324 The Commercial Apple Industry 



do w?ll to inform himself as to the integrity of the firm 

 with which he proposes to deal, and by establishing rela- 

 tions with reliable firms be able to insure best results. 



The usual method of procedure in dealing with the 

 broker is as follows: The seller having a carload of a 

 certain grade of a variety will advise his broker of the 

 fact and of the price which he desires. The broker will 

 undertake to place the car and if successful will communi- 

 cate with the seller, instructing him to forward the fruit. 

 This method of handling really amounts to an f. o. b. sale, 

 permission being given by the grower for inspection at 

 destination. In case of a misunderstanding over grades, 

 the broker is in a position to effect equitable settlement. 

 The grower bills his fruit to the broker or to the buyer, 

 attaching a sight draft to the bill of lading which is sent 

 to a bank designated by the buyer. After inspection on 

 arrival, the buyer lifts the draft through his banker, 

 thereby effecting a direct settlement with the seller. 



Carlot operator. 



The carlot operator plays an important part in the 

 distribution of the commercial apple crop. He is usually 

 represented in important regions of production by cash 

 buyers, who contract fruit on his account. The carlot 

 operator may sell again in carload lots, may place the 

 fruit in storage on his own account or may distribute it to 

 the jobber or retailer. The amount of business handled by 

 carlot operators may vary from a very few cars to several 

 hundred or even thousands, depending somewhat on the 

 field for distribution. The carlot operator for a city with 

 a more or less limited field may be able to distribute suc- 

 cessfully only a few cars. A large operator with head- 



