52 DEPARTMENT OF AGRICULTURE. [Pub. Doc. 



Among the economic advantages of grade classification are: 

 elimination of fraud and deception; prevention of waste; pre- 

 vention of market demoralization; encouragement of better 

 production; establishment of trade confidence; reduction of 

 handling costs; reduction of the buying risk; classification for 

 market demand; creation of a steady demand; reduction of ex- 

 pensive sorting at market centers; widening of market outlet; 

 elimination of expensive inspection; and facilitation of better 

 financing and warehousing systems. All these are closely 

 associated with the discussion of point of shipment inspection, 

 as most of these economies realize their maximum benefit 

 through the establishment of shipping point inspection, which 

 means shipping point grading. 



Certification and Inspection. 



Inspection by State or national officials having no financial 

 interest in the deal, but rather an interest in the strict obser- 

 vation of grade requirements, not only assures a satisfied re- 

 ceiver, but tends to eliminate the wastage in transportation 

 of that portion of useless goods upon which a transportation 

 charge would otherwise be made. This cost, of course, goes 

 into the price charged for the article, which increases the price 

 to the consumer, results in a reduction in demand and is an 

 obvious wastage. 



Of course, subsequent spoilage may often occur in the han- 

 dling of fresh fruits and vegetables, such as that caused by over- 

 heating cars in the case of potatoes, or loss from improper icing 

 in the case of more perishable commodities originating in the 

 South and West. However, the initial culling out which occurs 

 at point of shipment is of great value from the point of view 

 of transportation saving alone. 



Market depreciation and poor prices are too often caused by 

 an oversupply of poor stuff, for which there is no market de- 

 mand. This stuff may move slowly under such circumstances 

 and of course for an unsatisfactory price, M^hen a similar supply 

 of properly graded produce of good quality might move readily. 

 This important feature is often overlooked at our points of 

 production. 



