JOBBERS AND COMMISSION MEN 781 



to undertake. While, therefore, we may doubtless look for a 

 noticeable extension in the use of direct shipments, such exten- 

 sion is not likely to be carried beyond a minor fraction of the 

 business as a whole. 



An important reason for such limitations lies in the fact that 

 the direct method of shipment has not as yet dealt successfully 

 with the problem of handling surplus stock. On the other hand, 

 the very agencies using the direct method of shipment have had 

 to resort to the use of the indirect jobbing or commission system 

 in dealing with a surplus. 



While shipments direct from producers to consumers are 

 likely to continue to cover a minor fraction of the total trade, 

 the usefulness of such a system is not limited to the portion 

 thus handled. A most important influence will be exerted in 

 a sort of a regulative way on the methods of jobbers and com- 

 mission men. In other words, the danger of a control of the 

 supply by middlemen will be greatly minimized through the 

 potential competition of a direct method of shipment. 



While the limitations of the system of direct shipments have 

 thus been discussed in order to indicate more clearly the relation 

 of jobbers and commission men to the handling of produce, it is 

 interesting to notice how the organization of certain producers 

 themselves for marketing purposes has enabled them to do a 

 part of their own jobbing. The most notable example of this 

 kind is that of the citrus fruit growers. Even these, however, 

 with their highly perfected form of organization find it necessary 

 to make use of the existing middleman machinery at the various 

 primary markets. 



Finally, assuming the limitations of the direct method of ship- 

 ments including that of the extension of producers' and con- 

 sumers' organizations, will the commission and jobbing agencies 

 render efficient service without any other checks than those of 

 active and potential competition ? That something more is neces- 

 sary is implied to the extent that public regulation has been ap- 

 plied to the business of these middlemen. Such regulation has 

 been applied in two ways. In the case of the commission busi- 

 ness, state regulation has been provided in some instances, as 



