WHOLESALE DISTEIBUTION OF FRUITS AND VEGETABLES. 17 



market for the next day's offerings. These sales are to be com- 

 mended, as considerable quantities of low-grade stuff are thus placed 

 within the reach of the consumer at reasonable rates, and the practice 

 serves to rid the market of a surplus of low-grade produce. 



COSTS AND PROFITS. 



Profits to the car-lot wholesaler vary greatly. Since he deals 

 very largely in perishables in large quantities and on his own ac- 

 count, his aim is to make as much profit as possible on each sale. 

 He has better chances to make wide margins than has the jobber, 

 because in many instances he deals directly with the farmer, who is 

 an inexperienced seller and unfamiliar with market methods. How- 

 ever, the car-lot wholesaler buys in large quantities for future sale 

 and thus takes greater risks than the jobber, who buys in small 

 quantities from day to day, moves goods rapidly, and in cases of 

 sharp market declines is able to close out very quickly. 



Average net profits at this step in distribution are usually less 

 than is popularly supposed. For instance, during the fall of 1914 

 apples were handled in Chicago and Kansas City on a gross margin 

 of 25 cents a barrel, oranges at 10 and 15 cents a box, and lemons at 

 25 cents a box. The margin of profit varies greatly on individual 

 sales and ranges from less than nothing to 50 per cent. Business 

 competition is usually very keen and prevents any long-continued, 

 excessive margin or profit. The car-lot wholesaler's business is sub- 

 ject to all overhead fixed charges, such as interest on investment, 

 labor, and rentals, and in addition he is subject to the costs of much 

 extra service, such as resorting, repacking, and the making of special 

 deliveries. Considering his costs of doing business and the services 

 which he renders, the car-lot wholesaler probably operates on as 

 small a margin of profit as any middleman concerned in food 

 distribution. 



FUNCTIONS PERFORMED BY CAB-LOT WHOLESALERS. 



These men perform the absolutely essential functions of acting as 

 primary distributors of produce arriving at market in car lots. Any 

 reforms which may be accomplished in distributive methods must 

 take into consideration the fact that some definite agency must under- 

 take the work of breaking car lots and starting distribution at market 

 centers. Hence, the car-lot wholesaler is undoubtedly <\ highly im- 

 portant element in present-day distributing machinery. 



SALES THROUGH COMMISSION MERCHANTS. 



The commission merchant is a professional agent whose business 



LS (Ik- selling "f goods on commission. He has possession of the 



