OUTLETS AND METHODS OF SALE EOE SHIPPERS. 23 



tions for him and give him expert advice as to the best time to sell. 

 Storage charges in the case of fruits are based upon monthly and 

 seasonal rates. Thus with barreled apples the usual charge is from 

 10 to 25 cents for the first month, with a monthly charge thereafter 

 of from 10 to 15 cents, or a seasonal charge of 40 to 50 cents, which 

 allows the shipper to store his commodities from one to six months. 



In many instances the provision of storage facilities on the farm 

 may be a profitable investment. A storage house or cellar of the sim- 

 plest type which will hold produce in good condition for even a few 

 days may prove to be a determining factor between profit and loss. 

 For instance, the psychological influence upon a buyer of the realiza- 

 tion that the grower is not dependent upon him often will result in 

 the offer of higher prices. 



Most growers are unable to store because of the fact that they need 

 immediate cash returns in order to pay existing obligations. Where 

 the standing or credit of a grower or association is unquestioned, it 

 may be possible to secure substantial advances, using warehouse cer- 

 tificates as collateral, but an unknown shipper will find great diffi- 

 culty in securing such loans. It is doubtful whether advances would 

 be made by banks on warehouse certificates based upon perishable 

 products. Banks sometimes take these certificates as collateral from 

 cooperative organizations, but this is done usually as a matter of form, 

 the bank relying on the warehouse certificates for the perishable prod- 

 ucts much less than on the assets and general credit of the cooperative 

 organization. 



In many cases it also will be necessary to insure the goods while in 



storage to cover all possible risks, and this is an additional charge 



which the grower must pay, although comparatively the cost is not 



great. 



CONCLUSION. 



The development of the so-called "middleman system" has not 

 been a parasitic growth. Distributors have arisen through economic 

 necessity caused by the ever-widening distance between the producer 

 and the consumer and the ever-increasing demands for service from 

 the latter. There is no doubt that conditions can be improved 

 greatly, but it is no less certain that the distributing trade performs 

 a very valuable service at this time, though sometimes at a tremen- 

 dous cost and with great waste. 



If the suggestions given in this bulletin appear complex, they will 

 at least have accomplished one result — to make both tho producer 

 and consumer realize that there is a good reason for the existence of 

 di tributors. If the grower is not willing to lake all these precau- 

 tions, assume these risks, and spend the time necessary to Locate tho 

 final consumer of his goods, tie must depend upon the services of 



