MARKET METHODS AND PROBLEMS 515 



This record is open to the inspection of the seller. The auction 

 superintends the delivery of the commodity sold to the buyer. 

 Within twenty-four hours of the sale the auction sends an "account 

 sales" to the seller together with a check for the amount of the 

 sale less the commission charged by the auction house. Ninety 

 per cent of the auction sales in the large auction markets are on 

 credit. The auction house guarantees the seller against loss' arising 

 from the insolvency of the buyers. The auction house after the 

 sale furnishes the seller with an exact copy of the catalogue used 

 on the sale with the prices realized opposite each line sold. (See 

 catalogue, p. 516.) 



In most of the markets where auctions are established the auction 

 house does not accept direct consignments. Auction offerings come 

 through the salaried representatives of co-operative associations, the 

 salaried agents of shipping concerns which assemble growers' ship- 

 ments into carload lots or through private agents of growers, which 

 latter are termed " receivers" and who work on a commission basis. 

 These receivers usually handle only commodities sold through the 

 auction. Other offerings come through "commission men" who sell 

 at auction commodities customarily thus sold, while selling their other 

 commodities at private sale. 



There are present at the auction sales jobbers, fine fruiterers, 

 wholesale grocers, representatives of chain stores, brokers for hotels, 

 restaurants, and retail stores, push-cart men, and peddlers. There 

 are buyers for all grades of fruit from the very finest to the most 

 inferior. There are buyers for fruit in prime condition and buyers 

 for ripe fruit that must go into immediate consumption. There are 

 large buyers and small buyers. (See chart, p. 517.) 



The larger the quantity of a commodity the greater the necessity 

 for complete publicity on distribution. Auction gives that publicity. 

 Auctions are public sales in every sense of the word. The auction 

 houses can have no secrets. Any questions that may be asked of 

 them by a shipper can be answered and will be answered. 



Not less important 'than complete publicity is competitive bidding; 

 in fact it might be said that the keystone of the auction system is the 

 selling of the commodity to the buyer who will bid the most after 

 open competitive bidding. The experienced auctioneer knows the 

 buyers, knows what buyers are dealing in the same lines of fruit, and 

 the inevitable result is that competitive bidding brings to the grower 

 results that cannot otherwise be obtained. 



