AMERICAN FRUIT AND PRODUCE AUCTIONS 25 
AUCTION CHARGES 4 
The commissions charged by the delivered auction companies 
vary from iy 2 to 7 per cent, depending upon local conditions and the 
extent and character of the services rendered. The usual charges 
range from V/ 2 per cent to 2y 2 per cent. The highest commissions 
are charged in western markets on products which are seldom han- 
dled or which are difficult to handle. Most of the commodities auc- 
tioned in the western markets are sold for a commission of from 
2 to 3 per cent. 
Receivers or shippers who make only occasional use of the auction 
or who handle only a small volume of fruit or produce, often are 
subject to additional charges, such as terminal or dock charges, han- 
dling expenses, and catalogue charges, which may increase the total 
cost of selling to 3 to 5 per cent of the gross sales. It is customary, 
however, particularly in the seaboard markets, for the auction com- 
panies to absorb these expenses in dealing with large receivers who 
use the auctions continually in volume. 
Several companies have a fixed terminal charge, which is estab- 
lished to cover the expense of unloading cars, stacking, lining and 
displaying packages, and delivery to the buyers' trucks. The amount 
of this charge is paid by the buyer, in addition to the price at which 
the goods are sold. This terminal charge ranges from 1 to 5 cents 
per package. Some companies have succeeded in having certain por- 
tions of this work done by the railroad companies, in which case the 
cost is probably included in the tariff and goes back to the shipper 
instead of being involved in the operating expense of the auction 
company, or paid by the buyer as a terminal charge. 
The auction receiver generally charges the shipper a commission 
ranging from 1 to 7 per cent of the gross sales. The usual charge is 
5 per cent, out of which are paid the charges to the auction company, 
amounting usually to from iy 2 to 2y 2 per cent. Some auction re- 
ceivers make a fixed charge of $10 to $25 per car. Certain large 
shipping organizations which are heavy contributors to the auctions 
handle their business through their own salaried employees, thus 
securing individual representation and frequently at a substantial 
reduction from the usual receivers' charges. 
Some auction companies make a stated charge for cataloguing 
their offerings, ranging usually from $1.50 to $3 a car. Others ab- 
sorb this expense in their commission. A few companies make a 
practice of billing a catalogue charge against all receivers except 
those who steadily furnish a large volume of business to the auction. 
As a rule the auction companies make a charge for recataloguing a 
car that has been withdrawn from a previous sale. 
In some cases large and influential receivers or shippers have been 
able to secure from the auction companies a somewhat better rate 
than others are given. These preferential rates consist of reductions 
in commissions, reduction or elimination of cataloguing or terminal 
charges, etc. Apparently these rebates are often made by private 
arrangement and do not follow any definite schedule. A flat rate 
would appear to be more satisfactory from the standpoint of the 
small buyer or seller, although there may be some justification for 
* For charges made by f. o. b. auctions, see p. 28. 
