WHOLESALE DISTRIBUTION OF FRUITS AND VEGETABLES. 17 
market for the next day's offerings. These sales are to be com- 
mended, as considerable quantities of low-grade stuff are thus placed 
within the reach of the consumer at reasonable rates, and the practice 
serves to rid the market of a surplus of low-grade produce. 
COSTS AND PROFITS. 
Profits to the car-lot wholesaler vary greatly. Since he deals 
very largely in perishables in large quantities and on his own ac- 
count, his aim is to make as much profit as possible on each sale. 
He has better chances to make wide margins than has the jobber, 
because in many instances he deals directly with the farmer, who is 
an inexperienced seller and unfamiliar with market methods. How- 
ever, the car-lot wholesaler buys in large quantities for future sale 
and thus takes greater risks than the jobber, who buys in small 
quantities from day to day, moves goods rapidly, and in cases of 
sharp market declines is able to close out very quickly. 
Average net profits at this step in distribution are usually less 
than is popularly supposed. For instance, during the fall of 1914 
apples were handled in Chicago and Kansas City on a gross margin 
of 25 cents a barrel, oranges at 10 and 15 cents a box, and lemons at 
25 cents a box. The margin of profit varies greatly on individual 
sales and ranges from less than nothing to 50 per cent. Business 
competition is usually very keen and prevents any long-continued, 
excessive margin or profit. The car-lot wholesaler's business is sub- 
ject to all overhead fixed charges, such as interest on investment, 
labor, and rentals, and in addition he is subject to the costs of much 
extra service, such as resorting, repacking, and the making of special 
deliveries. Considering his costs of doing business and the services 
which he renders, the car-lot wholesaler probably operates on as 
small a margin of profit as any middleman concerned in food 
distribution. 
FUNCTIONS PERFORMED BY CAR-LOT WHOLESALERS. 
These men perform the absolutely essential functions of acting as 
primary distributors of produce arriving at market in car lots. Any 
reforms which may be accomplished in distributive methods must 
take into consideration the fact that some definite agency must under- 
take the work of breaking car lots and starting distribution at market 
centers. Hence, the car-lot wholesaler is undoubtedly a highly im- 
portant element in present-day distributing machinery. 
SALES THROUGH COMMISSION MERCHANTS. 
The commission merchant is a professional agent whose business 
is the selling of goods on commission. He has possession of the 
