SO BULLETIN 1362, U. S. DEPARTMENT OF AGRICULTURE 
buying and selling fruits and vegetables. These claims are enumer- 
ated below : 
(1) The shipper is said to benefit in that he receives his returns 
within 24 or 48 hours after the car is billed or as soon as diversion 
to the buyer is confirmed. He may reduce materially the specula- 
tion which often accompanies the selling of a car of produce and 
can eliminate the expense of a private sales force in the terminal 
markets. Furthermore, f. o. b. auction sales put him into position 
to discontinue shipments as soon as prices drop to a point where 
profits are nonexistent, thus saving the expense of harvesting, grad- 
ing, packing, and loading products which he knows in advance will 
sell at a loss. He does not have to wait until his car arrives in a 
terminal market to learn what it will sell for, and consequently the 
f. o. b. auctions tend to reduce shipments automatically and imme- 
diately in times of overstocked markets and low prices. 
(2) It is asserted that since all buyers p'urchase on a plane of 
equality, irrespective of the volume of business done or the cities 
in which they are located, the best market for each car is found auto- 
matically and speedily. This permits the routing of the car direct- 
to its ultimate destination. Because of the more prompt delivery, 
the risk of damage and deterioration in- transit is reduced. Savings 
are accomplished by eliminating the time and expense involved in 
extra private telegrams, extra bookkeeping, multiple diversions, 
demurrage, extra icing, etc., that are caused by delays in finding a 
market for a given shipment. 
(3) These auctions encourage the use of Government inspection 
at points of origin, and this inspection serves to bring about an im- 
provement in the quality of the shipments. The shipper naturally 
endeavors to secure a Government certificate which shows his prod- 
ucts to be well graded and in good condition. Waste is reduced 
thereby, since the grower or shipper is induced to refrain from har- 
vesting and packing and paying freight charges on products of in- 
ferior quality which will not return a profit. 
(4) The buyer is kept posted constantly on conditions in produc- 
ing sections and in other competing markets, and this prompt in- 
formation together with the Government inspection enables him to 
dispense with personal representatives in the shipping sections. 
(5) It is contended that f. o. b. auction sales, assist in equalizing 
prices and distribution among all markets represented at the sale, 
in proportion to their capacity to absorb shipments. 
It must be remembered in considering these claims that many of 
them are almost wholly dependent upon the auction handling a 
volume of each commodity offered sufficient to attract the trade, thus 
permitting the assembling of the supply and demand. The success 
or failure of this method of distribution no doubt will be determined 
largely by the ability of the f . o. b. auctions to attract a large number 
of buyers representing a large number of markets. 
It is also essential that the auction win the confidence of the trade 
by avoiding all suspicion of unfairness in carrying on its business. 
The catalogues must show accurately for each car listed all the 
facts contained in the original Government inspection certificate, as 
this is the only evidence which the buyers have on which to deter- 
mine the value of the car. Distortion of these facts, either inten- 
