16 BULLETIX 266, U. S. DEPARTMENT OF AGRICULTURE. 
CARS BILLED DIRECT TO BROKERS. 
A rather Luiconinion practice is that of the billing of cars direct to 
brokers in the markets by individual growers. When goods are 
standardized and the broker can effect a sale, subject to inspection, 
merely upon notification of shipment, this method may be practicable, 
but in the majority of cases the average grower will be unable to 
utilize this method. Brokers handle practically nothing in less than 
carload quantities, and if it is desirable to ship produce directly to 
market in less than carload lots, it will be necessary to make use of 
some commission merchant. Nevertheless, this method is open to 
any car-lot shipper, provided he meets the requirements of such 
distributors. Brokerage charges for selling vary from So to 820 or 
more a car. depending upon the commodity, the average charge for 
deciduous fruits being $15 per car. With oranges, lemons, and grape- 
fruit the average brokerage charge is 5 cents per box. 
The advantage to the shipper of using a broker is that the broker 
is supposedly the representative of the shipper and will look out 
primarily for his interests. He does not handle any funds and his 
brokerage is fixed, regardless of the selling price of the goods. He 
can be of great assistance to the shipper in preventing unwarranted 
rejections or in securing proper allowances where rejection is justi- 
fied. In other words, he acts as the personal representative of the 
shipper on the market. 1 
In reality, however, the broker is prone to favor the buyers in 
order to keep in good standing with the trade. Also, there is a 
temptation to accept orders for more cars than the market can stand, 
simply to get the brokerage, with resultant low prices to the growers. 
COMMISSION MERCHANTS. 
The most common outlet for the producer who is shipping in less 
than carload quantities is through the commission merchants in 
large markets. In the larger markets a gradual falling off is noticed 
in straight commission business. Dealers as a whole prefer the more 
businesslike method of outright purchases either at point of origin or 
destination, and lack of standardization and grading is probably the 
only hindrance to a more rapid reversion to this method of buying. 
Road salesmen often solicit consignments for then firms in addition 
to the regular solicitors. Stencils are supplied by most of these 
companies, giving the address of the firm and a number identifying 
the shipper, with which the farmer can mark his shipments. When 
this is done all details of marketing will be attended to by the com- 
mission firm. Usually these firms also render account sales to the 
1 For selling methods of the various wholesale agencies on the market, see Bulletin 267, U. S. Dept. of 
Agriculture. 
