THE DISTRIBUTION OF NORTHWESTERN BOXED APPLES. 7 



State in the history of the country. The production in Oregon also 

 exceeded that of all previous years. Idaho ° had a lean year in 1916 

 and again in 1918, but in 1917 had a comparatively heavy produc- 

 tion, and in 1919 an unusually large yield. Montana 9 has developed 

 slowly but gradually, and in 1919 practically doubled the previous 

 year's shipments. 



MARKETING METHODS. 



Growers in the Pacific Northwest market the fruit through various 

 agencies, the most important being cooperative selling organizations, 

 local dealers, traveling cash buyers, and commission merchants. 



The cooperative method generally consists of collective selling by 

 hired representatives of one or more groups of producers, and prac- 

 tically every type of cooperative organization has been in operation. 

 Local associations are formed, consisting of a single group of grow- 

 ers, who employ a manager to transact their business and sell the 

 output. Federations of local groups also are formed, the managers 

 of the local units acting merely as intermediaries between the central 

 organization and the local unit. The central organizations practi- 

 cally control sales, collections, inspections, and advertising, thus 

 facilitating standardization and specialization. 



Local dealers purchase the fruit from growers, buying outright for 

 cash or on contract. In some sections local merchants have developed 

 a merchandising department and advance supplies and equipment to 

 growers whose fruit they buy or handle on consignment. 



A limited quantity of fruit is handled on a strictly consignment 

 basis by resident dealers. Such dealers often operate packing houses 

 where the fruit is graded, sized, and packed for a certain fixed charge 

 per box, which includes box shook, materials, and labor. Cash sales 

 to traveling or to resident buyers who represent firms in terminal 

 markets are common.. Some of these representatives also act as grow- 

 ers' agents and accept shipments on consignment. 



Direct sales or sales through brokers to firms in consuming centers 

 are usually made on an f. o. b. basis. Particularly was this true 

 during the fall of 1919, when many of these firms contracted with 

 northwestern shippers for future delivery. Various conditions make 

 it necessary or desirable to roll a large number of loaded cars unsold. 

 Usually these tramp cars are destined to territories that seem to 

 promise the best returns and generally are sold when near to a 

 market. Many of these sales are made through brokers. 



Railroad records show that in 1915 there were 461 consignors 

 of apples from the Pacific Northwest. This number has materially 

 increased with the development of the industry. 



9 See Exhibit No. 7, p. 20. 



