AMERICAN FRUIT AND PRODUCE AUCTIONS 33 
RIGHT TO WITHDRAW PROPERTY OR BID 
Until the hammer falls and the bid is accepted, the seller may with- 
draw his property from sale or the bidder may withdraw his bid, 
even though the conditions of sale provide that bids shall not be 
withdrawn. 
SUMMARY 
Twenty-four companies are now engaged in the business of selling 
fruits and produce at auction in the United States. These companies 
operate in 14 of the principal distributing centers, all but one of 
which are located in the northeastern section of the country. 
Numerous changes have taken place in the auction business in 
recent years. Reorganizations, consolidations, and the establish- 
ment of new companies have occurred in several cities. Most of these 
changes have resulted from the demands of the trade for imparti- 
ality in the services rendered and the charges imposed, and from 
their desire to participate in the profits earned by the auctions. 
The tendency is toward greater uniformity in methods and practices. 
Some auctions are controlled by members of the trade, others are 
independent of the trade. Irrespective of the type of organization, 
an auction must render impartial service in order to merit the 
confidence of its patrons. If it is honestly and equitably conducted 
the auction tends to assemble the supply and demand in the market. 
Auctions in the receiving markets whose sales are made only 
after arrival of the goods are known as delivered auctions, in con- 
trast to those selling by wire before arrival, known as f. o. b. auc- 
tions. The former, as a rule, sell in jobbing quantities, the latter in 
car lots. 
The delivered auction occupies a position in the channels of dis- 
tribution between the shippers and the retailers. On the one hand, 
its functions are identical with those of the car lot wholesaler or the 
commission merchant, while on the other it operates in much the 
same manner as the jobber and other less-than-car-lot wholesalers. 
It serves both groups. 
A great variety of commodities are sold at auction, but the ma- 
jority of the supplies consist of citrus and deciduous fruits. Vege- 
tables constitute only a very small fraction of the auction sales. 
Fruits and vegetables to sell successfully by this method should 
be uniformly graded and packed in standardized containers. They 
must be offered in volume sufficient to attract the trade and must 
appear regularly on the auction when in season. They may be of 
foreign or domestic origin. 
Limited warehouse and terminal facilities, unfamiliarity with 
auction methods and practices, long-established prejudices and cus- 
toms of buyers and sellers, lack of uniformity in grading and pack- 
ing, and inadequate control of shipments — all these constitute 
marked difficulties in the way of turning new commodities to auction. 
The auction business has increased substantially during the past 
few years. This may be attributed largely to the patronage of large 
cooperative and private marketing exchanges. Their salaried city 
representatives and the auction receivers furnish approximately 
four-fifths of the supplies sold at auction. 
