, whereas a small lot of howsoever good a product
must seek a buyer. Freight rates are reduced, damage in transit is
reduced, and better transportation is secured in carload and trainload
than in small shipments. The middleman's charges are less if he is
assured a considerable volume of business. Thus specialization makes
possible a more effective system of marketing than is possible with
indiscriminate production.

Not only must there be sufficient volume of a given product, but it must
be so standardized with regard to varieties, grade and quantities or
packages that the reputation of the goods may be established in the
market. In order to secure uniformity it has been found necessary to
standardize varieties and to grow a few well-known varieties of a given
product which are best adapted to local conditions and to the market,
rather than a number of varieties, as might be feasible if they were all
sold directly on the local market.

Uniformity of grading and packing is also essential to establish a
reputation on the market. A concern like the California Fruit Growers'
Exchange cannot afford to spend half a million dollars a year in
advertising unless it knows that its product will be as advertised, for
advertising an unreliable product may secure temporary sales, but will
hardly be a profitable investment, for the value of advertising an
honest product is cumulative. To secure necessary uniformity of grading
and packing it has been found necessary with almost all agricultural
products to have the grading and packing done at a central establishment
rather than on the farm. For even assuming the honesty and good intent
of the farmer, the standards and skill of different farmers will vary to
such an extent that uniformity is impossible. Uniformity of grade and
package must be secured at some stage of the process of marketing before
the goods are bought by the retailer. Until recently much of this
service has been performed by the commission men at the central markets,
who have taken what was shipped to them or what their agents purchased
and graded it to meet the demands of the trade, and who, of course, had
to charge for their services. It has been found more profitable with
most products to have the grading and packing done as near to the farm
as is possible to secure a sufficient volume of business for the
enterprise. Thus we have local packing houses for fruits, potatoes,
poultry products, grain elevators, etc., us