MARKETING WESTERN BOXED APPLES 15 
The States that have compulsory laws for packing apples under 
definite grades provide an inspection system for enforcing the grading 
laws. It has been impossible for them to inspect each car shipped? 
and their duties are mainly of a police nature, but local public senti- 
ment favors the grading laws and little difficulty has been encoun- 
tered through shipping of apples not up to grade. Cooperative ship- 
ping and selling organizations and local cash buyers have main- 
tained extensive private-inspection forces to insure integrity of their 
packs and have thus been important factors in aiding enforcement 
of the laws. They label each box with the name of their organiza- 
tion, and as a matter of pride and sound business, it is their concern 
to see that each box of apples is up to the grade as marked. 
In 1922 the Federal service was expanded to include shipping- 
pant inspection for fruits and vegetables. Growers and shippers of 
oxed apples were among the first to ask for this service and they are 
making extensive use of it. Cooperative agreements have been 
worked out between the State and Federal authorities whereby 
inspections are supervised by Federal employees at various shipping 
points. This service is not compulsory but is used extensively by 
shippers and buyers. It was estimated that Federal certificates 
were issued at shipping points on approximately 40 per cent of the 
total 1924-25 tonnage originating in States that pack boxed apples. 
The inspector certifies the contents of the car as to grade and con- 
dition at time of shipment and a fee is charged which covers approxi- 
mately the cost of the service. This certificate is accepted as prima 
facie evidence in all United States courts. As much of the boxed- 
apple tonnage is bought f. o. b. shipping point, these certificates are 
used extensively as a basis for settlement between shipper and buyer 
whenever a controversy arises as regards grade or condition at time 
of delivery on the market. 
FINANCING 
In most sections the need of working capital to pay for growing, 
harvesting, and packing operations is greatly in excess of the ete! 
available from local business agencies, so that a large part of these 
funds comes from eastern and midwestern financial centers. As 
soon as shipping begins, the shippers are in a more favorable position 
to finance their operations and meet their obligations to the growers. 
It is a practice oF all types of apple shippers to sell as many cars as 
possible on f. o. b. orders. When such cars are shipped, drafts are 
drawn on the buyer. The shipper presents the bill of lading with the 
draft to his local banker. In turn, the banker gives the shipper 
credit for part or all of the amount of the draft and presents it for 
collection through a correspondent bank. 
Advances by local dealers to the grower may be either in cash or 
supplies, to be used in producing and delivering the crop. The loan 
is usually based on a per-box basis, amounting to about 50 per cent 
of the probable selling price. Supplies are usually charged for at 
current retail prices and handled at the rate of 8, 9, or 10 per cent 
interest. As security for advances, a crop lien is ereguently taken, 
although in many cases the marketing contract or selling privilege 
given to the dealer is considered sufficient security. Lenders may 
also accept growers’ notes as security. Traveling dealers finance the 
growers directly or through local dealers, ; 
