AMERICAN FRUIT AND PRODUCE AUCTIONS 27 
graph while the cars are still at the loading stations, in transit, or in 
storage. One of these companies maintains headquarters in Pitts- 
burgh with salesrooms in Chicago, Detroit, Cleveland, Boston, New 
York, Philadelphia, Omaha, and St. Louis, and also has its leased 
wire extending to Los Angeles. During the season of heavy ship- 
ments of the commodities it handles, it also connects with a number 
of important producing sections including Orlando, Fla., El Centro 
and Fresno, Calif., and Yakima and Wenatchee, Wash. The other 
company has its main office in Chicago with branches and salesrooms 
in Pittsburgh, Philadelphia, New York, Boston, and Detroit, and 
connects with some of the important shipping points in season. 
The first of these companies began operating in June, 1923, with 
sales conducted in Pittsburgh only. In October the sales were ex- 
tended to include several of the principal markets in the Eastern and 
Central Western States, with the salesrooms connected by a leased 
telegraph wire. In October the second company began operations, 
employing much the same principles as the basis for the conduct 
of its business. These two companies, one operating for about 2y 2 
months and the other operating for approximately 7 months had 
sold up to January 1, 1924, an aggregate of about 8,835 cars of 
fruits and produce, valued at more than six million dollars. 
The activities of these so-called f. o. b. auctions have been more 
or less seasonal in their character. Their operations have been 
expanded during the grape and cantaloupe seasons and contracted 
during the remainder of the year. In fact, both companies have at 
times temporarily discontinued business in slack seasons. 
METHODS OF SALE 
Each car offered for sale in these f. o. b. auctions is inspected at 
the point of origin or in storage by Government inspector, or in 
some instances, by other inspectors who are not Federal or State 
employees. The Government inspector issues a certificate to the 
applicant for inspection showing the quality or grade and condition 
of the lot, which is acceptable to all United States courts as prima 
facie evidence of the truth of the statements therein contained. The 
contents of this certificate are transmitted to the auction company 
along with the car number, date of shipment, origin of shipment, 
routing and manifest, or in case of stock in storage, sufficient data 
to identify the lot. The auction company upon receipt of this in- 
formation immediately lists a complete description of the car in its 
catalogue at each of the salesrooms, the car appearing under the same 
lot number in each market. 
The trade in the territory adjacent to each market in which sales- 
rooms are located is notified of the date and hour of each sale and is 
supplied more or less regularly with catalogues. In some cases the 
authorized agents or representatives of out-of-town buyers attend the 
sales and bid on the offerings in which they are interested, in com- 
petition with the local trade. The information obtained in the cata- 
logue enables the buyer to determine the relative value of the various 
cars offered, and furnishes a basis for judgment in buying. 
Each car lot listed in the catalogue is offered at open auction 
simultaneously in all the salesrooms, and bidding is carried on over 
the leased telegraph wire. Bids are accepted in increases as small 
