j6 2 THE BUTTER INDUSTRY IN UNITED STATES [386 



ness ". The jobber is in competition with others of his 

 class and with " chain " stores that receive butter directly 

 from the producer. He therefore makes the most attrac- 

 tive offers possible. Whether or not the goods are easily 

 disposed of at the prices asked is a fact that is quickly com- 

 municated to the wholesale dealer, and thus the demand 

 situation becomes a matter of common knowledge to the 

 comparatively small group of dealers. 



The group of wholesale dealers also renders important 

 services in the butter trade. They take the initiative in 

 causing the butter to move from the point of production to 

 the city. Trips are made to the factory and contracts are 

 entered into. Frequently instead of visiting each factory, 

 representatives are sent to places where conventions of state 

 dairy associations are held, with a view to meeting a large 

 number of butter men. A great deal of advertising is done 

 by the wholesaler in dairy journals and much of the busi- 

 ness is acquired in this way. The wholesale dealer must 

 be prepared to invest considerable capital in his business. 

 It is necessary to have efficient refrigeration service of his 

 own in order to hold lots for short periods until they are 

 sold. He must be able to secure credit at a bank. In a 

 great many cases the shipper stipulates in making a con- 

 tract with the wholesale dealer that a portion of the goods 

 shall be paid for f . o. b. factory or upon day of arrival at 

 point of destination. This is done by drawing on the whole- 

 saler for perhaps sixty or seventy- five per cent of the value 

 of the shipment. The bill of lading is attached to the draft 

 which is forwarded to the wholesale dealer's bank. Of 

 course in some cases the wholesale dealer sells on time. But 

 in such cases the producer is often paid better prices in the 

 form of premiums; or it may be due to the fact that the 

 wholesale dealer enjoys a very high reputation for skillful 

 and fair dealing. The wholesale dealer also assumes con- 



