16 BULLETIN 1:16, V. 6. DEPARTMENT OF AGRICULTURE. 



instructions that offers be submitted to him before the sale was made. 

 The broker called him on the telephone late one afternoon, after all 

 exchanges had closed, and advised that he was offered 7f cents a 

 pound for fche h>t. The farmer told the broker that he knew the lot 

 would r*^n ,$Vw points on Middling and that as the market was 

 quoting Middling at 8 cents he felt that he should at least receive that 

 price. The next morning the farmer received a check covering the 

 sale of the cotton at 8 cents. Thus a difference of about $1.88 per 

 bale, or $85 for the lot, was obtained which undoubtedly would have 

 been lost to this farmer if he had not been informed as to the class 

 of his cotton. 



COMPARISON OF SMALL AND LARGE LOT SALES. 



A study of all comparable large and small lot sales shows that the 

 producers who sold in large lots secured higher prices than the pro- 

 ducers who sold only one or two bales at a time. For the season of 

 1914-15 a comparison of prices received for lots containing 10 or 

 more bales with the average price received for single bales of the 

 same grades sold on the same date shows an average difference in 

 favor of the larger lots of 29 points, or $1.45 per bale. Sixteen large 

 lots, comprising 867 bales, were used in this comparison, the lots 

 ranging from 10 to 168 bales. 



For the 1915-16 season a comparison of lots ranging from 20 to 

 159 bales showed a difference of 171 points, or $0.85, per bale for the 

 larger lots. The data compiled showed that there was no appreciable 

 difference in prices between the sale of 20-bale lots and those contain- 

 ing 50 or more. 



There seem to be two principal reasons for the increased price 

 which large lots usually bring, one being the natural tendency of the 

 buyer to grade the large lot carefully and buy it at a smaller profit per 

 bale than he would the single bales, and the other being the induce- 

 ment to the large producer, if he did not receive an offer in keeping 

 with his grades, to ship his cotton to a point where he could obtain 

 competitive offers. Such an opportunity is not usually open to the 

 man with one or two bales. 



It appears conclusive, therefore, that there is a material advantage 

 in selling in reasonably large lots. This fact should be borne in mind 

 by cotton producers, as an increased price generally can be secured 

 without serious inconvenience to individuals. Cooperative selling 

 organizations will best meet this need and are recommended. How- 

 ever, farmers who are unable to perfect organizations of this char- 

 acter in their neighborhood can undoubtedly secure higher prices 

 merely by selling together. 



