TRANSPORTATION AND STORAGE 53 



devise adequate methods and equipment for handling this class of 

 traffic ? Why ? Do you know of any place where it has been done 

 satisfactorily ? 



26. What is demurrage and why is it charged? What is "free 

 time"? "reciprocal demurrage"? Look up "average" agreements. 



27. Are food products injured by cold storage for thirty days? 

 three months ? nine months ? Can the business judgment of dealers 

 be relied upon to keep the storage period down to safe limits ? 



28. Should the consumer be told when he is buying storage goods 

 or left to judge goods entirely by appearance and flavor ? 



29. Would prices presumably be affected by placarding cold- 

 storage goods as such? Why? Would the supply situation be 

 affected thereby? the demand situation? 



30. How long are eggs actually held in storage on the average ? 

 poultry ? beef ? What natural or economic forces tend to limit the 

 period ? 



31. Can cold storage be used as a means of manipulating market 

 stocks of food products as a means of securing abnormally high prices ? 

 Are there any automatic checks upon such speculative operations? 

 Relate your answers to the principles of value brought out in the 

 preceding chapter. 



32. Does the average American farmer prefer to sell his products 

 to the professional traders at harvest time or to hold them to some 

 future time in the hope of getting a higher price? Why? What 

 commodities ? 



^. In case he stores his crop, is any advance in price a net gain ? 

 What deductions must be made from such gross profits ? 



34. Is the cost of storage on the farm greater or less than the 

 dealers' cost of storage ? Is the loss or deterioration greater or less ? 



35. Does it cost the farmer more to deliver his products to the 

 dealer or shipper at harvest time than later, or does it cost less ? 



36. Is it certain that there will be an advance ? Would there be 

 if producers hold their goods off the market now and all dump their 

 product later? in case they "hedge" at the time of putting in 

 storage ? 



37. Even if there should be an advance in price, is it certain that 

 the farmer will be in a position to take advantage of it ? What might 

 prevent his doing so ? 



38. Does the fact that farmers are in a position to store their 

 crop or to sell it at once, as they see fit, improve their strategic situa- 

 tion in bargaining with prospective buyers ? Explain. 



39. How is it possible for the farmer who needs money at once to 

 pay debts to get this money and still retain control of his product, so 

 that he may benefit from a later advance in the price ? 



