THE GROWERS' SELLING AGENCY 121 



auction and for agent's sales. The flat rate for all associa- 

 tions, therefore, is intended to apply only to the same kind 

 of fruit sold in the same manner. 



The agreement makes it clear that in the handling of 

 fruit the district exchange acts only as an agent and not 

 as a principal. It must use as much discretion and diligence 

 as possible in the sale of fruit, but it does not guarantee 

 to obtain any minimum price or to sell the fruit at all. As 

 the district exchange has practically no assets an associa- 

 tion has no recourse against it if cars are damaged in 

 transit or if they fail to find buyers when the market is 

 reached. All this might look as though the district ex- 

 change is merely a kind of commission firm to which the 

 growers through their packing associations consign their 

 fruit. Indeed it might even seem that a district exchange 

 is a particularly malignant exemplification of the consign- 

 ment plan, for each member association is by the agree- 

 ment compelled to turn over all fruit to the district 

 exchange for marketing or else pay damages on every box 

 not so delivered; and the district exchange is guaranteed 

 against loss by the provision for retaining adequate bro- 

 kerage, while a commission merchant may lose money if 

 he fails to receive consignments. 



In reality the points of similarity are quite superficial. 

 True, the district exchange can force the associations to 

 turn their output over to it. True also, its expenses are 

 guaranteed by the brokerage arrangement. But a com- 

 mission firm does business for profit, and in order to secure 

 profit sometimes resorts to the most reprehensible knavery. 

 It may sell to itself or to a dummy for a low price so as to 

 make an illegitimate profit on the resale. It may juggle 

 accounts so as to withhold more than the stipulated com- 

 mission. Both of these things took place before the de- 

 velopment of the cooperative distributive system. But the 



