MARKETING EASTERN GRAPES. 23 



For this service the local banks in Michigan charge a fee of 25 

 cents per $100 face value of the draft, and the balance is credited 

 upon payment of the draft, less an}' costs charged by remitting 

 banks" and less also an interest charge of 6 per cent on the money 

 advanced, after five days' grace expire. These are the standard 

 terms to brokers. Cooperative associations are given financial ac- 

 commodations on nearly the same basis, but must have a sufficient 

 balance on hand to cover all transient drafts. 



One of the most frequent causes for friction between shippers 

 and receivers is the privilege of rejection at destination, incident 

 to this type of sale. No one can deny the right of the receiver to 

 refuse stock which does not come up to the quality agreed upon, but 

 the complaint of shippers is that in a falling market even good 

 stock is rejected as unsound. This, of course, is sharp practice 

 and is condemned by the more honest members of the trade. In 

 this connection mention should be made of the Food Products In- 

 spection Service of the Bureau of Markets, which, in many of the 

 larger markets, makes official inspection upon request of the ship- 

 per or receiver at a cost of $4 per car or $2.50 on small lots, and 

 issues certificates as to the quality and condition of the stock which 

 constitute prima facie evidence in the event of a dispute. , 



When a buyer decides to reject a car, he refuses to accept the 

 sight draft and bill of lading and usually notifies the shipper to 

 that effect, often telegraphing a new offer for the car. This the 

 shipper may accept or decline, and in the latter case he can sell to 

 other dealers in the same market or divert the car to another city. 

 Any one of these courses necessitates new arrangements with both 

 the receiving and remitting bank. Frequently, upon claim by the 

 receiver, a shipper will grant a firm with which he has done busi- 

 ness for some time a certain "allowance "" or the discount of a few 

 cents per basket on stock that arrives in bad condition, even though 

 the receiver accepts the draft. 



CARLOADS F. O. B. CASH TRACK. 



In its simplest form the type of sale known as "f . o. b. cash track " 

 consists in the purchase of a loaded car of grapes, ready for ship- 

 ment, by a traveling representative of a city dealer, of a juice fac- 

 tory, or of a distributing agency, payment to be made before the 

 car moves. This type of sale is practiced to an increasing extent in 

 all sections. But cash track sales are sometimes made in New York 

 and in Michigan upon telegraphic orders when the buyer agrees 

 to accept the cars at shipping point and has made arrangements to 

 telegraph the amounts due. Another financial arrangement is for 



