CAUSES OF REJECTTOXS OF BOXED APPLES 6 



were computed by subtracting the selling price, less freight, from the 

 original f. o, b. price. In case an allowance was made to the original 

 receiver the price reduction was the amount of such allowance. 



On cars which were rejected there were frequently additional 

 charges for diversion, demurrage, and for extra iciug or heater service, 

 inspection, telegrams, etc., which were chargeable to the shipper. 

 It was impossible to obtaiu accurate figures for the cost of these 

 services and in computing price reductions caused by rejections these 

 charges were not considered, but such costs were at least partly 

 balanced by settlement of certain railroad claims filed by shippers. 



Price reductions caused by rejections and allowances occurred on 

 10 per cent of the cars sold f. o. b. usual terms as a yearly average 

 for the three-year period. (Table 2.) The figure decreased from 



PER CENT 

 A-0 50 60 



100 



l922-'23 



I923-*2A- 



1 9 2/*-- "25 



3-YEAR AV. 



Rejections on which Price 

 Reductions were made 



Total Stiipments 



Fig. 1. — Xumber of rejections on which price reductions were sustained relative to total and f. o. b. 

 shipments, Washington State boxed apples, 1922-1925. The number of rejected cars on which 

 price reductions occurred relative To total and f. o. b. shipments, decreased during the three-year 

 period. 1922-1925, and averaged 8.2 per cent of the total shipments which was equivalent to 10 

 I)er cent of the f. o. b. shipments 



15.2 per cent for 1922-23 to 9.0 per cent for 1923-24 and again to 

 6.0 per cent in 1924-25. These percentages are equivalent to 13.0, 

 6.5 and 5.2, respectively, of the total shipments. (Fig. 1.) 



Table 2. — Rejections and allowances on /. o. h. sales 



Item 



1922-23 



1923-24 



1924-25 



Average 



Firms reporting 



Cars sold f. o. b.i 



Cars sold f. o. b. on which price reductions were 



made ...per cent.. 



Cars sold f. o. b. on which allowances were made to 



original receiver lyer cent.. 



Cars sold f. o. b. which were rejected and resold at a 



reduction in price per cent.. 



Amount of price reductions on f. o. b. sales of these 



firms by reason of allowance or resale 



Average price reduction per car on cars on which 



reductions were made 



Average price reduction per car sold f. o. b 



Average price reduction per car on total tonnage. .. 

 Price reductions in terms of f. o. b. price of rejected I 



cars per cent..! 



15 

 9,182 



15.2 



8.8 



12 

 12,658 



9.0 



5.4 

 3.6 



$309,325.58 | $201,899.02 



$221. 58 

 $33.69 

 $28.70 



2 23.4 



$177. 26 

 $15. 95 

 $11.57 



19.2 



13 





9,578 





6.0 



10.0 



4.5 



6.2 



1.5 



3.8 



$102, 881. 01 





$178. 92 



$192. 59 



$10. 74 

 $9.34 



13.1 



$20.13 



$16.54 



19. 



1 F. 0. b. sales as used in this table means f. o. b. usual terms. 



Based on reports «f 13 firms. 



