156 THE FARMER AS A BUSINESS MAN. 



elsewhere in this volume. A cooperative marketing society 

 simply does the work of a commission house, sometimes at a 

 saving, as compared with the employment of commission 

 merchants, and sometimes at a loss. The ordinary rates of 

 commission charged in the different branches of the com- 

 mission trade are fixed by competition and are not too high. 

 Large gains by commission merchants can onl}^ be legiti- 

 mately made by very able men, competent to organize and 

 sustain a large business. The principal gains in the business 

 are often made not so much from commissions as from side 

 interests connected with the handling of the crops, of which 

 the farmer never hoars. They may come from speculative or 

 other buying and selling, from rebates on freight, from trans- 

 portation companies, or draymen, or in other ways, depending 

 upon the branch of trade. Tliese methods are less open to 

 cooperative companies, whose main reason for existence lies 

 rather in their power to prevent combinations or speculative 

 movements to the injury of the farmer. While cooperative 

 marketing is increasing, and likely to increase, the commis- 

 sion trade is increasing also with the growth of the country. 

 It should be recognized and regulated. 



As it stands, the relation of principal and agent, which 

 should be cordial and confidential, is too often one of mutual 

 distrust and dislike. The farmer says tliat the commission 

 merchant cheats in his returns, and the merchant says that 

 the farmer cheats in his packing. Both are often correct. 

 In selecting a commission merchant a farmer should be at the 

 expense of visiting his man in his place of business. Nothing 

 else will really answer. Seek a firm whose members look 

 honest, and appear to act honestly. Give them your confi- 

 dence, send them honestly-packed produce, and stay by them. 

 Upon the occasions when a commission merchant has to 

 choose between the interests of two customers, he will, if he is 

 bright, favor the regular instead of tlie occasional shipper. 

 Sometimes they do not do this, in the endeavor to attract new 

 trade, while trusting to habit to retain the old. But such a 

 course is unwise, and most merchants know too much to 

 attempt it. A. man shipping to two commission merchants 



