REPORT. HON. GUSTAVUS KERNER, OFFICE OF STATE GRAIN INSPECTOR, CHICAGO, November 1, 1871. Chairman Board of Railroad and Warehouse Commissioners. DEAR SIR-In making this report of the working of the Grain Inspection department, I am much embarrassed by the contusion incident to the late fire that destroyed so much of Chicago, and I may possibly have omitted much that should have been embodied in it. It is now nearly three months since the inspection of grain, at this point, was taken in charge by the officers appointed under the warehouse law. During that time the grades of grain, as delivered from warehouses, have been more uniform than for many years.. At no time has there been so little complaint of errors in inspection, by country dealers, receivers or shippers of grain, as during the past three monthe. This satisfactory working of the inspection is largely attributable to the personal interest manifested by all the employees, in its success. There has been more work done during the past three months, by the inspection force, than ever before in the same length of time. This covers the time lost, or nearly lost in the grain trade, by the unsettled state of business, resulting from the fire of the 8th and 9th ultimo. Under the warehouse law, inspection of all grain delivered from elevators is obligatory; and as there are large quantities delivered to teams and cars, in lots ranging in amount from 50 bushels to 700 bushels, and as each lot requires the personal supervision of an inspector, the labor of such inspection is very largely increased. Previous to August 7th grain delivered to teams, and a portion of that delivered to cars and vessels, was not inspected. The accompanying paper "D" gives, in tabular form, the amounts of grain delivered by elevators to vessels, cars, and teams; also the number of cars, canal boats, and vessels inspected into store, with estimated amount of bushels from August 7th to November 1st. Being unable to procure the necessary statistics, I cannot, at this time, make a statement of grain inspected as compared with former years. Receipts of grain are increasing as confidence is restored, and we expect they will soon be greater than the average of former seasons. After the close of lake navigation there will be, undoubtedly, a greater amount of grain shipped from this market, by rail, than ever before, as the destruction of five of our elevators has greatly diminished our stor age capacity-rendering an active movement of grain, from the warehouses now in working order, necessary, to make room for the daily receipts. The books and records of this office were nearly all saved, through the prudence and care of Mr. S. Clary, warehouse registrar, and C. W. Deane, clerk in the inspection department, who were at the office at 2 A. M., the 9th ultimo, and placed in the vaults all that was saved. We had the usual amount of stationery and blank books on hand at the time of the fire, which, with the office furniture and fixtures, and some of the inspection tools, were destroyed. I secured an office the morning of the 10th ultimo, at Nos. 34 and 36 Canal street, corner of Washington, which is centrally located, and very convenient to the Board of Trade, and have fitted it up very plainly. I bought pine lumber, and Mr. Akin, cashier of my office, and Mr. Allen, clerk in the registrar's office, made desks and shelving, so that we are very comfortable, and have an office in keeping with the times. There are many of the September bills for inspection outstanding, which probably will be paid as soon as business men get settled. Some of the parties are bankrupt, and collection from them is impossible. I addressed a communication to the Secretary of your Board, October 19th, asking for specific instructions as to whether I should present to the elevators unpaid inspection bills made previous to notifying them of their liabil ity under the law, or only those made subsequent to such notification. I have learned, by the experience of the past three months, that some slight changes in the specifications for grading grain, and some changes of grades as established by law, are highly essential. After careful consideration I have arrived at the conclusion that the grades and specifications, as set forth in accompanying paper "A," will more nearly meet the wants of the grain trade than the rules under which we are now working, a copy of which (paper "F") is inclosed. I respectfully ask you to investigate the proposed changes advocated by me, and if, upon examination, you see the necessity of them, that you recommend to the Legislature an amendment of the law in this respect. The following are some of the principal reasons why I recommend these changes: The present rules for grading Nos. 1 and 2 white winter wheat, and Nos. 1 and 2 amber winter wheat, call for pure wheat of the colors specified in the grades. A strict rendering of these rules would place a car load of white winter wheat, having a very small quantity of red winter wheat mixed with it, into the grade of No. 1 red, thereby doing a manifest injustice to the farmer or country shipper. Under the specification "Merchantable white winter wheat," in the proposed rules, it would be graded No. 1 white winter wheat-what it actually should be. The specification that No. 2 spring wheat shall not weigh less than fifty-six pounds to the measured bushel, is creating a great deal of dissatisfaction among country shippers, and is likely to mislead them in the future, as but little wheat, weighing as low as fifty-seven pounds to the measured bushel, is sound and clean enough for No. 2. The specification, in the present rules, "Black-seed and flinty-fife wheat in no case shall be inspected No. 2," is cumbersome and unnecessary, as but very little, if any, of these varieties is now received in this market. The changes called for more than any others, are those in the grading of corn. The trade has ignored, for some time, the grades of Nos. 1 and 2 corn, when applied to nearly white or nearly yellow corn, as all of the leading elevators have furnished to receivers special bins for corn of these kinds-thereby adding to the grades, as established by the Board of Trade and adopted by the Legislature, the supplementary grades of "One corn white," "Two corn white," "One corn yellow," "Two corn yellow." The present specifications governing the grading of corn, do not admit of the admixture of even a very small quantity of unsound grain in the grade of No. 1, nor of a very small quantity of unsound, or other colored corn, in the grades of white or yellow; whereas, under the rules as proposed, corn will be graded upon the color as well as upon condition and quality, and will pass as white or yellow a large portion of the corn that has for a long time been handled, in special bins, as nearly white or nearly yellow Nos. 1 and 2-giving to yellow corn that has a slight mixture of white or red (of which there is a large quantity) the grade of "High mixed," and giving to all that corn of mixed colors, that has been heretofore graded No. 2, the grade of "Low mixed." The grade of No. 1 oats, as established by law, is almost unattainable. The proposed grade of white oats takes its place, and the proposed grade of mixed oats relieves the bulk of the oats marketed of the odium of being designated No. 2, a name that suggests inferiority. Therule, "All grain that is warm or in a heating condition shall not be graded," does not fully meet the requirements of trade. Much grain that has been heated to such an extent as to render it nearly valueless, but at the time of inspection is dry and cool, and other grain that is, from a large inixture of dirt, or other grain, rendered unfit for warehousing, must, under the present rules, be graded as "Rejected," thereby doing an injury to the bulk of rejected grain. Under the proposed rules' such grain can be noted "Unfit for store," thereby doing injustice to no person, as the owner can sell it upon its merits. Herewith you will find a statement (paper "G.") of receipts and disbursements from August 7th to November 1st; also, memorandum of unpaid bills (paper "H,") for August and September. A large proportion of these we hope to collect. Paper "E" is a statement of inspection fees from August 7th to November 1st. But for the great calamity which has lately visited us, destroying so many sources of statistical information, I should have given more fully statistics of the grain inspection for this and former years. Hoping that the above report, with accompanying tables, will give you all the information you desire, and that the suggestions therein contained will meet your approval, I am yours, respectfully, W. F. TOMPKINS, Chief Inspector. CHICAGO, November 21, 1871. HON. GUSTAVUS KERNER, Chairman of Board of Railroad and Warehouse Commissioners: DEAR SIR: Agreeably to the instructions of your Board, I herewith submit the following, as supplemental to my report to November 1st. I have obtained a few additional statistics, which will, I hope, prove of service to you. There are, so far as I can learn, no statistics of the inspection office for any period less than one year; and in making up the comparative tables for the three months, I have been obliged to |