CAUSES OF EEJECTIOXS OF BOXED APPLES 5 



invoice price. It was not possible to determine whether the cars on 

 which allowances were made averaged higher in quality, condition, 

 or grade than the cars which w^ere rejected and resold. For the 

 period studied, the average reduction on allowances was $137.10 per 

 car, and on cars rejected and resold at less than the invoice price, 

 $288.02. (Table 3.) These figures represent 14.0 per centand 28.2 

 per cent, respectively, of the original f. o. b. price of the cars involved. 



Both the allowances and reductions due to resale, when compared 

 to the original f. o. b. price, show a decline over the period of the 

 studv. The allowances in terms of the f. o. b. price amounted to 18 

 per cent in 1922-23, 13.1 per cent in 1923-24, and 10.9 per cent in 

 1924-25. In the case of cars which were rejected and resold at less 

 than the original price, the correspondiug percentages were 36.5, 28.3, 

 and 19.7. 



For 1922-23 complete records were not available on cars which 

 were rejected and resold at the same or higher price. When such 

 cars were taken into consideration for the two later years, the net 

 price reduction in percentage of the iQvoice price on cars which were 

 rejected and resold was 26.0 for 1923-24 and 16.3 for 1924-25, 

 instead of 28.3 and 19.7, respectively, as stated in the preceding 

 paragraph, when only cars resold at less than the invoice price were 

 considered. 



Table 3. — Comparison of price reductions on allowances and resales 



Item 



1922-23 



1923-24 



1924-25 



Average 



Firm reporting 



Cars on which allowances were made .-. 



Invoice price on cars on which allowances were 



made 



Allowances 



Price reduction per car on allowances 



Percentage of invoice price allowed per cent.. 



Cars rejected and resold at a lower price 



Invoice price on cars rejected and resold at a lower 



price 



Price reduction on resales 



Price reduction per car on resales... 



Price reduction in percentage of invoice price on 



resales per cent . . 



15 

 1794 



$625, 316. 65 



$112,840.56 



$142. 12 



18.0 



527 



$481,840.15 



$175, 657. 61 



$333. 32 



36.5 



12 

 683 



$624, 937. 90 



$81, 684. 42 



$119. 60 



13.1 



458 



$425, 328. 86 



$120, 214. 60 



$262. 48 



28.3 



13 

 428 



$585, 774. 71 



$63, 716. 60 



$149. 57 



10.9 



146 



$199, 149. 31 



$39, 164. 41 



$268. 25 



19.7 



$137. 10 

 14.0 



$288. 02 

 28.2 



1 For 1922-23 the number of cars used in the comparison in this table was slightly less than the number 

 used in Table 2. 



CARS REJECTED AND RESOLD AT THE ORIGINAL F. O. B. PRICE 



OR MORE 



The number of rejected cars which were resold at the invoice price 

 or at an advance over this price was very small. In 1923-24, 38 cars 

 or 3.2 per cent of the cars rejected as reported by 12 firms, were 

 resold at the original f. o. b. price or more. The advance over the 

 original price on these cars averaged only $31 per car or 3.6 per cent 

 of the invoice price on such cars. In 1924-25, 27 cars or 4.4 per cent 

 of the cars rejected as reported by 13 firms were resold at the original 

 f. o. b. price or more. The advance over the f. o. b. price on these 

 cars averaged only $37.22 or 2.9 per cent of the invoice price on these 

 cars. It appears from these figures that reductions in price were 

 sustained on more than 95 per cent of the cars which were rejected. 



