4 BULLETTlSr 1124, U. S. DEPAETMENT OF AGEICtTLTURE. 



products through brokers and to local jobbers. The latter, with few 

 exceptions, do not confine their activities to a strictly merchandising 

 business, but frequently resort to short selling when the outlook for 

 a declining market is favorable, or they contract for heavy supplies 

 for future shipment when they expect that the usual good demand 

 during the heavy feeding season will enable them to dispose of such 

 purchases at a profit. The fact that the majority of these jobbers 

 manage to remain in business would indicate that their judgment 

 in anticipating future feed-marketing conditions is, fairly accurate. 



Sales to jobhers in distributing markets. — If better prices are 

 obtainable by the mills elsewhere, their offerings are placed through 

 their brokers or representatives before the jobbers in the principal 

 distributing markets. These jobbers in turn either utilize the 

 services of brokers in markets in consuming sections in order to 

 resell to other jobbers or wholesale dealers, or they dispose of their 

 holdings to country dealers through salesmen or through the use of 

 offerings sheets. Frequently sales are made by one jobber to another 

 jobber in the same market. This is particularly true of transit 

 offerings. In case the jobber who owns the shipment " on rails " is 

 unable to find a buyer for it he may be obliged to discount the pre- 

 vailing price in order to make the sale to some other jobber who' may 

 have one or more open orders on hand. 



Shipped to markets to be sold on com^missian basis. — ^In several 

 sections of the United States the handling of wheat feeds on a com- 

 mission basis has worked out to the mutual satisfaction of both 

 the mills and the buyers. The only serious objection mills have to 

 this method is that some commission men may indulge in selling to 

 phantom concerns, or those in which they are financially interested, 

 with the purpose of reselling at higher prices to bona fide dealers, 

 perhaps on the same day. 



Considerable quantities of wheat feeds are handled on a commis- 

 sion basis in Pacific coast markets. Firms to whom a car of feed has 

 been consigned allow shippers to draw on them for 60 to 80 per cent 

 of the value of the shipment and when notified of its arrival arrange 

 for storage if it has not been sold in the meantime. The goods are 

 then disposed of as promptly as possible. They may be sold in lots 

 or the entire contents of a car may be sold to one buyer, usually basis 

 spot f . o. b. warehouse. Many of these commission men are not in a 

 position to make delivery ; hence prices delivered buyer's place of 

 business are not often quoted. 



The most businesslike commission men give prompt notice of sale 

 to the shipping mill. When a trade is made it is their duty on the 

 day of the trade to send a written confirmation to each of the princi- 

 pals (to the buyer a confirmation of sale and to the seller a confirma- 

 tion of purchase), setting forth the specifications of the trade as 

 made by him. As soon as payment is received account sales should 

 be rendered, accompanied by check for the net proceeds. 



It should be clearly understood by commission men that in case 

 goods have been consigned to them to be disposed of on a commission 

 basis, the shipper is entitled to receive the full amount realized, less 

 interest and storage charges, if any, and the commission agreed upon. 

 Every effort should be exercised by them to protect the interest of 

 their principals and to obtain the best possible price. 



