16 BULLETIN 458, U. S. DEPARTMENT OF AGRICULTURE. 



broker's commission, freight to the ports, compressing, and other 

 compress charges, and all other local charges to which the cotton 

 is subject, plus the commission or profit to the original buyer. It 

 is understood, of course, that the buyer purchases the cotton at such 

 a price as will insure a profit on the transaction in the event of any 

 change in the market before he in turn can sell to the broker or 

 direct to the mill, as the circumstances warrant. 



The Imperial Valley Long-Staple Cotton Growers' Association 

 sold some of its cotton through these buyers, who also handled all 

 of the cotton produced by growers in the valley who did not belong 

 to the growers' association. 



DIRECT MARKETING BY THE GROWERS' ASSOCIATION. 



In marketing its Durango cotton independently, the growers' asso- 

 ciation had samples drawn from both sides of each bale of cotton. as 

 previously described, and coupons from the tags on the bales were 

 placed in the samples. The samples were then sent to the office of 

 the growers' association, where they were laid out on the tables to be 

 graded and stapled. Cotton of similar grade and even lengths of 

 staple was classed into lots of 50 bales each. A designating mark of 

 four letters was placed on the wrapper covering the samples and the 

 tag list was entered in the tj 7 pe book, with all information concerning 

 the cotton, including grade, staple, ownership, and the type to which 

 the lot was equal. 



The samples were then sent to the prospective purchasers known 

 by the association to be in the market for such cotton. On the 

 arrival of the samples at the cotton mills, their classer examined them 

 and if, in his judgment, the cotton represented by the samples sub- 

 mitted was suitable for their requirements they asked for a firm 

 offer. Upon receipt of the offer, if the price was considered reason- 

 able by the mill treasurer, he accepted it or made a counter offer of 

 a price which he considered as the market value of the cotton, or its 

 value to his mill. These transactions were all carried on by telegraph, 

 for, according to the custom of the trade, firm offers hold good only 

 for the day, unless otherwise stated. For instance, the owner, whether 

 he is the buyer, broker, or representative of the association, will 

 usually offer cotton under the following terms : " We offer firm, Nell 

 50 bales, Mike 50 bales, at 20 cents f. o. b.. and freight to mill." 

 Limitation may be placed on an offer in many ways. 



The marketing of staple cotton at full price is a difficult matter. 

 It rests first on the ability of the classer to make up lots of 50 bales 

 each of similar grade and equal length of staple. Then it is neces- 

 sary to offer the cotton so as to secure the full market price, yet at 

 the same time the final purchaser, the mill treasurer, must feel that 



