20 BfLLEIIX 1362, U. S. DEPARTZMEXT OF AGRICULTURE 
price-realized catalogues, and are used to a large extent as the basis 
for market reports issued by governmental and private agencies. 
Prices realized by the auction sales on well-established auction com- 
modities are reflected directly in the street sales. Consequently it 
is advantageous to the seller to offer high-class products of de- 
sirable varieties and brands rather than to permit the auction prices 
to be established at a low figure because of the sale of fruit and 
produce of low grade and poor condition. 
In principle, auction sales are such that when the sale is once 
made it is binding on both the buyer and seller and the returns are 
bona fide, giving a staple basis for distribution and reducing the 
likelihood of dissatisfaction based on misunderstanding or sharp 
practice. Rebates, secret agreements, private adjustments, and 
manipulation of accounts are reduced to a minimum by the pub- 
licity attending all auction sales. The jobber who buys at auction 
can not increase his margin of profit unduly without the knowledge 
of his clientele, and as a result these jobbers have a tendency to work 
on a narrower margin. 
Buyers are not so interested in whether the price they pay is high 
or low as they are in knowing that they are buying on a plane of 
equality with all other buyers. If the open auction — f. o. b. or de- 
livered — is honestly and fairly conducted in all respects, the buyer 
may have the assurance that he is not at a disadvantage in competing 
with others and that the price he pays is governed by sirpply and 
demand and not by some artificial influence : provided, of course, the 
supply and demand are sufficiently concentrated. The whole prin- 
ciple of auction selling is predicated upon the necessity for having 
concentrated in one place a proportion of the supplies of any par- 
ticular commodity sufficient to attract a large body of the buying 
trade which handles that commodity. 
In those markets where more than one auction company exists, 
the usual custom is to follow an agreed rotation or schedule in the 
conduct of their sales. The companies as a rule do not hold their 
sales simultaneously but follow each other in a rotating sequence, 
often using the same auction rooms, in order that no company may 
hold the most advantageous position in the sequence more fre- 
quently than its competitors, and that the buying trade may have 
the opportunity of attending all sales. For the purpose of allow- 
ing all receivers to compete on a plane of equality, each auction com- 
pany further establishes an agreed rotation among its receivers, 
which changes their position in the sale from day to day. Instances 
have been reported, however, where influential receivers have forced 
the auction companies to sell their offerings each day at an hour 
which the receivers believe to be the most favorable for them. 
In certain of the larger markets, keen competition between the 
auction companies and the large volume of auction offerings have 
caused some companies to depart from these definite schedules and 
to hold sales simultaneously with their competitors, in which ship- 
ments of the same commodities are offered. Manifestly this prevents 
to a greater or lesser degree the convening of the demand in one 
place at one time, even though some dealers maintain two or more 
auction buyers to enable them to be represented at each sale. 
