AMERICAN FRUIT AND PRODUCE AUCTIONS 11 
helped to develop a situation which makes it difficult for many pro- 
ducing sections to grade and pack any commodity uniformly and to 
ship a steady supply in the necessary volume required of a success- 
ful auction commodity. 
SOURCES OF SUPPLY 
The growth of the fruit and produce auctions during recent years 
may be attributed largely to the patronage of large cooperative and 
private marketing exchanges. An auction company that handles the 
accounts of one or more of these organizations usually is assured the 
steady and adequate supply necessary to attract the buying trade and 
to permit the successful continuation of business for reasonable 
charges. 
In general there are five classes of agencies operating through the 
auctions. These are named below in order of the volume of business 
furnished, as determined for the United States as a whole and not for 
any one market: 
(1) The larger marketing organizations which maintain salaried 
city representatives. Such organizations supply approximately 62 
per cent of the tonnage sold at auction. 
(2) Shippers who provide tonnage to the auctions through auction 
receivers or city dealers, who represent them for a fixed fee or an 
agreed commission. They supply approximately 20 per cent of the 
tonnage. 
(3) Car-lot wholesalers or commission merchants, supplying ap- 
proximately 9 per cent of the tonnage. 
(4) Individual shippers, shipping organizations, and associations 
that, in a few instances, make consignments direct to the auction com- 
pany. They supply approximately 8 per cent of the tonnage. 
(5) Brokers, who supply approximately 1 per cent of the tonnage. 
About four-fifths of the supplies sold at auction are handled locally 
through the salaried city representatives and the auction receivers. 
The former represents only the organization with which he is con- 
nected. It may be one of the large cooperative exchanges, a private 
sales agency, or a large shipping organization. The auction receiver 
may represent individual growers, small local cooperative exchanges, 
cooperative sales agencies, private or noncooperative sales agencies, 
country dealers, etc. 
Auction companies generally do not receive direct the shipments 
which are to be sold, this duty falling either to the personal repre- 
sentative of the seller or to the middlemen mentioned. These agencies 
are usually designated by the general term " auction receivers " or 
sometimes in midwestern markets as " auction contributors." 
It is the business of the receiver to handle the car upon arrival, to 
inspect the commodity for quality or grade and condition, to file 
any claims arising against the carrier for loss or damage in transit, 
and to prevent unnecessary delays in handling. He furnishes the 
auction company with a manifest which shows the number of the 
packages of each size and grade. The receiver arranges for the time 
of sale and represents the seller at the auction. He frequently in- 
forms the auctioneer as to the general quality of the various lots and 
is expected to protect his principal by seeing that all bids are recog- 
