The Risks of the 'Shipper’s Order' Grain Hustle
A federal warning exposes how unlicensed speculators were clogging rail yards with hay and grain they couldn't afford to pay for.
The story, cleaned up
A cleaned-up reading of the newspaper page: spelling and layout repaired, one story lifted off a crowded page. It follows the original closely but it is not a transcription. The original page is below; read it if a detail matters.
Farmers and shippers of grain, hay, and feed are cautioned by the Bureau of Markets to deal only with known, responsible buyers. A risky transaction known as the 'shipper's order bill of lading' is being exploited by operators with insufficient capital. These buyers order shipments hoping market prices will rise, allowing them to flip the product to a local dealer for a profit. When the price fails to rise, the speculators have no cash to meet the drafts, leaving the shipper with the burden of the goods. In one egregious case, an investigator found a single operator with 22 cars sitting on tracks, papers for 17 more in transit, and further shipments pending, all while the goods sat idle for weeks.
“Some of these operators have insufficient capital and the goods may fall back on the shipper.”
This 1917 report captures the volatility of the agricultural supply chain that still dictates the rhythm of the Tri-Cities today. While the specific mechanism of the 'shipper’s order bill of lading' has evolved, the friction between local producers and speculative middlemen remains a constant tension in regional labor and ownership.
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