44 BULLETIN 979, U. S. DEPARTMEXT OF AGRICULTURE. 



buyer or consumer less only one commission. If only one commis- 

 sion is charged, the country shipper may receive more for his hay 

 than if it is sold upon arrival at the terminal market. 



There are so many other factors entering into the transaction, 

 however, that it is doubtful whether it can be considered fair to the 

 shipper unless his consent has been obtained to handle the sale in this 

 manner. In the first place, the country shipper usually consigns to 

 a terminal market for definite reasons. Lower prices may seem im- 

 minent and in order to market his hay before they occur he may rush 

 his hay on consignment to a neighboring market. In this case it 

 would certainly be unfair to the shipper for the commission merchant 

 to reconsign his hay upon a previous sale to some distant point at 

 which it may not arrive until the market has declined. If the ship- 

 ment should be refused and heavy charges should be incurred, it 

 would be clearly unfair to the shipper to have to stand a discount to 

 cover them, yet such would probably be the case under these condi- 

 tions. Again, the country shipper may have consigned his hay be- 

 cause of an expected advance in the market and he may desire to have 

 his hay sold to the highest bidder upon arrival. In that case it would 

 be unfair to him to have his shipment of hay applied upon a sale 

 made at an earlier date and probably at a lower price. These prac- 

 tices are unfair to shippers to terminal markets, and should be 

 eliminated by the regulations prescribed for those markets. If a 

 market does not have such regulations, shippers should ascertain 

 whether their consignments are handled fairly or not. 



ADJUSTMENTS. 



It is generally very difficult to adjust satisfactorily disputes and 

 controversies that arise relative to terms of sale. Trade organiza- 

 tions have arbitration committees to which controversies which prin- 

 cipals are unable to settle between themselves may be referred, and 

 as a last recourse the civil courts may be called upon to decide the 

 issue. But few cases get into the courts, however, and only a small 

 number are referred to arbitration committees. 



In most cases the parties in a dispute relative to the terms of sale, 

 weights and grades, etc.. present their claims and counterclaims to 

 each other by letter and the matter is finally settled by one or the 

 other, or probably both, making some concessions. When consider- 

 able money is involved the one making the claim frequently calls 

 upon the other party, or sends a representative to call, and makes a 

 personal effort to adjust the matter. The state of the market fre- 

 quently has a great deal to do with the adjustment of a claim. Mis- 

 understandings or misinterpretations of the terms of sale and non- 

 fulfillment of them are the principal causes of disputes and all per- 



