went over the feed, fuel and flour law just enacted by the congerss of the United States and explained its provisions as far as it was possible. He explained that the minimum price of $2.00 placed on wheat does not apply to the 1917 crop but to the crop of 1918.

He warned the dealers present that they must' be exceedingly cautious in their buying and that they no longer have any protection frqjn radical and. severe fluctuations in prices of all grains. That part of the law prohibiting the dealing in grain futures on the board of trade after the 15th of this month make it absolutely impossible for the grain man to protect himself. Cash grain is much higher than Septmeber grain, but if the dealer buys on the cash basis on account of the car situation he may not be able to get his grain on the market bemore September. Many dealers are now paying within a very smpll margin of the September-price and will have to sustain a loss if they cannot get the grain bought on the market at once. He urged the dealers to go slow and buy carefully or they are in danger of being ruined by the uncertainty and the possible decline in the prices of grain. After President Riley had gone over the whole situation and had carefully reviewed the law the several dealers were called upon and were asked to give their ideas of the future development and also a statement of the present situation. W. C. Babcock, of the firm of Babcock & Hopkins, of this city, and possibly one of the best posted grain men in the state was the first gentlemen called upon. Mr. Babcock said that it was the worst condition he had ever been up against. This firm has a considerable amount of old corn, for which they paid a high price, but on account of the car shortage were unable to move and now stand a chance to lose from 40 to 60 cents a bushel. They had had a car of smutty wheat and the other wheat they had taken in would run as high as 17 per cent cheat. This is a loss as this is simply deducted from the wheat when sent to the terminal. For a while there was too much moisture Jn much of the wheat but that has now been overcome by the dry weather. Under conditions he felt that it would be impossible to make a price on wheat until more was known as to what the government would do in reference to price and handling. He reported that oats were of splendid quality and that a good price could be paid for them if the cars wtire obtainable. He thought, however, that it was the shortage of cars that was keeping up the price and that if normal facilities maintained for the immediate marketing of oats that the market would be overdone and the price driven down. < ■ ..

He said the car situation was the very worst he had ever seen it and that at many points at which they were buying grain they had had no cars at all. He was very much worried about the situation and could see no change for the better in the immediate future. He was sure that all dealers who had contracted grain, whether wheat or oats, are sure to sustain a considerable loss. All of the other men present were of the same opinion as Mr. Babcock and all seem to think that the lucky grain dealer this year was the fellow who had not bought much contract grain. Mike Duffy whd owns the Morocco elevator and besides, seven or eight hundred acres of land, . thinks that the government is taking lessons from the Kaiser in the placing of so much power in the hands of one man. He was a great admirer of President Wilson but he thought that the law in reference to grain gave him entirely too much power. -- There seemed to be a desire on the part of the dealers present to give the farmer the very greatest price possible for his grain, but present conditions seem to make it very uncertain as to what that price should Jt is possible that after the law has been put into operation the situation may clear up and that matters may adjust themselves to the advantage of all concerned. In the meantime it sure is going to be mighty tough sledding for the grain buyer.