SERVICES IN COTTON MARKETING 21 
accumulate unduly. If for any reason the price margin becomes en- 
dangered, the merchant must make it good. 
Successful distribution in space, in so far as price is concerned, 
is essentially a problem of bargaining ability and advantageous con- 
tacts. Cotton does comparatively little excessive traveling. The 
custom is to leave it in the original concentration place until it starts 
definitely toward its final destination, though ownership may pass 
through several hands. 
TERMS USED IN THE MOVEMENT OF COTTON 
The movement of the cotton proceeds according to certain well- 
defined terms, whether it is for domestic consumption or for export. 
If the destination is domestic and does not involve ocean freight, it 
is sold and shipped on f. o. b. terms. It is usually either f. o. b. 
point of origin or of destination, though other terms are quoted. If 
the price is quoted f. o. b. (named point of origin) the seller must 
(1) place the goods in the cars, (2) procure bill of lading, and (3) 
be responsible for loss until the cotton is placed in cars. The buyer 
is responsible thereafter for (1) damage. (2) all transportation 
costs, and (3) all subsequent movements and charges. 
If the cotton is sold f. o. b. destination (named point) the seller 
must (1) place the cotton in cars, (2) procure bill of lading, (3) pay 
the freight to named point, and (4) be responsible for loss until the 
goods have been placed in the cars and a clean bill of lading ob- 
tained. The buyer must (1) be responsible for loss thereafter, (2) 
handle all subsequent movements, (3) unload cars, and (4) pay all 
demurrage and storage. 
If the seller wishes to quote a price on cotton free alongside over- 
seas vessel and within reach of its loading tackle, the terms are f. a. 
s. vessel (named port). In this case the seller (1) transports goods 
to seaboard, (2) stores goods in warehouse or on wharf, unless the 
buyer's obligation includes provision of shipping facilities, (3) 
places goods alongside of vessel, (4) provides the usual dock receipt 
or ship's receipt, and (5) is responsible for loss until goods are de- 
livered alongside ship. The buyer must (1) be responsible there- 
after for damage and insurance, and (2) handle all subsequent 
movements. 
Some of the other terms used in making cotton shipments are f . o. b. 
cars (named point of destination) ; f. o. b. cars (named point of 
destination), lighterage free; and f. o. b. vessel (named port). 13 
If the seller of cotton quotes the price in terms of foreign point 
deliver}', they are either c. and f. (named foreign port), c. i. f. 
(named foreign port), or c. i. f. (named foreign port) and 6 per cent 
which is designated " c. i. f. and 6 per cent terms," which means cost, 
freight, insurance on the gross weight less 6 per cent. In the first 
case the seller must (1) make freight contract and pay cost of trans- 
portation; (2) deliver to buyer a clear bill of lading: and (3) be re- 
sponsible for loss and for damage until goods are delivered along- 
side of ship, and a clean bill of lading is obtained. The buyer must 
(1) be responsible for all subsequent loss and/or damage, (2) 
handle subequent movements, (3) take and pay all costs of delivery, 
and (4) pay foreign customs duties. In the second case the con- 
13 p or f ur th er discussion of these terms, see American Forei.cn Trade Definitions as pub- 
lished by the National Foreign Trade Council, India House, Hanover Square, New York. 
