14 BULLETIN 919, U. S. DEPARTMENT OF AGRICULTURE. 



shippers with representatives in the various consuming sections can 

 usually, through the efforts of their salesmen or representatives, 

 arrange a settlement that prevents a heavy loss ; but smaller shippers 

 conducting their business by letter or telegraph frequently suffer 

 severe losses from this practice. 



Wholesalers and Disteiblttoes. 



After the consumer, the next most direct agencj- to which the 

 country shipper may sell his hay is the wholesaler or distributor in 

 consuming sections. Sales may be made to them direct in the same 

 manner that sales are made to consumers. In some sections, notably 

 the South, wholesalers and distributors generally prefer to buy 

 through a broker or other representative of the shipper for the 

 reason that the broker or representative is located in their market or 

 at least in near-by territory and as an agent of the shipper is con- 

 veniently at hand if any difficulty arises relative to the sale or 

 shipment of the hay. 



SALES THROUGH BROKERS. 



Brokers in practice are shippers' agents. Their business is to sell 

 to the dealers in their market or territory the commodity handled by 

 the dealer or shipper whom they represent ; the prices are fixed by the 

 shipper. Brokers are located in all the principal markets and dis- 

 tributing points in the South and at many markets in other sections 

 of the country. They handle the hay on a brokerage or commission 

 basis and their rates range from 25 to 75 cents per ton. The usual 

 brokerage fee at present is 50 cents per ton. Brokers should not be 

 confused with commission merchants who operate in northern and 

 western markets, for the services rendered by these two classes of 

 dealers vary considerably. 



Sales are usually made in the following manner : A shipper hav- 

 ing hay for sale telegraphs a broker whom he has already engaged to 

 represent him in a certain market, giving the broker the prices, 

 grades, and number of cars he has for sale. The broker is frequently 

 instructed to sell subject to the shipper's confirmation, in order to 

 make sure that the hay has not been sold by brokers in other markets 

 who may have been engaged to sell the same hay. Unless there is an 

 unusual demand in a market the broker can probably sell only a part 

 of the cars offered by the shipper. For this reason several brokers 

 are instructed to sell the hay. 



Upon receipt of the wire from the shipper, the broker canvasses by 

 telephone or in person the various buyers in his market, offering the 

 hay at the price quoted by the shipper, plus his brokerage fee, pro- 

 vided it has not already been included in the quotation. If he is able 

 to sell one or more cars of hay he immediately wires the shipper to 



