324 MARINE FISHERIES OF NORTH CAROLINA 



Primary Markets and Selling Arrangements for Fishermen 



a. Auction markets. At large fishing centers, especially the landing ports 

 of trawlers and similar fleets (such as Hull and Grimsby, England, Boston 

 and Seattle), the fish are sold at public auction for immediate cash settlement. 

 The selling agency is an independent organization or exchange which per- 

 forms services for both buyer and seller, the buyers being members or other- 

 wise privileged to attend the auction and to buy. The leaseholders on the 

 Boston Fish Pier are privileged to attend the auction and to buy. The esti- 

 mated quantity of each species by size and grades of a landed vessel is 

 chalked up on a blackboard, and the captain or his delegate conducts the 

 auction. The highest bids for all or part of each kind are accepted and settle- 

 ment is made for cash on the day of sale. The system falls short in a few 

 particulars of a strictly even-handed, impartial auction in that two or more 

 buyers may limit competition by combining to bid, and that sales once made 

 can be revoked for poor quality after the fish are unloaded. Since there are 

 no recognized standards and enforceable quality grades and no official inspec- 

 tors, such revocations and "sell-overs" may be for other reasons than poor 

 quality — for instance, falling market prices. Nevertheless, the system works 

 well and gives relatively free play to competition and the operation of the 

 forces of supply and demand. 



b. Commission sales. Selling on commission is generally practiced at large 

 consuming rather than producing centers (London, New York, Chicago, 

 etc.), and is more often secondary than primary, i.e., the produce has already 

 been sold once at auction or to dealers at shore points, and re-sold on com- 

 mission in the commission markets. However, at London, New York, Chicago, 

 and other cities situated on the water, some primary production by fishermen 

 is also sold on commission. 



These commission markets are open to all producers and shippers. As 

 example, a dealer or fisherman at Morehead City, North Carolina, has ten 

 boxes of weakfish. He ices them, attaches a shipping label, consigning to John 

 Doe & Co., Fulton Market, New York City. Doe pays the express charges, 

 cartage, etc., if any, and sells directly to buyers from local retail markets, 

 butcher shops, restaurants, and hotel and restaurant supply houses in person 

 or by telephone communication; sales are made mostly in original packages, 

 but some broken-package selling is done. John Doe & Co. finances the receiv- 

 ables and takes any risk involved therein. Practically all shipments are sold 

 at some price on the day received, and buyers take their purchased goods 

 away. Before the day is closed, the clerks make up the "account of sales" of 

 each shipment received, showing gross receipts, the commission charged 

 (i2^ per cent in New York) and any expenses, and remit the net proceeds 

 to the shipper by check. All persons are free to buy and sell in commission 

 markets through the member dealers, without membership or other restric- 



