6 BULLETIN 1124, U. S. DEPARTMENT OF AGRICULTURE. 



lake-and-rail lines during the season of navigation, or by all-rail 

 trunk lines at other times, at the differential in effect at the time of 

 shipment, as shown by published tariff rates, provided shipment is 

 made within contract time. 



Depending upon the demand for feeds and prevailing prices, 

 shipments are ordered out over either fast or slow routes. When 

 slow movement is desired the jobber may choose to order his cars 

 over the most circuitous route and preferably over roads on 

 which congestions have been reported, while if quick dispatch is 

 wanted he can select any of the numerous fast freight lines. When 

 ordering shipments to holding points the jobber assumes the risk of 

 being obliged to pay diversion and demurrage charges at such 

 points should he be unable to dispose of the shipments. To keep cars 

 at holding points is an expensive proposition, therefore, transit 

 offerings are often quoted at less than shipment prices. On the other 

 hand, a spontaneous demand frequently results in such offerings 

 commanding a premium of 50 cents or $1 per ton over shipment 

 prices. 



It should be understood that the arrival of a car at a holding point 

 does not necessarily mean that it then becomes necessary for the 

 dealer to dispose of it immediately at prevailing or sacrifice prices. 

 There are often other avenues open to him, one of which is the 

 ordering of the car to some other holding point along the route, or- 

 he may deem it advisable, if offerings are heavy and the demand 

 poor, to place the shipment in either a private or railroad storage 

 warehouse, a large number of which have arrangements allowing the 

 reshipping of stored feeds at the through freight rate. 



The principal reason for placing cars in transit unsold is that 

 jobbers are often unable to obtain orders for goods previously bought 

 from mills in anticipation of higher markets and therefore are unable 

 to furnish instructions ordering these shipments direct to destina- 

 tion. Moreover, should the jobber fail to furnish specifications as 

 required under the rules of the contract, the mill may elect to resell 

 the goods in the open market, and in the event the market price is 

 lower than the contract price he would be required to pay the 

 difference in price. 



In case the market is in the buyer's favor and the seller exercises 

 his right to cancel the contract because shipping instructions are not 

 supplied, the buyer is not entitled to an5^1iing. Before canceling the 

 contract or reselling the goods, however, the seller is obliged to give 

 the buyer due notice of his intention to do so. 



Rather than allow the resale at whatever price the seller may be 

 able to realize, the buyer usually prefers to take chances on the 

 course of the market and his ability to dispose of the goods in his 

 own territory and at his own price. 



The practice of placing considerable quantities of feeds in transit, 

 unsold, so common in the Northeast, is not followed to the same ex- 

 tent in other sections. The more constant and heavier demand in 

 Northeastern States affords dealers a readier outlet than is found 

 in other regions. In several sections the practice of holding cars in 

 transit is rarely followed. 



The territory supplied by distributors is confined to certain well- 

 defined sections or States. For instance, dealers in Pittsburgh, Phila- 



