Cooperative Work with Columbia University 479 



eut independent agencies is tlie local buyer, who is sometimes a 

 shipper but is becoming merely a loader for a general wholesale 

 dealer. The wholesale dealer is usually located at some large 

 central point and makes a business of studying the various market 

 demands, also keeping in close touch with conditions of the various 

 markets as to supply and demand. He, in turn, usually sells 

 direct to a wholesale distributor in the consigning market, some- 

 times selling direct, but sometimes through still another agency. 

 This additional agency is the produce broker, who acts simply as a 

 go-between, bargaining with the buyer — generally located in his 

 own or in a nearby town — and who usually acts for the seller 

 but occasionally for the buyer. Sometimes the wholesale dealer 

 — or even the local dealer — will consign to a produce commission 

 merchant, who sells it after arrival to the distributing trade, re- 

 ceiving a commission based on the selling price. This commis- 

 sion differs from the fee of the broker, who receives a certain price 

 for each carload, ton, or package, as the case may be. 



It can be seen from the consideration of these complex condi- 

 tions that the grower is rarely justified in imdertaking direct 

 selling. It can be further understood that these agencies as just 

 described cannot be expected to interest themselves in furthering 

 the producer's interest, and that only the open competition of 

 these buyers and their consequent eagerness to buy the produce 

 will work to the benefit of the producer. 



producers' organizations 

 If, then, the producer is confronted with lack of interest, pos- 

 sible understandings, or combinations on the part of tlie local or 

 wholesale buyers, what is the situation ? As has been stated, few 

 producers are justified in becoming chandlers, and again it must 

 be realized that a large volume of business is required in order 

 to meet the expense necessarily incurred if the distributing agency 

 is to be made efficient. There seems to be only one alternative — 

 the organization of cooperative business corporations by the pro- 

 ducers themselves, thereby pooling their interests in one institu- 

 tion. If this is to be done, several question must be carefully 

 considered : 



