14 BULLETIN 979, IT. S. DEPARTMENT OF AGRICULTURE. 
shippers with representatives in the various consuming sections can 
usually, through the. efforts of their salesmen or representatives, 
arrange a settlement that prevents a heavy loss ; but smaller shippers 
conducting their business by letter or telegraph frequently suffer 
severe losses from this practice. 
Wholesalers and Distributors. 
After the consumer, the next most direct agency to which the 
country shipper may sell his hay is the wholesaler or distributor in 
consuming sections. Sales may be made to them direct in the same 
manner that sales are made to consumers. In some sections, notably 
the South, wholesalers and distributors generally prefer to buy 
through a broker or other representative of the shipper for the 
reason that the broker or representative is located in their market or 
at least in near-by territory and as an agent of the shipper is con- 
veniently at hand if any difficulty arises relative to the sale or 
shipment of the hay. 
sales through brokers. 
Brokers in practice are shippers' agents. Their business is to sell 
to the dealers in their market or territory the commodity handled by 
the dealer or shipper whom they represent ; the prices are fixed by the 
shipper. Brokers are located in all the principal markets and dis- 
tributing points in the South and at many markets in other sections 
of the country. They handle the hay on a brokerage or commission 
basis and their rates range from 25 to 75 cents per ton. The usual 
brokerage fee at present is 50 cents per ton. Brokers should not be 
confused with commission merchants who operate in northern and 
western markets, for the services rendered by these two classes of 
dealers vary considerably. 
Sales are usually made in the following manner : A shipper hav- 
ing hay for sale telegraphs a broker whom he has already engaged to 
represent him in a certain market, giving the broker the prices, 
grades, and number of cars he has for sale. The broker is frequently 
instructed to sell subject to the shipper's confirmation, in order to 
make sure that the hay has not been sold by brokers in other markets 
who may have been engaged to sell the same hay. Unless there is an 
unusual demand in a market the broker can probably sell only a part 
of the cars offered by the shipper. For this reason several brokers 
are instructed to sell the hay. 
Upon receipt of the wire from the shipper, the broker canvasses by 
telephone or in person the various buyers in his market, offering the 
hay at the price quoted by the shipper, plus his brokerage fee. pro- 
vided it has not already been included in the quotation. If he is able 
to sell one or more cars of hay he immediately wires the shipper to 
