OUTLETS AND METHODS OF SALE FOB SHIPPEES. 21 



concessions from the seller, yet he will not expect an allowance to 

 cover the total drop, but will be content, in most cases, to compro- 

 mise and accept a reasonable concession. As a consequence, the 

 selling association will secure larger returns than if it had shipped a 

 car without a previous order, commonly termed a "tramp car," in 

 which case it would have been compelled to accept the prevailing 

 market price. 



SALES ON JOINT ACCOUNT. 



Sales on joint account are agreements made between the grower or 

 shipper and the market representatives on a certain deal, the latter 

 to contribute his knowledge of marketing conditions and the. former 

 to make use of his knowledge of conditions at the producing end. 

 Deals of this kind are possible only where both parties know and 

 understand each other thoroughly, for each is absolutely dependent 

 upon the integrity of the other. The division of expenses and profits 

 varies greatly with each contract, though it may be said that the 

 usual custom is for the net profits, after deduction of expenses, to be 

 divided equally between the shipper and the market representative. 



SALES IN TRANSIT. 



Customarily sales in transit do not concern the individual grower' 

 directly, inasmuch as this type of sale is usually made only by 

 shipping associations. Again, sales in transit are necessary only in 

 the case of large crops of produce which must be kept moving in order 

 to prevent a congestion at the shipping end. In many cases it is im- 

 possible for a large association to secure f. o. b. sales for all the prod- 

 uce which it has ready for shipment. Consequently, the manager 

 ships out cars known as tramp cars, which are billed to some diver- 

 sion point in the general direction of the markets where prices seem 

 to be strongest. While the cars are in transit orders are received 

 and the cars diverted accordingly. In case no buyer is found by the 

 time the diversion point is reached, the car is either diverted to the 

 market which seems to offer the best possibilities or is sent to some 

 auction point. 



In these sales either absolute selling power is granted to the repre- 

 sentative of the shipping association or sales are made subject to con- 

 firmation by the shipper. In the former case, where absolute selling 

 power is granted to the representative, no control is possible by the 

 shipper, inasmuch us the representative becomes the virtual owner 

 of i he commodity. Thus ;i shipper who is unable to keep in oloso 

 touch witli tin' markel may rely on the ability of his representative 

 and telegraph him instructions merely to sell to best advantage. 

 Under instruction of this kind the representative is justified in mak- 

 ing almost ;m. disposition of the shipment which tie believes to bo 

 b< i 



