AMERICAN FRUIT AND PRODUCE AUCTIONS 3 
OWNERSHIP AND CONTROL OF AUCTION COMPANIES 
On the basis of the controlling interest, the fruit and produce 
auctions of the United States may be grouped in two divisions: 
(1) Auctions independent of trade control; (2) auctions controlled 
by the trade. In the second group are some companies in which the 
stock control is held by receivers, some in which the stock control 
is held by buyers, and some in which the stock is held by both buyers 
and receivers but with neither group in control. Regardless of the 
classification in which a given auction company is placed, the re- 
ceivers doing business with the company are frequently in a position 
to determine its policies to some extent. The degree of success 
which an auction company attains depends largely upon the nature 
of the accounts it has with its receivers and the support it obtains 
from them. Consequently the receivers' demands are likely in any 
case to receive serious consideration from the stockholders. 
The view is held by some elements of the trade that it is prejudi- 
cial to their interests for the control of an auction company to be 
in the hands of a few powerful dealers or organizations directly 
interested in the supplies which are sold by the auction. Rightly or 
wrongly, these buyers and receivers consider that under such condi- 
tions it is possible for the supplies, the bidding, the rates and 
charges, etc., to be so regulated as to give more or less of an advan- 
tage to the stockholders of the auction company. 
The desire of the trade for impartiality in the services rendered 
and the charges imposed is causing the gradual discontinuance of 
certain practices that at times have been a source of dissatisfaction. 
In some cities these causes, together w»ith a desire for participation 
in the profits earned by the auctions, have brought about reorgani- 
zations of existing companies or the founding of new companies. 
Auctions have become better established as permanent organizations 
in the last few years and greater uniformity in their methods and 
practices is apparent. 
At times some of the auction companies will purchase outright or 
make cash advances on car lots which they believe can be sold at 
auction to the financial advantage of the company. Local factors 
inimical to the auction have endeavored at times to boycott the 
auction and thereby cause it to abandon its sales. In such cases the 
auctions sometimes have resorted to direct purchases in order to have 
sufficient offerings to continue sales and to restore a normal auction 
market. The company, however, which uses its funds continuously 
for speculative purposes finds it more or less difficult to retain the 
confidence of its patrons. 
It is maintained by some that there is a decided benefit, particu- 
larly to the small buyer and seller, in having the policies and prac- 
tices of the auction companies controlled by interests entirely in- 
dependent of the trade, since such organizations are of a semipublic 
service character and their stockholders have no financial interest 
in the commodities sold. On the other hand, it is possible that the 
local situation in some cities would cause the auction business to be 
unattractive to outside capital and that there would be no auctions 
in these cities if the dealers themselves did not form and operate 
the companies. When the stock in an auction company is fairly 
