REPORT OF THE CHIEF OF THE BUREAU OF MARKETS.

UNITED STATES DEPARTMENT OF AGRICULTURE,

BUREAU OF MARKETS, Washington, D. C., October 1, 1918.

SIR: I have the honor to transmit herewith a report of the work of the Bureau of Markets for the fiscal year ended June 30, 1918.

Respectfully,

CHARLES J. Brand,
Chief of Bureau.

Hon. D. F. HOUSTON,

Secretary of Agriculture.

During the fiscal year ending June 30, 1918, emphasis was placed upon those phases of the work of the Bureau of Markets which would be most directly helpful to the Nation in successfully prosecuting the war with Germany. Projects of the greatest emergency value were expanded by the use of emergency funds appropriated by Congress, and the work of other projects was rearranged wherever it was possible to add to its immediate usefulness. Close cooperation has been maintained with the Food Administration, the War Industries Board, the Quartermaster's Department of the Army, the purchasing officers of the Navy, Councils of Defense, and all other Government agencies actively engaged in war work.

Wherever possible investigational work was superseded by demonstrational and service work, not because it was felt that these investigations were completed or should be discontinued, but because emergency conditions demanded that the knowledge and experience gained in previous years, especially that bearing on the more efficient distribution and conservation of food products, should be made immediately available.

The market news services on fruits and vegetables and live stock and meats, which had been established on a relatively small scale before war was declared, were widely expanded by the use of emergency funds. It was recognized that work of this character, valuable in time of peace, gained in usefulness in time of war on account of the imperative necessity of successfully conserving and making the most efficient distribution of the food supply of the Nation so as to make it adequate for our own needs and those of the Allies.

With the assistance of emergency funds it has been possible to build up a complete machine for the national interchange of market information on fruits and vegetables and to extend the service on live stock and meats, not as completely as desirable, but to a point where it meets much more adequately the needs of producers, consumers, and other interested persons. Market news services, financed with emergency money, have been instituted to cover dairy and poul

try products, grain, hay, and milled feeds, and seeds. In addition to the telegraphic market news services, a local market reporting service has been instituted in about 15 cities. In the course of this work agents collect information regarding local supplies and prices of farm produce on city markets, special attention being given to that produced in contiguous territory. This information is published in nontechnical form in local newspapers.

The Food Products Inspection Service was instituted in the fall of 1917, as an emergency measure, to supply shippers with certificates regarding the condition as to soundness of their fruit and vegetable shipments upon arrival at large central markets. This service answered such an evident need on the part of producers and shippers that it was placed on a permanent basis by Congress, which inserted an appropriation therefor in the act making provision for the conduct of the Department of Agriculture in the fiscal year 1919.

Investigational work formerly undertaken in order to educate producers regarding the proper methods of picking, grading, packing, handling, storing, and shipping fruits and vegetables has been made the basis for extensive demonstrations, in order to apply at once the results of previous investigations. Much attention has been devoted to the proper construction of refrigerator and heater cars and storage houses, and the recommendations of this Bureau regarding car construction have been accepted by the Railroad Administration and other agencies, which have put them into immediate effect.

The staff of practical transportation experts of the bureau has been augmented, to assist shippers in obtaining cars, or to render other traffic assistance made necessary by the present unprecedented strain on the country's transportation facilities. All appeals for assistance in solving transportation problems which reach the Department of Agriculture are referred to this bureau for attention.

The food survey project conducted by the bureau constitutes our largest piece of emergency work not directly related to or developed from activities previously instituted. Interesting and valuable information has been obtained through this survey, which will be of great assistance in intelligently directing the consumption of the food supply of the Nation. Another large project undertaken by the Bureau of Markets as a piece of emergency work was the distribution to farmers of the nitrate of soda purchased by the Department of Agriculture under authority contained in the food control

act.

The rules and regulations formulated for the conduct of the bureau's regulatory work were designed for operation in normal periods and, therefore, in some instances were not entirely suited to the changed conditions brought about by the war. It has been necessary, therefore, to revise them in some respects and to make some changes in the standards established for various commodities. The control of the wheat crop by the United States Food Administration Grain Corporation and the fixing of wheat prices made it necessary to revise the wheat standards established under the United States grain standards act, and extensive hearings were held throughout the country to insure due consideration of the interests of all before the revision was made.

The Bureau of Markets has been designated to perform the work incidental to stockyards control, recently instituted as a result of

the President's proclamation of June 18, 1918. Regulations for stockyards, commission men and all others dealing in live and dead stock in or in connection with stockyards were issued July 26, 1918. The Bureau of Markets has labored under the same difficulties which recently have beset all civil branches of the United States Government, in obtaining and retaining the services of competent and qualified employees. Since war was declared it has lost over 264 men who have entered the military service. Several hundred employees have responded to the financial inducements offered by commercial agencies and the newer branches of the Government service not bound so closely as the older departments by statutory restrictions regarding promotions. Still others have left on account. of the discouraging housing and transportation conditions encountered by persons residing in the city of Washington. These constant changes in personnel have made the conduct of effective work extremely difficult.

For the sake of convenience the work of the bureau is shown in the following detailed report under three classifications: (1) Investigational and demonstrational, (2) service, and (3) regulatory.

INVESTIGATIONAL WORK.

FOOD SUPPLY INVESTIGATIONS.

This work was instituted pursuant to an appropriation of $50,000 to be used during the fiscal year 1918 for an investigation covering the "production, transportation, storage, preparation, marketing, manufacturing, and distribution of agricultural food products, including the extent, manner, and methods of any manipulation of the markets or control of the visible supply of such products, or any of them, by any individuals, groups, combinations, or corporations." A letter from the President, dated February 7, 1917, directed the Department of Agriculture to cooperate with the Federal Trade Commission in investigating and reporting the facts relating to the production, ownership, manufacture, storage, and distribution of foodstuffs and by-products, and in ascertaining the facts bearing on alleged violations of the antitrust acts, etc.

This agreement also provided that in so far as the live stock and meat industries were concerned all investigations of manipulations connected with the operation of public stockyards at centralized markets and all investigations affecting the operations and manipulations of packing companies should be conducted by the Federal Trade Commission, the activities of the Department of Agriculture ceasing at the time the live animals passed into the control of the packing companies.

Live stock and meats and the food-producing grains and their products have been the most important commodities involved in these investigations, which are under the direction of Mr. C. S. Cole.

Representatives of the Bureau of Markets have obtained 880 itemized records of individual shipments of live stock, either by following the stock from farms and ranches to shipping stations and from shipping stations to markets or by taking data relative to actual shipments from records which have been kept by farmers, live-stock shippers, and managers of live-stock shipping associations. The tabulations of these data show the shrinkage in transit and the cost

of marketing 29,980 hogs, 2,995 cattle, and 4,058 sheep. The records of hog shipments tabulated include 122 cars shipped during December, January, and February; 60 cars shipped during March, April, May, October, and November; and 10 cars shipped during June, July, August, and September, by farmers and local shippers or dealers; and 71 cars shipped during December, January, and February by cooperative live-stock shipping associations.

The investigations regarding grain marketing have been productive of valuable information which should enable this bureau to draw definite conclusions regarding the efficiency of various types of elevators, the results of the practice of mixing and conditioning grain, the conditions now governing the storage of grain, the effect of future trading on spot values, pit scalping, methods of handling grain in terminal markets, and the operation of "wire houses," grain exchanges, clearing houses, and grain commission firms.

Figures regarding operating costs for five years have been obtained from the books of over 400 elevators in North Dakota, Nebraska, Kansas, Oklahoma, and Colorado, and an intensive study has been made of the operation of over 130 elevators in Illinois and lowa. Information has been obtained regarding the actual prices paid by elevators to farmers, the flow of grain by months, and the cost of handling grain, together with profits and losses.

An intensive study has been made of the operations over a period of five years of three large terminal elevator companies in Chicago. Information regarding the "in" and "out" grades and the total purchases and sales of cash grain for a period of five years has been obtained from the original records of these firms, and has been classified to show the source of grain supply, the period of heavy and light purchases, the class of dealer from whom grain was purchased, the basis upon which grain was bought, and the class of dealer to whom it was sold.

Copies of the leases of elevators owned by railroad companies have been secured, and the terms of these leases have been analyzed.

A detailed study has been made of the operation of large "wire houses" in Chicago. Financial statements have been examined which show profits and losses, costs of operation, and sources of income. An analysis has been made to show the occupation of the customers of and the mileage controlled by such houses, and the distribution of their branch offices and correspondents, together with the population they serve.

A study has been made of "pit scalping," in order to obtain definite information regarding the actual operations of typical pit scalpers, the functions performed by such operators, and the costs of their operations.

A comparative study has been made of the methods of clearing houses in Chicago, Minneapolis, and Kansas City. In this study information has been obtained regarding the organization, membership, rules, and operations of the various committees, with a view to ascertaining the reasons for their existence and the functions performed by each.

An analysis has been made of the accounts of the largest grain commission firms in Chicago. Costs of operation have been segregated, sources of profit have been carefully analyzed, and a general study has been made to ascertain the economic function which com

mission merchants of this sort perform. Records were obtained from these firms regarding the purchase and sale of more than 250,000 cars of grain.

FOOD SURVEYS OF THE UNITED STATES.

These surveys have been conducted under the authority of the food production act and have been directly supervised by Mr. C. W. Thompson. Close cooperation has been maintained with the Food Administration, and the work contemplated for the coming year will follow lines laid down in conference with representatives of that body. Information has been obtained regarding the quantities of important food commodities in the hands of manufacturers, storage concerns, wholesale and retail dealers, at various dates within the year, and regarding the stocks of raw materials on farms and foodstuffs in households. Two comprehensive surveys of commercial stocks have been completed, one under date of August 21, 1917, covering 18 selected items, and a second under date of January 1, 1918, covering 86 items. A comprehensive survey, covering the commercial holdings of 67 food commodities on July 1, 1918, is under way.

information regarding farm stocks was obtained for the first and second surveys with the aid of the Bureau of Crop Estimates.

Reports of household stocks and household consumption were secured, in cooperation with the States Relations Service. In connection with this survey a special dietary study was undertaken, the Jesults of which promise to be of great value.

To aid in determining the production of the various cereals for the crop year 1918, reports are being obtained direct from thrashers, with the assistance of the States Relations Service.

Since April 1, 1918, monthly reports with regard to commercial stocks of grains and grain products have been secured from elevators, mills, warehouses, and wholesale dealers in grain and flour, and since May 1, 1918, similar reports, covering sugar, condensed milk, and canned goods, etc., have been secured from wholesale grocers and from certain manufacturers.

The results of the survey of August 31, 1917, were published in six circulars in the Office of the Secretary series, reporting the supply in the United States of sugar, lard, canned salmon, and the commercial stocks of miscellaneous cereals, vegetables, foodstuffs, wheat and flour, and miscellaneous animal food products.

Since April, 1918, a monthly publication entitled "Food Surveys" has been issued, giving the results of the monthly reports above referred to. Special issues also have been published, giving in detail the results of the survey of January 1, 1918, with diagrams for the graphic presentation of important features.

FERTILIZER SURVEYS.

A survey relative to the supply of fertilizers and fertilizer materials on hand, imports, production, and producing capacity, was made under date of October 1, 1917, and supervised by Messrs. C. W. Thompson and D. S. Murph. Reports were obtained from all branches of the fertilizer industry, including importers, manufacturers, and mixers, miners (of phosphate rock), wholesale dealers, and retail dealers. The results of this survey were published in Office of the Secretary Circular 104, Commercial Stocks of Fertilizer