206 Cooperation in Agriculture 



The fruit trade lends itself peculiarly to dishonest prac- 

 tices because the operations of these agencies, some of 

 which are of a semi-public nature, are usually unregulated 

 by law and because the return which the producer receives 

 may depend entirely on the honesty and business integ- 

 rity of the agent who handles his business. 



ABUSES IN THE FRUIT TRADE 



There are a number of conditions in the fruit trade as 

 well as in the sale of other farm crops which affect the in- 

 terests of the producer adversely and which he is powerless 

 to overcome when acting alone. A broker sometimes acts 

 as a jobber also and sells the product to himself to be sold 

 later at a higher price, thereby dishonestly returning to 

 the producer proceeds below the value of the fruit. As an 

 example, a commission firm with high standing in the 

 trade, recently contracted to act as a brokerage agent 

 in the distribution of cantaloupes for associations of 

 growers. The firm advanced money to grow the crop 

 and furnished seed and supplies to the growers. Many 

 of the cantaloupes were sold to the jobbing trade, others 

 were consigned to commission houses, while others were 

 reported sold at some distant point at a low price, the 

 agent explaining to the producer that the fruit arrived 

 in poor condition or that the market was bad in other 

 respects. It was discovered by the growers that many 

 carloads of the cantaloupes actually arrived in good con- 

 dition, that they were bought by the firm who was acting 

 as their agent at a low price, and that later they were 

 diverted to another market where the fruit was sold at a 

 higher figure. The revelations following these dishonest 



