MARKET METHODS AND PROBLEMS 525 



this well in mind, he is ready to approach the wholesale trade. His 

 next step is to make a careful canvass of the wholesale district, visiting 

 or calling up by telephone all those who may be interested in what 

 he has to offer. When a possible customer is found, the next step, 

 in case the car or cars have arrived, is to allow the prospective buyer 

 to inspect the contents. After inspection, satisfactory terms are 

 arranged and then before the sale can be consummated it is necessary 

 that the shipper confirm the broker's action. Assuming that the 

 broker is selling a car of apples, Ganos and Grimes for instance, he 

 may telegraph the shipper as follows: 



Jones offers on car MC sixteen eight fifty-four, two fifty Ganos, two 

 seventy-five Grimes, delivered. 



In case this offer is satisfactory, the shipper's reply may read: 

 Confirm car MC sixteen eight fifty-four Jones two fifty Ganos, two 

 seventy-five Grimes, delivered. 



Or in case the price is unsatisfactory, the shipper might refuse as 

 follows : 



Jones too low; car MC sixteen eight fifty-four; must have three 

 Grimes. 



Collection is often made through a bank located at destination. 

 The shipper sends the bill of lading with draft attached, to a bank, at 

 the time the car is shipped, and after inspection the purchaser pays 

 the draft and secures the bill of lading. 



Sometimes the broker does not make a direct sale, but handles the 

 goods through auction. His activities are then confined to seeing that 

 the goods arrive at the auction and attending the sale to withdraw the 

 shipment if prices are unsatisfactory. 



The broker handles business in large volume at perhaps less cost 

 to himself than any other type of middleman. He has but little 

 capital in his business and his heaviest items of expense are usually 

 rent, clerical help, and telegraph charges. As a rule, most of the 

 broker's business is composed of the accounts of associations and large 

 private shippers. The broker acts as the exclusive agent on his 

 market for each concern that he represents, and since he handles car 

 lots only and moves large quantities in relatively short periods of time, 

 he is enabled to render important services at a very low cost to the 

 shipper. 



A very important factor in market distribution is the car-lot 

 wholesaler. These men purchase fruits and vegetables from 



