14 BULLETIN 267, U. S. DEPARTMENT OF AGRICULTURE. 



THE BROKER'S PLACE IN DISTRIBUTION. 



Brokers act as market salesmen for those producers who are unable 

 to make direct sales and who have no other market representative. 

 They represent shippers at large distribution centers, and by the 

 payment of the very small brokerage fee the shipper can be certain 

 that his goods will be accepted on arrival. The broker, by making 

 prompt disposition of a consignment immediately upon arrival, often 

 saves the shipper many times the brokerage fee. Brokers stimulate 

 and expand the market to a certain extent by their expert canvassing 

 of the trade and any influence that stimulates active buying and 

 selling must be regarded favorably. In general, their chief useful- 

 ness lies in the fact that their activities on the market tend to main- 

 tain a steady flow of business. 



AUCTION SALES. 



Auction companies are organizations (usually incorporated as 

 stock companies) which sell fruits at public sale to the highest 

 bidder. The auction offers an outlet for a great deal of produce 

 that can not find immediate, direct sale. Those who sell through an 

 auction may be brokers (representing shippers and associations), 

 speculators, operators, car-lot wholesalers, and in rare cases indi- 

 vidual shippers. Sales are made largely to jobbers. Before sales 

 are started a display is made in the showrooms. Produce to be sold 

 is divided into " lines " which consist of from 1 to 100 or more 

 packages. Each line is marked with a designating number and 

 listed in definite order on the various sheets which make up the 

 " catalogue." Before bidding starts buyers who are interested in the 

 day's offerings make careful inspection of the various lines and make 

 notes on the catalogue as to comparative values. By the time of the 

 opening of a sale each buyer has a pretty definite idea of the value 

 of the various lines in which he is interested. 



Sales start at a definite hour and are conducted much as other auc- 

 tion sales are handled. Bids are started at a fairly low figure and the 

 final price received is dependent to a large extent on the size of the 

 day's offerings and the activity of the bidding. After other offer- 

 ings have been disposed of miscellaneous broken packages are sold. 

 As sales are made prices are listed opposite the number of the line 

 on the catalogue. A complete catalogue with the prices received for 

 the goods listed opposite the lines is known as a " realizer." Sales 

 are supposed to be strictly for cash, and since, as a rule, single lines 

 are not of any great size the amounts due in each case are not very 

 lars - e. 



