New York State College of Agriculture At Cornell University Ithaca, N. Y. Library Cornell University Library HD9000.9.U7A2 1919 Cold-storage legislation.Hearings before 3 1924 013 869 064 Cornell University Library The original of tiiis book is in tine Cornell University Library. There are no known copyright restrictions in the United States on the use of the text. http://www.archive.org/details/cu31924013869064 COLD-STORAGE LEGISLATION HEARINGS BEFORE THE COMMITTEE ON AGRICULTURE HOUSE -OF EEPRESENTATIVES SIXTY-SIXTH CONGRESS FIEST SESSION OK COLD-STORAGE LEGISLATION WITH INDEX AND APPENDIX CONTAINING COMPILATION OF STATE LAWS RELATING TO COLD STORAGE, AND REPORT OF THE U, S. FOOD ADMINISTRATION FOR 1918 AUGUST 11-26, 1919 PARTS 1-11 WASHINGTON GOVERNMENT PRINTING OFFICE 1919 COLD-STORAGE LEGISLATION HEARINGS BEFOKB THE COMMITTEE ON AGRICULTURE HOUSE OF EEPEESENTATIVES SIXTY-SIXTH CONGRESS FIRST SESSION ON COLD-STORAGE LEGISLATION WITH INDEX AND APPENDIX CONTAINING COMPILATION OF STATE LAWS RELATING TO COLD STORAGE, AND REPORT OF THE U. S. FOOD ADMINISTRATION FOR 1918 AUGUST 11-26, 1919 PARTS 1-11 WASHINGTON tiOVERNMKNT PRINTING OFFICD lUlO • / ' I COMMITTEE ON AGRICULTURE. House of Representatives. GILBERT N. HATJGEN, Iowa, Chairman. JAMES c. Mclaughlin, Michigan. SYDNEY ANUEUSON, Minnesota. WILLIAM W. WILSON, Illinois. CIIAULES B. WAUD, New Yoik. WILLIAM B. McKINLEY, Illinois. ELI.IAll C. HUTCHINSON, New Jersey. FUED S. rURNELL, Indiana. EDWARD VOIGT, Wisconsin. M. 0. Mclaughlin, Nebraska. EVAN J. JONES, I'ennsyivania. CARL W. RIDDl'CK, Montana. J. N. TINCHER, Kansas. J. KUHIO KALANIANAOLE, Hawaii. K.O. riAUGBN, clerk 2 GORDON LEE, Georgia. EZEKIEL S. CANDLER, Mississippi. J. THOMAS IIEKLlN, Alabama. THOMAS L. RUBEY, Missouii. JAMES YOUNG, Texas. HENDERSON M. JACOWAY, Arkansat. JOHN V. LESHEU, Pennsylvania. OOLD-STOEAGE LEGISLATION. Committee on Agriculture, House of Eepresentatives, Washington, D. C, Monday August 11, 1919. The committee met at 10.30 o'clock a. m., Hon. Gilbert N. Haugen (chainnan) presiding. Present: Members of the committee; also Mr. Chester Morrill, assistant to the solicitor; Mr. Herbert C. Marshall, assistant chief Bureau of Markets; and Mr. Walter G. Campbell, assistant chief Bureau of Chemistry, Department of Agriculture. The Chairman. The committee has been called in session this morning to consider cold-storage legislation. Bills dealing with the proposition have been referred to this committee. In order to bring this matter to the attention of the committee, the chainnan lays be- fore the comrnitte H. R. 7970, by Mr. Hutchinson, "A bill to pro- vide revenue and for the regulation and supervision of cold-storage warehouses, and the conservation, storage, sale, and distribution of food and food products " — not with the intention of confining the deliberations of the committee to this bill, but for the purpose of placing the whole subject matter before the committee so that some conclusion may be reached. Mr. Anderson. May I ask if this particular hearing is to be con- fined to the cold-storage proposition? The Chairman. My intention was to confine to-day's hearings to cold-storage legislation, but not to the one plan suggested in this bill. There are other matters pending before the committee, bills affecting commercial feed, fertilizers, the livestock and packing in- dustries. When we finish the hearings on cold-storage legislation we may take up other matters, but I take it that it would be better to hold hearings on one proposition at a time. However, the commit- tee will determine what course to pursue. Mr. Lee. This Hutchinson bill only deals with cold storage, does it not? I have not read it. The Chairman. Yes. It only deals with cold storage. The De- partment of Agriculture has carried on an extensive investigation, and it was thought that it might be well to have the benefit of its conclusions and any specific recommendations that it may have to make. We have with us this morning several representatives of the De- partment. If it is agreeable to the committee we will hear from them first. What is the pleasure of the committee ? Mr. McLaughlin of Michigan. I thought possibly the chairman would desire to take up first the matter of amendments, if amend- ments were thought necessary, to the food-control act. If those 4 COLD-STORAGE LEGISLATION. amendments are necessary, they could be made earlier than we could possibly reach a conclusion as to this big bill. The Chairman. Inasmuch as cold-storage legislation is one of the the recommendations of the President in dealing with the high cost of living and inasmuch as the President states, '^Fortunately, under the terms of'tlie foo^-cohtrol act, the hoarding of fpodsj^uffs can be checked and ' prevented and they will be with the greatest energy.' Now, that it is admitted that the law is. adequate and we have assur- ance that there will be no further delay in the enforcement of the law, there seems to be no need of legislation in that connection for the present. As to extending the period of time of its operation, that is a matter that is up to the President, as under the termsof the act, he determines when the control is to be terminated, which probably will not be for several months. As to enlarging its scope, I take it that the committee may defer action as to that until the President or the department submits specific recommendations, which, I understand, are to be submitted. But, of course, it is a matter for the committee to determine what subject it will take up first. Mr. McLaughlin of Michigan. Is it the chairman's idea the only important thing to be done with the food-control act is to extend the time during which it shall be kept alive? Of course, if that is true, it will run for a long time, and we will have plenty of opportunity to make that change if it is deemed necessary to make it. The Chairman. My understanding is that the President has sug- gested an extension of the act as to the period of time the commodi- ties to which it is to apply, and penalties for profiteering. The mes- sage reads, " Let me urge, in the first place, that the food-control act should be extended both as to the period of time during which it shall remain in operation and as to the commodities to which it shall apply. Its provisions against hoarding should be made to apply not only to food but also to feed stuffs, to fuel, to clothing, and to many other commodities which are indisputably necessaries of life. As it stands now it is limited in operation to the period of the war and becomes inoperative upon the formal proclamation of peace. But I should judge that it was clearly within the constitutional power of the Congress to make similar permanent provisions and regulations with regard to all goods destined for interstate commerce and to exclude them from interstate shipment if the rec^uirements of the law are not complied with. Some such regulation is imperatively neces- sary. The abuses that have grown up in the manipulation of prices by the withholding of foodstuffs and other necessaries of life can not otherwise to effectively prevented. There can be no doubt of either the necessity or the legitimacy of such measures. May I not call at- tention to the fact, also, that although the present act prohibits profiteering, the prohibition is accompanied by no penalty. It is clearly in the public interest that a penalty should be provided which will be persuasive." As to penalties for profiteering, section 5 of the food-control act gives th& President authority to " license the importation, manufacture, storage, mining, and distribution of any necessaries" (which according to the definition includes foods, feeds, fuel, etc.) and provides that no person shall engage in or carry on any such business of importation, etc., unless he shall secure and COLD-SXOEAGE 1.EGISLATI0N. 5 hold a license. The President is authorized to issue such license and to prescribe regulations for the issuing of licenses, and whenever the President shall find that any profit, practice, etc., of any licensee is unjust, or unreasonable, or discriminatory and unfair, or wasteful^ he may order such licensee to discontinue the sanje, and he shall dis- continue such profit or practice, etc. The President may determine what is a reasonable profit or practice, and if the licensee or any person without a license "knowingly engages in or carries on any business for which a license is required under this section willfully fails or refuses to discontinue any unjust, unreasonable, discrimina- tory, and unfair storage charge, commission, profit, or practice, in accordance with the requirement of an order issued under this sec- tion, or any regulation prescribed under this section, shall, upon conviction thereof, be punished by a fine not exceeding $5,000, or by imprisonment for not more than two years, or both." Plence, if any person carries on without a licenses a business for which a license is required, or if the order is not complied with and the licensee con- tinues the practice, he is subject to a fine not exceeding $5,000 or to imprisonment not exceeding two years, or both. Evidently penal- ties for profiteering have been well taken care of. Mr. McLaughlin of Michigan. I suggest that we follow the sug- gestion of the chairman. The C:i->iRMAN. If it is agreeable, the committee will liear from representatives of the department. Mr. Marshall, are you in charge ? Mr. Marshall. Would you like to discuss the constitutional ques- tion first, Mr. Chairman? The Chairman. Very well ; let us hear you upon that. Mr. Marshall. It would depend upon what you would like to have discussed first. If you would like to have the constitutional question discussed first, we ought to hear from Mr. Morrill. The Chairman. The committee would like the opinion of the department as to the constitutionality of the bill and any suggestion the department may have to make in the way of legislation. Mr. Marshall. If you think it advisable to take up the question of constitutionality first, then we will hear from Mr. Morrill. STATEMENT OF MR. CHESTER MORRILL, ASSISTANT TO THE SOLICITOR, DEPARTMENT OF AGRICULTURE. Mr. Morrill. T am assistant to the Solicitor of the Department of Agriculture and have therefore considered the Hutchinson bill, and the questions arising out of such legislation, solely from the legal standpoint. Other men from the department have considered it from a practical standpoint. It is my understanding, however, tliat the department is in favc>r of proper cold-storage regulation, within the limits of the powers of Congress, so in commenting up the Hutchin- son bill I wish that kept in mind. I noticed in reading over the bill that in the caption it is "A bill to provide revenue, and for the regulation and supervision of cold- storage warehouses, and the conservation, storage, sale, and distribu- tion of food and food products." So that at least two objects are expressed, one of revenue and the other of regulation. In the definitions in the first section I find that a licensee is defined as meaning any person or corporation licensed under the act. Merely COLD-STORAGE LEGISLATION. by way of passing, I call attention to the question whether that defi- nition is complete, in view of the juxtaposition of the words " per- son" and "corporation." In section 2 I find " That no person, persons, or corporation shall operate a cold-stocage warehouse without a license issued by the Department of Agriculture," and the conditions upon which that license may be issued are that the cold-storage warehouse shall be in a sanitary condition and properly equipped for the purpose of cold storage; that it may be operated for one year under the license, and that the license shall not be granted untila fee of $50 has been paid. 1 find no mention anywhere else, in any other section of the bill, of the revenue feature as mentioned in section 2, or of the " licensee " as such. And in reading through the rest of the provisions I do not find they are limited to licensees or persons required to be licensed. Further, the question occurs whether Congress may directly pro- hibit the conduct oi an insanitary cold-storage warehouse, without reference to interstate commerce or any other particular power of Congress. I assume that this bill is not intended to be confined to the war powers of Congress, because there is no limitation expressing that idea in it. It seems to be permanent legislation wholly. The bill is such that the man who has an insanitary cold-storage ware- house — and I do not mean to imply I am in favor of the operation of an insanitary cold-storage warehouse, but I am just discussing it from the legal standpoint — can not operate at all, because he can not get a license. No tax is imposed upon him at all and no attempt is made to tax him. Now, to carry out the idea that I suggested that there is a difference between that section and other sections as to persons who are affected by it, I will again recall the fact that section 2 is limited to " person, persons, or corporation who shall operate a cold-storage warehouse." Section 3 provides " that hereafter it shall be imlawful for any person, persons, or corporation engaged in the business of cold- storage warehousemen or ii). the business of refrigerating, or who own, operate, control, or lease any cold-storage or refrigerating plant within the United States, or any Territory of the United States, to receive, nor shall any person, persons, or corporation place therein any article of food unless said food or the package containing the same. is branded, stamped, or marked in some conspicuous place, upon the receipt thereof, with the day, month, and year when the same was received for storage or refrigerating " — showing the date of the receipt. It is also provided it shall be unlawful for any such person, persons, or corporation to receive any article of food which has been kept in cold-storage in any other country, unless the date of the receipt is marked or stamped thereon. The last three lines ir,i section 3 I do not quite understand and I am not able, therefore, to comment on them. They read, read in connection with what went before, " It shall be unlawful for any such person, persons, or corporation to receive any article of food that has been kept in cold-storage in any other country, unless at the time of such receipt such article offered is branded, stamped, or marked with the day, month, and year when it was placed in the cold-storage in such other country, or such person, persons, or cor- poration as shall have obtained the consent of the Departinent of Agriculture to receive such article of food." COLD-STORAGE LEGISLATION. 7 Now, in section 4, we find tliat it also is made unlawful for " any person, or persons, or corporation engaged in the business of cold- storage warehousemen, or in the business of refrigerating, or who own, operate, control, or lease any cold-storage or refrigerating plant, to permit any article of any kind whatsoever used for food now in the possession of any person, persons, or corporation now engaged in the business of cold-storage warehousemen, etc., without being branded as to the date of its receipt." In reading through the bill I notice a similarity between a number of the provisions and those of the New Jersey law. In some respects, however, it is different for the reason that the New Jersey law re- quires that foodstuffs received in cold storage shall be stamped with the date of the receipt and also with the date when taken out. This bill does not provide for the marking of the date when taken out. Then in section 5 we find it shall be unlawful for any person, per- sons, or corporation, and so on, to keep in storage for preservation or otherwise, any article of food a longer period than 10 calendar months, without the consent, as provided in the bill, of the Depart- ment of Agriculture or its duly authorized agents or officers, or except as therein otherwise provided. The limitation of 10 calendar months, I merelj^ call attention to, because the New York law, for example, has 12 months, and some other laws have 12 months, and it will raise the question, in my judgment, as to what limitation you want to place on products remaining in cold storage, if you are in favor of placing any limitation thereon. The CHAiEMAJf. Will you state the average time prescribed in the various laws? Mr. MoEEiLL. I am not prepared to say what the average time is. They vary. I think in New York there is an absolute limit of 12 months without any power to extend ; whereas in New Jersey, there is a limit of 12 months with power to extend if the food is in proper condition and fit for storage. The Chairman. Are the laws uniform as applied to all articles entering into cold storage ? Mr. MoEEiLL. No, sir. In this connection your question suggests to my mind for your particular thought the definition in the third line, section 1, page 1 : " The term ' food ' as used in this act shall include any article used for food, except liquid food." In other words, liqiiid food is not subject to the operation of ihis bill. In section 5, that I was just reading, you noticed that it says "shall not be kept in storage for preservation or otherwise for a longer period than 10 calendar months, without the consent, as herein provided, of the Department of Agriculture." Finding no provision for an extension of time by the department, I do not know what the intent is in that regard. There is a provision in section 9, however, that if the article of food is kept in storage for longer than the period prescribed by the act the person who has custody of it shall give notice to the owner of at least 20 days to remove the same, and shall sell within 30 days after the time limited for the keeping or preserv- ing thereof such foods, and pay over the proceeds to the owner. But the Department of Agriculture has nothing to do Avith that as this bill is framed. It is also provided in section 7 that it shall be unlawful for any person, persons, or corporation to mark, or caused to be marked, any 8 COLD-STORAGE LEGISLATION. food or container of food with a mark or marlis other than those, required by the act to be marked on such food or container; that it shall be unlawful for any person, persons, or corporation to change, or cause to be changed, any mark or marks on any food or container of food after such mark or marks have been placed thereon: Pro- vided, That nothing in this section shall apply to the marking of such food or container of food with the name and address of the owner thereof ." I do not suppose that it was the intention of the framer of this bill to accomplish what seems to be stated in its language, because ob- viously he would not wish to prevent the proper labeling with the name of the article and its ingredients and properties, and so on, that is now legitimate and in some cases required by law. I presume he wished to make it unlawful to place any marking on it subsequently so as to change the original marking. Mr. TiNCHER. Under the definition of " food," would eggs come under liquid or solid food? Is there any legal definition of that ■question? Mr. MoREiLL. I am not aware of that. I suppose the question might be raised if they were kept in bulk, out of the shells, as they are sometimes kept. Mr. TiNCHER. "What was your idea, Mr. Hutchinson, that it would regulate the storage of eggs under this bill, or would you classify them as liquid food? Mr. Hutchinson. That is the intention — to regulate them. That was the reason the time was limited to 10 months. Mr. TiNCHER. That was on account of the eggs ? Mr. YoTJNG. You mean to say they sometimes break the eggs and store them in bulk ? Mr. MoREiLii. Yes, sir; so I understand. They are kept frozen. Mr. Heflin. And they put a great quantity of them together. Mr. Marshall. Yes. Eggs may be cracked, and, of course, they would not keep, or they may be dirty, and if you wash the eggs they won't keep nearly so well. And if they are cracked, or for any other reason, they break them and keep them in a frozen state. That is quite an industry — frozen eggs. Mr. Young. Would that be a liquid or a solid food ? Mr. Marshall. They would be solid if they were frozen, sir. Mr. TiNCHER. That would be true if they were not liquid. Mr. Marshall. From what the assistant to the solicitor has said about the bill, I do not believe you will stick to the bill anyhow, so perhaps you will have to get some other terminology. I do not think I want to attempt to decide whether an egg is solid or liquid food, but I raise that question. Mr. Young. It is rather an important question. Mr. Marshall. It shows the necessity of dealing with it, and of course you will look out for that. Mr. Mokeill. Mr. Marshall tells me also there is some business of keeping in storage frozen cream which you may wish to consider. I do not know the facts about it. I again wish to repeat that I do not desire to criticize the substance of the bill at all, but am considering the way it is framed from a legal standpoint. COLD-STOEAGE LEGISLATION. 9 _ Section 8 contains exceptions. I have already mentioned sec- tion 9. Mr. Marshall. Since that question about eggs has been raised, this might as well go in here. The amount of frozen eggs in storage on July 1 was 16,000,000 pounds. That would be the equivalent, almost the equivalent, of 12.000.000 dozen eggs. The Chairman. Would they be considered liquid, frozen or broken eggs? Mr. Marshall. I should not want to attempt to say about that, but as to the importance of the industry there is quite a large in- dustry in frozen eggs. Mr. Heflin. Do you mean to say that they freeze the eggs like a block of ice ? Mr. Marshall. They put a great many eggs in cans and freeze them, and they put them in that form in cold storage for the reasons I have stated. Mr. Young. How do they go out commercially ? Mr. Marshall. They are used by bakers exclusively. Mr. Jacoway. How are they shipped ? Mr. Campbell. -They are shipped in cans of various sizes, from anything like 2 gallons up to 6 or possibly 8 gallons and some- times larger than that. And after they are frozen solid they may, of course, be shipped in refrigerator cars. If they do not, there would be a thawing and spoiling before arriving at destination. There is quite an industry in that class of eggs, because their physical condition will not permit their storage in the shells in a satisfactory fashion, and they are broken and placed in cans and are then shipped to the cities, largely to be used by the bakers in the cities. Mr. Morrh,l. Section 8 contains certain exceptions ; first, that it shall not be construed to prohibit the shipping, the consigning, or transport- ing of fresh food in properly refrigerated cars within the United States to points of destination. So it is quite apparent there is no attempt to regulate such transportation, even in interstate commerce. Sec- tion 8 provides further " nor when received, to prohibit the same being held in a cooling room for a period of 48 hours " nor " to prohibit the keeping of fresh food in ice boxes or refrigerators in retail stores while the same is offered or exposed for sale." Section 9 I have already mentioned. That provides for the dis- position of foods that shall be kept in storage for more than 10 months; that is to say, by sale by the custodian thereof. It also provides for the destruction or disposition of food that has been con- demned as unfit for food by the Department of Agriculture. Section 10 contains the general authority in the Department of Agriculture to inspect and supervise all places in the United States " now or hereafter used for cold-storage or refrigerating purposes " ; and incidentally provides the manner in which agents of the depart- ment shall act. It also provides that the purpose of such inspection shall be to determine whether or not the provisions of this act or any other act relating to articles of food are being complied with. It provides " The Department of Agriculture is hereby granted power and authority to adopt such rules and regulations as may be eessential to the proper protection of the consumer of the com- modities kept and preserved in such place or places." 10 COLD-STORAGE LEGISLATIOJiT. Section 11 provides for quarterly reports by cold-storage ware- housemen to the Department of Agriculture containing certain infor- mation as to food in storage. Section 12 is an appropriation. Section 13 contains provision for the punishment of violations of th'e act. Section 15 provides for the repeal of all acts and parts of acts inconsistent with this act. I have gone through, in a very hasty fashion, an analysis of the provisions of the act, in order to make it apparent to you that regulation seems to be the principal feature of the bill and is not tied up with the operation of the license which is required under section 2. None of these provisions directly controls interstate or foreign commerce. There is one exception, or at least one apparent exception, and that is the one which provides it shall be unlawful for any person to receive any article of food which has been brought into this country from any foreign country without marking the date of its receipt in storage. And, as I said before, the legislation is permanent in its character, and it therefore raises the serious question in our minds whether it is a revenue measure in all its parts, so as to be construed as valid under the taxing power. And if it is not a revenue measure, then we are unable to find the source of its authority from any of its provisions. We take the view that to be upheld as a revenue measure its pro- visions must be incidental to the raising of revenue — that is, the col- lection of a tax imposed — and, as a matter of fact, perhaps the bill could be so framed as to accomplish many, if not all, of the essen- tial objects under the taxing power. We also take the view, regard- less of the taxing power or the interstate commerce power, that Congress, through any instrumentality it selects, has the power to get information which will be valuable to it in legislating or direct- ing the performance of duties under legislation; so that it could require cold-storage warehouses throughout the United States to submit reports as to the amount of food in storage and certain inci- dental facts, and that power is already vested in the Department of Agriculture under what is commonly known as the food survey act. And it was under that power the information was recently obtained which formed the basis of the Federal Trade Commission's report and the President's message. I have not thought it wise for me to enter into any discussion of exactly what we might do under the powers of Congress until the committee has determined for itself what its policy should be as to legislation. I might discuss all these possibilities, but that would not be of interest to you. The Chairman. Have you any suggestions from the department? Has the department reached any conclusion as to how the matter should be regulated? Mr. Morrill. The department has not reached any definite con- clusion as to the precise method of regulating it. We have con- sidered two ways, the interstate commerce power and the taxing power. But, as I said before, the department has not decided the exact method; it has decided that it would like to see the subject regulated in some way, under whatever power the Congress has available. COLD-STORAGE LEGISLATION. 11 The Chairman. Have you considered regulation by the licensing method ? Mr. MoKRiLL. We have considered, as I said before, two ways — the taxing power and tlie interstate commerce power. Tlie question arises in my mind, in using tlie interstate commerce power, whether you would obtain the complete control of the subject you wish to regulate, for the reason it is my impression that many of the cold- storage warehouses deal with the product when it is not in the course of transportation; and, as a matter of fact, that they are frequently at destination, at the point where they are nearest to the consumer, and not at the shipping point ; and that if you under- took to regulate the transportation in interstate commerce of cold- storage products you might not reach a very important part of the cold-storage industry. The Chairman. Your contention is — and I think we all agree- that the power of Congress to regulate is limited to interstate ship- ments, except by invoking the taxing power. Mr. Morrill. To interstate shipments, except to the extent that tho object may be accomplished by the operation of the taxing power, substantially. The Chairman. You hold that the bill would be unconstitutional applied to cold-storage warehouses, they not being in interstat(> commerce ? Mr. Morrill. As now framed T thing it is unconstitutional in most of its regulatory provisions. The Chairman. That licensing can not be made compulsory, but that it would have. to be by voluntary acceptance? Mr. Morrill. Yes; unless you imposed a tax on the business. The Chairman. That is a taxing provision? Mr. Morrill. Yes. And I take it for granted that there is a feel- ing in Congress of some disinclination toward using the taxing power. The Chairjman. But j'our contention is that it is not within the power of Congress to license the cold-storage houses operating solely within a State except by invoking the taxing power. Mr. Morrill. If the power sought to be exercised goes beyond the collection of revenue, then I Avould say yes. In other words, we can impose a tax on the conduct of the business of cold-storage ware- housing even within a State. The Chairman. By the taxing power? Mr. Morrill. But we are not confined to that in this liill. The licensing system could only be exercised as incidental to the taxing power or interstate-commerce power or some other minor power of Congress in this connection. The Chairman. That would require the taxing, as is done under the oleomargarine act? Mr. Morrill. Yes; the oleomargarine statute is an illustration of what Congress may do. They imposed a tax of 10 cents a pound on oleomargarine colored in imitation of butter and a quarter of a cent a pound on oleomargarine not so colored. Of course, the effect of it is quite apparent, but it was not written into the face of the statute. All there was in the statute was the tax. 12 COLD-STORAGE I^GISLATION. The Chairman. It can be regulated, as under the meat-inspection act, which requires meat to be marked " inspected and passed ' before shipped in interstate commerce. Mr. Morrill. Yes; it can not be shipped in interstate commerce unless the establishment in which it is prepared and the food itself has been inspected and passed. The Chairman. You speak of the New Jersey law — a State law. Mr. Morrill. Yes ; that is a State law. The Chairman. A State, of course, would have power to regulate within the State? ■ Mr. Morrill. Yes, sir. The Chairman. Congress would have the power to regulate only as to articles entering iato interstate commerce? Mr. Morrill. Yes. I have the New Jersey law here in case anyone wishes to ask any question about it. Mr. Anderson. I wonder if we could not ha^e that New Jersey law put in the record. Is it very long? Mr. Morrill. It is about three or four printed pages. Mr. Young. I think it ought to go in the record. Mr. Morrill. There are six printed pages. The Chairman. What is the desire of the committee; shall it be printed ? Mr. McLaughlin of Michigan. Would having that law alone printed — the witness speaks of having examined other laws, or he speaks of the provisions of laws of other States, and wouldn't it be well to have him collect these different laws or portions of them and have them printed separately or all together? Mr. Morrill. I am at the service of the committee — whatever you wish done. The Chairman. Can that be done without a great deal of incon- venience ? Mr. Morrill. It will take a little time to go through all the statutes of all the States and get them together. Mr. Young. Have all the States regulatory statutes? Mr. Morrill. As to cold storage ? Mr. Young. On cold-storage products. Mr. Morrill. No ; they have not. Mr. McLaughlin of Nebraska. Do you know how many of them have such statutes ? Mr. Morrill. I am not prepared to say offhand. Mr. Tin CHER. There are very few, aren't there? Mr. Morrill. A great majority of the States have what is known as a warehouse receipts law, which would include cold storage, but not specifically. I take it that less than half of the States have un- dertaken to legulate the cold-storage business, although I am not prepared to answer the question definitely. Mr. Heelin. I think it would be very helpful if he could make a digest of the laws that have been passed on the subject and print it in a separate pamphlet. Mr. TiNCHER. I understand your idea is that in passing a law of this kind there are only two reasons for our having any authority to pass such a law — one would be the taxing power and the other the interstate commerce power. COLD-STOEAGE LEGISLATION. 13 Mr. MoEEiLL. I am speaking of the broader powers of Congress; there may be other powers, but they would not be nearly as broad as these. Mr. TiNCHEE. Under the food-survey law we can require the stamping of a mark on the goods. Mr. MoEEiLL. You are speaking now as a war measure. Mr. TiNCHEB. Couldn't we require a report of the goods in cold storage ? Mr. MoEEiLL. Yes, sir; it is our opinion that Congress can re- quire submission of reports of foods in cold storage, without regard to the interstate commerce power and the taxing power particularly. Mr. TiNCHEE. Have you considered whether we have any au- thority under the public-health provision to require the disposition of those goods at a certain time ? Mr. MoEBiLL. The public health could only be taken into consid- eration in connection with the powers expressly granted to Congress. The public health has been taken into consideration in certain regu- lations of interstate commerce. Mr. Hutchinson. Do you know how many cold-storage warehouses there are in the United States ? Mr. MoEEiLL. Mr. Marshall, who will follow me, will be able to answer your question. , Mr. TiNCHEE. Had the President any advice from your depart- ment before he wrote this message, in which he advised us to enact laws similar to the laws of New Jersey ? Mr. MoREiLL. I do not Imow anything about that; I could not answer your question. I really have no informaion which would enable me to answer your question at all. The Chairman. What have you to say about authorizing the Secretary to prescribe the method of keeping books and what reports shall be made? Is this bill specific in that regard? Mr. MoEEiLii. This bill covers those phases requiring the cold- storage warehouse to keep records and to make reports quarterly. The Chairman. Not how the books shall be kept, though ? Mr. MoREiLL. Not the method of keeping the books. The only object to be accomplished The Chairman. Should the Secretary be given the power to pre- scribe the method? Mr. MoERiLL. That is a question of policy. I do not quite see why the method should be prescribed, if the books are so kept as to produce the information. The Chairman. It would be necessary to do that in order to verify the report? Mr. MoKEiLL. It might be; it might be necessary to have some uniformity. The Chairman. It is usually done. Mr. Morrill. Yes. The Chairman. How about the inspection of plants? What is proposed in that respect ? Mr. Morrill. This bill provides for the inspection of plants ; but, as I said before, I do not quite see its relevancy in this bill to tb.e taxing power, and it is certainly not tied up with the interstate- commerce power. 14 OOLD-STOKAGE LEGISLATION. The Chaikman. How about the collection of samples ? Mr. Morrill. The collection of samples, it aeems to me, could only be provided for, generally speaking, under the interstate-commerce power. The Chairman. That is not provided in this bill ? Mr. Morrill. That is not provided for in this bill. The Chairman. Should that be provided for? Mr. Morrill. I am not prepared to say. What do you think,. Mr. Campbell? The Chairman. I take it it is necessary to collect samples in order to ascertain the condition of products in cold storage. Mr. Campbell. I think any control contemplated, that the measure or the bill itself should make provision for the collecting of samples. We are collecting samples now of products in cold storage to deter- mine whether the food and drugs act is violated. The Chairman. Should the Secretary or his agents be authorized to administer oaths, which is the usual provision carried in these acts? Mr. MoKEiLL. I think in some cases it would be desirable that he have the power, because, in instituting prosecutions for the violation of the food and drugs act the United States district attorneys require that some one else's oath be presented to them. It seems, generally speaking, they do not wish to make their own oaths upon the basis of the information the Department of Agriculture furnishes. While you might answer that question by saying they could use notaries and other officers with seals, sometimes it is not convenient to do so. Mr. Jacoway. If I get your legal opinion, it is this, that this bill as now drawn is unconstitutional. Mr. Morrill. In most of the regulatory provisions; yes, sir. Mr. Jacoway. And you are doubtful if we can make it constitu- tional by bringing in the commerce clause ? Mr. Morrill. That is, and fully accomplish the purposes you have in view. Mr. Jacowat. And the only way we can make it constitutional is to bring it under the taxing power under the Constitution? Mr. Morrill. I think, most, if not all, you wish to accomplish could be done under the -taxing power. The Chairman. In your opinion, does this bill give specific au- thority to make and promulgate regulations? Mr. Morrill. This bill does give specific authority. The Chairman. All that is required? Mr. Morrill. Yes, sir. Mr. EiDDicK. Under this bill, could the Department of Agriculture employ as many agents as it desired and pay them whatever amount thev thought proper? Mr. Morrill. It can employ as many agents as it desires, subject to the civil-serA'ice law, which is provided for here, and it also pro- vides that preference shall be given to those formerly in the military and naval service. In addition to that, we have a general statute which limits the salary to $4,500 for technical men. The Chairman. I take it that the bill should be cited bv a short title? Mr. Morrill. It would be helpful to have a short title. UOLD-STOEAGE LEGISLATION. 15 The Chaieman. And it should also provide when it shall take effect? Mr. Morrill. Yes, sir ; and that date should not be immediately. Mr. McLaughlin of Michigan. The several State laws that you speali of, if executed, would relate to the control of local storehouses, if they may be called that, and to products in intrastate business ? Mr. Morrill. Yes, sir. Mr. McLaughlin of Michigan. If all the States had those laws and they were properly executed, it would only be necessary for the Federal Government to take up the matter of the large houses and the interstate business, would it not? Mr. Morrill. Yes, sir. It is my understanding that the reason for some of the arguments in favor of Federal legislation of some kind, is that the State laws are not uniform. In some cases they may be evaded by transferring the product across the State line. I am merely answering your question. It tends to support your statement, of rourse. Mr. McLaughlin of Michigan. If that is done, as you suggest, then they would become interstate warehouses, and it would be inter- state business reached by the Federal law, wouldn't it ? Mr. Morrill. I do not understand the warehouse itself has any- thing to do with the storage in all cases. It is often the case that the person who puts the stuff in the warehouse does that. In other words, in many cases the warehouse is not the owner of the goods. Mr. Heflix. Is the department working on any specific plan? Mr. Morrill. We have been trying to work out a way — to frame a bill which we could present to Congress. Mr. Heflin. That is what I want to Icnow. It is the purpose of the department to submit its plan to us ? Mr. Morrill. I do not know whether I am authorized to say that. I do not know the Secretary's attitude, but we have been working on such a bill, if the Secretary will approve it. Mr. McLaughlin of Michigan. I wish to ask you one other ques- tion: Does the department think it advisable to have this limita- tion in this bill of 10 months apply to all food products alike, inas- much as it is known, and accepted, I believe, that some kinds of food products deteriorate in storage while others do not, and that there are different lengths of time that different products can safely be kept in cold storage? Mr. Morrill. It is a fact, as you say, that there are different lengths of time. Some products probably should not be kept in storage even 10 months. In fact, Mr. Campbell, I think, will give you information which shows that three months is as long as some products should be kept in storage, whereas other products may be kept twice 10 months, and even longer. Therefore, so far as the length of storage of all products is concerned, any precise period would not suit the limit of proper storage for all products. Now, there is a difference of opinion among those with whom I have dis- cussed the question as to what should be done about a limitation. _ In the minds of some, there is a feeling that there should be a limita- tion, based upon the period of production ; that is to say Mr. McLaughlin of Michigan (interposing). To take care of seasonal production? 16 COLD-STOEAGE LEGISLATION. Mr. MoEEiLL. To take care of seasonal production. If you will remember, Congress, in the hoarding provision of the food control act announced a policy as to storage, wherein it held that hoarding should be deemed to include carrying over beyond the season of scant production or no production; the idea being that it should not ex- tend beyond that. So that this question would arise: If you take the position that storage might continue as long as the products were fit for food, you would, in many cases, enable the holder to go over into the fol- lowing season and carry, in some cases, perhaps, an immense stock; whatever the reasons might be it might be an immense stock, which would have a very important effect on the producers, in that they might be discouraged in their next season's production. Mr. McLaughlin of Michigan. It might be well, then, to have a minimum and a maximum time, if it was thought advisable at all to go into that question, having in mind the fact that different prod- ucts keep differently in cold storage? Mr. MoKEiLL. I do not know just what you have in mind by a " minimum." Mr. McLaughlin of Michigan. "Well, perhaps that is not the proper expression. Perhaps it might be well to name the length of time that some of these perishable products might be kept, but not let any of them be kept longer than a given time. Mr. MoREiLL. I can see that it might be necessary to give consid- eration to that. Of course, I might answer you probably in this way : That, so far as interstate commerce was concerned, if they were not wholesome or fit for food, they could not be shipped ; and I suppose most if not all of the States have legislation which would prevent their disposition intrastate if they were not wholesome and fit for food. I might call attention also to a question which has arisen in my mind, and that is whether you might not take into consideration the question of palatability of food, aside from whether it is wholesome and fit for food or not. In other words, an article might not be pala- table, and yet might not do harm in the sense of not being wholesome. The Chairman. Are you through, Mr. McLaughlin? Have you any questions, Mr. Anderson ? Mr. Anderson. As I understand you, the pure-food law would prohibit transportation in interstate commerce of any foods that are decomposed and unfit for human consumption ? Mr. MoEEiLL. Yes, sir. ' Mr. Andeeson. So that in this bill we would not have to deal with the period of cold storage from the standpoint of wholesomeness or palatability is concerned, would we? Mr. MoBEiLL. Not so far as interstate commerce is concerned. Mr. Anderson. Yes. I take it that the purpose of legislation of this particular character does not go to the question of wholesome- ness ; it goes to the question of retaining products in cold storage and thereby keeping them off the market. Mr. MoEEiLL. Yes, sir ; it seems to me that that :s the spirit behind the bill. That is not the spirit behind this particular bill, but behind proposed cold-storage legislation. COLD-STORAGE LEGISLATION. 17 Mr. Anderson. Well, if that is the purpose, a general limitation of 10 months applied to all foods might not effectuate the purpose all the way through ? Mr. MoEEiLL. It might not. As a matter of fact, 12 months from the very first production would be the maximum ; whereas from the production of the last article less than 10 months might elapse to the production of the first article the next season. Mr. Anderson. That is. you are speaking of within the production season? Mr. Morrill. Yes, sir. Mr. Anderson. Or the consumption season, as the case may be. I take it that, from the legal standpoint, we might deal with the ques- tion either on the theory that the cold-storage plant is an instrumen- tality of commerce, or that the products in the warehouse had been or were destined to be in interstate commerce ; or that we might deal with it from the standpoint of the taxing power of the Federal Govern- ment ? Has there been any decision, so far as you know, as to whether or not a cold-storage plant in which products are stored which have moved in interstate commerce, or are destined for Interstate commerce, to use a term used by the President, is an instrumentality of com- merce? Mr. Morrill. I am not prepared to answer that question offhand. I have in mind a grain case which arose at Chicago, 111., where grain was shipped from some interior point in the United States to Chi- cago, to a person who was handling it there for the purpose of ship- ping it elsewhere, and he placed it in his warehouse in Chicago, holding it there for grading, cleaning, treating, and so on, with the intention of selling it and shipping it subsequently to other points in the United States, or for export ; and it was shown and admitted, as a matter of fact, that all of his business was done in that way. And the grain while it was in that warehouse was held subject to the taxing power of the State of Illinois, on the ground that it had come to rest in Illinois, although the court stated that it did not decide the question whether the grain was then in interstate commerce. Mr. Jacowat. I will ask you if Judge Landis did not hold affirma- tively on the question that Mr. Anderson has put to you ? Mr. Morrill. He may have done so. Mr. Jacowat. I think he did. Mr. Morrill. I can not answer definitely as to that. Mr. Anderson. I would like to ask you this question: as to whether or not, in your judgment, it would be within the power of Congress to prohibit the movement in interstate commerce of goods which had been in storage, unless, during the period of such storage, the conditions laid down in the law were complied with? Mr. Morrill. Well, I have in mind the child labor decision, which imposes an obstacle to legislation as broad as you state in your question, in that the Child labor statute as originally framed pro- hibited the shipment in interstate commerce of products of a fac- tory in which child labor had been employed under certain condi- tions, and that was held to be unconstitutional; and Congress has now legislated under the taxing power ; but that legislation has not yet been passed upon by the Supreme Court. 137690—19 2 18 COLD-STOKAGE LEGISLATION. Mr. Anderson. Of course, it seems to me that the difficulty of legislating against the products themselves in interstate commerce is that they may or may not have been in interstate commerce, and there is a very great question, even if they have been in interstate commerce, whether they are in interstate commerce when they are in storage. And aside from that, there is a difficulty, as I see it, of legislating against them, because the ownership is an ownership by persons other than the warehouse keeper. Mr. MoERiLL. Quite frequently, yes, sir. • Mr. Anderson. Do you think it would be feasible to impose a Federal tax upon products held in warehouses — cold-storage — a pro- gressive tax to apply after they have been in the storage warehouse a certain length of time ? Mr. Morrill. I think that that could legally be done. I see no reason why you could not legally impose a tax with reference to the period of storage. Mr. Anderson. Of course, if it could legally be done, the next question is whether the imposition of the tax would have the result of forcing the products out of storage, or would, under other con- ditions, have simply the result of adding the tax to the price the consumers paid? Mr. Morrill. You would have two ways of dealing with it: you could put on a tax that you know would force it out of storage, or you could put on a graduated tax, which would be merely persua- sive. Mr. Anderson. Just one more question. I want to call your attention to section 6, to which you refer. Do you think that that section would prevent the re-storage of articles which have been in storage once before? For instance, suppose you have a shipment of beef in storage at Chicago; that shipment of beef is shipped to Boston for sale, would section 6 of the bill (H. E.. 7970) prohibit the holding of that beef in storage for any length of time in Boston? Mr. Morrill. "I think that is the meaning of the language, subject to the exception in section 8. Mr. YotTNG. With regard to the taxing" power, under which you say you think you could have a bill framed that would control the situation, I believe we have adopted that system in two or three different cases, one being the oleomargarine tax, another the State bank-note tax, and the other the phosphorus-match tax. Mr. Morrill. The phosphorus-match statute, however, has not been passed upon by the courts. It is, of course, a precedent from the legislative standpoint. Mr. ToTJNG. It is, however, a very far-reaching power, which, if abused, would destroy any industry, would it not ? Mr. Morrill. Yes, sir; in the case of the phosphorus-match in- dustry Mr. Young (interposing). It put them out of business? Mr. Morrill. It was intended to do that, and apparently it did it. Mr. Young. Yes. So that if Congress should undertake to invade this field of cold storage with this power of taxation, and if the farmers of the country should determine to have a cooperative con- cern by which they could have cold storage for certain of their products you could absolutely destroy the cooperation of those COLD-STOEAGE LEGISKtiTION. 19 farmers and forco their products into the markets by the use of this tax, could you not? Mr. MoKEiLL. Assuming that you are not raising any question of classification, you could ; yes. Mr. Young. It is a very dangerous power to be invoked, is it not? Mr. MoBEiLL. The taxing power is almost an unlimited power; there are only one or two exceptions Mr. Young (interposing). I only want to express my dissent; I hope Congress will not attempt to frame a bill using the taxing power to bring about that result, because I see a very far-reaching effect — which could destroy any industry of any section of the country Mr. Morrill, (interposing). There was an illustration of that, as you say, in the State bank-note case. Mr. Young. Yes. Mr. Morrill. And the oleomargarine case, and there have been different statutory precedents since that time. The chairman asked me about the use of licenses as a means of regulating any industry. I should like to read three paragraphs from the license-tax cases, decided by the United States Supreme Court (72 U. S., 462, 470) : It is not doubted that where Congress possesses constitutional power to regulate trade or intercourse it may regulate by means of licenses, as well as in other modes, and in case of such regulation a license will give to the licensee authority to do whatever is authorized by its terms. Thus Congress, having power to regulate commerce with foreign nations and among the several States and with the Indian tribes, may without doubt provide for granting coasting licenses, licenses to pilots, licenses to trade with the Indians, and any other licenses necessary or proper for the exercise of that great and extensive power, and the same observation is applicable to every other power of Congress to the exercise of which the granting of licenses may be incident. All such licenses confer authority and give rights to the licensee. But very difCerent considerations apply to the internal commerce or domes- tic trade of the States. Over this commerce and trade Congress has no power of regulation nor any direct control. This power belongs exclusively to the States. No interference by Congress with the business c>i: citizens transacted within a State is warranted by the Constitution, except such as is strictly incidental to the exercise of powers clearly granted to the legislature. The power to authorize a business within a State is plainly repugnant to the exclusive power of the State over the same subject. Mr. jVnderson. That is to say, the license itself is not a power; it is merely a method? Mv. MoRRirx. Merely a method; j'es, sir. The CiTAiR:\rAN. A method of regulating. Mr. Heflin. Mr. Chairman, did we dispose of that matter of making up a digest of the various cold-storage laws ? The Chairman. Mr. Morrill, will you furnish the committee with a digest of the cold-storage laws ? Mr. Morrill. Do I understand that it is the wish of the commit- tee to have a compilation of the cold-storage laws of all the States? The Chaiicmax. Would it inconvenience you much to supply that? Mr. Morrill. I will do it anyhow, whether it inconveniences me or not. The Chairman. I think it is the sense of the committee that some such digest should be supplied, if practicable. 20 COLD-STOBAGE LEGISLATION. Mr. Lee. Conld you give the laws in full, or merely a digest of them? Mr. MoKRiLL. Do you desire to have them in full, so that you could make your owii examination of the various laws; or do you wish to have simply a digest? Mr. McLaughlin of Michigan. You might get up whatever you think will be helpful to us. I do not think it will be necessary to quote the law of each State in full. Mr. Heflin. Yes; we will leave that with you. Compile what you think would be of advantage to us. Mr. MoKRiLL. All right; I will furnish it in typewritten form, so that you can make such use of it as you wish. The Chairman. If you will do that the committee will determine whether to have it included in the printed record of the hearings. Mr. Morrill. I made a reference a few minutes ago to the hoard ing provision of the food-control act. It is as follows : Sec. 6. That any person who willfully hoards any necessaries shall upon conviction thereof be fined not exceeding $5 000 or be imprisoned for not more than two years, or both. Necessaries shall be deemed to be hoarded within the meaning of this act when either (a) held, contracted for, or arranged for by any person In a quantity in excess of his reasonable requirements for use or consumption by himself and dependents for a reasonable time; (b) held, contracted for, or arranged for by any manufacturer, wholesaler, retailer, or other dealer In a quantity in excess of the reasonable requirements of his business for use or sale by him for a reasonable time, or reasonably required to furnish necessaries produced in surplus quantities seasonally throughout the period of scant or no production; or (c) withheld, whether by possession or under any contract or arrangement, from the market by any person for the purpose of unreasonably increasing or diminishing the price. Mr. Anderson. Let me ask you if that does not do everything that would be accomplished by this bill? Mr. Morrill. Well, it does to the extent that it may be considered that a person is hoarding beyond his necessities; but this bill dis- regards a man's necessities; it attempts to force the products out, regardless of whether he needs them or not. ■ The Chairman. You would suggest a drastic measure like that? That is, that anybod}' who might have a few dozen eggs beyond what his necessities required — you would not require such a person to pay a $50 license tax ? Mr. Morrill. No, sir. And, as a matter of fact, the food control act itself made certain exceptions. Mr. McLaughlin of Michigan. Well, that drastic provision was ' enacted under the war power ? Mr. Morrill. Yes, sir. Mr. McLaughlin of Michigan. In your opinion, it could not be made permanent, even if it seemed advisable to make it so? Mr. Morrill. It could not be made permanent in the same form in which it is in the food control act. The Chairman. You spoke a while ago of the meat inspection act. Mr. Morrill. Yes, sir. The Chairman. That requires the marking, " Inspected and passed " of meats before they can be received in interstate commerce? Mr. Morrill. Yes, sir. The Chairman. In your opinion, would an act which required the marking of the date when the product was received in the cold- storage plant be constitutional ? COLD-STOBAGE LEGISLATION. 21 Mr. MoEEiLL. It seems to me that, as a regulation of interstate commerce, you might prohibit the shipment in interstate commerce of products, which have been kept in cold storage, unless the period of storage is designated, and the fact that they are cold-storage products. Mr. Hutchinson. As you know, the Ohio law limits the period to six months. Mr. MoERiLL. No ; I did not know as to that. Mr. Hutchinson. Suppose a man puts a food product in cold storage in Ohio for six months, and then ships it to New Jersey and puts it in cold storage there, is there any law to prevent that ? Mr. MoEKiLL. Not that I know of. Mr. Hutchinson. Can there be any law to prevent that. Mr. Morrill. You are speaking now about the laws of the State of Ohio, and not the Federal Government ? Mr. Hutchinson. Yes. Mr. MoEEiLL. I do not believe so. Mr. Hutchinson. That is what we want to do, to stop food products from going from one warehouse to another. Mr. MoEEiLL. Yes, sir. Mr. Hutchinson. And there is no way to provide for that except tinder the taxing power, is there ? Mr. McLaughlin of Michigan. Well, if it goes into interstate com- merce, there is. Mr. MoREiLL. Well, you are dealing now with interstate com- merce, and you have power under the interstate commerce clause of the constitution. The only question I raised is, whether you have power to reach the subject as extensively as you might wish; you might reach specific things under the interstate commerce power. Mr. RiDDicK, You say the department has no definite plan to offer at this time ? Mr. MoEEiLL. Not at this time. Mr. EiDDiCK. Have you an opinion as to whether they will have one to offer or not? Mr. MoREiLL. I am not prepared to say. As I said before, we have been working on it, trying to frame up a bill ; and if we succeed in framing up a bill, it will be submitted to the Secretary of Agricul- ture, and it will rest with him as to whether or not he will approve it. Mr. EiDDicK. I am curious to know whether you mean you have been working on it since the President's message or before the Presi- dent's message ? Mr. MoEEiLL. Before the President's message; we did not know anything about the President's message at that time. The Chaieman. Are there any further questions ? If not, we will excuse you, Mr. Morrill. Mr. Heflin. Mr. Chairman, before Mr. Morrill leaves we might request him to submit to the committee any suggestions that he might have to offer in the framing of a bill which he thinks would be of advantage to us. Mr. MoREiLL. May I request to be excused from doing that ? I am merely a subordinate in the Department of Agriculture and I would prefer not to express my own personal opinions, when they might conflict with those of the Secretary. 22 COLD-STOEAGE LEGTSLATIOK. Tlie CiJAiKMAK. For the information of the committee, 1 desire to state that I suggested to the Secretary of Agriculture that we would be pleased to have an^ suggestions he might desire to make. Mr. MoBRiLL. Yes, sir. The Chairman. We are very grateful to you, Mr. Morrill. We Avill now hear from Mr. Campbell, the Assistant Chief of the Bureau of Chemistry. STATEMENT OF MR. WAITER G. CAMPBELI, ASSISTANT CHIEF BUREAU OF CHEMISTRY, DEPARTMENT OF AGRICULTURE. Mr. Campbell. Mr. Chairman, I do not know whether there is anything that the Bureau of Chemistry has done that would be of advantage to you in the consideration of this or any other bill that may come up. The Bureau of Chemistry, as you know, is charged with the en- forcement of the food and drugs act, and besides that is carrying on certain special investigational work. In both of these respects we have given some consideration to the effect that storage has on certain products; the bureau has issued some publications on that subject. We have found that many extremely perishable products, if pre- pared with scrupulous care and prepared with a view of having them kept in storage, can be kept in storage for a considerable time with- out appreciable deterioration. We have studied eggs and the meth- ods employed in the handling of them, and have found that when care is exercised in the selection of the quality of eggs, and when they have been placed immediately in cold storage, it is possible to keep those eggs in cold storage at a sufficiently low temperature for a period of 10 or 11 months without noticeable loss in bad eggs. In other words, the grading that would take place then of the eggs by the methods available to the dealers would not condemn any material quantity of those eggs. If the eggs had not been properly prepared or had not been prop- erly selected, of course, the length of lime during which they could be kept in storage would be very much less ; and it would be in pro- portion to the degree of care exercised in the selection and prepara- tion of the egg at the time it is placed in storage. We have also studied the matter of storage of fish, the methods of preparing them, and have found that, under the best care that can be exercised in the preparation of them, where the fish have been glazed and frozen, it is possible to keep them in storage very much longer than it would be profitable to do without any marked chemical change in the fish. We have observed some that have been kept for a period of 27 months and have been unable, even at the end of that time, to detect anything chemically that indicated deterioration. Mr. McLaughlin. What about the palatability ? JNIr. Campbell. Well, that is another thing. " Of course, there is going to be nothing — I take it that that can be said generally — ^that Avould be as palatable after it has been kept in cold storage for a certain period of time as it was when it was fresh. With regard to poultry, we have found that poultry can be kept for a period of two or three months without very marked deteriora- COLD-STOBAGE LEGISLATION. 23 lion ; but nexertheless, the palatabilitj' is affected. No one, I believe, \\\\l assert that storage of poultry for any period of time is going to improve it in any waj'; but as a conservation measure it is justified. Our concern, of course, in enforcing the food and drugs act is to prevent the marketing of any product entering interstate commerce that is adulterated ; one of the provisions in the section that defines adulteration says that if a product consists, in whole or in part, of filthy, putrid, or decomposed material, it is adulterated. And of course we have been interested in this study to determine whether or not products of various classes, after they have been taken out of storage and shipped in interstate commerce, were in contravention of the terms of that law. Mr. Akdeuson. May T ask you a question to clear that up for the record ? Mr. Campbell. Yes. Mr. Anderson. Does the pure food law go so far as to prohibit the movement in interstate commerce of foods from which an essen- tial food value has been subtracted? Ml'. Campbell. No; the food and drugs act does not deal with that, in the sense that there may have been a subtraction due to natural consequences — like storage. If there has been a removal of any part of it, or if there has been an abstraction of any of the es- sential ingredients of the product, that would come within the pure food law : for instance, in the sale of milk, where some of its food value has been removed by skimming. But that is more in the line of physical action than in the sense of loss or abstraction due to de- t'^rioration. So far as the time feature in any legislation is concerned, it seems to me that the whole question is one of economics and not one of the fitness or the unfitness of food ; because if a food product is kept in storage for 10 days or two weeks, and that period of storage, be- cause of the character of the article at the time it was put in storage, was such as to bring about decomposition or unfitness for food pur- poses, the Federal pure food law would prohibit its shipment inter- state, and the State laws — and every State, by the way, has a pure food law — would handle the matter so far as local traffic is con- cerned. Mr. AxDERsox. Has your experience been that foods are carried in storage from season to season ? Mr. Campbell. We have not studied that from that point of view. We have not concerned ourselves at all with the length of time that food has been stored, except as that might be an index to whether there is an adulterated condition in the product. The Bureau of Markets is prepared to answer that question, I suppose. Mr. Maeshx\ll. I can answer that when I appear before the com- mittee. Mr. Yorxc. The question involved here is, not so much whether or not this or that food product is a healthy food after having been kept in cold storage for a certain length of time; but the question confronting this committee, and confronting the country, now is to reach some kind of conclusion and draft some law, if we can, that will prohibit these pieces of machinery from being used for the pur- pose of withholding quantities of food from the public when the 24 OOLD-STOKAGB LEGISLATION. public needs that food; to prevent these great organizations from using these storage facilities to inflate prices at their will. Mr. Campbell. You are quite right; your concern is economic. Mr. Young. Yes. ;Mr. Campbell. And I only wish to make a statement of the char- acter that I have made in regard to our interest at this time, because virtually all of the State laws, and these proposed Federal bills that I have seen, provide for a time period. Of course, that time is in- dicated for economic purposes, and not as determining the fitness or the unfitness of the food that might be stored. Mr. McLaughlin of Nebraska. "With reference to the time that food may be kept in storage without deterioration, you spoke a while ago of eggs. Is it not a fact that eggs, for example, produced in the month of April, and properly put in cold storage, will be as good or better after 11 or 12 months than eggs that might even be pro- duced in September or October ? Mr. Campbell. That has been found to be actually the case; and the reason for it is this : The eggs that are produced in the spring, at a time when the weather is cool, are not ordinarily subjected to the deteriorating effects that come from high temperature. They are put in storage then, and after remaining in storage for several months, they will be found to be in a better condition than September eggs, for instance, or eggs stored in August, when the heat is very much greater — -if those eggs stored in the fall are delayed at all in their movement from the producer to storage. Mr. McLaughlin of Nebraska. There is one further question along that line: That being the case, is it not going to be difficult for us to determine any general time for which that product, for ip!3tance, can be safely kept in cold storage? Mr. Campbell. If your purpose in indicating that time is to be based upon the character of the product, its fitness or unfitness for food, it certainly is going to be difficult. But if it is to be based upon economic reasons altogether, of course, it would not be. Mr. Anderson. Well, of course, clearly Congress would not want to authorize a period of storage which was longer than the period for which the food could be kept without variation ? Mr. Campbell. No. Mr. Anderson. Has the Bureau of Chemistry made any determi- nation of that question with respect to various foods? Mr. Campbell. It is impossible, I take it, Mr. Anderson, to make that determination so far as it will apply to all classes of foods. It depends altogether, or very largely, upon the care that was taken and the character of the product at the time that it was prepared for storage as to whether it can be kept 1 or 2 months, or 12, or 24, or 28 months; it would be difficult to indicate any particular time, even with respect to any particular product, beyond which it could be said to be unfit for food and within which it could be said to be all right. We have found, as I have indicated, that with the exercise of care it has been possible to put fish in cold storage and keep them for 27 months, without any deterioration that could be detected chemi- cally. But that would be unprofitable, perhaps, in the first place, to keep them in storage that long. COLD-STOEAGE LEGISLATION. 25 It is possible to keep eggs 10 or 11 months, and not find any losses, from the standpoint of market consideration, at the end of that period. Any bill that indicates a period of 10 or 11 months, of course, con- templates, as I understand it, always that if the food is kept in stor- age for that length of time, at the expiration of that period it must be fit for food ; because the existence of all food la■v^'s. both Federal and State, makes it a pretty precarious matter now for any one to attempt to withdraw from storage any food products that have deteriorated and to put them on the market. Mr. Jacoway. Can you state what it costs to keep a dozen eggs in cold storage? Mr. Campbell. I have not that information. Perhaps Mr. Mar- shall can give it to you. We have not considered the cold-storage problem from that standpoint. Mr. McLaughlin of Michigan. In line with your work of pre- venting products that have deteriorated getting on the market, has it come to your knowledge that large quantities of food have been destroyed because they were found to have deteriorated? Mr. Campbell. We have known of cases of destruction of large quantities of food that had been kept in storage which was con- sidered to be unfit for food. We have effected the destruction of some food products by the normal operations of the food and drugs act, where the products were shipped interstate. The various State officials and city officials have done the same thing under the pro- visions of their laws. But we have no knowledge that this destruc- tion was due to any other reason than the undesirability of such products for food purposes. Mr. McLaughlin of Michigan. Undesirability when they were found to have deteriorated ? Mr. Campbell. Yes. Mr. McLaughlin of Michigan. Of course. Mr. Campbell. That may have been due to the fact, not that the food was kept in storage for an excessive period, but perhaps to the fact that proper care was not manifested at the time' that it was prepared for storage purposes. The Chairman. Have you any evidence of the destruction of food for the purpose of enhancing the price? Mr. Campbell. No, sir. The Chairman. You know of no such case throughout the country ? Mr. Campbell. We have not been concerned with that, Mr. Chair- man ; we have not looked into it from that standpoint. The Chairman. But the department has made an exhaustive study and investigation of this matter, especially through Dr. Pen- nington, I believe? Mr. Campbell. Well, Dr. Pennington has studied The Chairman (interposing). Appropriations have been made for that purpose, we have had reports from time to time, and have been given to understand that the matter has been given considerable study? Mr. Campbell. Dr. Pennington has studied that in connection with her work on storage products. I have seen no report from Dr. Pennington that indicates that there has been a willful destruction of food. If there has been, she herself knows it. 26 COLD-STOKAGE LEGISLATION. The Chairman. 1 understand you to say that eggs may be kept for 10 or 11 months without marked deterioration, fish 27 months, and poultry three months. In order to make the law effective, it would be necessary to specify the jiiaximum time that each of the articles could be kept in storage, would it not^ Mr. Campbell. I do not think so, so far as character is concerned. The Chairman. You would not permit the storage of poultry 12 months, if it deteriorates in three months, would you i Mr. Campbell. If an article deteriorates in 12 months to a point where it becomes unfit for food, it then becomes adulterated within the meaning of the food laws of the country; and they could not put that product out and sell it without contravening the terms of the pure food law. Mr. McLaughlin of Michigan. Well, in keeping that poultry in storage beyond the three months, they might accomplish their pur- pose—that is, if their purpose was to enhan; e the price by keeping the poultry off tht' market? Mr. Campbell. That is quite true. The point I am trying to make is that, so far as our work goes, we are looking to the character of the product through the enforcement of the food and drugs act. The matter of indicating a time limit in any cold storage bill that may be drafted is one, it seems to me, purely of economics ; and that is for the judgment of the committee and of Congress to determine: and on that the Bureau of Chemistry has no information. The Chairman. You say fish may be kept for 27 months without deterioration : you would not limit the storage of fish to six months, would you ? Mr. Campbell. If you, in your judgment, conclude that the eco- nomic advantages would justify that, I see no reason why it should not be done. The Chairman. Why should fish be permitted to be stored for only one-half the period, and poultry, for instance, for three times the period, that they can be, respectively, kept in storage without deterioration ? Mr. Campbell. I do not see any reason whatever to prevent Con- gress from passing a law directed to the economic situation on dif- ferent products, whether it be eggs or fish or anything else, that may become a cold-storage article, intending merely to prevent a manipu- lation of prices. The point I was seeldng to make was this: That, so far as our investigations have gone, we have found that by the exercise of meticulous care some products can be kept for an indefinite period without marked depreciation and still be fit for food purposes. They would be storage articles, but that fact would be indicated. If they did go to a point where they were no longer valuable for food pur- poses, or if they went to a point where they were objectionable, they would then be in violation of the pure-food laws of the country if anybody should undertake to market them; and therefore ther« would be no necessity for concerning yourselves about the time pro- vision in these laws, so far as the character of the product is con- cerned. The Chairman. Your point is that the pure- food law takes care of that side of the situation? COLD-STORAGE LEGISLATION. 27 Mr. Campbell. Yes, sir. The Chairman. We have the law prohibiting hoarding that takes care of that feature? Mr. Cajipbell. Yes, sir; at present. The Chairman. I take it that the purpose of this bill or any other bill along this line should be to guarantee a wholesome food as well as to prevent hoarding — to strengthen the laws on the two points. It seems to me that a uniform provision as to the time all kinds of foodstuffs may remain in cold storage would not be a practical way to deal with the matter, but that it should be dealt with as, for in- stance, apples are dealt with on the Pacific coast, where the storage of certain kinds is permitted for only a certain limited period while other kinds that do not mature until later may be kept in storage for a longer period. Mr. Campbell. Yes. The Chairman. As I understand it, certain apples mature along in January and others as late as April or May. Would not that be the practical way of dealing Avith this matter ? Mr. Campbell. Indicating different periods for different products, do you mean? The Chairman. Yes. Mr. Campbell. Well, so far as the character of the product is concerned, if you are going to regulate it from the standpoint of wholesomeness, that should be done. The CriAiRjiAN. Should not the two things be taken into con- sideration ? Mr. Campbell. That is not a question, Mr. Chairman, that I could make a recommendation about. I really do not appreciate the neces- sity for the indication of a time limit for the purpose of controlling the character or the quality of the product so long as you have so many other laws that really do that. The Chairman. It seems to me that the application of it to all articles then in cold storage woTild not mean very much; you would force the one storing fish to dispose of it in 10 or 12 months, or whatever time is fixed in the law, instead of 27 months, the time for which fish may be kept without deterioration. You would permit poultry to be kept three or four times as long as it can be kept with- out deterioration by such a law. Mr. Campbell. Let us suppose, for illustration, that you take the case of fish alone. If we from our experience had found out that it was possible to preserve fish in a satisfactory way by cold storage, for 27 months, Congress would not be disposed, I take it, to indicate a period that would be short of that, so long as that period was in- dicated for the purpose of controlling the character and quality of the product and with no economic relationship at all. But suppose some one else had prepared fish without that degree of care and put it into cold storage, where it would not Ifeep for, perhaps three months or even for two months. So that if we are considering the question of maximum periods, it seems to me that it is going to be pretty difficult for the committee to determine a period of time where the purpose is primarily to regulate the character or quality of any one product and make the regulation effective. 28 COLD-STOBAGE LEGISLATION. The Chairman. The thought you have in mind, then, is to have an annual turnover, which may be provided in the law ? Mr. Campbell. Yes, sir. The Chairman. Without regard to the wholesomeness of the food product ? Mr. Campbell. That is the point exactly. Mr. Anderson. The purpose of cold storage is to carry over the product from the period of large production to the period of short production ? Mr. Campbell. Yes, sir. Mr. Anderson. So that our object should be to find out primarily R'hat the period of large production is and the period of short pro- duction, and upon that basis to determine how long the period of storage ought to be ? Mr. Campbell. That is my personal opinion ; yes, sir. The CHAHtMAN. How long can eggs now be stored here in Wash- ington ? Mr. Campbell. They can be stored here just as long as eggs put in in April or March if they are put into storage under the same conditions as those stored in the spring. The reason that they do not stand up under storage if they are August or September eggs is that those months are very much hotter than the spring months, and ordinarily by the time you get the eggs into storage they have been subjected to a temperature that would not permit them to stand up very long. The Chairman. Ordinarily, how long, then, can they remain in storage ? Mr. Campb}:ll. Our bulletin says : Freshly laid eggs, with clean, whole shells, that have not been wet, show a negligible loss in bad eggs, even after a period of 10 or 31 months in storage. The Chairman. Does that have reference to eggs produced in August in high temperature? Mr. Campbell. That has reference to any eggs at all. The Chairman. It has reference to the average run of eggs? Mr. Campbell. Nearly all the eggs you find in storage are spring eggs; you do not have very many summer or fall eggs in storage; the big amount of storage eggs are spring eggs. The Chairman. Some summer or fall eggs are stored? Mr. Campbell. Yes, sir. Mr. Lesher. In regard to fish, at what time of the year are they put in storage ? Any particular time ? Mr. Campbell. Only where you find fish that have a run of a seasonal character ; take shad, for instance, where that industry may exist, of freezing and storing shad, of course their operations would be timed entirely by the period that the shad run at that particular place. Mr. McLaughlin of Michigan. Some of the products are frozen and they are kept in storage in that way. Do you find that some of those products deteriorate even when frozen? Mr. Campbell. Yes, sir; there is a deterioration, particularly from the standpoint of palatability. The department is studying that question now, as it applies to the various classes of products; and I have in mind the question of dairy products, and especially COLD-STOKAGE LEGISLATION. 29 butter. It is our judgment, although we have not carried on the work siiiRciently to be able to determine the question that there is -a deterioration which may not be indicated chemically or bacte- riologically. But from the standpoint of palatibility, whether that Is due to a physical deterioration in the article itself, or whether it is due to the absorption of flavors and odors that it may get from other products that may be stored adjacent to it, there is a deteriora- tion. Mr. McLaughlix of Michigan. Is butter kept by freezing? Mr. Campbell. It is kept by maintaining it at a low temperature, but not necessarily freezing? Mr. McLaughlin of Michigan. Not by freezing ? Mr. Campbell. No. The Chairman. In order that we may have it in the record, will you kindly indicate the principal articles of food that enter into -cold storage? Mr. Campbell. Mr. Marshall has the record of that; he has the entire tabulation, Mr. Chairman, and perhaps you would rather have it from him. The Chaikman. Will you give the time that the various food products may be kept in storage without deterioration ? Dr. Marshall. Yes. Mr. Campbell. I have indicated what our publications have shown on the articles that we have investigated so far. With respect to «ggs, Bulletin No. 775, page 34, says : Freshly-laid eggs, with clean, whole shells, that have not been wet, show a negligible loss in bad eggs, even after 10 to 11 months of storage. The Chairman. Can you give the average time in the general run of business ? Mr. Campbell. No, sir; I can not. Mr. Marshall will be able to give you that. The Chairman. I mean, as to the keeping qualities when they are put in storage under ordinary conditions — as they run in trade? Mr. Campbell. I can tell you what I know about shell eggs. After they have been kept in storage for several months they are usually taken out and then graded by the dealers. That is usually by a process of candling and breaking representative samples to deter- mine their character. No dealer who is handling eggs can say arbi- trarily that eggs which have been held in storage for a period of six months, for example, are or are not wholesome and fit for food, and that he will be warranted in putting them on the market with- out inspection in the belief that there would be no difficulty so far as the enforcement of the pure-food law is concerned. The prin- cipal factor involved is the condition of the eggs at the time they are put in storage. Storage will not cure deterioration ; and if the product is bad when it is put in storage, of course it is not going to correct that condition. The Chairman. I assume that, as a general proposition, eggs go into storage deteriorated to a certain degree? Mr. Campbell. You are right about that. The Chairman. During what time do they go into storage ? Mr. Campbell. They go into storage in March, April, and May, and sometimes in June. 30 COLD-STOKAGB LEGISLATION. The Chaieman. Personally, I do not like to lose sight of the ques- tion of the wholesomeness of the product. I think that is one of the things that we should guard and protect; and, as everyone knows, the eggs here in Waslaington— and, in fact, in nearly every city— are very seldom fresh ; I believe that 90 per cent of them have deteriorated in some degree. Mr. Campbell. Yes. The Chairman. And I believe that is one of the things that we should keep in mind as well as the supply. My question was for the purpose of ascertaining how long they can be kept without deteriora- tion in the general run of business ? Mr. Campbell. As I said, they are put in storage principally during the spring months. They are taken out and usually graded before they are put on the market in the fall months and, just so long as they last, in the winter months. It is impossible to give a more definite answer than that. They are pulled out from storage just as the market might require. The Chairman. I understood you to say that some of them could be kept 10 or 11 months without deterioration under the most favor- able conditions. Well, will you kindly include the other storage articles in the record ? Mr. Campbell. I can give you those now. The Chairman. How about butter? Mr. Campbell. We are studying that now ; we have ■ published nothing at all on that. We hope to have something definite at the conclusion of our work this year on butter; but so far we have not made any publication on butter. The Chairman. Have you anything on meats? Mr. Campbell. No, sir; we have not. The Bureau of Animal Industry handles that. Poultry, fish, and eggs are the principal perishable products that we have studied. In Bulletin No. 635, Department of Agriculture, this statement is made as to fish: Chemical analyses show no significant chanja-s in fish held 27 months, or fir a ppi'ioil niuch longer tliaii wfiiilil be nefpf^s;i ry nr iiroiitiible in storing fish ci-mmereiallA'. The Chairman. We will not take your time to read them all now ; you may include them in your remarks in the record. Mr. Campbell. I have only one other to read. In the Department of Agriculture Bulletin No. 115, the follow- ing statement is made on poultry: Suniming up the oi'jiimleptic piorerties. it may be said that for a short time, po.ssibly .'-ix weeks, or even longer, there is no perceptible change pro- duced in a chiclien by having it frozen. There certainly does not seem to be any evidence that it is better, and there is no convincing evidence tliat it is any \\-orse. After three monti^f, however, the fresh chicken is easily dis- tinguished by its properties, as a rule, from the cold storage chicken, even after cooking, and to an absolute certainty before cooking. This distinction between the fresh and the stored bird becomes more and more marked as the time of storage is increased. Ml'. McLaughlin of Michigan. That is true if it is kept frozen all the time, is it not? Mr. Campbell. Yes, sir. CDLD-STOKAGE LEGISLATTON. 31 Mr. Jacoway. What page is that on? Mr. Ca3ipbell. Page 100 of that bulletin. I have already read you the bulletin on eggs, Bulletin No. 775, on page 34. The Chairman. We thank you, Mr. Campbell. It is now half -past 12. The committee will recess until 2.30, at which time we will hear Mr. Marshall. (Thereupon, at 12.30 o'clock p. m., the committee took a recess until 2.30 o'clock p. m.) AFTER RECESS. The committee reassembled, pursuant to the taking of recess, at 2.30 o'clock p. m. The Chairman. We will hear Mr. Marshall first this afternoon. STATEMENT OF MR. HERBERT C. MARSHALL, ASSISTANT CHIEF BUREAU OF MARKETS, DEPARTMENT OF AGRICULTURE. Mr. Marshall. Mr. Chairman, I take it that I hive the pleasant duty of wandering over the entire field. It is a rather large field and one about which, it seems to me, it is going to be practically very diffi- cult to come to definite decisions. I shall not hope to do more than give facts, and as for deciding what should be done about a cold- storage bill, as was suggested this morning, we have made some effort along that line, but we have found it a very difficult problem. If the facts will be helpful, we are here, of course, to give them to you. I think it would be fair, Mr. Chairman, to point out that the cold- storage industry wants legislation. It would be unfortunate if the idea should get abroad that there is any objection on their part to legislation. It may be that they will not be entirely satisfied with the legislation that Congress gives them, but they are desirous of Federal regulation. It has been so ever since the regulation of the industry under the Food Administration. When the Food Adminis- tration was about to go out of existence the gentlemen in charge of the work there took the matter up with your predecessor, the former chairman of this committee, and suggested that something should be done, and at a meeting of certain sold-storage organizations in New York City last December resolutions were passed, and if I may, I shall be very glad to read those resolutions, as indicating the atti- tude of that body. They said : Resolved, That it is tlie sense of tills meeting tliat tlie regulation of cold storage during the war by the United States Food Administration has been not only highly successful but also distinctly helpful to the industry itself ; and further be it Resolved, That in our judgment it would be wise at this time to continue a measure of Federal regulation under some governmental department known to be constructive in work, in order to promote conservation, facilitate distribu- tion, stimulate production, and eliminate wasteful, discriminatory, and unfair practices in the handling of the Nation's food supply, and in order to relieve the industry from the unnecessary annoyances and losses incidental to divergent State laws. These resolution were passed at a joint convention of the American Association of Eefrigeration and the Cold Storage Subdivision of the 32 COLD-STOEAGE LEGISLATION. American Warehousemen's Association, which are the large national organizations interested in these matters. The Chairman. In that connection, can you put m the record the rules and regulations promulgated by the Food Administration tor cold storage? It was operating under certain regulations? Mr. Marshall. It was still operating at that time. The Chairman. Have you a copy of the rules and regulations^ Mr. Marshall. I can supply them. The Chairman. So that they can be incorporated m the record? Mr. Marshall. Yes, sir. . Mr. Tincher. Let me see if I understand the proposition : One of the solicitors of the department this morning advised us that the food-control bill was stronger than anything we could pass m the way of legislation. Mr. Marshall. That is true. Mr. Tincher. The enforcement of that law has been so satisfac- tory to the cold-storage people that they are asking for a continuation of that law? Mr. Marshall. Not exactly that; they want Federal legislation. Mr. Tincher. And the President is asking us to legislate here to I'oduce the cost of living. Is there not some inconsistency in the posi- tion of the cold-storage people and the request of the President in reference to the matter? Mr. Marshall. I think you might regulate the cold-storage in- dustry and at the same time reduce the cost of living. Mr. Tincher. The President has not asked us to enact legislation to help the cold-storage people. Mr. Marshall. No. Mr. Tincher. And if the former act, which is stricter than any- thing we can enact and still stay within our limitations, is satisfac- tory to them, and if they want more regulations Mr. Marshall (interposing). I do not attempt to speak abso- luteljr, but did not the President say that the legislation in existence at the present time was sufficient if Congress would provide funds for its enforcement? Mr. Tincher. No; he did not say that; but, with reference to the cold-storage proposition, the President asked practically that we €nact the New Jersey law ; but we can not do that, as I understand the opinion of your legal department of the Department of Agri- culture. But I am frank to say to you that I am surprised to hear that the cold-storage people are asking for this regulation. If it will help the cold-storage people, it will not do much for the consumer. Mr. Marshall. I do not think that is a necessary conclusion at all. It might help both. Mr. McLattghlix of Nebraska. Do you think the cold-storage peo- ple would ask for it from a standpoint for a reduction of the price ? Mr. Marshall. The owners of the cold-storage warehouses are ask- ing for this ; thev are not the owners of the food. Mr. Young. These people who are asking for it are the cold- storage warehouse people— not the men who own the stuff that goes into the cold-storage warehouse? Mr. Marshall. Yes. Mr. Young. The people who came under the regulation of the price of service given by the warehouse people? tl COLD-STOEAGE LEGISLATION. 33 Mr. Marshall. The regulations fixed the maximum rate for storage. Mr. YoTJNG. And they were satisfied with that. I find that all these fellows_ are satisfied where they had that kind of rate fixed during war time, because they all came out whole, where the fellow who had to pay the bills for the stuff which passed through his hands has had to absorb the maximum rate and he has had to bear the burden. Mr. Marshall. Of course, the maximum rate was the rate beyond which they could not go, but as to how effective it was, I do not know. Mr. Young. They got the maximum rate if the Government es- tablished it. I have this general criticism in reference to this kind of stuff: during the war time I know in my section of the coun- try — the manufacturing interest down there is the cottonseed oil- milHndustry — ^the Government put in charge of that branch of the service men who were oil mill men, specifically, no cotton producer, no man who made the raw product which passed through the oil mill, and every regulation made clown there took care of the big institutions, the gins, and the mills. The farmer who grew the stuff had to pay the bills. That is the trouble I see about this war regu- lation. Mr. Marshall. Of course, the legislation that was passed by Con- gress was not intended to favor manufacturers. It should be made reasonable and fair to all. The mere fact that they are asking for legislation is no reason why you should pass legislation favorable to them. Mr. YoTjNG. Here is another thing in regard to the war regula- tions. The owners of the cold storage warehouses, the owners of these big institutions — they are all bookkeeping propositions, every one of them. It is not any trouble to know what is the capacity of these plants ; it is not any trouble to know what their labor scale is and their capacity for doing business. That is a mere matter of bookkeeping, and under war regulations they came out whole, with great profits, whereas the poor devil who is making the crop, who is faced with uncertain conditions, with the uncertainties and handi- caps of droughts and floods, and uncertain labor conditions, has never had anything devised to take care of him at all. Every prac- ticable application of these principles and all the regulations and orders issued and adopted during war time have taken care of that class of people who are best able to take care of themselves, and so far as the people who have had to assume all of the risks are con- cerned, there has never been any system devised to take care of them, and they have had to pay the penalty. Mr. Marshall. So far as the question of this being an easy matter to determine is concerned — that is, the matter of rates, that is not so easy to find out about. They have been working for at least two or three years trying to arrive at the cost in cold storage work. It is a very complicated problem. In time it should be possible to work it out. * The Food Administration did not base its work on that, and the industry really is not in as good shape in that respect as might be hoped for. In time it is to be hoped that the costs will be known, and, as a matter of fact, in the Bureau of Markets we have some men 137690—19 3 34 CX)LD-STOKAGE LEGISLATION. now on that very problem; but it is a very difficult problerr and it ■will be sometime before any sprt of conclusion will be arrived at. Mr. TiNCHEK. Do you know of any institution or corporation tliat the Food Administration is supposed to have had control of under the law that has not profited bv that control ? Mr. Marshall. I could not^answer for the Food Administration. I really do not know anything about it at all. It may be so or it may not be so. the Chairman. Your bureau has been making investigation with a view of formulating a plan to submit to Congress. You are now in the process of drafting a bill. I suggest that you go on with your statement until it is finished, and then we will ask you questions. If 3^ou will give us the benefit of your investigation and any plans worked out which you care to sugg^est, we will be glad to have tham. Mr. Marshall. It seems to me about the best thing I can do is to tell you something of the problem, as was done this morning. While, we have been making an effort, we really have not The Chairman (interposing). Do you prefer to go on with your statement and then have us ask you questions? Mr. Marshall. Yes. If the committee is inclined to present a comprehensive cold-storage law, I should feel that it should include more than is in the bill you have under consideration. As you were told this morning, the constitutional questions is a very serious one in connection with the matters dealt with here. It is felt that in peace times it is not possible to devise legislation that will require licensing of cold storages, because it is extremely ques- tionable whether you can bring it under any constitutional power, except the taxing power, which would warrant that licensing. It is extremely questionable whether it can be done under the interstate- commerce law, and as to the taxing power, the attitude of the com- mittee this morning was very doubtful about that. But there are other considerations that ought to be borne in mind. One very serious question is the rates that cold storages shall charge. That should be uniform for giving the same service. It is the same problem precisely that the railroads have had. Forty years ago there was no uniformity of railroad rates, and the rise of the Standard Oil Co. and of the large live-stock shippers, we are told, was directly due to the fact that there was not a requirement of anif orm railroad rates ; that a large shipper would go to one rail- road and ask for a rate and then would go to another railroad, quote the first rate and ask for a lower rate, and by that very operation the advantageous shipper would get a much better rate than his com- petitor, and thus drive his competitor out of existence. We are told that is the way such large concerns grew up. In the cold-storage in- dustry we have much the same sort of problem. If you have an empty warehouse and some man offers you a little business, rather than have the warehouse remain empty you will give him a low rate. So it is highly desirable, not merely from the standpoint of the storage warehouse man himself, but from the standpoint of the man who puts the stuff in the warehouse that the rate should be uniform. In fact, it is perhaps rather more important for him than it is for the warehouse itself. Just as in the case of the railroads, it is perhaps more important for the shipper that there should be no discrimination than it is for Cajuu-oj-OhAuS LEGISLATION. 35 the railroad itself, so it is of the greatest importance to the customer of the warehouse that he should receive as favorable a rate as his competitor. It is a question that ought to be taken care of, if it can be. But it is very doubtful whether that particular provision can be taken care of, if you can not have a system of licensing. Something perhaps can be accomplished even if you can not have a system of licensing. Under the Federal Constitution it is believed Congress has the power to require information regarding the business of com- mercial concerns on the ground that it is essential to have this infor- mation for the purpose of conducting the Government work properly. Mr. VoiGT. Would you say the rate should be uniform, no matter what the quantity of goods stored may be ? Would you charge a man storing 100 cases of eggs no more than a man storing 10,000 cases of eggs — that is, per case? Mr. Marshall. I really would not want to take up that question. I believe the railroad rates are substantially the same in all instances. Mr. VoiGT. Carload lot rates are cheaper than rates on less than carload lots. Mr. Marshall. But really I would not want to venture an opinion on that. It is a detail concerning which your judgment is probably better than mine. Mr. VoiGT. I understood you to say that you advocate that all rates should be uniform for the same warehouse. Mr. Marshall. I would say that every man should be assured that he will have the same uniform rate for the same service. As to whether there should be a lower rate for a large quantity than for a small quantity, that would be a different problem. I think the de- sirable thing to do is to have the assurance that the rate for small quantities should be the same to all customers, and the rate for large quantities should be the same to all customers. As to whether there should be the same rate on large quantities and small quantities your judgment would be better than mine. Something could be accomplished, perhaps, by the requirement that they give information. We are now obtaining information from cold storages, information regarding stocks of various sorts of com- modities carried, and are publishing them. Mr. Hutchinson. Do you know how many cold-storage warehouses there are in the country ? Mr. Marshall. I can tell you what our reports show. It is highly probable that Congress could require them to state what their rates are. I am not so sure that Congress could require that they shall be uniform, but that they state what their rates are. Then you could probably require the Department of Agriculture to publish those rates. It would be something for the department to be able to say that this warehouse gives such and such a rate for a particular service. It would be much better if we could find anywhere the con- stitutional power to require them to make their rates uniform to all customers, but perhaps that would have to be left to the State legis- latures. We do at the present time obtain reports from practically every cold-storage warehouse in the country. The number of them is about 1,300. I doubt whether there is a single cold-storage ware- house of any consequence that does not report to us. Sometimes the reports are a little bit late, so that in our monthly reports you will 36 GOLD-STOEAGE LEGISLATION, find that we make estimates for certain small ones that have not re- ported; but the number of those failing to report on time is very small. , Mr. Hutchinson. You generally report between three and four hundred, do you not ? Mr. Maeshall. There will be a considerable number reporting one thing and a considerable number reporting another thing, and of the total number of approximately 1,300 the total failing to report for any particular month would be within 20 or 25. For the 1st of July there were 408 which reported on case eggS, 435 which reported on American cheese, 344 which reported on frozen beef, and there were approximately 300 reporting on poultry, but tak- ing them all together, the entire number reported. Mr. Hutchinson. Do you make the private warehouses report? Mr. Marshall. Yes. Mr. Hutchinson. Do you get those ? Mr. Marshall. Yes. Mr. Hutchinson. They all keep all lines; they do not store spe- cialties ? Mr. Marshall. They evidently do not keep all lines. Take the storages in the Northwest, in the apple region; they carry only ap- ples. As an illustration of how nearly our reports are complete, on case eggs we had 408 reports, and 21 which ordinarily carry case eggs on their reports were not in when this went out to the public. Those 21 probably came in later in the month. Mr. Hutchinson. Have you reports from New Jersey for July 1? Mr. Marshall. I could not give them to you at this time. I could give you the number reporting from the Middle Atlantic States. Mr. Hutchinson. They are all together? Mr. Marshall. Yes ; but I have not New Jersey separately. That could be obtained. Another matter that is highly desirable as legislation, if the power can be obtained, would be the matter of regulating loans. That is the source of much of the speculation. If you could make sure that loans were not made indiscriminately and recklessly, it would prevent much of the speculation in cold-storage products. Cold-storage con- cerns are driven by competition to make these loans. Mr. Young. What character of loans have you in mind ? Mr. Marshall. Loans on commodities in storage. Let us assume that you take 1,000 cases of eggs into a storage warehouse and obtain a loan. Mr. Young. From the cold-storage man? Mr. Marshall. From the cold-storage concern. Mr. Hutchinson. He gives the service in that regard just as a bank does ? Mr. Marshall. It would be much better if the cold storages did not make those loans at all, but due to the competition they find it difficult to carry on business and avoid it. If you could constitu- tionally get legislation of that sort it would help prevent speculation. Mr. Hutchinson. Do you not think it would be a good idea to prevent them borrowing at all, and then they would be forced to sell the stuff. Mr. Marshall. It might be a very good thing if the cold storages were not, allowed to make loans. COLD-STOEAGE LEGISLATION. 37 Mr. TiNCHER. Why not fix it then so that the farmer could not borrow anything on his stuff, so that he had to sell it when it was ripe? Mr. Marshall. It is desirable that the banks should make fair loans, because that is their business, but it would be much better if the cold-storage warehouses did not do that, because that is not cor- rectly their business. Mr. EiDDiCK. What would be the idea — to put the cold storages in the hands of wealthy people ? Mr. Marshall. No; we are talking of the cold-storgae concerns. They make the loans. Mr. EiDDiCK. I understood you to say you did not want the man with the goods in storage to borrow money. Mr. Marshall. No ; but to borrow it from the banks. Mr. EiDDiCK. What would be the difference if he borrowed money and it enabled him to hold the goods in every case ? Mr. Marshall. It is really the banks' business to make the loans; the cold storages sometimes make them as a part of their means of getting business, and the competition is liable to lead to reckless loans and make speculation possible. Mr. YoTJNG. I get this criticism. The packing people make loans to stock men. I hear the criticism frequently that they have called the loans. They have made loans in my section of the country, which is one of the great cattle-producing States of the Union, and I have heard the criticism frequently that when they see fit they call the loans and can force the cattle on the market and use that as a leverage by which they force these cattle out of the hands of the cattle producers at prices satisfactory to the packer. I was wonder- ing whether the same kind of system prevailed here. Has the cold storage man any way of forcing this stuff out of cold storage? If I am a producer and put my stuff in his cold storage plant, does he follow the system of forcing it out of my hands ? Mr. Marshall. I do not think it likely the cold storage man would ordinarily do that. If it be true that the packer does that, he would have an advantage in doing it because he wants to buy. Mr. Young. Does the cold storage man ever become a purchaser? Mr. Marshall. They sometimes do, when the loans are not met; but as to whether they actually follow any such business as that, I do not Iniow of their doing it, but they may in some instances. Mr. Young. There is a tremendous power there, if they want to use it. Mr. Marshall. That would be another reason to regulate that particular thing, but I am afraid you have not the Constitutional power to do it, and those things will probably have to be left to the States. So you have the idea clearly that there are two classes to deal with, first the owners of the cold storage warehouses, and then the dealers who have goods there. My suggestion is in order to pass a comprehensive law that it would be very desirable to meet both of those problems, while the bill before you is confined very closely to only one, I believe. At the risk of repetition I will say I doubt whether there is any Constitutional power that you would want to exercise for covering 38 COLD-STORAGE LEGISLATION, that p,990 11,072,509 819,449 623,304 122,870 1,148,415 115,4(9 227,453 10,526,880 6,821,829 813,021 565,492 1,277,346 710,708 1,093,739 324,621 230,437 1,000,592 1,567,345 1,947,611 247,565 197,594 41,245,365 21,699,316 March.. . 30,466,134 April 34,631,637 May 28,470 30,926 31,941,790 19,629,815 Total 179,514,107 Consumption of oleomargarine in the United States. Year. Produoticn. Exports. Consumption. 1916 Pounds. fO ,444.0n 301,; 03, 048 356,024,628 179,514,107 Pounds. 5,426,221 3,525,540 9,004,108 14,548,545 Pounds. ' 197,017,840 305, 677, 508 1917 1918 347,020,520 Firstemonths of 1919 164, £65, 562 The Chairman. You may go on with your statement, Mr. Mar- shall. Mr. Marshall. The production of eggs is, roughly, somewhere about twenty-five hundred million dozen. The greatest amount in cold storage at any time is up to the present time not far from two hundred and fifty million dozen. So the largest amount of eggs in storage at any one time so far as we have known is about 10 per cent of the country's product. I have here a chart that shows the com- posite movement of eggs covering a period of three years. The high point is about August 1, as you will see here The Chairman (interposing). Suppose you give the figures for each month as you have them here, starting in at the left-hand side at the bottom of the chart. Mr. Marshall. All right. In the latter part of the year they gradually go out, until you can see by looking at the chart that in COLD-STORAGE LEGISLATION. 47 March there are none. Roughly, on April 1 there are something like 500,000 cases and — of course, the years differ — on May 1 something like 2,000,000 cases, 30 dozen to the case; on June 1 something like 6,000,000 cases; and on July 1 and August 1 last year and the year before there were six and a half million cases and this year about 7,500,000 cases. In the latter part of the year they gradually go down, until by February or March 1 the eggs almost absolutely dis- appear. Mr. Anderson. Was there any larger supply this year than last year? Mr, Marshall. Yes, sir. Mr. Anderson. Was the production larger ? Mr. Marshall. AVe have a fairly good line on butter production, and butter production has increased in April, May, and June approxi- mately about 20 per cent. We have not a positive line on the in- creased production of eggs. Mr. Tin CHER. That butter production has not increased with the butter stored ? Mr. Marshall. No ; of course not. A very small percentage of in- crease in production would, of course, make an enormous increase in storage, because the total amount of butter in storage at the high- est point is only about 6 or 7 per cent of the year's production, and the largest amount of eggs we have ever laiown to be in storage at any one time is approximately 10 per cent of the year's production. The Chairman. How do you account for the increased percentage in storage ? Mr. Marshall. In the case of butter it is clearly the increase in production. The Chairman (interposing). Was there a greater demand last year ? Did Europe call upon us for a supply ? Mr. Marshall. The large holdings of butter in storage may be due partly to anticipation of a large exportation of butter — and ex- ports have been running a little larger — anticipation of large exports of butter due to shortage of fats in Europe. The Chairman. How did this year compare with last year? Mr. Marshall. Somewhat larger. Mr. Anderson. Have you any information as to whether or not any large quantity of the products held in storage is held for foreign account ? Mr. Marshall. As to eggs, I am pretty sure there are none. There have been some exports of eggs during the war period, but never before — and this is a mere guess, of course — and it is not probable there will be any considerable exports later on this year. As to butter, it is probable there will be exports, for the reasons stated — the shortage of fats in Europe. Mr. Tincher. The newspapers and people talk so much about the high cost of living, and they claim that a great many families — and I have seen the percentage of families in cities — that are denying themselves the use of butter. Would that have anything to do with increasing the amount in storage ? Mr. Marshall. Presumably it would, if that be true. Mr. VoiGT. In your judgment, would it be wise for the Congress to pass a law preventing exportation of these commodities, for the time being, to cut down the cost ? 48 COLD-STORAGE LEGISLATION. Mr. Marshall. I am not authorized to speak for the Department of Agriculture. Mr. VoiGT. I am asking you for your opinion. Mr. Marshall. Then, I will answer that I do not think so. I should hesitate very much about favoring any restrictions on the exportation of commodities, when we have such an abundant produc- tion in this country, and when our agriculture throughout all our history has been so large a part of our total business and the source of our wealth. Certainly we would not restrict the exportation of wheat when we have, according to the latest estimates, three or four hundred million bushels of surplus; and I do not think we should put a restriction on the exportation of butter when this year the production is very large, because of the large pasturage; it would mot be fair to the farmer to put a restriction on the exportation, which would simply keep down the price. Mr. VoiGT. Well, as I understand it, we are here largely for the purpose of discovering a method for reducing the high cost of living. Have you anything specific to offer on that subject? Mr. Young (interposing). Before we pass on to that question I would like to state, Mr. Marshall, that I agree with you on the non- wisdom of stopping the exportation of food products. If we should do that because of the cry of the high cost of living, then there is no- where that yovi can stop, because if there is anything in this country that to-day is bringing an exorbitant price it is shoes, and clothing, and farm implements — the farm implements, the harness, the plows, and other things that the farmer purchases — and if we commence with an embargo on foodstuff with the idea of reducing the high cost of living, of necessity, would not the farmer have a right to say, you stop the exportation of what we produce, but you leave what we have to buy where it stands, and all that enters into the high cost of living, And when we consider all these matters, where would we be ? Mr. Marshall. You are not going to stop the exportation of food- stuffs, in my opinion. Mr. Young. No ; not by my vote. Mr. Marshall. And not by the vote of any other man, in my opinion. Mr. Tincher. Isn't it happening right now with reference to wheat? Isn't there practically an embargo on shipping out any wheat, right at this time ? Mr. Marshall. Of course, the grain corporation has the power to deal with it, absolutely. Mr. Tincher. You understand that they have refused to issue licenses, and are not issuing licenses, to exporters of wheat. You understand that the President said in his message — which message occasioned this inquiry — that wheat was cheaper in the United States to-day than in Europe, and he hoped to keep it so. Mr. Marshall. Of course, wheat will be exported later on. Mr. Lee. They are not exporting it now. Mr. Young. Isn't this the distinguishing feature between the wheat situation and the other situation : That under the law or the rules governing the matter we are the buyers of wheat, we have one pur- chasing agency, which is the Government, and one agency to trans- port it to foreign countries, which is the Government, and since thd COLD-STORAGE LEGISLATION. 49 price has been fixed and the Government is handling it all, that is en- tirely different from all other things that we have mentioned. Mr. Makshall. Of course, the wheat corporation has absolute' power in that matter. Mr. TiNCHER. The Government has taken occasion through that corporation to regulate that one product of the farm in such a way that it is not bringing its natural market value; that is being held down. As I understand, you represent the Bureau of Markets, and you are not in favor of regulating any other product in that manner ? Mr. Marshall. I wouldn't say as representing the Bureau of Markets, because, as I have stated particularly here, I am not in a position to speak for the Department of Agriculture. But when some one asked for my personal opinion I stated that my personal opinion was not in favor of limiting exports, and almost every one around the table then stated that he was not in favor of it either. Mr. TiNCHER. Neither am I, but I must ask, why regulate one- thing and not another? Do you agree with that proposition, of regulating the price of wheat, you people in the Bureau of Markets ?' Mr. Marshall. That was not a matter governed by the Bureau of Markets of the Department of Agriculture, but by the Congress. Mr. VoiGT. I do not want to be put down as saying I favor an embargo on these things, but my question was propounded with the idea of bringing out your opinion. Now, I want to ask: Have you any concrete suggestions to offer for reducing the high cost of living? Mr. Marshall. If the committee insists, I will later give a com- plete discussion of the causes of high prices. The Chairman. In that connection, do the present cold storage methods (I mean the methods as now carried on) affect the high cost of living ? Mr. Marshall. I would rather discuss the entire price problem at one time. The Chairman. Very well. Mr. McLaughlin of Nebraska. Relative to the amount of butter and the amount of eggs probably in cold storage : According to the figures only about 7 per cent of the butter products are in cold stor- age during the year and 10 per cent of the eggs. Now, with refer- ence to those two commodities, isn't the percentage in cold storage so small that any legislation attempting to force it out on the mar- ket a few months ahead would fail to have any perceptible effect on the market price at all ? Mr. Lesher (interposing). Wouldn't it rather increase the price at certain times, if you force it out now ? Mr. Marshall. As to what effect the forcing of butter on the mar- ket would have on the price thereof, there is no reason why my judgment on that would be any better than yours, or even as good as yours. Clearly that butter will come on the market before the end of the year. As to the wisdom of forcing it out now or letting it come out when in the regular course of events commercially it will come out, is for you gentlemen here to decide. The Chairman. And would not this be the effect: That if your force it out now it would reduce the price at the present time? Mr. Marshall. Yes, sir. 50 COLD-STORAGE LEGISLATION. The Chairman. And increase the price later on, when there will likely be a shortage? Mr. Marshall. I think so. However, the production this year is large and the supply in storage is large. Unless the shortage of fats abroad results in large exports, it is reasonable to expect that the somewhat abundant supply will result in more moderate prices as compared with other commodities. It is entirely possible that butter should be moving into consumption more rapidly at the present time, and that could be accomplished only by lower present prices. Since the supply is large this year, the matter might work out differently from a time when the supply is smaller. Mr. Hutchinson. This bill does not force anything out; it gives you 10 months. Isn't that long enough time ? Mr. Marshall. I doubt whether a limitation on butter or eggs is necessary. Mr. Hutchinson. That is what I asked for — for information. Mr. Marshall. These eggs will appear on the market before next March. What would 11 or 12 months' limitation mean in the case of butter or eggs? It might be a good thing to do psychologically; the people might feel better satisfied. As a matter of fact, every year these eggs do come on the market before the close of the season. Mr. VoiGT. Have you ever found in the cold-storage reports that eggs were held longer than 11 months? Mr. Marshall. We do not get the particular history ; so one par- ticular case might be held 12 months. All we Iniow is that about the 1st of March there are no eggs in storage ; that all that accumulated during the year are gone at that time. Evidently all that accumu- lated during the year were sold. Mr. Hutchinson. Have you any knowledge or do you know the percentage of eggs that are lost? Mr. Marshall. You should put that question to the men from the Bureau of Chemistry. I do not know that it makes any difference if the dealer is willing to hold them until the end of the year and stand the loss. Mr. Hutchinson. Supposing a man puts 100 cases of eggs in stor- age and loses half of them ; he keeps them there too long. Mr. Marshall. If he holds the eggs until people want them in February, perhaps he is doing economically a good thing. Mr. Hutchinson. How is that? Mr. Marshall. If he holds them so that people will have eggs in January and February, perhaps he is doing a good thing for the consumer. Mr. TiNQHER. On the proposition of whether legislation regulat- ing the cold storage will be a benefit or reduce the high cost of living, do you think there is anything to indicate that the prices that you have given us on butter and eggs, as the average prices throughout the United States, are lower than the prices given by the gentleman from New Jersey, as the prices of those commodities in that State where they have a law regulating cold storage; would that be any indication as to whether we sould have a similar law for the Nation? Mr. Marshall. Their law in New Jersey says that you shall not hold eggs longer than 12 months, so that hasn't anything to do with eggs, because all eggs are sold before that time. COLD-STORAGE LEGISLATION. 51 Mr. TiNCHER. The recommendations we have is that — the Congress pass a law regulating cold storage as it is regulated, for example, by the laws of the State of New Jersey. Mr. Marshall. Well, it may have to be modified. Mr. RiDDiCK. The President suggests that we have a national law patterned after the New Jersey law, on the theory that it will reduce prices; now, does it in fact? Are the prices lower in New Jersey than in other States? I want the facts. Mr. Marshall. I do not have them, and probably the answer you could give would be better than the one I could give. Mr. EiDDiCK. Well, I do not know. Mr. Young. Before we get away from New Jersey it seems the prices are higher than the prices you quoted ; if New Jersey did not produce those things in cold storage and had to buy on the general market to store in New Jersey, the fact that New Jersey has laws on the proposition would cut very little ice when the whole nation makes up the schedule of prices. In other words, if New Jersey had to go on the general market and buy those products to store in cold storage in her State naturally prices would probably be high, because they would have to be transported there and stored there, and bear the overhead charge, no matter what the law is on the statute books of that State. One little State can not control he prices in a great productive country composed of 48 States. Mr. McLaughlin of Michigan. But the influence of a cold-storage law within the State might cut some figure? Mr. Marshall. Of course, the fact remains that a general law passed might have a very great effect. Mr. Young. Yes; one law covering the whole nation might have an effect, but a law in that one section might have a minor effect. Mr. Marshall. Yes; and of course that is what you have been asked for, general legislation. Take the commodity of cheese. The production of cheese in the • country might be roughly estimated at something like 400,000,000 pounds per year. The largest amount of cheese that we have had in cold storage at any time is approximately 100,000,000 pounds, so that the largest storage holdings at any time is approximately 25 per cent of the annual production. Cheese does not go entirely out of storage in the consuming season, as in the case of the other com- modities I have mentioned. And that is perfectly reasonable, be- cause the curing process in the case of cheese often requires holding it more than a year. The high point for cheese is about September and October and the low point about the beginning of June ; but the cheese does not entirely go out, as eggs and butter. The production and consumption of meat for the entire country is perhaps about 12,000,000,000 or 15,000,000,000 pounds. The largest amount in storage at anj' time during the time that we have obtained reports, including both meats and poultry — meats of all sorts — was approximately 1,200,000,000 pounds. Accordingly, the amount of meats in cold storage, so far as we can estimate roughly, is something like 10 per cent of the annual consumption. Mr. Hutchinson. Mr. Marshall, aren't you wrong there? I thought you said the production was 1,200,000,000 pounds. 52: COLD-STOEAGE LEGISLATION. Mr. Marshall. No ; I said 12,000,000,000 pounds to 15,000,000,000 pounds. These figures are very rough, but near enough for you to get some idea. Mr. TiNCHER. What months went that high ? Mr. Marshall. The high months for frozen beef are at the begin- ning and close of the year and the low months for frozen beef are about midsummer; for dry and salt pork, the high months run rather from April to July and the low months about October. Mr. HtTTCHiNSON. In the matter of increase, do you know what the increase was from over a year ago ; how much more -v^e have in storage at the present time ? Mr. Marshall. I will give you some of the principal items. Frozen beef Mr. Heflin (interposing). Let me ask you in that connection the amount of meat and stuff in storage ; do you include in that amount meat in process of curing ? Mr. Marshall. In the cured-meat products we include meats in process of curing as well as meats that are cured. Mr. Hutchinson. Does that include, then, all the meats in cold storage ? Mr. Marshall. Apparently the figures I have given you do not include those not in process of curing. . The Chairman. Will you state, month by month, the amount of meats, stating the high and low points? Mr. Marshall. I have already given that. The Chairman. Will you state for the record the number of pounds ? Mr. Marshall. I can give the number of pounds for July 1 as compared with last year. I can not give you month by month with- out a long delay in adding the figures. Comparing July 1 this year with July 1 last year, frozen beef this year 162,000,000 pounds, last year 147,000,000 pounds. Frozen pork this year 154,000,000 pounds, last year 94,000,000 pounds. Dry salt pork, 380,000,000 pounds this year; 400,000,000 pounds last year. Pickled pork, 422,000,000 pounds this year; 362,000,000 pounds last So in those four principal items there is a substantial increase in three and a decrease in one. Mr. Hutchinson. Now, Mr. Marshall, have you got the prices on that? Mr. Marshall. I have not. I could give you prices from the Bureau of Labor Statistics report. I would be very glad to refer you on such things as that to the Monthly Labor Eeview of the Bureau of Labor Statistics, which goes into those things in very great detail. It gives the wholesale and retail prices for the entire country and, of course, gives the information very much better than anything I could give you. The Chairman. Does this make up the total supply of meat now ? Mr. Marshall. Oh, no ; merely the four principal items. The Chairman. Can you give the aggregate of all the total supply in cold storage? Mr. Marshall. The total figures for all meats reported, including lard, but not including poultry, for July 1, 1919, is 1,334,000,000 120 Jan. Fob. Uar. tprll Hay Jure July Aug. S«pt. Oct. Hot. Dgo. ,-- 100 ^^ — .— - — ^ " / ' X 80 / / ^^ ~-^^ / __ V £0 // / , -■' -\ //.-' -/ _,. -■' ^4^^ 10 v/ V / N^ / / "H ii^ / 30 ^^^55~" y ^,-' '■—-»—-•> 1917 o • o 1919 Fig. V. — ^Relative monthly cold storage holdings of frozen pork during 1916, 1917. 1918, and 1919. Base 100 equals Iioldings on May 1, 1918. 100 Fig VI — Relative monthly cold storage holdings of frozen beef during 1916, 1917, 1918, and lOlll. Base 100 equals holdings on January 1, 1918. Fig. VII. — Relative monthly storage holdings of di-y salt porls during 1916, 1917, 1918, and 1919. Base 100 equals holdings on June 1, 1918. 100 90 70 60 50 IK) 30 20 10 Jan. Feb. Uar. April May June July Aug. Sept Oct. llov. Deo. ^ ^ ^ -' .,^'~ ^, ^^ / ^A '• s\ 7A yy N ^^ A y X ^\ X V ^ V \A V^'X^ k-- ason 191S ason 1917 ason 191s ason 1919 Se Se 100 90 70 -)> 60 50 HO 30 20 10 Flo. VIII.— Rplative monthly storage holflings of pickled pork fluring 1916, 1917, 1918, and 1919. Base 100 equals holdings on July 1, 1917. 100 90 80 70 60 50 IJO 30 20 10 July Aug. Sept. Oct. HOV. Deo. Jan. Feb. Mar. April May June / s. / S V i \ \ / ^ N, \, / s \ \ ^N --,__^ / / ^ , — ~-^ N N, ^ /-' -'^ N ' ^ ■"^^ y^ ^-^ ^ ^ !?Aaji/ jn 191?-iQio 100 90 70 50 30 20 Fig IX — Relative monthly cold storage holdings of frozen poultry, during seasons 1916-17, 1917-18, and 1918-19. Base 100 equals holdings on January 1, 1917. COLD-STORAGE LEGISLATION. 53 pounds ; for July 1, 1918, 1,197,000,000 pounds ; the amount this year being larger than last year by 137,000,000 pounds. Mr. Anderson. That is the amount in storage? Mr. Marshall. In storage. The Chairman. What is the amount in process? Mr. Marshall. Those figures include meats in process of curing. The Chairman. I understood one of the packers in their statement a year ago stated that it was 2,500,000,000 pounds. I believe Mr. Armour made that statement before the committee; I happened to be there. Mr. Marshall. Our cold-storage reports do not include meats in the chilling rooms, most of which go directly into consumption and are neither frozen nor cured. The figures you have in mind may in- clude all fresh meats. The Chairman. Can you give the number of plants that are not reporting ? Mr. Marshall. Substantially none. The Chairman. You claim to have a full and complete report? Mr. Marshall. Yes, sir. Every storage plant we know anything about, and our cold-storage specialist knows the business. The Chairman. Where do you get your information as to the number? Is it possible that you may have overlooked a number of them? Mr. Marshall. We get names and addresses from various lists. Two years ago we had a large force of clerks engaged for several months in making up lists of commercial concerns from various sources. We went through Dun's Eeference Book for the purpose of completing and correcting our lists generally. With regard to packing establishments, the reports of inspection work of the Bureau of Animal Industry are of much assistance. The Food Administra- tion turned over certain lists to the Bureau of Markets. The Chairman. From various sources, then. I appreciate it is quite a task to obtain the lists. Mr. Young. The census report gives all that stuff, too, doesn't it? Mr. Marshall. It gives production once in 10 years. I should doubt whether it gives much about cold storage, but I do not know. Mr. Hutchinson. Before you get away from there I should like for you to define cold-storage warehouses. For instance, Armour & Co. has one at every little station. Do you call that a cold-storage warehouse and are you positive that you report them all? Mr. Marshall. The small houses that you refer to as branches of the large packing concerns are merely distributing houses. They merely hold a supply for current distribution in the local market. They probably do not contain frozen meat, but merely chilled and cured meats. There is undoubtedly a considerable total amount of meat in these small houses and in the houses of retail butchers also, but it would be quite impossible to obtain curi'ent figures on these amounts and issue our reports with promptness, and in fact these amounts are not a part of what might be called the reserve supply of meats of the country, but merely a changing supply from day to day. Generally speaking, these small branch houses close out their supply of fresh meat entirely by Saturday evening and obtain a 54 COLD-STOEAGE LEGISLATION. new supply for the beginning of the following week. These small branches and also the retail meat markets are merely the last link in the chain of distribution. The cured meats contained in them have, of course, at one time been in the curing cellars, and possibly in cold storage, and have accordingly appeared in our reports; the fresh meats have passed directly from the coolers to these branches without ever having been frozen or having been in cold storage at all. The cold storage reports that we receive, tabulate, and publish include frozen and cured meats, including meats in process of curing, but do not include merely chilled meats either in the coolers or in the small distributing branches or retail stores. The houses report- ing to us include public cold storages, private cold storages, com- bined public and private cold storages, and packing houses. The table below gives the number of concerns of each sort, their total storage space, and the amounts of space of various temperatures. Culnc feet of cold-storage space of the United States segregated 'by temperatures and classes of business. Total. Space at temperatures of— Classes of business. Concerns. Space. Below 10°. 10° to 29°. 29° to 40°. 40° and above. Number. 402 281 266 438 Cubicfeet. 163,101,982 14,005,296 46,894,310 239,023,625 Cubicfeet. 30,912,309 2,285,439 3,614,601 14,548,896 Cubicfeet. 26,010,612 2,033,472 8,825,752 24,120,408 Cubicfeet. 100,426,619 7,969,829 31,674,184 175,005,822 Cubicfeet. 5,752,442 Private cold storage 1,716,556 Combined private and public. . 2,779,778 25,348,499 Total. . . 1,387 463,025,213 61,361,245 60,990,244 315,076,454 35,697,270 The figures given in the above table for packing houses are, in large part, for space used for chilling and curing and not for storage properly so called. Mr. Andebson. Mr. Marshall, these figures that you have given on beef, do they cover anything except frozen beef ? Hr. Marshall. The last total that I gave you included frozen beef, cured beef, frozen lamb, and mutton, frozen pork, dry salt pork, pickled pork, lard, and miscellaneous meats. Mr. Anderson. That explains the situation Mr. Haugen has in his mind; these figures do not include fresh meat that is in coolers in the process of cooling for immediate consumption; it only in- cludes frozen meats. Of course, frozen meat is not as large a quan- tity as fresh meat. Mr. Marshall. Probably not, because some of it never goes into cold storage proper at all ; it goes from the chilling rooms right on the market. Of course, that goes direct to the consumer without passing through cold storage at all. Mr. Anderson. That would apparently explain the statement made by Mr. Haugen. " Mr. TiNCHER. The meat in the coolers, the frozen and cured meat, are in the cooler at some time. Mr. Marshall. Yes, sir. COLD-STOEAGE LEGISLATION. 55 Mr. TiNCHER. And isn't it a fact that they keep all the meat in the coolers for a fixed number of days ? Mr. Marshall. Yes; I so understand; first cool it, and then put it in the sharp freezing space and freeze it. Mr. McLaughlin oi Michigan. Mr. Tincher, your idea was that this meat was evidently what was intended for immediate use, that are in the cooler at some time. Mr. Tincher. Yes, sir. Mr. McLaughlin of Michigan. That never reached the freezing place at all, is cooled and then shipped out for use. Mr. Tincher. I understand they do hold it so long. Mr. Andeeso2j. The average time at which the stock is slaughtered omtil it is sold on the market is less than two weeks, the whole period. They cool it from 24 to 72 hours as a rule; that is, all that is intended for immedate use, or consumption. Mr. Marshall. Mr. Chairman, it probably would be of interest to the committee to have the latest figures that the department has with reference to the number of live hogs and live cattle in Europe and in the United States at the present time and compare the figures for four or five years ago. I shall be glad to put in the record the latest figures for the United Kingdom, France, Netherlands, Den- mark, Italy, Switzerland, Sweden, Germany, and the United States. To summarize the hog population of those European countries at the present time is not far from 21,000,000; on dates varying from five to six years ago, the figures for the same countries are 44,000,000; a reduction in the number of live hogs in Europe of about 23,000,000, or rather more than 60 per cent from the number of approximately five years ago. As to cattle, the total for those same countries is approximately 55,000,000 at the present time, and was approximately 61,000,000 four or five years ago, so the reduction in the number of cattle is very much less. In this country the estimate of the Bureau of Crops Estimates for the beginning of this year for hogs was 75,587,000; for the year 1914^15 it was approximately 62,000,000, giving it in round numbers. The estimate for cattle in this country on the 1st of January was 67,- 866,000 ; the estimate for the years 1914-15 approximately 57,500,000 ; so that in the five years in this country we have an increase of ap- proximately 10,000,000 of cattle, while these European countries I nave mentioned have a diminution of 5,000,000. The Chairman. Do you include dairy cows? Mr. Marshall. Yes ; all cattle. In this country we have approxi- mately an increase of 13,000,000 hogs, while these European coun- tries have a diminution of 23,000,000 ; so that these figures before us show a net increase in the number of cattle in the United States and these particular countries but a net diminution in the number of hogs. That may be of assistance to you in considering the compara- tive prices of hogs and cattle; and the complete table, I think, might well be placed in the record at this point. 56 COLD-STOEAGB LEGISLATION. (The table referred to is as follows:) Hogs. Date. Number. Date. Number. tTnifed Kingdom.. France Netherlands Denmark Italy Switzerland Sweden Germany. June, 1914 Deo. 31,1913 June, 1910 July 15,1914 1914 Apr. 19,1916 1916 Deo. 1, 1913 3,962,615 7,035,850 1,259,844 2,496,706 2,722,000 544,563 1,065,396 25, 166, 267 June, 1918 June 30, 191S Maroh, 1919 Apr. 10,1919 Apr. 7,1918 Apr. 19,1919 1919 Dec. 4, 1918 2,809,21-5 4,0211,897 449.829 58"!, 939 2.337.304 '364,468 633,671 10,080,375 Total of certain European countries. United States 44,243,241 21,284,698 1914-15 62,000,000 Jan. 1, 1919 7o,5S7,eOO Cattle. Date. Number. Date. Number. United Kingdom.. Franco Netherlands Denmarl: Italy Switzerland Sweden Germany June, 1914 Dec. 31,1913 June, 1910 July, 1914 1914 Apr. 19,1916 1916 Deo. 1, 1913 12,184,505 14,787,710 2,026,943 2,463,000 6,646,000 1,615,893 2, 913, 159 20,443,827 June, 1918 June 30,1918 March, 1919 Feb., 1918 Apr. 7, 1918 Apr. 19,1919 1919 Deo. 4, 1918 12,311,149 13,314,856 1,968,609 2,142,000 6,186,273 1,530,165 2,583,113 17,226,865 Total o{ certain European countries. United States 60,618,037 55,121,020 1914-15 57,600,000 Jan. 1, 1919 67,866,000 Data for a number of other countries are given in the Monthly Crop Reporter for February, 1919, page 20. Mr. Young. I was wondering how you get these records at this time from Europe. What system have you ? Mr. Marshall. These data have been obtained by the Bureau of Crop Estimates. They have an exchange system through the Depart- ment Library by which they obtain official reports from other gov- ernments. Other sources are United States consular reports and the International Institute of Agriculture at Rome. The recent figures for Germany first came through in certain official German newspapers. Some one who was reading German newspapers for purposes of the Government telephoned me that the figures had come to his attention ; and I gave the information to the Bureau of Crop Estimates, and they immediately made an examination of the newspapers. The Chairman. What have you on South America ? Mr. Marshall. Figures from South America are much less accu- rate than from European countries. Brazil is the largest producer of hogs in South America. We have no recent figures of value on hogs in South America. I shall be glad to show the relation of the figures that I have given you to the hog production of the world. On the map which I show you, page 131 of " The Geography of the World's Agriculture," a publication of the Department of Agriculture, prepared by the I3ureau of Farm Management a year or two ago, the density of hog production is shown by dots. You will observe that in addition to COLD-STOEAGE LEGISLATION. 57 Germany, Denmark, and Northern France, for which countries we have definite recent estimates, the hog production is large in Austria, Servia, and adjacent regions. Since these countries are badly devas- tated, it is reasonably certain that the reduction in the number of hogs in Europe is considerably greater than the figures that I have given. You will also note that the production of hogs in South America is small as compared with the United States and Western Europe, so that any figures that we might have on South America would not be of much consequence in affecting the general situation. The Chairman. What have you on cattle in South America ? Mr. Marshall. The maps I am now showing you, which are on pages 120 and 121 of the same publication, show the cattle, and you will note that there are large numbers of cattle in Argentina, Uru- guay, and the adjacent portion of Brazil, so that the lack of figures from that region may indicate still larger numbers of cattle in the world than the figures I have given you would indicate, because there has been a shortage of shipping, so it is quite possible there is an ac- cumulation in the River Plate region. The Chairman. You have no recent reports ? Mr. Marshall. The latest official report for Argentina was about 26,000,000 for the year 1914. Unofficial estimates give about 27,000,000 for 1918. The Chairman. How does the supply compare in South America with that in the United States ? Mr. Marshall. The number of cattle in the Argentine is a little less than one-half the number in the United States. Perhaps the Argentine, Brazil, Uruguay, and Paraguay combined produce about the same number as the United States. The Chairman. Do you figure that on meats and fats? Mr. Marshall. The figures I have given you would indicate there is considerable shortage on pork throughout the world, but not so much of a shortage in beef, and the comparative prices of live hogs and live cattle would bear out that idea. I am merely giving you these figures for the purpose of interpreting any information that comes to you on the question of prices. I think it would be helpful. Mr. TiNCHER. You have reserved a couple of questions, I think. You were going to tell us whether you thought the law regulating cold storage would affect the high cost of living, and I understood were going to tell us how to reduce the cost of living ? Mr. Marshaix,. I do not think I said Mr. TiNCHER (interposing). You reserved those two. Mr. Marshall. I do not think I should attempt to say just what the laws on cold storage should accomplish ; the problem is one that I should not attempt. If you really want my views on prices I shall be glad to give them, when I have finished dealing with the other matters. Mr. VoiGT. Considering the production of these articles that you have spoken of this afternoon for a period of 10 years, that is the amount produced per annum and the amount in cold storage over a period of 10 years, would you say there is now in cold storage in this country an undue amount? Mr. Marshall. There is more meat in cold storage than last year. There is more butter 58 COLD-STOEAGE LEGISLATION. Mr. VoiGT (interposing). Wait a moment; last year may have been an abnormal year. I say over a period of 10 years? Mr. Marshall. There is more butter than at any other time ; there are more eggs than at any other time. Whether it is unexpected in view of the fact that our people are getting back to production I would not attempt to say. I am giving you the facts. Mr. VoiGT. There is more food m cold storage at the present time than there ever has been before, isn't that right ? Mr. Marshall. Yes, sir ; I think that is true. The Chairman. Is that due to speculation or increased pro- duction ? Mr. Marshall. In the case of butter it is only fair to say that the pastures were good and the production of butter increased. I have given you the figures. The Chairman. How about eggs ? Mr. Marshall. We do not know about eggs,' because we have no figures on the production of eggs. As you can readily understand, it would be almost impossible to obtain them. We can get approxi- mate figures on butter. We receive reports from more than 3,500 creameries, our list including substantially all establishments of appreciable size, at least as nearly as it is possible to keep such a list up to date is an industry where changes are likely to occur fre- quently. Mr. Hutchinson. Isn't it a fact that the production of various ^•egetable oils now is large, and wouldn't that have a natural tendency to decrease the consumption of butter ? Mr. Marshall. There are cottonseed oil, peanut oil, and various other oils. Mr. Hutchinson. And hasn't that had an effect to reduce the con- sumption of butter largely? Mr. Marshall. Cotton-seed oil substitutes for lard; has for a number of years. As to how largely it substitutes for butter, we know that oleomargarine is being used much more largely than a few years ago and it is being made largely of these vegetable oil. The Chairman. There has been a large increase in the production of oleomargarine? Mr. Marshall. Yes, sir. The Chairman. Are you through with your general statement? Mr. Marshall. During the consideration of other problems, sev- eral questions have been asked about the causes of high prices ; and I have asked that they be deferred, in order that the matter may be dealt with systematically. I shall now attempt to deal with that question. Aside from instances of profiteering, which are believed to be widespread both in wholesale and in retail trade, economists gener- ally are entirely in agreement that the chief cause of high prices at the present time is the inflated currency of the world. Some light on the subject may be gained by reference to the paper-money period during and after the Civil War in this country. Some years ago I made a study of the movement of wholesale prices in the United States during the Civil War paper-money period, covering the years 1862 to 1879, using for the purpose 210 series of quarterly quotations and reducing these to a set of weighted index COLD-STORAGE LEGISLATION. 59 numbers with the year 1860 as a basis of 100. The results are shown on a chart which I shall present for the use of the committee. On this chart you will observe a rapid rise from 1862 to January, 1865, and a gradual decline from that date until 1880, when we reached the same range of prices that we had in 1860. This chart gives the move- ment of prices of manufactured cotton, manufactured woolens, the coarser manufactured iron products, as pig iron, bar iron, and iron rails, products of agriculture, lumber, and the general average of all prices. Cotton goods [indicating on chart] rose much higher ' 1. 1 \ In THt Ufiirt p^mrs.6 ^ \ AG>a^ 1860-/680 f^anufyotured Coffona ^nufactvred Ufoofens ^vltxTi of /i^tau/Jura - — » — v ■ ■ IM tan imt M** m*» «W than other articles during the Civil War, because the supply of raw cotton from the South was cut off. Manufactured woolens, standard iron manufactures, and agricultural products all moved along to- gether. If other classes of commodities were included on the chart, they also would be found to follow closely the heavy line showing the general average of all commodities. This second chart shows the quantity of the various kinds of money in circulation in the North from January, 1860, to January, 1865, and the general range of prices for the same period. The figures on the left side of the chart are percentage figures for the range of prices. Those on the right are for quantity of money. The spaces between the irregular heavy lines represent the quantities of the various kinds of money, the highest irregular line showing the total of all kinds of money. The dotted line represents the general average of all prices on a basis of 100 for January, 1860. Prior to 1862 the money of the 137690—19 5 60 COLD-STOEAGB LEGISLATION. country consisted of gold and silver, classed together as "specie," and bank notes, the total amount of both in the North being approx- imately $300,000,000. During the war period there was added $450,000,000 of "United States notes," commonly _ called "green- backs," and in the year 1864 a smaller quantity of interest-bearing, legal-tender notes, which also circulated from time to time. Accord- ingly, on January 1, 1865 ; there was between two and three times as much money in circulation as when the country went to a paper basis early in 1862, and the general average of prices, as we see from both charts, was somewhat more than twice as high. It tea isei 1S62 1863 189* 1865 luaber 229 isi s i S i 1 1 S 1 s j^n s 1 %i & I 200 «o»jtitT or »o«iT 1 • oiaiaii, Dtioi 01 PKiots 1 seo - 1« 6 > n y'/ '^ / Interoat Be&rlDg Legal Tandtrs 17} /j 130 / ^ 123 ^- r^l * , .,» *•• 7J t22 ui^'V >' ..^^• » ^ .••-••.. ^ ^ S » • 1 • X \ Quutlt} of Meoiy $910,000,000 SSO.OOQ.OOO 700,000,000 KO.OOO.OOO 200,000,000 It will not be insisted that the quantity of money is the sole cause of the fluctuation in prices. The readiness with which the money is accepted, the use of credit instruments, changes in the amount of business transacted, and other modifying causes must not be ignored; but the point chiefly to be borne in mind is that in a period of infla- tion all prices rise and that the one fundamental reason for this gen- eral rise is the lowering of the value of the money in circulation, due principally to the quantity of the money, but modified by other fac- tors such as those already mentioned. From the first chart we have seen that from 1865 there was a steady decline in prices until about 1878-80, when the range of prices of 1860 was again reached. During this period there was no great change either in the kinds or in the quantity of money in circulation, the total consisting of approximately $700,000,000 of combined green- backs and national bank notes. The use of credit instruments, such COLD-STORAGE LEGISLATION. 61 as bank deposits, increased somewhat, but in iivneral the gradual decline in prices, in other words, the steady rise in the value of the paper money, was due to the increase of business, the growing up of the country to the paper money in circulation. To cover the period down to the present time this third chart will be of interest. This chart shows the general movement of prices in several countries from 1860 to the present time. One line represents England, another Austi'alia, another Russia, and another the United States. If you will notice, the lines move together downward for a certain period; then rise gradually for another period, and then finally rise very sharply about 1915. COURBL or WH0LL3ALC PRiCCS S/NCC t060 [ \: [l 1 ftuasiA L ¥ \ ].• °-^ --;7- V T? — t'^^i '"" /■■' ' / L 'H---- v(i ^/ \, / ^ 1 ^-'' -4 s ..<' ■ S - S S A 5 3 12 S S ^ - f? BiBS'ftgeSiSSisssss Sisas! m a, a, STOEAGE LEGISLATION. 243 Mr. SwiTZLER. Just as I was attempting to point out, they would he handled that way ; that is, they would be handled by the ware- houses and by the owners as possibly moving into interstate com- merce. They would want to be ready to move at any time. Mr. Anderson. Well, as you have indicated some delicacy about this taxation proposition, I do not want to insist upon an answer to this question. You can do just as you like. Don't you think that there would be some danger in the exercise of the power, of the Federal power of taxation in th6 regulation of the period of storage and for the purpose of requiring markings which would show the period of storage ? Mr. SwiTZLEE. It would be simply the danger of setting a bad example. Mr. Anderson. Well, I am leaving that to you. I ask if it would be dangerous if you want to explain what the danger is, all right. Mr. SwiTZLER. Well, I believe that the revenue derived from such taxation would be very small, provided the rate of taxation was very small, but that it would open up a new avenue of taxation which we do not like to see opened up. Mr. Anderson. I will admit that as far as I am concerned that I wouldn't be willing to propose a tax on products in storage for the purpose of forcing them out at an unseasonable time, nor do I want to impose a tax on the goods in storage for the purpose of revenue, but it seems to me that it is an entirely different question from the question involved in an imposition of a tax after the 12 months' period. The purpose only is to pass regulations of markings and things of that sort. Congress always has the power; it is a dan- gerous power, and it strikes me that there is always a chance of Congress using that power unfairly; but that chance is always present and it isn't more present in this situation than it is in any other. Mr. SwiTZLER. You mean to adopt this in order to get at the ques- tion, because there is no other way of doing it? Mr. Anderson. There is no other effective way of doing it ; yes. Mr. SwiTZLER. Well, we should dislike very much to see it handled in that way. Mr. Anderson. Well, as far as I am able to see, as I take it, that you and probably the gentlemen who are in the same line of business with yourself object to the use of a taxing power for the purpose of regulating the marking and the period of storage — cold storages. Mr. SwiTZLER. Personally, I do, and, as far as I know, others in the same line of business concur in it. Mr. Anderson. I only wanted to get at your point of view of it. The Chairman. In that connection, I would like to ask you, Mr. Home, in your opinion, what percentage of the cold-storage products enter into interstate commerce ? Mr. Horne. Except at the warehouses at the terminals, I would say that Mr. Switzler's statement is, from my knowledge, about cor- rect, but, if anything, underestimated, although I would yield to his judgment', because he is more directly in contact with it in his busi- ness. In our Jersey City warehouses, I would say it was 90 per cent. The Chairman. How much with reference to New Jersey ? 244 COLD-STOEAGE LEGISLATION. Mr. HoRNE. That would reach, I would say, 90 per cent of the storage product. Mr. SwiTZLEE. I think my statement of 15 per cent is perfectly con- servative. Mr. HoRNE. Including the terminals as an average over the country it would be conservative. The Chairman. You have reference to cold-storage products which go into interstate commerce? Mr. Horne. While it is true that at the terminal warehouses, such as those located at New York and Boston, there is more local con- sumption, there is also a growing export business, lor goods destined for foreign commerce and for Canada. Mr. Hutchinson. Mr. Switzler, Mr. Home asked a question with regard to Missouri's interstate percentage, but I want to ask one other question. You say in Missouri you have no warehouse law or other method whereby goods put in storage are marked, so that the eggs may be shipped to New York, and there is now way of telling, as they are not marked. Mr. iSwiTzLER. No; we are not required to mark. During the period of control by the Food Administration we did mark, but since last February we have not been required to do any marking. Mr. Anderson. Then the goods can be held jn Missouri for 12 months and shipped to New Jersey or New York and they can be held for 12 months longer. Mr. Savitzler. Yes ; it is perfectly possible to do it ; but, practically; of course, it is not done. Mr. Anderson. It could be done? Mr. Switzler. No ; because no one would carry that lot of eggs. Mr. Anderson. How would they know, after they were over in New Jersey? Mr. Switzler. They know their eggs too well. Nobody attempts,to carry eggs over 12 months. Mr. Hutchinson. There are some products that can be carried over 12 months? Mr. Switzler. There are some products that could be carried over 12 months. Mr. Hutchinson. How about butter? Mr. Switzler. Butter could be carried. Mr. Hutchinson. You can keep a carload and ship it over to New York or New Jersey and keep it 12 months longer?" Mr. Switzler. That would be incumbent upon the receiver in the East. It would be possible. Mr. Hutchinson. That would be possible, and is it done? Mr. Switzler. Well, I want to say that I do not know. I doubt it very much. Mr. EuBEY. I want to ask some questions to get some information about the profits of cold-storage warehouses, etc. What are the aver- age annual profits made by concerns such as yours? Mr. Switzler, We have never paid over 6 per cent on our capital. Mr. EuBET. Would that be about — you probably know what other people make ; we can't get them all before use — that would be about the average percentage for the cold-storage concerns on their busi- ness? COLr-STOKAGE LEGISLATION. 245 Mr. SwrrzLER. Well; averages don't throw any light on the subject. It depends entirely on the location and the size of the business. A small cold-storage business is unprofitable. A man can't operate a cold-storage business and make money in a small place. In these large centers like Chicago, New York, Boston, Philadelphia, where it is possible to do a large business, it offers an opportunity for an in- vestment. Mr. EuBEY. In your opinion, would the profits made in cold stor- age have any measurable effect on the price of commodities ? Mr. SwiTzLEE. Not at all. Our charges are so small in com- parison. Mr. Heflin. In connection with a question asked you by Mr. Hutchinson about production being held in one State for 12 months and then sent to another State and held for 12 months; don't you think it would be necessary to have some legislation on that subject to prevent that or to make the authorities show that these goods have been stored in the State of Missouri for 12 months and shipped out on a certain date to New Jersey and received there and again put down in cold storage and then put on the market? I think that would be valuable information for the consumer. Mr. SwiTzLER. Well, I think it would be valuable to these States which have cold-storage laws to have a Federal law which would cover that point. That is one of the main arguments in favor of the Federal law, to put us all on the same basis. While probably there is very little of that done, it is possible. Mr. Heflin. Well, isn't it possible, also, for instance, for them to accumulate vast amounts of foodstuffs in Chicago and then by this method of publication that Mr. Marshall speaks of, so that the public can know how much is on hand, isn't it possible now under the present law for them to ship it out, that stuff, into other States, so that the information will show later that the supplies have dwindled down ? Mr. SwrrzLER. Well, but you must remember that the reports of the Bureau of Markets also cover the entire country, as Mr. Marshall stated this morning, his list of cold storages included practically all of the cold storages in the United States once a month and sometimes twice a month. The total of the entire country, so that the sum total in the Atlantic States, or the Western, or Middle Western, or Far Western and Southern States, and the total of the whole country is shown on the first of every month by the report of the Bureau of Marketti which it gets out. which covers all of the cold-storage business. Mr. Heflin. Yes; the information would be valuable to the public generally, but take Chicago, for instance, they could announce that they had on hand 10,000,000 pounds of stuff, a certain kind of food- stuff, and it could 'be carried into the other cold-storage places and the report would be given to the people of Chicago that there was only 1,000,000 pounds of that stuff on hand, and that would immediately put the prices up in the local market, although this stuff might be in storage in other places and the information could be had later, but it would not be received in time to affect the local market. Mr. SwiTZLER. My personal opinion is that the trade in Chicago keeps so closely posted on the movement of goods that they would know whether these goods were taken out of the cold storage and 246 COLD-STORAGE LEGISLATION. being consumed locally or being shipped out. As a matter of fact, you couldn't transfer this food in Chicago without the trade know- ing it, without it being generally known whether it was being put out locally or being taken out for shipment. In the same way they would know if it was going out immediately. In other words, no such move- ment takes place and they could not deceive the people in the busi- ness. They would know that it was going on. I feel that the reports of the Bureau of Markets, gotten out monthly and bimonthly, and in addition to the reports that they get- out on the produce market keeps the business informed, gives them all of the information necessary to keep in direct touch with this subject. Mr. Heflin. You think that the information is sufficient now ? Mr. SwiTzLEE. I do. If they could be gotten out more promptly, it would be of more value ; but I do not see how it is possible. They are probably gotten out as fast as it is possible for any human agency to get them out. The Chairman. We thank you, Mr. Switzler. Mr. HoRNE. The next speaker, Mr. Chairman, will be Mr. Floyd M. Shoemaker, president of the New York State Cold Storage Asso- ciation and president of the Hygea Eefrigerating Co., of Elmira, N. Y. Mr. Shoemaker is also chairman of the cold-storage subdi- vision of the American Warehousemen's Association. I might sug- gest to Mr. Shoemaker that he give some information to the com- mittee concerning the storage of apples. While apples are not in the list of articles used in the time limit, it might be of interest to know some of the conditions in regard to the apple crop, and, furthermore, if he would care to, we would like to have him tell us something with regard to the New York State cold-storage law and its workings under the commissioner on foods and markets. STATEMENT BY MR. FIOYD M. SHOEMAKER, PRESIDENT OF THE NEW YORK STATE COID STORAGE ASSOCIATION AND PRESI- DENT OP THE HYGEA REFRIGERATION CO., OF ElMIRA, N. Y., CHAIRMAN COLD STORAGE SUBDIVISION AMERICAN WARE- HOUSEMEN'S ASSOCIATION. Mr. Shoemaker. Mr. Chairman, I was not aware of the subject Mr. Home wished me to speak on this afternoon. I have brought a considerable amount of data, of one kind or another ; but I will try to be as brief as possible, because the hour is drawing late. If I may refer back to the conditions of the past, I will briefly allude to the fact that the present agitation that is going on in con- nection with cold storage, foods, etc., is by no means new. The public has been acquainted with the various State agitations that, perhaps, first reached a point of definite expression in the State of Massachu- setts in the year 1911, when a report was published by a Massachu- setts commission on the cost of living, which attracted considerable attention. I will briefly quote one or two points from that, report for your consideration and to ilustrate the similarity of certain phases of the situation existing at that time with the present situation. The report says: COLD-STOBAGE LEGISLATION. 247 The use of cold storage in the preservation of various kinds of food products, which has been developed greatly in recent years, has been connected in the popular mind with the recent advance In prices. The business has been sub- jected to violent abuse in many quarters. It has been made a kind of scapegoat for the public excitement, aroused by the increased cost of living. Drastic measures for the prohibition of cold storage or its stringent regulation have ieen proposed. That is something very parallel to the situation existing to-day. Later in the report the Massachusetts commission said : Much of the popular clamor about cold storage must be set down to ignorance and hysteria. Impartial Inquiry into the methods of cold storage leads to the conclusion that the general principle is sound and beneficent. I am not going to expound further that principle, because there is, I believe, on the part of this committee a full realization of the henefits conferred by cold storage and its necessity in the preservation and conservation of perishable foodstuffs. That has been thoroughly dwelt upon here by others, and need not be repeated. To bring the matter down a little closer to the present time, I will call your attention to Bulletin 745, of the Department of Agri- culture, prepared by Mr. I. C. Franklin, specialist in storage. Bureau of Markets. I should like to read into the records a few points from that report that I think will be of interest to the committee in this connection. I was not here yesterday, and am not familiar with what Mr. Home may have said on the subject. Mr. HoRNE. I did not quote that. Mr. Shoemaker. Then I will quote it. Mr. Franklin speaks in this bulletin of the question of temporary storage at producing points. This is a feature that possibly Miss Pennington may bring out also when she appears before the committee, as she is so splendidly pre- pared to indicate to you the necessity of this feature in the handling and prevention of waste in foodstuffs. Quoting Mr. Franklin : At some of the producing points the farmers have combined to build their own storages, so that they may bring their products to the consuming centers more nearly as they are needed by the public and, by so doing, find better marketing conditions. Unfortunately, however, not all products lend themselves to storage at the producing points. Poultry and eggs are produced only in small quantities by the individual farmer, and in relatively small quantities by single communities. A cold-storage plant must be large in order to be operated economically, and a small storage for a few carloads for long holding can not expect to compete with those in the larger cities when the cost of construction, the installation •of machinery and the cost of operation per cubic foot of space are twice as ^reat in such small storage houses. However, some prodiicers and the collec- tors of storage products in various communities have found that they can well afford to have a refrigerated room of somewhat more than a carload capacity for collecting purposes, so that stocks may be cared for properly until the shipment can go forward in carload lots under refrigeration. The saving in freight and the prevention of loss by deterioration, together with the higher prices obtained on account of the better condition of the food, in many cases, pays a good profit on the investment. Further comment on that is hardly necessary. Mr. Franklin later on in the bulletin refers to the criticisms of the cold-storage industry. If this part of his report has not been brought out before the committee, I think it might be well to have it in the record for the later perusal of the committee : The popular criticism of cold-stored foodstuffs is that they have been held In storage to a point of deterioration when they become neither palatable nor 248 COLD-STOBAGE LEGISLATION. wholesome. Coupled with this is the belief that they are often held unduly- long for the purpose of manipulating the market. That former practice." justified the first criticism has been shown ; that there is a basis for the second criticism can not be denied. It may be added, however, that there are limits beyond which holding for market manipulation can not go, which are not so well understood by the general public. In connection with this point we developed the further point of State regulations, which Mr. Switzler has referred to, and to which 1 will briefly refer as connected with New York State cold-storage regulation — that through the bodies of control of the various States^ the required marking and dating of packages in and out of storage, the inspection of goods under the operation of inspecting depart- ments, has gone very far to eliminate the practices referred to by Mr. Franklin as previously being prejudicial to the best interests of legitimate dealers and consumers. I would like in this connection to read briefly from the joint report on foods and markets of the Wicks legislative committee of the State of New York, acting with the governor's market commission and the mayor's food supply committee, in 1916. Their recom- mendation is of some interest, as follows : We recommend that the proposed State board be given supervision of the manner and methods by which foodstuffs are conserved from the time of over- product to the periods of underproduction. Such proposed State regulations should not be so unwise or oppressive la their form as to drive these necessary agencies from the State of New York to the shelter of more friendly States, but rather to promote and encourage the legitimate use thereof. The proposed State board could perform no more valuable service than that of encouraging the use of cold storage as a means of equalizing our food supply and the cost of same. Investigation shows that cold-storage facilities are inadequate and should be enlarged and extended. The fact of the inadequacy of cold-storage facilities was very forcibly demonstrated during the recent war period, when not only our own Government, but foreign Governments, as well as our domes- tic needs for storage facilities were at times seriously hindered in the carrying on of the necessary business of preservation of the foodstuifs that were needed for our domestic consumption and for consumption abroad. Mr. Home suggested that I refer to the matter of apple storage in New York City. Under the State cold-storage act, apples do not require marking; and the same regulations that apply to certain other lines of perishable foodstuffs, such as eggs, butter, etc., are not applicable to fruits, vegetables, and certain other commodities of a similar character. The question as to why they should not apply is one that was dwelt upon by our State legislators and answered to their satisfac- tion, although logically and following out the principle, it has al- ways been rather difficult to figure why there was not as great a liability to deterioration in fruits, or vegetables, as the case may be, as in other commodities ; but the theory is that it is self-evident when a vegetable or an apple is decayed or in bad condition, whereas it is not always easily determined what is the condition of an egg or a piece of meat or poultry. Apples are stored very extensively in the northern section of New York State, where a great many cold-storage warehouses have been erected by the farmers themselves — by the growers; and there is s COLD-STORAGE LEGISLATION. 249 system of community interests which has developed cold-storage facilities for the products grown in those communities. This year we have a peculiar situation in our State, as the apple crop of New York State will be very small as compared with pre- vious years. This would normally mean that many warehouses located through what we call the " apple belt " would be vacant, or would be only partially filled, and that the operation of those ware- houses would be at a serious loss to their owners. It happens, however, that there promises to be a heavy production of western apples, through what we term the Pacific coast States, or those States that produce what is generally known in the trade as " boxed apples." And at the eastern seaboard, as well as at many of the large stor- age points across the continent, particularly Chicago, the demand for space for the storage of eggs, butter, cheese, meat, and what we term spring and summer storage products, has been so great that there bids fair to be an actual shortage in cold-storage space at those points that in previous years have taken care of very large quanti- ties of boxed apples. Therefore, the northern New York cold-storage warehouses, and certain warehouses along the Hudson Eiver in New York State that normally would be filled with their own fruit grown in their im- mediate territory, or largely in their immediate territory, will be profitably employed in preserving and conserving this western fruit, m boxed form, for later consumption and the later needs of our country. I do' not loiow that there are any other particular elements bear- ing on the apple situation that I can inform the committee about; but I shall be glad to answer any questions on the subject. I want to briefly mention, as Mr. Home has requested that I take up this feature of the cold-storage proposition, the New York State cold-storage act. We believe in our State that we have a reasonable, workable, effi- cient cold-storage act, that is being administered by a well-informed departmen,t. A few years ago there was formed in New York State what is known as the department of farms and markets. To this council was delegated the administration of the State cold- storage law, that had previously been vested in the State depart- ment of health. . . . The direct work of administration was put under the division of foods and markets, of which Dr. Eugene H. Porter is com- missioner, and he is a very efficient, broad-minded, capable official. Under his wise guidance there have been fostered in our State the best interests of the cold-storage industry, and the best interests of the consumer have been excellently taken care of. In April of this year, there was issued from the department of farms and markets a bulletin, which, by the way, is published monthly by that department; but it so happens that this whole bulletin is taken up with the subject of cold storage. Between the covers every phase of the subject that you could possibly desire information upon will be found treated in a practical way; even the subject of fish has been dealt with. The publications contain very lucid explanations and are well illustrated. Whether the com- 250 COLD-STOEAGE LEGISLATION. mittee wishes me to take the time to read extracts from these articles on cold storage in the publication, Foods and Markets, I do not know ; but I am sure that, as a committee desiring to get at the sub- ject of cold storage and its relation to markets and its relation to prices, etc., you will desire to get all information which might be of value on these subjects. Perhaps, if I do not read from this publication — as it is so late in the afternoon — the committee may desire copies of it. Mr. Young. Can you furnish each member of the committee with a copy of that bulletin ? Mr. Shoemaker. Yes; I will be very glad to do so. Mr. HoENE. Mr. Shoemaker, will you refer to the suggestions recently made by the commissioner with respect to amendments ? Mr. Shoemaker. Yes; I intended to do that. That deals espec- ially with the cold-storage law of our State. I read in one of yesterday's papers that it has been recommended in a report to Gov. Smith that there be recommendations made by him for certain changes in our State law, which may profitably be considered by you gentlemen in framing a Federal law. The principal item of interest in this recommendation by Com- missioner Porter is that an act be formulated to provide for the marking of the date in and out on packages of cold-storage products from what we now know as private warehouses, warehouses where the goods moving in and out are owned strictly by the individual who owns the warehouse or owns the storage box, as the case may be, by rental, lease, or otherwise. Heretofore, in our States, those goods have not been subject to the marking regulations that apply to the public cold-storage warehouses. Mr. VoiGT. Pardon me, but do not the private cold-storage ware- houses come under your law at all ? Mr. Shoemaker. No, sir; not what are known as " private boxes"; they are not obliged to stamp their goods at the time they go in; and it is difficult to determine how long such goods stay in those cold-storage places. Mr. VoiGT. Well, if your cold-storage law does not apply to pri- vate warehouses, the owners of them can hold their goods in storage indefinitely ? Mr. Shoemaker. "Well, the character of the goods themselves would prevent any such measure as you suggest. That point has been very thoroughly gone over in previous discussions. Mr. Hutchinson. Are they local goods or are they interstate goods ? Mr. Shoemaker. Well, they may be both. Mr. Hutchinson. They may be both? Mr. Shoemaker. Yes. The commissioner of foods and markets also speaks of the provision for disposal of foods that have been in storage more than the 12 months' limit. He proposes that an amend- ment be made to the present law to apply to private as well as public cold storages. This covers the recommendations of the commissioner on the points referred to. The commissioner of our State and the warehousemen of our State are definitely on record as favoring an adequate and reasonable Federal cold-storage act. We believe that this is the proper way of regulating the interchange of foodstuffs between States. COLD-STOEAGE LEGISLATION. 251 Mr. Switzler referred to goods that could come out of his State into New York State, or into any other State where marking laws are in force, without being marked, because the laws of the State from which the goods came did not require marking, and thus there would be opportunities, apparently, for those goods to be marketed without the consumer being aware that they were cold-storage goods. The cold-storage warehouseman is proud of the industry that he is connected with. He is proud of the work he is doing, of the scien- tific development of an industry that is of incalculable benefit to the world at large, and, personally, we would advocate any measure that would require that goods which have been in cold stroage when taken from cold storage be assorted and sold as cold-storage goods, the character of the goods being determined by the examination. Now, Mr. Chairman, I do not believe I have anything further to offer ; if there are any questions I shall be glad to answer them. Mr. VoiGT. Let me ask you at what temperature you store apples? Mr. Shoemaker. We store apples at a temperature just under 32°, Boxed apples are usually carried at n little colder temperature than barreled apples. Personally, I carry boxed apples at a temperature of 31°. I like to have barreled apples at a little higher temperature than that after the first heat has been extracted from them. Mr. VoiGT. How long is it feasible to carry them at that tem- perature ? Mr. Shoemaker. I have carried apples from late in October or early in November until the following August — for my own benefit, and have taken them to my summer home and enjoyed them — and I wish you might have had one of them, because I know you would have enjoyed them. They were very fine Spitzenbergs. Mr. Jacoway. Those individual storage warehouses built by the farmers are quite a costly proposition, are they not ? Mr. Shoemaker. Quite so, especially at the present time. Mr. Jacoway. I am speaking about normal times. Mr. Shoemaker. Yes, sir. They must be well insulated. In our climate, we have to consider the conductivity of the cold, the outside cold, in the winter time, when the outside temperature may be down to 15° or 20° below zero. If the rooms are not well insulated, the cold will penetrate and freeze the goods. The reverse is true in the summer time. Therefore, good insulation is necessary in any cold- storage house that carries perishable products. Mr. Jacoway. Have you any data to show how long an Alberta peach can be kept in cold storage? Mr. Shoemaker. I have kept an Alberta peach in storage for quite a considerable length of time. I have kept them in cold stor- age until Christmas, and have taken them out and found them very perfect in contour and color, but quite worthless in taste. That was my own personal experience, in only a small way. Whether a room- ful of them could be kept with, a better degree of flavor, I am not prepared to say. Information as to that could probably be obtained more accurately from the Department of Agriculture. _ Mr. McLaughlin of Nebraska. I would like to ask in that con- nection if fruits of that kind can be kept indefinitely? Mr. Shoemaker. They can not; a peach, particularly, is suscepti- ble to deterioration. 137690—19 17 252 COLD-STORAGE LEGISLATION. Mr. McLaughlin of Nebraska. Yes, I Imew that. Mr. Shoemaker. A peach is a very juicy fruit, and thin-skinned; and the use of cold storage for peaches is usually simply precooling and a short carry to get them into proper condition for the market; peaches are seldom carried beyond from two to four weeks. I say this, although my own personal experience with peaches is very limited. Mr. Jacowat. One othfer question: Do you think there is such a thing as a perfectly refrigerated car? Do you not find great diffi- culty in shipping goods in refrigerator cars ? Mr. Shoemaker. We find that there is deterioration frequently in goods unloaded from refrigerator cars ; there is a great variation in the matter of insulation and in the construction of ice bunkers; but if further information is desired on that subject, Dr. Pennington has issued a very complete bulletin that will give you full information. Mr. Jacowat. Yes, I know. Mr. SnoEaiiiKER. It gives the data as to experiments which con- tinued over a long period of time. Mr. VoiGT. Let me ask you whether it is feasible to hold tomatoes, celery, oranges, and things of that kind? Mr. Shoemaker. Celery is, of course, carried in cold storage. I think tomatoes are carried for only a short time. My own expe- rience with tomatoes is very limited — only three or four days at a time; but celery is carried for quite a length of time. What was the other commodity you mentioned? Mr. VoiGT. Oranges. Mr. Shoemaker. Oranges are carried and grape fruit are carried for quite some time. Mr. RuBEY. What are your profits, Mr. Shoemaker? Mr. Shoemaker. Do you mean of the cold-storage warehouses? Mr. RuBEY. Yes ; of cold-storage warehouses. Mr. Shoemaker. Well, I could probably better answer that ques- tion by saying that my own company has not paid in excess of 5 per cent dividends for at least 10 years. Mr. RuBEY. You understand that I just wanted to get at what is a fair average return. Mr. Shoemaker. Yes ; I understand, and I am very glad to answer the question. It is fair to say, however, that in that time we have made some enlargements and betterments of our plant, the cost of which was taken out of our earnings. The Chairman. To what extent are eggs and butter stored in the interior sections — Iowa, for instance, in the Middle Western States? Mr. Shoemaker. I am not able to say. I do not know. You can get that information, however, from Mr. Marshall's bureau of the Agricultural Department. I am not familiar with the sectional storage of the various commodities. The Chairman. Is a large portion" of the egg supply stored in cold- storage warehouses in the interior and shipped to the east Mr. Shoeisiaker (interposing). In the case of my own house a very large amount of eggs, butter, and cheese moves to other points; The Chairman. Do you mean from your storage plant to another •storace plant? COLD-STOEAGE LEGISLATION, 253 Mr. Shoemaker. From a storage house that I am connected with ; yes, sir. The Chairman. To other storage plants? Mr. Shoemaker. No, sir; it goes to the consumer, through dis- tributing channels. The Chairman. Do many of your storage products come from other storage plants? Mr. Shoemaker. No, sir; it is very seldom that we have a car of any commodity that moves from some other storage plant. There is a service established over the Great Lakes for the carrying of butter and eggs from some Minnesota points, and they pass through storage frequently in Buffalo and bear a Buffalo storage mark, and then come on to us. But there is no necessity for the mark being on, as they do not remain in a Buffalo warehouse for 30 days; but it is customary for warehouses frequently to mark the goods when they come into storage, no matter for how long a time they remain. Our State law does not require dating and marking unless goods remain in cold storage over 30 days. The Chairman. You were speaking of apples? Is there a time limit on apples ? Mr. Shoemaker. There is none. The Chairman. I understand that there is in some States. Mr. HoRNE. It is not usual to have one. Mr. Shoemaker. I am not sure about it. The Chairman. What have you to say concerning the $50 tax sug- gested in the Hutchinson bill? Mr. Shoemaker. Do you not think it would be better to make a graduated tax ? It may be said that to some warehouses a $50 Fed- eral tax added to their State taxes wou^ld be regarded as discrimi- natory as between the large warehouses and the small warehouses. The Chairman. Do you pay a State tax? Mr. Shoemaker. Yes, sir. The Chairman. Do most of the States require the payment of a tax? Mr. Shoejcaker. Yes; I think so. The Chairman. What are the taxes in most of the States? Mr. Shoemaker. $25 a year in our State. The Chairman. That is uniform as to all warehouses? Mr. Shoemaker. Yes, sir. The Chairman. Would you have any objection to a Federal tax? Mr. HoRNE. A license tax? The Chairman. Yes; a license tax. Mr. Shoemaker. A Federal license tax — a moderate tax — I can see no objection to, if it is necessary to give force to the act. The Chairman. I believe you said your plants were inspected by the State authorities? Mr. Shoemaker. Yes, sir. The Chairman. Do you consider inspection important? Mr. Shoemaker. I think it is important for the cold-storage ware- houses to be kept in a sanitary condition, and to see that foodstuffs be marked according to the Jaw and that the rules and regulations of the department are being complied with. The Chairman. That is all. Thank you, Mr. Shoemaker. 254 COIiD-STOEAGE LEGISLATION. (The foUovring extracts from Foods and Markets were submitted :) TSE Val,it]]; of Cold Storage. A few years ago prison reform was one of the public demands. The public did not know exactly the type or degree of reform it wanted — in fact it dis- agreed with itself on just how far-reaching the reform should be. The vast majority of those most intere ted in the subject had never endured a prison term. In fact, they knew very little about prisons. They were public-spirited humanitarian men and women, however, whose weight is always thrown in the balance of right— the men and women who uphold the standards of living in this country and combat injustice. In the fractional minority were those who had served prison term^ — who knew prison life from the inside, who knew it too well, perhaps, or so it was thought, to be unprejudiced witnesses. It would not have been expedient for representatives, either of the majority or of the minority, to institute prison reform. How then was the reform to be brought about? In the only logical manner, of course. Individuals, un- prejudiced and above prejudice, and of high moral character, conr ented to enter the prison as prisoners and live the life of prisoners. From so intimate a contact with the problem, a constructive reform is gradually being evolved. Similarly, the public is now demanding a marketing reform, and at present is focusing on the cold-storage industry. The public does not know exactly the type or degree of reform it- wants — in fact it disagrees with itself on just what in the reform shall consist. The vast majority of those most Interested in the subject know nothing of the cold-storage industry. They are public- spirited citizens who demand justice and would maintain for the American people their high standards of living and a satisfying food ration. In the minority are the cold storers and food speculators — who, unlike the prison in- mates, have no whit of sympathy from the reformers. Certainly their word would not be regarded as unprejudiced, even though they are the men who know the business from the inside. Obviously, it remains for those wholly disintere ted but in a position to obtain the facts, to make a study of the cold, storage situation and make known those facts, as exhaustively as the public demands. This fundamentally i'-" the business of a State Department bureau of markets and f torage, and its duty in obedience to the public demand. To satisfy the public demand is what the New York State division of foods and markets is endeavoring to do through its bureau of markets and storage. A thorough going system of inspection for violation of the cold-storage law is in constant operation, but in addition to reporting cases for prosecution agents of the division are directed to report evils in general that come under their observation with constructive suggestions for their relief. Suggestions on the part of the public are likewise welcome and together, it stands to reason, result'^ of the combined efforts of consumer, cold-storage manager, dealers, and State Department agencies should be forthcoming. The exposition of the cold-storage industry that follows has been prepared with the end in view of bringing about a better understanding of the industry, its benefits, and its difficulties. THE PEEJUDICE AGAINST COLll-STOEAGE FOODS. The closing sentence of a recent United States agricultural bulletin (The Service of Cold Storage in the Conservation of Foodstuffs), on. cold storage, by I. C. Franklin, of the Federal Bureau of Markets, is as follows : " If the tradi- tional prejudice against cold-storage foodstuffs were removed, and the storage space of the country largely increased, much more could be done toward stabil- izing both production and prices of perishable foodstuffs." This is quite the opposite view to that held by the general public. The tra- ditional prejudice against cold-storage foods would seem to be due to two causes : First, to the belief that foods are deliberately held until they are Im- pure, and secondly, to the belief tliat the holding forces prices indefinitely beyond what they would be if cold storage did not exist. • Whii stored foods deteriorate.- — In the first in' tance, this prejudice undoubt- edly has arisen as a result of the consumer's personal experience with de- teriorated cold-storage products — a condition due either to the possibility that such foods were held in storage under ancient methods with old-fashioned equipment, or more likely to the probability that inferior foods were stored when the process of decomposition had already set in. COLD-STOKAGE LEGISLATION. 255 Old-fashioned storage methods are to-day practically a thing of the past. The concrete storage house with mechanical equipment has proved so practical a means of refrigeration that it has supplanted the iced storage in almost every instance. The consumer has therefore little or nothing to fear from foods held at irregular or improper temperatures. Bigh-grade products should he stored. — Practically the only danger in the storage of food lies with the condition of the food itself before it is placed in storage. It must be A-1 grade in every respect or deterioration will soon begin. This fact the wholesale merchant who places food in storage must be educated to appreciate thoroughly, although if he has had long experience he does not need to be convinced. The producer who sells to the wholesaler, the retailer who buys from him, and the consumer creating the demand are those toward whom a publicity campaign of repetition and reiteration of this principle must be chiefly directed. The public cold-storage manager who rents out space Is not responsible for' the condition of products entering storage beyond seeing that they appear to be in good condition when received. Invariably, if con- sulted, he would point out the imperative need for storing foods in prime condition and the false economy of paying storage charges on an inferior product, but once the space is paid for his responsibility ceases, provided, of course, he maintains the temperatures required and sees that the goods are removed within the lawful period of time. ■ The "wholesale merchant is fundamentally the responsible party. He is the man who should ascertain the condition of foods before putting them away^. He it is who knows what grade of products they will represent when removed from storage. Suppose, for example, that the wholesaler buys eggs from the country store, which ships to him the weekly collections brought in by the farmer's wife. If he buys these, he knows that he is not storing strictly fresh eggs. Some of them the farmer's wife may not have found within from two days "to two weeks from the time they were laid or they may have been brought into town over a hot country road for several miles on a warm day. Deteriora- tion will then have taken place, and such an egg will not compare favorably with eggs properly collected and stored for a period of six to nine months. What, then, is the wholesaler to do? He might better direct his purchasing to the large poultry farm where eggs are properly collected and shipped, several times a week. To be sure such eggs will be more expensive to the retailer and to the consumer, but they are worth more. The retailer will be well pleased to invest in storage eggs he can guarantee, and the consumer, once he under- stands, will appreciate a storage egg on which he can rely. Eggs collected promiscuously, on the other hand, can be utilized to advantage by the egg powder companies through early manufacture or else marketed locally for Immediate consumption. As the situation exists to-day, consumers have no conception of different grades of cold-storage eggs. They feel that an egg that has been held six months Is equal in value to any other egg that has been held six months. They suppose, and correctly so, that the two eggs rnust be about the same age. When an agg has reached the advanced period of six months consumers do not ask whether it may be 6 months and 5 days old or 6 months and 25 days old.. But in spite of the popular notion, how it spent the first 5 to 25 days is the really important question. It is this distinction that needs to be forcefully impressed upon the public mind, and when the consumer demands a uniformly high-grade storage product the wholesaler will make haste to meet his standard. What is true for eggs is likewise true for butter, poultry, meats, fruits, and all other storage products. Is there organised effort at price control? — ^A second source of prejudice against cold storage on the part of the consumer is the belief that the food speculators combine to hold their products in storage until they can name their own prices regardless of whether the food in the meantime remains wholesome or not. There are several ways of looking at this question. In the first place, let us suppose food control to be 'a possibility. In order to force prices upward the so-called speculators would necessarily need to have a monopoly over the storage of a given product as fast as it were produced and a monopoly of sufficient space in which to store as well. If they merely handled the over- supply that no one else cared to bother with — really a fraction of the annual production — it would readily be agreed they would scarcely be in a position to control the market. For the sake of argument let us consider one of the storage products in ill repute — perhaps cold-storage butter would be as unpopular as any. 256 COLD-STOEAGK LEGISLATION. The diagram on page 4 shows average butter production per year by months. The horizontMl line shows averiige monthly butter consumption. In May, June, July, August, and September there Is obviously a surplus pro' ductlon that balances the shortage in production for the remaining months. It is, then, thp surplus that is cold stored. And what relation does this surplus bear to the annual amount of butter stored? A trifle more than a tenth, it would appear, if the black lines are measured and the proportion worlted out, and that is what Federal specialists have found by investigation. (See United States Department of Agriculture Bulletin 465, Marketing Creamery Butter, p. 27: "About one-tenth of the annual production Is placed in storage where its quality is preserved at a temperature of zero Fahrenheit or below." ) Organized control of the butter market could scarcely be achieved with only one-tenth of the annual production controllable, especially when butter storage is engaged in by so many merchants in scattered territory and miscellaneous storage houses. " There's safety in numbers." ' In the second place, even suppose it were controllable, prolonged holding beyond a period of 12 months is definitely prohibited by State law, and the vigilance of State inspectors would make it practically Impossible for such an action to escape detection. But even if that law did not exist. It would not h^' to the interest of food dealers to hold the product beyond the 12-month period. For one reason, the new summer supply would be coming in and the product would be flush; for another, storage charges would continue to be p^id, and, In the meantime, the old product, now beginning to deteriorate, would be the more difficult to dispose of.' Since it is to the interest of the dealer to dispose of storage products— moreover, since he is. compelled by law to do so — he does not ask an unrea- sonable price or his product may not be taken off his hands. He is fl specu- lator only. in the sense that he has bought up off the oversupplled market a commodity on which he takes all risks, on which, of course, he eiipecta to make a reasonable commission. He can conjecture what the market will lie, but he can not possibly be certain. He knows that on the several com- modities in which he deals he will lose on some and gain on others. If he he can not , make a margin of profit on the year's business he gives up the business, and many a commission merchant has been compelled to do so. If there were in the fortunes the consumer dreams about there would be thousands of commission merchants where there are hundreds to-day. COLD STOBAGK STABILIZES PRICES. Contrary to the supposition of the uninformed, in general, instead of raising [trices cold storage tends to stabilize prices. It stabilizes prices in two ways: First, by creating a national market, and, secondly, by extending the product's natural season. If it were not for the storage house and the refrigerator car. New York and Michigan butter could not be marketed In California, and California oranges would not be an every-day essential to the eastern breakfast table. In other words, through cold storage the output of each section of the country is made available to all other section.?, thus enabling pach locality to specialize in the foodstuffs it is best adapted to produce. The radius of the circle that it can serve includes all the continental United States, and the product can thus be bought for practically the same price anywhere within this area. Again, as to extending the season: If it were possible to store a portion of the strawberry crop 12 months in the year, releasing quantities periodically from time to time, Is it not logical to suppose that the price would be higher than it normally is during the period of natural surplus, and that the same price level would continue approximately during the year? Instead, during a season when strawberries are plenty, you can have them in quantities at your own price, and in midwinter if you indulge they cost you $1.50 a qaurt. Butter is one of the commodities that admits of the extension of its seasonal production to 12 months' storage and accommodates itself to a national market. As a result its price does not fluctuate annually from 15 cents to $2 a pound. It more nearly maintains a level. 1 Economic forces are always exerting pressure to bring about the reduction of the storks In storage when the new season's product Is soon to become a factor in the market. To the original cost of the stocks must be added the costs of Insurance, Interest, Ftoragu charges, shrinkage, and a probable depreciation of value if the stocks are held too lonK.-- 'J'he Service of Cold Storage in the Conservation of Foodstuffs. (I. C. Franklin, Dniteff. States Department of Agriculture ; separate from Yearbook No. 145, 1917.) i COLD-STOKAGE LEGISLATIOK. 257 PoLD Storage Plants and State Regulatton. Our forebears, if they lived in the country or In small towns, were accustomed to keep their perishable eatables either down in the well, suspended in a bucket, or on specially constructed shelves, or In the cellar, which was always cool, and where the temperature remained nearly stationary, there being no such thing as a furnace to eat up coal and destroy their hard-won stores of vege- tables. In the cities, the ingenious devised many ways of storing perishable com- modities, while the great majority were content to " live each day as if their last," depending on the market to keep them supplied. VALUK OF COI.D-STOR\GE PLANTS AS ECONOMIC FACTOBS. Gradually, however, Americans being an inventive people, ice boxes were put on the market and immediately became necessities. At first they were small affairs, built on principles long since discarded, but what a boon they were. The good housewife was no longer obliged to hasten away to the market at crack o' dawn for fear her neighbor might get ahead of her and so have first choice. Slowly but surely ice for preserving purposes came into use, and with the introduction of central heating systems in our houses, the ice box became an Integral part of every houseliold, and enterprising men soon conceived the idea of converting entire buildings into cold-storage warehouses. Here tons of ice were packed in great zinc-lined rooms, built either above or adjoining other rooms into which the cold air was conducted by natural laws, until the temperature fell just a bit above or below the freezing point, as the case might be. These cold-storage plants were used to hold the surplus perishable prod- ucts entering the cities, enabling the consumers to enjoy fresh fruit of all kinds, as well as meats and fish. The purpose served by cold-storage plants, however, in the early stages of the development of the industry, was the temporary holding of eatables for short periods of time rather than for the purpose of stabilizing prices. Then came the invention of making ice by machinery and with it a wonderful development in the cold-storage buisness in all parts of the country. Another Impetus was given with the introduction of artificial cooling by the ammonia process, which did away with the use of ice for cooling pui-poses to a large extent. Under this system, known as the ammonia compression system, the production of cold is accomplished by the expansion or evaporation of liquid anhydrous ammonia. Cold storage to-day plays an important part in the stabilizing of our food markets. For illustration — take eggs: Before the days of cold storage the price of eggs fluctuated to the detriment not only the farmer and the poultry raiser, but the consumer as well. In the spring, when the great American hen got busy, she succeeded in pulling down the price of her output to a point far below the cost of production, while in the winter, when Madam Hen had to be cajoled into laying even three eggs a month, the price soared beyond the reach of the masses. To-day, however, when eggs are cheap in the spring, buyers go about gathering them from various sources and send them to the cold-storage plants where they are candled, graded, marked, and packed away. Then in the late autumn when the price of fresh eggs begins to soar, the cold-storage egg awakens from its torpid slumber, passes the candler again, and goes out into the market to do its bit toward keeping the price of fresh eggs within reach of humans. As another illustration of the important part played by cold-storage plants, take the case of meat during the late war. To supply three and a half to four millions of men with wholesome meats of various kinds was a gigantic task, even under the most favorable up-to-date methods of storage and distribution, and 20 years ago would have been considered an impossible accomplishment. Yet with the aid of cold-storage facilities our armies were fed fresh meat daily while in camps in this country and in France. To pass from ancient history to the present, we must realize that a busmess, in its infancy some 30 years ago, has grown into a lusty giant who, if per- mitted to go his own gait, might in some cases trample on the rights of others, and so in the natural order of things he must be restrained and made to realize that while he serves a most useful purpose in the community, there are certain rules he must coiif'DERS0N. Was there a limitation or control on the export pork price during the war ? Mr. Weld. There was a control, not a limitation. Well, there was a limitation to neutral countries, was there not ? Yes ; it was all con- trolled bj^ the Food Administration, and the orders for foreign ship- ment were taken through the Food Administration, but there was no limitation on exports unless it was to neutral countries. Mr. Anderson. Going back again to the question of taking off the regulation with reference to the minimum price on pork products, do you not know that there was a difference of opinion between the Food Admanistration and the War Trade Board or the War In- dustries Board, I do not know which, with respect to the effect which that removal would have? Mr. Weld. I do not happen to know about that, Mr. Anderson. Mr. Anderson. There was such a disagreement, the Food Adminis- tration claiming that the effect of taking off the limitation would be to permit the price to go up, while the War Industries Board claimed that the effect would probably be the opposite. Now, as a matter of fact, the result was, at least, whether it was the effect of taking the minimum off or not, an increase in the price of pork; is not that true? Mr. Weld. It began to go up about that time. Mr. Anderson. Is it not true that prior to that time you had en- deavored as hard as you could to keep the price as nearly as you could down to the guaranteed price? Mr. Weld. No, sir; I do not know what you mean by tried to keep it down. Of course, we buy hogs on the open market at the prevailing market price. We have absolutely no power to raise or lower the price except as we, as large individual purchasers, affect the market as buyers, as individual buyers. Mr. Anderson. As a matter of fact, was it not a part of your un- derstanding and agreemnt with the Food Administration that you would endeavor to keep the price as nearly down to the minimum as possible? COLD-STOKAGE LEGISLATION. 281 Mr. Weld. No, sir ; there was never such an agreement, unless I am very greatly mistaken. There never veas such an agreement. Most of the time that the minimum price was set by the Food Administra- tion we paid over that minimum. It was only a part of the time that we bought at the minimum. We did not want to buy at the minimum, because it meant that the market price really should have been lower, and that meant, in turn, that we did not know at all whether we would come out whole on our pork products in selling them. Mr. Andeeson. I do not understand what you mean when you say that buying at the minimum price would mean that the price really should be lower. Mr. Weld. I mean this, that the market price would have been lower. When we were forced, or when we agreed to pay the mini- mum price set by the Food Administration, it meant that if there had been no minimum price, we would have been able to buy hogs at a lower price, provided the receipts had been the same. It may be that the guaranteed price induced heavy shipments, and we believe it did. Mr. Anderson. If it did not it was a failure, because that was one of the purposes, was it not ? Mr: Weld. Not necessarily; to induce heavy production. It in- duced heavy receipts during the last month or two it was in force, I think because they did not know how long this guaranteed price was going to last. Mr. Anderson. Notwithstanding those heavy receipts in the pre- ceding months prior to the taking off of the limitation of the mini- mum price, the price immediately proceeded to go up after the mini- mum price was taken off. Mr. Weld. It began to go up about that time; it began to go up three or four weeks before it was taken off. I have not the figures on that, and I do not remember exactly, but the taking off of the minimum price had absolutely no effect on the increased price that occurred after that, except in so far as it had induced abnormally heavy shipments to market and left small receipts from then on. Mr. Anderson. You just made a statement a moment ago with reference to Mr. Prebey's connection with Swift & Co. Now, as a matter of fact, was not Mr. Prebey connected with Prebey & Co. during the earlier part of the time that he was with the Food Ad- ministration, drawing a salary and being paid by Swift & Co. or one of its subsidiaries? Mr. Weld. I say that a few months after he went with the Food Administration he severed his connection with Prebey & Co. Mr. Anderson. During the early part of that time he was actually employed by Prebey & Co., and received a part of the profits of that concern under contract? Mr. Weld. Yes, sir, just as a great many other men connected with other industries came here as doUar-a-year men, and received sala- cies from their companies, and continued to do so throughout the war, even after this rumpus was raised in connection with the rep- resentatives of the packing industry. They never interfered with any of the other industries. I know gentlemen who served through- out the war for either a dollar a year or a small salary, and contin- 282 COLD-STOEAGE LEGISLATION. ued to receive salaries from their own corporations, and the Gov- ernment was glad to avail itself of the expert services of such men. It should have been just as glad, and in fact the Food Administra- tion was just as glad, to be able to avail itself of the services of the men in the packing industry in that way. Mr. Anderson. I am not undertaking to pass on the ethics of the proposition, either with respect to Mr. Prebey or anybody else. I simply want to get at the facts. Is Swift & Co. engaged in the operation of public warehouses, public cold-storage warehouses? Mr. Weld. Swift & Co. has not enough storage space for its own use. When we do not happen to be using all our space, as occurs at some seasons, we do rent space to outsiders, but more commonly we have to hire space from other warehouses to help us store our own products; more commonly we do that than we rent out any space to anybody else. Mr. Anderson. So that the figures you gave showing the amount of cold-storage space actually owned by Swift & Co. is not an actual index of the amount of cold-storage space they employ ? Mr. Weld. Yes, sir, it is ; that includes our own space. Mr. Anderson. You made a statement here with respect to the amount of cold-storage space which Switf & Co. owns, as I supposed, as against the amount owned by others? Mr. Weld. Freezer space I gave. Mr. Anderson. Now, I understand you to say that in addition to that they employ outside space ; is that correct ? Mr. Weld. Employ space in public warehouses sometimes, when we do not have room of our own, yes. Mr. Anderson. So that it would not be an entirely accurate index as to the amount of space used by Swift & Co., the amount which they actually own, would it ? Mr. Weld. This is merely figuring what we own, not what we use. That is what I meant to make clear when I presented the figure. The actual part that Swift & Co. plays in the holding of cold-stor- age products you may get at better from the figures of the actual quantities owned by Swift & Co. held in cold storage at large throughout the country, and I have given you them to show you that it runs along on pork from 4, 6, 8, to 10 per cent of the total cold-storage holdings; about 20 per cent on eggs, and in the case of butter and poultry, 6 per cent — something like that. Mr. Anderson. I understood you to take some exception to Sen- ator McKellar's figures with reference to the amount of products held in cold storage by the five large packing groups. I have before me a report of the Federal Trade Commission covering the period from January 31, 1916, to July 31, 1917. That report shows tliat the' portion of frozen beef held by the big five, in comparison with the amount held by all interstate slaughterers, ran during that period from 93 to 96.9 per cent. Do you have any doubt of the accuracy of those figures? Mr. Weld. State that again, will you please? The proportion that the five large packers have of the frozen beef, of the total inter- state slaughterers? Mr. Anderson. Yes. coijD-sx'oeagb legislation. 283 Mr. Weld. I imagine that would be approximately correct. Swift (L Co.'s proportion of all frozen meats, alone, was a little over 20 per cent — probably higher than that — on frozen beef, alone. Only the larger packers were equipped really and had the freezer space and temperature to take care of that frozen-beef business that was brought about by the war. Mr. Anderson. On smoked ham and bacon the same proportions seem to run during the same period, from 62.3 to 66.7 per cent. Mr. Weld. The only difficulty with the figure on those pork prod- ucts is that there would be a considerable amount in the few hun- dreds of local packing houses that are not classed as interstate slaughterers and do not have Federal inspection. In so fai' as that is the case, that figure is misleading. Mr. Akdeeson. How great a factor is that element in this deter- mination ? Mr. Weld. I do not know exactly. I suppose that the total output of pork products of all the inspected slaughtering houses would account for 75 per cent of the total. Mr. Anderson. The proportion of dried salt pork held by the Big Five as against all interstate slaughterers ran, according to this report, from 63.3 to 74.7 per cent. Mr. Weld. That sounds very reasonable. The five large packers account for about 70 per cent of the total slaughter in interstate houses of all animals together. It runs up around 80 per cent for cattle and around 60 per cent for hogs, and averages about 70 per cent for all animals, and those figures, it seems to me, are in line with our percentage of total slaughter of interstate slaughterers. Of course, mind you, that is the five packers together. What Swift & Co. can speak for is its own proportion, which is only 22 per cent of the output of the interstate slaughterers, and it is only about 12 per cent of the total meat supply of the country. You understand that the basis of the output of the interstate slaughterers is not a fair basis in considering the percentage put out by the big packers, because we come in contact with the local butchers, and even the farm- ers kill as much as we do with the stuff that is shipped by interstate slaughterers. Wlien selling in practically every town in the country, we come in direct competition with everything that is killed by the local butchers, and what I mean by the local butchers are the little retail butchers out in the country that kill two or three head a week themselves, so that the proportion of the total meat output of the country handled by the five large packers is less than 40 per cent, and the proportion of the total output of the country handled by Swift & Co. is onlj' about 12 per cent. Mr. Anderson. Of course, I do not agree with that 40 per cent figure. Mr. Weld. You can use either basis. Mr. Anderson. If it is based upon the census ratio of 56 per cent of interstate slaughterers as against 44 per cent of other slaughterers, because those figures have been shown time and time again to have been erroneous, and the percentage, I think, of interstate slaughter- ers has very materially increased since those figures were prepared. Mr. Weld. 40 per cent is a very liberal estimate. The best fig- ures we have been able to find figured it out at 35, but we say less than 40. 137690—19 19 284 COLD-STOEAGB LEGISLATION. Mr. Anderson. Do you think the percentage handled by the Big Five has increased since 1904, or decreased ? Mr. Weld. I think, if the Federal Trade Commission's figures are correct, it shows it has slightly increased. Mr. Anderson. The Bureau of Corporations found in 1904 that the slaughter of cattle by the Big Five companies was then the same relative proportion of the business in 1904, and was in excess of 45 per cent, so that if it has increased, your figures would appear to be a somewhat low estimate? Mr. Weld. Their figure was 45 per cent of the total slaughter in the country. Mr. Anderson. I so understood. Mr. Weld. I do not remember that. I know Mr. Hoover made a public statement while he was Food Administrator to the effect that the packers handled less than 40 per cent. We had been saying about 33 or 34 per cent, but to be conservative, when we have been asked that question recently, we have said less than 40 per cent. Mr. Anderson. We will pass that anyhow, as it has no particular bearing on this proposition. Keferring to the farm price of poultry, you indicate there is an advance in the farm price of poultry from June, 1918, to June, 1919, of about 5 cents, taking those figures from the yearbook of the De- partment of Agriculture, I think, is that correct? Mr. Weld. No ; from the Monthly Crop Reporter. Mr. Anderson. Those figures do not represent, do they, the figures actually received by the farmer, but are a figure arrived at from making certain deductions from the market price on that date ? Mr. Weld. I do not know how those figures are arrived at, Mr. Anderson, but that increased price that was paid for goods into stor- age we could verify to your satisfaction from our own books, if that is what you mean. , Mr. Anderson. I do not want to question the figures, but I simply do not want it to appear as a positive fact that the prices of the Monthly Crop Reporter represent anything more than the prices figured back from the market prices of the articles to get the farm price. Mr. Weld. Well, I do not know how they get at that farm price, but if they use the method of figuring back, fam not sure but what that might be a fairly accurate way of comparing last year with this year. If they use the same method of figuring back, it means that the wholesale price they figure back from was 5 cents higher this year than it was last year. Mr. Anderson. In estimating the potential or actual influence of stocks in cold storage, you have compared the amount in cold stor- age with the total production. Now, as a matter of fact, is not the potential or actual influence of the amount in cold storage on the price more closely represented by the ratio of the amount in cold storage to the prevailing output? Mr. Weld. Well, possibly; yes, although the total production for a year, and knowing what the total supply is for the year is perhaps a more fundamental thing in determining the general price level. It is on the basis of what the next receipts or estimated receipts not only are but will be that the market price of to-day results. How- ever, if there were any way of getting at the total amount that was COLD-STOEAUE LEGISLATION. 285 in transit and was in the retail stores, and on the way from the farm to the consumer, I imagine it would be a considerable amount. I be- lieve, however, that the fundamental fact is the total supply or the anticipated receipts over a period of weeks or months, rather than just what it happens to be to-day, and certainly a few days' supply in storage is an inconsiderable factor. Mr. Anderson. You mean to say that the amount of product in cold storage, particularly as .to eggs and butter and the more per- ishable products, is an inconsiderable factor in determining the price ? Mr. Weld. As compared to other factors, yes, in determining the general price level. It, of course, has its effect. Not so much the amount of storage, but the total amount being bought affects the price during the season of surplus production by people buying goods for storage increasing the demand at that time. Mr. Anderson. The only conclusion that I could draw from that statement is that the reason why that is true is either because of a natural or artificial cost, or the amount which has gone out of storage from time to time is never sufficient to have a marked effect on the price. Mr. Weld. Well, it does have an effect on the price when it is brought out of storage, and being in storage, in keeping the price down. If it were not for those storage stocks the prices would be higher. The point is that if it has any effect on prices, it would cause the price to be lower. It is not due to any manipulation or any monopoly power, especially as the increased price we can show has been passed on. . Mr. Andeeson. What do you mean by passed on? Mr. Weld. To the farmer, in the shape of higher prices that we have had to pay for storage products. Mr. Anderson. You stated, Mr. Weld, that the amount of poultry and butter products handled by Swift & Co. was only sufficient to take care of Swift & Co.'s own customers. Mr. Weld. Yep, sir. Mr. Anderson. Your customers are constantly increasing, are they not? Mr. Weld. Oh, slightly. As a matter of fact, our stocks are not large enough. I was just going to speak of that in connection with this question of hoarding. It is generally though by a good many people that anybody that holds goods as we are holding eggs, poul- try, etc., is hoarding. Now, the point is that these goods that we hold we have an outlet for. We are buying them to supply our trade. Now, as a matter of practice, we do not buy enough to supply our trade with storage products. In other words, we play on the safe side. We rather fall short; we do fall short of our total needs in supplying our regular trade. We deal with thousands and thou- sands of retailers all over the country through our branch houses and car routes. We have a fairly definitely established trade, but in putting goods in storage, we fall a little short of the actual needs of that trade, in order to be on the safe side and not to have any left over. That means that when we do fall short and we need any more commo'dities we have to go to other dealers who may have more than they need, and buy goods from them. 286 COLD-STORAGE LEGISLATION. Mr. Anderson. When yoiu' percentage of the butter and poultrj' business, of the total butter and egg business is as much as your per- centage of the meat business, you will be able to supply all of your customers with butter and eggs, I take it. Mr. Weu). I do not know how that is now. We are able to supply all our customers in butter and eggs now, except we always fall a little short on storage goods, as a matter of protection, and we have to buy from other dealers. Mr. Anderson. Is it not a fact that within recent years, in addi- tion to selling the ordinary butcher trade, you now sell to a very considerable portion of the grocery trade ? Mr. Weld. I believe we do ; yes, sir. Mr. Anderson. So that you have added a good many customers in the last few years in that way? Mr. Weld. Yes, sir. We, of course, are develojping our business and utilizing our sales organization and sales machinery as much as we can. Mr. Anderson. Of course, you expect to develop the butter and egg business? Mr. Weld. I understand we have always sold grocers. There has been no change in that respect. Mr. Anderson. You have always sold grocers ? Mr. Weld. Yes. Mr. Anderson. But not in the same proportion, heretofore as in the last five years? Mr. Weld. There has been no change in the last four or five years. I am sure of that. Of course, we have always had lard and things of that sort to sell to the grocers as well as to the meat dealers. Mr. Anderson. Let us get the record straight on Mr. Cotton. Mr. Cotton was a partner of Senator Spooner, was he not? Mr. Weld. I believe he was. Mr. Anderson. Spooner. and Cotton were at one time counsel for Wilson & Co.? Mr. Weld. I do not remember the details on this, Mr. Anderson, but I think that was before Mr. Cotton was connected with Mr. Spooner, that Mr. Spooner was connected with Wilson & Co. I am not entirely clear on that. If you have the record there, Mr. Anderson, I would be very glad to have you read into this record Mr. Heney's attempt to connect up Mr. Cotton through a chain of connections in having been seen at a dinner with somebody Mr. Anderson. This covers a considerable territory and appears in a number of different places in the record. I do not know that it is worth while to put into this record testimony scattered all through the hearings with regard to Mr. Cotton's connections. I will read this out of the testimony, however : Mr. Henby. The point I ;iin making; is a" to whether he (Cotton) had any connection -mth the packers. I say that JMr. Moore, of Paul Cravath's firm, having reorganized the Wilson Co., and Mr. Cotton having formerly been in that firm, and Cotton having been identil-.ed with Harriman, and Harriman more closely allied with Kuhn, Loeb & Co., and Kuhn, Loeb & Co., at that time own- ing 20 per cent of the stock of Wilson & Co., the connection was too close for him to be considered entirely disconnected with the packing Interests. ^ Mr. Weld. That was what I wanted you to read, Mr. Anderson. It is absurd. COLD-STOEAGE LEGISLATION. 287 Mr. Anderson. That is in for what it is worth. What do you mean when you say it is absurd ? . Mr. Weld. I mean, to insinuate that there was any connection with the packers that caused him to use any undue influence or favoritism for the packers. Mr. Anderson. The import of that statement, if I interpret it cor- rectly, was that his connections had been such as to make him not entirely disinterested, so far as the interests of the packers were concerned. . Mr. Weld. I do not think, if you analyze that, that you can find any direct enough connection to form the basis for any such insinua- tion as implied in that, Mr. Anderson. The Chairman. To the best of your knowledge, was Cotton ever connected with the packing houses ? Mr. Weld. No, sir. The Chairman. As an attorney or stockholder? Mr. Weld. I do not believe he ever was. , The Chairman. You are familiar with the hearings? Mr. Weld. Yes, sir ; and the fundamental fact in connection with all that is that you can not lay your finger on a single instance where he unduly favored the packers when he was with the Food Adminis- tration, and we can give you any number of instances where we con- sider that we got unfair treatment from him. Mr. Anderson. What proportion of the Swift storage holdings are private, and what part public storage ? Mr. Weld. Nearly all private. They are for our own business. Mr. Heflin. I want to ask you a question in connection with a statement you made to Mr. Tincher a little while ago. Did I under- stand you to say that when the minimum price was fixed on hogs, that you thought it advanced the price, and that . you could have bought hogs at a cheaper price if the minimum price had not been fixed? Mr. Weld. That was true a part of the time. Most of the time when there was a minimum price fixed we paid more than that minimum price, or whatever the minimum was. There was one period especially last winter when the price did go down to the minimum, and when we would have undoubtedly been able to buy hogs at a lower price if it had not been for the minimum fixed by the Food Administration. Mr. Heflin. You mean that the minimum price at that time was a benefit to the producer ? Mr. Weld. I think it was, yes, sir; I think it was a benefit to the producer. Mr. Tincher. I want to get this straight in the record. You are here as a representative of Swift & Co. Do I understand that you believe that the fixing of a minimum price was a benefit to the producer ? Mr. Weld. I say it was a part of the time at least. It meant espe- cially last winter "that the producer got a higher price than he Avould have got if there had been no minimum price fixed. Mr. Tincher. You say that in the face of the fact that, with the bigger production this year, a larger production than has ever beeii known, the price has advanced some 5 or 6 cents a pound since the removal of the minimum price ? 288 COLD-STORAGE LEGISLATION. Mr. Weld. Yes, sir. I qualified by previous statement with this statement, that possibly the minimum price induced much heavier marketings than would have occurred, because of the fear that the farmers would not get in under the minimum price. That may have made the price, say during January and February of this year, lower than it otherwise would have been. What I mean is that it would have driven the market to a lower point if there had not been any minimum price. Mr. Tin CHER. Let us see if I am clear on this. Take the month of June of this year. How did the number of hogs on the Chicago market compare with the number in June of last year? Mr. Weld. I have not those figures here, Mr. Tincher. I would be glad to furnish them. Mr. TiNCHEK. Well, you know, as a matter of general informa- tion, that it was a much larger number of hogs, do you not? Mr. Weld. I do not know that. I have the figures here on the exports of all the products, and the exports of all products in this June were very much larger than they were last year, which is the principal factor in having kept the price up. Mr. Tin CHER. You have more hog products in cold storage now than you had last year? Mr. Weld. No; the hog products in storage this year are about the same as last year. Mr. Tincher. The Bureau of Markets' figures submitted here the other day covering all cold storage handled showed a consid- erable increase. Mr. Weld. They possibly did; I am not sure on that. I have here the figures of the Bureau of Markets, which show that the receipts of hogs in June, 1919, were less than they were in June, 1918, in 60 houses. They were 3,789,000 in June, 1919, and 3,987,000 in June, 1918. Mr. Tincher. How was May? Mr. Weld. In May it was larger in 1919 — 3,800,000 as against 3,400,000 in 1918. Mr. Tincher. I knew one of the months had increased, and I had not been out where the hogs grow lately, and I did not remember just what month it was. May is since the minimum was taken off, was it not? The rtiinimum was taken off when? Mr. Weld. The 1st of April— March 31. Mr. Tincher. And the minimum price fixed was what? Mr. Weld. Seventeen and one-half cents. It had been higher than that last October, November, and December. ' Mr. Tincher. What was the price of hogs on the 1st day of July of this year in Chicago ? Mr. Weld. On the 1st of July the top was around 21 or 22. Mr. Tincher. What is the high price? Mr. Weld. $23.50 or $23.60 per hundredweight in Chicago. Mr. Tincher. There never was any price like that while Mr. Weld. No, sir. Mr. Tincher. The high price of cotton, for instance, was reached during the warj was it not? Mr. Weld. Yes^ sir; I believe so. Mr. Tincher. And it had no minimum price fixed on it, did it? COLD-STOEAGE LEGISLATION. 289 Mr. Weld. No. Mr. TiNCHER. So it is just a little hard for me to figure out why you say that the fixing of a minimum price on hogs, which never reached their maximum price during the war, was a benefit to the producer. Mr. Weld. It was a benefit to the producer in that during the extremely heavy receipts of January, February, and March it kept the price from going lower than it would otherwise have gone. I find here that the receipts for January, February, and March of 1919 were nearly 14,000,000 hogs, and for April, May, and June they were only about 11,000,000 hogs; in other words, the receipts since the minimum price was removed have been considerably lower than they were. Mr. TiNCHER. Let us see if we are entirely clear about that: Would you attribute that to the change in the price, or is not that due entirely to the season of the year? Mr. Weld. It is due partly to the season and partly to the fact that undoubtedly more hogs were marketed before the minimum price was removed than otherwise would have been marketed. The receipts for January, February, and March. of this year were con- siderably in excess of the receipts for the same three months last year. Mr. TiNCHEE. That is due to the patriotism of the men that raise hogs, because for those months last year, 1918, under the minimum price fixed by the Government, there is not any dispute but what the producer of hogs, every man that fed a hog weighing 200 pounds, lost $5. Mr. Weld. I do not know about that. I do not think that the fixing of a minimum price by the Government had anything to do with it at that time, because the hogs sold for away above the mini- mum during that year. The minimum did not do any good one way or the other, except as a guaranty in the long run that they would not get less than that. Mr. TiNCHER. Your institution, Swift & Co., during the period that the farmer was losing money in the production of these hogs, was not losing any money in handling the hogs, was it ? Mr. Weld. I do not remember. I do not Imow how it was at that time. I think, on the whole, we have been making money on hogs for the last couple of years. On cattle we have had some very serious losses. Mr. TiNCHER. The same man was regulating you that was regu- lating the producer at that time, and that was this man Cotton ? Mr. Weld. Yes, sir, I would like to say another word: I object to the possible implication that may lie beneath Mr. Tincher's re- mark, because the Food Administration limited our profit to a pre- war basis, what amounted to a prewar basis, and although I do not know what hog producers have made, I imagine that on the whole they have been as well oflf as packers, that is, in the long run during the war, but the point is that I think the implication that Mr. Cotton favored the packers and worked against the interests of the farmers is hardly fair. I am not a defender of Mr. Cotton. If you could have heard how we talked about him some of the time, especially when the profit limitation was being put into effect, you would not 290 COLD-STORAGE LEGISLATION. make any such insinuation that he had favored us. The facts do not bear out the insinuation at all. The Chairman. In regard to price fixing the price of hogs was based on the price of corn, was it not ? Mr. Weld. Well, it was based on — there is a fairly definite rela- tion between them. The Chaieman. How many pounds of corn was estimated would be required to make a pound of pork ? Mr. Weld. Ten, or 11, or 12. The Chairman. Was it not about 15 pounds? Mr. Weld. Thirteen pounds was used as a ratio by the Food Ad- ministration, but I think that most statistical studies on that show that that was a little high, as an extra encouragement to hog pro- duction. I think 10 or 12 pounds is the usual amount. The Chairman. At the time it was estimated at 13 to 1, 13 bushels of corn to make 100 pounds of pork? Mr. Weld. Yes, sir ; it was on that basis that the ratio was estab- lished. The Chairman. The purpose was to deal fairly, of course, with the farmer as well as with the packer? Mr. Weld. Yes ; but, as I say, I think it was put a little high to encourage hog production, if possible.. The Chairman. Com sold during all this time for $2 and over, did it not? Mr. Weld. Not all this time; no, sir. The Chairman. Much of this time. Mr. Weld. No; a great deal of the time I think it was $1.75 or thereabouts; $1.50 to $1.75 in Chicago. Of course, the price quoted was the Chicago price. The average price for corn to the farmer on his farm was a great deal below that. The Chairman. We are quoting the Chicago price on hogs. If you take the Chicago price for one you must take the Chicago price for the other. Mr. Weld. As I remember it, the Food Administration consid- ered the actual price as food to the hogs on the farm. I may be mistaken on that. The Chairman. Can you state positively what the market price of corn was? Mr. Weld. No. The Chairman. It was over $2 a bushel a part of the time. Was not the price of hogs at that ratio much less than the price of corn? Mr. Weld. But only enough to let us get out whole with a rea- sonable profit in the selling of hog products. The Chairman. That would bring hogs up to at least $24 a hun- dred. Mr. Weld, if the ratio is correct and if the prices that you are using are correct. The Chairman. Mr. Cotton controlled the price of hogs and all meats ? Mr. Weld. They were controlled The Chairman. I ask, did Mr. Cotton control them; he was the purchasing agent? Mr. Weld. He had an influence over the price ; yes. COLD-STOBAGE LEGISLATION. 291 The Chaikjian. I understood you to say he had absolute control, and that he did take control of it. Mr. Weld. He influenced it very strongly, but I do not say he had absolute control. The Chaibmajv. He Avas the principal buyer. He was buying for the foreign countries, as well as for the Army and Navy. ■Mr. Weld. But that was onlj^ a quarter of the production of the United States that he was buying. The Chairman. It was in his power to put the prices up or down ? Mr. Weld. He had that in his power. The Chairman. He could have put it down to $10 or up to $30. It had to come through him. Mr. Weld. For a small part of the total output of the packing houses. The Chairman. The point we make is this, that the farmer, re- ceiving only $15.50, as compared to the value of corn at $26, was dis- criminated against. That is what the farmers have been complaining about. Mr. Weld. I do not loiow about that, except I know that on that basis your figures that you have used are not comparable. I am sure that there was no such loss to the farmer — there could not have been at that time — of $8 a hundredweight. The Chairman. Corn sold at about 4 cents a pound or $2 a bushel. Mr. Weij>. Then, we probably had our price of corn too high, and as I have said, it does not take 13 bushels of corn to make a hundred pounds of hogs. Mr. Anderson. Well, if the hog prices are high, corn is high, and it is said that it takes 1,300 pounds of corn to make 100 pounds of h«>g. Mr. Tincher. Well, one of the real troubles was that they fixed the price of hogs on the Chicago basis without any reference to freight, and then took into consideration the feeding of the hogs under the ' most favorable circumstances and did not take into consideration the various prices of corn in the different localities of the United States. While it might be in some localities, it would be possible to produce hogs somewhere near the figure, but in the average locality it could not be done. That was the real condition, wasn't it? Mr. Weld. I believe so ; I am not sure of that. Mr. YoTTNG. Corn during the war was sold for the highest price that ivas ever known, wasn't it ? • Mr. Wem>- I helieve so. It. is higher still, now. I might mention m coiinection With these high prices of hogs that last July Mr. Young (interposing). It was caused by the high price of corn, also, was it not ? Barley, rye, oats, and all such products were higher during the war than before ? Mr. Weld. I think so, with the possible exception of during the Civil War. Mr.YoTjNG. And there was no price fixed by the Government on sorn, oats, barley, or rye at all. Now, Mr. Tincher made a compari- sonof the prices of hogs, which he said was fixed at 15 cents; com- paring that with the price of cotton. I do not see where the compari- son holds good ; but during the past five or six years there has been a great reduction in the production of cotton. There have been some 292 COLD-STOEAGB LEGISLATION. 10,000,000 to 12,000,000 bales for five years successively, which is something that never happened in the industry, and we have a loss of production of nearly 4,000,000 bales, and that would cause a good deal higher prices, whether there was any war or not, don't you think so * Mr. Weld. It certainly would have its effect. Mr. VoiGT. Do you know what hogs sold for in Chicago yester- day? Mr. Weld. No ; I do not ; somewhere around 22 cents, I guess. Mr. VoiGT. Do you know corn went down 8J cents per bushel and that pork went down $3.50 ? Mr. Weld. No ; I did not know that. Mr. VoiGT. I thought I would tell you. Mr. Weld. In connection with this matter that we have been dis- cussing, the point that I make is that we only buy enough to supply our trade, our own customers, and it seems to me that if the policy of the Government^ was to force the goods out of storage, it has a considerable element of danger. For example, suppose that some official of the Department of Justice should find that in one cold- storage house we had a certain number of cases of eggs, and, with- out understanding the situation, he should say to us that we were hoarding; that this is surplus stock, and should be thrown on the market. If that practice should become common and the stock should be thrown on the market now, it is true that it might reduce the prices temporarily, but that might be extremely serious next winter, and that would result in higher prices next winter, and therefore any attempt to force the present stock on the market is an extremely dangerous policy. Now, a word about the quality of storage goods, Probably you have had enough information on that. The testimony that has already been given is that cold-storage goods can be kept wholesome over a year, for an indefinite period of time, and that the principal factor regarding cold-storage goods is the quality of the goods when < they go into storage rather than the length of time which they are held. With regard to that and the possible length of time that, we hold cold-storage goods, we have constructed a working table for the use of our officials which shows the months when the goods go into stor- age and the limit of time which they can be held. That is a rather ' interesting card, and I am going to have Mr. Jackson to explain it to you. (The card referred to is printed in the record in full, as follows:) OOLD-STOEAGE LEGISLATION. 293 O 6 a < » S 09 i 75 Sell. Do. Do. Do. Limit hold Mayl. ? d 1 Sell ...do.... ...do.... ...do.... Limit hold Jan. 1. 1 11^ store.... ...do.... ...do.... Sell ...do.... ...do ...do.... II Is CQ i2 £ to ; Sell ...do.... ...do.... ...do.... Ijmit hold Jan. 1. 1 ^ 02 c Sell ...do-... ...do.... ...do.... feS CO Sell ...do.... ...do.... ...do.... Limit hold Jan. 1. « £ 1 •321 1 a. c C 1 odd d d c A & s 1 1 ...do.... Limit hold Oct. 1. 1 ...do.... Limit hold Oct. 15. 2 a. Sell ...do.... Limit hold Nov. 15. i pigeons. m . ^ : : : m : re j-^ d d d S^ rt 3~Ti xi -e 3,133 rem : : ; " i-^ a,; : J d . ,- 73 T3 T d •0 t: 1*1 Ol Ill QD * -J d d i 1 1 1 ' d c ■0 -c Hi m Hen turkeys. ma Rod -o xJ -a "jpa 3 ' i i "^ 1 ma : ^ : : m mo : i : m 1 fa > - (B - 52 i m : ^ d d c ■ . !§ T) ■:! i: re • < d c ■a • t: 1 ■0- m tea 6660 fi'oi;- : ■a ■o tj w 2'«^ ■ : : ': : ■ i re 2 2 •do d d d d 9o-t^£ c ^-O-C T3 -^ t: -o TS 3,c SJ-o T ™ ; : ; : '; : ; mS c ' d d d d d S'S.ir- : £ c •g'O'a ■« -0 ■a "J'fl 3 ■ S ■^ re : ; : ; . " '^ : ^ c 5 'II I I 'SS © oj mi: : ; '-'m \ 3 3 \ ^■f ^ ^. si • 3 D » ) c J 5 s 36 ; 1 5 1 51: i I— 1 !_, 73 O go 8 -"! ■sag ,H '3 -S .. 60 S ca « o T3 . CQ 5o^ UOUJ-STOBAGE LEGISLATION. 295 Mr. Jacksox. This card ^Yas gotten up about six years ago, about the time when they had some other questions up on the cold storage. It has always been our policy not to carry storage products over from one season to another. So, in order to get those instructions out to the different ones connected with us, the company put them out in this form, and it is rather interesting. We start out with eggs, and it will show — the word " store " will show — ^the time when production is heaviest and when a surplus is produced. You will notice, in speaking of quality, it speaks of April quality. May quality, and June quality. April-quality eggs are produced, of course, during March and April ; and they are the best eggs for storage, for the simple reason that they are produced during the time of the year when we have cold weather. The farmer holds his eggs for a week or 10 days. If the weather is cool, the eggs do not deteriorate as rapidly. The fact also is that during March and April the hen is more thrifty and produces what we call strong eggs, which are much better, so that we place the limits on April eggs as January 1, as the limit. May eggs aren't quite as good, the cheapest quality is not quite as good. We aim to move them December 1. Then, you come down to June and July, when the, eggs are not as good to go into stora:ge and, naturally, won't keep as long, and so the limit for keeping them is fixed at November 1 and October 1. Now, there are four grades of what we call our best eggs. We have what we call a trade egg, which egg consists of a small egg and an egg that is just slightly dirty. An egg that is very dirty won't carry well in storage, because it takes on mold. But this trade egg — we have what we call an export trade — it is shipped to such as the Cuban trade, etc., and also to the bakery trade. And we have another egg called the Diamond D egg, that is still inferior. And then there is the frozen egg, which is a very interesting product. During the last few years the frozen-egg industry has increased very rapidly. Ten years ago these eggs — the eggs that are frozen— were carried practically as a loss, because a frozen egg is made up of eggs with cracked shells and eggs that would not carry in storage, and instead of wasting them we now break them out into buckets or containers and freeze them. The frozen eggs are put up at ware- houses that are at the present time under practically Government inspection. There are probably only a dozen or 15 of those houses in the country, and they are inspected by Government officials. Another thing in connection with the frozen eggs is that they are given to the trade all the year around now, so that the question of the length of time that the frozen eggs are in storage does not cut so much figure. The big wholesale bakeries use the frozen eggs. They take them the year around, so that the frozen eggs that are put in storage during this month will probably be taken out during August, because the trade demands them every month so that it does not make such a difference. Mr. Heflin. Do you break the eggs? Mr. Jackson. We break the shell and let the contents drop out into a bucket or a container, and we mix them up and seal them and put them into storage at a very low temperature — at a tempera- ture from zero to 5° below. 296 COLD-STORAGE LEGISLATION. Mr. Heflin. They are scrambled while they are raw? Mr. Jackson. Yes, sir. Mr. Heflin. How long will they keep ? Mr. Jackson. Oh, a frozen egg, I would say, would keep indefi- nitely. Mr. Weld. Three or four years. Mr. Jackson. They are kept frozen. They are not at any time kept where the temperature is above 10° above zero until they are put into the hands of the consumer who in most instances is a large whole- sale baker. Mr. Jones of Pennsylvania. Does it lose a portion of its strength? Mr. Jackson. I do not believe that it does, but we have never made any experiment, but we are not able to see any appreciable difference. Mr. Heflin. Do you put anything in the eggs when you break them? Mr. Jackson. No; some of the dealers, as I understand it, have a patent for putting a certain percentage of sugar in the eggs. Mr. Heflin. Sugar? Mr. Jackson. Yes ; and that is a patented process ; but we put up simply the plain egg and put up what we call mixed eggs, and we have frozen eggs where the whites and yolks are separated. Now, take the people who make cakes, they wknt the yolk of the egg. Some of the other people — ^the candy makers — want the whites of the eggs and the bakers want the white of the eggs for frosting for cakes. Some of the big baking houses use the whites of the eggs for frostings on cakes. All of these frozen eggs used to go to waste. They used to be in- cluded in our $50,000,000 waste. Mr. Jones of Pennsylvania. Is there such a thing as a powdered egg? Mr. Jackson. Yes; but we do not put up a powdered egg. We put up a flaked egg, which is a product between the frozen egg and the powdered egg. Mr. Jones of Pennsylvania. They are used a great deal now? Mr. Jackson. They are used very much bj^ the bakers, and a great many powedered eggs come into this country from China, that is, in the powdered form. I believe that the industry will grow in this country. I believe we will be putting up powdered eggs here in a few yecirs. Our butter is practically worked on the same basis. You will notice that we have a column headed " Pacific coast," on account of the grass in California coming earlier than it does in other parts of the country and, naturally, we will get our first grass butter earlier in the year and store earlier than in the balance of the country; the production in the latter is heaviest during May, June, and July and, naturally, that is the time when we get the greatest quantity and the best quality, and we put it into storage. Our limit for carrying creamery butter is March 1, because we begin to have heavy production shortly after that time, if we have an early spring we will get butter during April, for instance. We have a column for "Canada," which does not interest us. Then we have what we call P. S. That is packing butter, or butter that the farmer makes and brings and sells to the grocer, and that COLD-STORAGE LEGISLATION. 297 butter is bought by people like ourselves — ourselves and one or two others who make what we call renovated butter; but that industry is rapidly going down each year. The amount of renovated butter in 1909 was 64,000,000 pounds, and the amount in 1918 was 17,000,- 000 pounds, so you see that industry is going down each year very rapidly. The farmer now sells his cream to the creamery and does not make butter, because he wishes to keep the milk on the farm for hogs and other live stock. That butter is stored during May, June, and July, and is sold during September, October, November, and December, and the limit for holding it is March 1. On cheese we have two columns, as you see. On one, they store during June and July, and on the other during September and October. In the first column the limit for holding is January 1, and May 1 is the limit for the second column. We only hold cheese for one year. We have some customers who ask us to hold them for two years. They want aged or snappy cheese. We do not carry them that long, and tell them if they want them longer than that they can carry them themselves. If we carry them that long some- body will tell us we are carrying them over one season and confis- cate them, so we make the customers carry them. Poultry is divided into a great many different kinds. The southern farmer sells his poultry earlier, because he does not have the grain, and does not carry them late in the season. The broilers are stored during July, August, and September, and the fryers are stored dur- ing September, October, and November. We put a limit on the broilers of June 1, because we begin to get them in again along about the middle of the next year. As you work further north you will find that the grain farmers hold their chickens until they get larger and are known as " roasters." They are stored during October, November, and December, and naturally we have a longer limit on them. The limit on them is September 1. The different kinds of poultry are handled along the same general lines as this— the other branches on this card. The last column is headed " Beef, mutton, and veal cuts." This refers to the cuts that are stored during the year when the fat cat- tle are coming in, when the best cattle and the best mutton and the best veal, and we carry them along because we have to have those cuts for our customers, the hotels at the summer resorts and the trade next year, when the fresh cuts are scarce and not quite as good. Now, these limits that we put on here, while we tell our selling houses that they are absolute, they are absolute as far as our instruc- tions go to them, but occasion might arise where some conditions would come up as in 1917, when a big lot of poultry was carried over into 1918. The Food Administration, I believed, ruled on that. We sold ours, but other dealers carried them over. Those were carried over a year, and if we hadn't sold ours, we would have gone beyond these limits here. We would have given our branches leeway to carry them over, but our general purpose is not to carry anything over from one season to another. We work on a season basis. Mr. Akderson. That refers to beef? Mr. Jackson. Yes ; to beef, veal, and mutton cuts. Mr. Tin CHER. Do all storage people use about the same methods, the same kind of methods? 298 COLD-STORAGE LEGISLATION. Mr. Jackson . Oh, yes ; I ^YOuld say as a general rule, of course, on this basis the market has more or less to do with it. Mr. Tin CHER. This is the basis the packing companies work on? Mr. Jackson. That is the basis Swift & Co. work on. Mr. TiNCHER. You do not know what basis the others work on. Mr. Jackson. No; I do not. Mr. TiNCHER. You never have compared with the other people? Mr. Jackson. I do not know their practice. Mr. TiNCKER. You know the names of the other packing com- panies ? Mr. Jackson. Yes, sir; perhaps, several hundred of them. Mr. Weld. Principally from competing with them. Well, that give you some idea of the periods through which we hold our goods. It is charged that goods are often allowed to spoil. There is absolutely nothing to that, because any owner of goods who would allow them to spoil would suffer a serious financial loss, and there is, of course, nothing to that charge at all. Now, then, there are a few general conclusions that I want to draw first from the things which I have said. The first is that any dis- crimination against cold storage, or increased risks upon those doing a cold-storage business is a bad thing for the country. It is a bad thing for the producers and the consumers, because jjutting away goods in the season when there is a surplus produced, a surplus pro- duction, and having them available during scant production is an economical benefit to the country at large, so that anything that is done should be done to encourage cold storage rather than to dis- courage it. Second, the time limit on storage, any time limit on storage which would interfere with the regular seasonable movement or even in unusual circumstances, such as Mr. Jackson spoke of, that would interfere — would interfere with the business and be harmful; that is, any time limits respecting storage of products would be harmful Mr. Anderson (interposing). May I ask you right- there, Mr. Weld, to state the usual storage stock — the stoclf that is held in stor- age — is there any held against an emergency ? Mr. Weld. How is that again? Mr. Anderson. I am asking you to state to what extent goods are held in storage against enieigency, or against an unsatisfactory con- dition, when there will be unusual demand for them ? Mr. Weld. Well, I don't know. Can we answer that? Mr. Chaplin. I would say to a verj^ little extent, if any. Mr. Anderson. Then the goods are held in storage from season to season also to take care of the emergency which might be expected to arise during the season, am I correct about that? Mr. Chaplin. Yes ; and to take care of Mr. Anderson (interposing). What I am trying to get here, is, is there any stock held hack, held in storage to meet an unforeseen circumstance of supph^ or demand? Mr. Weld. I should say none at all. You mean held from season to season? Mr. Anderson. Are not any of them held from one season to another season? COLD-STORAGE LEGISLATION. 299 Mr. Weld. No; certainly not in our house, because as I said, we want to be on the safe side and not have any goods left on hand. Mr. Jones of Pennsylvania. What, in your opinion, would be the effect of forcing the release of the cold-storage goods on the markeit. Mr. Weld. At what period of time? Mr. Jones. I say, of forcing the release ; that is, release before you consider the right time under trade conditions? Mr. Weld. Why, the results would be to lower prices at the time the goods were released. Then there would be a scarcity of the goods during the next season with higher prices, and we would have ab- solutely to go without the goods until the next season of heavy pro- duction began. I do not believe that anybody would be benefitted. Mr. Jones. Then the result, in your opinion, of forcing the release of the cold-storage goods would not reduce the cost of living over a periqd of time? Mr. Weld. No, sir; over a period of time it would increase the cost of living because the danger of forcing the release would be that they would not buy goods to be put in storage. They would not run so much risk, and they would not put the goods in storage, which would eifect the producers in turn because the larger cold- storage demand is during the season of heavy production. That would result in the loss to the producer, to the farmer, would result in a loss to him. Mr. Jones. Then the basis of your conclusions is that the cold storage do not carry a capacity beyond that which is necessary to carry them over the time of shortage or until heavy production be- gins, is that right? Mr. Weld. Yes, sir; that is the condition — that the goods will au- tomatically disappear at the time the next season begins. Mr. Ttncher. Don't you think it fair to the consumer and the pro- ducer that where cold-storage goods are sold that the retailer should be compelled to sell the cold-storage products as cold-storage products ? Mr. Weld. Well, there is a little bit of difficulty attached to that. I am not sure but what they should be compelled to sell them as cold- storage goods and make it absolutely plain; and yet there are some reasons on the other side. Of course, we have no interest one way or the other in this. There is a general prejudice against cold stor- age, and to label the product as cold storage would mean that the prejudice would be reflected in lowering the prices for the storage goods, in lowering the prices that could be paid to the farmer for the products which were put in storage, and lowering the prices that they would bring on the market. Probably a label on the goods that they were cold-storage goods, so that it would be unmistakable that they were cold-storage goods, would, on account of that prejudice against storage, cause the demand for fresh goods and not the storage. On the other hand, it is a question of education of the public — getting used to cold-storage products — because a lot of eggs that are sold as fresh and known as fresh eggs are not fresh. Mr. Tinchee. What we want to do is to eliminate the profiteer and thereby reduce the cost of living. The eggs that you stored you bought in the market when they were fresh at a certain price. The 187690—19 r?t) 300 COL.D-STOEAGB tEGISLATION. farmers who have fresh eggs for sale, say, in December, should get a higher price. There should be a manifest difference between the price of fresh eggs and the eggs which you bought on the market that you will sell to the retailer. You will sell those eggs at a price much below the price of fresh eggs at that time. Mr. Weld. Yes. Mr. TiNCHER. Now, then, if the retailer buys those eggs from you and sells them as fresh eggs, why, he is a profiteer. Mr. Weld. Yes. Mr. Tin CHER. And the farmer who has fresh eggs to sell at that time should get the benefit of that. Mr. Weld. And he is practicing deception ; but there is one inter- esting point in that connection, and that is that April storage eggs are brought out in December and they are better than the so-called fresh eggs. Now, " fresh eggs " does not mean that they were laid yesterday. They may have been laid out in the West more than a month ago. They, may have been collected by the farmer or the farmer's son or daughter four or five days after they were laid, and they may have lain around the farmhouse another four or five days before the eggs were taken to the store, and when they were taken to the store they may have laid around the storehouse perhaps four or five days before they were shipped to the commission men ; and then the transportation, and then getting them ready and shipping them, and that egg may be, and often is, positively poorer than our best grade of April eggs taken out of storage. The storage egg often is of a better color, better taste than the so-called fresh egg, but the public would be liable to discriminate against the storage egg by marking it as such. It might cause the fresh eggs to bring a higher price. Mr. TiNCHER. Your statement would be all right except for this fact. I do not know about the laws of the different States; but in speaking of Kansas we have a law in our State by which eggs have to be candled by the purchaser and the egg that you describe as being gathered by the farmers' children three or four days after they were laid never would get on the market in my State. There may be States that have not that regulation. Mr. Weld. The point is, that the so-called fresh western eggs arrive at the eastern markets days after they are laid and they are often inferior to our storage eggs put in in April before. That is true. Mr. TiNCHER. That is probably due to the fact that some of the western States haven't the proper laws requiring examination. Mr. Jackson. A part of this is due to the farmer. In October, he is getting high prices and he puts down his eggs in salt or bran or some other preservative and keeps them. We find that the purchases around Christmas — we find that the farmers sell a great many eggs that have been held back for some time, which the farmer probably held to get a little money for Christmas, or for higher prices. Those eggs get here in the East a long time after they are laid. Mr. Tin CHER. If they were properly regulated, under such a law as they have in Kansas that could not happen, because eggs sold in Kansas has to be candled by the purchaser. Mr. Jackson. Candling does not make a good egg any better. Mr. Tin CHER. But it throws out the bad ones. COLD-STORAGE LEGISLATION. 301 Mr. Jackson. These are not bad. They are wholesome, but on account of the conditions under which they are held they are not as good as our April eggs that are held under perfect conditions. Mr. Tin CHER. Then, I understand your advice to the committee would be to regulate the cold-storage product in a way as I suggest, by forcing at least where they are put in interstate commerce to have them sold as cold-storage eggs. Mr. Weld. There is absolutely no question Mr. TiNCHEE (interposing). Now, what is your best judgment of passing a law that will make the retailer in the interest of the reduc- tion of the high cost of living sell these eggs as cold-storage eggs ? Mr. Weld. I really haven't ever made up my mind on that. I believe if we felt on the whole it would be a good scheme to make the public become educated by taking that step and marking the goods so that there would be no mistake about them being cold-stor- age eggs. The prejudice against cold-storage products will result, J believe, in discrimination, undoubtedly unfair discrimination, against cold-storage products, at least at first, but my opinion is that that would be overcome after the public found out that the eggs which came out Of cold storage were just as good if not better than the so- called fresh eggs. Mr. Tin CHER. Now, taking your figures, I do not know how the market prices are. Some one said here that you could buy fresh eggs in Washington at 60 cents a dozen. In 1918 the grocers sold them for that. They retailed here at 45 cents. Mr. Weld. The average for 1918 for fresh eggs, of course, varied in different sections of the country. That was the average. Mr. TiNCHER. If they were good eggs and the producers, who do not get very many eggs at this time of the year, have a limited produc- tion at this time of the year wanted to market their eggs at a little higher price here in Washington the retailer could say to his cus- tomer, " Here are my cold-storage eggs at 50 cents per dozen. The fresh eggs are 60 cents per dozen." The consumer could at least take his choice. Mr. Weld. Yes, sir. Mr. Tin CHER. As it is at the present time, the retailer does not run' out of fresh eggs. When he has sold all of the fresh eggs which he gets from the farmer he buys your cold-storage eggs and keeps right on selling them as fresh eggs and taking the profit. Well, they do know the difference. The average person eating an egg can tell the difference, but it does not do any good if the retailer says they are fresh eggs and the consumers buy them as fresh eggs, and my theory about reducing the high cost of living — to this extent I agree with the President, that publicity will help to do it — and if the retailer has to say to the consumer that these are cold-storage eggs he would have to sell them at 45 cents a dozen, or at least he might have some trouble of selling them as fresh eggs at 60 cents. Mr. Weld. I think I might mention on that point that some years ago I wrote a book on the subject, some four years ago, when I did not have any idea of becoming connected with the packers, when I was writing considerably on this subject, and in this book I wrote I find the following sentence : The only argument against compelling the marking of packages in such a way as to actually apprise the purchaser that he is buying colcl-storag(> food is that 302 COLD-STOBAGE LEGISLATION. the general public has such a prejudice against coM-storage products that such products would be unjustly discrlmiuated against, with the result that the eco- nomic benefits derived from cold storage would be partially destroyed. Instead of educating the public gradually by catering to this prejudice, it might be better to educate them suddenly by requiring all retailers in some way to make it definitely known to their customers when they are buying cold-storage products. This would at least prevent abusives commonly practiced by retailers, and the ill effects of such legislation would probably be but temporary. Mr. TiNCHER. Isn't that " Just keep on fooling the public ? " Mr. Weld. My opinion is just the same as it is expressed there. Mr. Tin CHER. That is, deceive the public ? Mr. Weld. No, sir. Mr. YoTjNG. That is just the reverse. It is just the reverse ; you did not catch the view the witness took. Mr. Weld. It might cause some temporary discrimination. Mr. TiNCHER. Oh, you did advocate in the book taking the step ? Mr. Weld. Yes. Mr. TiNCHER. Oh, I misunderstood you ; I beg your pardon. Mr. Jones of Pennsylvania. Mr. Weld, in your hypothetical case of eggs from Iowa to Washington, the price they retail for at Wash- ington is based upon the price paid the farmer ? Mr. Weld. How is that? Mr. Jones. In this hypothetical case of eggs, from Iowa to Wash- ington, the price they retail at Washington is based on the price paid the farmer? Mr. Weld. Well ; I wouldn't say it was based on that. Mr. Jones. The base on which you start, is the price paid the farmer ? Mr. Weld. Yes. Mr. Jones. And you add to that as the exigencies of the case re- quire ? Mr. Weld. According to the cost. Mr. Jones. Now, if I- remember correctly, a gentleman on the stand yesterday gave us just the opposite view of that. He said that the cost at which the eggs were resold out of storage was rather a bet or a gamble on the market, and the price paid the farmer had nothing to do with the cost of the consumer when the eggs were released. Mr. Weld. Well, that is true with regard to the eggs to this ex- tent, to what has been worked out in 1918. We don't know when we put the goods in storage what we are going to get for them. Sometimes we make money and sometimes we lose, and on the eggs we have sold for the past six years and a half we have averaged three-eighths of a cent a dozen on them. Mr. Jones. Then this whole purpose of the retail price would be a matter of when the eggs were taken out. Mr. Weld. Our price to the farmer was 33 cents and the whole- bale market was 45. Now, it is a difference between 33 and 45, and you would have to make an analysis of the marketing costs there. Mr. JoxES. Then you agree with the gentleman of yesterday, that the price of eggs released from storage is based upon the market conditions at the time of the release? Mr. Weld. That is absolutely true, that what we get from them depends on the market conditions at the time of the release. COLD-STOEAGE LEGISLATION. 303 The Chairman. I would like to have the record correct as to a matter discussed a while ago. I will read a statement issued by tlie Food Administration. United States Food Administration, Meat Division, Chicago, November 3, lOli). Joseph P. Cotton, chief of tlie United Stiites Fooil Administration, Meat Di- vision, to-day issued the following statement relative to the prices of hogs : " The main purposes of the Food Administration as to hogs are four : To see that the producer at all times can count on a fair price for his hogs, so that it will be profitable to him to see that the farmer increases the number of hogs bred, to limit the profit of the paclier and the middleman and to eliminate speculation. " All these purposes are necessary, because we must have more hogs, so that the ultimate consumer shall at all times get an adequate supply of hogs at the lowest feasible price. " We shall establish rigid control of the packer. Fair prices to the farmer for his hogs, we believe, will be brought about by the full control which the Food Administration has over the buying of the Allies, our Army and Navy, the Red Cross, the Belgian Relief, and the neutrals, which, together constitute a considerable factor in the market. " The first step is to stop the sudden break in prices paid for hogs at the central miirkets. These prices must become stable so that the farmer knows where he stands and will feel justified in increasing hogs for next winter. The prices so far as we can affect them, will not go below a minimum of about $15.50 per hundredweight for the average of the packers on thei Chicago mar- ket until further notice. " We have had and shall have the advise of a board composed of practical liog growers and experts. That board advises that the best yardstick to measure the cost of production of the hog is the cost of corn. That board further advises that the ratio of corn price to hog price on the average over a series of years has been about 12 to 1 (or a little less). In the past, when the ratio has gone lower than 12 to 1, the stock of hogs in the country has de- creased. When it was higher than 12 the hogs have increased. That board has given its judgment that to bring the stock of hogs back to normal under present conditions the ratio should be about 13. Therefore, as to the hogs farrowed next spring, we will try to stabilize the price so that the farmer can count on getting 100 pounds of hog ready for market 13 times the aver- age cost per bushel of the corn fed to the hogs. " Let there be no misunderstanding of this statement. It is not a guarantee backed by money. It is not a promise by the packers. It is a statement of the intention and policy of the Food Ahministration, which means to do justice to the farmer." The Chairman. I find that the price of corn was $2.05 per bushel. According to the ratio fixed of 13 to 1, the farmer was entitled to $26.66, instead of the price fixed of $15.50 per 100 pounds of hogs, and accordingly was discriminated against to the extent of $11.15 per hundred pounds. As to the Food Administration having full power to control prices, that seems to be generally admitted. I refer to Mr. Glascow's state- ments in hearings on Government control of the meat packing in- dustry. Sixty-fifth Congress, third session, before the Senate Com- mittee on Agriculture and Forestry. Mr. Glasgow. We had the power of apportioning orders to the packers from abroad. * * * without having what we thought was a genuine power that we could exercise, we would never have made that representation to the pro- ducer. Mr. Young. The question confronting the whole country is the high cost of living, and criticisms are being tirged at the different elements of our society. One element of our society holds the farmers responsible for the high cost of living. Another eleme^.t of ''nciety 304 COLD-STOBAGB LEGISLATION. holds the packing institutions responsible in a large measure, the cold-storage institutions, and so on down the line. It depends upon the element of citizenship that you are talking to as to where they lay the blame. Now, as to your general business, producing food from cattle, hogs, chickens, eggs, etc., there is some criticism about the market from time to time. In the first place, has your institution a packing plant in the city of Fort Worth, Tex. ? Mr. Weld. Yes, sir. iNIr. Young. Several of the five large packers have? Mr. Weld. I think Armour is the only other one at Fort Worth. Mr. Young. Texas is one of the largest cattle producing States in the country. Before the drought we had some seven or eight million cattle in that State. Mr. Weld. Some people lay the drought on the packei-s. Mr. Young. Now, here is what I have got in mind on the Texas situation; I live approximately 100 miles from the city of Fort Worth. For many years, in a small way — my home is in Kaufman, and in that section of the State we fed cattle. Some farmers fed 50 head and some a hundred, and on up to a thousand head of cattle. We think those packing plants you own and Armour owns ia Fort Worth, that it would be, and the people of Kaufman County, my home county, who feed those cattle, think they should be shipped to Fort Worth; that the economic situation would be better, that they shold be shipped to Fort Worth and not have to have this long freight haul to St. Louis, Chicago, or Kansas City ; but as a practical working of it out, those people who feed these highly fed cattle always ship their best products to Chicago and Kansas City, or St. Louis. What is there in the situation, in the way of markets that results in that kind of a condition ? Now, ought that to be true ? Mr. Weld. Of course you understand that the prices at the vari- ous markets vary according to the freights — is it a back haul to Fort Worth from your county ? Mr. Young. It is only about 65 to 70 miles. Mr. Weld. Of course the great bulk that the Fort Worth plant gets is rather inferior stuff. There isn't much stuff feed down in Texas, and it is possible — I do not know — possibly the market for fattened cattle at Fort Worth isn't as good as it is at other places; but I will ask Mr. Chaplin about that. Mr. Young. They ought to get the fine, highly finished fat stuff that goes out to other miarkets. Their products can not be shipped to Fort Worth, because they lose money. That class of cattle has beetf forced out of Texas to Kansas City, Chicago, and St. Louis markets. To the average layman like I am, it looks to me that these people who have put their money into these better grades of cattle and have given it very much attention should be able to ship to the plant at Fort Worth these highly finished cattle and save freight charges to Kansas City, St. Louis, and Chicago. Mr. Weld. What did you say they were highly finished on? Mr. Young. On cottonseed products. Mr. Weld. Do you know, Mr. Chaplin, about the market at Fort Worth? COLD-STOEAGE LEGISLATION. 305 Mr. Chaplin. Of course, that isn't highly finished stuff Mr. Young. It is highly finished for our section of the State Mr. Chaplin. I do not know, except that they only take a certain number ot good cattle and a certain number of poor. There will be a shipment to Washington of so many good and so many poor, and it may be that the different markets compel the packer to make a selection of these good cattle to mix in. In that way, they might be worth more on one market than on some other market. Mr. Weld. In other words, they would not carry that sort of stuff down there. Mr. TiNCHEE. That is true of the Wichita packing plant, and it is true of all of the smaller places. They do not take high-grade stuff. Mr. Young. That is the situation with our cattlemen. Now, those people feed one or two or five carloads, or a thousand head of cattle, on this feed, and they are highly finished as beef, and it looks like your institution operating in Fort Worth that they ought to have had a better market in Fort Worth. That is the way the matter looks to the public down there, that that ought to be their logical marketing place. Instead of that, they have to ship this stuff to St. Louis, Kansas City, and Chicago. As you said, the grass stuff and the cheaper stuff has to come on to the Fort Worth market, but the highly finished stuff has been forced to the other markets, where the same packers handle it, and they force us to stand the loss of the long haul. Mr. Weld. You, of course, get a higher price after the long haul. The price is much higher. Mr. Young. Why shouldn't they logically be able to avoid this long freight haul and have their stuff handled at Fort Worth by the packing establishment which you operate ? Mr. Weld. You have got the freight haul, whether it is on cattle or on beef. I do not know the exact circumstances, but I will be very glad to get you the information on that point. Mr. Young. I want to make this suggestion, because this situation has come to exist in my home country and the entire State, that these people who formeraly fattened these cattle on the foodstuffs grown there, on the manufactured feed at home, they have had largely to go out of business and they no longer have feed pens at every little town of two or three thousand people, the situation has become so uncertain. Now, there is another point Mr. Weld (interposing). Just a moment. I would say this, that we pay the cattlemen for them all that we are able to get out of the meat and by-products. We can satisfy you on that point, and that is a fundamental point of your question. Mr. Young. The point I can't understand is why you own a pack- ing plant at Fort Worth and also own one at Kansas City and one at St. Louis, and why when I go to ship out 100 cattle I shouldn't get at your packing plant in Fort Worth the same price that I get at your packing plant in St. Louis, and save m^ the loss in weight of my cattle on this long shipment, and it seems to me that this extra freight haul of something like a thousand miles is unnecessary when the other freight haul is only 65. Mr. Chaplin. On one hand, they could not make the assortment of the cattle when they are shipping them in, these fancy cattle to the 306 GOLD-STORAGE LEGISLATION. market. We have got to have an assortment of different kinds on the markets for that. Mr. Young. Our experienced cattlemen who have been in the busi- ness all of their lives, they assort the cattle, they know how to assort. They count the number of head of fat cattle for such and such an assortment, and another carload of another assortment. They have been assorted as well as experience knows how to assort. Now, it looks to me that the market at Fort Worth, where your packing plant is established, should .be such as to save the long haul to St. Louis, and that we should get the same price at Fort Worth as we would at St. Louis and yet save the long haul. Mr. Chaplin. Why shouldn't it go to other parts of the country? Why should it go to the Fort Worth plant and not to St. Louis where the other packers have a chance to buy them ? We have got to have the actual assortment to make up a mixed carload of meat. Mr. YotTNG. Well, the question on the part of the plant — why can't you save us that long haul and save us that loss in weight on our cattle? Now, there is another thing. You gentlemen own cotton-oil mills all over the country. Mr. Weld. We own a few. Mr. YoTTNG. Several. Mr. Weld. We own a few. Mr. Young. You own cottonseed oil mills and the other packers do, too. Mr. Weld. Yes, sir; that is absolutely so. Mr. Young. They are enlarging all the way through Mr. TiNCHER (interposing). Let me see if this is not what you mean? You take a 1,500-pound steer finished in your county and ship, say, for instance, to the Fort Worth market. Probably in shrinkage, before he is weighed up at the packer, would amount to 40 pounds. If that steer is forwamed on to St. Louis — I think the figures of the cattlemen will bear me out — in St. Louis that shrinkage will be 100 pounds, or perhaps more. There would be a difference of 60 pounds. Then Swift & Co. would buy the steer at St. Louis at 15 cents a pound; that would make a difference of $9. The cattle- men would be out that amount. Now, it don't make any difference, unless they can explain to me that it does, to them when they ship that meat back to Fort Worth to the hotel down there. Mr. Young. Which is done. Mr. Weld. Very seldom ; it is a very unusual practice. Mr. Young. Now, that condition bears directly on the cost of liv- ing. That is the condition that exists to my personal knowledge, and these men have been driven out of business — these producers of cattle — absolutely out of business all over my section of the State and have gone into other kinds of business. My own brother-in-law, who is a cattleman, was driven out that way, because it was so uncer- tain that he could not afford the risk of the investment. Mr. Weld. All I can say is that we pay for the cattle at Fort Worth or any other market — we pay all we can possibly get out of them in the form of meat and by-products, and our profits are figured on a fraction of a cent a pound. Now, whether there is a demand for high-grade stuff at Fort Worth or not we are not prepared to say. COLD-STORAGE LEGISLATION. 307 Mr. Young. I wish you would look that matter up, because it is a matter our people down there do not understand; Now, taking the other lines of business ; you are entering the field of the cottonseed oil mill business. Out of cotton seed you get cot- tonseed oil, which is a substitute for lard and the fatty substances from animals. If you get control of the cotton-oil mills — if they are controlled by the packers and those correlated with them, they will control the fat supplies from the animals and the substitutes from the vegetable kingdom, which gives a complete monopoly over that food supply that the people must depend on. Mr. Weld. If the packers worked together, which they do not in the oil production, the percentage of the total output of the five packers is very small; they would not control more than 10 or 15 per cent. Mr. Young. I understand; but the tendency is to reach out and do that all over the country. I had general information from an oil mill which produces from cotton seed, oil, meals, and hulls, and they take the meal and hulls, which they feed to the animals, from which you get the fats, the beef, hogs, etc. Now, monopoly of ownership of these institutions would enable you, if you monopolized the ownership, not only to control all of the fat substances, both of the vegetable and animal, but control the ad- junct to the oil, which is cottonseed meal and hulls, and which yould naturally enable you again to go back and control the price of feed that is supplied for these animals. Mr. Weld. That would be true if there were a complete monopoly. Mr. Young. But the country thinks, and I do, that there is a dan- gerous tendency in that direction, and so what is becoming before Congress from day to day, the country thinks that there is a strong tendency toward monopoly. Then, further, if you take over all of the oil mills, and there is a tendency that way, the oil mills prac- tically own the gins, and if you control the gins you would control absolutely the price of the farm product, as well as the price at which the finished product is sold. Mr. Weld. That would be true if there were any ground whatever for any supposition of such a monopoly. Mr. Young. I am told, I will state to you, that one of my best friends, who is conducting an independent oil mill, tells me that this day, and he has got a local mill, owned by local capital — the packers haven't got very largely into the State of Texas yet — and it is one of the great States in the production of cotton, because it produces one-third of the entire crop — that so far as the marketing of his fin- ished product from that oil mill, both as to seed and oil, that they have nothing to say in the making of the market, but they have got to follow the figures marked up or down by the packers. That is their feeling. Mr. Weld. The packers have got the same feeling; we personally feel the same about the operators down there, and we are independ- ent. The Trade Commission states that the total output of the oil mills owned by the packers was only some 12 or 15 per cent. I think that Mr. Anderson is trying to look it up. Mr. Young. I am quiite familiar with another feeling that exists in the country toward the packers. 308 GOLD-STOEAGE LEGISLATION. Mr. Weld. We realize that the belief exists, and we are giving all possible information and trying to clear up that belief, which we believe we can prove to you is without foundation. Mr. Young. I would like to extend on that— I am just suggesting that. I know that as a private citizen, down in Texas, and now this feeling exists that the packers are entering into the various other lines of business, grocery business, and there is a feeling that they will ultimately monopolize the whole food supply, which they are reaching out for, and continuing on the "part of the packers, and here a little handful, a small organization of men, will have power over 110,000,000 people, and have control over the food products on which life itself depends, which is very dangerous, very dangerous. Mr. Weld. Yes ; but now have The Chairman (interposing). Mr. Weld, how long will it take you to finish? Mr. Weld. It will take me between 5 and 10 minutes. Mr. Young. There is another situation which exists. The packers are in a way engaged in the banking business, in making loans to cattlemen. They are members of banking organizations, having interests in banking institutions which make loans to the producers of cattle, the men who produce the cattle. Now, this feeling exists, and I want you to expand on it so that the facts may be known. Mr. Weld. You want me to enlarge on this in this record? Mr. Young. Yes ; I want it for my own benefit, so that I may know. T have heard the st^^tement and I want to know the real facts. There is a feeling in Texas, for instance, that the packers who have ah inter- est in the banks loan to stock producers on this little ranch and that little ranch, and it comes along to the time, and whether they are ready to sell or not on the then prevailing market — there may be no truth in it, but the report is out — ^that the loans are called and they force these people to sell and they make another profit in con- nection with the packing institution ; it is another profit that they can derive out of the hands of the producer. Mr. Weld. Let me say in that connection, I do not believe you can find a single instance where the loan has been called — it may have been called in certain instances but not for the purpose of forcing a man to sell his cattle on the market at a certain time; that the reason the packers have been interested in this has been to help to finance the farmers ; they have been a benefit to the stock raisers by helping the live-stock raisers rather than they had to depend on the local banks. Mr. Young. There is a very great power there. Mr. Weuj. There is a potential power there, but I do not believe you can cite an instance where it has been done ; it would be against our interests and be a very shortsighted policy. As I say, I do not know anything about it, but I make this assertion, because I believe that you will find that is the truth, and we would like to have it cleared up to Congress and to the public. Mr. Anderson. Mr. Chairman, in this connection I would like to read into the record from the report of the Federal Trade Com- mission on the meat-packing industry, the crude cottonseed-oil pro- duction, produced by three of the big packers, as compared with COLD-STOBAGE LEGISLATION. 309 the rest of the production. Table 54 of summary and part 1 of the Federal Trade Commission report shows that Swift & Co., Armour & Co., and Morris & Co. produced 7.8 per cent of the crude cotton- seed oil produced. Table 55 shows that the five large packing groups produced of the refined cottonseed oil produced 31.8 per cent. Table 56 shows that the five large packing groups produced of the lard compounds and lard substitute productions 87 per cent for 1916 and January 1 to June 30, 1917, the production of interstate slaughterers. Mr. Weld. Let me call attention to the fact there that there are large manufacturers of lard compounds and lard substitutes— as, for instance. Proctor & Gamble — who are not interstate slaughterers. Mr. Andebsok. I will give the whole business. Table 57 shows that the five large packing groups of lard compounds and lard sub- stitute productions of interstate slaughterers and cottonseed-oil manufacturers produced 42.5 per cent in 1916, and from January 1 to June 30, 1917, 49.4 per cent. Table 59 shows that the five large packers produced 30.2 per cent of all the cottonseed-oil soap stock produced by cottonseed-oil manufacturers for the season of 1916-17 ; 30.2 per cent of all the cottonseed-oil soap stock manufactured by all the cottonseed-oil manufacturers. • The five large packing groups pro- duced 74 per cent of all the oleomargarine production between July 1, 1915, and June 30, 1916. Mr. Weld. The total oleomargarine production of all interstate slaughterers ? Mr. Andeeson. I judge that this put in the total production- people who are not engaged in the slaughtering business at all. Mr. Weld. I think it must be of interstate slaughterers ; I am not sure. Most of these figures are based on the interstate slaughterers, inspected houses. Of course, it is absolutely unfair to say that we control ; we do not control ; that implies working together, which is not the case ; and we have absolutely no control over the prices. We are governed entirely by the competitive conditions and have the strongest competition all the way along the line. Mr. Andeeson. I should like to make a correction on the last figures, reducing the percentage of the five big packing groups to approximately 51 per cent. Mr. TiNCHEB. Are either of you gentlemen representing Swift & Co. familiar with the increase in the price of hides since April 1 ? Mr. Weld. Yes, sir. Mr. TiNCHEB. I have a table here I want to put in the record, if it is correct; if it is not correct, I do.jjot want it to go into the record. The table I have Mr. Weld (interposing). I have some general figures here on the hides. ■ Mr. Tinchee. The table that I have shows an increase between the first week in April and the third week in July, oh spready steers; that is, spready steer hides, an advance of 72 to 73 per cent. Mr. Weld. I have for heavy steers' hides from April to July, 23 to 53 cents a pound ; that would be about right. Mr. TiNCHEB. Then, I have heavy native steers, April to July, 78 to 90 per cent increase. Mr. Weld. That is about right. 310 COLD-STORAGE LEGISLATION, Mr. Tils' CHER. Heavy Texas steers, April, 26 cents; July, 47 cents; an advance of about 81 per cent. Mr. Weld. That sounds reasonable. Mr. TiNCHEE. Light Texas steers an advance of 92 per cent. Mr. Weld. Yes, sir. Mr. TiNCHER. Extra light Texas steers, an advance of 100 per cent. Mr. Weld. That is about right. Mr. TiNCHER. Butt brands an advance of 81 per cent. ' Mr. Weij>. Yes, sir. Mr. TiNCHBK. Colorado steers in April, 25 cents, and the third week in July, 47 cents, an advance of 88 per cent. Mr. Weld. Yes, sir. Mr. TiNCHEK. Branded cows, in April, 23 cents, and in July, 46 cents, an advance of 100 per cent. Mr. Weld. Yes, sir. Mr. Tin CHER. Heavy native cows, April, 26 to 27 cents; July, 51 to 52 cents ; an advance of 93 to 96 per cent ; and light native cows, April to July, an advance of 116 to 124 per cent. Mr. Weld. Yes, sir ; that is right. Mr. Tinchee. Native bulls, in A-pril 20 cents and in July 39 to 40 cents, an advance of 95 to 100 per cent. Mr. Weld. Yes, sir. Mr. TiNCHEE. Branded bulls, April, 18 cents and in July 37 cents, an advance of 106 per cent. Mr. Weld. Yes, sir, Mr. TiNCHEE. I will ask, then, if there is no substantial error in these prices to put this in the record. (The table referred to is as follows:) Marlcet prices of packer hides, sJiowinff increase in value from April to July, 1919. [Quotations taken from Hide and Leather, Apr. 5 and 7uly 19.] Spready steers : Cents. First week in April 30-32 Third weelc in July : 52-55 Advance, 72 to 73 per cent. Heavv native steers : April 1 28-29 July 50-m Advance, 78 to 90 per cent. Heavy Texas steers : April 26 July 47 Advance, 81 per cent. Light Texas steers : April 24} July 47 Advance, 92 per cent. Extra light Texas steers: April 23 July— 2 46 Advnnce, 100 per cent. Butt brands : April 26 July 47 Advance, 81 per cent. Colorados : ' First week in April "5 Third week in .July 47 Advance, 88 per cent. COLD-STOEAGE LEGISLATION. 311 Branded cows : Cmts. 'April 23 July 46 Advance, 100 per cent. Heavy native cows : April 26-27 July ^ 51-52 Advance, 93 to 96 per cent. Light native cows : April 24-24J July fi2-55 Advance 116 to 124 per cent. Native bulls: April 20 July - 39^0 Advance 95 to 100 per cent. Bran(Jed bulls: April 18 July 37 Advance, 106 per cent. Mr. Weld. Then I would like to put something in the record also. It has been implied by various people, and especially by the Depart- ment of Agriculture, that this has increased to an inordinate amount the profits of the packers. That insinuation is not true. Our beef business has shown a loss ; up to the time that was issued there bad been three weeks since the first of the year where it has shown a profit. The increase in hides did not result in profits to the packers. It resulted in a narix)w spread between live-cattle prices and dressed- beef prices. It meant that that increased price in hides was largely passed on to the producers, and although the price had fallen on cattle, it would have fallen more if the price of hides had not been rising. Those figures we can substantiate. Mr. TiNCHEE. The condition of the cattle market during the first week in April and the third week in July is recorded history and we have no argument of what was happening to cattle during the time the hide market was advancing 100 per cent. Mr. Weld. Yes; and the price of beef is also history. And the Department of Agriculture showed that whereas the price of choice beef has fallen about $3.50 — I, have not the exact figures here — that the quality of good dressed beef had fallen $5 to $7 a hundred- weight. The department showed from its own figures that the price of dressed beef had gone down as much and more as the price of live cattle. Mr. TiNCHEE. The real trouble about a Congressman or a lay- man examining a packer or man familiar with the packing inter- ests on that subject is that you buy so many grades of cattle and sell so few kinds of meat that they are almost totally incompetent to examine on it. However, generally on the subject of hides the market record shows what happened* to cattle during that time, and you say this record is practically correct as to what happened to hides? Mr. Weld. Yes, sir. And the market records also show that the price of dressed beef went down fully as much, and the dressed meat more than the price of animals, and our records show that we made no money during that time, and we invite inspection by competent public accountants to verify these figures as to correctness. 312 COLD-STORAGE LEGISLATION. Mr. TiNCHER. Do you mean by that you invite the authorized Government agency, the Federal Trade Commission, to investigate your books? Mr. Weld. They have been investigating our books and I do not think you have much light on the subject; I do not think you have had much light on the subject or much benefit from their investiga- tion. No ; I do not invite a fresh investigation by the Federal Trade Commission; I invite investigation by certified public accountants who have not been connected with either the packing industry or with any packer. The Chairman. Can you give the average profit on the total out- put of meat for the year? Mr. Anderson. If we go into that it will take some time. Mr. Weld. Yes; the average profit on products of Swift & Co. last year was about a half cent a pound; and the eight months of this year foui^tenths of a cent. The Chairman. Weights on the hoof or the finished product? Mr. Weld. For finished products of all kinds. The Food Admin- istration reports for 1918 shows the five large packers earned a profit of less than 2 cents on each dollar of sales and about 5.6 per cent on all capital employed in the business; that would amount to a small fraction of a cent per pound on all products sold ; that is on meat products. The Chairman. Five per cent on capital ; on what capital ? Mr. Weld. On capital owned and borrowed capital. The Chairman. Borrowed during the whole year ? Mr. Weld. Borrowed on short time to finance the operations. The Chairman. For instance, if money was borrowed for three months, was interest charged for the full year? Mr. Chaplin. Figured at three months, that would be. The Chairman. Do they make 5 or 6 per cent above the interest paid ? Mr. Chaplin. No ; that is before the interest was paid ; 5.6 per cent on all money, the average amount used for the year. The Chairman. Was the interest computed for the time it ran? Mr. Chaplin. Wherever we had to' pay interest on the borrowed money. The Chairman. Suppose that you borrowed a thousand dollars for two months; did you get 6 per cent on the $1,000 for the full year ? Mr. Chaplin. No ; we got 1 per cent on that. Mr. Anderson. Does this profit you are speaking of in 1918 include the stock dividends ? Mr. Chaplin. There was no stock dividends out of the profits that year. Mr. Anderson. There was a stock dividend that year? Mr. Chaplin. That was on a revaluation of our plant. Mr. Anderson. These assets included the stock of merchandise and other products on hand ? Mr. Chaplin. No; not at all. All of our products that we made that ^ear are included in that one-half cent ; and also all are included in this figure of four-tenths of a cent, which is our profit for the last eight months. COLD-STORAGE LEGISLATION. 313 Mr. Anderson. These profits did not fake into account any in 1918? Mr. Weld. The stock dividend does not, in other words, include any profit. Mr. Chaplin. The profits we have quoted includes all our profits. Mr. Anderson. It does not include the $25,000,000 stock dividend you issued in 1918 ? You say it should not include that ; I am asking you if it does? Mr. Chaplin. No, sir ; that is not profits of last year. The Chairman. There is considerable contention as to the 6 per cent on borrowed money. It would be to the interests of the packer to borrow when money can be borrowed at 3 and 4 per cent, for he could make at least the difference between the rate paid and the rate allowed as profits. Mr. Weld. Well, it would recognize the principle that you should be allowed to make a profit on borrowed money when you are in a business that has to be done on borrowed money largely. Let me state, if that profit sounds too big, we would be glad to give you the profit on our own money ; the profits for Swift & Co. in 1918 was a little over 11 per cent on our investment — the total business. The Chairman. The actual investment? Mr. Weld. Yes, sir. The Chairman. You mean the capital and the surplus ? Mr. Weld. Yes; and the surplus is invested in the_business just as much as the stock. Eleven per cent and less than 2 per cent on the sales. The Chairman. Two per cent on the sales ? Mr. Weld. Yes, sir. Mr. Hutchinson. Mr. Weld, of course you know we are discussing a cold-storage bill. Do Swift & Co. have any opposition to a general uniform cold-storage bill ? Mr. Weld. No, sir ; that is what I was just going to take up — ^that Swift & Co. does not and has not opposed legislation on cold storage. Mr. Louis F. Swift, president of Swift & Co., went on record at the annual meeting of the Swift & Co. stockholders in 1913 on that sub- ject, when he said, " What is needed at this time is proper regulation, covering inspection in and out of store, the proper limit of time of storage (not to exceed 12 months or from season to season), and the education of the consuming public." And Mr. Swift now says, " Our present position is unchanged." Of course, when Mr. Swift made that statement he was not neces- sarily thinking of whether it should be Federal cold-storage laws or State cold-storage laws. As to our attitude on this present situa- tion — of course, you gentlemen realize that any legislation, cold- storage legislation which limits the time to less than the regular period, would do the country harm rather than good; any legisla- tion based on the theory that cold storage leads to an artificial manipulation of prices — any such legislation would be merely a sop to the ignorance of the public. And, of course, based on the theory that it will prevent profiteering, it is just merely a sop to public opinion. But it seems to me there are certain reasons why the Federal Gov- ernment might have cold-storage legislation. The first and most important in my mind is that it would provide complete reports of 314 COLD-STORAGE LEGISLATION. cold-storage holdings. As I understand it, the Bureau of Markets has to rely on the voluntary giving of statistics by cold-storage com- panies, and a cold-storage law could require every cold-storage house — I am not considering the constitutionality or legality of it; I am not prepared to go into that side of it — ^but if you could have a cold-storage law it would provide a means of getting reports; that would tend to steady the cold-storage business and give us a better gauge in estimating the market demands, and so forth. That could be brought about much more effectively than with the present State laws. And then it seems to me that it might be worth while as a guar- anty that goods moving in interstate commerce will be subject to proper inspection and kept under proper sanitatary conditions. We believe thoroughly in the inspection of products going into storage. As I pointed out before, whether they should be inspected or not as they come out of storage, that depends very largely upon the length of time they have been in storage. As a guarantee to the people that cold-storage goods that move in interstate commerce will be subject to such sanitary inspection, and give no opportunity for evasion of State inspection, I think it would be a good law. And then as a general proposition, a guarantee that the State laws will not be violated. For example, the 12-month State law, as many States now have it, the public has no guarantee that goods may not be taken out in one State at the end of six of eight months and put into storage in another State for six or eight months more. And some States have no, laws at all. So that that thing could be brought about by Federal inspection. Now, as for the particular bill under consideration, it is only a matter of detail that we might want to object. There are four or five points in connection with it that I would like to mention, if you would like for me to mention them and take them up with reference to this bill. For example, the definition of what constitutes cold storage, apparently the definition includes our beef coolers and stor- age cellars for cooling meat. Now, we think that the regulations should not apply to those. The products are not put there to store ; they are put there in the manu- facturing process. It' is a necessary manufacturing process that they have got to go through before they are put on the market. The other regulations would be practically impossible to apply to this ; for ex- ample, labeling them when they go in. Take our pork products that go into pickle, etc. There is no reason in the world why we should be required to label them as they go in and when they come out. It is a matter of Mr. Anderson (interposing). Is any pickling done in cold storage? Mr. Weld. No. What temperature are our pickling rooms ? Mr. Chaplin. Thirty-six degrees. \ Mr. Weld. But we do not consider it cold storage and it should not apply to this. Mr. Anderson. When in cold storage it should be made to apply if it is in more than 30 days ; it should apply then 1 Mr. Weld. No. Mr. Anderson. Not to the pickling but to your beef cooling sta- tions ? COLD-STOEAGE LEGISLATION. 315 Mr. Weld. Yes, sir. Now, then, in section 2, 1 desire to call your attention- Mr. Jones (interposing). What wording would you suggest to exclude that that is in process of manufacture. Mr. Weld. We have not gone into that in detail, but as I under- stood that the committee would prepare another bill of its own, and have one from the Department of Agriculture to consider, I was go- ing to suggest that if we could help in that matter we would be glad to do it. We are not prepared to say just how that should be at this time. The Chairman. Will you sumbit detail suggestions as to this par- ticular matter? Mr. Weld. That is, you mean suggest a wording ? The Chairman. Yes ; what should be segregated. Mr. Weld. I might say that on the whole we believe that the so- called "model bill " covers the situation about as well as it has been, and as well as it can be, certainly. The Chairman. I understood you to say it would be proper to mark certain goods, and not others ? Mr. Weld. Yes; I was saying it would be impracticable to re- quire us to mark goods in the cooling cellars because that is a manu- facturing process. The Chairman. What have you to say as to the President's sug- gestion as to marking prices ? Mr. Weld. It was his suggestion as to marking the prices as origi- nally paid for them ? The Chairman. Marking on the article the market price at which it was placed in cold storage and the market price at which it came out of storage — for the consumer's information ? Mr. Weld. I think that would be extremely unfair, for the simple reason that the public have no conception whatever of the cost of marketing different commodities. The Chairman. I understood you to say that you were in favor of proper reports? Mr. Weld. Yes, sir. The Chairman. You favor the Secretary requiring reports from time to time? Mr. Weld. Yes, sir. The Chairman. Are the books kept so that they may be easily checked and reports verified ; or would it be proper to authorize the Secretary to prescribe the method of keeping the books ? Mr. Weld. I will let Mr. Chaplin answer that question, as he is an accountant. Mr. Chaplin. They all keep very complete books; in fact, they have to keep complete records of all the business. The Chairman. Do they keep them uniformly? Mr. Chaplin. I think the large warehouses have complete and practically uniform books. The Chairman. Do you think it would be right to prescribe the method ; to authorize the Secretary to prescribe the method of keep- ing books? Mr. Chaplin. I think it could be done very simply. The Chairman. You have no objection to that? Mr. Chaplin. No, sir. 137690—19 21 ;U6 COLD-STORAGE LEGISLATION. The Chairman. How about giving the Secretary the privilege of administering oaths to witness ? Mr. Chaplin. That would be entirely satisfactory. The Chaieman. What have you to say about the $50 license fee suggested in Mr. Hutchinson's plan? Mr. Weld. Yes ; I was about to come to that. That says : A license shall be required for each separate warehouse building. We think that would be hardly fair for us, because, for instance, we have a great many warehouses in Chicago that we consider as one establishment; and it seems hardly right to require a separate license for each separate building. The Chairman. Should it be graduated? Mr. Weld. No ; I think it should be considered under one group or ownership; that is, all in one locality should be considered one establishment. The Chairman. Are you in favor or against a license fee? Mr. Weld. Oh, I think we would have no objection to it, would we? Mr. Chaplin. Net at all. Mr. Hutchinson. Are they all doing an interstate business; all your different warehouses that you speak of? Mr. Weld. Yes, sir; they are. Mr. Hutchinson. Well, how could you get at that to make a re- port if you do not have some license fee ? Mr. Weld. Well, have a license to cover the group, I suggest. The Chairman. A regulation can be provided for without resort- ing to the license method. Mr. Weld. Oh, yes. The Chairman. The regulations can be provided for without a license. It would be a question for the committee to determine whether they should be through the license method or some other rnrnner of regulating? Mr. Weld. Yes, sir. The Chairman. Have you given any thought whether it should bo through licensing or otherwise? Mr. Weld. I don't think we have given any special thought to it, but I think we have no objection to the licensing system, depending, of course, on the reasonableness of it. The Chairman. You were quoting the prices on hides; were tney the prices received by the packers ? Mr. Weld. Those prices on hides ? Yes ; they were. The Chairman. The prices on hides quoted were apparently whole- sale prices? Mr. Weld. The prices that the packers get. The Chairman. The price to the packers? Mr. Weld. Yes, sir; that is the price the packer gets for cured hides. The Chairman. One contention is that the packers sell to subsid- iaries and that immense profits are made by them ? Mr. Weld. There is nothing at all to that so far as Swift & Co. are concerned, and I believe not as to the other packers. The Chairman. Are you familiar with the Garfield report? Mr. Weld. I read it a good while ago. Mr. Chaplin. I was connected with that investigation. COLD-STOEAGE LEGISLATION. 317 The Chairman. Some one made an investigation and reported that hides were sold at a lower price than they were worth. Mr. Chaplin. No ; that was merely an arbitrary method of figur- ing the costs, but it did not actually affect the costs at all. Mr. Weld. There are one or two other points in connection with Mr. Hutchinson's bill. The 10-months' limit, for instance; that is not a very serious matter, because I suppose 95 per cent of the goods are moved out within that time; but there are small amounts of stores that we desire at times to carry 12 months, and sometimes longer than that. As long as this is merely a checking up and guaranty that goods will not be kept too long we believe the better period is 12 months, with the privilege of continuation at the end of the 12 months after an inspection and with the consent of the Secretary of Agriculture or who ever is in charge of the matter. The Chairman. Should there be one maximum time limit apply- ing to all products in storage? Mr. Weld. Yes; we do not see any need for a different time for the different products, because all we carry do not deteriorate. The Chairman. Some deteriorate quicker than others? Mr. Weld. Yes; but all of them are practically exempt for a year. The Chairman. What is the limit for fish, for instance? Mr. Weld. We have not kept any fresh fish at all. The Chairman. How long are eggs generally stored ? Mr. Jackson. Nine to 10 months, and sometimes they are car- ried 11. The Chairman. What commodities are carried 12 months? Mr. Jacksox. Sometimes poultry, and sometimes butter. Mr. Chaplin. And pork. The Chairman. Is that salted? Mr. Cttaplin. No; frozen. The Chairman. How does freezing affect the beef? Mr. Weld. I never ate any frozen beef, but they say it is not quite so juicy or tender. The Chairman. I was in Chicago some years ago when a strike was on in thp packing plants and the stock yards. Froze" beef was being shipped in from the country. I was told that it was not a.s desirable as when kept at low temperature. Is that correct? Mr. Weld. I think it is not so desirable. But, of course, there are various grades of beef, and you take a good corn-fed steer and freeze the carcass, and I imagine it would still be very good beef when it was thawed out and served. The Chairman. The aualitv, of course, has something to do with it? Mr. Weijd. Yes, sir. Mr. Hutchinson. You speak of a time limit of 12 months. I notice you store four or five months out of the year. Why should you have 12 months when you are storing all the time? In other words, your chart shows you are storing five months on every article; why should yon ask for 12 months when you arc buying the goods in all the time? Mr. Chaplin. Well, the goods put in in the first month, th(> time begins to run right Ihen on that. Mr. Weld. And the eggs, for instance, the last ones in are the first out. You notice by the tables the June eggs come out first in 318 COLD-STOKAGE LEGISLATION. August and Septembier, and the May eggs do hot come out until Christmas. Mr. Hutchinson. You hold them because they are better? Mr. Weld. Yes ; the condition is better. Mr. Hutchinson. Do you get a better price for them? Mr. Weld. No, Mr. Jackson says. Mr. Jackson. It depends on the market. Mr. Weld. There is another thing I desire to call attention to, and that is section 8 : " That nothing in this act shall be construed to prohibit the shipping, consigning, or transporting fresh food in properly refrigerated cars within the United States to points of destination; nor, when received, to prohibit the same being held in a cooling room for a period of 48 hours ; and provided further, that nothing in this act shall be construed to prohibit the keeping of fresh food in ice boxes or refrigerators in retail stores while the same is offered or exposed for sale." Now, it would appear that that clause would apply to our branch houses where we have cooling rooms, cooling beef and other products, and according to this we would be allowed to hold them only 48 hours. That is too short a time. We could not carry it out at all. There is a qiiestion whether the whole act should not be worded to exclude our selling houses. They have a cold-storage temperature. We can not sell our beef out in two days, for example, after we get it into Washington. We can not be sure enough of the freight cars or the dsmand for stuff. Suppose we got in two or three carloads of beef a day, and could not get any more for two or three days; it would be absurd to make us unload that on the market. This should not apply to our selling rooms. The Chairman. Do you think it applies to your selling rooms? Mr. Weld. It apparently does, from the wording of the bill, be- cause it says it shall apply to all buildings or places employing re- frigerating machinery or ice for the purpose of refrigerating, or a place otherwise artificially cooled in which articles of food are stored for 30 days or more. Goods are sometimes kept 30 days or more at our brtinch housrs. The Chairman. Do you desire more than 30 days? Mr. Weld. Yes, sir. Mr. Hutchinson. A cooling room is not a refrigerator, is it? That refers to a place where there is a refrigerator. Mr. Weld. I am not really clear. As I read this it seemed to me that if we shipped a load of product to a branch house it would re- quire us to sell it within 48 hours. Mr. Hutchinson. It does not mean that. Mr. Weld. If it does not mean that, what does that refer to ? What is the object of that? Mr. Hutchinson. It is where you ship in a refrigerating car, for instance, at a selling place. It exempts the retail men whete they put it in an ice box. Mr. Weld. Well, if it could not be construed as applying to our selling house it would not be serious from our point of view ; but in the details of that, wh-n it comes to the final ^raft of the bill we would be glad to go over the bill and point out anything that is'' not advantageous to our business or unfair to us. Mr. VoiGT. Why do you not submit a concise brief to the com- mittee showing your objections to the Hutchinson bill? COLD-STOEAGE LEGISLATIOIT. SlQi Mr. Weld. I would be very glad to do that, Mr. VoiGT. -Or suggest any improvements in the bill. I think the committee would be glad to hear what you have to say. Mr. Weld. Is it worth while to do 'that? I understood the com- mittee would draw a bill of its own, or is there any such intention? Mr. Anderson. It would be helpful to the committee in drawing up a bill. Mr. Weld. I would be glad to do that. Mr. Anderson. I would like to ask one question : It was intimated by a witness before the committee this week that the packers might be in favor of the Kenypn and the Kendrick and the Anderson bills because those bills were ineffe-tive and only applied to interstate and foreign commerce. Do you think there is any ' Mr. Weld (interposing). No, sir; I do not think there is any basis for that construction. We do not agree to have our business segre- gated for drastic regulations and supervision by a Government offi- cial to do with as he pleases. We do not think it would be fair and it woul4 be a danger to the country as well. You will find there is no danger of our supporting those bills. Mr. Anderson. Aren't we singling out the cold-storage business in the bill we are considering now ? Mr. Weld. Not for drastic legislation whatever. Mr. Anderson. You might be surprised at the cold-storage legisla- tion when it comes out. Mr. Weld. I do not think I will be surprised. You gentlemen will not consider a bill that will single out one particular business for drastic legislation; you are considering Mr. Hutchinson's bill, and that bill would not in the main be objectionable to us. The Chairman. Mr. Weld, we have several bills before us. There is a demand for the regulating and making of feeds and fertilizers, and the control of the packing industry. I do not think it can be said that any member of this committee wants to destroy any worthy or legitimate enterprise, whether big or small; we desire now to draft legislation necessary to deal with cold-storage commodities — and later the other matters — we desire suggestions and when we have full information we will draw a bill that is fair and considerate to all concerned. I believe that is the sentiment of every member of this committee. I think you will agree that these hearings have been fair and that it is not our object to put any worthy enterprise out of business. Mr. Weld. Absolutely ; they have been fair, Mr. Chairman. Mr. Jacowat. Before you went into the employ of the packers, Mr. Weld, what was your business? Mr. Weld. I was a college professor. Mr. Jacowat. With what institution? Mr. Weld. With the Yale University. Mr. Jacowat. How long? Mr. Weld. For two years I was professor of business economics. Mr. Jacowat. How long had your attention been directed to the question of economics and of the markets? Mr. Weld. I was specializing in that before; I was in that work seven years altogether; I was for a time with the University of Minnesota also. Mr. Jacowat. You wrote this book before you went into the employ of the packers? 320 COLD-STORAGE LEGISLATION. Mr. Weij). Yes, sir; before I had any thought of going with the packers. Mr. Jacowat. Can you give the committee any idea of how to reduce the high cost of living? That is the object of this meeting, and what are your own conclusions? Mr. Weld. "That is the hardest question I have had asked me to-day. Mr. Jacowat. That question is being asked seriously. Mr. Weld. Of course the truth of the matter is that there is no single way, one way or possibly no combination of ways, that can bring about any immediate reduction in prices in general. The present high prices are world phenomenoUj and they won't go down until the world production begins or is increased considerably as compared with the present demand for goods. And all the foreign countries are not now producing as they should. When the foreign countries have been able to get on a greater productive basis ; when even the people of this country produce more goods for the length of time they work. I think that if anything the shortening of the hours and the general spirit of the laborers the result has been a slackening — ^possibly not a slackeningof production, but production has not increased as it should have. Possibly it is a lack or slacken- ing of production for the same labor put forth. In other words we are not going to have any considerable change in price level until production in general for the world is increased and gotten back to a normal basis. I could tell you lots of things not to do to bring down the cost of living; for example, like putting the present stores of cold-storage goods on the market ; a lot of things like that I could tell you not to do, but just exactly to tell you what to do I could not say. Of course a limitation of exports would help to bring down prices Mr. Jacowat (interposing). In your book you have a very inter- esting chapter to me entitled " The High Cost of Eetail," and your opening sentence is that the profit is more than all the other profits Mr. Weld (interposing). I did not put it that wav; I said his expenses. Mr. Jacowat. If that is wrong, yoii correct me. Now, is that quite justified? Mr. Weld. Well, on the whole I am not satisfied that retail prices can be brought down to any great extent. I am not sure that the small corner retailer that gives full service in the way of deliveries and charge accounts and carries a large variety of goods has come to stay. I believe the chain stores represent a saving in a great many ways, but even in chain stores the small retailers and the small grocer is going to be in business, and his per cent of doing business is around 18 to 20 per cent; that is, to get a living he has to get a margin of 25 or 30 per cent of the selling price. The only way to get away from that is chain stores or cooperative stores, but coopera- tive stores have not much change from the private stores, because most people demand as much service from the cooperative store as they do from the private store. Tn the chain store there is a large reduction, because of the buying in large quantities and the doing of a cash business and no deliveries, and the possibilitj'^ of distributing goods f I'om one store to iinothor. COLD-STOEAGE LEGISLATION. 321 Mr. Jacoway. I would like to ask you this question? What per cent of the overhead of the retailer is chargeable to the credit system ? Mr. Weld. Well, I know where the total cost of doing business is around 18 to 20 per cent, the expenses due to the credit system, that is, the accounting cost and the loss from bad debts probably would not be over 1^ to 2 per cent of the total sales ; that is, out of a total cost of 20 per cent. In other words, only about one-tenth or less than one-tenth of the cost of doing business of the retail store could be chargeable to that. Mr. Heflix. If I understood you correctly a while ago, you said that when production of every kind was restored to its normal state that would do more to bring prices down than anything else ? Mr. Weld. Yes, sir ; I think also Mr. Heflin (interposing). The production here and abroad? Mr. Weld. Yes, sir. Mr. Heflin. Then, don't you think that the sooner peace is de- clared and every agency gotten to work along those lines the better ? Mr. AVeld. I believe that is what Mr. Taft said in the paper this morning. I agree with him on that, I think. Mr. Heflin. I agree with him very heartily. Mr. VoiGT. Well, Professor, you haven't any concrete recommen- dation to make for bringing down the so-called cost of living in the near future? Mr. Weld. I am awfully afraid that I have not. As I say, a limi- tation of exports would tend to bring it down ; the sale of wheat at a lower price would tend to bring it down. But I am not saying I am advocating either of those things. Those are the two most im- portant ways if the American people thought it worth the candle to do that. Mr. VoiGT. Do you think it worth while for the American people to lay an embargo on the export of foodstuffs ? Mr. Weld. I do not believe it would be a good policy. I do not believe we could afford to do it, both on account of our duties to the • rest of the world and the disturbance to the export connection and trade we are trying to develop. Mr. VoiGT. Don't you think the principal cause of the high prices is the inflation of the money supply ? Mr. Welp. Yes, sir ; undoubtedly it is. ' Mr. VoiGT. The Government could take steps to reduce greatly the inflation by requiring an increased amount of banking reserves. Wouldn't that have the effect to reduce prices ? Mr. Weld. I believe that it would, although I do not wish to go on record on that matter, as to the artificial deflation of currency. My own feeling has been, always has been, on a subject like that that it will regulate itself. That is the question of export and imports. One reason we have so much currency is that other people have been paying us so much for our products. Just as soon as they quit buy- ing so much and we have to buy more outside that will tend to cun that situation. Mr. Tincher. What do you think of legislation to put the whole- sale dry goods man, the wholesale clothing man, and the wholesalei furniture man. and such middlemen into the producing world and let the retailer, the retail man who is of necessity an essential 322 COLD-STOBAGE LEGISLATIOK. because he ^ves the consumer the opportunity to have his choice of articles ; let the consumer deal directly with the retail man, and the retail man directly with the manufacturer or producer and eliminate that portion of our industrial country that pays the most income tax, and really serves the least good ? Mr. Weld. Well, to answer you in a few words — you have asked me a few questions-r-in fact, if you will read my book you will get a pretty good answer to that question. I will just say in substance that certain services have to be performed in getting goods from the manufacturer to the retailer and somebody has to perform that, and the present system of the middleman has grown up for the simple reason that that is the best economical method and there is ample justification for the middleman including the wholesaler, and I do not believe it would be feasible to take any steps to do away with the wholesaler. Mr. VoiGT. Let me ask what is the prejudice to frozen beef that you referred to ? . Mr. Weld. The chairman asked about that, as to where it was infe- rior. It is considered slightly inferior to the fresh product; not so tasty and less juicy. Mr. VoiGT. Now, if I understood you correctly, fresh meats are not stored as other food products are. Mr. Weld. Fresh meats without freezing are not stored at all ; they can not be. We have difficulty getting rid of them before they mold. Mr. VoiGT. What I want to know, is there a large amount of fresh pork and beef held over from one season to the other ? Mr. Weld. No, sir ; a very small amount. Mr. VoiGT. The amount is not as large as the eggs, for instance ? Mr. Weld. Of course, there is very little, if any, held over from one season to the other. Mr. VoiGT. The testimony is here that about 10 per cent of all the eggs in the country goes into cold storage. Mr. Weld. Yes, sir. Mr. VoiGT. Now, what proportion of fresh meats goes into cold storage ? Mr. Weld. About 5 per cent of fresh meat, I think. Mr. VoiGT. What is the longest ordinary period that fresh meats are held in cold storage ? Mr. Weld. I think four or five months, on an average. Mr. Chaplin. The average is 4 or 5 months, and the limit 10 months. Mr. VoiGT. At what temperature is that meat held in cold storage? Mr. Weld. It is frozen. Mr. Jackson. It is frozen below zero and then carried at a tempera- ture of about 10 or 12 degrees above zero. Mr. VoiGT. But this meat kept in that way is not what you refer to as frozen beef ? Mr. Weld. Yes ; it is kept that way. I say the great bulk of our meat is not put into storage that way. It is chilled and not frozen, and we can only put a small quantity into the frozers outside of war times, because we can not sell it. The trade does not like it. Mr. Chaplin. The trade does not like it, because you have to have an ax to cut it or an arrangement to thaw it out. Mr. VoiGT. What is the total turnover of Swift & Co. ? Mr. Chaplin. The total sales last year were a little over $1,200- 000,000. This year, up to August 1, about $900,000,000, the increase COLD-STORAGE LEGISLATION. 323 being due principally to the higher prices than to the increased vol- ume. That has been the increase of our sales the last few years rather than the tonnage ; it as been the high prices rather than the tonnage, although that has increased. Mr. VoiGT. Can you state the size of the five leading packers? State the relative size of the five packers ? Mr. Weld. The relative size ? Mr. VoiGT. The relative size by output ? Mr. Weld. Swift & Co., Armour & Co. — you want them in the order ? Mr. VoiGT. Yes. Mr. Weld. Swift & Co., Armour "& Co., Morris & Co., Wilson & Co., and Cudahy & Co. ; they come last. The Chairman. What percentage of cold-storage commodities enter into interstate shipment? Mr. Weld. We haven't any figures. What proportion of our cold storage enters interstate commerce? The Chairmajst. Yes; from the plants? Mr. Chaplin. Practically all ; practically 100 per cent. _ The Chairman. I take it that you have cold-storage houses in the city of New York, for instance, and that you sell directly from those plants in the city, which would not enter into interstate commerce after leaving the plant. Mr. Jackson. We store the bulk of our product. The Chairman. You have cold-storage houses in Chicago and sell direct from them ? Mr. Jackson. We ship out 85 per cent of it. The Chairman. That is your estimate. Mr. Jackson. I said practically all of it. Mr. Weld. No; that that is consumed in Chicago and Illinois Mr. Jackson (interposing). Well, we will ship products out of Chicago in small lots, and will also bring products from Iowa to Chicago to be consumed there and both enter interstate commerce. The Chairman. Can you state what per cent that leaves cold- storage houses enters into interstate commerce? Mr. Jackson. I would say better than 85 per cent. The Chairman. Of the amount shipped in from other States to your houses ? Mr. Jackson. Yes ; and then goes out. The Chairman. No; shipped in and delivered to the trade there? Mr. Jackson. Just a small per cent. The Chairman. It has been the practice, Mr. Weld, to allow those who appeared before this committee and its members to revise or extend their remarks, so if you desire to add anything to this you may do so. Mr. Welds. Very well. There is one little table I want to present showing the stock of eggs, butter, poultry, frozen beef, and pork products on hand July 1, 1919, and the percentage of the total pro- duction of the country that those stocks represent. For example, the stock of eggs on July 1 was 7,508.530 cases; only 7 per cent of the annual production of eggs. Of butter there were 87,851,731 poimds, or 6 per cent of the total production of butter. The 7,508,030 cases of eggs, if they were put on the market and consumed 324 COLD-STORAGE LEGISLATION. normally and no other eggs consumed, they would Mst the country about 22 days. The butter that was in cold storage, if it were put on the market and no other butter were consumed, it would last the country about 20. days. The poultry that was on hand at that time was 48,895,000 pounds, which is only 3 per cent of the total annual production, and would last about 10 days if placed on the market and no other consumed. The Chairman. That has reference to the present time ? Mr. Weld. Well, from July 1. If that had been thrown onto the market July 1 that would have lasted 10 days. Of frozen beef there was 162,386,570 pounds, and that was only 2 per cent of the total annual production, and it would have lasted seven days if thrown on the market, and if we consumed no other beef. Of pork products there were 1,047,808,000 pounds, which repre- sented 10 per cent of the total annual production, and would have lasted 35 days had those pork products been thrown on the market and we had consumed no other pork products. In fact, about two- thirds of this pork was in pickle and in process of being cured and was not yet ready for the market. The supply ready for market would not have lasted more than about 10 days. I mention these figures because they are rather interesting in connection with the recommendation that the present stock of food be thrown on the market. The point is, that we should have bigger rather than smaller stocks to last us through the winter. The Chairman. What is the high point? Mr. Weld. That is practically the high point of eggs and butter. The Chairman. July 1 is the high point ? Mr. Weld. Yes, sir. Mr. Jackson. I think August will be high on butter. (The table referred to is as follows;) Bureau of markets reports on hand July 1, 1919. Amount. Percentage of total production. Would last— Eg?s ; .cases. . Butter pounds. . Poultry J do Froien beef do Pork products, including lard do 7, .WS, S30 87,851,371 48,895,000 162,386,570 1,047,838,000 Days. 10 7 35 About two-thirds of tills quantity is in process of being cured in pickle and salt and is not ready for market. The Chairman. We are much obliged to you for vour testimony, Mr. Weld. The committee will recess until 10 o'clock to-morrow morning, when the committee will meet in joint session with the Senate Com- mittee on Agriculture and Forestry. Hearings on cold-storage leg- islation will be resumed Monday morning at 10 o'clock, when thei committee will hear a delegation of mayors from the State of New Jersey. (Thereupon, at 6.30 o'clock p. ni., the committee adjourned until 10 o'clock to-morrow morning.) COLD-STOEAGE LEGISLATION. Committee on Ageictjlture, House of Representatives, Washington, D. C, Monday, August 18, 1919. The committee assembled at 10.30 o'clock a. m., Hon. Gilbert N. Haugen (chairman) presiding. Present: Members of the committee and the following Members of the House and officials of municipalities in New Jersey : Eepre- sentatives Daniel F. Minahan and Thomas J. Scully ; Mayors Charles P. Gillen, of Newark, N. J. ; Frank Dorsey, of Perth Amboy ; James F. Gannon, jr. (vice mayor), of Jersey City; D. H. Slayback, Verona; Dr. John Plopper, Eidgewood; Eobert E. Torrane, Kear- ney; CliflPord L. Newman, Paterson; Edward E. Folsom, of Irving- ton ; John H. McGuire, Passaic ; John J. Griffin, representing Mayor Mravlag, of Elizabeth; Mayor Marshal WooUey, of Long Branch, Commissioner John Picken, of Montclair; and Dr. Underwood Cochran, commissioner of parks and public property, Atlantic City. The Chairman. We will hear from the mayors and other officials of municipalities in New Jersey. Will you please state your full name and official position ? STATEMENT OF HON. CHARLES P. GILLEN, MAYOR OF NEWARK, N. J. . Mr. Minahan. Mr. Chairman, this is Mayor Gillen, of Newark, K J., chairman of the mayors' committee of New Jersey munici- palities, who desired to speak to the committee. The Chairman. We are very glad to have you with us, Mr. Gillen. Mr. Gillen. My full name is Charles P. Gillen; I am mayor of Newark; and I would like to give you the names of the others who are present. The Chairman. Very well. i Mr. Gillen. Mayor D. PI. Slayback, of Verona, N. J.; Commis- sioner John Picken, of Montclair ; Dr. John Hopper, mayor of Eidge- wood ; Mayors Frank Dorsey, of Perth Amboy, Eobert E. Torrance, of Kearney; Clifford L. Newman, of Paterson; Vice Mayor James F. Gannon, jr., of Jersey City ; Underwood Cochran, commissioner of parks and public property, Atlantic City; Mayor Edward E. Fol- som, of Irvirgton; A. S. Wildey, commissioner of revenue and finance, Nutley; Mayor John H. McGuire, of Passaic; John J. Griffin, representing ikayor Mravlag, of Elizabeth ; Mayor Marshall Woolley, of Long Branch ; and Eepresentatives Minalian and Scully. 326 COLD-STOEAGE LEGISLATION. The Chairman. May I ask what arrangements you have made as to the division of time, and how much time is desired by your dele- gation ? Mr. GiLLEN. We would like a day or two ; but you may not want to give us that much time. The Chairman. You desire the whole day? Mr. GiLLEN. Whatever time you can give us. About 10 days ago we called a meeting of mayors of municipalities in New Jersey at Newark. That meeting, was attended by mayors and other representatives of a great many New Jersey municipalities. The subject under discussion was the cost of the necessaries of life^ and particularly food. We took the matter of food up and discussed it at some length. Each official expressed his opinion as to what should be done, and as to the conditions existing in his municipality ; so that we got a very good idea of the general conditions existing throughout the State of New Jersey. And as a result of that meeting we formulated a set of resolutions which we forwarded to Congress through our Eepresentatives from New Jersey. I believe those resolutions have been presented to Con- gress, and I suppose they will be referred to your committee, or some other committee. Mr. Young. Have you a copy of those resolutions, so that they can go in the record? Mr. GiLLEN. I can get you a copy. Congressman Minahan, have you copies of that resolution? Mr. Minahan. No ; I have no^ copy with me. Mr. GiLLEN. Congressman Scully, have you a copy? Mr. ScTTLLY. Yes. (The resolutions referred to are as follows:) August 8, 1919. At a conference held to-day of mayors and other representatives of the municipalities of New Jersey at the Newark City Hall, the question of the cost of food and other necessities was thoroughly discussed. Everyone present ex- pressed the opinion that the Nation was confronted with a serious menace, and they believed the exorbitant prices were the result of profiteering. It was generally agreed that food prices were going beyond the reach of the ordinary wage earner, and that as a result the spirit of unrest and discontent noticeable for some time vs'as growing rapidly, and that everything possible should be done by the Federal Government to meet the situation with determined action. All representatives reported that they were either selling the Government foods or were about to proceed with the saie of them. The national authorities were commended for selling the foods to the municipalities for distribution. It was asserted that this could be, however good, only a temporary remedy, and that eventually the supply would be terminated, and that the National Govern- ment must, in order to protect the people, act quickly, employing every remedy at hand to force a proper distribution of the food supply of the Nation at proper prices. The follovsdng resolutions were adopted : " Resolved, That we, the mayors and representatives of the municipalities of New Jersey, acting for the people of this State in meeting assembled at Newark, N. J., August 8, 1919, congratulate the Federal authorities on the distribution of Army foods through municipalities, and offer to the President and his Cabinet and Congress the support of New Jersey in their efforts to reduce the cost of the necessities of life. " Be it further resolved, That the people of New Jersey respectfully urge the President and Congress to complete at the earliest possible moment all plans for the punishment of food profiteers and for reducing the cost of foods ; that no effort be spared until all available means within the power of the President and Congress be used to accomplish this purpose, and that if necessary all food- COLD-STOEAGB LEGISLATION. 327 storage houses and plants be taken over by the Government and tTie contents distributed in equitable manner. "Committee on resolutions: Charles P. Gillen, Mayor of Newark, chairman; Frank Hague, mayor of Jersey City; Victor Mrav- lag, mayor of Elizabeth ; David H. Slayback, mayor of Verona ; Frank Dorsey, mayor of Perth Amboy ; Marshall Woolley, mayor of Long Branch; Dr. Underwood Cochrin, representina Atlantic City." Mr. Gillen. Our trouble in New Jersey, I suppose, is similar to the trouble in other States. The high cost of living has unsettled all living conditions there. The wage question is up in the air. We feel, after that conference and one that we had this morning, that there can not be any fixed condition in the matter of wages and employment until we get the prices of food, clothing, and housing fixed, particularly the prices of food. Once we can get the price of food down to something like normal, we feel that the labor question and the wage question will probably right itself to a great extent. We find in our municipalities this condition: Our municipal em- ployees and the employees of private concerns come before us and before their employers and say, "Here, we have got to have more wages, because the price of food is so much. And when we are in- quiring about those prices we find that, instead of any reduction in the near future, our dealers tell us that there is going to be a further increase in the price of food, and therefore we have got to have more wages." Now, that creates strikes where increases are refused. Increases in some cases are impossible, and then along comes the strikes, like we have in the city of New York to-day. And it is all due, it seems to me, in New Jersey, to the unsettled prices of food. We feel, of course, that this ever-increasing cost of food and the other necessities is due absolutely to profiteering. Every representa- tive of a New Jersey municipality who is here to-day feels, the same way about it. In our little conference that we held this morning we decided to have each one make a suggestion and jot it down on paper and to present all those suggestions to you gentlemen for your consideration. One of these suggestions was to have a special Federal commission on exports. Another was to have the Government take over the refrigerator cars used for carrying meats and other foodstuffs on the railroads or to supply refrigerator cars that all producers might use. The understanding now is, I believe, that all of these refrigerator cars on the railroads are owned by private companies — ^by the packing houses principally. Another suggestion was to have not only the foods sold as they are sold now by the Federal Government, through the municipalities to consumers, but to have leather, clothing, and all other commodities that are in general use by the people now held by the Government and owned by the Government sold as directly as it is possible to sell those commodities. The understanding now is that a great deal of these materials are sold to the large dealers from whom the Gov- ernment purchased them. For instance, it has been pointed out by Mayor Slayback, of Verona, this morning that leather was sold in Philadelphia and in 328 COLD-STOEAGE LEGISLATION. Chicago at a price higher than the Government paid for it when it was purchased; whether that is true or not I do not know; that is the report that we have received ; and it seems that this leather was bought back again by the big leather combinations that did not want it to go on the market, and were willing to pay any price for it in preference to having it go on the market and supplying a certain amount of competition, which would pull down the price of leather. The Chairman. What evidence have you of the Government sell- ing leather back at advanced prices to maintain the prices? Mr. GiLLEN. In regard to the leather ? The Chairman. Yes. Mr. GiLLEN. I have no evidence. Let me say that Mayor Slay- back has made the statement, and it was reported in the newspapers that the leather was sold in that manner; and I think you will find that those in charge of the sales of these things by the Government right here in Washington will admit to you that they sold the goods at a much higher price than they paid for them. I know that they admitted that to me in the matter of foods within a week; I got it from the department ; they admitted to me that they sold goods at a much higher price than they paid for those goods. Mr. TiNCHER. Do you recall what those goods were? Were they canned stuff? Mr. GiLLEN. Canned stuff, particularly. Mr. TiJ^CHER. Were they sold back to the canners? Mr. GiLLEN. I don't know to whom; sold to private parties,; it was not sold to municipalities. Another suggestion is to have the Government release, as early as possible, all foodstuffs now held. Mr. Young. Held by the Government? Mr. GiLLEN. Held and owned by the Government. It seems that when we_send in orders from these various municipalities for some of these foods, we are having some difficulty in getting certain foods; and when we inquire we find out that there are quantities of these foods that we can not get very readily — goods still held by the Govern- ment but that have not, as I understand it, been declared surplus. And our suggestion to-day is to have the Government release at the earliest possible moment all foods now owned by the Government. Mr. McLatjghlin of Michigan. All surpluses, I suppose you mean? Mr. GiLLEN. All surpluses — well, there is a difference of opinion there as to what is surplus and what is not surplus. It is up to the various department heads, as I understand it, to declare what is surplus in this commodity and that commodity, and what is not surplus. Mr. McLaughlin of Michigan. I presume the War Department will reply that a certain amount is needed and in the future will be needed for the Army? Mr. GiLLEN. Yes. Mr. McLaughlin of Michigan. And that part, at least, can not be and ought not to be put on the market ? Mr. GiLLEN. That is true. Mr. McLaughlin. But you mean the actual surplus? Mr. GiLLEN. Our idea is to sell what is the real surplus. There are goods now held and owned by the Government which they say COLD-STOKAGE LEGISLATION. 329 they will release and will declare surplus within a short tune; but our idea is to hasten the release of^ those goods and to have them declared surplus as early as possible, so that we may be able to market them through our municipalities. Mr. TiNCHEE. Of course, you understand that Congress has passed a resolution ordering the departments to do that ? Mr. GiLLEN. I did not know that. Mr. TiNCHEK. And that is pretty nearly as far as we can go in the matter. Mr. GiLLE>-. Well, that covers our suggestion; we did not know that, and we thought we would urge that point upon you. Mr. McLaughlin of Michigan. It was not quite that, was it, Mr. Tiiicher? Mr. TiNCHEE. Yes. Mr. McLatjgtilix of Michigan. In the House resolution we re- quested, or suggested, the advisability of doing that. Mr. TiKCHER. Directed the doing of it; the resolution called at- tention to the fact that they had neglected to declare those foods surplus and it ordered theni to do so. Mr. McLaughlin of Michigan. Well, it was only a House resolu- tion, and it could hardly order them to do anything without the action of both Houses. Mr. TiNCHEE. Well, it went as far as the House could go, and I think it resulted in the selling of the goods that they ordered sold. Mr. RuBEY. Well, the War Department is obeying the mandate of the House, is it not? They are selling these goods? Mr. McLaughlin of Michigan. I think they are; but my sugges- tion is that it was not an order, not a mandate, but being passed only by the House it was only a request or suggestion. Mr. EuBEY. Yes ; it was not a direction. Mr. GiLLEN. We have no criticism to make of the action of the War Department in the distribution of these foods; but we merely want to respectfully urge the early release of all other surpluses, because the War Department may not be cognizant of the great de- mand for those goods, as we are at the present time in our munici- palities' in New Jersey. We have no difficulty in selling at all, and we run out of the supplies that we receive very rapidly. The Chaieman. What have you to say as to other supplies ? Why should the department dispose of the food supplies and not the other supplies of which it has a surplus ? Mr. GiLLEN. We came here to-day to urge that the department dispose of all other supplies, too. The Chaieman. All its supplies? Mr. GiLLEN. Yes ; shoes and clothing The Chairman (interposing). Harness and those things which enter into the cost of production ? Mr. GiLLEN. Yes. The Chairman. Wagons and implements? Mr. GiLLEN. All other supplies. The Chairman. Automobiles and trucks? Mr. GiLLEN. Yes. The Chairman. All surplus supplies? Mr. GiLLEN. Yes. 330 COLD-STORAGE LEGISLATION. Mr. McLaughlin of Michigan. As you know, Mr. Mayor, there is a special committee investigating the War Department. In the course of tlie liearing before one of the subcommittees of that com- mittee it developed that some kind of an arrangement was made for the sale of some of these food products to municipalities. But I gather from the testimony and from statements by members of that subcommittee that some regulations diflScult for a municipality to comply with had been imposed, and that that line of work had not been Ifirge or very effective. Do you know anything about that? Mr. GiLLEN. The sending out of foodstuffs, for instance? Mr. McLaughlin of Michigan. To the municipalities. Mr. GiLLEN. Well, I think that the War Department made that very easy for any municipality, as I understand it. In New Jersey, of course, we have no difficulty. Our municipalities have the power to go into the food business and the selling of food, so we have no difficulty there with that matter at all. Mr. McLaughlin of Michigan. You found no difficulty or im- practicable conditions imposed in those regulations ? Mr. GiLLEN. Not a particle; but, as I understand it, to cover the municipalities that did not have that power to go into the selling of food the War Department agreed to ship the food to the municipal- ity, provided the mayor or other executive officer would act as the sales distributor, or whatever the term of the position might be. If the mayor of a town not having that power would act as the agent, as I understand it, the War Department would consign the food to him. And it would be very easy for him to pick out a committee to handle the sale of the food after he received it. Mr. McLaughlin of Michigan. And did many of the municipali- ties of your State take advantage of that? Mr. GiLLEN. Yes, sir, a great many of them. Mr. McLaughlin of Michigan. How many ? Mr. GiLLEN. I could not say; I imagine there must have been at least 50. Mr. McLaughlin of Michigan. And what kind of products did their purchases cover? Mr. GiLLEN. Well, in Newark, I bought hams, bacon, all kinds of canned goods, sirup and sugar. I got some sugar from the Equali- zation Board. Mr. McLaughlin of Michigan. How much money was required, altogether to make those purchases in your city ? Mr. GiLLEN. We have not paid the Government a cent yet. They have not asked a cent from us, although we have been buying from them for two or three weeks ; they give us credit. Mr. McLaughlin of Michigan. Were the prices fixed so that you know what your obligations are? Mr. GiLLEN. Absolutely, yes. Mr. McLaughlin of Michigan. Do you know how much it reaches to altogether ? Mr. GiLLEN. Our purchases so far? Mr. McLaughlin of Michigan. Yes. Mr. GiLLEN. I thinl? our purchases would run up to a couple of hundred thousand dollars. Mr. RuBEY. In Newark alone ? COLD-STOKAGE LEGISLATION. 331 Mr. GiLLEN. Yes ; I am not sure about that, but I think it is pretty- close to that. Mr. McLaughlin of Michigan. Generally speaking, what was the result as to lowering of prices, if it effected a lowering and a help to the people ? Mr. GiLLEN. After we had been selling a few days, the repre- sentatives of the chain stores — we have a number of chain stores that sell provisions and groceries of all kinds — came to me, and they wanted to handle these goods, charging us 5 per cent for the cost of handling ; and then a great many of the independent storekeepers also came, and they wanted to handle the goods. But we have not entered into that plan yet. We have continued to sell the food at fire engine houses, with voluntary help. Now, we have absolute evidence that the price of much of this food has been lowered in our city as a result of the sale of Government foods. Before we purchased the goods, we sent our inspectors around to the various stores and got the food prices on all of these foods. Mr. McLaughlin of Michigan. Their prices to the consumers? Mr. GiLLEN. To the consumer; the retail prices. Then we pur- chased the goods and added a little something for the cost of handl- ing, trucking, etc. — very little; just the bare cost. And since that time, we find that, particularly, canned goods, all sorts of canned goods, have been reduced in price. Mr. McLaughlin of Nebraska. About what per cent? Mr. GiLLEN. Well, it is rather difficult to say ; but in many cases there has been rather a substantial reduction ; as much as 2 or 3 cents on a can ; there may be a 10 per cent or 15 per cent reduction. Mr. McLaughlin of Michigan. You added something to the price you paid the Government to cover your proper expenses? Mr. GiLLEN. Yes, sir. Mr. McLaughlin of Michigan. Can you tell whether or not the amount you added would have been a reasonable amount for a re- tailer to have added? Mr. GiLLEN. Absolutely not. Mr. McLaughlin of Michigan. That is, that you can not tell or that it was not ? Mr. GiLLEN. Oh, yes ; we can tell. It would not have been a rea- sonable amount. We merely added the bare cost; like on bacon, we added 2 cents a pound. Mr. McLaughlin of Michigan. Then you pursued a course that was not open to the dealers? Mr. GiLLEN. Not open to the dealers. Mr. McLaughlin of Michigan. The distributors and the retail dealers in your city — you pursued a course, then, that was not open to them? Mr. GiLLEN. Absolutely; yes. The Chairman. How does the price paid the Government com- pare with the retail price? Mr. GiLLEN. For instance, on bacon, we paid the Government in the beginning 34 cents a pound for stripped and 36 cents for canned bacon. The price of bacon of a similar quality, according to our expe- rience, was 50 or 60 cents a pound retail. We saved at least 14 cents 137690—19 ^22 - '^ 332 COLD-STORAGE LEGISLATION. a pound. Now, on the price of ham we paid 30 cents, I believe, at the beginning. Mr. VoiGT. Do you know what the Government paid for it? Mr. GiLLEN. I do not Itnow. The Chairman. I understand you bought it at a 20 per cent dis- count on the cost? Mr. GiLLEN. I believe that is what the Government stated at the time. The Chairman. You bought it, then, if it cost the Government 35 cents a pound, at 7 cents discount? Mr. GiLLEN. I understand that we were paying about 80 per cent of the cost of it. The Chairman. Yes; 20 per cent discount. At the cost to the Government of 35 cents a pound, you purchased at a discount of 7 cents a pound. In reselling you added 2 cents a pound for ex- penses ? Mr. GiLLEN. We added 2 cents a pound. The Chairman. You should have been able to put every retailer out of business at that rate ? Mr. GiLLEN. No ; the quantity is not sufficient. The Chairman. If that plan was carried out, no retailer could sell it at a loss of 5 cents a pound, could he? Mr. GiixEN. No; he could not. The Chairman. How do the wholesale prices compare with the price paid by the Government? Mr. GiLLEN. The wholesale prices? The Chairman. The prices that the retailer pays to the whole- saler ? Mr. GiLLEN. We were buying under those prices. The Chairman. And selling retail under the wholesale prices? Mr. GiLLEN. Selling under wholesale prices, particularly on tha meats; I do not know so much about on the canned vegetables; but on the bacon and the ham we were buying under the wholesale price at New York. The Chairman. Your plan, then, is to do away with the distribu- tor entirely? Mr. GiLLEN. No ; that is not my plan. The Chairman. You can not expect the distributor paying rent and expenses to sell bacon and ham at 5 cents loss per pound ? Mr. GiLLEN. No ; I do not think he should. Mr. ExjBET. You do not expect this Government supply to last forever, do you? Mr. GiLLEN. No. I consider that this is merely a temporary sup- ply for the emergency. We feel that by dumping that for the, bene- fit of the public at this time it will have a tendency to pull down the other prices ; it will supply a certain amount of competition with the dealers and make them come down in their prices. Mr. McLaughlin of Michigan. Has it had that effect? Mr. GiLLEN. It has, as I have tried to explain. Mr. VoiGT. Let me ask you a question there : Does the public un- derstand that this is a temporary proposition, so far as the supply is concerned? Do they also understand that these costs or prices that they are paying for these articles are below the wholesale prices for COLD-STORAGE LEGISLATION. 333 the articles, that it is a temporary proposition; or are they beins.led to believe that these things can be sold at these prices at Which they are getting them now as a permanent proposition? Mr. GiLLEN. No ; they understand, I believe, as well as we do. that there is a certain supply there, and when that supplj' is all sold out, that finishes the selling, as far as the Army foods are concerned, by the Government. The Chaibman. This is just temporary relief? Mr. GiLLEN. It is and it is not; it may result in breaking down the profiteering prices that we have been paying recently. The Chairman. Do I understand you to favor a policy of dumping what is in cold storage upon the market at the present time for the purpose of regulating and bringing down prices? Mr. GiLLEN. We also come here to make that suggestion, that all of the foods now contained in storage warehouses that are being hoarded be sold in the same manner. The Chairman. If it is being hoarded; I think we all agree on that ; but what knowledge have you as to hoarding ? Mr. GiLLEN. I understand that the Department of Justice has already found in many States vast quantities of food that are being hoarded. The Chairman. The evidence before this committee is that there is not a suiRcient amount of any food product in storage to carry over the supply 20 days, and that there is only from 7 to 10 per cent of the total amount produced being. held in cold storage. Havo you niade any investigation as to the amount of butter and eggs held in storage ? Mr. GiLLEN. We have investigated it in our city, but I do not know the amount of the supply that is stored there. I could not estimate it in the number of days, but the Department of Justice has found vast quantities of food stored there in some of our storage warehouses and in Jersey City. That, it seems to me, if released would feed our population there for more than 20 days. The Chairman. If you now place on the market the supply that is intended for the period of scarcity would it not enhance the prices at that time, and would you not have to pay that increased price later on or go without the food? For instance, eggs are not pro: duced during the winter months or in the fall. If you dispose of all the eggs now very few will be produced after this time, and the result will be that the price will be very high in the fall or winter or you will go without eggs. That is one contention. What have you to say as to that? Mr. GiLLEN. The only thing that I can say is this: Recently there Jiave been a great many storage houses created for the storage of food in our section, and, as I understand it, all over the country. I have been informed by some of these men in the storage business that they have these chain-storage places reaching clear across the continent. Now it seems to us, from all the evidence we have in our city, that there is stored at the present time, probably, from 10 to 20 times the amount of food that we used to store 10 years ago — or say 5 years ago. And if that is the case we wonder why all of that food is stored there? 334 COLD-STOKAGB LEGISLATION. The Chairman. That is exactly what we have been trying to find out for the last 10 days. But we are told by the Department of Agriculture and by every witness that has appeared before this committee on that point, that there is only a limited amount being kept in cold storage at this time. There is slightly more, of course, than in previous years, but they explain that Mr. GiLLEN (interposing). Well, has not the Department of Jus- tice seized some of the food in storage warehouses in some of the States? The Chairman. So I understand. Mr. Tin CHER. Well, how do you explain that? The Department of Justice comes here before this committee and makes light of those cases you read about in the newspapers. For instance, some eggs in Ohio Mr. Lee. Chattanooga, Tenn., it was. Mr. TiNCHER. Chattanooga ; and they explained that they did not exactly understand the process — that there were probably enough eggs to supply the city of Chicago, at the rate they are using eggs, for one week; but at any rate they all agree that the amoimt is not exceeding 20 days' supply. Mr. EuBEY. Eight there, was it not the gentleman from Swift & Co. who made that statement ? Mr. Tin CHER. He said they did not have more than that. Mr. EtTBEY. But you stated that the Department of Justice said that. Mr. TiNCHEE. He said it was under the Department of Justice. I suppose he referred to the New York Department of Justice; he did not have full information on that. Of course, if the Department of Justice has information to show that foodstuffs are being hoarded, I think it is the duty of the De- partment of Justice to give this committee that information. Well, we have had a man here who says it is not anything like Mr. GiLLEN (interposing). They have only recently started; I understand. Mr. TiNCHER. Yes. In your State you have a State law regulat- ing the number of months that they can keep products in cold stor- age, have you not? Mr. GiLLEN. Yes. Mr. TiNCHER. Now, the President recommended that we get as near as we could, within constitutional limitations, to the food laws of your State in the Federal law. Now, do I understand correctly, then, that you think that there is too much in cold storage in your State? You do not think your State law is effective? STATEMENT OF HON. JAMES F. GANNON, JR., VICE MAYOR JERSEY CITY, N. J. Mr. Gannon. I think I can answer your question, Mr. Congress- man. I do not want to interrupt Mayor Gillen, but I went over all of those cold-storage laws last week — and particularly the one to which the President referred in his message to .Congress — so that when the time comes I think I can explain it. Mr. TiNCHER. Just answer it, then; I am not very familiar with it. COLD-STOEAGE LEGISLATION. 335 Mr. Gannon. We have a storage-warehouse law in New Jersey. It is some chapter of the Laws of 1916, which is a revision of the law passed while President Wilson was governor of New Jersey in 1913. It is a very effective law. It is very easy for the United States district attorney, under that law, in any part of the State of New Jersey, to ascertain just exactly the quantity of goods that are in storage, because the consignor and the warehouseman have got to report to the State commissioner of foods the quantity of goods on storage the 1st of every month, and then also make quarterly reports. It would be possible for the Attorney General of the United States to go into New Jersey, to go into only one place, the statehouse at Trenton, and find out in one day, if he had enough clerks to send there, the quantity of goods on storage in New Jersey. I made an investigation of the situation. I am commissioner of taxes in Jersey City ; I made an investigation last May in an effort to tax this merchandise. Theretofore Jersey City had adopted a policy of taking a certain assessment from the warehousemen instead of disturbing the customer. We found that the city of Newark got approximately $12,000 from its warehouses. We determined that 2,000 out of 3,000 of the reports were insufficient. We subpoenaed the warehouse people, under section 13 of the general tax law, to get their books ; we got their books, examined them, and made a list of every article of food stored last May by the Merchants' Refrigerat- ing Co., amounting to over $5,000,000 worth. Now, I approximate, from the study of the situation that I made in Jersey City, that there are at least $12,000,000 worth of perishable merchandize in storage warehouses in Jersey City. I can prove that. Mr. Tin CHER. You believe in the proposition of storing perishable goods for the season that they are not produced, do you not ? Mr. Gannon. Yes, sir. Mr. TiNCHEH. And you think that now there is an excessive amount stored in the State of New Jersey? Mr. Gannon. Yes, sir. Mr. TiNCHEE. Well, your law compels a man to dispose of the stored goods within a certain time; do you think that law is suffi- cient? Mr. Gannon. I do ; but I do not think it is being prosecuted. Mr. Young. Well, why do not your State officials act under the State law, instead of coming here before this committee and asking for legislation? If you have a State law of the State of New Jersey, that must be administered by State officials, why do not your mayors and prosecuting officials get hold of the men who violate that law ? Mr. Gannon. I will answer your question. In Jersey City, we have handed all of our evidence to the prosecutor ; we are not going; to wait for the State officials ; we are going to indict them right in Hudson County, the same as we did with Swift and Armour in 1914, when Gov. Fort was governor ; and we would have convicted them at that time, except that the governor would not give us extradition at that time. Mr, Young. Well, you are coming down here asking us to do some- thing under the United States laws. You admit that you have somo law on the matter in New Jersey, which must be administered locally by the State authorities in New Jersey ; and if you have a local and State remedy in New Jersey, why do you dump the trouble on this committee of Congress, when you have the remedy already in hand ? 336. GOLD-STORAGE LEGISLATION. Mr. Gannox. I do not intend to burden j'ou with that trouble; we will take care of that in Hudson County, as far as Hudson County is concerned. We do not want Federal assistance, and we do not want State assistance. They will be indicted. Mr. Tin CHER. You understand that we are holding hearings on a bill introduced by Mr. Hutchinson, which is stronger — that is, gives the Government more power than the legal department advises us that we have a right to go ; and it is practically, we understand, along the lines of your law. Now, the legal department tells us that Con- gress can not go as far as the State laws can, because we can not catch everything; we must catch what we can imder the interstate clause of the Constitution or under the taxing j)ower. Mr. Gannon. You can get a majority of them under your inter- state commerce power, because these foods are not made in New Jer- sey. For instance, I think the prunes that we have come all the way from California ; the articles are not produced in New Jersey. Mr. TiNCHEE. What has been your experience of the result of the New Jersey law? Has it brought the foods supplies on the market? Mr. Gannon. Our experience is that these food supplies are being hoarded in New York, to affect the prices. Mr. TiNCHER. Well, we have an antihoarding law, a Federal law against hoarding foodstuffs, but it is a war measure. Mr. Gannon. Then, I suggest this in connection with your Gov- ernment law: We have sufficient Government laws. And we have sufficient information, or can get sufficient information, under our State law, to give your United States Food Administration so that they can prosecute these interests under the food act. Now, I suggest New Jersey as a starting place, because we have such a good food law, that enables you to get a line on everything that is in storage. Mr. Anderson. We have the same power under the Federal, law to-day. Mr. Gannon. I am not familiar with the Federal law. Mr. Anderson. That information is all available. Mr. Hutchinson. That is under the food-control act. Mr. Anderson. Yes; under the food-control act. Mr. Gannon. But the point I make is this: In some of the States, where they are not required to make these monthly reports to the secretary of state, you may take a longer time to get the information that you can get in New Jersey; you can go to one place in New Jersey and get all of that. Mr. Anderson. The New Jersey cold-storage foods are distributed very largely in New York City, are they not? Mr. Gannon. And we believe for export: The stuff that is around the port of New York, we believe, is consumed in the City of New York and the metropolitan district, or is held there for export. Mr. Anderson. It would seem to follow from your statement that the normal consumption capacity of Jersey City would not be a true basis upon Avhich to determine whether the food is hoarded in that city or not, M'ould it not ? Mr. Gannon. I do not think it would, because I do not think by any means that the goods that are hoarded, if they are hoarded in Jersey City, are meant for Jersey City consumption. The best place in the United States for a storage warehouse is around the port of New York, because New York is a port of export, and there is a COLD-STOKAGE LEGISLATION. 337 larger consumption there than anywhere else; naturally tliat iis the logical place for a warehouse. Mr. Anderson. Wellj the difficulty we would encounter in passing Federal legislation lies m the fact that it is very questionable wliether goods stored in a warehouse in New Jersey are in interstate commerce or not. Probably they would be while they were on their way to the cold-storage warehouse, but whether they are in interstate commerce when they are in the warehouse or not is an entirely different ques- tion ; and upon that question the legal authorities of the Department of Agriculture advise us that in their opinion those goods are not in interstate commerce when they are in the warehouse. Mr. Gannon. I can only say this — and it is on a tax subject, by tlie way — that the United States Supreme Court has held that those things are in interstate commerce; and of course, we are forbidden to tax goods in transit, under a Federal inhibition of some kind — it is part, of the Constitution, I think. But if those goods remain in Jersey City, when the transit is broken, they are no longer in interstate commerce; they are under State laws. , Mr. Anderson. That is exactly the difficulty we have in the execu- tion of the Federal law. which applies only to goods in interstate commerce. Mr. Gannon. I have just obtained a copy of this Hnt/chinson bill (H. R. 7970), and I would make one suggestion, in addition to the law that we have in the State of New Jersey, for this bill. I have not read it, so that I do not know whether it is in it or not. I think if the United States Government could ascertain in some way the cost of production, and compel the men consigning those goods to approximate, as well as the date upon which those goods are stored, the cost of production, that when they got to the consumer, and the retail and the wholesale selling prices were known, it would go a long way toward stopping profiteering. I do not know whether the United State Government can ascertain the cost of production in any event. Mr. Anderson. Well, we have that power in the Department of Agriculture, and they have been trying to ascertain the cost of pro- duction of wheat for 10 or 12 years, and are as far away as ever, and I think the same difficulty would arise on anything that comes out "of the ground, for the reason that the costs are very widely different; they differ a great deal between the different producers. They might be able to ascertain the cofet at which they went into storage. Mr. Gannon. That is just what I want. Mr. Anderson. That is a very different thing from ascertaining the cost of production. Mr. Gannon. Well, the cost at which they enter storage is based on the cost of production. Mr. Anderson. No; that is not based on the cost of production; it may be very much higher or very much lower than the cost of pro- duction. - Mr. Gannon. Well, I think the proper remedy is to ascertain the cost, and I know of no one better than the Federal authorities to ascertain the cost of production. • Mr. HtTTCHiNSON. Let me help you out as to that point. You say you in New Jersey have an efficient law. Do you realize that two- thirds of the States have no law whatever, and that in those States 338 COLD-STORAGE LEGISLATION. they can store food as long as they want to and then take it to New Jersey ? Mr. Gannon. That is why I suggested that. Mr. Htitchinson. You want a uniform law in every State? Mr. Gannon. Yes, sir ; I think food laws should be uniform, just as I think divorce laws and automobile laws ought to be uniform. Mr. Hutchinson. They can ship food products from Texas, where they do not have any cold-storage law, keep it there as long as they want to, and then ship it to New Jersey and keep it there a year. Mr. Gannon. So that that food can be removed from a State that does not have any law and then be taken to New Jersey and stored there? Mr. Hutchinson. Yes; and that is what this bill is intended to remedy. Mr. Gannon. That is a very good bill, then. Mr. Young. You have made one suggestion as to the bill. But to get back to the point of the cost in storage. Of course, it can be ascertayied what the cost at which those things go in storage is. Would you be in favor of requiring to be stamped on those articles the cost at which they went into storage, and then as they left stor- age and went into the hands of the jobber, would you want that cost price to be still stamped on them, and the selling price to be stamped on them? Would you carry that idea all along the line, to the re- tailer when he goes to sell the article to the individual farmer, and would you have that apply to dry goods, to hardware, to farm im- plements, and to the whole category of things that enter into con- sumption ? Would you be in favor of that kind of law requiring the stamping at every step, from the producer into storage, and to the wholesaler and the retailer ? Mr. Gannon. No, sir; in the first place, I do not think there is any necessity of life that is hoarded as much as food. I do not know whether any other article or necessity of life is controlled as much as food is; but I think that food is hoarded. And I should say that stamp belongs there for Government information, so that the United States Government can tell at any time whether there is profiteering going on, and would know where to charge it. Mr. Young. Do you not think that the farmer would have a just right to complain if they required from him the price of producing the food products that he produces — and they would have to go into that proposition to ascertain the price at which it goes to the con- sumer; do you not think that the farmer could with much justice say, " If you are going to do this in regard to the product that wa produce to feed the world, then we insist that a similar requirement be adopted in the law as to what we buy. We buy shoes, and we buy farm implements ; and we buy the things to produce these food products; and if you are going to stamp our article with the cost of production, we think that you should do the same as to the articles we buy"? Mr. Gannon. I think that would be a very natural correlative of a law of this kind; and I would not blame the farmer, when the shoe man tells him, " Beware, you must pay $20 for shoes next year," and we hear in France they are paying only $3 and $4. I do not know how far the principle would apply. IBut I say to-day it is a question of *' passing the buck." Armour and Swift blame it on COLD-STORAGE LEGISLATION. 339 the farmer; and the farmer blames it on Armour a,nd Swift. The retailer blames it on Armour and Swift. If you get the price at which the foods went into the storage warehouse, you would not need to let anybody pass the buck; you would know just what profit each made. I do not want to prevent any man from making a reasonable profit. Mr. Young. Then the farmer has a right to say that he, being a consumer of manufactured articles, ought to know that profit that is being made on him. Mr. Gannon. Well, that is up to him, Mr. Tin CHER. If you want to know who is "passing the buck," as far as the farmer is concerned, do you not think that, with equal force, you would be able to say that as to other things they are being made " the goat " ? Mr. Gannon. I suppose he is in some things. . Mr. TiNCHEE. You would not want to see the farmer made the "goat," would you? Mr. Gannon. Absolutely not. Mr. TiNOHEK. You would not want him to pay all the bills, would ycu? Mr. Gannon. Absolutely not. Mr. TiNCHER. Then do you not think that it should apply to other necessities of life, and not leave it to those produced by the fanner alone? Mr. Gannon, I have not given the matter sufficient thought to say whether that would be too radical. From what the Congress- man says, I think it is a very logical conclusion; I think it is logical, if you are going to do it with foodstuffs, it should be done with other necessities. Mr, Young. The farmer is paying $135 for a farm wagon that cost $65 before the war. He is paying this tremendous price for shoes; and the same is true of the clothing he and his family have to wear, and of his machinery that he harvests his crop with, and his labor scale has gone up from $1.50 a day to $4 or $4.50. And the cost of his fertilizer is absolutely prohibitory. Mr. Gannon. I agree with you entirely about that. Mr. Young. When this committee reports, you people in those congested centers must remember that we must always have in mind that the chief concern is that we must not do anything here that will discourage production, because we must have an abundant produc- tion in order to relieve the situation. Mr. Gannon. I realize that, and I know what a hard job you have; because practically, certain production is in the hands of multimillionaires, and you must be very careful. The general pub- lic does not realize that. If Armour and Swift laid down, it would be a pretty difficult matter for you gentlemen to move them, unless the Government took it over. Mr. Jacoway. Let me interrupt you just a minute : You said some- thing about an indictment against Armour and Swift in New Jersey ? Mr. Gannon. Yes ; they were indicted there. Mr. Jacoway. Please detail the circumstances under which they were indicted, and the difficulties you had to encounter there. 340 GOLD-STORAGE LEGISLATION. Mr. Gannon. I do not know under what law they were indicted. I can give you the information that they were indicted by a grand jury in Hudson County, when Governor Fort was governor. Mr. Jac'oway. Under what law? Mr. Gannon. I do not know. Mr. JacOway. They were indicted? Mr. Gannon. They were indicted — I think for hoarding food- stuffs. Mr. Jacoway. And you could not get them extradited because some other governor refused to recognize extradition? Mr. Gannon. I think so, and I believe the governor's excuse at that time was that the indictment was an illegal indictment; and I think the court of errors and appeals afterwards sustained the governor in holding that that was not a legal indictment; it was something technical, I know. Mr. Jacoway. How could j^ou ascertain the truth of the matter when you could not get. the defendants into court ? Mr. Gannon. Well, the evidence was presented before the grand jury ; a prima facie case was made out. Mr. Jacoway. What court adjudicated the matter that sustained the governor? What court heard the appeal? Mr. Gannon. The court of errors and appeals, the highest court of the State ; it said the indictment was bad afterwards. The Chairman. You say that you have made an investigation and can state the amount of food held in cold storage in your State? Mr. Gannon. Yes, sir. The Chairman. Have you the report? Mr. Gannon. I have the report of three warehouses in Jersey City, as of last May. The Chairman. Will you furnish the report to the commitj:ee, so that it can be compared with the report of the Department of Agri- culture for New Jersey? Mr. Gannon. I will be very glad to do so, although I do not think it will be as serviceable as you want, as to information relating to the present time, because it relates to last May, when the country was at war. The Chairman. You are speaking about the amount in storage in your State. Do I understand you correctly to say that it is largely ill excess of the requirements of your State ? Mr. Gannon. Oh, yes, undoubtedly. The Chairman. Is it not possible that much of it is carried for export ? Mr. Gannon. Yes, sir ; and I do say, Mr. Chairman, that I am not prepared to say whether it is hoarded or not ; the Government ought to find that out. The Chairman. That seems to be the bone of contention; on one side it is alleged to be hoarding, and on the other it is denied. Can you give the committee any information as to how much foodstuffs are being hoarded at the present time ? Mr. Gannon. I can only give you the amount, of goods on storage, who owns them, whom they were consigned from, when they went in, and their value. GOLD-STORAGE LEGISLATION. 341 The Chairman. At this point I will quote from the testimony be- fore this committee of Mr. Marshall, of the Department of Agricul-^ ture, so that w© may have it in connection with your statement. For instance, concerning the production of butter, he says : The production In the country is not far from 1,600,000,000 pounds pei- annum. He continues : Tliu largest iunouiit in storuse at any time, so far as our reports go, is a little over 100,000,000 pounds. So that the largest percentage of butter on the year's production we have knoN\n in cold storage at any time is approximately 7 per cent. Would you consider that hoarding? Mr. Gannon. No, sir. But your situation is just this : You may as well ask anybody to count the stars ; you might as well say, " There are a million stars ; if you don't believe me, count them." You have 48 different States, and no laws to tell you, in most of them, how much they have in cold storage. The Chairman. Yes; every cold-storage plant is required to make reports, whether the States have laws or not. Mr. Gannon. To the Government? The Chairman. Yes ; all are required to make a report ; if they do not report they are subject to a penalty. Mr. Gannon. Are those Government figures? The Chairman. Yes ; Mr. Marshall represents the Bureau of Mar- kets of the Department of Agriculture. I will read what he says as to cheese being held in cold storage : The production of chee.se in the country might be roughly estimated at something like 400,000,000 pounds per jear. The largest amount of cheese that we have had in cold storage at any time is approximately 100,000,000 pounds, so that the largest storage holdings at any time is approximately 25 per cent of the annual prod'iction. Cheese does not go entirely out of storage in the consuming season, as in the case of the other commodities I have men- tioned * * * The production and consumption of meat for the entire country is, perhaps, about 12,000,000,000 or 15,000,000,000 pounds. The largest amount in storage at any time during the time tliat we have obtained reports, including both meats and poultry — meats of all sorts — was approximately 1,200,000,000 pounds. Accordingly, the amount of meats in cold storage, so far as we can estimate roughly, is something like 10 per cent of the annual consumption. Mr. Gannon. Of course, I want to remind you that butter and cheese have a monthly turnover production; that that 7 per cent relates to a month, and it would be twelve times that month for a year : if in the month of November there would be Y per cent of the supply in cold storage, that would be twelve times that or 84 per cent of what was yielded in that particular month; it is a turnover product. The Chairman. But how about eggs? My recollection is that ho stated that not to exceed 10 per cent of the "total yearly production of eggs were kept in cold storage. Mr. Gannon. I know those quantities are in storage at Jersey City. The Chairman.' I think what the committee would like to know, and the one important thing in considering this proposition, is the facts concerning hoarding. 342 COLD-STOEAGB LEGISLATION. Mr. Gannon. May I suggest this: Is not the proper thing to do to find out what is in storage, and then turn to the men who have it in storage, and the men who assume these things, and let them prove that there is not any hoarding? The Chairman The Government reports show in storage the 1st of July : Not to exceed 10 per cent of eggs, 10 per cent of meats, 7 per cent of butter. I state them from memory. Mr. Gannon. Assume, just for the sake of argument, that 50 per cent of our butter and eggs are exported; I do not suppose there is that much exported, or that particular percentage. But that would double your percentage. The question is, is that hoarding? If that amount went to this country, then the amount held in storage, so far as the American public is concerned, would be double that per- centage. The Chairman. Those figures include both the export and the do- mestic consumption ; the amount in storage does not exceed the per-, centages I have indicated ; so it is difficult to say that it indicates very much hoarding. Mr. Gan2v'on. My point is this: That if 12,000,000,000 tons of meat are produced in this country in a year, and 8,000,000,000 tons of meat are exported, then you should not allow even 10 per cent of the total to be hoarded, because I would consider that to be hoarding, so far as the American public are concerned. The Chairman. I take it that whatever enters into foreign ship- ment must be stored for a reasonable time. Mr. Gannon. It would be very difficult for Congress to say, with- out better evidence than I could give them, whether the storage of the vast quantities of stuff in and around the metropolitan district is hoarding or not, because it is not for consumption in Jersey City. The Chairman. The committee will be very glad to have the benefit of any information that you may have along that line, to aid in determining the question. Mr. Gannon. Yes, sir. « Mr. McLaughlin of Nebraska. These figures that the chairman read indicate that of those three products, eggs, butter, and meats of all kinds, less than 10 per cent of the annual supply is in storage at any one time, which would mean that, perhaps, not exceeding a 15- day supply for this country was on hand. Now, if those figures are correct, would you regard that as hoarding ? Mr. Gannon. No, sir; I would say that that is good business. I think we ought to always have 10 or 15 days' supply — certainly. What I object to is an abnormal storage of goods to control prices. Now, gentlemen, I might as well finish as long as I have started. I am only going to say a few words more. That is in regard to the Government distribution of Army surplus food supplies. I think there is a point in that that a great many people overlook. Just as you have suggested, this thing is not permanent. We have passed a resolution in Jersey City to buy $300,000 worth of those goods. We put our initial order in for $100,000 worth. The Gov- ernment's terms are cash in 30 days, or return of .the goods if the municipality has not the franchise or the law to purchase them. We are disposing of our goods in Jersey City a little differently froin: Newark. We have called a meeting of ail the merchants in Jersey City. We have said to them, " We are going to buy $300,000 worth COLD-STOEAGE LEGISLATION. 343 of foodstuffs. It is your patriotic duty to handle these goods." We have not had any of them renege. We are going to have one cen- tral station, and there we will receive the goods, and the merchants will call there and get them, and over 100 points of distribution are going to be accessible in Jersey City, so that the public will not have to go to one single point to get the foodstuffs. That is so far as our merchants are concerned. We are authorized to do that; we can buy any quantity of foods under chapter 3 of the laws of 1918. I think the point that a good many people overlook is this : Con- gress is undoubtedly confronted with one of the gravest problems they have had for years, and it is a question whether the problem <;an be solved. There is no question, however, that the Army surplus foods will soon be exhausted. The public is going to get a taste of prices 25 to 40 per cent below what they have paid for the last year, and what they are paying to-day. I want to say to you gentlemen in Congress that you have a very dangerous proposition on your hands when that supply gives out, if by that time Congress has not solved the question of the high cost of living. You have in all congested cities, like Jersey City, Newark, and New York, a cosmopolitan population, many of whom are not citizens. These people are getting to be very restless. I think it is among this class of people that Bolshevism breeds. It is going to result in a tremendous amount of dissatisfaction, after the Army supplies are gone, if Congress has not solved the question of keeping prices down by that time. Mr. Young. May I ask a question at this point? You have very many manufacturing enterprises in your city and very much wealth ? Mr. Gannon. Yes, sir. Mr. Young. Have you ever taken up with your manufacturers this proposition — they are wealthy people; have you ever suggested to them, as manufacturers, that they are a patriotic people ; if they can gradually reduce the scale of their prices for the materials that go down to the 110,000,000 of American people, they will set a good ex- ample, and that it will have a good effect all around ? Mr. Gannon. Well, they are all kicking now, and saying that the Government is taking all of their money; they claim they are not making a dollar. Mr. Jacowat. You see Congress has a far-reaching and delicate question to solve, and you have gone, according to ypur testimony here, into many of the activities that enter into the problem. The object of this committee, and of the Senate committee, is to solve the question how we can reduce the high cost of living. After your ex- tensive study of the matter, can you give to the committee any con- crete, definite suggestion as to a way in which the high cost of living can be reduced? Mr. Gannon. I have only considered the high cost of living from the standpoint of foodstuffs, principally foodstuffs that are stored in refrigerating plants ; and the concrete suggestion that I have to make to this committee to-day is that the cost of production be ascertained by the United States Government, and that the cost of production be stamped on the original package that is to be put into storage, as well as the date that the article is stored. That is the only suggestion I can make. 344 GOLD-STORAGE LEGISLATION. Mr. Young. Now, you make that suggestion that applies only to food that is made on the farm. Let me suggest this: The farmer's product is made once a year ; it is a 12 months' proposition with him before he gets his turnover. He is the greatest gambler in the whole category of citizenship we have, because he has the seasons to con- tend with, and insects to contend with, and labor costs to contend with, and higher prices for the stuff he buys to make this food to con- tend with. You say stamp on these packages the prices at which these things go into storage. That will relate back to the farmer. He does not know what it will cost. To illustrate : Recently it was reported that there would be 1,200,- 000,000 bushels of wheat produced in this country ; but the drought and insects came along, and now the estimates have been reduced to something like 800,000,000 bushels, if my memory serves me right as to the figures ; so that in that one thing alone you get this situation, that it is impossible to tell what is the cost of producing any particu- lar agricultural product. You may have fine prospects for crops to-day; to-morrow it withers away, and it passes away, and you do not get your yield. And it is a yearly turnover — turned over once a year. Whereas, you take the manufacturing interests of the country. Theirs is a bookkeeping proposition. They have not got these indefi- nite data to contend with that the farmer has ; and, if the stamping of the cost price is a sound economic proposition as to the cost of food, why is it not sounder still as applied to those things that the manufacturer's books are allowed to show? Mr. Gannon. Perhaps it is. Now, to reiterate what I said before, the only reasOn why I would hot recommend that to your committee is that I have not studied the proposition far enough. I have been studying the food proposition. I think I am fairly familiar with that subject. Mr. Jacowat. In line with the suggestion which has been mad6 here, you are familiar with the fact that the Federal Government has been engaged for the past 15 years in trying to find the cost of production. So far as the cost to the farmer of producing a bushel of wheat is concerned, it costs him more to produce a bushel of wheat when he does not use tractors than it does in a case where tractors are used. If it should be ascertained that it is absolutely impossible to find the cost of production, would not your whole suggestion fail? Mr. Gannon. As far as that suggestion is concerned, if the cost could not be ascertained, of course, you could not stamp the cost on the package. Mr. Jacowat. And we would be where we commenced ? ' Mr. Gannon, Yes, sir. Mr. TiNCHER. Let me give you an illustration in regard to the cost of production. When I came here for this session of Congress in May it looked as if the State of Kansas would have the best wheat crop in its history. It looked as if the cost of production of that crop of wheat would be reasonable. There are sections now in that State where by reason of the climatic conclitions after the month of May they have gone ahead and harvested the wheat, and the cost of production in certain localities was probably as much as $3 or $4 COLD-STOKAGB LEGISLATION. 345 a bushel. It takes as much work and costs as much to go over an acre of ground, whether the wheat is there or whether it is not there, and so it is very difficult to ascertain the cost of production because of the effect of certain climatic conditions, and so you can see some- thing of the difficulty which the Department of Agriculture would have in ascertaining in time for this year's consumption the cost of the production of wheat, no matter how efficient the employees they had at work might be. Mr. Gannon. I realize that is a difficult proposition, but if you did not find that out, if you gentlemen should adopt my suggestion, you could find out what the cost was when it was put into storage. Mr. McLaughlin of Michigan. That is what you meant by the cost of production a while ago ? Mr. Gannon. Yes; the cost to the man who puts it in storage; we can find that out. Mr. McLaughlin of Michigan. Then, all this discussion about the cost of production from the usual standpoint is hardly necessary. Mr. Gannon. The point I make is this: If there are five or six processes through which an article goes, or five or six hands through which it goes before it gets to the final consumer, if you can determine the cost at which that stuff reached the third man, you can tell whether the next two or three men are profiteering, but you can not tell whether there has been any profiteering prior to the handling of it by the third man. That is why I suggest the proposition I have made in reference to the cost of production of an article at the place where the article originates, if it is possible to get it, but it has been suggested that the United States Government has been working on tliat for 15 years. The Chairman. It is stated that it requires 4^ bushels of wheat to manufacture a barrel of flour. If the wheat is $2 a bushel, the farmer receives from the miller $9 for the wheat required. After it has been ground the miller sells a barrel of flour to the baker for $13.50 and the middlings and bran back to the farmer for $2. The baker • makes 578 loaves of bread from the barrel of flour, selling at, say, 10 cents a loaf. The hotel keeper Avho purchases the bread cuts each loaf into 10 slices, which he sells at the rate of two slices for 20 cents to his patrons, or at a rate of $1 a loaf. At that rate the 578 loaves of bread made from 1 barrel of flour costs the consumer $578. Have you made a study of prices ? Mr. Gannon. I am not prepared to say I have made a study of prices. The Chairman. Hig:h prices are world-wide, are they not? Mr. Gannon. Yes, sir ; I believe so. The Chairman. How do the prices in the United States compare with the prices in the rest of the world ? Mr. Gannon. The prices to the consumer in the United States to- day? The Chairman. Yes. Mr. Gannon. I understand that you can buy such articles as shoes on the other side cheaper than you can buy them here. I have not made any such extensive study of that as to be able to answer in detail. 346 COLD-STOEAGE LEGISLATION. The Chairman. If you have any information concerning the prices here and in Europe that you desire to give, we will be glad to have it. Mr. Gannon. I have made a study of the matter of storage. An- swering the question of Mr. Young, the champion of the farmer, it is not my purpose to attack the farmer. I do not see how you are going to hurt the farmer if he has to sell the stuff off of the farm at a given price and make Mr. Armour and Mr. Swift and the other people who control the beef of the country to stamp their stuff when it goes into storage with the price they paid for it. I do not see how you can hurt the farmer by doing that. Mr. Young. I thought your original statement went back to the point where it was impossible to do it. Since you have denominated me as the champion of the farmer — and I accept the title — let me make this further suggestion. That is, that the fact is — and you gentlemen from the congested centers ought to know it, if you do not already loiow it — the fact is that the farmer is a consumer, and he has to pay high prices for his things just like you gentlemen who live in the cities have to pay high prices. He has to pay high prices for labor. Multiply that price which he has to pay for the labor on one acre of land by hundreds of thousands of acres and you will get an idea of what he has to pay for labor ; and he has to pay high prices for his farm utensils to put his acreage into productive condition. What is the result, as to the farmer ? He has his family of children, and they cultivate what they can cultivate and leave the other acre- age uncultivated. That is where your theory relates back to the farmer, and it is a very serious proposition. As soon as you cut down that acreage which he can not cultivate, it does not go into pro- duction ; and then where are you going to get the surplus to feed the people with? Mr. Gannon. Let us say, for instance, that the cost of butter was ascertained to be 35 cents a pound at the farm. I do not say keep butter at 35 cents a pound if the farmer's general cost of living has gone up. If he has to pay more for everything he gets, I do not say he should not have more for his products. But if he is not profiteer-* ing he has nothing to be ashamed of. This does not hurt the farmer. This is going to hurt the people who are controlling this stuff. I think the people who are controlling it are the people who are getting the big profit. Mr. Young. The farmer has always contended that the distribution process is where the trouble lies; and probably the trouble, as he says, along that line is that we have a false system of distribution and the spread comes after it leave the source. Along that line, if we .can do anything, we are anxious to do it. The Chairman. Labor is the principal item that enters into the rise of prices, is it not? Mr. Gannon. I think so. The Chairman. Would you be in favor of fixing the price of labor? Mr. Gannon. No, sir. The Chairman. You would undertake to fix the prices of the prod- ucts of the farm without regulating the price of labor? Mr. Gannon. No, sir ; that is an economic proposition that is fixed by tlie demand and the supply. The Chairman. It would have to be fixed before you fix the prices of the products? COLD-STOEAGE LEGISLATION. 347 Mr. Gaisnon. No, sir; you could ascertain the price which the farmer was paying for labor and add to the intrinsic value of the article the cost of the labor that he paid. Then if it cost him more for labor, the article would cost him more to produce. The Chairman. You are aware of the fact that so far as regula- tion is concerned, the farmers are the ones who have suffered. They are the ones who have suffered by the process of the fixing of prices. The price of wheat was fixed at $2; the farmer would have re- ceived $4 for his wheat if it had not been for the interference of the Government; as a result, the farmers are selling it for about $2 in- stead of $4 a bushel. Thank you very much, Mr. Gannon. (Thereupon the committee took a recess until 1.30 o'clock p. m.) AFTEK KECESS. The committee reassembled, pursuant to the taking of recess, at 1.30 o'clock p. m. The Chairman. You may proceed, Mr. Gillen. STATEMENT OF HON. CHARLES P. GILLEN, MAYOE OF NEWARK, N. J. — Continued, Mr. Gillen. Mr. Chairman and gentlemen of the committee, I tried this morning to point out to you and explain what effect the sale of Army goods in Newark has had on the retail market there. We have noticed that in the sale, canned goods, particularly, have been reduced. The retailers in Newark already have reduced the price of canned goods and other foods since the city began the sale of Army foods. This is what I want to say to you, speaking for the city of New- ark. We have the power to continue this business. So far as I have been able to discern we have been unable to combat the profiteers in food except by competition, the competition already supplied by the Federal Government by the sale of these Army foods. But when these foods are exhausted I propose to go right on in the city of Newark to sell food, buying it in large quantities from the producers and selling it, if possible, through the retail stores at certain fixed prices. We have no desire to put the retailers out of business, be- cause, after all, they are the natural distributors. You can better and more equitably distributed foods or any other commodities through the retail stores than you can through any of these agencies we may use in Newark or any other city. So we are going to con- tinue right on. Now, Congressman Young asked the question if you have the power in New Jersey to do thus and so why do you not exercise it; why do you not do it ; why do you come down here and unload your troubles on our shoulders. I do not think he meant that exactly in that language. But I say this in reply to Congressman Young, that you gentle- men represent the Congress of the United States, and I believe you have it in your power to control the prices of the commodities and to prevent profiteering. And I believe this is the greatest problem now confronting you, and it is a problem you can not set aside and 137690—19 23 348 COLD-STORAGE LEGISLATION. you can not throw off of your own shoulders. It is a big problem, and it means a tremendous amount of work, I believe. I believe every Member of Congress has got to realize right now himself that this is a burden he has to shoulder and a problem he has to solve. After all, if you are here representing our Grovernment, in the last analysis you should do something that will take care of the people and their interests, and since you have these powers the powers should be exercised for the general welfare of the people. If there are any ills, any serious ills, that can be cured, it is your duty to cure them, and not only your duty but an obligation which you have on your shoulders to cure these ills. What we have done in the city of Newark and what we are going to do in the city of Newark in a small way later is what can be done in other municipalities. Now, I want to present this phase of the matter to you. If, as has been predicted, these high prices are going to continue, they are going to cause an increase of unrest and dis- content, they are going to make more burdensome the living con- ditions of the people of the United States, going to bring on strikes and riots of all sorts, and that has been predicted now for quite a considerable period of time by the most conservative men throughout the country. If that condition is going to arise, then something drastic must be done to meet that situation and to supply a lemedy if there is any remedy to be supplied. As I said in the beginning, the only remedy you have been able to supply, the only remedy that has been supplied, with all this talk of these investigations, investigations very often do not amount to a row of pins; we keep on investigating and investigating and in- vestigating, and we get nowhere; action is what is required at this moment, drastic action, if you please, but action — the only remedy that has been supplied to meet this great crisis that confronts the American people is the competition of the sale of Army foods. That is the only competition the big profiteers that control the food of the country have had, the only real competition. Now, that competition will be exhausted in a short period of time, and when it is exhausted I say to you that no matter what you may do, no matter what the Federal Government may do, no matter what this Congress may do, the city of Newark is going right on buying with Armour and with Swift and with the rest of these gen- tlemen wherever they can buy any foodstuffs that we need. Since our sale started we have had I do not know how many offers, dozens of offers, from producers of canned soups and vegetables, etc., outside of the' Government who came to our city and wanted to sell their goods to us. We compared the prices, and we have found that their prices are below the wholesale prices in most cases — I think in every case — ^they were below the wholesale prices of food Sold in Newark. So I believe we can go on in the city of Newark doing business. _ Mr. McLaughlin of Michigan. Have you had any communication direct from the farmers or any offers? Mr. GiLLEN. Yes. Mr. McLaughlin of Michigan. To sell to you ? Mr. GiLLEN. Yes ; and probably one of the things which we will have in NeAvark is a great farmers' market and have the farmers sell their products on the ground, under certain rules and regula- COLD-STOEAGE LEGISLATION. 349 tions, or have them handled through some agency in Newark. In the case of fresh vegetables, half a dozen farmers' markets even may be required. Mr. Young. That looks like something practical and a common- sense proposition. Mr. GiLLEN. We have not developed our plan fully, but we have developed it far enough to know that in any event you might as well make up your mind you have got to supply competition in order' to beat the fellow who thinks he controls the whole market, and what the city of Newark is going to do the United States Government can do in a much larger way. I would suggest that the United States Government might con- tinue right on after these Army foods are exhausted and buy the entire product of various commodities. Mr. McLaughlin of Michigan. There is a law on the statute books now to that effect. Mr. GiLLEN. I am glad to know it. They can continue to distribute products through the municipal agencies. Just so long as these high prices continue that can be clone. You have started these municipal agencies selling these goods and they will continue to sell them if you will keep supplying them. But no matter what is done in that direction, we have started to sell them through our agencies and we propose to continue that, and I imagine most of the municipalities will follow our example and make arrangements with the retailers to sell these goods at a very reasonable price and a proper profit. Mr. McLaughlin of Michigan. The :^ood control act contains a section authorizing the President to purchase certain of these food stuffs and resell them, and that act carried an appropriation of $1,500,000 which was to pay the expenses of the Food Administration, and $150,000,000 for other work, including the purchase of commodi- ties by the President. Mr. GiLLEN. You have the very power which I think should be exercised, without any further legislation. Mr. McLaughlin of Michigan. There is another section of the food control act called the licensing section, by which the importa- tion, manufacture, and distribution of necessaries is provided for. But retailers were not to be included and the retailer is described as one whose business does not exceed $100,000 a year. But there was a way by which retailers were reached and control was taken over their prices in this way. When a license was issued to a wholesaler or a jobber with whom retailers had business, the condition of that license was that the retailers to whom these goods Were sold should not exact unreasonable prices, and in case they did, that business with the retailer should be shut off. Now, many, many licenses were issued during the earlier days of that food control act, but nearly all of them were abrogated, set aside and nullified by a proclamation of the President last February. Whether that was wise or not, it was done, but the power to reestab- lish that system in all its vigor is still in the law. What do you thi-Hkofthat? Mf. GiLLEN. That is a good power to have there, if it is exercised. But it is of no use unless it is exercised. Mr. Hutchinson. Why is it a good power, if you do not enforceit? This power has been in the law since August 10, 1917. Why is it a 350 COLD-STOKAGE LEGISLATION. good power if it is not enforced? It has been lying dormant since August 10, 1917. Mr. GiLLEN. I do not know. Mr. Hutchinson. They have just waked up. The Chairman. It was discontinued last February. Mr. GiuLEN. It was looked upon as a war measure, and I suppose it was discontinued at the close of the war. The Chaikman. You would exercise that power only as an emer- gency measure? Mr. GiLLEN. Until such time as prices are brought back to normal. Mr. Jones. You would not advocate a municipal government or the Federal Government going into the business of buying and sell- ing foodstuffs as a general proposition, but only as an emergency proposition ? Mr. GiLLEN. Only as an emergency proposition while these high prices continue and until such time as prices again become normal. Mr. Jones. Then the effect of that on your retail merchants of your city would be somewhat disastrous, would it not? Mr. GiLLEN. I do not think so. My suggestion is that the Federal Government purchase large quantities of food and distribute it through the municipalities, as they have been doing, and we would furnish our retail stores and sell it there at a certain profit. Mr. JoNES. Then it would have a disastrous effect on your whole- salers ? Mr. GiLLEN. It is better to have a few suffer than to have the masses suffer. Mr. Jones. Do you find that the wholesalers or the retailers make an unreasonable profit in the sale of these necessaries? , Mr. GiLLEN. I think they are all making a large profit. Mr. Jones. Do you regulate the price at which the retailer must resell the goods? Mr. GiLLEN. We can very readily do it. The retailers now in oUr city want to sell these Army foods we are purchasing, and they agree' to sell them on a certain percentage basis, on a basis of 5 per cent. Mr. Jones. Are they doing that as a patriotic measure, or as a busi- ness, or economic proposition? Mr. GiLLEN. I do not know ; I can not read their thoughts. Mr. McLaughlin of Michigan. I presume there has been some complaint in your city that prices of milk have been too high ? Mr. GiLLEN. Yes, sir. I will tell you something about milk. Mr. McLaughlin of Michigan. The food control act provides pun- ishment for any combination, arrangement, or conspiracy among any people or class of people to exact unreasonable prices. Suppose the farmers or the dairymen should get together and agree on a price that they will ask for milk. Do you think they would be amenable to that law, and do you think they ought to be prosecuted ? Mr. GiLLEN. I think they ought to be prosecuted if they get to- gether to keep up prices. Of course, I am not familiar with that law. Mr. McLaughlin of Michigan. The law is substantially as I have stated it. It is made unlawful to conspire, combine, or arrange to exact unreasonable prices. Do you think it would be proper or no*^ to invoke that law against dairymen? COLD-STOBAGE I-BGISLATION. . 351 Mr. GiLLEN. I do not know that the dairymen have combined to r.a,ise prices. I think certain milk dealers have combined. I think anybody Mr. McLaughlin of Michigan (interposing). If they should do that, do you think it would be proper to proceed against ithem ? Mr. GiLLEN. I think not only is it proper, but I think it is some- body's duty to do so. Mr. McLaughlin of Michigan. It has been represented to us that that provision ought not to apply to the producers themselves of foodstuffs, because it is too expensive, too much of a financial bur- den laid upon them, to defend suits against them. "What would be j'our judgment as to that? Mr. GiLLEN. I would prosecute anybody, if I had the power, that . would combine to raise unreasonably the prices of the necessities of life. Mr. McLaughlin of Michigan. The question of whether or not it is unreasonable can be determined only by a trial in court, Mr. GiLLEN. Yes. Mr. McLaughlin of Michigan. And lawsuits are very expensive, and the prosecution would impose a very large financial burden on the dairymen. Do you think they ought to be exempted and per- mitted to fix the price ? Mr. GiLLEN. No; I do not think anybody ought to be exempted. The same law ought to be applied to everybody. I do not think there should be any favoritism shown in applying any law. I will tell YOU about milk. I opened in the city of Newark last February several municipal milk depots for the selling of milk after the big dealers had got control of the milk supply. The dairymen had formed a dairymen's league to protect themselves. Milk was selling at 18 cents a quart and upward delivered. In the stores it was sold in bottles at from 16 to 18 cents per quart and more, accord- ing to certain grades, etc. We opened these milk depots and went right to the farmers and made arrangements with them for the purchase of milk. We leased a creamery in the country, and bought oiir milk right there kt the rate of 7 and a fraction cents per quart. Then we pasteurized it and shipped it into the city and sold it at 11 cents a quart. It cost us about 3 and a fraction cents to market it. We are selling it now at the rate of 12 cents a quart in the city of Newark. Immediately the big dealers who had control of the milk supply reduced the price of their milk in all the stores near our milk depots from 16 and 18 cents a quart down to 12 cents a quart. Then they went around and told various stories about our milk and tried to put us out of business, but we kept on selling milk, and to-day we are operating our stores, and this fall we propose to operate prob- ably three or four times the number we are operating at the present time. That is the story of milk in Newark. The farmer was getting T and a fraction cents for it, and the dealers who got control of it — £ind it is pretty well controlled in our section — were getting 18 cents a quart and more. Mr. Anderson. Is that 12 cents a quart delivered? Mr. GiLLEN. No ; " cash and carry." ■ Mr. Jones. How did these dealers happen to get control of this proposition — by contract with the dairymen? 352 COLD-STOEAGE LEGISLATION. Mr. GiLLEN. Yes. Mr. Jones. Then the dairymen joined issue with the milkmen in regulating that supply and giving them control, did they not ? Mr. GiLLEN. They did; yes; but they did not fix the price at which the milk was to be sold. Mr. Jones. But they made it possible for the milk dealers to fix the price by contracting their supply to them? Mr. GiLLEN. Yes. The trouble is that the big milli combinations cleaned up the small dealers and put them out of business, and they got control of the situation and they keep the price up pretty well. As a result our health department records, in the city of Newark show that many of the poor children of the city are suffering from weakness or die as a result of malnutrition, due to the scarcity of milk. It is our desire to get as large a supply as possible of the milk for the poor children for as small a price as we can. Mr. Jones. I have no doubt that the margin between the price at which these dealers purchased the milk from the producers and the price at which they retailed it probably was unreasonable. Do you know whether it costs the dealers more to have that milk delivered to them than it does the municipality ? Mr. GiLLEN. No; they were buying it from the dairymen at ex- actly the same price. As a matter of fact, it cost them less, because they were handling it in larger quantities than we did. We only have a small plant, and we could pasteurize our milk, and prepare it for the market at a much lower price per quart if the quantity were larger. Mr. Jones. Have you any State law to regulate the price of food- Stuffs? Mr. GiLLEN. None that I know of. Mr. Jones. You have no law by which you could go after these dealers for profiteering? Mr. GiLLEN.' I presume there must be some laws in the State that we could probably get after them with. Mr. Jones. Was any effort made to raise that issue under your State law? Mr. GiLLEN. We have not made an effort. I, myself, have not made any effort, bu± my idea is — ^I think it is ridiculous to keep fighting a lot of these people- you can not seem to put out of business. jTou .put 1 in jail and there are 3,000 out of jail ready to commence again. The only thing to do is to go into business in competition with them. The people of the United States have got to go into business for them- selves, to supply themselves until such time as you put these combina- tions out of business. In Massachusetts three or four weeks ago they prosecuted the owners of the big fisheries and put them in jail. But we are paying the same price for fish at Newark as we did the day before they put Ihem in jail. We are paying from 30 to 40 cents a pound for fish in Newark. Mr. McLaughlin of Michigan. When your representatives went into the country to arrange with the dairymen to supply your munic- ipal plant with milk and dairy products, you did not find that the dairymen had made such arrangements with the regular milk dealers as would preclude the dairymen from dealing with you ? Mr. GiLLEN. No. They have a dairymen's league. COLD-STORAGE IxEGISLATION, 353 Mr. McLaughlin of Michigan. Were they free to deal with you as they wished ? Mr. GiiiLEN. They were free, except where they had existing con- tracts. Mr. McLaughlin of Michigan. Did you find some of those con- tracts? Mr. GiLLEN. Yes. A certain dealer had a contract for a year for supplying the Borden Milk Co. with the total output of "his dairv. Mr. McLaughlin of Michigan. Did you find that any large "num- ber, or any large proportion, of the dairymen had bound themselves to give all their supply to these people with whom they had con- tracted ? Mr. GiLLEN. Yes; in fact, we had great difficulty in finding any supply that was not contracted for. But we found it. There were some dairymen here and there who were not tied up, and we were able to do business with them. Mr. McLaughlin of Michigan. You think Congress should enact some legislation. You have shown a great deal of information on the subject, and your opinion would be very helpful to us. But, after all — and I say this in no offensive spirit — it seems to me you are not altogether familiar with the legislation now on the statute books. Mr. GiLLEN. No ; I do not believe I am. I do not claim to be. Mr. McLaughlin of Michigan. The food-control act is pretty broad. It has a section providing for licensing, as I have told you. It forbids hoarding and combination of any individuals. It has a section which enables the President to regulate, or to close altogether, any board of trade, on which there are operations in the manipulation of prices of foodstuffs, and a number of other sections designed to reach the very objectionable matters you have spoken of. It may be that some situa- tions have been omitted. It would be very helpful to us if you would look over that law again, perhaps more carefully, and advise us wherein it is short. Mr. GiLLEN. We have our legal department in Newark now making such investigations, and I think they will be ready to report in the very near future, and I will be glad to communicate with you what- ever we find. Mr. McLaughlin of Michigan. You realize, too, of course, that only under the war power and during the war can the Government have anything to do with local propositions. It must proceed alto- gether under the taxing power of the Constitution or under the inter- state-commerce clause of the Constitution; that, aside from the war gower, these local propositions are altogether outside of the United tates Government ; what are strictly local are altogether outside, and it would be improper for the Government even to try to influence them. Mr. GiLLEN. You mean in the purchase of food for municipalities? Mr. McLaughlin of Michigan. Except during war times. Mr. Gillen. Except during war time? Mr. McLaughlin of Michigan. Yes. Mr. Gillen. After the peace treaty is signed, that would not be practicable ? Mr. McLaughlin of Michigan. There is a clause in the food- control act which provides that it shall cease when the President issues his proclamation. 354 COLD-STORAGE LEGISLATION^ Mr. GitLEN. All those powers cease? Mr. McLaughlin of Michigan. All those powers cease. Mr. GiLLEN. Then, do you not think there is a great need of other legislation to take the place of that? Mr. McLaughlin of Michigan. But we can proceed only under the taxing power or under the interstate-commerce clause of the Constitution. Does your information in regard to this matter enable you to say what proportion of the goods in cold storage could be reached under the interstate-commerce clause? Mr. GiLLEN. No, sir. Mr. McLaughlin of Michigan. Is there some gentleman with you who can give us reliable information on that point ? Mr. GiLLEN. I do not know ; I do not believe there is. That would be for lis a technical, legal question. Mr. McLaughlin of Michigan. Yes; some legal questions are in- volved, but I thought perhaps you had some idea of the amount of foodstuffs in cold storage in your 'State that could be reached under the interstate-commerce clause of the Constitution. Mr. GiLLEN. I do not believe there is anybody here who could answer that question, in our delegation. Mr. Anderson. I understood your suggestion was that the Fed- eral Government should go into the market and buy food and sell it. Entirely aside from the question of whether the Federal Government has any power to do that or not, have you had much experience with the Federal Government's operations in the purchase of supplies? Mr. GiLLEN. No, sir. Mr. Anderson. Do you think the Government could buy food and sell it as an ordinary commercial agency? , Mr. GiLLEN. I believe so. I believe the Government could buy it from the producer and get it to the consumer without sending it through half a dozen hands. Mr. Anderson. What is that opinion based on ? Mr. GiLLEN. On our own little experience, if you please, in the city of Newark. Mr. Anderson. The food which the Government is now selling was boup-ht for the Army, and the expense of buying it and storing it and disposing of it to the municipalities was all borne as a matter of war expense, was it not? Mr. GiLLEN. Yes. Mr. Anderson. And is not included in the cost of the food? Mr. GiLLEN. No. Mr. Anderson. If the Government undertakes to purchase and sell food, as a Government, in peace times, of course, you would not expect the cost of handling would be borne out of general taxation, Would you? Mr. GiLLEN. No. Mr. Anderson. You would expect that to come out of the selling price of the article? .Mr. GiLLEN. Yes. Mr. Anderson. On that basis, I am somewhat curious to know what your thought is aS to whether the Government could sell H, under those circumstances, cheaper than the regular commercial in- stitutions, and on what that is based. OOLD-STOEAGE LEGISLATION. 355 Mr. GiLLEN. In the city of Newark now the producers are coming to us and offering to sell us foodstuffs at lower prices than the whole- sale prices in the city of Newark. Mr. Anderson. Is it your idea that the Government would handle vegetables and other perishable products direct from the producers ? Mr. Gii/LEN. Yes; ]ust so long as the high prices continue. Mr. Anderson. Do you not think that would take a large Govern- ment machine? Mr. GiLiiEN. I think so. Mr. Anderson. And a pretty expensive machine? Mr. GiLLEN. I do not think that would be necessary. Mr. Anderson. Has it not been the experience all during the war and prior to the war that the Government machinery set up for purposes such as you suggest is an expensive machinery? Mr. GiLLEN. Well, war conditions are different from peace-time conditions, and always will be. Mr. Anderson. Has it not been your general experience with Government activities that the cost of operation through the Govern- ment is larger than the cost of operation through private concerns ? Mr. GiLLEN. I do not know, Mr. Anderson. Has it not been true in the case of the railroads? Mr. GiLLEN. Well, the railroads were taken over by the Govern- ment during the war, and the idea was not to operate them with any idea of economy at all. It was to get the goods and the men to cer- tain points, no matter what the cost was. The idea of economy was thrown to the winds. Nobody was thinking of economy when we were facing a powerful enemy in Europe. We were out to win, and the cost was never thought of. Trains were sent from certain points loaded with men or food or munitions to the seacoast, to be shipped to Europe, and were brought back empty, whereas, under normal operation, those conditions would not obtain. The cars that would be sent to one point, under normal railroad operating conditionSj loaded with goods, would be shipped back with some other kind of goods in them. The matter of economy was thrown to the winds and never thought of during the war, but in normal times the Gov- ernment could itself do a great many various things in an economical manner. I think our postal system is a splendid example of what the Government can do, even though there may be a deficit at times. Mr. Anderson. Do you mean to suggest that the distribution of food should be made through the Post Office Department? Mr. GiLLEN. I do not know exactly what agency the Federal Gov- ernment should employ, but I would suggest that if the Government should purchase these foods, they distribute them just as the War Department is distributing them now, through the municipalities; send them to us and let us set up our agencies, and we can distribute them through the retail stores or other markets we may create in the municipalities. My own preference, of course, is for the retail stores ; I think that is the only practical way in which the thing can be worked out. Mr. Anderson. But you feel confident the Government can set up an agency to handle this food and handle it more economically; and at less expense to the final consumer than if it is handled through the present commercial system ? 356 COLD-STOEAGE LEGISLATION. Mr. GiLLEN. Yes; because the commercial system has gotten into the hands of the profiteers. There are men handling our commodi- ties to-day who do not know anything about these commodities. They are simply in the business of the handling of money for the control of the greatest market in the world, which is the credit market. I suppose you gentlemen know, as most people do, that most of our business transactions are represented by 95 per cent of credit and 5 per cent of real money. The fellow who controls the credit market has you and me in his grip. If you have higher credit than I have and we are both in the same line of business, you will put me out of business mighty quickly, and most of the commodities, and particularly the necessities of life, have gotten into the hands of a few large combinations, and, as far as I have been able to see, they have financial control; and they have es- tablished a system, what we are pleased to call our commercial sys- tem of doing business; and our wholesaler, our jobber, and our re- tailer is now absolutely a part of a vicious profiteering system; and tribute is paid to the financiers that finance the whole business and control the credit market through which 95 per cent of the business is done. They are taking down big profits, and we are paying for it; every one of us is paying for it and putting our hands in our pockets to pay for it. I think if the Government were to go into the business of dealing in ^fopd, it could deal a d^ath'blow to these profiteering gentlemen in Wall Street, or some one whom we do not know at all in the transaction, and it could get to the people through the munici- palities, and though the retil stores in the municipalities, at a lower cost than we could get it through this vicious system that has been created. Mr. Anderson. I do not know whether this is a fair question or not, but I imagine you have not made an estimate of the volume of business which the Government would have to do to accomplish the results you have in mind. Mr. GiLiiEN. The amount of the filing business ? Mr. Anderson. I say, you have not made an estimate of the volume of business the Government would have to do in order to be a real factor in the lowering of prices ? Mr. Gnj/EN. I do not think it would be necessary for the Govern- ment to do all the business they could. If the Government could sup'ply?'good,'hea)lthycompetitionr think it could regulate the prices and control the markets. I do not know what the cost of it would be to the Government, but I imagine it would not be very heavy, because the Government would be in the position of retailer; the Government would be coming right in between the producer and the manipulators. Mr. Anderson. I want to get your idea clearly, if I can. When you suggest buying from the producer-^for instance, in the case of meats and eggs, or more particularly in the case of meats — ^what do you mean ? You do not mean buying the cattle, do you ? Mr. GiLLEN. I do. Mr. Anderson. Then, if the Government bought the cattle direct, it would have to set up machinery for slaughtering the cattle, and all that sort of thing? Mr. GiLLEN. Yes ; if necessary. COLD-STOBAGE LEGISLATION. 357 Mr. Anderson. That is contemplated in your idea ? Mr. GiLLEN. You have, for instance, now, in North Dakota, Min- nesota, and Wisconsin, packing houses that do not belong to the big five. Mr. Anderson. Not very many. Mr. GiLLEN. I think in one State you have about 15, in the State of Wisconsin. In the State of North Dakota, when I was out there three or four weeks ago, they had started a great big packing house at Fargo. Mr. Anderson. There is an independent one there. Mr. GiLLEN. Financed by the farmers; and the State of North Dakota is going into the business of building packing' houses; and I had an offer from the State of North Dakota within the past two weeks to ship flour as soon as they got their mill going in the State of North Dakota, their elevators. They offered to ship flour direct to the city of Newark, which we will try to sell through our retail stores, getting it right from the producer. Mr. Anderson. Your idea, then, as I understand you, is for the Government to buy direct from the producer and set up the necessary manufacturing machinery ? Mr. GiLLEN. I do not know that it will be necessary to set up any great amount of manufacturing machinery. But there are lots of things that we could buy and dispose of. For instance, the canners have come to us, and they are canning a lot of soups and vegetables, and they are anxious to sell direct to the municipality. Mr. Anderson. You think, then, that the Government might very properly deal with the independent manufacturing establishment as distinguished from those great combinations you are referring to ? Mr. GiLLEN. Yes. The Government might buy wherever they could and then they could sell. Mr. Anderson. I think either you or the other gentleman who spoke this morning referred to the effect of these sales upon the public when they were discontinued, and that you are anticipating some trouble if there was a discontinuance of this plan of selling at low prices, as the Army food supply is now being disposed of. Is that because people are now being educated to the idea that the prices at which you are selling this food supply are the prices at which the stuff ought to be sold in the regular commercial channels ? Mr. Gillen: That statement,'! think,- was made by one ofi the other mayors, but I presume what he had" in mind was the general fear that this unrest and the troubles now in our congested districts be- cause of the high cost of food will spread, and that if this distribu- tion of Army foods is merely a temporary remedy it, when exhausted, will result in merely bringing back the old conditions again, with high prices and soaring prices, and that this unrest may occur in these big cities again and the spirit of Bolshevism may spread, and we may have food riots and trouble of all kinds — strikes and all that sort of thing. Mr. Anderson. You do not think, then, that the people are under any misapprehension as to the reason why it has been possible for you and the mayors of the other New Jersey cities to sell at the prices at which you have been selling ? Mr. GiLLEN. I do not think so. I think they understand. 358 COLD-STORAGE LEGISLATION. Mr. Anderson. You think they understand that those prices are below the wholesale prices simply because the Government, in order to get rid of the stiiff, sold it at a price below what it cost the Gov- ernment, and that it does not include the selling cost ? Mr. GiLLEN. I believe they understand generally that it is an effort on the part of the Government to offer some competition in the food market and reduce the price of foods. Mr. Hutchinson. In the line of Mr. Anderson's question, getting back to the milk question, I understand you to say that it cost you but three cents and a fraction to handle milk, is that right ? Mr. GiLKEN. Yes, I think so. Mr. Hutchinson. In handling this milk, how do you buy it ; in large cans? Mr. GiLiEN. Yes ; the farmer brings the milk in to the creamery in our cans, which we supply. Mr. Hutchinson. In large cans? Mr. GiLLEN. In large cans, and then we bring it to the city and sell it in the stores here. Mr. Hutchinson. Do you bottle it? Mr. GiLLEN. No, we do not bottle it, but keep it in closed con- tainers, and we insist that the purchaser bring with him a closed container for the milk, in order to comply with the requirements. Mr. Hutchinson. You do not pay for any bottles, or anything like that? Mr. Gtllen. No. Mr. Hutchinson. Do you think that fair competition with the milkman who bottles his milk and brings it around to his customers? Is that fair competition when you sell in that way ? Mr. GiLLEN. No ; it is not fair, but the big dealers that have cor- nered the milk market have got the price up too high; they have sent the price away up too high, and as the result of that the poor people are not getting milk. Now, that has been unfair business, and our municipality is going to get back of that if it possibly can. Mr. Hutchinson. But you are not giving the same service that they do? Mr. GiLLEN. No ; we do not claim to. We do not supply any great quantity of milk, but our aim was to supply a certain quantity, even a small quantity, in order that there would be competition. We want to drive home that idea of competition, and in that way force the other fellow to come down and" reduce his profits. Mr. Hutchinson. I think you gave the impression that you were giving the same service that these people were ? Mr. GiLLEN. No. Mr. Hutchinson. And you do not bottle it? Mr. GiLLEN. We do not bottle it. Mr. Hutchinson. That is quite an item of cost. Mr. GiLLEN. It would cost a cent and a fraction more to bottle it. Mr. Voigt. What are you selling milk for in that way ? Mr. GiLLEN. We have been selling it for 11 cents a quart. Mr. Jacowat. Where do you buy your milk? Mr. GiLLEN. Right from the farmer. Mr. Jacowat. Do you not buy some milk out in New York? Mr. GiLLEN. No; we buy it right from the farmer. UOIiU-STOBAGE LKGISLATION. 359 Mr. VoiGT. If you had to add the expense of distribution/ if you had to pay the salaries of the drivers of wagons and automobiles, bottles, etc., it would cost you 3 or 4 cents a quart more, would it not? Mr. GiLLEN. Yes; it possibly would cost i cents. We estimated they could sell it for about 14 cents a quart and make a good profit. Mr. VoiGT. What was the highest priced milk in your city ? Mr. GiLLEN. They charged up to 25 cents a quart for it. Mr. VoiGT. What is the prevailing price now? Mr. GiLLEN. The prevailing price is 18 cents and upward accord- ing to grade. Eighteen cents, I believe, is the lowest price. Mr. A^oiGT. The milk you supply is bottled and sold for 18 cents? Mr. GiLLEN. No ; that is the milk that is supplied by the dealers, delivered. Mr. VoiGT. Wliat I want to get at is this. The milk that you have bought from the farmers is again resold to the dealers, and these dealers bottle it and sell it to the individual? Mr. GiLLEN. No ; we sell it direct to the consumer. We do not sell it to the dealers at all. The city buys it and sells it to the consumer from the store. Mr. VoiGT. You sell it to the householder? Mr. GiLLEN. To the householder. Mr. VoiGT. People come there with containers and buy the milk from you at 11 or 12 cents a quart ? Mr. GiLLEN. Yes. Mr. Hutchinson. Does the municipality pay for any of that cost? Mr. GiLLEN. No; under the law it must be operated on a self- maintaining basis. We received originally a $5,000 appropriation from the city to carry on this business, and we still have our appro- priation. Mr. VoiGT. Your expense of handling you figure at 3 cents per quart? Mr. GiLLEN. Yes. That could be reduced, however, materially. For instance, with a larger quantity of milk and the proper arrange- ments and complete machinery for handling that could be reduced probably 50 per cent. Mr. VoiGT. How much milk do you handle in a day in that way? Mr. GiLLEN. We handle about 2,000 quarts. Mr. YoiGT. You have one depot in the city where it may be pur- chased ? Mr. GiLLEN. Three ; this fall we will probably have maybe a dozen or 15. Mr. VoiGT. Have you limited the supply, or has there been an ex- cessive demand for your milk on the part of the public? Mr. GniLEN. Yes. Mr. VoiGT. What I want to get at is, could you sell more in the same way? Mr. GiLLEN. Oh, yes ; a great deal more. Mr. VoiGT. What do you think of the idea of your city extend- ing that operation to other commodities, like sugar and vegetables and potatoes and fruits? Mr. GiLLEN. Well, I have explained here that my idea is to have the distribution of all of these foods, if it is going to be a permanent 380 COLD-STOKAGE LEGISLATION. thing, or anything like a permanent thing, done through the retail stores. Mr. VoiGT. Do you know that the big item in the distribution of food comes in on the retail end ? Mr. GiLLEN. On milk? Mr. VoiGT. No ; on all foodstuffs. I think you will find, if you will look over the figures, that the difference between the retail price of the food and the wholesale price is very considerable. If you can find some way to cut out the expense that is caused between the wholesaler and the ultimate consumer, you will go a long way toward cutting down the high cost of living. Mr. GiLLEN. I do not agree with that. I do not look at it in that way. I think that the trouble is where combinations form and a sys- tem is established and the products come under the influence of that system, and if it is a bad system it has a baneful influence on the marketing of that product. That is where I think the main trouble comes in, once the system is established or is set up. For instance, I can remember when the farmers used to come into our town with milk, and deliver it to us at a very low price, even when they were forced to bottle it, but immediately after the big milk companies were formed, and they went around through the State and lined up all these farniers, and got them to execute contracts with them, the price of milk went up, and it has been going up ever since. Mr. VoiGT. You can not expect a farmer to sell milk to-day for what he sold it five years ago, you realize that, do you not ? Mr. GiLi^N. No; we do not want him to. He used to sell it for about two and a fraction cents a quart. Now he is getting seven and a fraction cents. Mr. VoiGT. You claim that the farmer ought to sell his milk for less than he is getting now ? Mr. GiLLEN. I do not know. I would not say that. I think the farmer produces the goods, and he is entitled to get a reasonable profit on his products, but what we are complaining about is all these fellows that get in between the producer and the consumer in some way or other, and taking the gravy off the whole business. Mr. VoiGT. You said a while ago that you had been offered food- stuffs from the producer at a less price than charged by the whole- saler. Why would it not be a good idea for your city to create a de- partment and buy up some of these goods from the producer as you have been offered them? Mr. GiLLEN. That is what we are going to do. Mr. VoiGT. And having a market and reselling them in this market to the public, and in that way cutting out the wholesaler and the re- tailer. Mr. GiLLEN. We do not want to cut out the retailer, because you have got to sell these goods at convenient points where the consumer, the woman or mother, or whoever is running the house, the. house-, holder, can walk around the corner and get goods. We do not want the householder to have to get on the car and pay carfare to go down town to the market. The distribution is a serious problem. Mr. VoiGT. If you are going to retain the retail store in selling these commodities, then you simply advocate substituting the city for the wholesaler? Mr. GiLLEN. Exactly, COLD-STORAGE LEGISLATION. 361 Mr. VoiGT. I do not believe you can effect the high cost of livins in that way. ^ Mr. GiLLEN. Our experience so far has taught us that we can We are doing it now with milk, if you please. Mr. McLaughlin of Michigan. What effect has that had on the other dealers in milk? Mr. GiLLEN. The other dealers have reduced in all other stores and near our municipal milk depots they immediately reduced the price that was sold in the store from 16 and 18 cents per quart down to 12 cents per quart as soon as we put our milk on sale at 11 cents ner quart. *^ Mr. McLaughlin of Michigan. And under the plan you speak of of keeping the retailer, you would fix the price at which he would sell the goods after he received the goods from you, I presume Mr. GiLLEN. Exactly. Mr. Hutchinson. You spoke about a $5,000 appropriation. If you had the cost of your milk, why did you need a $5,000 appro- priation ? ^^ Mr. GiLLEN. We had to fix up our depots, and we had to go out and make leases, and all that sort of thing, and we needed .some money to start the business with. Mr. Hutchinson. And you add that to the cost of the milk, do you? I suppose you do? Mr. GiLLEN. Oh, yes; as we go along. Mr. Jones. Tell us what you understand by the Dairy League. Mr. GiLLEN. The Dairymen's League ? Mr. Jones. Yes. Mr. GiLLEN. The dairymen, as I understand it, were at the mercy of these big dealers when the finally cornered the milk product, and in order to protect themselves they formed a league. Mr. Jones. Then it is a combination of the dairymen for collective bargaining? Mr, GnxEN, Yes. Mr. Jones. They enter into contracts, do they, with the dealers? Mr. GiLLEN. Yes. Mr. Jones. For their supply for the year? Mr. GiLLEN. Yes. Mr. Jones. Have you seen any of those contracts ? Mr. GiLLEN. Yes, sir; we have them now. Mr. Jones. In which the league, binding its members, agreed to sell its entire supply to the dealer's association, if they have an association, is that right? Mr. GiLLEN. Yes. I have not seen their contracts, but we have seen the contracts that the city made. Mr. Jones. With whom? Mr. GiLLEN. With the dairymen, through the Dairymen's League. Mr. Jones. I understand yon to say that when the city went into the question of buying this milk you ran up against these contracts that the Dairymen's League had made with the dealers' association and it was difficult for you to obtain a supply? Mr. GiLLEN. Yes. Mr. Jones. Did you finally obtain a supply, or is it a limited sup- ply that you have? Mr. GiLLEN. It has been limited so far. 362 COLD-STOKAGE LEGISLATION. Mr. Jones. What' per cent do you know, approximately, of the total supply of the city of New York is covered by these contracts between the dairy league and the dealers' association? Mr. GiLUEN. Well, I have not the least idea, but I presume that it is 90 per cent of the total supply of milk in the city of Newark was supplied through the bi^ dealers. Mr. Jones. And was tied up under these contracts ? Mr. GiLLEN. And was tied up under these contracts ; yes. Mr. MiNAHAN. May I interrupt to say that the city of Orange is selling milk through the board of education, bottled milk. They had the same difficulty that the mayor had in getting his contracts at first, but later they were able to make contracts with the dealers, and the children bring their milk bottles to school, and put an initial de- posit of 5 cents on the bottle, and the dairymen come and sell the milk themselves at a price very much less than it is sold delivered at the house. Mr. Jones. Was the supply for the municipality finally got outside of the members of this league? Mr. Gitr^N. Of the league? Mr. Jones. Yes. Mr. GiLLEN. No. Mr. Jones. The members of the league. Mr. GiLLEN. It was still made through the dairymen's league, and they were all members of the league. Mr. Jones. You mean the league made a contract with you, not- withstanding a contract with the dealer's association for the same supply ? Mr. GnxEN. No ; it was a case of where the contracts of the dairy- men in certain sections had expired, and for some reason or other, through some difficulty over leases for creameries they had not re- newed them, and we grabbed the opportunity and got the creamery, and the fellow that gets the creamery controls the section. Mr. Jones. Now, carrving it to its last analysis^ if the municipality should obtain contracts irom all of the dairymen, assuming the dairy- men are all leagued together, for the supply of Newark and its vicinity, would not the municipality in that case be in a position to monopo- lize and regulate the cost of milk by the producer ? Mr. GniEN. Yes. Mr. Jones. You think it is better for the municipality to have a monopoly than a dairy association, for instance? Mr. GiiiiiEN. No ; I would not advise that the municipality monopo- lize anything. Mr. Jones. But it could control it, could it not? Mr. GitiiEN. It could, but I am against a monopoly by the munici- pality or an individual ; I am an antimonopolist. Mr. Jacowat. You said you had entered into a contract for a sup- ply of milk for a period of 12 months. Are you not mistaken in that? Mr. GiLLEN. I think most of them are ientered into for a period of 12 months, but there is a certain time of the year when it is well understood that these contracts expire, about a certain time. Mr. Jacoway. I think you are in error. I think the contract does not exceed the period of six months, with the privilege of renewal. Mr. GiLLEN. Yes ; you are correct about that. COLD-STOKAGE LEGISLATION. 363 Mr. VoiGT. Did you get milk for the same price that the dealers got it for? Mr. GiLLEN._ Exactly. The league practically fixes the price. It is sold at a uniform price, so much for milk of a certain grade, and so much for the better grade. Mr. VoiGT. I am very much interested in this line of testimony, and you will pardon me if I ask you a few more questions. We had some figures here last week prepared by the fish department of the food bureau, to show the retail profit that was made on the sale of fish throughout the United States in the retail markets. The figures that were shown to us here showed that the retail profit, the gross profit, figuring the cost, ran all the way from 50 to 90 per cent. Now, if that is true, do you not think it would be advantageous for your city to maintain, say four markets, and sell to the consumer in these markets ? Mr. GrLLEN. We have tried that. Along the Jersey Coast, yoU know we can catch a great deal of fish. The trouble is that most of the fisheries there are controlled by the New York fish market, and we in Jersey can not buy a pound of fish caught in our own waters unless we go to New York and buy from the New York fish market. The retailer in our city has got to go to the Fulton market in New York to buy fish that is caught in Jersey waters. Of course, you can go down there and buy fish out of a fellow's boat when he is bring- mg it in, but I mean as a general proposition, the supply of fish caught along the Jersey coast is controlled by the New York fish market. We induced some fish dealers in Newark to open up some stores about a year ago and sell the cheaper varieties of fish. The stories were that the retail fishermen and the wholesale fish dealers did not handle the cheaper varieties like herring that should sell at retail for about 6 cents a pound, but they preferred to handle the blue-fish, the white fish and the bass and the other kinds of fish that sell for from 35 to 40 cents a pound. They thought it was too much trouble to handle the cheaper varieties. The stories were that when they made large captures of herring, if the market was pretty well sup- plied they threw the catches back into the ocean. We always con- tended that herring was just as nutritious, and contained just as good food values as the high-priced fish, so we opened these markets to sell those cheaper varieties which our retail fish dealers did not usually handle, and they operated them beautifully for about two or three weeks, and then the fish dealers along the coast cut off our sup- plies of fish. They told us they were not catching any more, and gave one excuse or another, and we could not get any further sup- ply. We then tried to have the State i^ass a law to establish State fisheries so as to catch these fish for distribution in the State. It would be very easy to catch along the Jersey shore enough fish to feed ten cities, and give them fish every day in the week. \ Mr. VoiGT, That is a true fish story you are telling? Mr. GnxEN. That is a real fish story. But let me say that our understanding is that the New York fish market that controls this fish that is caught in our waters is, in turn, controlled by the meat combination. Mr. Young. You mean by the packers? 137690— 19 24 364 COLD-STOEAGE LEGISLATION. Mr. GiLLEN. By the packers. We have got to get more power. If we want to market fish we will have to get a little more power to go ahead with it. Mr. VoiGT. Do you mean to say that when you have these markets that you could i^ot go to New York and buy fish there ? Mr. GiLLEN. We could not buy fish over there. We could buy the higher priced varieties, but we could not get our hands on the lower- priced fish. Suddehly the lower-priced fish left Jersey waters and went over to Germany or somewhere, and they could not catch any more. Mr. Jones. More power means an increased supply of bait, does it not ? Mr. GiLLEN. We could not get any more supply. Mr. Etjbet. I just want to ask one or two questions. A moment ago I understood you to say that you wanted to supply these food products through the retailer. Now, at present you are not supplying any milk through the retailers, are you? Mr. GiLLEN. No. Mr. Eltset. You are supplying it through the municipally owned distributing agencies? Mr. GiLLEN. Yes. We are considering the question of supplying it through the retailer, however. Mr. EtTBEY. If the farmer gets 7 cents a quart for his milk, and it is retailed there now at 18 cents, there is a difference of 11 cents. Where does that 11 cents go? How many hands does it go through in the distribution ? Mr. GiLLEN. It goes to the big milk dealers that control the Mr. EuBEY. How many cents does the retailer get? Mr. GiLLEN. The big wholesalers deliver most of that milk there, and then they do sell some of it to the stores. Mr. EuBET. Then there are just two people who handle it; the producer brings it in to the wholesaler first, and then he distributes it through his milk wagons ? Mr. GiLLEN. He delivers it to the consumer, but he does sell some of it through the retail stores. Mr. BuBEY. Is it not possible for you to exercise this with regard to everything ? You can buy products and sell them as a municipal- ity? Mr. GiLLEN. Yes, sir. Mr. EuBEY. You can take care of yourself, then, and your asso- ciates here and each municipality can take care of itself without any national law? Mr. GiLLEN. Yes; but that is only one State. Now, this high cost of living is a national problem, and what we may do in New Jersey can only be done in a small way compared with what the Federal Government can do if it wants to. Mr. EuBEY. Your idea is to have the General Government step in because it can extend its work throughout the entire Nation? Mr. GiLLEN. It is a national ill and there should be a national remedy. Mr. Young. In your opening statement this afternoon you referred to a remark that I made to some gentleman over here this morning. You gave a little more comprehensive effective to that statement than was intended. He was discussing the New Jersey law with reference COLD-STOEAGE LEGISLATION. 365 to the cold storage as being all that could be asked in the shape of a law, and my remark to him was that if you have got the law then why come to us. It covered just that particular phase of the case. Now, in your statement this morning the first remark you made was that you believed that the high prices were due to profiteering, and your discussion in the main to-day has been around the milk ques- tion and the fish question as pertains to your own city in New Jersey, and if I get your point of view, the profiteering is either done by the wholesale or the retail dealers. Mr. GiLLEN. Yes. Mr. Young. And the fish situation is controlled by some gentlemen over in the city of New York, or some organization over there which relates back to the packing industry. That kind of thing we want to know about. From some of your cities I see a special committee on exports as to what the Federal Government can do. You have not elaborated on that. Does that involve the idea of embargoing exports or limiting exports of foodstuffs ? Mr. GiLLEN. I would like to have Mr. Dorsey, of Perth Amboy, to tell about that. I think he could probably reply to it more intelli- gently than I can. Mr. Young. I will wait until he comes on the stand. That was subdivision A, as I put it down here. Subdivision B is this second suggestion, that the Government take over the storage plants and warehouses. That would be a pretty comprehensive proposition, to take over all the cold-storage warehouses of the Nation, would it not ? Mr. GiLLEN. Yes. Mr. Young. And will require a great lot of machinery ? Mr. GiLLEN. But I do not think anything is too big to meet the situation, because the situation is so serious that I think it will require big doings on the part of the Government to meet it. Mr. Young. Then, subdivision C, for the Government to take over the refrigerating cars ? Mr. GiLLEN. Yes. Mr. Young. Suppose there should be some comprehensive legisla- tion that should control the packers of this country who reached out and become a real monopoly of this country, not only in distributing these food items, because in buying these food items they hold both ends of the string ; they control the purchase price paid to the farmer, and in many instances the consumer has got to pay. Suppose com- prehensive legislation should be worked out to take care of these packers, and make them live up to their obligation to and deal in good conscience with the general public that they serve, would that meet the situation ? Mr. GiLLEN. I do not know if that would be all that would be required. Mr. Young. My friend Anderson is working on that over there. Mr. GiLLEN. But you need immediate remedies. That would prob- ably take some time. Mr. Young. Now, another thing with reference to the market, your condition is a little different from the condition in my section of the country with reference to the milk supply, and I am not familiar with the conditions existing in your city, except as you have ex- plained them. But take the producer's end of the situation. As a matter of fact, the egg supply of the Nation. Do you not know it 366 COLD-STOKAGE LEGISLATION. to be true that the farmers all o^er the country have not anything on earth to say as to the value that they get for those eggs when they bring them to the market ? Mr. GiLLEN. I would not be surprised to know that. Mr. Young. That. is absolutely true. The farmer brings in his eggs to the local merchant, and he does not say to the merchant, " Pay me 40 cents or 60 cents a dozen," but he asks the merchant, " What will you give me for the eggs ? " and the eggs must go on the market, and he takes whatever price is named to him. That is true as to the perishable products. That is true as to the beef cattle shipped in solid trains going to San Francisco and Chicago. They are there in the packers' yard, so the producer has nothing to say about the price he gets. That is true as to every product that comes from the farm. There is not a farmer on earth that ever has any- thing to do ^Yith naming any price he gets for anything he pro- duces on the farm, so your trouble must begin not at the farmer's end of the line. Mr. MiNAHAN. May I interrupt, Mr. Young, a moment? Mr. Young. Certainly. Mr. MiNAHAN. We started a farm market in Orange. I was mayor of Orange at the time. We started a farm market there, and ran it ■for two or three years, and the farmers there put their price just the same ap the storekeepers' price. The only advantage the people of the city got was that they got fresh vegetables right, off the farm. Mr. Young. Why should they not get just the same, if the fellow on the street was handling their stuff? Mr. MiNAHAN. They had no rent to pay, or anything else? Mr. Young. But they have no way of fixing their price, and that is true as to every agricultural product. Mr. GnxEN. That is true as to the great portion of the people living in big cities. Mr. Young. But the farmer has to ship to the city, and he has nothing on earth to say about the price that he gets for his products. Now, while your statements are interesting, at the same time I recur to the original proposition that I suggested here this morning. Why limit all these endeavors to one end of the cost of living? If we are going into this far-reaching method of legislation to cut down the price of foodstuffs, why not on wearing apparel and manufactured articles that the farmer uses, which all enter into the cost of living? Why not enter into that field, just the same as the other field as to the foodstuffs? Mr. GiLLEN. We would do so. Mr. Young. That is a tremendous proposition when you start into it. Mr. GiLLEN. But food, gentlemen, is the fundamental vital neces- sity. You can go along with an old suit of clothes for quite a while, but you can not go along and eat the same meal twice. Mr. Young. But the farmer's tools and his wagon and his harness and all that kind of stuff wear out, and he has got to replace them in order to produce this food. Mr. GiLLEN. Yes. Mr. Young. He has got to pay this higher price for the stuff produced on the farm. Mr. GiLLEN. Yes. CDLD-SXOKAGE, LEGISLATION. 367 Mr. Young. Statistics will show that the population is rapidly leaving the farms and going to these congested centers all the while, and the producers are getting fewer and the consumers are number- ing more and more every year. Have you ever thought what the cause was that is drawing the farmers away from the farms to these congested centers?, Mr. GiLLEN. That may be so away out in the thickly agricultural sections ; it is not so in our State, for instance. Some of the farmer boys come into the cities, but a great many of our city people are gomg out and living on little farms. Mr. Young. As a matter of fact, in the great productive center sections — and these gentlemen represent the Central West, and I represent a part of the great State of Texas, which has always been a great producing section — as a matter of fact, our farmers are hardly able to compete against these industrial centers for farm labor. Our farm labor has left us by multiplied thousands, with the result that it has kept down our production and we have no eight-hour day, but work from dayligl^t to dark. They have not been able to compete with the high wages. I think you will find that is true, that many farmers have not been able to compete with the high wages that the industrial centers are paying to laborers, and if the farmer was paid for everything that he produced on the farm it would not p3,y him back that wage scale. That is the trouble you are confronted with all over the nation, so it gets to be a very large question. Have you thought of it along that line ? Mr. GiLuiN. Of course, the labor situation is a serious one, but still the farmers seem to be struggling along raising crops just the same. Mr. McLaughlin of Nebraska. Would you think it advisable and practicable, provided the Federal Government could find a legiti- mate method or means of doing so, to enter into a program of gen- eral price fixing all the way along the line, including everybody that handles the product, giving him a certain basis of profit? Mr. GiLLEN. I do not know that that is the exact remedy, but I «ay that the high cost of living is so serious that, no matter what remedy is necessary to be applied, should be applied, because if it is not we will have a great deal of trouble; and I do not care how difficult the remedy is, how enormous it may be, what great machine the Government may be obliged to set up, or to what extent you gentlemen, as Congressmen, and all Members of Congress, have got to go in solving this problem, you have got to solve it, you have got to get somewhere. You are up against as serious a situation as we have ever faced. Mr. McLaughlin of Nebraska. Now, is the demand for increased wages at the present time, in your experience, based more particu- larly on the present price of commodities or on the advanced price that the merchants keep telling us we will have to pay after a while ? Mr. GiLLEN. It is based on both ; it is continually advancing, and when the consumer speaks to the dealer about it he says, " Well, it is going to be higher." That is all the consolation he gets. Then the producer goes to his employer and says he has got to have more money or he will quit, and the whole living conditions are upset in that way. 368 COLD-STOEAGB LEGISLATION. The Chairman. You said you purchased milk at 7 cents; where was it delivered ? Mr. GiLLEN. Delivered at the creamery in the country. The Chairman. Delivered to you ? Mr. GiLLEN. No ; not in the city. The Chairman. How far from the city? Mr. GiLLEN. It is about 30 miles. The Chairman. What was the expense of transporting it to the city? Mr. GiLLEN. I can not just say offhand. The Chairman. You figured it at 3 cents and a fraction? Mr. GiLLEN. Yes; that was the total expense. The Chairman. Did that include the capital investment? Mr. GiLLEN. Yes. The Chairman. All overhead charges? Mr. GiLLEN. Depreciation. The Chairman. All expense ? Mr. GiLLEN. Yes; all overhead charge, operating depots, freight, and then carting the milk cans in the city from the trains to our stores, and all that sort of business, and paying the help at our stores. The Chairman. Is there any profiteering so far in that or do you consider the price charged by the farmer fair and reasonable ? Mr. GiLLEN. I think at the present time that price could not be reduced very much. The Chairman. Then, so far there is no profitering in that. What is the fair and reasonable price for which milk should be sold in your city? Mr. GiLLEN. I think it ought to be sold at 14 cents a quart. The Chairman. That would give a fair profit to the dealer? Mr. GiLLEN. Yes. The Chairman. How much is being charged and how much was previously charged? Mr. GiLLEN. They charged 18 cents and more per quart. The Chairman. Your proposition is not to drive out of business the merchants engaged in a legitimate business, but to take a hand wherever you find that they are exacting an unreasonable profit? Mr. GiLLEN. Yes. The Chairman. Not to destroy the merchant's business, but in other words to supply competition and destroy monopolies? Mr. GiLLEN. Yes; to supply competition. The Chairman. You spoke about a combination between two or- ganizations. Mr. GiLLEN. I do not know of any combination between them. The Chairman. I understood you to say that there was a combi- nation to force up the price of milk ? Mr. GiLLEN. No; I said the big dealers have cornered the milk market and have forced the price up. They, and they alone, are responsible for the increase. The Chairman. You said something about the farmers contract- ing or selling their total output ? Mr. GiLLEN. Yes. The Chairman. Is there objection to that? Mr. GiLLEN. For six months I think the Congressman has said, and my recollection is that it is a six-months' period. COLD-STOEAGE LEGISLATION. 369 The Chairman. Is there objection to the farmer selling his total output ? Mr. GiLLEN. I have never objected to giving the farmer — ^the real producer, the man that produces the goods — a decent, honest profit for the stuff that he produces. I would never object to giving him a proper and reasonable profit. The Chairman. Is there any complaint that he is receiving more than a reasonable profit ? Mr. GiLLEN. I am not complaining about the farmer; I am com- plaining of the highway robber that is coming in between the farmer and me. Mr. Anderson. When was it you had this fish experience ? Mr. GiLLEN. About two years ago. Mr. Anderson. In 1917? Mr. Gillen. Yes ; I think it was in the early part of 1918. Mr. Anderson. If I understood you correctly, you said you were unable to buy herring and the more common kinds of fish? Mr. Gillen. Yes; after a while. We were able to buy it first when these stores opened, but then the supply was cut off after a while. Mr. Anderson. What was the reason why you were not able to buy 1 Mr. Gillen. There were various excuses given by the fisheries, and gradually the supply was reduced, and then reduced to irre- ducible minimum, and then the stores had to close up and go out of business. Mr. Anderson. That is very curious, because the report of the Bureau of Markets of the Department of Agriculture shows that there was a very large increase in the supply of these common fish during 1918. Mr. GnjLEN. Yes. Mr. Anderson. I do not see on what theory there could be a re- fusal to sell, in the event of such a large surplus of these common kinds of fish? Mr. Gillen. We could not get them ; that is all I know. Mr. Anderson. They refused to sell to you altogether ? Mr. Gillen. Yes. Mr. Anderson. You referred to some organization in New York which you said had a practical monopoly of the fish market. What is that organization ? Mr. Gillen. Why, I do not know what the name of it is. It is the New York fish market, the Fulton market. Most of this fish goes to the Fulton market, and we refer to it in a general, big way as the New York fish market. Mr. Anderson. I understood you to say that the market was con- trolled by the packers. Mr. Gillen. Yes, sir ; that is the general feeling of the people up my way, that it is controlled by the packers. Mr. Anderson. You have not any evidence on which you base that statement? Mr. Gillen. No; I could not prove it, but I think it could be proven. Mr. Anderson. I am very much interested in that, if it is true. The Chairman. We are very much obliged to you for the informa- tion that you have given. 370 COLD-STORAGE LEGISLATION. Mr. GiLiiEN. I think Mayor Dorsey of Perth Amboy might say a word regarding exports. STATEMENT OF HON. FKANK DORSEY, MAYOR, PERTH AMBOY, N. J. Mr. DoESEr. Mr. Chairman and gentlemen, the idea of the Federal export commission came as the result of a conference that some of our aldermen at Perth Amboy and myself had, and it just occurred that perhaps the market could be regulated to some extent. It was iiot the idea to shut out exports because we feel it is our duty to help feed the European countries just as much as any other duty that we have, but we read daily of different articles being sold on the other side for less than they are sold hei-e; that is, articles that have been exported — ^for instance, shoes that Commissioner Gannon spoke of this morning. If that is so, it seems to me that we should make some provision to regulate those exports, and in regulating those exports we necessarily regulate the prices here. Whether that is within the law or not I could not say ; I am not a lawyer. I would be glad to be enlightened on that. , Mr. Young. We did that under the war power all during the war. Mr. Dorset. And it is not being done now ? Mr. Young. You will understand that all this machinery for the' Food Administration was discharged, practically all, after the hostili- ties ceased, and this is the condition we are in, that while we have got these drastic powers under the law, the tremendous organization all over the country for putting it into effect, the Food AdministratioBj in the main, was disbanded and the people went back to their homes. We have got a powerful law, but have not anybody to administer it. Mr. Dorset. Then it is our job to get back into harness and do what is. necessary, because the conditions in our locality are abso- lutely worse than they were during the war period. If I can get on the coal situation, which is something I am familiar with, because I am in the coal and ice business, we have had a raise in freight rates, and we believe we are going to have another raise. We can not see where there is any consistency in raising the freight rate on coal when we check it up with the rate on other commodities. They charge me to-day $1.90 a ton for hauling coal 140 or 150' miles, and a train will bring down 50 50-ton cars, netting them approximately $5,000. I can ship a lot of ice from Wilkes-Barre, which is farther than the coal region, and the train will consist of fifty 25 to 30-ton cars, with perishable goods loaded in refrigerator cars, for $1 a ton. Mr. Young. What does coal cost now? Mr. Dorset. $1.90. They tell you the reason why the coal rate is high is because they have to haul the coal car back empty. I can furnish you proof that the ice cars are also hauled back empty, so that can not be the reason. Mr. Tin CHER. Now, as I understand it, you gentlemen talked among yourself last night and are before the committee this morn- ing recommending jointly Government ownership of the cold stor- age plants. Is that right? Mr. GiLLEN. Well, control or ownership. COLD-STORAGE LEGISLATION, 37], Mr. Tin CHER. You do not base that recommendation for reducing the high cost of living upon the Government's experience in the management of the railroads, do you ? Mr. DoRSEY. I am not committing myself on the Government ownership of railroads. Mr. Tin CHER. Do you think it has had a good effect upon the service ? Mr. Dorset. I know absolutely, and I can prove it, that the rate clerks employed by the railroad are sitting down figuring out how they can route the stuff so that it will cost you the most, not so the railroad will profit the most, but how it will cost the consumer the most. A year or so ago I could ship a car of ice from Wilkes-Barre to Perth Amboy at $1 a ton, and have it thrown on to the Pennsyl- vania transfer and takeii off of that transfer. It is no more work for the train crew to throw that on the transfer than it is to put it on my siding. I can have it taken off of my siding and put into Swift & Co.'s beef house at Perth Amboy for $5 transfer charge, which is an average of 20 cents a ton on the car-load lot. They have taken that privilege away, and they make me ship around bv a junction point, and instead of getting it in there for $1.20 I aiii paying $l.fO, and yet the railroad company can not carry it as cheap, and do not make as much on it as they did when they took it from the transfer and put it in for 20 cents. Mr. TiNCHER. That is not very encouraging, then, for Govern- ment ownership ? Mr. DoRSEY. It is not very encouraging for those railroad clerks. Their work is not producing anything at all, because the cost is more to the railroad and more to the consumer, and they are not getting a profit out of it on the short haul. They could make the short haul and make more money. Mr. VoiGT. Is it your idea that all of this is being done in order to throw cold water on Governm«nt ownership ? Mr. Dorset. No, sir; my idea is that it simply needs correction; it is bad management and lack of efficiency. Mr. VoiGT. You do not think it is done with any specific intent? Mr. Dorset. No, sir. Mr. YotJNG. Is it riot a fact that the same people are operating the railroads now as before the Government took them over? Mr. Dorset. Yes ; but it was their business then to gouge you as much as they could, but under Government ownership we do not expect it. I can not see that we have had any great efficiency on it. To get back to the food situation, the item of coffe^ is something that appeals to me. Coffee all during the war was selling at 35 cents, and to-day you have got to pay 55 cents. If I understand it cor- rectly from the newspapers, wliich is the only medium we have of getting our information, the Germans have cornered the coffee mar- ket. If that is a fact, if they have cornered the coffee market and can make us pay 55 cents a pound for coffee, as against 35 cents dur- ing the war, it seems to me that there is a chance to do something. Mr. YoTJNG. What could be done ? Mr. Dorset. My idea is that if we had a Federal commission, and the Germans want some product, we would deal with them on the coffee proposition. 372 COLD-STOEAGE LEGISLATION. Mr. TiNCHER. Somebody suggested that one trouble is that we have too many Federal commissions now. Mr. Dorset. I do not say that. Mr. Tin CHER. Do you know of any good ever resulting from one of them? Mr. Dorset. From a Federal commission? Mr. Tin CHER. Yes; in any line? ^r. P-<3KSet. As to , the coal situation, there is no reason why we should have another freight rate piit on coal. Coal costs so much now that the poor people can not buy it, and the cost should be spread on other commodities. Mr. Hxn'CHiNsoN. May I ask you what your freight was on coal at Perth Amboy prior to the war ? Mr. Dorset. $1.45 on steam sizes and $1.55 on the prepared sizes. Mr. Hutchinson. Then you have only gone up from $1.45 to $1.90? Mr. Dorset. I have not any fault to find with the raise that has taken place during the last year, but I have always argued that the rate on coal was too high, compared with other commodities. Mr. Jones. Is it not a fact that the rates on all commodities are measured by what the commodity will stand ? Is not that the general principle in fixing rates? Mr. Dorset. It is what the consumer will stand, not what the com- modity will stand. Mr. Jones. I am not arguing whether it is right or wrong ; but is it not generally conceded that in fixing freight rates one of the ele- ments 'that enters into what the rate shall be is what the commodity will stand and the character of the commodity ? Mr. Dorset. That can not be true when you take coal and ice, that I am perfectly familiar with. Mr. Jones. That is simply arguing as to whether these two things have proper rates or not; but is Hot that the policy of rate-fixing bodies, to fix the rate according to what the commodity will stand? Whether they are right as to what the rate on coal should be, or on ice, is anotlier problem ; but is not that one of the elements that enters into fixing the rate? Mr. Dorset. I was trying to answer that in this way: You say " what it will stand." You mean, then, what cost you can get it to a certain market for, so it can be dealt in or traded in; is that the idea ? Mr. Jones. Yes. Mr. Dorset. If we take that for a basis, then we go right back to the old coal again, coal selling at, we will say, $7 a ton, delivered, on that $1.90 rate, and ice selling at $2 or $3 a ton, delivered; so ice really could stand a greater freight than coal, in proportion to its cost ; and I think that is true of a great many commodities. Mr. McLaughlin of Michigan. The first speaker told us that you were going to tell us something about this remedy for the high cost of living — ^this regulation of exports. Will you tell us what com- modities you would limit the export of, and how you would do it, and so on? Mr. Dorset. Well, I do not know as I am big enough to tell you that. I might tell you what commodities we had, on foodstuffs and f)n shoes. As far as clothing is concerned, I can not speak on cloth- COLD-STOBAGB LEGISLATION. 373 ing. Clothing is something we can get along without. "We can wear old clothing for a while to tide us over this period. Mr. McLaughlin of Michigan. What kind of foodstuffs? Mr. Dorset. Provisions, for one thing— ham and bacon that the Government is selling now. Mr. McLaughlin of Michigan. What effect do you think that would have on the market? Mr. Dorset. Well, the report is that ham and bacon can be bought for less money abroad than it can be bought for at home. Whether such a report is true or not I do not know. Mr. McLaughlin of Michigan. What effect would it have directly on the market for those products in this country ? Mr. Dorset. Well, if we were exporting more than was really necessary, it would give us a greater volume here, and if the people who were selling it were honest, it would cut the price. Mr. McLaughlin of Michigan. Would it induce a lower price to the original consumer, or would it induce some of those through whose hands it passed to exact a smaller toll ? Mr. Dorset. It would induce those whose hands it passed through, whose hards it passed to exact a smaller toll ? Mr. McLaughlin of Michigan. You think it would not lower the price to the farmer who produced it ? Mr. Dorset. No; I do not see why the farmer should lose on it. Mr. McLaughlin of Michigan. Well, he slxould not, but what do you think the effect would be ? Mr. Dorset. I do not think that it would have any effect, so far rs the farmer was concerned. I think the packer would have to take a less profit. Mr. McLaughlin of Michigan. It is true that the price of wheat to the farmer has been fixed, but that is true as to one commodity only. Do you think the shortening of the market and restricting the market would not influence the price of the products to the farmer ? Mr. Dorset. No, I do not; if it is intelligently done. Of course, we could not flood the market, but there can be no fear of flooding the market according to the statistics as to production. Mr. McLaughlin of Michigan. Well, according to the statistics of production, there are more foodstuffs to-day in this country than in former years. Mr. Dorset. Yes ; but there is no more than we need, if we carry on a fair export business, is there ? Mr. McLaughlin of Michigan. Well, I do not know wjiether you would limit exporting now, in view of that. Mr. Dorset. I have no idea of placing an embargo on exports. It is simply a matter of regulating it. Mr. McLaughlin of Michigan. Well, if we do not limit the export what would the regulation do ? Mr. Dorset. Did I say limit ? I meant to say that I had no idea of cutting out exports entirely. Mr. Jacowat. Are you familiar with what American goods are selling for abroad? Mr. Dorset. Only from the newspapers. I do not know very much about it. It is brought in to me occasionally by people. I do not know personally anything about it. 374 GOLD-STORAGE LBGISiiATION, Mr. jACQWAy. Right here, following his testimony, I want to insert in the record an aditorial from the Sacramento Union of Aug- ust 9, 1919, on a comparison of prices of American goods here in this country and what they are sold for in Germany when shipped from here. (The isditorial referred to is as follows:) HEAD AND EEFLECT. Below are printed the retail prices charged in Germany for a list of ordinary food commodities Imported into that country. These prices are for July 14, and the Sacramento comparisons are from yesterday's market records. It is quite unnecessary to state that the German food controller has permitted no noticeable increase in the past three weeks. Commodity. Germany. Sacrameoto. FJotjr ^ 6cents 6 to 7 cents in 50-pound sacks. H to 17 cents for highest grades. nice. Bacoji 40 cents 60 to 67 cents a pound. This is not comforting reading, either for the public or the profiteer, and if the former reads understandingly it ought to be made more than uncom- fortable for the latter. These figures mean just one thing ; the American people are being made the victims of the most unconscionable and vicious profiteering ever practiced in this country. It will be argued that the German figures are the result of gov- ernmental control of the distribution of food. This is true, but it proves up to the hilt the justification of such control. When we, in the food storehouse of the world, must pay 'on the average higher prices than a destitute country, importing practically all of its food, it is time that we resorted to some measure of control. We warn all of the links of the food industry that under such control a rad^ ical reduction must be expected. From the producer to the retailer the charges now being exacted are too high. Nothing must be done which will result in the stagnation or diminution of production, but the farmer will gain no permanent prosperity from a price level which is certain to cut down con- sumption .^nd increase wages. It is fairly certain, however, that the weight of the blame lies among the middle linfes of the chain of distribution. There are too many food gamblers and other parasites exacting unearned tribute when the food passes through the various stages on its road to the ultimate consumer. Shameful to all our boasting of commercial efficiency is the bald fact that in this country we use almost double the number of hands necessary in Europe to carry food products from the producer to the consumer. If this Government does its duty to the public, many gentlemen, whose heads have always been harder than their muscles, soon will be looking for a job which will enable them to perform some useful service to the community. Every time some enterprising manipulator takes a flyer in the food mar- ket the public must pay, and every useless member of the army of food hand- lers is charged to the ultimate consumer. This burden is becoming intolerable and the sooner the Government recognizes food as a public utility the sooner these evils will be corrected. Mr, Htttchinson. Do you retail coal? Mr. Dorset. Yes, sir. Mr. Hutchinson. You are getting about how much, $3 a ton more than you did? Mr. ' DoESEY. No, sir. — oh, $3 gross ? Mr. Hutchinson. Yes. OOLD-STORAGE LEGISLATION. 375 Mr. Dorset. Yes; we are getting about $3 gross, or $3.50. Mr. Hutchinson. Is that profiteering? Mr. Dorset. "What do you mean ? I am talking of gross, not net. We are getting the price that the Fuel Administration fixed for us. We have no fuel administrator, but we are following his price to-day. Mr. Hutchinson. But don't you think the Fuel Administration fixed the price so that you could make a profit? Mr. Dorset. He did not fix a good price at Perth Amboy. He fixed $2, and the coal cost delivered is $1.67^. Mr. Hutchinson. That is the coal delivered? Mr. Dorset. Yes, sir. Mr. Hutchinson. That is above what you were getting before, is it not? Mr. Dorset. On profit? Mr. Hutchinson. Yes. Mr. Dorset. No. Mr. Hutchinson. What are you retailing coal for? Mr. Dorset. $10.40. Mr. Hutchinson. What did you retail it before? Mr. Dorset. Before what? Mr. Hutchinson. Before the war. Mr. Dorset. I have sold coal for anywhere from $5 up. Mr. Hutchinson. Well, the cost has not doubled, has it? You say your freight is 45 .cents more ? Mr. Dorset. Our freight is $1.95 — 45 cents more — and the price of the coal is about $8.75 delivered. Mr. Jacowat. Did the Government fix that price ? Mr. Dorset. I could not say about that — no, that is about the company price. I may be a few cents out one way or the other on that. The Chairman. Some of the members of your delegation desire to return on the 4 o'clock train. If you will yield to Mayor Slayback, we will hear from him for a few moments. Mr. Dorset. I will be glad to do so. Thank you, Mr. Chairman. The Chairman. We are very grateful to you, Mr. Dorsey. STATEMENT OF HON. D. H. SLAYBACK, MAYOR OF VERONA, N. J. Mr. Slatback. Mr. Chairman and gentlemen of the committee: We are all anxious to get away on the 4 o'clock train. I come from a town somewhat different from the cities. My town was purely a farming town, but it has grown up into a respectable section, and the claim of the people that are complaining of the situation is that we have passed it along the line from one to another until we have got here. As some gentleman said this morning, we have passed the buck, and the buck has gotten up to Congress and we are look- ing for some relief, not with the idea, I take it, from any man, that we are going to put anybody else out of business. We want the merchants and we want everybody to thrive and get along and get what is coming to them. This question of profiteering is a permissible one. My father told me one time that you are justified in getting any_ price that the pro- ducer will pay you. That is what our American plan has been 376 COLD-SXOKAGE LEGISLATION. right straight down the line. I feel that there is not anybody that comes down here from the State of New Jersey that wants to put another man out of business. I believe that if we can conceive some plan whereby we can get temporary relief, this storm will blow over, and, when it has, conditions will get back to a normal basis, and we will go on and everybody will make money and the poor farmer will get what is due him. Mr. Jacoway. Don't you think that some fellows ought to be put out of business ? Mr. Slayback. There may be some men, but I want to say to you there that when you talk about the packers, some of these things have been going on from the day of Jeremiah the prophet. I remem- ber hearing a story that in the old times, away back in the Old Testa- ment days, there was a very far-seeing man that conceived the idea of going out and buying up the grape crop, and he went out and bought all the wine presses that there were, and put his own price on the wine, and grew fabulously rich, and that has been going on ever since. What we want is to find some relief that will let us out. We are all in a hurry to catch the 4 o'clock train, but if you gentle- • men ever want any of the mayors from New Jersey to come down here and talk or give you any further information, I want you to know that they will all be on the job. We thank you very much, and Mr. Gillen thanks you very much, for the courteous treatment we have had to-day. He had to go back to the hotel. Mr. Young. If you will come down in our production section, where we produce, perhaps we will produce a little more. Mr. Slayback. I have been down in your State, and I have been in every State in the Union. I went down to see Congressman Evans, who came from my country. We have all been profiteering a little too. Every time the Eailroad Administration was asked for an in- crease in wages they granted it, and we came on down the luie doing it. A friend. of mine came down to see me the other day and said that the head of one of the biggest manufacturing plants in New Jersey, with 1,400 employees, had just reported that their employees had made demand for 75 cents an hour and one-half of the profits of the concern. We are not going to have Bolshevism in this country, because there are too many people here who own land, but you must go back to the fountain head, as I see the situation. When Andrew Carnegie foresaw the opportunity, he placarded Europe for help to come over to this country, and they paid no atten- tion to our social condition. I have seen a little breaker boy up there with his hands freezing, picking slate out of coal. They paid no at- tention to the social conditions of this country. I had to wait 21 3'ears then to get a vote, and to-day we find a person voting inside of 2 years. We are reaping just what was sowed here a great many years ago, and we have got to clean it up. You who are nere repre- senting us in Congress will know how to do it. If you can find some method whereby we can get a little immediate relief, if you think it is advisable to restrict exports for just a short period of time, to take us over the condition that is complained of, I believe that is going to be effective, because everything being so high, that will be a step: in the right, direction. COLD-STORAGE LEGISLATION. 377 Mr. TiNCHEE. We do regulate wheat now. Do you think it would be a good idea to restrict the exportation of cotton ? Mr. StiAYBACK. I have often wondered why we did not regulate cotton. Let me say, generally, that there is not one thing that the Government has placed a restrictive price on for which a larger margin of profit in the past was not naturally received by the men that handle those commodities. I can quote one or two lines. Mr. Young. You are talking about an embargo on other things. Every southern port has been closed entirely since this war has been over, and cotton has been more completely embargoed than if there had been a thousand embargoes placed on it, and in 1914, when every- body else was getting rich, and when we raised 16,000,000 bales of cotton, Europe closed our market for cotton, and we could not get to Europe, and that cotton was sold at 5 cents a pound — away below the cost of production. Mr. Slatback. Mr. Congressman, I understand. I have a few friends in the South, and I understand that they have been making more money than they ever expected to make in the world before. They never expected to make the amount of money that they have made. I sympathize with them, and say, " Go to it, and get your money while the getting is good." I want to know who will not take a little profit when he gets a chance ; but I do want to say this, that we have an element that has come in here that is getting very unruly, the labor organization, and I think that we have got to find a little bit of remedy for them, and I think you gentlemen can find one. We are glad we came down here to see you, and if we are ever able to help you in any way, you may call on us, and we will be on the job. Gentlemen, I thank you. Mr. McLaughlin of Michigan. Do you think the food-control act ought to have anything added to it ? Mr. Slayback. I remember a law that was enacted in New Jersey while the President was governor of New Jersey, and our law has not been enforced. I think there are other laws that are not enforced, and I think you gentlemen will pass some some of these days that will not be enforced. The Chairman. We are very grateful to you, Mr. Slayback, and to all the members of your delegation. (The committee thereupon took a recess until 10 a. m., Tuesday, August 19, 1918.) COLD-STOEAGE LEGISLATION. commitl'ee on agriculture, House of Representatives, Washington, D. G., Monday, August 18, 1919. The Chairman. Mr. Ferris desires to appear before the com- inittee in reference to this matter. The committee will be pleased to hear you, Mr. Ferris. STATEMENT OF HON. SCOTT FEERIS, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF OKLAHOMA. Mr. Ferris. Mr. Chairman and gentlemen of the committee, I have just returned from a trip out West. I had started on a vacation which ended before it began. It is the information gathered there that I am desirous of presenting to your committee. I do not wish to be otherwise than helpful in the solution of this most difficult and intricate task. I am not unmindful of the dis- agreeable task which has been assigned to you. Dealing with it in any way whatever is not only fraught with difficulties but with danger. Mr. Chairman, that part of the country with which I am most intimately acquainted comprises Oklahoma, Texas, Missouri, and Kansas. As is known to the committee, this is a producing section. These States produce more than they consume. They help to feed the rest of the country. The farmers out there desire to make it perfectly clear to the Congress of the United States that if the Congress really desires to increase production, which will inevitably bring reduced prices, that they should not longer persist in regulating and beating down the price of farm jjroducts and at the same time allow other prod- ucts used in production of food products to go unregulated and untouched. To be more specific, they do not desire the prices of farm products beat down by any arbitrary and regulatory measure and at the same time allow the Harvester Trust, other trusts and profiteers to continue to raise the price of farm machinery, harness, wagons, and all classes of implements of husbandry that the farmer uses to bring about production. Against Congress's further proceeding along this line they seriously protest, and they want their protest heard before additional legislation of this sort is enacted. To wait until it is enacted would be like locking the stable after the horse is stolen — it would be too late. The farmers are not rebellious; they are not unreasonable; they are not selfish and are not less patriotic than the rest, but they desire 379 137690—19 25 330 COLD-STORAGE LEGISLATION. it made perfectly clear to the Congress that such are their views before this legislation is enacted. They want the Congress to under- stand and to know that they are being compelled to pay $5 per day and board to farm laborers in planting and harvesting food products; that they are being compelled to pay constantly increasing prices for seed, labor, and every implement used in pro- duction. In many cases these increases are more than 100 per cent above prewar prices. They therefore feel it their duty to cry aloud against further regulation of their product without simi- lar regular regulation of the several and sundry extortions that are constantly being practiced -upon them. They want Congress to cease the continual effort at regulation of their products until a comprehensive plan can be worked out to remedy the situation all down the line. I repeat, the farmers are net rebellious about it ; they are not less patriotic than the rest; they are not going to secede from the Union or become Bolshevists if Congress continues to regulate them and allow all others to go unregulated. It is their honest fear, and they want it distinctly understood, that if this course is pursued, that, due to the extortion to winch they are subjected, due to the scarcity and high price of labor, they will be compelled to allow many farms to remain idle, grow up in weeds, and production must at least be materially curtailed. It is not necessary to tell you or your committee that such a course will have a disastrous effect upon the high cost of living. Such a course if persisted in would play right into the hands of the food gamblers, profiteers, and others who are to-day receiving and exact- ing extortionate prices from the producers and consumers every- where. It is not necessary to tell your committee that any discour- agement of production minimizes production, and as production is minimized prices soar and the consumer suffers. Such a course does not help the present outrageous condition, it hinders those seeking to correct it. If production is minimized and curtailed to an extent that the food is not available, the conditions will even be beyond the scope of regulation and improvement. It is unnecessary to tell the committee how undesirable this would be; for Congress to pursue such a course, instead of populating the farms will depopulate them; instead of increasing production, will decrease it; and this course will of necessity strike the consumer first, and will not alone deal injustice to the producer but will be disastrous to the country at large. The only economical way to increase production is to make it profitable to those engaged in it. I do not think it can be brought .about in any other way. I know full well that the task of yourself and your committee is a difficult one. I know full well everyone must be self-sacrificing during these abnormal times of reconstruction incident to the closing of the war, but I have none the less felt it my patent duty to impress upon you in the most earnest fashion the very grave necessity of encouraging agriculture as distinguished from discouraging it. I have felt it my duty to say this much to you while the hearmgs are still in progress and before any bill on the subject is introduced or reported, to the end that your committee and the Congress, though (JOLD-STOKAGE LEGISLATION. 381 engaged in an honest effort to correct and improve a difficult and intricate situation, you might not make it even more complex and difficult of solution. I repeat, that the farmers of the Middle West, and I think they are the same everywhere, are not more selfish than the rest. They are willing to stand their full share of regulation and burdens, but they are very earnest in their hopes that Congress do not administer to them laws that beat down the prices of their products and allow all other commodities used in connection therewith to continue un- checked, unregulated, and without restraint. ]\Ir. McLaughlin of Michigan. Do you think the price of imple- ments, machinery, supplies, and so on that the farmers have to buy ought to be regulated just as much as their products? Do you think a law ought to be provided for that or not ? Mr. Ferris. I am not now ready to agree in jjeace times to any one-man regulation of everything from Washington. I feel there is a better way, and any law you pass on the subject of regulation should deal with all. And unless the laAv does provide for a regula- tion of all of it, or all along the line, they want no more of it. I want to appeal to you as earnestly as I can not to introduce an- other bill, not to bring another bill into the House that only regu- lates the farmer. As I view this entire situation, the sooner we can dispense with this far-reaching long-distance regulatory war meas- ure the better all around. Mr. McLaughlin of Michigan. You believe that if we do bring in such a law, it ought to be regulated ? Mr. Ferris. I do. I can see no justice in regulating one class -.ind letting all others go. It gets everything all out of joint. Mr. McLaughlin of Michigan. The food-control law provided for the regulation of all of those other things that the farmers have to buy, and net one single thing has ever been done for him. Mr. Ferris. If that is the case that would be the fault of its ad- ministration and ought to be corrected. I have not had anything to do with its administration, but I am telling you what the facts are now, as I see them. They are having conventions and meetings out there, and are worried about this matter. On my own farm, about half of it is lying idle this year because they can not buy the high- priced implements, they can not pay $5 a day and board in order to cultivate it. I went out to my farm and there were big ricks of alfalfa standing in the field, and they could not afford to pay $5 a day for help to bale and haul it ; they could not hire the help to haul it into town : and the crop is going to be lost, not because there is an overproduction, but because the things that the farmer uses in connection with it are so abnormally high that they can not take care of it. (xasoline balers and hay presses and everything else are all abnormal — all awry — all out of proportion Mr. Jones. Including wages? Mr. Ferris. I do not commit myself now, in peace times, to this regulation from Washington. In war times and emergency there was no time to debate. Everything seems abnormal. A regnlatiou of any part of it but magnifies the incongruities; the laborer has to demand high wages because everyone is demanding high prices of him, and so on. 382' OOLD-STOKAGE LEGISLATION. Mr. Jones. The whole thing resolves itself down to a question of labor, does it not? Mr. Feeeis. I think there is more than that. The whole fabric is running in abnormal fashion. Mr. Jokes. You can not reduce farming machinery very mate- rially unless the cost of labor is reduced ? Mr. Feeeis. I do not have figures on farm machinery. If the com- mittee will indulge me for just a moment, a Member of Congress told me that he went to a Washington shoe store on F Street to buy a pair of low-quartered shoes, and he found a pair of shoes that fitted him, and he asked the price of them, and they told him $18. The Congressman said, " I will go barefooted before I will pay that," and he went back to his ofiice and wrote to a merchant in his home district, and asked the merchant to send him that particular shoe, knowing that the merchant handled the Hanan shoe. The merchant replied that he did not have that exact last in stock, but he would have the wholesale house send it to him with the bill, and the identi- cal shoes came, and the price was $8.75 instead of $18. Now, this seems all wrong to me. A constant regulating of the farmer will not help this situation. Mr. Andeeson. I have had exactly the same experience. Mr. Feeeis. This committee will know better than I do, but I am merely trying to be frank. If it should develop that that condition is true about farm implements, and about wagons, harness, cultiva- tors, and plows, then it is a serious proposition. It deserves atten- tion, and no regulation of the farmer will help or cure that. Mr. Jones. If there is any definite, tangible testimony before this committee at all, so far as I am expressing my personal viewpoint from the testimony, it is that if there is any profiteering at all, it has been in the retail business. Mr. Feeeis. The committee would be the better judge of that than I. What I did was to make a hurried trip home, and I did meet a great many people, and a great many people from Kansas, Texas, Missouri, and Arkansas. Our State is largely composed of people from Texas, Kansas, Missouri, and Arkansas, and I met men out there from those States, and I talked with the farmers in my own State, and I visited many towns, and I felt that their views, as I understood them, ought to be placed before the committee, and I thank the committee very much for this opportunity to be heard. Mr. Hutchinson. You spoke of hay rotting in the field in your section. Mr. Feeeis. On my own farm. Mr. Hutchinson. In the East alfalfa hay is worth from $40 to $50 a ton. If it was worth $100, it would not help your situation any, would it? Mr. Feeeis. Well, alfalfa hay in our section in the winter gets high every ye^r, and if you could get help at a reasonable price, if you could go ahead and bale it at a reasonable price, if you could haul it at a reasonable price, that hay would not be rotting in the field now on my own farm. i Mr. Hutchinson. In reference to the price of $100, it would not help you, would it? Mr. Feeeis. Well, of course, if it was that high it might pay the price of these high-priced farm implements and all the high-priced COLD-STORAGE LEGISLATION. 383 labor necessary to get it into the barn or to market, but when you have to pay over $5 a day and board, and when you are compelled to pay the fabulous prices that have to be paid for farm implements and wagons to bring in the production, then you have got to ease up on the farmers a little and regulate all down the line, or you are going to drive the farmer out of business. He can't stand "it to be constantly regulated when all else runs wild. My father was a farmer, and I lived on a farm until I was grown, and the prices we got then for hogs and cattle and other products seem so low as compared to the prices the farmer is getting now that one would think the farmer would now be making an enormous profit. We used to sell wheat for 50 or 60 cents a bushel and hogs for 3 cents a pound, and the enormous prices the farmers are receiv- ing now look as if they ought to be compensatory. It would appear to those unacquainted with the subject as if the farmer might go on farming, notwithstanding these fabulous and extortionate prices to which he is constantly subjected. Those who know the facts say he can not do it and the tenants on my own farm are complaining bitterly on this same point. Mr. HErLiN. That is why a great many people are dissatisfied about the price of cotton, that they think the price of cotton has doubled. Mr. Ferris. Perhaps that is true. I always trust the gentleman from Alabama on cotton, as he has been such a close student of the subject. Mr. Heflin. Very few farmers are getting much above the cost of production. Mr. McLatjghlin of Michigan. Some of these gentlemen from New Jersey suggested that one remedy for this high cost of living was to put an embargo on the exportation of foodstuffs. They did not elaborate on that, nor tell us just how it could be done. What do you think of it ? Mr. Ferris. I hope nothing I have said has added to the com- plexity of the problem. I recognize full well that this committee, made up of 20 or more patriotic members, have the most intricate and delicate question that can be dealt with, and I did not come here expecting to make it more difficult but to try to help if I could. Personally I think that if you place an embargo on farm products it will mean the destruction of 6,500,000 farmers, and I do not think that they deserve that sort of treatment. That would be both dis- couraging and disheartening to the farmer, would depopulate the farms, would minimize production, which would be disastrous alike to both producer and consumer. I think you ought to be a little careful about what you do with the farmer alone. It is like operat- ing on him. He can not lie on the operating table forever and survive. Mr. TiNCHEK. Do you not think that to decrease production would be the most disastrous thing this Congress could do? Mr. Ferris. I do. To decrease production is to put the whole question out of reach of any solution. Mr. TiNCHER. I do not think that there has ever been any danger of any legislation emanating from this committee or from this Congress to further regulate. the farmer, but do you not think, in 384 COLD-STORAGE LEGISLATION. view of the newspaper publicity and the propaganda that is going on that there is .a liability of Congress attacking the farmer to reduce the high cost of living, that to reduce that propaganda would encourage production and be beneficial? Mr. Ferris. I think it would. The farmer, like all classes of business men, doesn't want uncertainty. Stable markets, fair prices, fair treatment, and fair profits is the solution. Mr. Tin CHER. I do not know why it is, but you come from a sec- tion of the country that I am somewhat familiar with. I am satis- fied from your report here that there is a misunderstanding in that section of the country about the attitude of this Congress. Mr. Ferris. They are having State conventions out there, and they have fears that you are going to proceed to reduce the price of everything they produce and let everybody else loose. I hope the committee is not going to do any such thing. Mr. TiNCHER. I suppose that is based entirely upon the proposition that the price of wheat has been forced down by the Grain Cor- poration fixing a minimum price. Mr. Ferris. During the war last year that was done, you know. Mr. Tin CHER. And it is being done this year. Mr. Ferris. There is considerable complaint about the method of marketing wheat; they are not getting the price for wheat that Congress intended they should get. I don't know, but I am told the grading is not conducted properly. Mr. TiNCHER. There is complaint of the way the idea is being carried out. Mr. Ferris. Yes; that is the trouble. There may be some ex- planation for it, but it is due. Mr. TiNCHER. The President said in his message to Congress the other day that it was one product that was cheaper here than in Europe, and he hoped to keep it so. That was not very encouraging at all to the producer, was it 1 Mr. Ferris. I was not fortunate enough to be here and hear the President the other day, and I do not know just what he said. I have seen extracts of his address in the papers. I was out home when the call came. The Chairman. Would you be in favor of exempting the farmer from the provisipns of the act? Mr. Ferris. I have not given recent consideration to that phase of it, but if what we want is increased production, and I assume every one wants that, I would encourage, not discourage. The farmer is willing to carry his part of ths load, but not willing to carry all. The Chairman. The food-control bill exempted the farmers from certain provisions of the act. Mr. Ferris. The bill you contemplate passing? The Chairman. No ; the bill we passed two years ago, on the 10th of August, 1917. Mr. Ferris. I have not given that proper consideration. I am glad if that was true. I hope it may be true now. The Chairman. That act exempted the farmer from certain pro- visions of the act. If we are to extend the penalty in section 4, would you not be in favor of providing for the same exemption? Mr. Ferris. I have not given sufficient attention recently to that, Mr. Chairman, to ans^^•er definitely, but if I am right in thinking COLD-STOKAGE LEGISLATION. 385 the correct remedy is to encourage agriculture and not discourage it I would exempt them ; yes. Mr. TiNCHEK. There was an illustration given before a joint meet- ing of the committees the other day about the proportion of reduc- tion that we could make on the farmer that I think was very good, and I think our farmers ought to understa.nd that we rather appre- cinted that illustration. Three gentlemen who were facing princi- pally the wheat cost and the cost of all farm products had a meal here in Washington, for which they paid about |ll.75. They under- took to figure out how much reduction they could fix by reducing farm products. First they figured the cost of the bread, then the meat, corn, tomatoes, butter, milk, sugar, coffee, and the plowing and milling cost to the producer. They found that the producer had received for that entire meal 82 cents, so the farmer under- stands he can create a large reduction on that $11.75, and if he knows that his profit is not going to be taken away from him I think it would encourage production, and we not going to do it. Mr. Ferkis. I think so, and I am very glad to hear that. Mr. YoTjNG. Do you think it would encourage the farmer much if we were to repeal this price on wheat at the present time? Mr. Ferris. Well, I may not be the best evidence on that, but my information is that the farmer does not- desire wheat or anything else regulated unless everything else in connection with it is regu- lated, while a good many Congressmen are perfectly sincere in thinking the wheat farmer has had the best of it. As a matter of fact, with abnormal prices, some errors in methods of grading and marketing, he has suffered from all this regulation. The Chairman. Thank you very much, Mr. Ferris. Committee on Agkicultxtrb, House of Representatives, Washington, D. C, Tuesday, August 19, 1919. The committee met at 10 o'clock a. m., Hon. Gilbert N. Haugen (chairman) presiding. The Chairman. We have with us this morning Dr. Pennington. We will be glad to hear from you, Dr. Pennington. STATEMENT OF M. E. PENNINGTON, IN CHARGE OF POULTRY AND EGG INVESTIGATIONS, UNITED STATES DEPARTMENT OF AGRI- CULTURE. Miss Pennington. Mr. Chairman, the assistance that I inay be to the committee, if it is possible for me to be of assistance, will, I think, be very largely in answering such questions as may be covered by the field of work of which I have charge and in which the committee may be interested. As I listened to the discussions the other day, it seemed to me that there were a number of points involving the evolution of our exact knowledge of the effect of low temperatures on food on which I might have an opportunity of being of some assistance. Perhaps in order to make that thought more clear, it may be advisable for me to outline very briefly the kind of work and the scope of the work 386 GOLD-STORAGE LEGISLATION. that the Food Research Labatory has been doing in connection with the preservation of perishables. The work was begun in the year 1905. The first work was simply the examination, chemically and bacteriologically, from the laboratory point of view alone, of poultry, eggs, and milk found in cold storage — the usual market cold-storage stocks. At that time there was very little known of the laws govern- ing the preservation of flesh by cold and there was comparatively little known of the chemical and bacteriological course which such products pursued when deterioration and decomposition took place. We worked along those lines for approximately two or three years and then we found that what was happening in cold storage was predicted almost entirely upon what happened before the goods went into cold storage. In other words, the usual market practices — what is termed "handling" of perishables including everything which may be done to the product from the time it leaves the farm and the packing house until it finally reaches the consumer. Those are the items which especially effected changes in the products in cold storage. Such having been determined, it became necessary, if we were to logically and accurately explain what was going on at varying low temperatures, to study accurately and along the same lines what happened to the produce before it got to storage. In the line of our work, then, on poultry and eggs especially, we went back to the country. We studied the egg from the time it was laid and the chicken from the time it was picked up to be killed, or even before that — from the time it went to the fleshing pen to be properly fleshed for eating purposes. And those are the lines along which such facts as we have obtained have been gathered. Those are the facts which it has seemed to us have been of value to the people of the country in making these foodstuffs better when they go into cold storage and thereby keeping them better after they get in storage. Beyond that, it means that there has been a rise in the quality of practically all of the quick-marketed produce in the country, since the storage plants by their requirements for long preservation have largely set the pace for the rest of the produce to follow. We found in 1905 to 1908 rather lamentable conditions in many of the storage warehouses. As the trade did not understand how poultry should go in, or eggs, how it should be prepared, of course almost anything went in. We found chickens which were obvi- ously unfit when they went into storage, and eggs also. We found methods of preparation which were obviously unfit for storage purposes. It has been our effort to eradicate these undesirable practices and to substitute methods which will make for the maxi- mum of quality as well as the legitimate economic keeping period. For instance, we found when we began to do our work that a large part of the poultry going into storage was chilled in water rather than chilled in dry cold air. We found that a large proportion of the pack was scalded rather than dry picked. We found that a very large percentage of the birds were improperly bled in the killing. And we found various factors of the same type, all of which made for deterioration in storage. About that time and due, I think, very largely to the activity of the Department of Agriculture and the publicity which was given COLD-STOKAGE LEGISLATION. 387 through the press, the warehousemen became active themselves in bettering conditions and their activity was reflected to the owners of the poultry, the poultry packers who stored the goods and, within a year or so, there was a distinct improvement not only in the condi- tions maintained in the warehouses but in the character of the goods going in. In the old days there was always a tendency to sell whatever was fresh, to hold it on the market until it was obvious that the market was not desirable and then to put it into storage. You can see that, under such conditions, the goods going into storage were far from their pristine freshness. As the storage industry progressed, it was perfectly obvious to all storers that such practices were bad from the viewpoint of the reflexes of the practices themselves and also from the viewpoint of commercial success. Therefore there came very quickly a tendency to put only high class fresh goods into storage, and that tendency has increased until it is now practically a habit. It is the exception, not the rule, these days for produce to go into storage which has been held on the curb pending a good mar- ket, which market did not arrive. And with the abolishing of that attitude has gone a great many undesirable phases so far as the pala- tability and desirability of the product is concerned. In fact, it has revolutionized the whole industry of the preservation of food stuffs by cold. There was another habit which has been practically abolished and which was a big factor in the quality of the goods, namely, the re- moval from storage of a frozen product, thawing it for sale, an undesirable market, and the return of the thawed goods for a refreez- ing. That was formerly a rather common practice. Not only one but maybe two thawings might be given to a ptoduct in the course of its marketing. We found that such treatment was very detrimen- tal to the quality of the material and now it has practically been abolished to all intents and purposes. Such laws as have been en- acted in the various States, ordinarily specify that nothing which has gone out of previous storage shall go back again, and therein they have made a wise provision. Of course, such a prohibition does not apply to the transfer in bond, as it were, from one warehouse to another, nor to transportation in refrigerator cars. Such, then, briefly is the outline of the conditions as we found them in 1905, as they improved with the agitation between 1905 and 1908 and the growing of those improvements up to the present tirne. Early in the investigations the department published a brief out- line of the conditions as it found them, the findings on the goods which were then in storage. From those analyses we drew certain conclusions which at that time were correct. I am very happy to say that that investigation, which is embodied in department Bulletin No. 115, is now only of interest as a piece of past history ._ At that time we were perfertly right in saying that the goods ordinarily on the market from cold-storage showed evidence of deterioration if it had been held for three months or thereabouts. I am very glad to say now that poultry can be held for nine months, the ordinary poultry as it goes in the storage warehouse in the ordinary channels of commerce, with practically no deterioration, practically no change in palatability or in composition, as determined by the most delicate tests that we can apply in the laboratory. 388 COLD-STORAGE LEGISLATION. Bet\\ een 9 months and 12 months there is a slight change in flavor. I think to the ordinary consumer of poultry that change would not be detected. I am speaking now in terms of the greatest refinements that I can apply in the M'ay of flavor tests. I have, therefore, as applicable to the present time, no information that would indicate that dressed poultry can not be held for 12 months in not only good ' but in highly desirable condition. That applies to all classes of poultry going into storage, broilers, roasters, and fowls, as well as turkeys, ducks, geese, and so on. . When it comes to the question of eggs, we found just as much of a misunderstanding, or I might say, a lack of understanding, on the part of the industry of the proper handling of an egg, as we found in connection with the dressed poultry. Eggs were gathered up here, there, and everywhere, held by the farmer, held by the country store- keeper, held by the small country shipper, held again wherever it might be easiest or perhaps commercially desirable to hold them, the result of which was, except very early in the season, that eggs going to the storage Avarehouse showed a rather high percentage of rots, and as the weather grew warmer a large percentage not only of rotten eggs but of deterioated eggs. If we must, as we are quite sure we must, have poultry absolutely fresh when it goes into storage, we certainly must have eggs absolutely fresh. Should there be' any choice in the results to the two products, I should say that eggs are more susceptible to storage changes because of deterioration when they enter the warehouse than is poultry. This is because we hard- freeze the poultry, hold it at a temperature not above 10° F., whereas eggs in the shell are held between 29° and 31°. Now, while cold can never repair a damaged product — you can not put Humpty Dumpty together again — ^yet'it is a sort of "suspended animation" when the product is frozen. When the product is chilled the changes go on very, very slowly, but still they do proceed. Hence, eggs in storage do show a certain amount of deterioration, according to the length of time they are held, whereas up to 12 months, poultry is practically unchanged. It is necessary, therefore, that eggs should be even better handled than poultry. Campaigns of education, showing every link in the chain of results of carelessness in the handling of eggs before storage, care- lessness in the sorting out of the cracked eggs, the rotten eggs, the dirty eggs, the losses that means after the storage period, what it means not only in the loss of product but in actual dollars and cents for f eight, carrying, and insurance charges — have helped very greatly to improve the quality of eggs going into storage. The increased information in relation to handling has also been of marked assist- ance in improving the quality of eggs going into general commerce. For instance, during the war emergency every effort was made to save in a wholesome, sound, high-quality condition for foodstuffs every egg that was laid. The activities in the way of the education of the people handling eggs all along the line, in determining by candling the quality of the eggs, and fixing thereby the responsibility on the proper person who permitted those eggs to deteriorate or rot, accomplished results that were little short of marvelous. Of course, it was helped by the war spirit of service, than which there was no better factor, in making progress. (JOLD-STOKAGE LEGISLATION. 389 As a result of that war activity and because the industry from the farmer to the retailer absorbed the advantages, understood the ad- vantages, of better handling of the egg, of candling, of refrigeration applied promptly and continuously not only to the eggs going into the storage warehouse, but also to the eggs going on the market, a large number of States this year have passed laws embodying the salient features of those war-time provisions. Where it was not possible for States, because of the legislative bodies being cut of session or for other reasons, to pass such legislation, boards of health, food commissions, and such adequately empowered agencies as the State possessed have made rulings and are now enforcing the candling of eggs, which has made a tremendous difference, not only in the quality of eggs on the market, but in the number of eggs saved for food. I have here a small chart which gives the number of rotten eggs, eggs unfit for food, sorted out of receipts in Kansas for three years — 1916, 1917, and 1918. These results are compiled on, in 1916' 59,843 cases of eggs; in 1917, 44,999 cases of eggs; and in 1918, 67,991 cases of eggs. While, of course, that represents a very small proportion of the egg output of Kansas, the quantities are large enough and the field covered was broad enough to make the chart as given fairly typi- cal of the whole State. May I say, too, that what happens in Kansas may be taken as a fair criterion of many another State ? Mr. Jacoway. That is just as to eggs? Miss Pennington. As to eggs, yes. In 1916, 11.7 per cent of the eggs were lost in Kansas during the month of August; in 1917, 7.7 per cent were lost; in 1918, 5 per cent was lost — a reduction from about 12 per cent to 6 per cent in three years. Now, if anyone is sufficiently interested in the subject to look up the weather records in connection with that decrease, he might say that 1916 was a hot summer and 1917 was a cool summer, so is not the increase between the number of bad eggs found in 1916 and 1917 due to better atmospheric conditions? Undoubtedly there was some influence there, but in 1918 we had another hot summer, a very hot summer, in Kansas, and in spite of that there was another drop, bringing the total number of rots down to 5 per cent. You can see also how the number of rotten eggs varies, according to the month of the year. During March, April, and May, the per- centage of eggs unfit for food is the lowest — nearly 1 per cent. Dur- ing the cool weather of the autumn, the high percentage of summer loss drops again, but is not so low as the springtime — about 2 to .3 per cent. Mr. TiNCHER. T suppose the idea of using Kansas for illustration was by reason of their excellent laws which enables you to get the facts easier than a State like Pennsylvania? Miss Pennington. Pennsylvania, unfortunately, does not produce anything like enough eggs for its own consumption. Mr. Jones. We are not busy raising chickens out there; we have other things to do. Miss Pennington. Now when it comes to determining in terms of the condition of the product in cold storage, the improvement that these better methods of handling have made, we get some very in- teresting results. Ordinarily, in times past, a 9 months old egg in storage — I am referring to the period between 1905 and 1908 — a 390 COLD-STOEAGE LEGISLATION. 9 months egg was a pretty old egg. It showed a number of signs indicating age— in the thinness of the white, the delicacy of the yolk membrane, and, more than all, the flavor. Now we have eggs 11 months in storage really better than eggs formerly held 9 months in storage, and the practices resulting in such improvements, I think I may say, as I said for the poultry, have become trade customs ; not an experimental fact here and there, but a general trade practice.. Such a long keeping time is not true of all eggs going into storage, however, because the season in which they are put in storage makes a great difference. Even with the improved methods of handling, the many stages through which the eggs must pass before they come to the storage warehouse have not been brought into perfect line. Eefrigeration IS the thing that is most lacking ; hence, there is bound to be a certain amount of deterioration in the warm weather which the handling methods have not yet overcome, although I see no reason why, if we progress in the future as we have in the past, there should not be additional improvement made and much greater strides. And therefore we ordinarily assign 10 to 11 months as the keeping time of egs going into storage during March and April, and May, if that month happens to be cool ; a shorter keeping time for the June eggs, still shorter for the July eggs — but very few eggs go into stor- age in July; they are not worth it; and practically none go in in August. On the basis of the facts as I have endeavored to outline them, in department Bulletin No. 775 we have made this statement: "Spring eggs prepared for storage by commercial sorting showed, after 7 to 11 months storage, an average loss of 18.5 bad eggs to the case." And may I say that the case contains 30 dozen eggs always; it is a uniform standard package. We also say in the bulletin that " corresponding cases of eggs graded for storage by the candler showed for the similar period in storage 4 bad eggs per case as found by candling and 3 additional by breaking." We think that such records are ample incentive to the storage warehousemen — not the storage warehouseman, because he does not own the eggs, but to the man who does own the eggs — to put into storage good eggs and to take better care of them. And I am glad to say that he does. This bulletin has not been out a great length of time. It was published on the 3d of June, 1919, but I know by our close association with the people who are handling eggs and putting them into storage that the information here has alreaay made some impression and we are very sure that it will make a greater impression as time goes on. Mr. Jacoway. Take the average farmer's cellar: How long will eggs in a case keep if placed in the cellar of an average farmer ? Miss Pennington. It depends entirely on the temperature of that cellar. Mr. Jacowat. Certainly. Miss Pennington. It would be an entirely different matter if the cellar were in Maine or if the cellar were in Texas. Mr. Jacowat. Well, take it in Texas. Miss Pennington. They would not keep very long. In fact, in hot weather in Texas there are practically no edible eggs even in the country. COLD-STORAGE LEGISLATION. 391 Mr. Jacoway. What I am getting at is this: Would eggs, as a general rule, in the average cellar oi the farmer keep long enough until he could get a sufficient amount to ship, say, in half-carloaa lots? Miss Pennington. Oh, no. The farmer must ship twice a week if he is going to ship fresh eggs in the summer time. The only way to hold eggs, to get a stock of any magnitude, is to hold them under refrigeration. That involves either the use of mechanical refrigera- tion on the part of the concentrator or ice-cooled chill rooms, which are practicable, and which are being used to a greater and greater extent all of the time. The farmer very seldom accumulates a suffi- cient amount of eggs to ship in carload lots ; that is the function of the small country concentrator. Mr. Jacoway. The reason I asked that question — I looked up a record on eggs some two years ago, and do you know what per cent of the eggs spoil at the place of production? Miss Pennington. It has been variously estimated at from 2 to 8 per cent. I think that these figures in Kansas will give you as close a record — ^the figures in the chart that I quoted a while ago will give as close a record — on that subject as anything that I laiow of; because these eggs came, most of them, directly from the farmer and country concentrator. What happened to these eggs is accounted for almost entirely by the care on the farm — or the lack of it, rather. Mr. Jacoway. Now, could you state ordinarily, in dollars and cents, what the egg and poultry crop is in the United States — ^just nominally ? Miss Pennington. No, sir; I can not. Unfortunately, we do not have any statistical information — we never have had — on the real value of the poultry and egg crop of the country. We have a num- ber of estimates which are useful, and which, I have no doubt, ap- proximate the truth, but they are not accurate. Mr. Jacoway. Would a billion dollars approximate the value; would not that be about the approximate amount of eggs and poultry raised a year in the United States ? Miss Pennington. I would say that was conservative. Mr. Jacoway. That is conservative? Miss Pennington. Yes, sir. Mr. Jacoway. Do you think as much as 10 per cent of that product is lost or deteriorates at the point of production ? Miss Pennington. I think as much as 10 per cent, up to the sum- mer of 1918, was lost between the point of production and the market concentrator. Mr. Jacoway. I am talking about production now. Then, that would be $100,000,000 out of the billion dollars of product, wouldn't it, if it were 10 per cent ? Miss Pennington. Yes. Mr. Jacoway. Is it not also a fact that 30 per cent of that billion- dollar product is lost between the point of production and the con- sumer's table ? Miss Pennington. I should not say that 30 per cent was lost. I should say, however, in all likelihood that 30 per cent of the product suffered a certain amount of deterioration, which resulted in a lower food desirability and monetary loss. 392 COLU-STORAGE LEGISLATION. Mr. Jacoway. How much would you say was lost absolutely be- tween the point of production and the consumer's table ? Miss Pennington. Approximately ten per cent. Mr. Jacoway. Then out of the billion dollar product, according to your information, the farmers of this country lose $200,000,00$ yearly, on account of improper methods in handling the eggs and in handling their poultry ? Miss Pennington. I think the loss, if apportioned over the entire industry, would undoubtedly total that. Mr. Jacoway. And that great economic loss can be avoided, in your judgment, by following some of the suggestions made along these line:! you are now making ; is that the idea ? Miss Pennington. Yes, I think so. It has been our experience that better handling has reduced the losses all along the line and there seems to be no limit to the amount of education which the farmers and the industry are willing to absorb. Mr. Jones. Just a question for information — -I .probably ought to know as well as anybody else : Is it possible there is a difference in flavor between two fresh eggs, laid on the same farm on the same day? Miss Pennington. Very seldom. Practically every egg which a hen lays is a good egg. Occasionally — very seldom, but occasion- ally — a hen does have a hemorrhage in the oviduct, which results in a certain amount of blood being mixed with the white of the egg, in which case the fresh egg is not desirable as a food product. But that is so exceptional that it plays no part in commercial considerations. Mr. Jones. I am not speaking of commercial poultry but, say, in two fresh eggs is there a difference in the flavor and the taste ? Miss Pennington. Yes; if the hens eat different materials; accord- ing to the diet of the hens there is a difference. Mr. Jones. That is the point I am getting at. Miss Pennington. Now is it your wish that we continue with the details of the poultry and egg improvements which are of interest to the committee, or shall I make a statement on the score of fish before you ask such questions as may seem desirable on poultry and eggs? Mr. Heflin. I should think it would be better to allow Dr. Pen- nington to make the statement and then let us ask the questions afterwards. Mr. Hutchinson. I suggest that you proceed in your own way. Miss Pennington. The study of fish has not continued as long as the study of eggs and poultry. It is relatively new. We have been engaged in the investigation of fish handling for four or five years, only. We find in general that the same fundamentals which apply to the better condition of dressed poultry on the market apply also to the better condition of of fish. For instance, it is undesirable to soak fish in water, even if that is ice water, just as it is undesirable to soak poultry in water. It is absolutely necessary that fish shall go into storage as promptly as possible from the sea. And the same general practices on the part of the industry as prevailed in the mat- ter of dressed poultry, have in times past prevailed also in connec- tion with fish. Formerly fish going into storage was too often fish which had been offered for sale on the markets and not accepted. Now the (JOLD-STOBAGE LEGISLATION. 393 practice is to put the fish into storage as quickly as possible after they are extracted from the water. To do that we have a rapidly- growing chain of fish freezers along our coasts, both the Atlantic and the Pacific coast, and now there are signs of similar activity on the coast of the Gulf of Mexico— a most wonderful source of fish, and an all-the-year-round source of fish. These freezers, which are located at the point of the catch, are filled ordinarily in the summer time when fish are being caught. The product is held in these large storage houses at very low temperatures, ordinarily at lower tem- peratures than prevail for the holding of poultry, and in the winter time it is shipped, ordinarily in carload lots, to the various dis- tributing points throughout the country, frequently for long hauls; and frozen fish can be very satisfactorily shippe'd for practically any distance if the refrigerator car equipment and tlie railroad icing service maintain fair efficiency. We find by a modification in the method of handling that it is not an impossible thing at all to ship fresh fish for long distances in refrigerator cars if those cars are well built, and if the service, the icing service is adequate; all of which is not at all impossible, but can and should and is becoming a matter of ordinary commercial prac- tice. It has been supposed in the past by the trade that fish must have melting ice running over them if they were to be kept fresh. We know now, like a great many other ideas that the trade has tenaciously held, that that is an error. Therefore, instead of bank- ing the barrels or boxes of fish in the refrigerator cars with fine ice, covering the whole load over as has been done in the past, we are putting ice and salt in the bunkers of the refrigerator cars, in the same way as "beef icing" is practiced, and shipping the fish in that way. Last summer, during the stress of the war emergency, when we were saving meat and urging the consumption of fish, the depart- ment participated cooperatively in sending more than 400,000 pounds of fish from the Gulf of Mexico as far north as Indianapolis, stop- ping twice in transit to unload portions of the car. These ship- ments were made during the months of June. July, and August, when frequently for days at a time the temperatures were 100° or more. The fish arrived in good order. Shipments of the same kind were made from the Atlantic seacoast to the Middle West, and it was demonstrated without any question that by a certain revision of methods it is possible to ship fish for long distances; and what we have considered heretofore to be an extremely perishable product, to be vouched for only at the source of production, and sometimes then with reservations, we know now to have really marked keeping powers. We believe that it is a product that can be subjected to the ordinary commercial usages, in ordinary commercial ways, with a very great increase in the consumption and a much wider distribu- tion. There is one point in the storage of fish which I should bring out, because it varies in that particular from every product that I know of, in that each fish, or each small group of fish, is covered with a thin jacket of ice when it is stored. As the fish come from the catch they are usually washed in water and put into pans, which may be, generally are, about 25 inches long and of suitable width. Ordina- 394- C0LD-ST0EAt3E IJ3GISLATI0N. rily the fish are in one layer and laid spoon fashion, head to tail, until the pan is entirely filled. It is always desirable to freeze any- thing that is to be frozen as promptly as possible, and this prompt freezing gives particularly good results with fish; the lack of it correspondingly bad results. Hence there have been built what have been termed "shelf freezers." Instead of running the cold brine through pipes on the walls or on the ceiling, as is ordinarily the custom of the warehouse, these brine-carrying pipes have been made into shelves one above the other. The pans are slid in on the shelves flat on the brine pipes, and therefore there is a direct contact between the metal of the pan and the metal of the pipe and a very quick freezing, or, I should say, a very quick abstraction of the heat of the fish by the cold brine cir- culating in the pipes. Under such circumstances fish will freeze solid in from 6 to 18 hours. Mr. JoMES. That is the application of the cold storage, or is it at the point of production? Miss Pennington. This is freezing now at the point of production. After the fish are frozen in the pans they are taken out and run through a tank of cold water. The fish are so very cold that just the moment the water strikes them it freezes, and if the fish is pushed fairly rapidly through the water it comes out with a complete en- velope of ice. That is what is termed in the trade " glazing," and all fish now to be held hard frozen are glazed. That glaze slowly evaporates. Ordinarily it must be renewed about every three months that the fish are held. That is something that the owners of the fish used to be a bit careless about, with a consequent deterioration of the fish, but they have learned how necessary it is in the main- tenance of the quality, and hence the glazing is now very carefully attended to. Mr. Young. You speak of the glaze evaporating. Does the flesh of the flsh absorb the water from it ? Miss Pennington. No, sir. Ice is subject in a certain degree to the same physical laws that govern water, and in the low tempera- tures of the storage warehouses there is a gradual evaporation of the ice, just as there would be an evaporation of water at higher tem- peratures. It is very slow, but it does occur. The fish does not absorb the ice glaze, but the air does carry it off. Wlien the fish are shipped from storage they are ordinarily put into boxes, large boxes, which may hold anywhere from 100 to 600 pounds. They should be handled hard frozen all the way to the consumer. The real difficulties that we are contending with now lie mostly in the hands of the retailer, where the fish is thawed and sold either as fresh fish or nothing is said about it. The fish should go to the housewife, if possible, hard frozen, to be, thawed by her in her own house refrigerator, which can readily be done without contamination of the other articles in the refrigerator. And when it is thawedi in the cold air it is ready for cooking in the ordinary fashion; there is nothing to alter, nothing unusual, nothing that needs any special instruction, in regard to the cooking of frozen fish. They are just fresh fish when thawed out, much nearer fresh fish than most of the so-called fresh fish on the market. I would much rather take my chances on a frozen fish held 12 months in COLD-STORAGE LEGISLATION. 395 storage than the so-called fresh fish from the ordinary fish market, handled in the ordinary way in fine ice. We have no reason to believe that fish will deteriorate in storage either in palatability or food value in a period beyond 12 months. In fact, we have kept certain kinds of fish for 27 months without any striking differences. In the later periods of storage, as with poultry, there is a loss of palatability, but we find no differences from the consumer's standpoint or from the laboratory standpoint which are of any significance up to a period of 12 months. Mr. Jones. On what was Senator McKellar's suggestion based of holding fish only for a period of two months, as I recall it, or not exceeding four months? What was the basis of his reasoning for insisting upon that provision in his bill ; do you know ? Miss Pennington. No, sir; I have no information on that subject; I do not know what Senator McKellar had in mind. Mr. Jones. You know in his proposed bill he provides that fish should be released from storage at the expiration of two months. Miss Pennington. I have not read the bill carefully ; I have heard certain quotations from it. Mr. Jones. That was in the bill, as I recall it, but you have no information on what that was based? Miss Pennington. No, I have no information on what that was based. I am quite certain that such a provision would make a very great difference to the consumers of this country, when it came to the maintenance of the fish supply — an undesirable difference from my viewpoint — because it would greatly limit our stocks of fish in seasons when fishing can not be pursued. Agricultural crops are uncertain, but the crop of fish is far more uncertain than any agri- cultural product of which I know. Fish come, fish go; we do not know where they come from, we do not know to where they go. But we know at some seasons they are in the sea, visible, and can be caught ; and at other seasons they are absent, and for long periods certain varieties of fish will not apepar in large schools. Mr. Jones. 1 come from the Lake Erie region, and they tell me the supply of fish up there this year is very, very scarce. Has that been verified by your department? Miss Pennington. I have heard statements made to that effect, but I have not verified the statements. We have had a great deal of interference with the fishing on the east seacoast on account of the many heavy storms. Mr. Jones. Pardon me for interrupting your discourse, but I thought I would get the information there. Miss Pennington. It is no interruption at all. I think I have practically finished the statement I had in mind. Mr. Heflin. At what season do they catch the fish for storage— the last season ? Miss Pennington. You mean how long does fishing continue tor storage ? Mr. Heflin. Yes. . n • j. Miss Pennington. On our east coast it may contmue well into October, when the finest of our weakfish arrive. The autumn storms generally end the fishing period. Sometimes those come early, and our fishing season is short ; sometimes they are later, when the fish- 187690—19 "T 396 COLD-STORAGE LEGISLATION. iny period will continue longer. Tluit ciin ne\er be predicted, can never be determined. IVIr. Hei'Lia\ When does it begin again the next year, about? Miss Peivxington. That, again, is very lai'gely determined by the weather, but generally about March or April. As soon as the ^larch winds permit, the fishermen go out. The ground fishing, the fishing for cod, haddock, and halce, off the banks, continues to a certain extent all the year around, although it is greatly reduced in the winter time. Fishing for the migratory fish, such as mack- erel, weakfish, and whiting, absolutely ceases in the winter time on ;ington. The commodities which have been discussed, sucli as poultry, eggs, and fish; those are the commodities in which I am especially interested and where the investigations as I know them would indicate that a 12-months limit is justified. The Chairman. Dr. Campbell in his testimony before the commit- tee T understood to suggest 10 or 11 months for eggs. Miss Pennington. Eggs will keep from 10 to 11 months. How- ever, they regulate themselves, by going out of storage, because they do not keep longer than that period of time, and because the incoming crop makes it commercially imperative that they be removed from storage. When it comes to a month's variation of that kind, it has seemed to me that the gain to the administering of such a law by having ii flat time covering tlie ^-a^ious coinmodities would more than make up for anj' slight disparity that there might be between the phraseology of the law and what might appear to be the facts. Again, all of the information that we have tends to show that the better the handling, the more intelligent we are in the preparation for storage and the storage of these commodities, the longer we can hold them in desirably good condition. The Chairman. What can be done to insure their going into stor- age in good condition? Miss Pennington. I should say that a continuation of the investi- gational and education campaign for which this committee has al- ready made provision in the Department of Agriculture will best insure that. Certainly, the results which have been obtained during the last ten years indicate that such educational work makes a pro- found impression on the industry. The Chairman. You have no suggestions to make as to additional legislation in that respect? Miss Pennington. No, sir; I think the food and drugs act as now provided, and as it is now being enforced, takes ample care of any undesirable, deteriorated, filthy, decomposed — or whatever the phrase may be — food products on the market in interstate commerce. There is no essential difference between the products coming out of storage which fall under that provision as given in the food and drugs act and products which have not been in cold storage. The Chairman. Dr. Campbell, in referring to the storage of fish, stated : We have observt'd some tliat we have kept fur a period of 27 mouths. Fish, then, can be kept for a period considerably over I'i months without deteriortion ? Miss Pennington. Yes; there are quite a number of varieties of fish that we know can be kept considerably beyond 12 months. How- ever, there you have the economic phase, in the sense that fish are seasonal products ; the catch of one year should not, in normal years, at least, interfere with the catch of succeeding years; there should be a seasonal incoming of new material and a seasonal outgoing of pre- served material, which would make for a continuation of the industry and a balanced food supply. 398 COLD-STOEAGE LEGISLATION. The Chaieman. After all, if it is wholesome after 12 months, it would be well to preserve it for the future if there is no demand or market for it ? Miss Pen KINGTON. I do not believe in destroying any foodstuffs which is wholesome and desirable. There might be, and there has been in a number of State laws, as well as in the so-called uniform State law, a provision by which the flat 12 months' limit could, on examination and proper certification by a recognized official, be ex- tended for a comparatively short and definite period of time, which provision takes care of The Chairman (interposing). It would take care of that situation in that way? Miss Pennington, Yes ; I would suggest that way, and the utiliza- tion under regulation of foodstuffs that are desirable The Chairman. With regard to poultry held in cold storage, Dr. Campbell stated : We have found that poultry can be kept for a period of two or three months, but nevertheless its palatability is affected. Miss Pennington. That is a statement which I tried to make clear this morning, when I said that in the beginning of our work, nearly 10 years ago, we found conditions in storage which were such that most, if not all — certainly a very large part — of the poultry was not a desirable food product after being kept relatively a few months. It so happened that Mr. Campbell, when he made that statement before this committee, had been provided with a copy of that very old bulle- tin. As I stated this morning, that bulletin is interesting now simply as a bit of history — past history. The conditions at present are very different in every respect, both in the preparation of goods for storage and holding goods in storage ; , and the practices of food conservation on which cold storage is predi- cated are such that I believe the 12 months' flat limit for poultry to be thoroughly justified, not only from the standpoint of the palata- bility and desirability of the foodstuff, but, on the economic side, from the viewpoint of a year-around food supply for the people. The Chairman. Dr. Campbell's conclusions were based upon bulle- tins which contained findings of a number of years ago? Miss Pennington. Yes, and which I am very glad to say have been outlawed by progress. The Chairman. What suggestions have you to make in reference to regulations governing cold-storage plants, proper reports, and exami- nations of the plants as to sanitary condition? Miss Pennington. I think, from a general contact with refriger- ating warehouses and cold storage in general, Mr. Chairman, that such legislation would be highly desirable from all viewpoints. Of course, the work with which I am officially charged and for which especially the Secretary directed me to come to this committee does not take in such questions as that; and yet, because of contact with them frequently, I can not help but have some opinions. And my personal opinion along those lines indicates that such legislation, properly drawn, taking into account the great funda- mental differences between the distribution and marketing of perish- able foods and imperishable foods, would be a very great advantage to the consumers of the country, and, incidentally, to the industries along that line — the food industries dealing with perishable staples. COLD-STORAGE LEGISLATION. 399 It seems to me that there should be a mechanism by which there is a reporting of foodstuffs held in storage; reporting should be done frequently ; I should say once a month. It is a custom of the -ware- housemen to make up reports for the own purposes once a month; and I can see no reason why those reports should not be sent in ' o any Federal officer' who may be designated, for general information and such arrangements as would, of course, be made in connection with-the Federal law. I think there is every reason to welcome the authority which would be vested in such a public official to investi- gate the sanitary conditions of warehouses and to look into any ques- tion in connection with them that might be of public importance. The Chairman. Then, in your opinion the Secretary should be given authority to inspect the plants at any and all times ? Miss Pennington. I should say so, Mr. Chairman. The Chairjian. And to collect samples. Miss Pennington. If that is necessary. Whether that would be desirable, in view of the provisions of the food and drugs act, is a question that I think I am scarcely capable of making a decision upon. Dr. Alsberg or Mr. Campbell would give you a much more independent opinion upon that point. I fancy they will say that the provisions are all in the food and drugs act ; they can take sam- ples of any product that goes into interstate commerce. The Chairman. That would be true, under the food and drugs act ; but that is administered by a different bureau. Do you think that it- is important, to authorize the Secretary to promulgate rules and regulations ? Miss Pennington. Yes. The Chairman. I believe that is all. Dr. Pennington; we are in- deed very grateful to you. We will now hear from the gentlemen representing Armour & Co. Mr. Kirk. Mr. Chairman, my name is Kirk, and I represent Ar- mour & Co. I asked permission to appear before this committee, to give you some information as to our experience in handling these food products in cold storage. We have here three of our men, representing different branches of the industry, whose statements, we think,' will throw considerable light upon the subject under consideration. I will ask Mr. AVaddell to speak first. STATEMENT OF MR. F. W. WADDEIL, IN CHARGE OF PORK AND HOG DIVISION, ARMOUR & CO., CHICAGO, ILL. The Chairman. Will you kindly give your full name for the record ? Mr. Waddell. F. W. Waddell. The Chairman. And whom do you represent? Mr. Waddell. Armour & Co. Mr. Anderson. In what capacity do you represent them? Mr. Waddell. I have charge of the pork and hog division, the board of trade provision operations, and our public cold storage. I just want to say that Armour & Co. have always been very anxious to present their records, or to give any information which will be of a helpful nature to the country generally, to the industry and to the Federal Government. 400 GOLD-STOEAGE LEGISLATION. I notice in reading the minutes of the meeting of August 12 that Senator McKellar stated to the committee that in previous hearings on cold-storage matters the packers had been invited to present their side of the case, and none of them appeared. In this he was mistaken. That hearing was on the Heyburn bill, I believe, in 1910 and 1911; and the record of the hearings before the Committee on Manufactures, United States Senate, volume 2, shows that the representatives of the packers appeared before that committee, among whom were Mr. Gustav Bishop, of the Inde- pendent Packing Co., of St. Louis ; Mr. Burrows, of Libbey, McNeill & Libbey; Mr. Urion, representing Armour & Co.; Mr. White, also representing Armour & Co.; and Mr. Talliaferro, of Hammond Standish Co., of Detroit. I just thought this an opportune time to inject this into this record, as a correction of that statement. I have compiled some figures which I thought would be enlighten- ing and interesting to this committee, and I hope that I have anticipated what you want sufficiently so that you will have the data upon which to draw your own conclusions. If there is any other information, statistical or otherwise, which I do not happen to have at hand, I will be very glad to provide it. I might also say that our legal department prepared a resume of the history of the legislation which has been before Congress, and if it is desired I will read that. The Chaiemain-. How long is it? Mr. Waddell. It is rather brief. Is it the wish of the committee that I should simply insert it in the record, or shall I read it? The Chairman. You may proceed in your own way — either read it or have it incorporated in your remarks, whichever you prefer. Mr. Wadell. Then I will read it. HISTORY OF OOr-D STOJtAGK I.KOISLATION. While the pre^e^ving of meat products, fish, butter, eggs, poultry, etc., by means of storage under refrigeration has been practiced for a great many years, special laws regulating the storage of foodproducts in such manner are of comparatively recent origin; in fact, prior to 1911 there seems to have been liffle (H- no SDfiCific legislation on the subject throughout the United States. CONGEESSION A L INVESTIGATIONS. Ill 1910 Senate bill 7649 was introduced in Congress by Senator Lodge. This bill simply provided that any article of food held in cold storage for more tnan one year should be deemed adulterated within the meaning of the food and drugs act, and foods carried in cold storage for less than a year should mo rtepiued misbranded if not labeled to show the period of time held in cold stomgp. This bill was referred to the Committee on Manufactures, which com- mittee belli extended hearings during the spring of 1911, but nothing definite resui*''^, tmrlng the sessions of the Sixty-third Congress in 1913, several cold-storage bills were introduced, notably H. R. .5695, by Viire, providing that no article of food should be held in cold storage more than ten calendar months; H. li. 9530 h.\' -McKellar, which limited the storage of various products to certain periods of time, ranging from two months in cases of fish and veal, three months for eggs, butter, poultry, and game, four months for pork and mutton, and seven months for beef; and K. R. 3376. by Cary, limiting tho storage of eggs, butter, fish, game, poultry, iind lamb to three months; veal and pork to Jour months, and beef to seven months. The McKellfir bill (II. U. !)."i;iOi was liikeii up mid extended hoariugs were held by the Committee on Interstiile and Foreign Commerce in 1913. Also, the same bill was again considered and further hearings had In 1915. In January. 1916, Representative Cary introduced a bill (H. R. 9674) which was COLD-STORAGE LEGISLATION. 401 practically the same as his previous bill (H. R. 3376), but no hearings were STATE LEGISLATION. New Jersey and Indiana were the pioneer States to pass cold-storage laws. Both of these States enacted such laws in 1911. The Indiana law limited storage ot foods to nine months and provided for the marking of containers with the date of entry into cold storage. A license fee of $10 per year was required for the operation of a cold-storage warehouse. The New Jersey law was to the same general effect, except that the limit of time for storage was lixed at 10 months, with longer storage permitted by the consent of the State board of health. It also required goods to be labeled with the date going into storage, and further required quarterly reports of goods in storage to the State board of health. ^ North Dakota and Pennsylvania f onowed with cold-storage laws in 1913 The law of North Dakota defined cold storage as the keeping of food for a period exceeding 30 (hiys in :i jihice .•.vtiticially cooled to a temperature of 40 or below, the limit of storiiL'e bein^' fixed at 12 r-alendar mouths exceiit that the food commissioner might, upon applicntioii. gi'ant permission to extend the period of storage beyond the 12 mouths, pniridlng, upon exnmination the goods were found to be in prope- condition for further storage. The Pennsylvania law, likewise passed in 1913, was more radical, and pro- vided that the time limit of storage as to beef should be 4 months; pork and mutton, 6 months; veal, 3 months; dressed fowl (drawn), 5 months; undrawn 10 months; eggs, 8 months; butter and fish, 9 months; the definition of a cold-storage warehouse and cold-storage goods being the same as in the North Dakota law. Both of these laws provided for licenses ($10 in North Dakota and $50 in Pennsylvania) and the marking of the date into storage and out of storage. This law was repealed in 1919, however, and the present cold- stor:ige law In Pennsylvania is substantially the same as the North Dakota law. UNIFOKM STOKAGE LAWS. In 1914 a conference of commissioners on uniform State laws, composed of Federal and State food-control oflicials, was held in Washington, D. C, and a model cold-storage law was framed. This proposed law defined a 'cold- stonige warehouse as n place artificinlly cooled to or below a temperature of 45° in which articles of food are placed and held for 30 days or more. It also provided for licenses to be obtained and reports of the quantities of goods held in such warehouse to be made at intervals, as well as the marking of goods stored with the dates in and out of storage. The limit of time was placed at 12 months, with authority given to the State food commissioner to extend the time of storage not more than 120 days if the goods, on examination at the end of the 12-month period, were found in proper condition for further storage. This same bill was recommended by the committee on uniform laws of the American Bar Association in 1914. A copy of this proposed law is attached herewith as Appendix A. Following this- recommendation by the commissioners on uniform State laws and the American Bar Association, ns above, several of the States passed laws substantially In accord with the so-called model law. The States now having cold-storage laws and the limits of time in which goods may be held in storage under such laws are as follows : Limit of time, months. North Dakota 12 Pennsylvania (new law) 12 Iowa 12 Massachusetts 12 New York 12 California 12 Illinois 12 New Hampshire 12 Utah 12 Maryland 12 Louisiana 12 New Jersey ' 12 Indiana ^ 9 » With privilege of extension. 402 COLD-STOEAGE LEGISLATION. When the Food Administration took charge of cold-storage warehouses and licensed all wholesale dealers in cold-storage foods, etc., in the latter part of 1917, rules were iiromulgated substantinlly in accord with the model cold- storage law of the American Bar Association, so far as the definition of a cold-storage warehouse is concerned, the marking of cold-storage products show- ing the date in and out of storage, as well as the time limit for storage. The rule of the Food Administration was that under the hoarding provisions of the food-control act products would be regarded as hoarded if carried longer than necessary to supply the holder's reasonable requirements during the period of scant or no production. This was further defined to mean not exceeding one year by the law department of the Food Administration, and the rules were enforced on that basis. It is also interesting to note that the Pennsylvania cold-storage law, which provided for short periods of storage, was held by the law department of the Food Administration to be suspended during the period of its regulations, be- cause it conflicted with the Federal regulations, and after such regulations were annulled, apparently as the result of experience gained by operation under the Food Administration regulations, the Pennsylvania law was repealed and a new law passed practically indentical in language and essential terms with the model law of the bar association. DATA ON STORAGE TIME LIMITS. The limit of time which goods may be carried in storage has been the point in the cold-storage laws most discussed. The Bureau of Chemistry of the United States Department of Agriculture has compiled data which bears out the claim of cold-storage operators that one year is a reasonable storage period. In United States Department of Agriculture Bulletin 775 the statement is made on page 5 that the losses in commercial fresh eggs with clean, sound shells were found to be negligible during a storage period of 11 months, and United States Department of Agriculture Bulletin No. 729 has a table accom- panying said bulletin which gives data concerning the proper storage of eggs, butter, poultry, and fish and lists under the heading " Storage Period " the statement that the storage period should not exceed 12 months. These are articles, of course, which are not frozen. In the case of frozen eggs an inter- esting statement is made on this table, as follows : " No change in composition up to 24 months. After 12 months eggs thicken slightly. Whites near top of can may become pink, due to iron under tin. Egg not injured thereby." The keeping qualities of frozen eggs can be compared with frozen meats;. In United States Department of Agriculture Bulletin No. 433, page 6, it is stated that experiments conducted on frozen beef held from 33 to 554 days showed but slight differences between the composition of fresh and that of frozen meats ; that on cooking no difference in flavor was noted between the fresh and the . frozen samples of meats. The wholesomeness of meat and meat products as the result of storage is, of course, determined by the Inspectors of the Bureau of Animal Industry. All meats or meat products designed for shipment Into Interstate commerce must be inspected and passed by such inspectors and marked " Inspected and passed " before the same can be offered for shipment. In all establishments where Federal inspection is maintained, which includes every establishment doing any interstate business, the inspectors pass on the meats as they go into storage and also as they come out of storage. Manifestly, a limit of time a» to such products would be of very little benefit so far as the question of whole- someness Is concerned. The overwhelming weight of scientific authority Is to the effect that 12 months Is not unreasonable as a maximum storage period. Likewise, the majority of all the State cold-storage laws, as above shown, are in harmony with the proposed law of the American Bar Association, and in none of the States have time limits for storage been fixed at such short periods as are named In the McKellar biU. CONCLUSION. It goes without saying, therefore, that a Federal law should not be enacted which arbitrarily makes the possession and sale of wholesome goods unlawful and the goods themselves contraband of commerce simply because they have COLD-STORAGE I^GISLATION. 403 been carried in storage a few months. Especially is this so when the food- control officials, both State and Federal, as shown by their bulletins and pro- posed legislation have fixed one year as a reasonable storage period, and such laws have actually been in successful operation in a number of the States for several years. Mr. Home says that the New Jersey law is now 12 months; in the statement I ha\e just read it was given as 10; I have changed that figure. They were all 12 months with the exception of New Jersey and Indiana, and an amendment of the New Jersey law now leaves but one State with less than 12 months, and that is Indiana. The Chairman. The New Jersey law has been amended recently? Mr. Waddell. I understand so. The Chairman. And the time extended? Mr. Waddell. Yes, Mr. Chairman ; as you understand, I am speak- ing now from a pork standpoint. We have another man who will, speak on beef, and a representative of our butter, eggs, and poultry department who will speak on those products. As to the time limit for frozen pork, I just want to explain that the heavy receipts of hogs come usually beginning in October and ending usiially in March. That has always been designated as the packing season ; it is the time when the surplus hogs of the country are marketed. You can appreciate that it would be absolutely im- possible to market the tremendous quantity of pork product coming from those hogs in that short period of time ; and cold storage acts as a reservoir in which we carry product from a period of plenty to a period of scarcity, and equalize the food supply. I also want to make a distinction in cold storage. I think, if I am correctly informed, that the records of the Bureau of Markets showing the cold-storage capacity throughout the country included chill-rooms and processing storage. By processing storage, I refer to refrigerated space from 32 degrees up to 40 degrees. You, of course, recognize that we save a perishable product, and naturally that product must be carried in a refrigerated space and processed in a refrigerated space. Our freezers, which are our holding reservoirs for a period of time, are simply an essential to carry our surplus pork product. It would be impossible to procure and carry in ordinary refrigerator space — I refer to the 30 to 40 degree temperature — the entire pro- duction; we would have what is known as overcured product — ^that is, oversalty and very unpalatable. We contemplate carrying cured products along to take care of our immediate wants. The curing age runs anywhere from 40 to 80 days ; that is practically a minimum and a maximum. So that you can appreciate that we must contemplate our demands for that length of time on the different products which I refer to — ^hams, bacon, and pork ; products of that character. As this cured product is absorbed by the trade, we draw from our freezer stocks. And along that line, in the McKellar bill, there is a provision that goods frozen can not be thawed, but must be sold in the frozen stage, if I interpret it correctly. Pork taken out of the freezer for curing must be thawed in order that we can give it the curing process. On fresh pork, our cars are frequently delayed being shipped to our branch houses ; the pork arrives there what we call " soft " — that 404 COLD-STORAGE LEGISLATION. is, it is frosty; and in order to preserve its condition it mnst ajjain go back into the freezer. You can also understand that in conserving these surplus stocks to wliich T refer, it is a protection to the producer; if we were forced to market this stuff beyond the ability of the country to absorb it, it would, of course, create a very material depression in prices tempo^ rarily and would have the contrary effect later, at a time when the greater proportion of the hog crop had been marketed. Mr. TiNCHEK. Senator McKellar in speaking of that thawing prop- osition, addressed his remarks entirely to poultry; his complaint ^vas that where they have poultry they used warm water to give it a better appearance. That was all with regard to the poultry prop- osition. I suppose his bill would affect both poultry and pork .products, but his complaint was with regard to poultry. Mr. Waddell. Thank j'ou. Our poultry man will answer that later, then. Mr. Wilson. Are you familiar with the cold storage of eggs? Mr. Waddell. No, sir; we have a man here, however, who is quali- fied to answer any inquiries as to eggs. Mr. Wilson. Then pork is your line? Mr. Waddell. Yes. I have prepared a statement, which I have here which I thought would be of interest. The receipts of hogs in the 10 principal markets, from November 18, 1918, to July 31, 1919, showed an increase of 14 per cent. The Armour kill for the same period showed an increase of 19 per cent in numbers of hogs, and of 12^ per cent in the tonnage. The hogs killed in 1919 were lighter than those killed in 1918. The Armour stock of pork meats in 1918 was 121,000,000 pounds, That includes pork meats of all kinds. Mr. Wilson. What was it in 1918? Mr. Waddell. August 1, 118,000,000 Mr. McLaughlin of Michigan (interposing) . What was that first figure you gave ? Mr. Waddell. One hundred and twenty-one million. Mr. McLaughlin of Michigan. But what does it represent? Mr. Waddell. Armour's stocks of all pork meats. Mr. McLaughlin of Michigan. In cold storage? Mr. Waddell. In cold storage; in the freezer storage. Mr. McLaughlin of Michigan. August 1 ? Mr. Waddell. Yes, sir; and this year it is 118,000,000 — our.net stock — or 3,000,000 less than last year, notwithstanding the fact that we killed 19 per cent more hogs than in the previous year. The total meat stocks, as officially reported to the boards of trade in the six leading markets of Chicago. Omaha, Kansas City, St. Joseph, Mil- waukee, and St. Louis and East St. Louis show a total meat stock of 384,000,000 pounds at present, as against 383,000,000 pounds a year ago. Mr. Anderson. That is, in storage? Mr. Waddell. That is the total stocks carried in storage and in curing process. Total packing-house meats in storage and in curing process. Mr. Wilson. Will you tell us how you account for the discrep- ancy, if you can ? .'()LI)-STOKA(iE LEGISLATION. 405 Mr. Waddell, For the lack of accumulation in the light of the increased hog receipts ? Mr. WiLSOK (interposing). Yes; the discrepancy and the cause of it? Mr. Waddeul. Well, the demand is the cause, and the heavy export business. A little later I will give you the figures on the export busi- ness, which will enlighten you on that point. Mr. Wilson. All right. Mr. Waddell. The total amount of stock of all meats in the Ar- mour freezer at the present time, one-half of which is pork, is 45,000,000 pounds ; one year ago it was 44,700,000 pounds, which is practically a stand-off. A great deal of that freezer stock is what is known as offal products, such as hearts, livers, kidneys, ears, tails, and feet. The reason for that is that there has been very little de- mand for these for the past two years. That is what is known as cheap food, and usually goes to the wage earner; and we all know that the laborer has been earning so much money that he has side- tracked the cheap product and he is buying the best. The Armour exports of pork meats and lard — and this answers your question — for the year ending August 1 were 420.000.000 pounds, as against 340,000,000 pounds in 1918. For your information, I might say that in 1914 our total export business was about 132,000,000 pounds of meat and lard combined; now it is almost four times as much as it was in 1914, the prewar period. The average drove cost of the Armour hogs on August 14 was 21.87 cents per pound, or $21.87 per hundred pounds. Mr. McLaughlin. Is that in 1919 ? Mr. Waddell. Yes ; in 1919. In 1918, on the same day, our average drove cost was $18.27 per 100 pounds, or 18.27 cents a pound; that is 3^ cents a pound difference on the foot. The cash price on September ribs — these are take from official board of trade cash quotations, which are a basis from which the prices of the different cuts are determined — at the present time is $24.97 per hundred pounds ; last year it was $24.70, not withstanding the fact that hogs are 3^ cents a pound higher. September pork was $44 a hundred in both years. Cash extras, which is also a staple product, were $27.25 in 1919, as against $24.87 a year ago. Cash bellies, another staple of which there is large con- sumption, were $28.50 this year, as against $26 per hundred last year. Cash fat backs were $28 per 100 pounds this year, against $23.25 a year ago. September lard was $29.90 this year, against $26.82 last year. Pickled ham. A^■hich is the raw material for smoked hams, was ?32.50, against $27.25. Picnic hams were $22.75, against $21.25. Pickled breakfast bacon, which is the raw material for smoked bacon, was $30 this year, against $36 a year ago. Pork loins were $33.30, against $28.43 a year ago. That comparison really means more than the figures suggest, for the reason that in 1918 the Food Administration established maxi- mum prices as of May 1 ; and on May 1 we always have the lowest provision prices in the history of the year. I also have some interesting data here upon the compartive cost of the Armour hogs for the last six years : 406 COLD-STOBAGE LEGISLATION. In the month of July, 1919, the price was $21.78 per 100 pounds; in July, 1918, it was $17.41; July, 1917, $14.92; July, 1916, $9.62; July, 1915, $7.07; July, 1914, $8.53. I have the figures for May and June in those years, which I can read if you wish me to do so ; they show about the same comparison. Is it the wish of the committee that I shall continue and read the May and June prices on purchases of hogs, or shall I just enter them in the record ? Mr. McLaughlin of Michigan. You can put all of that statement in the record. Mr. Waddell. I will put in the entire statement from which I have been quoting. (The statement referred to is as follows :) Statement. 191S 1919 Receipts hogs, 10 principal markets, Nov. 18, 1918, to July 31, 1919 number. . Armour Mil Nov. 18, 1918, to July SI, 1919 {do.'.'.'. Armour stocks meats do — Less sales do — Net....; do.... Total meats (6 leading points) do Armour freezer stocks meats do — Armour exports, meats and lard (years ending Aug. 1) do Armour purchases hogs drove, average cost Aug. 14 do — September ribs September pork Cash extras Cash bellies Cash fat backs September lard S. P. hams, 14 to 16 poimds S. P. picnic hams S. P. breakfast bacon Pork loins, average price 27,702,000 5,041,000 1,150,000,000 121,000,000 383,000,000 44,700,000 340,000,000 Slg.37 24.70 44.00 24.87 26.00 23.25 26.82 27.25 21.25 36.00 28.43 '31,382,000 '6,004,000 = 1,292,000,000 139,000,000 21,000,000 118,000,000 384,000,000 46,000,000 420,000,000 $21.87 24.97 44.00 27.25 28.50 28.00 29.90 32.60 22.75 30.00 1 Increase, 14 per cent. ' Increase, 19 per cent. ' Increase, 12i per cent. During 1918 maximum prices were established by the Food Administration. Armour purchases of hogs. July. June. May. 1919 $21.78 17.41 14.92 9.62 7.07 8.63 $20.25 16.41 15.32 9.47 7.47 8.12 $20.81 1918 17.19 1917 15.60 1916 9.66 1915 7.47 1914 8.16 Hog slaughtering (16 markets) since Marcli 1: 1918 1919 13, 14, 609,000 004,000 Hog population in the United States (Jan. 1, 1919, (Toveinnieut report) 1919. 1918. 1917. 1916. 1915. 1914. 75, 71, 67, 67, 64, 58, Armour freezer capacity, pounds 117, (Average time, 6 to 7 months; maximum, 12 months.) 587, 000 374, 000 503,000 766,000 618,000 933, 000 000,000 COLD-STORAGE LEGISLATIOlir. 407 _ Mr. Waddell. The hog slaughtering at the IG principal markets m the United States since March 1, as ofScially reported by the Price Current Grain Reporter, which is the official organ of the provision trade, was 14,004,000 hogs this year, since March 1 and up to Auguyt 1, as against 13,609,000 last year. The hog population in the United States was as follows : As given by the Government report, in 1919, was 75,587,000 ■Mr. TiNCHER (interposing). I think we have that. I think the Government report was put in by the Bureau of Markets, as com- pared with that of other nations. Mr. Waddell. Yes. In 1919, it was estimated by the Government report, but in 1918 we have the actual figures, and they were 71,- 374,000 ; in 1917 the hog population was 67,503,000 : in 1916, 67,766,- 000; in 1915, 64,618,000, and in 1914, 58,933,000. Mr. McLaugiilix of Michigan. Does your company accept the' census made by the Government, or do you or some similar com- pany have ways of getting your own information and making your own estimates? Mr. Waddell. We have; but we do not consider them as being as accurate as the Government report. We do not recognize tho Government report as being exactly accurate, but we think they have broader channels of information than we have, and we accept that as a guide to our calculations in our business. Mr. McLattgiilin of Michigan. Well, can you tell us briefly what your method of taking the census is ? Mr. Waddell. Well, we do not take a census; but you, of course, understand that we have representatives all over the United States, and at certain periods of the year we ask our representative men in those districts to canvass the situation and tell us what the condi- tions are, as to the number of hogs on farms, the number of sows being bred back, the crop of pigs, the health of the swine, etc. Then we boil that down, and arrive at a conclusion as to the percentage of increase or decrease as against previous years. Ours is more general ; it is not as specific in numbers as the Government report. The total freezer capacity at all Armour plants at the present time — I include in this a new freezer building which we are erect- ing at Chicago, which is not yet completed and which contains about a million cubic feet. Including that, our total freezer capacity is about 4,700,000 cubic feet. Mr. McLaughlin of Michigan. At how many places in the coun- try has your company refrigerating plants ? Mr. Waddell. We have 15 different plants. Mr. VoiGT. Have you any statistics which show the amount of meat and meat products in cold storage over a period of years? Mr. Waddell. Of our own stocks, do you mean, or general stocks? Mr. VoiGT. Well, general stocks. Mr. Waddell. I have not. I think the Bureau of Markets, how- ever, has compiled all of that information; it is on record in the Department of Agriculture. Mr. Anderson. They only go back four years. Mr. Waddell. Yes; they only go back four years in their reports. Mr. Waddell. We have nothing beyond that, except our own stocks. 408 COLD-STOKAGE LEGISLATION. Mr. VoiGT. Have you statistics for your own company with you? Mr. Waddell. I have not got them with me; no, sir — not back to that period of time. I have them only for this and last year- — 45,000,- 000 this year, as against 44,700,000 last year. Mr. VoiGT. Well, can you without trouble furnish the committee with your own figures for ten years ? Mr. Waddell. I do not know that I can go back that far in our records : but I will go back as far as we have them available. I think possibly I can get that for you. Mr. VoiGT. Can you not send to Chicago for that information ? Mr. Waddell. I will liave to wire for it, if you want it. Mr. VoiGT. I think it will help the committee a great deal to get your own figures on that point. Mr. "\A'AnnELL. I think I can have them ready for you in the morning. Ml'. Anderson. You stated tliat the total Armour freezer capacity was 4,700,000 cubic feet? Mr. Waddell. That is including a new freezer, which is now be- ing erected in Chicago. Mr. Anderson. What is your total storage capacity? Mr. Waddell. I have not the figures on that. That is practically our storage capacity, as the balance of our refrigerating capacity is processing capacity; that is where we cure our meets for immediate demands. Mr. Anderson. Well, that includes cooling refrigerator space, does it not? Mr. Waddell. This statement includes freezer space, and anything under 32 degrees. Mr. Anderson. Well, those figures, 4,700,000 cubic feet, do not in- clude cooler space, do thej' ? Mr. Waddell. No, sir. Mr. Anderson. Nor does that include space in the branch houses? Mr. Waddell." Xo, sir; that does not include the branch-house space, because we practically store nothing at branch houses. Noth- ing is shipped except for immediate demand. Mr. Anderson. When you say "immediate demand," how large a stock do you carry in branch houses for that? How many day's supply ? Mr. Waddell. We aim to keep in our branch houses a week's sup- ply. Our total stock of meats at branch houses averages about 10,000,000 pounds of all sorts of pork meats. We have in the neigh- borhood of 400 branch houses in this country. Mr. Anderson. Can you furnish the committee a statement show- ing, in addition to your freezing space, your total storage capacity? That is cooler space, and branch-house space? Mi-. Waddell. I can get that for you. if desired. That will take a little longer; but I can get that for you, if you wish. The Chairman. I think it is very important that we have it. i understand that is in addition to the department reports. Mr. Waddell. Our freezing space in branch houses is negligible, because we do not encourage our branch houses to carry stuff; we are always urging them to take care of the new product. You, of course, recognize that we buy all the live stock — ^the packers — in COLD-STORAGE LEGISLATION. 409 the yards, and we have a continuous flow of pork meats. So that we constantly urge our branch houses to market their product promptly to take care of the new supply — to make room for the new supply. The Chairman. The committee is trying to get at the total supply in cold storage. Do I understand you correctly to say that what is in the coolers and in the branch houses is not included in the report made to the Department of Agriculture ? Mr. Waddell. What is in the coolers is simply there in preparation for processing and for going into freezers. The coolers are re- ceptacles in which we place the carcasses to get the animal heat out of them. The Chairman. I think I understand that, but what we want to get at is the total supply on hand. Mr. Waddell. Including the cooler supply ? The Chairman. Yes; including everything. Mr. Waddell. That is not regarded'as storage at all. The Chairman. We are also interested in knowing the supply of meatstuffs. If that information can be given, I think it will be of value. Mr. Waddell. I have given you the figures as to total meats in storage of all kinds — 384,000,000 pounds this year as against 383,- 000,000 last year, and the only addition to that would be a 48-hour supply or two days' killing. The Chairman. You will supply the information? Mr. Waddell. Yes; with pleasure. Mr. McLaughlin of Michigan. How long a time will elapse be- tween the killing and the putting of the carcass in whatever form you put it in cold storage ? Mr. Waddell. The hogs are purchased to-day, killed to-morrow, and then we put them in the chill room for 48 hours to get the animal heat out of them. The next day they go to the cutting floor and are distributed. Of course you understand that we do not sell hogs in I'arcass form? Mr. McLaughlin of Michigan. Yes. Mr. Waddell. They go to the cutting floors the next day, and there they are cut into the different cuts, sides, hams, etc., and are distributed to the different departments. In other words, to answer your question, I would say that four to five days after they are killed they are in resting places — in cure or in the freezer if they are a surplus. Mr. McLaughlin of Michigan. Then the pork that you are going to absorb or treat, what do you do with that ? What are the processes through which it goes ? Mr. Waddell. The rougher cuts we very rarely put into the freezer; I refer to sides and bellies and backs and products of that kind ; they go direct to our dry salt cellar, where they are salted and put in process of curing at a temperature of anywhere around 35° to 40°. The product which we convert into fresh-pork cuts, such as pork loin and butts and fresh shoulders — ^the surplus of that goes into the quick freezer, where it is frozen quickly, and then into what we le; )T,- iv, a general fi-eezer. with a temperature of anywhere from 10° 410 COLD-STOEAGE LEGISLATION. or 12° to 16°, where it is held until necessity compels us to draw upon it. Mr. McLaughlin of Michigan. Well, you do not treat this meat — you do not put it down from the cold storage; you take it fresh and treat it, do you not? Mr. Waddbll. The frozen product? We thaw that; then, as we need them cured for the requirements of our trade, they go to the cur- ing cellar, where they go through the process of curing, salting, and pickling. Does that answer your question ? Mr. McLattghlin of Michigan. Yes. Mr. Hutchinson. Well, you do not class that as cold storage, do you? Mr. Waddell. No; we call that curing space. Mr. Hutchinson. A curing space ; there is no report made to the Government of what is in there, is there ? Mr. Waddell. As I said, there are no reports made to the Gov- ernment, but there are reports to the board of trade for each month, officially subscribed to. Mr. Hutchinson. That is what the committee is after — getting some report to the Government. Mr. Waddell. There would be no objection to furnishing that. Mr. Hutchinson. Well, how about the amount of stocks? Have you any idea of the amount of stocks you carry in those curing rooms, or in the process of manufacture? Mr. Waddell. At the present timfe our total net stocks are 118,- 000,000 pounds ; we have 45,000,000 pounds in the freezers ; the bal- ance of that, 73,000,000 pounds, would practically be in curing rooms. Mr. Hutchinson. So that you practically have, as a general propo- sition, as much in curing rooms as in cold storage, do you not? Mr. Waddell. That would depend upon the conditions ; at the time of an excessive demand we would have more in the curing rooms. Mr. Hutchinson. Well, do you not as a general rule? Mr. Waddell. No, we do not; we endeavor to get rid of our prod- uct from season to season, and for that reason we advocate the 12- month storage period, or season-to-season period, and for commer- cial as well as for economic reasons we prefer hot to carry product in the freezer. It is expensive; there is the interest, and, of course, in our business we use a great deal of money; there is also the in- surance and overhead expenses in connection with freezer stock, which we endeavor to avoid. We keep no separate results on our freezer stock; they are simply a general receptacle for surplus product. Mr. Hutchinson. It would not cause any serious loss to your com- pany to keep a record of that, would it? Mr. Waddell. No ; that would not be impossible at all. Mr. Hutchinson. It would not be impossible ? Mr. Waddell. It would be no hardship ; no, sir. Mr. Anderson. Do Armour & Co. engage in public storage? Mr. Waddell. We do a public warehouse business, principally for board of trade operations. It is a registered warehouse, registered on the board of trade as being one that a product can go into — any- body's product ; that anyone who takes delivery of a product on the board of trade has a call on those storage warehouses; warehouse COLD-STORAGE LEGISLATION. 411 receipts are issued and those are negotiable in the bank for borrow- ing purposes. Mr. Anderson. Your cooler space and processing space, as com- pared with your freezer space, is very much larger, is it not ? Mr. Waddell. They are pretty near even, with our new freezer which is about to be completed. We have 4,700,000 cubic feet of freezer space. I see they have been referring to cubic feet. I had these reduced to pounds. Our total stock of meat at the present time is 118,000,000 pounds; our peak load, our peak stocks, have been about 152,000,000. Our freezer stock — I can give you this in pounds — our freezer capacity, including our new freezer, is 117,000,000 pounds, so, in processing and cooling space, we have the difference between 117,000,000 and 152,000,000 pounds about 35,000,000 more in process than in freezer space. Mr. Anderson. In the aggregate, have you any idea how your branch-house space compares with your freezer space, cooling space, and process space. 3Ir. Waddell. Our branch houses have an average stock of meats of all kinds of 10,000,000 pounds in the 400 houses we have distrib- uted throughout the United States. Mr. Anderson. So your cooler space there would not be more than 10 per cent of your regular space ? Mr. Waddell. That really is not cold-storage space. For instance, when we ship our process goods to branch houses, hams and bacons, they do not require cooler space. They go into regular storage, not cooler storage. Mr. Anderson. In order that we may get this whole question clear, I want to get all kinds of refrigerator space you use. First, the chilling space ? Mr. Waddell. The chilling space we utilize to remove the animal heat from the carcass. Mr. Anderson. You are not able to say now how large that space is ? Mr. Waddell. I have not that offhand. Mr. Anderson. You have space for processing pork products? Mr. Waddell. Yes, sir. Mr. Andeeson. Are you able to say anything about how much that is? Mr. Waddell. In cubic feet or in pounds? Mr. Anderson. Yes. Mr. Waddell. It is about 135,000,000 pounds, and nominally it is about 30 pounds to the cubic foot. That is, between four and four and a half million cubic feet. Mr. Anderson. In addition to that you have your regular freezer space ? Mr. Waddell. Eegular freezer space in addition ; yes, sir. Mr. Anderson. Have you any additional storage space? Mr. Waddell. No. This includes all of the normal storage space. Mr. Anderson. I do not mean limited to freezer space. I want to know what space you have, storage space, which would be included in the definition of this bill, the space which is kept at a lower tem- perature than 45° Fahrenheit? 137690—19 21 412 COLD-STOEAGE LEGISLATION. Mr. Waddell. I include everything in this excepting our branch houses and our chill rooms. In chill rooms, as I say, they are only temporarily holding space for removing the animal heat from car- casses. "We can not carry anything in chill rooms; we are con- tinually moving in and out each day. Mr. Anderson. The committee is interested in knowing how much space you have, whether chill-room space or some other space. Mr. Waddell. I have given you everything here excepting the chill-room space and the branch houses. Mr. Anderson. You will produce those figures ? Mr. Waddell. Yes, sir. Mr. Anderson. Your hides — are they stored in chill space, cold storage space, storage processing? Mr. Waddell. The hides? Mr. Anderson. Yes. Mr. Waddell. I will have to refer you to Mr. Munnecke, of the beef department, to answer that question. I am a pork man, and have not that information. Mr. Anderson. In this statement which you have submitted, to which you have made reference here in this statement, you show Armour's stocks of meats in 1918 of 121,000,000 pounds, and similar stocks in 1919 of 139,000,000 pounds. Then you have an item here less than 21,000,000 pounds. Mr. Waddell. We^ have export sales in our books for which we can not obtain ship space at the present time. Mr. Anderson. That 21.000,000 pounds, then, represents $21,000,- 000, or whatever it is — ^that figure of 21,000,000 represents stocks which are held for foreign demand ? Mr. Waddell. Those stocks are already sold for foreign demand. It is for export. Included in that there is between three and four million pounds of Government meats sold to the United States Army. Mr. Anderson. Now, then, is any additional amount of this stock, 139,000,000 pounds, held by you in future contracts for foreign de- livery ? Mr. Waddell. For foreign account, not beyond 30 days; we do not sell beyond 30 days. Mr. Anderson. Your foreign contracts you hold to 30 days' de- livery ? Mr. Waddell. Yes, sir. Mr. Anderson. Would you be willing to state, if you knew, what proportion of the amount of stock which you have on hand is now subject to foreign delivery upon 30 days' contracts? Mr. Waddell. Offhanded 1 should say about 30,000,000 pounds of that 118,000,000 pounds is strictly export stocks, cuts, JEnglish meats. The balance of the cuts, for central Europe, are practically the same as cuts taken in this country — domestic cuts. Mr. Anderson. What we want to get at is, does that 30,000,000 pounds which you state is export cuts represent the total additional amount over the 21,000,000 which is held in anticipation of foreign demand ? Mr. Waddell. That is all in process of cure and is included ; a por- tion of this is included in this 21,000,000 pounds as sold. Our total stock of the English meats at the present time is 30,000,000 pounds, COLD-STOKAGE LEGISLATION. 413 and just how much of that 21,000,000 pounds is sold for England I do not know at the present time. Mr. Anderson. In this statement which you have submitted you have a tabulation of prices of different cuts of pork. Mr. Waddell. Beginning with the September ribs, you refer to. That is board of trade quotation ; is that what you refer to ? Mr. Anderson. Yes. Mr. Waddeix. That was the board of trade price on September ribs, at which ribs for September delivery could be sold on the board of trade on August 14. Mr. Anderson. Of course, a table of that sort is just like every other table of general averages; it makes a difference how it is got up. Mr. Waddell. This is actual market in effect, actual transactions. That was the closing price when the session of the boarcl of trade closed on August- 14. The last sale on September ribs was 24.70. There may have been a fluctuation during the session; the price might have been up to 25 cents and might have been down to 20 cents within the fluctuation. Mr. Anderson. That is it exactly, and, of course, figures do not mean a great deal unless they are quoted with amounts you sold at the various prices. Mr. Waddell. The closing prices on September ribs on August 14 established the basis upon which we would determine our cash prices. Our prices fluctuate from day to day, based on the closing prices of the board of trade each day. Mr. Anderson. Do I understand you to say that prices which you make on pork products are based upon the closing price for those products Qie preceding day on the board of trade ? Mr. Waddell. On the same day. Mr. Anderson. How long a period elapses between the time you buy hogs and the time these nogs are put on the market? Mr. Waddell. We do not sell carcass hogs, you understand. Mr.. Anderson. I understand that. Mr. Waddell. As I say, a portion of those hogs go into cure from 40 to 80 days. The fresh pork goes out within 72 to 96 hours, pork loins, butts, and products of that character. Mr. Anderson. If that is true, then a comparison of the price of pork to-day with the price of the carcass — on that carcass of hog cut up to-day — does not constitute an entirely fair comparison? Mr. Waddell. I do not follow you on that. Mr. Anderson. The hogs you buy to-day you do not sell to-day? Mr. Waddell. No. Mr. Anderson. You may sell them on a higher or lower market. Mr. Waddell. That is right. Mr. Anderson. So when you compare the price of hogs to-day with the price of pork products to-day you do not get a fair com- parison. Mr. Waddell. From the packing-house standpoint, we figure upon replacement values. There is more or less speculation. We do not loiow when we put these hogs into process what we are going to obtain ; the price may be higher or lower than that. Mr. Anderson. I have seen some figures with respect to cattle which undertake to show exactly how much is received for the car- 414 GOLD-STOBAGE LEGISLATION. cass of the animal in comparison with the amount which is paid for the live animal. Have any such figures been compiled with refer- ence to hogs? Mr. Waddell. No; they are not comparable. The cattle are sold in carcass form; we aim to clean up our cattle every Saturday in our branch houses. They are sold strictly as a fresh-meat proposi- tion. The hog is a manufactured proposition; it goes into curing processes and as a commercial product is not available in from 40 to 80 days; a large portion of it is cured, processed, smoked. You can not make a comparison on a carcass against a manufactured product. A portion of the hog cut to-day, the fresh portion of it, is sold within 72 to 96 hours. The balance of the hog goes into the cellar for cure or goes into the freezer. Mr. Anderson. I am not trying to argue with you about the proposition at all. Mr. Waddeix. I am just trying to make that clear to you. Mr. Anderson. One naturally inquires of himself, at least, why, if it is feasible to make a demonstration of that sort with reference to cattle, it is not made with reference to hogs, or sheep, and calves ? That gives rise to the suspicion that the reason why the demonstra- tion is made on cattle is because a better demonstration can be made there than could be made on any other class of live-stock product. Mr. Waddell. There is not the uncertainty upon the comparison of cattle for the reason, as I say, that it is marketed promptly. It is marketed in carcass form and it is aimed to keep the cattle cleaned up each week end. Cattle don't go into cure like pork products where it takes a certain length of time to cure, from 40 to 80 days, according to the character of the product. Mr. Anderson. Of course, that .is true of a good many of the products of cattle. Many of them are not sold for a longer period of time after the carcass itself is sold, but the demonstration is made on the basis of the market price of thf by-products on a given day. It ought not to be any more difficult, 1 think, to make the same demon- stration with reference to hog products, particularly as I understand that the by-products of the hog are fewer in number and perhaps in importance than those of cattle. Mr. Waddel. The by-products of the hog are sold as a commodity immediately the same as the fresh meat. The by-products of the cattle — we have the hide which must be cured. The market on hides is estimated ; whatever that hide will produce ; the estimate is credited back to the beef carcass and reduces the price of that beef carcass. Mr. Anderson. Is it not just as difficult to make that estimate or get that market price with reference to the hide of cows or the heart or lung or something else as it would be to get the same market price or make the same estimate with reference to the by-products of the hog? Mr. Waddell. No. That would be true if we were selling hogs in the carcass form immediately the sariie as we are cattle. As I said, the hog is not sold in carcass form. Mr. Anderson. Well, you sell the ribs and loins and backs and ether parts of the hog at the market price for each portion of that. Mr. Waddell. But we do not sell that entire hog in one transac- tion. We may sell loins and ribs to-day and may carry the hams and bellies and shoulders for six months before there is a demand for it. COLD-STORAGE LEGISLATION. 415 Mr. Anderson. That is just as true as to hides, is it not? Mr. Waddell. The hide is the speculative part of the beef. The whole profit on hogs is speculative. Mr. Anderson. What I am trying to get at, to put it plainly, is to why is the emphasis made upon the supposedly small cost of handling a beef, while nothing is said with reference to the cost of handling pork, or calves, or sheep ? Is it because of the larger profit in hand- ling hogs, and sheep would not make as good a showing? Mr. Waddeix. The profit on handling hogs, as I say, is more or less speculative. The product from the hog is put into cellars and cured to be sold in from 40 to 60 days, or six months or more, and we do not know when we are buying that hog whether we are going to avail the price, a market price that is lower, or a higher price for it. That is the speculative end of the hog business, unfortunately. We do not know when we buy that hog whether we are going to sell it at a profit or a loss. Mr. Hutchinson. Have you a cost system in your department ? Mr. Waddell. Yes, sir ; estimated cost, estimated market. Mr. Hutchinson. Then you can tell, can you not? Mr. Waddell. We have to estimate costs, but I say when we buy the hog at what we know the market is to-day on hams, the green ham — that ham — does not go into consumption immediately. It goes into the freezer in time of surplus or it goes to the cellar for cure and goes out in 60 days to 80 days. Mr. Hutchinson. That is a speculative part, but can you tell the cost of every hog in whatever department. Mr. Waddell. We could never realize on the products of that hog immediately. Mr. Hutchinson. Eealizing has nothing to do with cost. You are talking about profit. I am talking about cost of the hog. He is asking you about cost. Mr. Waddell. I know about the cost of the hog. The cost of the hog you referred to ? Mr. Hutchinson. Yes. Mr. Waddell. That is established in the stockyards : The regular bid-and-asked price, the getting together of the buyer and seller. Mr. Hutchinson. You have a cost statement where you can tell what the hams cost you, what a liver cost you, and everything about that hog, have you not ? Mr. Waddell. No, sir. There is no one in the business who can give you accurate cost of any one particular cut of the hog. Mr. Hui'CHiNsoN. You have a cost system. Mr. Waddell. The estimated cost system ; it is estimated. Mr. Hutchinson. It is a guess, is it ? Mr. Waddell. Yes, sir. The Chairman. Will you place in the record the estimated cost and the selling price of the finished product. First state the present market price of the cattle to-day. Mr. Waddell. I am the hog man. The Chairman. Are you handling cattle?" •, i n Mr. Waddell. No, sir ; we have our cattle man, who will be heard later. 416 COIiD-STOBAGE LEGISLATION. The Chairman. Will it be possible to prepare a statement giving the best market price and the price of the finished product? For instance, on cattle Mr. Waddeij.. I am a hog man, the pork man. That is the beef end of it. Our beef man will supply that information. The Chairman. Can you supply the information as to hogs? Mr. Waddell. I have already given that on August 14. Is that not late enough ? The Chairman. I will look it over. I understand you will fur- nish a statement giving the total supply, total stock, including what is in chilling space, dry salt cellar, cooling cellar, branch houses, refrigerator cars, and in transit. Mr. Waddell. 1 do not think I can give you what is in transit. We have no record of what cars have arrived in our 400 houses. The Chairman. You can give the total stock. Mr. Waddell. I think I can give you, Mr. Chairman, the infor- mation that will satisfy you as to chill-room space and our total stocks of pork meats in branch houses, our total stocks of curing space separately from freezer space. The Chairman. Would that include the total stock ? Mr. Waddell. All of our stock? The Chairman. All meat products? Mr. Waddell. Yes, sir. Mr. Lee. What percentage is sold as fresh? Mr. Waddell. You mean pork? Mr. Lee. I mean pork. Mr. Waddell. Pork — that depends largely on the demand. Mr. Lee. I mean the average. Mr. Waddell. 1 should say somewhere between 5 and 10 per cent; that is rough, but within that range. Mr. Lee. Sold as fresh? Mr. Waddell. Fresh ; yes, sir. Mr. Lee. That is not as much as I expected. Mr. Waddell. Ten per cent would be the maximum; 5 per cent would be the average. Mr. Lee. You gave the price of hogs a year ago; what did that average, $18? Mr. Waddell. $17.41 in the month of July. Mr. Lee. This year and the year back — how did the prices com- pare? Mr. Waddell. On August 14 the present price of hogs was $21.87; last year it was $18.27. Mr. Lee. They are higher this year ? Mr. Waddell. $3.60 a hundred higher. Mr. Lee. It is really higher now than when they were brought under Government regulation ? Mr. Waddell. ' Yes, sir. We have a record in history on hog prices this year of the highest price paid this year in the Chicago stock- yards, which was $23.75. The Chairman. How do you account for that? Did Government regulation depress or enhance the price ? Mr. Waddell. There are a great many contributing influences to the prices, Mr. Chairman. During the war there were 74, as I recall GOLD-STOEAGE LEGISLATION. 417 it, allotment packers, being given business by the Food Administra- tion, and some of them were comparatively very small in prewar times. Of course, during the war they were at maximum capacity and they have endeavored since the armistice was signed to main- tain it practically; it is the ambition of all good business men to maintain a tonnage equal to what they had of the previous year, the past two years during war times, and as a consequence there has not been enough hogs to satisfy them with the tremendous volume of business, generally increased demand, export, and otherwise. In addition to that, there is also a great number of buyers in the yards outside of the packers, promiscuous buyers. We have a condition in Chicago where we have at least 200 of what is known as " scalpers." When the receipts are light they have the same privileges as to the yardage, commission, stockyard facilities as the packers, and when the receipts are light they know about the number of hogs that the packers must have, and the packers must kill hogs all the time to maintain their labor organizations, keep the organization together, and when they think that the supply is not adequate, these speculators, as we term them, buy these hogs immediately as they come off the cars, knowing that after they are sold that the packers must come to them to get enough hogs to keep their plants operating. That has been a very great factor in the advance of hogs in the past two months particularly. The Chairman. Have those scalpers as speculators any connection with the packers ? Mr. Waddell. We call them the scalpers. The Chairman. Have they any connection? Mr. Waddell. None. The Chairman. They are absolutely independent and are not op- erating with the packers' capital ? Mr. Waddell. I guess 80 per cent of them have no capital, Mr. Chairman. The Chairman. What I am more interested in is to know what effect Government regulation had upon the fixing of the price of hogs. Did the farmer receive a fair price for his hogs under Gov- ernment regulation, or did he receive less or more than now? Mr. Waddell. I think the best answer to that is the increase in the hog population for the past four years, since the war broke out. The Chairman. As I understand it, the ratio is 13 to 1 ; 13 bushels of corn making 100 pounds of hog. The minimum price was $15.50 a hundred ? Mr. Waddell. That was the original price; yes, sir. The Chairman. Can you give the market price of corn at that time ? Mr. Waddell. I do not recall the price of corn at that time. The Chairman. I looked up the price in the Labor Eeview the other day; I found corn was worth $2.05 at that time. If corn was worth $2.05, the price of 13 bushels of corn would have been $26.65. Mr. Waddell. That $2 for corn— that was not for feeding corn? The Chairman. Erobably contract corn. Mr. Anderson. Contract grades. Mr. Waddell. That is probably mill corn. Mr. Anderson. That would bring the other corn up to contract corn, showing $2 as a conservative figure. The feeding price of 418 COLD-STOKAGE LEGISLATION. corn, if I recall, was about $2.13 at the time the 13 to 1 ratio was established. That is my impression. The Chaieman. I distinctly recall that corn sold at that time at $2 a bushel and higher. Mr. Waddell. That was the Texas price, where they had drought. The Chairman. I am referring to my own State, Iowa. I re- member reading of a man who was buying corn at that price at Cedar Eapids. Mr. Waddeix. Was that the year Iowa had so much soft corn and very little contract corn offered. That was your soft-corn year, when it was a practical failure there as far as contract com was concerned. The Chairman. At any rate the ratio was 13 to 1. Mr. Waddeul. That was established, but we never accepted that as 1 correct basis ; that was the ratio adopted at that time. The Chairman. That was the basis used for fixing the pi-ice? Mr. Waodell. Yes, sir. The Chairman. The price of hogs was fixed at $15.50 a hundred pounds when corn sufficient to make 100 pounds of hogs was worth $26.65. A discrepancy of $11.65. That is the point I wish to make. Mr. Waddell. Yes, sir. Was that 1917 you are referring to, the <;orn price? Mr. Lee. What crop were you referring to ? The Chairman. I have it here. I will check it up. Mr. Waddell. That is 1917. It only takes up to 1916 in the book. As I recall it, it was when Iowa had a crop failure, soft corn, the amount of contract corn was very small. Is that correct, Mr. Chair- man, in Iowa? The Chairman. Yes; very small. The crop of corn was light; much lighter than reported by the Department of Agriculture. Mr. Waddell. I think that 13 to 1 ratio of that hog price was arrived at by the average of 10 months' cash corn for 10 months' production taking the price in 1917. The Chairman. The regulation does not state. Mr. Waddell. I am quite sure that was the way it was arrived at. Mr. Lee. What was that price ? Mr. Waddell. I think $1.40. Mr. Anderson. I think we can get at this thing very clearly. The figures you give here in your statement give the price for August 14, 1918, of $18.27 a hundred? Mr. Waddell. Yes, sir. Mr. Anderson. At that time contract corn was selling at $1.70 a bushel. On the ratio of 13 bushels of corn to 100 pounds of hog. hogs should have been worth $22.10 a hundred. Mr. Waddell. That is the average price of the Armour droves. Congressman. That is not the average price of the hogs in the yards. Just now there is a very great disparity in the quality of the hogs. We get a good many old sows of the packing grade. Mr. Anderson. This is a year ago, August, 1918 ? Mr. Waddell. At 1918 that 13 to 1 ratio was disregarded. I happened to be chairman of the pacliers' committee on pork prod- ucts during the period of the war — the Conservation Committee — and you will recall that after the 15| cent minimum hog prices there was a price established of $18.50. COLD-STORAGE LEGISLATION. 419 Mr. Anderson. $17.50; was it not? Mr. Waddell. It was first $18.50; the packers could not accept that; considered it not workable. That price of $18.50 was deter- mined by the Food Administration and the producers. The packers were not in the conference at the time that price was established. When the packers refused to accept that $18.50 price because it was not workable, we were called to Washington and had our first meet- ing with the Food Administration, the growers, the packers, and we then arrived at the compromise price of 18 cents for good hogs. I am giving you this history, probably old to most of you. That 18 cents average price for good hogs was not satisfactory. Some packers had different ideas as to what were good hogs, and I thinli the life of that 18-cent price was about 30 days, when we were again called to Washington. It was almost impossible to satisfy the pro- ducers on the 18-cent price for good hogs for the reason some hogs they considered had sold around 16 cents, and in conjunction with the producers, the packers, and the Food Administration we arrived arbitrarily at 17-| cents minimum for the average droves in the yards at Chicago, and in two days' time we advanced, practically, the price of those poor hogs 2 cents a pound and the 17^ cents average price was maintained throughout the balance of the war iip until the Food Administration ceased to function, which was March 5. That 13 to 1 ratio was disregarded entirely with the 17^ cents. Mr. Anderson. Were the growers represented in that meeting? Mr. Waddell. Yes, sir; they were. Mr. Anderson. They agreed to it? Mr. Waddell. They agreed to it. Mr. Anderson. Can you give the approximate date when that $17.50 price was arrived at? Mr. Waddell. If I recall correctly, that was in November, 1917. Mr. Riddick. That was the minimum price ? Mr. Waddell. Minimum average price for the price of hogs in Chicago. Mr. Anderson. In November, 1917. Mr. Waddell. 1918. That was the last period of the war. Mr. Hutchinson. I will ask you a question there. Some time ago you made a statement that you had a large amount of roughage, livers, etc. Mr. Waddell. That is all cuts. Mr. Hutchinson. I know it does. How does it affect the hams and bacons in carrying this large amount ? Mr. Waddell. What effect that has on the prices at the present time? None whatever. That goes into a different class of trade than hams and bacons, in normal times. It is mostly the foreign ele- ment who buy offal products, but they are earning so much money now they purchase the better stuff. Mr. Hutchinson. That does not affect great quantities at all. Mr. Waddell. No ; not in the pork products. The offal products in pork are a small percentage as compared with beef. Mr. Hutchinson. Do you make tankage in Chicago? Mr. Waddell. Tankage from hogs, blood, and bone. Mr. Hutchinson. That has been reduced to about half, has it, lately? 420 COLD-STOBAGB lEGISIATlON. Mr. Waddell. The price on tankage ? Of course it is pretty diffi- cult to tell what the price is on tankage now. I have been trying to get a market price from our fertilizer price, and they tell me there is no market. Mr. Hutchinson. Does that have any effect on the price of meat? Mr. Waddell. We give the carcass price of the hogs ; we give the carcass of the hog, and credit all of the offal estimated at what we think it is worth. Mr. Hutchinson. At one time the minimum tankage was $8 a unit on ammonia. Mr. Waddell. Now it is about $3.50. Mr. Hutchinson. I want to get at your cost system. When you kill hogs, do you credit $8 ammonia — and selling at $3.50, does that affect your profit ? Mr. Waddell. That is where we did not estimate it correctly. That is where the speculative end of the hog comes. Mr. Hutchinson. It is all speculative ? Mr. Waddell. Yes, sir. Mr. Anderson. To get back to this cold-storage business, are pickled pork and freezer pork ever held in storage over 12 months? Mr. Waddell. Very rarely. It would be really poor merchandiz- ing for us to hold it. I will not say it is not held at times, but that is very exceptional. We endeavor not to hold our product 12 months. We do not want to hold it 12 months. We do not want to hold it any length of time. It is the quick turnover with us. Our small profits demonstrate that fact. The interest charges on the product in storage enhances the prices very materially. We are tickled to death if we can sell our freezer stock before it goes into the freezer, as there is the interest and insurance charges. Mr. Anderson. I will let your statement about the small profits go, because-if we go. into that we will be here a long time. I was trying to get at the question solely whether or not pickled pork products were normally kept in cold storage longer periods than 12 months. Mr. Waddell. I could safely say — and you would have difficulty in combating it — no, to that. Mr. Anderson. How do you store bacon and ham ? Mr. Waddell. If we have sufficient hams in process of cure to take care of what we consider the demand of our trade, we throw the green hams — ^the fresh hams — into the freezer and freeze them. We do the same thing with bacons. We call them bellies. We put our bellies into the freezer for the same reason and then we take them out of the freezer as our curing stocks disappear. We do not freeze the smoked hams and smoked bacons. That is a matter of consump- tion. Mr. Anderson. So your quantity of bacons and hams you ship for sale to' the public is regulated by the amount of same material which you have in more or less uncured state in refrigerator space? Mr. Waddell. Yes, sir ; tht is correct. The Chairman. Can you suggest a flat time for keeping in freez- ers, including frozen meats ? Mr. Waddell. I would say, from season to season, 12 months would be the maximum, and for economic reasons it might be that an ex- tension would be desirable in the conservation of food or for some OOLD-STOEAGE LEGISLATION. 421 reasons we may not see at the time. I should think a reasonable bill making a maximum 12 months would be fair to everybody. The Chairman. Would that include chilling, freezing, and other processes ? Mr. Waddell., Yes; that is practicable. Twelve months from the date of the purchase of the live animal would cover all that and work no hardship for the packer and be fair to the producer and fair to the consumer. The Chairman. Would 10 months work a hardship? Mr. Waddell. I think that 10 months is too short. Yes, sir; I believe that you would get into difficulties, for there is very little reason for limiting the time two months. The Chairman. Your contention is the pure-food law takes care of meat deteriorating before that time ? Mr. Waddell. It does. You probably understand that the Bureau of Animal Industry practically takes care of quality. It inspects products into storage or into the packing house and again inspects them out. The Chairman. What have you to say about the Lodge bill which, I believe, proposed that cold-storage goods carried in inter- state commerce should be regarded as misbranded if not marked in a certain manner? Mr. Waddell. We see no objections to marking the date in and the date out ; in fact, we favor a workable bill on cold storage. We think it is an advantage ; we think it is a protection. The Chairman. Would you have any objection to the suggestion made in the bill referred to, the Lodge bill, that cold-storage goods be considered misbranded if not properly marked ? Mr. Waddell. No objection; no, sir. The Chairman. What have you to say in regard to authorizing the Secretary of Agriculture to inspect the plants, require the pro- ducing of books, and specify the method of keeping the books? Mr. Waddell. I see no objection to making reports at stated in- tervals. As I stated at the beginning of my talk this afternoon, our records are open and we welcome all investigation and are always glad to cooperate with the Federal authorities. The Chairman. And that the secretary might require a method of keeping books so that they might be easily checked up ? Mr. Waddell. Yes, if it is workable. We do not believe in records daily. That would be a hardship and would not accomplish any- thing; but I should say if records were to be turned in every three months, or every month, if necessary, that we would have no objec- tion to that. The Chairman. What I had in mind was to make it possible to «heck the books with the reports. Mr. Waddell. We would be very glad for his suggestions and work with him on them. The Chairman. That his representative might enter the plant to take samples at any time ? Mr. Waddell. If necessary. As I say, I think the Bureau of Animal Industry takes care of that. They inspect in and out. The Chairman. That is true of meat, but not of other products. Mr. Waddell. That is true of all the pork products. 422 COLD-STORA«E LEGISLATION. The Chairman. But not as to eggs, butter, and cheese. Mr. Waddell. I will ask you to let the matter rest for our butter and egg man, who will follow me later. The Chairman. Would you favor giving the Secretary authority to make and promulgate rules and regulations that lie deems wise in the matter ? Mr. WaddeIl. As far as the records are concerned, do you mean? The Chairman. Records, and it might probably also apply to the construction of the plant, as was done in the meat inspection. Mr. Waddell. We already do that as far as the Bureau of Animal Industry is concerned. The Chairman. You do as to meat, but I am discussing cold storage in general. Mr. Waddell. And as to sanitary conditions around the plant and as to placing our toilets and our sewers and cleansing the plant. That is already taken care of now. The Chairman. How about extending it to the cold-storagfe, plants the same as to the packing plants ? Mr. Waddell. Yes; it is practically so now. In interstate com- merce business it is under the Bureau of Animal Industry in that respect, as is true in all the packing houses, with all the storage houses which do an interstate business in animal products. The Chairman. Yes; but this also deals with other products — eggs, butter, and cheese. Mr. Waddell. I can not answer as to those. Mr. Hutchinson. You people are in favor of a uniform law? Mr. Waddell. Yes, sir. Mr. Hutchinson. Do you know how many States have a good cold-storage law ? Mr. Waddell. I think I gave them in that first paper. Mr. Hutchinson. There are two-thirds of the States of the Union have no law at all. Mr. Waddell. I think it is 14 States, which follow the uniform law very closely. Mr. Hutchinson. Fourteen out of 48. Mr. Riddick. You say that on August 14, 1919, the prices you paid for hogs on foot were $21.87? Mr. Waddell. Yes. Mr. Riddick. The price of your various cuts that you sell on that particular day are based on that paying price for hogs? Mr. Waddell. Not necessarily. Those prices are Board of Trade prices, $21.87. For hogs, our estimated costs, using estimated test costs, there was an estimated loss of practically $3 a head using the Board of Trade prices as our barometer. Mr. Riddick. Why was $21.87 the price of hogs that day — was it based on selling price, on the law of supply and demand? Mr. Waddell. Demand for hogs, light receipts of hogs, and a heavy demand. Mr. Riddick. That price varies from day to day ? Mr. Waddell. Yes, sir; it varies during sessions of the market from the time the market opens in the morning until it closes at 3 o'clock in the afternoon. Mr. Riddick. Is it a fact that a large part of the hog receipts arrived at a certain period of the year after corn is ripe ? COLD-STOEAGE LEGISLATION. 423 Mr. Waddell. During the winter months, around the 1st to 16th of October, and they continue until the latter part of March. Mr. EiDDicK. From October to March, that large supply of hogs makes the price a little less ? Mr. Waddeli.. It is supply and demand. Mr. EiDDiCK. Would that same supply and demand make pork cheaper for that period ? Mr. Waddell. Yes. Mr. Eii>riCK. During that period you butcher more hogs than you are able to sell from day to day ? Mr. Waddell. Sixty to seventy per cent of hogs are marketed in that period. Mr. Eiddick. Then during the poor season, when hogs come in slow, what season is that? Mr. Waddell. That is from the 1st of April until we get the new hog crop again from the 1st to the 15th of October. Mr. Eiddick. During that period the price of hogs is higher? Mr. Waddell. Naturally, the price of hogs is higher and the price of the product is higher. . Mr. Eiddick. Then you take care of the demand by taking the hogs out of storage? Mr. Waddell. Yes, sir. Mr. Eiddick. Is this a fact? The hogs that you buy from the farmer at the low price and put in storage, you sell at the high price during other seasons of the year? Mr. Waddell. We do not buy from the farmers. Our hogs are pur- chased at the stockyards. It might be well for me to explain that these hogs are accumulated by shippers who send to commission houses, and these commission houses, the selling agents of the shipper or fai'mer, and we go out and bid on these hogs — all the packers in Chicago, the eastern packers, and other buyers. They sell them at the highest bid. Mr. Eiddick. Indirectly, you buy them from the farmer? Mr. Waddell. The farm.er supplies them. The farmer and packer are closely affiliated. The farmer is our raw-material supply point and we are his distributor. Mr. Eiddick. Is it not a fact that the farmer sells the bulk of his hogs at the period of the year when the hog price on foot is lowest? Mr. Waddell. I think that is correct. Sixty to seventy per cent of the hog product is marketed during that period. Mr. Eiddick. And during that period you fill your cold-storage rooms ? Mr. Waddell. That is the period of plenty. Mr. Eiddick. And you sell from it when pork prices are highest? Mr. Waddell. Yes, sir. The Bureau of Markets has quite an in- teresting bulletin on that, which I will be glad to give you, showing that quite conclusively. Mr. McKiNLET. Eight in line with that, when you state the aver- age turnover of your profits on product handled, that covers the point Mr. Eiddick makes, does it not, that you might make 4 per cent on that turnover and 1 per cent on the turnover ? Mr. Waddell. That is correct. 424 COLD-STOEAGE LEGISLATION. ■ Mr. RiDDiCK. There was a suggestion in the bill here that the price paid should be branded as to cost as well as the date. That you think would not be practicable ? Mr. Waddell. I do not think that would be practicable. I would not consider that the price paid — it would be almost impossible to mark our pork products with the price paid, because any man in the packing business can take a carcass of pork and make any cut cost anything he chooses by raising the price of other cuts or depreciating the price and increasing the balance of the hog ; it would be reflected in that one particular cut. So you can see it would be impossible to arrive at any particular price on any particular primal cut of a hog. Mr. RiDDicK. You can look at a hog and figure what it will cut up and tell whether or not you lose money on any ? Mr. Waddei^l. If you go to the market at the time you buy the hog, yes. We call that our speculation and we do that. The Chairman. You buy direct from the commission man in the yards? Mr. WADDELii. Yes, sir. The Chairman. You assemble them ^t various stations in the country ? Mr. Waddell. We do not. The shippers do. Of course we havo no affiliation with shippers or drovers. You are referring to con- centrating points. We have no concentrating points. The Chairman. Other packers have. Mr. Waddell. I think probably they have, but we do not have. The Chairman. I understand they have several in my State. Mr. Waddell. I think there are concentrating points in Iowa. We have none. The Chairman. They buy direct from the farmer. Mr. Waddell. Yes, sir ; they buy direct, as I understand it. Mr. McKiNLET. The large packers are perfectly willing to have all this inspection and keep all these different kinds of books. How is it with the little packer* For instance, I just came from Illinois, from a little packer at Havana, 111., 4,500 people. He did nor, seem to like some of this stuff he was hearing. Is he going to be able to keep all those records and books that you big packers are? Mr. Waddell. I do not know what little packers are at Havana, but he probably has not a Government-inspected plant. It is not an interstate business if he does a local business. Mr. McKinlet. He is worrying about it. Mr. Waddell. I think the noninspected plant — the little packer — is more afraid of Government inspection, because it entails a terrific expense to keep the plants in the condition that the Bureau of Ani- mal Industry demands. Mr. Anderson. I think there is another reason. For instance, in my section of the country, up until recently, at least, the number of hogs retained on account of tuberculous lesions and things of that kind is high. Mr. Waddell. Yes, sir. Mr. Anderson. That very high percentage is entirely against the small packer who does business in the territory alone, while in the case of the large packer he gets the advantage of those localities in which the tubercular retentions are relatively small. So that the COLD-STORAGE LEGISLATION. 425 burden in that case falls more heavily upon the small packer who operates in the comparatively restricted territory, when the terri- tory in which he operates is one in which there is considerable tuber- culosis. Mr. Waddell. His condemnations consume his profits. Mr. Anderson. Yes. Mr. Waddell. I thinlt that is correct. That is one reason why the local packer does not want Government inspection. From our stand- point, we figure that is one of the reasons inspection should be ge7i- eral in all plants so that these diseased hogs and cattle should not be marketed in localities where they do not do interstate business. Mr. VoiGT. What does the scalper do with the hogs he can not sell to the packer? Mr. Waddell. He carries them over to the next day and eventually gets rid of them to the packer or to the shipper. There are a great many shippers out of the stockyards. Mr. VoiGT. There is a method of carrying them over. Mr. Waddell. They can carry them over and feed them. The scalper has the same privilege in the stockyards as any packer ov customer in the yards. Mr._ VoiGT. I understand at present there is more meat in storage in this country than ever before in history. Is that true? Mr. Waddell. My figures show that at the six largest packing points in the United States, as of August 1, total pork meats were 384,000,000 pounds this year, as against 388,000,000 pounds a year "ago, or practically about the same, with an increase of about 14 per cent of hogs killed. Mr. VoiGT. I am speaking of all meats and food products in gen- eral. Is it your understanding that there is more in cold storage than there has ever been? Mr. Waddell. That is my impression ; yes, sir. Mr. VoiGT. How do you account for that? Mr. Waddell. I account for that from the fact that we have had curtailed demand. There is no question but what the high prices have curtailed consumption. We find that domestically. It is also true that since the armistice was signed a great deal of meat has been shipped from South America and New Zealand and those countries that could not secure ship space during the war. Mr. VoiGT. It has been shipped to this country ? Mr. Waddell. Shipped to Europe, exports which ordinarily would come from here and did come here during war times. Mr. VoiGT. You think that the demand for export has anything to do with the present stock on hand ? Mr. Waddell. Yes ; I think it has. I think the increase in the hog population and under normal trade we would have a terrific stock in this country at the present time had it not been for the export demand which has kept these stocks reduced and enabled the packers- buying this surplus production of hogs as it came on the market. Mr. VoiGT. Don't you think that the great amount of food has been accumulated in cold storage for the purpose of exporting later ? Mr. Waddell. To some extent; yes, sir; I think so. I think there has been anticipation of great demand from central Europe. Mr. VoiGT. How many branch houses have you ? 426 COLD-STOKAGE LEGISLATION. Mr. Waddell. About 400 in this country. Mr. VoiGT. At how many places do you slaughter? Mr. Waddell. Fifteen. Mr. VoiGT. Do you maintain freezing facilities at all of these branches? Mr. Waddell. We do with the exception of four of them. You were referring to plants, were you not? Mr. VoiGT. I am referring to these 400 branches. Mr. Waddell. I can not tell you off-handed. I can not tell you how many of our branches have freezer facilities ; comparatively few of them. Mr. Anderson. And cooler space? Mr. Waddell. Cooler space. Mr. VoiGT. They all have cold-storage space? Mr. Waddell. Not all of them, but most of them. Mr. VoiGT. That means temperature you can produce by ice? Mr. Waddell. Ice or artificial refrigeration. Mr. VoiGT. How much of that space have you ? Mr. Waddell. In our branch houses my estimate would be so far from the mark that I think it would be valueless. Mr. VoiGT. When you ship pork products to a branch house from Chicago, do you treat that branch house as a separate entity for the purpose of your bookkeeping? Mr. Waddell. Yes, sir. Mr. VoiGT. That is, you would treat them as you would selling to a stranger? Mr. Waddell. Exactly so. That branch house stands on its own merits so far as profit is concerned. Mr. VoiGT. When Armour & Co. at Chicago are required to give the sale of pork, do you give the price at which you sell to the branch house ? Mr. Waddell. We take the returns from these branch houses, which are concentrated at Chicago, compiled, and a summary made, and the average price- taken all over the country from these fresh- pork prices out of these 400 branch houses. When I say the average price here in my statement on pork loins was $33.30 on August 14 of that week that means that $33.30 represents our average price on all the pork loins sold in our branch houses throughout the United States. Mr. VoiGT. You mean by that the price to the consumer — the purchaser — at your branch house? Mr. Waddell. The price at which we sold the trade, retailer or wholesaler — our regular clientele, whether retailer, wholesaler, or consumer. Of course, we are wholesaling; we do not cater to the consuming trade, except the large buyers. I mean the individual who wants to buy a few pork chops, etc. Mr. VoiGT. Are any of your branches separately incorporated? Mr. Waddell. I can not answer that. Mr. W. C. Kirk. We have incorporated in two or three States where it is necessary to do so in order to have domestic corporations. Mr. VoiGT. What I want to get at is the profit made by the branch house. Does that flow back to the treasury of Armour & Co. or does it go to their stockholders? COLD-STORAGE LEGISLATION. 427 Mr. Waddell. That goes back to our headquarters in Chicago, to our principal department in Chicago. All branch houses regardless of whether incorporated in other States, Chicago is the concentrating point for this information. Mr. VoiGT. The profit made by branch houses flows back into the common pot in Chicago. Mr. Waddell. That is correct. Mr. Anderson. May I ask you, _Mr. Waddell, how the export price compares with the domestic price? Mr. Waddell. At the present time the export price has been — do you want it at the present time or during the period of the war or at all times? Mr. Anderson. Take it any way you want it, so we get what you are talking about. Mr. Waddell. The English price has been a little higher, for the reason that they have certain specifications on their meats, very closely selected. The English are very technical, and we do get a better price on the English meats than the domestic, but not any better when you take into consideration the quality of the meat supply. The balance of the export trade — Central Europe — ^buy the same cuts as are sold domestically, and we sell them at about the same price as to the domestic consumption ; possibly in some respects a little higher, because there is more risk to them. Mr. Riddick. Of the branch houses, how many do you supply out of Chicago ? Mr. Waddell. We have no regular rule; wherever we have accu- mulation of products we divert the orders to supply our business. Mr. Ejddick. These branch houses sell to the retailers ? Mr. Waddell. The retailers and wholesalers and any regular customers. Mr. EiDDiCK. Do you make the same price to every branch house when you sell the goods, the same price, plus the freight? Mr. Waddell. Not necessarily. That is governed largely by local conditions. We have in this country between 700 and 800 inspected plants, and in some localities these local plants are very formidable, and we have to make some difference in prices. It depends on the competition. Mr. ErooiCK. I hear the charge that the packers sometimes estab- lish markets of their own and sell beef, meat, and products very low when they can not make terms with some local meat establishment to buy their products? Mr. Waddell. There is nothing in that; absolutely nothing to it. Mr. Anderson. Are the British still buying on Government ac- count? Mr. Waddell. I have been on a holiday for the past four weeks, but I understand that the English have commandeered all of the stocks and are again assuming food control over there. That has happened within the last 10 days. Mr. Anderson. Since the armistice, as far as you know, has there been any change in the British policy with respect to buying for Government account? Mr. Waddell. The British liquidated their holdings after the armistice was signed. After a time they established maximum prices 137690—19 28 428 COLD-STOEAGB LEGISLATION. with the wholesale trade, and then later I believe that was dissolved, and it was an open trading proposition, as in prewar times. I might add that the price kept rapidly advancing with the advance of hog prices. The Chairmax. Can you give the top prices on hogs slaughtered? Mr. Waddeul.. The top price on hogs within the past month has reached 23.75 in Chicago. The Chairman.' That is the top price. What is the percentage of the top-price hogs slaughtered? Mr. Waddell. The hogs of all kinds made up the percentage. The fact is we have been getting what we call the sows and the rough stock recently, with the result that the desirable hogs have been a very small percentage. There has been some fluctuation between the rough stock and the good hogs, about 3^ or 4 cents, the greatest in the history of the business, because there were so few good hogs or top price hogs. The Chairman. Do you sell pork direct to retail merchants? Mr. Waddell. We sell direct to the retailer and the wholesaler. The Chairman. Do you sell direct to the men in the market, in Washington ? Mr. Waddell. To the retail trade ; yes, sir. Any one is welcome in our branch houses who wants to buy, but we do not cater to the con- sumer trade, because we sell direct to the retailer. The Chairman. Do you sell jobbers here? Mr. Waddell. We do; but proabably not in a great proportion as to the retailers because the jobbers probably buy a little cheaper than they can from us. They buy usually from the small packers who do not have the over-head expenses that we do. We maintain a branch house here and an organization to handle our business, and we must get our expenses on top of our price. The small packers are not bur- dened with the expenses of branch houses. The Chairman. Then somebody comes between the branch house and the retail merchant? Mr. Waddell. The smaller packer. The Chairman. Either of them? Mr. Waddell. That is usually the smaller packer. The Chairman. If some one comes between the branch house and the retail merchant, some one controls the market. Mr. Waddell. That is possible ; yes, sir. You say, " Controls the market." The Chairman. You say that you sell direct to the merchants ? Mr. Waddell. We sell direct to the merchants ; yes, sir. The Chairman. In all instances? Mr. Waddell. In all instances ; yes, sir. Mr. Anderson. Do you ever sell direct to the merchan<^ from Chi' cago, or do you only sell through your branch houses ? Mr. Waddell. We usually sell through our branch houses. There are times when we sell to the merchants direct. For instance, an organization may have a purchasing agency in one State and they may operate in another State, in another branch house's territory. We may sell a merchant in Chicago who probably would not buy from the local branch house. He probably has no purchasing agency or purchasing machinery there. So in that sort of trade we take care of it direct from headquarters. COLD-STOEAGE lEGISLATION. 429 The Chairman. Where you have branch houses you invariably sell through the branch houses ? Mr. Waddeuj. We endeavor to do so, but that is not without excep- tion. There are some exceptions. Mr. McLaughlin of Nebraska. We have had some statements in the record as to the percentage of profit made by the packers and other organizations ranging from one-half of 1 per cent to 2 per cent and a little more on the volume of business transacted. Can you give some statement or estimate of what Armour's profit is ? Mr. Waddeul. I think that is all on record with the Federal Trade Commission. I do not know that I have the figures in mind now. That is apart from my end of the business. I am more in the dis- tributing end of the business rather than the financial end, but that is all a matter of record with the Federal Trade Commission, in their reports. Mr. McLaughlin of Nebraska. I heard a statement made a while ago that the percentage was small, and I wondered if in your per- centage of profit on hogs or beef, that percentage of profit included all of your 700 or more by-products. Mr. Waddell. That includes everything relative to the packing business. I know that. Mr. McLaughlin of Nebraska. While we are more especially seek- ing information in reference to cold storage legislation here there is a possibility that there will be recommendations after a while for the regulation of prices all along the line. Of course, in stating your percentage of profits, the salaries to all the ofiicers and other officials of the organization must be deducted. Would you object to stating, you or some member of your company here who knows, what is the highest salary paid to an official of the Armour Co. ? Mr. Waddell. I have no way of knowing that, myself. Mr. McLaughlin of Nebraska. Do you know what dividends Ar- mour & Co. paid to stockholders in 1918 ? Mr. Waddell. I do not know officially, but I think it was 10 per cent, but I do not know that ofiicially. Mr. McLaughlin of Nebraska. About 10 per cent? Mr. Waddell. I think so. Mr. McKinley. Did not the law hold it to nine ? Mr. Waddell. He was referring to dividends. Nine per cent was the amount of earnings on the capital invested. Mr. McLaughlin of Nebraska. What is the explanation of the difference between one-half or 2 per cent profit which the packer makes and the 9 or 10 or more per cent dividend that is declared ? Mr. Waddell. I do not believe I understand you. You say one- fcalf of 2 per cent ? Mr. McLaughlin of Nebraska. One-half or 2 per cent. We have bad statements that not to exceed 2 per cent was made on the products and I was wondering why they declared such dividends if they hadn't such large profits. Mr. Waddell. I think I said the earnings of the packers showed between 2 and 3 cents on a dollar of sales. That is what the record shows. Mr. McLaughlin of Nebraska. I understand you now. The Chairman. You say 2 or 3 per cent of the sales ? 430 COLD-STOEAGE LEGISLATION. Mr. Waddell. No. To be exact, I think it was $2.78 on each $100 in the business. The earnings last year were 5.6 per cent; on a dollar turnover 1.6 per cent ; on the total business 1.7 per cent. The Chairbian. How long does it take to market a hog, for in- stance ? Mr. Waddell. This is a little outside of my department of the business, and I do not believe I had better attempt to discuss that because I might give you some wrong impressions of the business. Mr. McLattghlin of Nebraska. Would you have any objection to securing for our record a statement of some of the higher salaries paid by your company ? Mr. Waddell. I do not believe I am qualified to answer that. I do not know what the policy of the house would be on that. I think those things are all a matter of record in the reports of the Federal Trade Commission. The Chairman. Can you state what your profits are this year, as compared with last? Mr. Waddell. No, sir ; I am not familiar with what our profits are for this year. Mr. Hutchinson. There is one matter I would like to ask you about. You spoke about the matter of the inspection by the small J) ackers. Is there any small packer in the United States who does not have any inspection ? Mr. Waddell. There are some, if they do no interstate business. Mr. Hutchinson. Do they have their products in cold-storage warehouses? Mr. Waddell. Yes ; some of them have cold storage, but I think it is a very small number. Mr. Hutchinson. But they all sell their products within the State? Mr. Waddell. They must. Unless they are inspected they can not sell outside of the State. Mr. Lee. In distributing your products is it not sometimes the custom to run a train or a car and stop along from station to station? Mr. Waddell. Yes. Mr. Lee. To supply the merchants with beef ? Mr. Waddell. Yes ; that is what is laiown as our peddler cars. Mr. Lee. That is to take the place of the wholesale man who does business in that territory? Mr. Waddell. No; that has been an old-time custom. That in- sures refrigeration to the small countryman who has limited finances and who wants his product fresh and in good condition and at stated intervals. Those peddler cars are run practically as regularly as mail trains, and that method is available to anyone who wishes to avail himself of it. Mr. Lee. As I understand it you sell at about the wholesale prices. Mr. Waddell. We sell at practically the wholesale prices. We are governed by competition on that. It is a trade proposition abso- lutely, governed by market conditions and the supply. Mr. Lee. I have heard a good deal of complaint about it. Mr. Waddell. Yes; that has been recently attacked. That service is available to anyone who can take advantage of it. Mr. Lee. They claim it is to put the wholesaler out of business. COLD-STORAGE LEGISLATION. 431 Mj. Waddell. There was a meeting in Chicago a few weeks ago— I did not attend it— but I think that was discussed quite thoroughly and it was demonstrated that, if anything, the wholesaler has an advantage over the packer, because the diversified products in the peddler cars raises the minimum weight, whereas the wholesale grocer who does not have fresh meat has a lower tonnage volume ax»d a more advantageous rate. Mr. Helfin. Where do you operate these peddler cars? Mr. Waddell. Practically at all our large plants in the local terri- tory. Mr. Anderson. You reach about 28,000 towns with peddler cars and trucks, do you not? Mr. Waddeko. I have no record of that. Mr. Lee. You have them in Georgia, and I did not know that you had any very large plants there. Mr. Waddell. We operate there from St. Louis; we have good service from St. Louis. Mr. Heflin. Do you operate them in Alabama ? Mr. Waddell. Yes, sir; we operate them in Alabama from St. Louis. Mr. Hefun. And Birmingham? Mr. Waddell. We have a branch house in Birmingham. Mr. VoiGT. Who fixes the price from day to day on pork sold in Washington; your branch house? Mr. Waddell. Fresh pork? Mr. VoiGT. Pork products in general which you sell here. Mr. Waddell. That is i)ractically a trading proposition, based upon local conditions in this market, and the Chicago departments suggest to the Washington house, as to all branch houses, what the conditions of the markets are in Chicago, or the hog market or the- board of trade market on those products, and they make requests on our branch houses. But it is not always possible to follow those re- quests. Mr. VoiGT. Is there telegraphic communication every day be- tween your branch house here and your Chicago house ? Mr. Waddell. Practically; yes, sir, if there is a fluctuation, but if there is no fluctuation we do not telegraph. Mr. VoiGT. You have some one in charge who has discretion to make a price ? Mr. Waddell. In Washington? Mr. VoiGT. Yes. Mr. Waddell. Yes ; our manager has discretion to trade and man- age the business as if he were running it as his own business. Mr. VoiGT. Do you sell to anyone who applies? Mr. Waddell. No ; we do not cater or sell to the small consumer ; the family who would want a steak, etc. Mr. VoiGT. I understand you do not sell at retail. But do you sell to any dealer? Mr. Waddell. We have no discrimination. We do not discrimi-' nate against any of the regular trade. Mr. VoiGT. Do you sell to all persons on the same day at the same price on the same product? 432 GOLD-STOKAGE LEGISLATION. Mr. Waddell. That depends. I do not know that we have identi- cally the same price. That depends on how long we hate to carry the account, on what the service is, or the selection. That is a trading proposition. Mr. VoiGT. What I arn trying to get at is whether there is any favoritism shown to dealers in the city of Washington who buy from your local branch house. Mr. Waddell. No favoritism; no, sir. That is just our general policy. Mr. Heflin. Then, in any town where you do business you sell to any merchant who wants to handle your goods? You do not pick out any one person and sell to him exclusively? Mr. Waddell. No. The door is open for all legitimate trade. The Chaieman. We are very much obliged tc you, Mr. Waddell. Mr. Waddell. I thank you, gentlemen. STATEMENT OF V. H. MTJNNECKE, OF AHMOUR & CO., CHICAGO, ILL. Mr. Mtjnnecke. Mr. Chairman, I have charge of the cattle, calf, and sheep departments of Armour & Co., and my duties call for the supervision of the buying, distribution, and the selling of the product and seeing that the by-products are transferred to the subsidiary departments upon an equitable basis. In other words, to see that the products that I do not sell, such as hides, bones, and fertilizer are transferred to the other departments at fair prices. Otherwise I could not arrive at a true cost of my raw material. Our business last year is represented by the slaughter of 40,000 cattle, 30,000 sheep, and about 25,000 calves weekly. We would have liked very much to have sold all that meat in its fresh state to get a quicker turnover, and for other reasons. In the early days of the business it was customary to sell in that way. They would save the hides and tallow and get what they could for the offal. Obviously, that would not do to-day, as it would work great injury to the pro- ducer and would not benefit anyone — the retailer, the middleman, or the consumer. So we gradually found it necessary to go to storage with certain offals and cuts of beef that were plentiful in the time of heavy receipts and were needed in the time of light receipts. Up to 1914 we froze practically no carcass beef in this country, and what little we did up to that time was for the Navy supply ships. The Army did not use any and the domestic consumer would not use it. He was prejudiced against it, except certain cuts such as tenderloins and rib and loins which the resort trade and the hotel trade got in the habit of using. The same thing applied to sausage materials, which we found we needed in March, April, and May, when we had light cattle receipts. We learned that we could put away this meat in the fall and keep it until we needed it in the spring. Although it added to the cost of the raw material, it was still cheaper than we could make it in the spring of the year. We therefore are very much interested in cold-storage laws, and we have no fear of any laws you may enact so long as they are work- able, as applied to our business. We do not put this meat away in the time of plenty for the purpose of large profit or of influencing the market in any way. COLD-STORAGE LEGISLATION. 433 We would be glad at any time to get our money back for the cost of the raw material plus the carrying charges and the interest, and there has never been, to my knowledge, any speculation in frozen beef in this country. Our stocks of frozen beef to-day represent a tonnage of 8,289,000 pounds, none of which is more than three months old. Deduct from that the amount of cargo which we have assembled for a steamer to sail on September 1, which will take 3,565,057 pounds, and a reserve which we have of 1,253,005 pounds for a Navy order, there will be left a balance of 3,471,836 pounds of carcass beef in freezer in the United States to-day the property of Armour & Co. At one time, in 1918, when we were under the Food Administration's jurisdiction and control, we had as much as 30,000,000 pounds at one time. So, lelntively, we have a negligible stock of frozen beef. Our stock of miscellaneous beef products, such as sausage material, trimmings, and other beef products at this stime is 7,139,434 pounds, as against 6,290,524 pounds a year ago. The increase is largely ac- counted for by the fact that we were urged by the Food Administra- tion as late as January, 1919, to make all the canning meats we could. They said there would doubtless be a demand for anything in the food line in Central Europe and we should go right on as though the armistice had not been signed. The same thing was told us by the Food Administration with relation to probable Army and Navy requirements. Shortly after that, however, we had these orders canceled for the canned meat supplies, and the Army and the Navy and the British Government dropped out of the market entirely for carcass beef. That left us with several million pounds of carcass beef, which has since been moved to Europe by our selling organization on that side. That brings you up to the present moment. The bal£tnce of my duties are very similar to those of Mr. Waddell, except that they cover beef, sheep, and calves, whereas his duties apply to pork. Mr. Heflin. Did you say it was a part of your duty to store the hides from the beef cattle? Mr. MuNNECKE. It is part of my duty to see that I sell my hides to advantage to the hide department. I know something about the hide business. Mr. Heflin. How long do you keep hides stored in storage? Mr. MuNNECKE. It takes about 30 days to cure a hide. It is ready for the market at any time after that. Mr. Heflin. There has been some report of several million pounds of hides stored in the packers' storehouses in this country. Do you know anything about that ? Mr. MujfXECKE. That was not within the last year. That was in 1918, and they were, I think, told to hold them by the leather com- mittee in Washington. Mr. Heflin. About how many hides have you stored at this time ? Do you express them in numbers or in weight ? Mr. MuNNEGKE. We are now sold up on hides. There has been an active market since early in April, and our stocks are exhausted at this time, sold up. The Chairman. How are prices paid by the Government ar- rived at? 434 COLD-STOEAGE IzEGISLATION. Mr. McNNECKE. For beef? The Chairman. Yes; sold to the Army and Navy. Mr. MuNNECKE. They were on competitive bids up to April, 1918, and at that time the Government's Food Administration fixed the price on beef, but did not fix the price on the by-products and did not offer an outlet for by-products. They took 40 per cent of the carcass beef and left us with the miscellaneous offal from those cattle to dispose of as best we could, and we could not do so. Mr. Chaieman. That was based on competitive bids from time to time ? Mr. Mttnnecke. The Government would advertise for so much beef for the Army and the Navy and invite all killers in the country who had that class of beef which they required to submit a bid for furnishing the required quantity. The Chairman. For future delivery? Mr. Mtjnnecke. Yes, sir. Mr. Chairman. Has that been true in the past? Mr. Mcnnecke. Yes, sir; up to April, 1918. Shortly after the armistice was signed the various branches of the Government went back to their old method of buying their own supplies. The Chairman. What is the old method ? Mr. MuNNECKE. Calling for competitive bids. The Chairman. Was the price fixed, based on the top price? Mr. Mt7Nnecke. No. They took a good average quality of beef, not the best, but what we call good grade steer beef. It would be the class of beef represented by the range in prices as jow might see them in the live-stock quotations. The Chairman. Then the market price is to be made the basis of future delivery? Mr. Mtjnnecke. Yes, sir. The Chairman. What price is that — the top price or the low price ? Mr. MuNNECKE. On the range of prices, about the middle price on steers ; not the top price. The Chairman. Several years ago was it based on the top price? Mr. Mtjnnecke. Not to my knowledge. We have had some private contracts based on the top price, but not with the Govern- ment — not in my experience. The Chairman. I was told that it was based on the top price, and the top price was boosted for the purpose of exacting a higher price for the contracts. Mr. MuNNECKE. I do not think that is correct. The Chairman. Will you supply the committee with the informa- tion requested — ^the price of each grade of cattle and on the various finished products? Mr. Mtjnnecke. Yes ; select two or three grades of steers and two or three grades of cows ? The Chairman. Yes. Mr. Mtjnnecke. You want the live price and the dressed cost of meat? The Chairman. I understood you to say that you distribute the stuff you handle among the various departments and charge it up to each department; charging one department for the carcass, for instance? COLD-STORAGE LEGISLATION. 435 Mr. MuNNECKE. I keep the carcass; that is what I merchandise through the branches. The Chairman. You ship it to the branch houses, and they cut it up themselves? Mr. MuNNECKE. The branch houses sell them the best they can. The Chairman. You ship the full carcass? Mr. Mttnnecke. Yes, sir; in quarters. The Chairman. Will you give the prices of hides along with your other information ? Mr. MuNNECKE. Yes, sir. Mr. Anderson. I have heard it stated that the stock of hides in this country has been bought up by foreign buyers. Have you any information about that ? Mr. MuNNECKE. The stocks of the packers? Mr. Anderson. Stock of hides. Mr. MuNNECKE. No, sir; I have not. I do not sell the hides ex- cept to see that I get a fair price for them on the transfer. Mr. Anderson. So that you do not know about what becomes of them after they are transferred to the hide department ? Mr. MuNNECKE. No, sir. Mr. Anderson. I think the statement has been made that Armour's profit per head on cattle was about $1.19. Have you ever seen any figures of that sort ? Mr. MuNNECKE. In past years I have ; yes, sir. Not this year. The Chairman. How does the transfer price compare with the market price of hides? Mr. MuNNECKE. As near as we can analyze the market, the full market price less the cost of handling by the department buying them. The Chairman. You mean the price paid by the tanner? Mr. MuNNECKE. Yes, sir. The Chairman. Your firm sells direct to the tanner? Mr. MuNNECKE. Yes, sir. The Chairman. How does the transfer price compare with the price paid by the tanner ? Mr. MuNNECKE. Full price less the cost of handling of the hide and shrinkage. Mr. Jacowat. In 1915 there were about 60,000,000 head of cattle in this country, were there not ? Mr. MuNNECKE. In 1915 ? Mr. Jacoway. Yes. Mr. MuNNECKE. I did not think there were that many; nearer 50,000,000. Mr. Jacowat. As near as you can get at it how many head of cattle are there in the United States at the present time ? Mr. MuNNECKE. I should say there were 60,000,000 now. Mr. Anderson. If I may interject there it was estimated on Janu- ary 1, 1918, that there were 66,000,000 head, and there are probably slightly more than that now. Mr. Jacowat. I have heard it stated that the five great packers controlled 75 per cent of the beef cattle of the United States. Do you know whether or not that is correct ? Mr. MuNNECKE. How do you mean controlled them; buy 75 per cent of them ? 436 COLD-STOEAGE LEGISLATION. Mr. Jacoway. Controlled the price. I do not know in what way I could state it. Mr. Helfin. To the producer. Mr. Jacoway. I think that suggestion is a good one, that they controlled the price paid the producer. Mr. MuNNECKE. We do not control the price in any respect I can say. ^r. Jacoway. What percentage of the 60,000,000 head of cattle will pass through the activities of the five great packers ? Mr. MuNNECKE. I would think about 45 or 50 per cent. Mr. Jacoway. Is the leather from the animal that is fed and slaughtered by your people superior to that from the animal you find out on the range ? Mr. MuNNECKE. The leather is not superior, but the hide com- mands a higher price because it has a better take-off. Mr. Jacoway. Does it not make a hide that is superior if that is true? Mr. MuNNECKE. That is what I said. The leather Mr. Jacoway (interposing) . Do not the best shoes come from that kind of hide, from your kind of hide ? Mr. Mtjnnecke. From packer hides; yes, sir. Mr. Jacoway. You spoke of the tanners. Is not your company interested in the tanning business ? Mr. MuNNECKE. Not my end of it. Armour & Co. are interested in the Armour Leather Co., but that is not my end of the business. Mr. Anderson. I think, perhaps, a wrong impression may arise from Mr. Jacoway's questions and your answers to them. Only about 25 per cent of the number of cattle, or less than 25 per cent of the number of cattle in the country are slaughtered each year; is that not true ? That is, in interstate slaughter ? Mr. MxTNNECKE. I think it is even less than 25 per cent. I think when we- had 50,000,000 the number of those in interstate slaughter was about 11,000,000 and the packers' part of that 11,000,000 was 7,000,000. Mr. Anderson. I have the figures here. In 1918 the inspections for slaughter, which would be the equivalent, I take it, to interstate slaughter, were 11,936,928. Of that number, 80 per cent passed through the hands of the five large packing plants and 21.1 per cent passed through the hands of Armour & Co. I just want to put that in the record, so that there will be no misapprehension in regard to the actual figures. Mr. Heflin. Who are your competitors in buying beef cattle ? Mr. MuNNECKE. All of the killers of the country and the feeder buyers and the stocker buyers. Mr. Heflin. Do they belong to the other packers ? Mr. MuNNECKE. No, sir ; they are individuals, operating for them- selves. Mr. Heflin. Independent concerns ? Mr. MuNNECKE. Small packers. They may be located at these different markets or they may have orders in there. Mr. Heflin. Do you know of any buying concerns of any size in competition with the packers, with your company, or with some other concerns; that is, I am referring to independent concerns? Mr. MuNNECKE. A great many. COLD-STORAGE LEGISLATION. 437 Mr. Heflin. Can you name any of them? Mr. MuNNECKE. In Chicago, for instance? Mr. Heflin. Anywhere. Mr. MtJNNECKE. The Independent Packing Co. of Chicago ; Pf ael- zer & Sons, Chicago; the Cincinnati Abattoir, of Cincinnati; the Indianapolis Abattoir, of Indianapolis, Ind., the Consolidated Co., at Philadelphia; the Cleveland Packing & Provision Co., at Cleve- land, Ohio; and Klink & Dold, in Buffalo. They are scattered all over. Mr. Heflin. These are independent of the big packing concerns of the country ? Mr. MuNNECKE. They are separate concerns. They are not related to the so-called' big packers. Mr. Jacoway. Do the five big packers, so far as you know, have a clearing house of their own, where they report to each other the amount of stuff they have on hand of different varieties, and the price ? Mr. Mttnnecke. Of their stocks ? Mr. J'acowat. Yes. Mr. MiTNNECKE. We do not in my end of the business. Mr. Jacowat. You, then, have no daily, weekly, or monthly re- poz'ts from any of the other packers as to the amount of stuff on hand. Mr. MuNNECKE. No, sir. Mr. McLaughlin of Nebraska. Do I understand you to say that after the armistice was signed yon were notified by the Govern- ment that the demand for meat products would probably be just as great for some time to come as during the war? Mr. MuNNECKE. Yes, sir. Mr. McLaughlin of Nebraska. Could you state approximately how long after the armistice was signed it was before you were notified by the Government that their demand would be much less than they had previously reported ? Mr. Munnecke. Late in January or early in February. Mr. Heflin. Four or five months after ? Mr. Munnecke. Yes, sir. Mr. VoiGT. Every packer knows about what the other packer is doing, does he not? Mr. Munnecke. In the live end of the business ? Mr. VoiGT. In the whole business. Mr. Munnecke. Yes, sir ; he knows by observation. Mr. VoiGT. How does the price of hides in general now compare with the price before the war? Mr. Munnecke. It is very much higher. Mr. VoiGT. Give us some idea of that. Mr. Munnecke. I should say 100 per cent higher. Mr. VoiGT. What was the price of hides in 1914, before the out- break of the war, and what is it now on the same grades of hides ? Mr. Munnecke. To get that accurately I think you should refer to the Bureau of Markets reports, but I should say 'it was then froip 14 to 16 cents, and now it is 30 to 40 cents for good steer hides. Mr. VoiGT. Per pound? Mr. Munnecke. Yes, sir. 438 COLD-STORAGE LEGISLATIOIT. Mr. VoiGT. Armour tans most of his own hides, does he not? Mr. MuNNBCKE. I could not say as to that. I am not close enough to that end of the business to say -as to that. Mr. VoiGT. Do you know that Armour conducts some tanning operations ? Mr. MuNNECKE. Yes ; I know that. I do not know what per cent of our own hides he uses, because I do not follow the hides after they are oncd sent to the hide cellar. Mr. VoiGT. Do you know approximately what percentage are tanned by thai Armour interests and what percentage go to the out- side buyers? Mr. Mttnnecke. No, sir. The Chairman. You said Armour is interested in tanning. Is that independently or as a packing company? Mr. MuNNECKE. I could not say as to that, definitely. The Chairman. I understood you to say that the Government has now canceled its contracts. Mr. MuNNECKE. No ; I said if they wanted anything now The Chairman (interposing). Have they canceled all or only parts of their contracts? Mr. Mttnnecke. If they want anything at this time they call for competitive bids for their requirements, whereas up to January or February they were under allotment. The Chairman. This surplus that is being disposed of now, is it being originated from time to time, or is it a supply accumulated dur- ing the war, which has been held for some time ? Mr. Mttnnecke. Yes, sir; that is the stuflp which was on hand when the armistice was signed, or delivered to them in December or Janu- ary. The Chairman. None .delivered since? Mr. MuNNECKE. A little in March; they kept buying a little, but no great quantity. The Chairman. Thank you, Mr. Munnecke. STATEMENT OF ME. H. I. BROWN, OF ARMOUR & CO., CHICAGO, ILL. Mr. Beown. Mr. Chairman, I am manager of the produce depart- ment of Armour & Co., covering butter, cheese, eggs, and poultry. I have some memoranda on paper, with some figures which I thought might be interesting in reference to storage conditions and our total stocks. I might say that Armour & Co., from a produce standpoint, have no objection to a cold-storage law which operates from season to season. I think possibly the products I handle in my department are more seasonable than any others. As you all know, butter is produced in large quantities in the early summer months. The latter part of May or the early part of June is the start of the flush of the season, and it carries through until the first or the middle of August, possibly. Our total sales of butter last year through our selling organization was 515000,000 pounds, approximately. According to the figures of the Depart- ment of Agriculture on production, that amount figures about 3| per cent of the total production. Our total stocks of butter on COLD-STOEAGB LEGISLATION. 439 August 1 of this year and including the stocks in our packing houses, in the cold-storage warehouses and in our branch houses, and in out- side storages, amounted to nine million one hundred and some odd thousand pounds. Comparing that to the prewar figures, and tak- ing 1914, approximately the same date, August 1, we had five million three hundred and" seventy-seven thousand and some odd pounds. That increase on the face of it looks large. It is 69 per cent. When we analyze it, our sales show an increase of 123 per cent over the same period. In taking the average of our storage stocks dating back from 1914 to 1919, inclusive, I took the average peak of our storage stocks of butter in each year and our average sales for the same years, and it showed less than 10 per cent of our total sales. That is, our aver- age peak of storage stocks showed less than 10 per cent of the aver- age sales for the same period. General stocks reported in cold storage by the Bureau of Markets for this year as compared with other years look very heavy. Be- fore leaving Chicago, over the telephone from the Bureau of Markets we were informed that the increase in production in May and June of this year was 25 per cent in excess of last year. This accounts to some extent for the large increase over last year. In addition, we can account for the increase by the lack of demand from our Army and Navy, and we have not had the cantonments to supply. Our general demand has not been quite as good as last. year. On eggs, I might say, I have treated these products in the same way, and if it is agreeable to the committee I will go through each product in this way rather than stop for questions at this time, and if there are any questions in regard to the various products we can go back to them and I will be very glad to OiUswer any questions. On eggs our sales last year showed 61,500,000 and some odd dozen, and this figure, according to the figures of the Department of Agriculture, is 3^ per cent of the total production of this country. Our total stocks on August 1, 1919, were 637,371 cases. I might add that these stocks, the same as the butter stocks, included our packing- house stocks, our branch house trading stocks, and all cold-storage stocks. Comparing those figures Avitli the prewar figures, and taking August 1, 1914, we had 306,985 cases, an increase that again seems large, 108 per cent. But our sales will show an increase over the same period of 113 per cent. Taking the same average high peak of our storage stocks, from 1914 to 1919, and comparing them with our sales for that period we show less than 20 per cent at our highest point as compared with ■our sales. I might say that my answer to the fact that we have more eggs in storage in general in the country over other years is due largely — although. I have not the figures — in talking with Dr. Pennington, «he agreed with me in my general impression that the lay is much heavier than we have known, and that is due to the fact that the Food Administration asked for an increased production. I think to-day we have more hens laying than we have ever had in this country before. In addition to that we have considerable eggs in storage, how many I am unable to say, which are stored for export and are 440 COLD-STOKAGE LEGISLATION. already sold to export buyers. There has been some talk, as I understand, before the committee of limiting the time for the storage of eggs for less than 12 months, or season to season. This would work a great hardship on the consumer, the producer, and the man trading and in the business of holding these eggs. For instance, there has been some mention of sevefi months, I believe. That would mean that the April egg, which is generally conceded to be the best quality to store, because it is the first lay after the winter months, and it is free from heat and free from frost, both of which have a serious effect on eggs if we store them. It would mean that these April eggs would have to be sold in November. Mr. Jacoway. What do you mean by the frost ? Mr. Brown. A frosted egg? If an egg is chilled it would cause the egg to become watery and sour if placed in storage. Seven months would mean that the May egg would have to be sold in December and the June egg in January, and so on. Mr. Hutchinson. That is figuring on seven months ? Mr. Brown. Yes; I was just taking that because I understand that had been mentioned in some of the bills before this committee. The April egg is the best to carry, and the May is the next, and the June the next, and the July is the worst egg we store. It would mean that we would have to get rid of the best eggs first, and the worst eggs last. In busines& practice we work it the other way; we move our July eggs and then the June and then the May and then the April. Mr. Hutchinson. Mr. Brown, wouldn't you always have the best on hand if you sold the best first ? Mr. Brown. No, sir; because an April egg will carry to February, where a June or July egg will not. It has not the keeping quali- ties. Mr. Hutchinson. Well, that would be 10 months; that is not 12 months. Mr. Brown. I do not follow your line of argument, sir. Mr. Hutchinson. If you sold the best first you would always have the best. Mr. Brown. I would have the poorest all the time. Naturally, if I sell my best eggs and keep the poorest, I will have the poorest all the time. Mr. Hutchinson. That will be the beat that you have. Mr. Brown. Yes ; but not the best we started with. The Chairman. Is there »ny difference in an egg stored in March or June or May we will say ? Mr. Brown. Y es ; we store eggs in th& latter part of March in the Central West, such as MissoHri, Kansas, Illinois, Indiana, and Ohio, if they are free of frost. That, depends a good deal on the weather. There isn't any business conducted that depends so much on the weather as the egg business. The Chaipman. Eggs laid in April, May and June would keep about the same ? Mr. Brown. No, s,ir; that is not so. My contention is that the March egg is a fine egg; it is the first lay, but on account of frost we do not dare put them in storage in the middle West or the North. Now, in Texas the March egg is the best egg, but I am talking now COLD-STOEAGE LBGISLATIOK. 441 of the Central Western States, where the most of the storage eo-gs come from. The Chairman. Which month produces the best eggs ? Mr. BEowisr. The month of April. Mr. Hutchinson. That is where? Mr. Brown. In the Central Western States, where the bulk of the eggs are produced. I would cover in that Oklahoma, Indiana, Ohio, Michigan, Minnesota, Illinois; the farther north you go the better the quality, because you have less heat, and we have less extreme summer heat. Now, on poultry our sales last year were twenty-seven million two hundred and seventy odd thousand pounds ; based on the Department of Agriculture figures, about one and one-half per cent of the total production. I am citing these different figures on our percentage of production in answer, in a sense, to. the contention that has been made that the five big packers control this produce business. Our total stocks on August 1, 1919, were three million five hun- dred some odd thousand pounds. Going back to a prewar compari- son of 1914, we show three million seven hundred and some odd thousand pounds. We have a decrease of about 4 per cent. Our sales increase shows an increase of 32 per cent. Taking the average high point of our storage stocks for each year from 1914 to 1919 we show that they are about 31 par cent of our average sales for the same period. Mr. Anderson. I don't know that I understand you there. Mr. Brown. I might explain it a little clearer. Taking 1914, pick- ing out the time when we had the most poultry in cold storage, and taking 1915, and taking that average, the average sales for each year in comparison that our percentage of poultry in storage at the peak is our average yearly sales. Does that explain it, sir ? Mr. Anderson. Yes, I think so; that is, you say at the peak the amount of poultry in storage is equivalent to 31 per cent of your average yearly sales ? Mr. Brown. Yes, sir; the average yearly sales. Another point that has been brought out is the current stocks this year, 1919, as compared with last year on frozen poultry. The stocks were on June 1st about three to one, and poultry selling 3 to 4 cents higher. There are certain reasons that enter into the proposition and one of them is that last year we had less poultry in storage, due to the abnormal demand than we ever had in the same period in the history of the country. In other words, our freezer stocks were deaned out earlier than ever before. In addition to that the pro- ducer received 5 Ot ^ cents more for his live poultry on foot this last packing season than he did th« previous year. Our increased cost on going into the freezer this year as compared with last year was about 10| cents. That was due to the increased labor costs, and pack- ing, and everything taken into consideration. Mr. Anderson. Then, you mean to say it was an increase of 10^ cents a pound ? Mr. Brown. Yes, sir ; 10| cents a pound. Mr. Anderson. Your figures are very much higher than the figures given by Swift the other day. 442 COLD-STORAGE LEGISLATION. Mr. Brown. I do not know anything about Mr. Swift's figures, but those are mine. I can substantiate those figures. Mr. Anderson. I am only speaking from an indefinite recollection, but I think he gave lower figures. Mr. Brown. Possibly you are thinking of the live cost. Our live cost was 5 to 6 cents higher ; but our cost to the freezer was lOJ cents higher. Mr. Anderson. Possibly that is it, because those figures are com- parable with the figures I have in mind. Mr. Brown. That is probably where it came in, then. I should be very glad to answer any questions. Mr. Hutchinson. Mr. Brown, you have a knowledge of the place where you have these eggs stored ? Mr. Brown. Yes, sir; in a general way. Mr. Hutchinson. Have you any eggs stored in Alabama? Mr. Brown. Yes, sir. Mr. Hutchinson. You have no law there, then, that regulates you, have you ? Mr. Brown. I do not know whether there is a cold-storage law there or not ; offhand, I would say there is not. Mr. Heflin. The wholesale atmosphere in Alabama is very con- ducive to just dealing and restrictive laws are not as necessary there as in some other States. However, there ought to be a State law regulating storage places in the State. Mr. Hutchinson. How about Minnesota ; have you any stored ir Minnesota ? Mr. Brown. Yes, sir; in the twin-cities. Mr. Hutchinson. There is no law there to regulate you ? Mr. Brown. That I could not tell you. Mr. Hutchinson. Can you tell how many States you are in where you are not regulated ? Mr. Brown. I will say my eggs are scattered . from California, Washington, and I think some in Idaho Mr. Hutchinson (interposing). Any in North Dakota? Mr. Brown. No; none in North Dakota or South Dakota either. We have eggs stored in Minnesota, Illinois, Michigan, Kentucky, Missouri, Kansas, Oklahoma, Massachusetts, and, I think, New York State — -yes ; I am sure in New York State — and 1 think in Connecti- cut, and some in Maine, I think. Mr. Hutchinson. There is no law there, is there — in Maine ? Mr. Brown. I am sure I do not know ; the list will speak for itself. Mr. Hutchinson. Do you mean to say you store butter and eggs and those things and do not know anything about the law ? Mr. Brown. I mean to say to you that our local man on the ground has to obey the law ; he would know about the law. Mr. Hutchinson. You don't know anything about that? Mr. Brown. Only in a general way. Mr. Hutchinson. You wouldn't have any objections to making a general law to regulate it all ? Mr. Brown. I would be very glad to have it, sir. Mr. Brown. I would be very glad to have, sir. The reason for that is this : We put our eggs out as storage eggs ; we sell them that way. COLD-STORAGE LEGISLATION. 443 Mr. Hutchinson. You sell them that way ? Mr. Brown. Yes, sir ; with marked cases. Mr. Hutchinson. You would have no objection to putting in a retail store a sign " Storage eggs for sale ? " Mr. Brown. No, sir ; not at all. I think if storage goods are sold for what they are it will lead to the education of the people and they will eat more storage goods than before. Mr. Hutchinson. And you would have no objection to that? Mr. Brown. None at all, sir. Mr. Anderson. I understood you to say that sales of butter this year were very much higher than formerly, and showed the figures. Mr. Brown. I said our sales of butter were 51,000,000 pounds last year; that is, our fiscal year, from November 1, 1917, to November 1, 1918. Mr. Anderson. I understood you to give a percentage of increase. Mr. Brown. I showed the increase of my sales from'1914 to 1919, 123 per cent ; yes, sir. Mr. Anderson. How does that compare with the sale of oleomar- garine ? Mr. Brown. I do not know, sir ; I have nothing to do with that. Mr. Jacoway. Would you want this law to apply to cheese ? Mr. Brown. I was going to come to that. I thank you for calling my attention to it. Cheese is not like these other commodities, it is not as highly perishable as eggs, butter, and poultry. We cure it by placing it at a temparature of 32 to 38. As a matter of fact cheese, to my way of thinking, is not palatable until it has age. In fact, I do not take a cheese home until it has been in storage for two seasons. Mr. Heflin. How long is that ? Mr. Brown. I would say from fourteen to twenty-four months. Mr. Heelin. How long can you keep cheese? Mr. Brown. Well, sir, I have had chesse on my table that was four years old. Mr. Heelin. Was it good and wholesome ? Mr. Brown. It is better than any other, but too expensive to carry. The shrinkage is enormous. Mr. Jacoway. What kind of cheese is it ? Mr. Brown. The American cheese. Mr. Jacoway. What is the change ? Is it more snappy ? Mr. Brown. If it is a fine cheese to start with, a heavy body, solid boring body, it will mellow down and you can spread it with your knife. It develops a richness that there isn't anything equal to, in my judgment. Of course, I am in the cheese business. Mr. Hutchinson. You speak of a longer time. You wouldn't have any objection to a provision where you could get permission to keep it longer if desired or necessary ? Mr. Brown. I was going to say 12 months on cheese, making it a uniform law, but with permission to carry that cheese on by saying why you want to carry it on. There isn't any reason why the great bulk of storage cheese should be carried over 12 months. In Ala- bama, for instance, the average trade wants a new cheese; a green cheese. They do not care for cheese aged 6 or 8 months. Mr. Heelin. They are afraid of an old cheese ? Mr. Brown. The new cheese will cut better than the old cheese. It is more rubbery and the knife will go through clean. With the old 137690—19 29 444 COLD-STORAGE LEGISLATION. cheese it will crumble. The grocer puts his cheese knife in it and it will crumble, and there is a lot of shrinkage and costs more to handle. I'or that reason he has trouble with his trade over it. Mr. McLaughlin of Nebraska. Have you any eggs stored in New Jersey, Armour & Co.? Mr. Brown. I would not be positive. I imagine we have some in Jersey City. Mr. McLaughlin of Nebraska. Have you some in Omaha ? Mr. Brown. Yes. I left Nebraska out. Mr. Jacowat. Have you any in Arkansas ? Mr. Brown. No, sir ; not to my knowledge. We have some stored in Texas. I left that out, too. Mr. Heflin. At what points in Alabama, did you say ? Mr. Brown. Birmingham. We store there to take care of the sur- rounding territory. We accumulate there in a local way and dis- tribute through the branch houses. The Chairman. Are there any further questions? We are very much obliged to you, Mr. Brown. STATEMENT OF MR. JOHN D. MILLER, REPRESENTING THE NA- TIONAL BOARD OF FARM ORGANIZATIONS. The Chairman. Mr. Miller, kindly state your full name and whom you represent. Mr. Miller. John D. Miller. I represent the National Board of Farm Organizations. Just a few words, Mr. Chairman, upon the effect of this bill upon farm organizations who own storage plants — associations of farmers owning storage plants — and the effect upon them. I have listened to the discussion there and I can see no objection to requiring farm organizations, if the committee think it is necessary, to discharge their product once a year, because it would be very, very seldom that they would ever want to do anything else. There will be, however, in my judgment more difficulty for these farm organiza- tions — many of them small, and all of them new at the business, none of them with an accounting force — to make the multitudinous reports that are always required by the Government departments that make the regulations for these matters. Now, Mr. Chairman, here in one locality are 100 farmers raising apples. If each one of those farmers had a private plant of his own and stored his apples in that plant and released them to market as he thought best from time to time, of course you would not require him to make reports. Now, I submit to you that if 100 of them combine to use one plant there is no greater necessity for reporting. But it is not always possible that those 100 farmers owning that cooperative plant have in it all of the farmers in that locality, as members, I mean. It is a convenience and benefit to many tenant farmers to use this plant which has been financed by these 100 farmers for their own particular use. Now, so far as I know, they charge a service fee of those other nonmembers for the use of this storage plant, and would come under the provision of this bill if they are doing it for a charge. That charge, so far as I know, is enough and no more than enough to cover the expense, the overhead, and so forth. COLD-STOEAGE LEGISLATION. 445 Now, I do not feel, gentlemen, like asking to have farm organiza- tions exempted from everything that comes along here. In fact, we are not asking for an exemption from this law, except if you gen- tlemen think it wise to incorporate a provision that associations of that character shall not be required to make these reports, and if you care to put in a stipulation that if they store for any of their neighbors that they must not make any profit, but do it at cost, be- cause these are community plants. Generally and in nearly all in- stances they are used by the farmers who own the plant, but some- times for convenience others use them. The Chaieman. You have reference to the license fee of $50? Mr. Miller. Yes, sir. The Chairman. If operated for other farmers, they should be ex- empted from the license fee? Mr. Miller. Yes; the license fee and the making of the reports. The reports would be burdensome. Mr. Jacoway. Couldn't the reports be made by a bookkeeper in an hour? Mr. Miller. That depends on the character of the report. I am ujdging by the reports required by other departments, and bearing in mind that farmers are not bookkeepers. Mr. Jacoway. They do have a bookkeeper for these community places ? Mr. Miller. Some do and some do not. The Chairman. Do they engage in cold storage aside from apples? Mr. Miller. I think in some instances they have butter. These things are in their infancy, but they should grow, because we sub- mit to you, Mr. Chairman and gentlemen, that it is going to en- courage production if the farmer, instead of being compelled to sell the season's stock as soon as it is harvested, or ready to be harvested, at the price then prevailing if they could not get as much for it then as if they held it and let it out gradually — I say it would encourage production if they could hold it and let it out gradually as the market required. Somebody must hold it; these stocks must be held. I have given you a problem now, but I have no remedy. The Chairman. Then the only objection you have is to the licensing fee? Mr. Miller. The licensing fee and these reports. The Chairman. Do you Slink they would be burdensome? Mr. Miller. I think it would be burdensome, Mr. Chairman. The Chairsian. Of course, if they are hoarding, it may be, neces- sary to license them and charge a fee in order to get the action de- sired. Mr. Miller. Well, personally, I think many of them would prefer to pay the $50 fee rather than to make the reports. The Chairman. It would be necessary to have reports. They are required to make reports now, and I think that section of the law will likely be made permanent. Mr. Miller. That may be so. If the reports are not burdensome, if they are such that the ordinary farmer can take it up and make that report, of course Mr. Hutchinson (interposing). Ther« must bo a record of those apples. You take a lot of apples there, and thure must be a record of whose they are, and how many. 446 COLD-STOEAGB LEGISLATION. Mr. Miller. There must be a record of tlie apples the farmers have ; I think so. Mr. Hutchinson. And you would go into interstate business ? Mr. Miller. Yes; they would be shipped over State lines. I am simply submitting this to you as one of the problems these farmers are meeting. Mr. McLaughlin of Michigan. Do you think it would make it necessary to hire a high-priced bookkeeper to do this work ? Mr. Miller. In many cases. They might get a banker to help them out sometimes. The ordinary farmer would be as much puz- zled about these reports as I am about the income-tax reports. Mr. McLaughlin of Michigan. I think if the people of the farms are as able as the men that appear here to represent them they should not have any trouble with these reports. Mr. Miller. Is that the sugar coating to the bitter pill you are going to give me to swallow, Mr. McLaughlin ? The Chairman. You would not want anything done to cripple cold storage? Mr. Miller, ph, no, sir ; it is a benefit. The Chairman. It is a benefit to the consumer, producer, and everybody. We thank you very much^ Mr. Miller. This will close the hearings on cold-storage legislation for the present. It may be possible that we may open them to hear Dr. Wiley at a later date, if he desires to be heard. Mr. Ames, of the Attorney General's office, will appear before the committee in the morning at 10 o'clock to represent the Attorney General on the amendments proposed to the Food Control Act. (And thereupon, at 5.35 p. m., the committee recessed until to- morrow morning at 10 o'clock.) COLD-STORAGE LEGISLATION. Committee on Agriculture, House or Representatives, Washington, D. C, Monday, August 11, 1919, The committee met at 10.30 o'clock a. m., Hon. Gilbert N. Haugen (chairman) presiding. Present: Members of the committee; also Mr. Chester Morrill, assistant to the solicitor; Mr. Herbert C. Marshall, assistant chief Bureau of Markets; and Mr. Walter G. Campbell, assistant chief Bureau of Chemistry, Department of Aricultiire. The Chairman. Mr. Morrill, will you furnish the committee with a digest of the cold-storage laws of the various States? Mr. Morrill. Do I understand that it is the wish of the commit- tee to have a compilation of the cold-storage laws of all the States ? The Chairman. I think it is the sense of the committee that some such digest should be supplied, if practicable. Mr. Lee. Could you give the laws in full, or merely a digest of them? Mr. Morrill. Do you desire to have them in full, so that you could make your own examination of the various laws; or do yoii wish to have simply a digest? Mr. McLaughlin of Michigan. You might get up whatever you think will be helpful to us. I do not think it will be necessary to quote the law of each State in full. Mr. Heflin. Yes, we will leave that with you. Compile what you think would be of advantage to us. Mr. Morrill. All right; I will furnish it in typewritten form, so that you can make such use of it as you wish. The Chairman. If you will do that the committee will have it in- cluded in the printed record of the hearings. Depaetment of Ageicultuee, Washington, August 20, 1919. Hon. Gilbeet N. Haugen, Chairman House Committee on Agriculture, House of Representatives. Deae Me. Haugen : In compliance with the request made by your committee when Mr. Morrill appeared before it on August 11, 1919, in regard to the cold- storage legislation, there has been prepared in the office of the solicitor a com- pilation of the laws of the various States relating to cold storage of articles of food. Attached to this compilation there is a copy of the uniform law relating to cold storage of certain articles of food as proposed by the Commis- sioners on Uniform State Legislation, in October, 1914. Following each sec- tion of this proposed uniform law there are notes indicating the extent to which such provision has been incorporated into state laws now in force. The law of each State has been set out in full for the reason that the language used in each State varies more or less from the language used in other States, as well as in effect, and it Was thought that the complete copies would be more valuable than a mere digest thereof, which would be quite difficult to put in satisfactory form. Very truly, yours, F. R. Haeeison, Assistant to the Secretary. 447 448 COLD-STOEAGE LEGISLATION. Unifoem Law Relating to the Cold Storage of Certain Articles of Food. [As approved and recommended for adoption by the Conference of Commissioners on Uniform State Laws. Octbber, 1914.] AN ACT To regulate cold storage of certain articles of food. Be it enacted, etc. Section^ 1. For the purpose of this act, " cold storage" shall mean the storage or keepiog of articles of food at or below a temperature above zero of 45 de- grees Fahrenheit in a cold-storage warehouse ; " cold-storage warehouse " shall mean any place artificially cooled to or below a temperature above zero of 4.5 degrees Fahrenheit, in which articles of food are placed and held for 30 days or more ; " article of food " shall mean fresh meat and fresh meat products and all fish, game, poultry, eggs, and butter. The following States have laws containing provisions substantially identical with the above : California, Illinois, Indiana, Iowa, Maryland, Massachusetts, New Hampshire, North Dakota, Utah, Wisconsin. The following States have laws similar in subject matter to the above, but different in requirements or effect : Delaware, Louisiana, Nebraska, New Jersey, Ohio, Pennsylvania. Sec. 2. No person, firm, or corporation shall maintain or opearte a cold- storage warehouse without a license so to do issued by the State food commis- sioner. Any person, firm, or corporation desiring such a license shall make written application to the State food commissioner for that purpose, stating the location of the warehouse. The State food commissioner thereupon shall cause an examination to be made of said ware'^ouse and, if it be found by him to be in a proper sanitary condition and otherwise properly equipped for its intended use, he shall issue a license authorizing the applicant to operate the same as a cold-storage warehouse during one year. The license shall be issued upon payment by the applicant of a license fee of to the treasurer of the State. The following States have laws containing provisions substantially identical with the above : California, Illinois, Iowa, Louisiana, Maryland, Massachusetts, New- Hampshire, New Jersey, North Dakota, Pennsyl- vania, Utah, Wisconsin. The following States have laws similar in subject matter to the above, but different in requirements or effect : Indiana, Nebraska, Ohio. Sec. 3. In case any cold-storage warehouse or any part thereof shall at any time be deemed by the State food commissioner to be in an unsanitary condition or not properly equipped for its intended use he shall notify the licensee of such condition and upon the failure otf the licensee to put such cold-storage warehouse in a sanitary condition or to properly equip the same for Its intended use, within a time to be designated by the State food commissoner, he shall revoke such license. The following States have laws containing provisions substantially identical with the above : California, Illinois, Indiana, Iowa, Louisiana, Maryland, Massachusetts, Nebraska, New Jersey, North Dakota, Pennsyl- vania, Utah, Wisconsin. The following States have laws similar In subject matter to the above, but diiferent in requirements or effect: New Hampshire, Ohio. Sec. 4. Every such licensee shall keep accurate records of the articles of food received in and of the articles of food withdrawn from his cold-storage ware- house, and the State food commissioner shall have free access to such records at any time. Every such licensee shall submit a monthly report to the State food commissioner, setting forth In itemized particulars the quantities and kinds of articles of food in his cold-storage warehouse. Such monthly reports shall be filed on or before the 5th day of each month, and the reports so ren- dered shall show the conditions existing on the last day of the preceding month reported, and a summary of such reports shall be prepared by the State food commissioner and shall be open to public inspection on or before the 10th day of each month The following States have laws containing provisions substantially identical with the above: California, Illinois, Maryland, New Jersey, Utah, Wisconsin. The following States have laws similar in subject matter to the above, but different in requirements or effect : Delaware, Indiana, Iowa, Louisi- ana, Nebraska, New York, North Dakota, Ohio, Pennsylvania. OOLD-SXOBAGE LEGISLAi'ION. 449 Sec. 5. The State food commissioner sliall inspect and supervise all cold- iitorsige warehouses and make such inspection of articles of food therein as he may deem necessary to secure the proper enforcement of this act, and he shall have access to all cold-storage v^arehouses at all reasonable times. The State food commissioner may appoint such persons as he deems qualified to make any inspection under this act. The following States have laws containing provisions substantially identical with the above : California, Delaware, Illinois, Iowa, Louisiana, Maryland, Nebraska, New Hampshire, New Jersey, New York, North Dakota, Pennsylvania, Utah, Wisconsin. The following States have laws similar in subject matter to the above, but difEerent in requirements or effect: Indiana, Massachusetts. Sec. 6. No article of food intended for human consumption shall be placed, received, or kept in any cold-storage warehouse, if diseased, tainted, otherwise unfit for human consumption, or in such condition that it will not keep whole- some for human consumption. No article of food, for use other than for human consumption, shall be placed, received, or kept in any cold-storage ware- house un'ess previously marked, in accordance with forms to be prescribed by the State food commissioner, in such a way as to indicate plainly the fact that such article of food is not to be sold or used for human food. The following States have laws containing provisions substantially identical with the above : California, Illinois, Iowa, Louisiana, Maryland, New Jersey, Utah, Wisconsin. The following States have laws similar in subject matter to the above, but different in requirements or effect: Nebraska, North Dakota, Ohio, Pennsylvania. Sec. 7. No person, firm, or corporation shall place, receive, or keep in any cold-storage warehouse in this State articles of food unless the same shall be plainly marked, stamped, or tagged, either upon the container in which they are packed, or upon the article of food itself, with the date when placed therein ; and no person, firm, or corporation shall remove, or allow to be re- moved, such article of food from any cold-storage warehouse unless the same shall be plainly marked, stamped, or tagged, either on the container In which it is inclosed or upon the article of food itself, with the date of such removal, and such marks, stamps, and tags shall be prima facie evidence of such receipt and removal and of the dates thereof. All articles of food in any cold- storage warehouse at the time this act goes into effect shall, before being removed therefrom, be plainly marked, stamped, or tagged with the date when this act goes into effect and the date of removal therefrom. The following States have laws containing provisions substantially iden- tical with the above : Delaware, Illinois, Iowa, Louisiana, Maryland, Utah, Wisconsin. The following States have laws similar in subject matter to the above, but different in requirements or effect: California, Indiana, New Hamp- shire, New Jersoy, New York, Ohio, Pennsylvania. Sec. 8. No person, firm, or corporation shall hereafter keep or permit to re- main in any cold-storage warehouse any article of food which has been held in cold storage either within or without the State, for a longer aggregate period than 12 months, except with the consent of the State food commissioner as hereinafer provided. The State food commissioner shall, upon application dur- ing the twelfth month extend the period of storage beyond 12 months for any particular article of food, provided the same is found upon examination to be in proper condition for further cold storage. The length of time for which such further storage is allowed shall be specified in the order granting the per- mission. A report on each case in which such extension of storage may be per- mitted, including information relating to the reason for the action of the State food commissioner, the kinds and amounts of the articles of food for which the storage period was extended, -and the length of time for which this con- tinuance was granted, shall be filed, open to public inspection, in the office of the State food commissioner, and shall be included in his annual report. Such extension shall be not more than 60 days ; a second extension of not more than 60 days may be granted upon a reexamination, but the entire extended period shall be not more than 120 days in all. The following States have laws containing provisions substantially identical with the above: California, Iowa, Louisiana, Maryland, Massa- chusetts, Nebraska, New Hampshire, North Dakota, Utah, Wisconsin. 450 COLD-STORAGE LEGISLATION. The following States have laws similar in subject matter to the above, but different in requirements or effect : Delaware, Illinois, Indiana, New Jersey, New York, Pennsylvania. Sec. 9. It shall be unlawful to sell, or to offer for sale, any article of food which has been held for a period of 30 days or over in cold storage either with- in or without the State, without notifying persons purchasing, or intending to purchase, the same, that it has been so held, by the display of a placard plainly and conspicuously marked, " Cold-storage goods " on the bulk mass or articles of food : and it shall be unlawful to represent or advertise as fresh any article of food which has been held in cold storage for a period of 30 days or over. The following States have laws containing provisions substantially identical with the above: California, Illinois, Iowa, Louisiana, Mary- land, New Jersey, Pennsylvania, Wisconsin. . The following States have laws similar in subject matter to the above, but different in requirements or effect : Massachusetts, Nebraska, New York, Utah. Sec. 10. It shall be unlawful to return to any cold-storage warehouse any article of food which has been once released from storage for the purpose of plac- ing it on the market for sale. It shall be unlawful to transfer any article of food from one cold-storage warehouse to another if such transfer is made for the purpose of avoiding any provision of this act, and such transfer shall be un- lawful unless all prior stampings, markings, and laggings upon such article shall remain thereon. The following States have laws containing provisions substantially identical with the above: California, Illinois, Iowa, Louisiana, Massa- chusetts, Nebraska, New Jersey, Utah, Wisconsin. The following States have laws similar in subject matter to the above, but different in requirementas or effect: Delaware, New Hampshire, New York, North Dakota, Ohio, Pennsylvania. Sec. 11. The State food commissioner may make all necessary rules and regulations to carry this act Into effect. Such rules and regulations shall be filed in the commissioner's office, and shall not take effect until days after such filing. The following States have laws containing provisions substantially identical with the above : California, Illinois, Iowa, Maryland, Massa- chusetts, New Hampshire, New Jersey, North Dakota, Pennsylvania, Utah, Wisconsin. The following States have laws similar in subject matter to the above, but different in requirements or effect : Indiana, Nebraska. Sec. 12. Any person, firm, or corporation violating any provision of this act shall be guilty of a misdemeanor and shall upon conviction be punished for the first offense by a fine not exceeding $ and for the second or any subsequent offense by a fine not exceeding $ , or by imprisonment of not more than six months, or by both such fine and imprisonment, in the dis- cretion of the court. Sec. 13. This act shall be so Interpreted and construed as to effect its gen- eral purpose to make uniform the law of those States which enact it. Sec. 14. This act may be cited as the Uniform Cold Storage Act. Sec. 15. All acts or parts of acts Inconsistent with this act are hereby re- pealed. Laws or the Vaeious States Governing the Coid Storage of Food Products. ALABAMA. No. 469. An act to prescribe and fix license or privilege taxes. (1915 General Acts, 489, 498.) ' 29. Each person engaged In the cold-storage business shall pay an annual license according to the following schedule: For a refrigerating capacity of 50,000 and not more than 100,000 cubic feet, $25 ; for a refrigerating capacity of 100,000 and not more than 200,000 cubic feet, $50 ; for a refrigerating capacity of 200,000 cubic feet or more, $100 ; each person, firm, or corporation operating a refrigerating pipe line for the purpose of refrigerating the rooms, premises, goods, wares, or merchandise of others for profit, $75. COLD-STOKAGE LEGISLATION. 451 AKIZONA. [Session Laws of Arizona, 1915. Chap. 23, p. 56.] AN ACT Relating to the sale of cold-storage eggs. Be it enacted by the Legislature of the State of Arizona: Section 1. Every person, firm, company, or corporation who sells or offers for sale any eggs that have been in cold storage for a longer period than three months shall before so doing cause to be stamped, marked, or branded upon all sides of each receptacle holding and containing the same, in black- face letters 2 inches in length, the period of time during which the same have been in cold storage. Sec. 2. Every person, firm, company, or corporation selling or offering for sale any eggs that have been in cold storage for a longer period than tliree months shall display in a conspicuous place in his or their salesroom a sign bearing the words " Oold-storage eggs sold here " in black-faced letters not less than 6 inches in length upon a white ground. Sec. 3. For the purposes of this act the words person, firm, company, or cor- poration shall include wholesalers, retailers, jobbers and every place where eggs that have been in cold storage for a longer period than three months are solii or offered for sale. Sec. 4. Every person, firm, company, or corporation who shall violate any of the provisions of this act shall be deemed guilty of a misdemeanor, and, upon conviction thereof, shall be punished as provided in misdemeanor cases. Sec. 5. All acts and parts of acts in conflict with the provisions of this act are hereby repealed. Approved March 9, 1915. CALIFOENIA. [Act 624. Approved June 13, 1913. Stats. 1913, p. 769. Amended 1915, p. 601. Amended 1917, p. 152, 153.] AN ACT Relating to cold storage, the regulation of refrigerating warehouses, the disposi- tion of sale of food kept or preserved therein, and defining the duties of the State board of health in relation thereto. Section 1. The term " cold storage " as used in this act shall be construed to mean a place artificially cooled to a temperature of 40° F. or below but shall not include such a place in a private home, hotel, restaurant, or exclusively retail establishment not storing articles of food for other persons. The term " cold stored " as used in this act shall be construed to mean .the keeping of " articles of food " in " cold storage " for a period exceeding 30 days. The term " articles of food " as used in this act shall be construed to mean and in- clude fresh meat and fresh meat products (except in process of manufacture), fresh and dried fruit and vegetables, fish, shellfish, game, poultry, eggs, butter, and cheese. The term " storer " as used in this act shall be construed to mean the person or persons who offer articles of food for cold storage. Sec. 2. Any person, firm, or corporation desiring to operate a cold storage or refrigerating warehouse wherein shall be stored " articles of food " for a period exceeding 30 days, shall make application in writing to the State board of health for that purpose, stating the location of its plant or plants. On receipt of the application the State board of health shall cause an examination to be made into the sanitary condition of said plant or plants and if found to be in a sanitary condition and otherwise properly equipped for the business of cold storage, the State board of health shall cause a license to be issued authorizing the applicant to operate a cold storage or refrigerating warehouse for and during a period of one year. The license shall be issued upon payment by the applicant of a license fee to the State board of health for each and every warehouse or plant operated by the applicant under the provisions of this act for all cold storage or refrigerating warehouses or plants having a capacity of 10,000 cubic feet or less a fee of $15. For all cold storage or refrigerating ware- houses or plants having a capacity of more than 10,000 cubic feet and less than 50,000 cubic feet a fee of $30. For all cold storage or refrigerating warehouses or plants having a capacity of more than 50,000 cubic feet and less than 100,000 cubic feet a fee of $40. For all cold storage or refrigerating warehouses or plants having a capacity of 100,000 cubic feet or more a fee of $50. The secretary of the State board of health shall keep a full and correct account of all fees received under the provisions of this act, and shall, at least 452 COLD-STOEAGE LEGISLATION. once each month, deposit all sucb fees collected with the State treasurer and make a detailed report covering the same to the State controller, and such moneys shall be credited to the appropriation for the support of the pure food and drug laboratory: Provided, however, That nothing in this act contained shall apply to cold storage, or cold storage or refrigerating plants, or ware- houses as herein defined which are maintained or operated by restaurants, hotels, or exclusively i-etail establishments not storing articles of food for other persons. (Amendment approved Apr. 20, 1917. Stats. 1917, p. 152.) Sec. 3. In the event that any place or places, or any part thereof, covered by license, under the provisions of this ac,t shall at any time be deemed by the State board of health to be in an unsanitary condition, it shall be the duty of the State board of health to notify licensee of such condition and upon the failure of the licensee to put said specified place or places, or the specified part thereof, in a sanitary condition within a designated time it shall be the duty of the State board of health to prohibit the use under its license (of) such specified place or places, or part thereof, as it deems in an unsanitary condi- tion until such time as it may put in a sanitary condition. Sec. 4. It shall be the duty of any person, firm, or corporation, licensed to operate a cold storage or refrigeration warehouse to keep an accurate record of the receipts and the withdrawals of the articles of food, and the State board of health shall have free access to these records at any time. Every such person, firm, or corporation, shall, furthermore, submit a quar- terly report to the State board of health, setting forth in itemized particulars quantity of food products held in cold storage. Such quarterly reports shall be filed on or before the 25th day of January, April, July, and October of each year, and the reports so rendered shall show the conditions existing on the first day of the month in which the report is filed. The State board of health shall have the authority to require such reports to be made at more frequent intervals than the times herein specified. If in the judgment of the State board of health more frequent reports shall be needed in the interest of a proper enforcement of this act, or for other reasons affecting the public welfare. Sec. 5. No storer shall place in cold storage any article of food intended for human consumption, if diseased, tainted, or deteriorated so as to injure its keeping qualities, or if not slaughtered, handled, and prepared for storage in accordance with the pure food and sanitary food laws and such rules and regu- lations as may be prescribed by the State board of health for the sanitary preparation of food products for cold storage, under the authority hereinafter conferred. Any article of food if intended for use other than human consump- tion before being cold stored shall be marked by the owner in accordance with forms prescribed by the State board of health, under authority hereinafter conferred, in such a way as to plainly indicate the fact that such articles are not to be sold for human food. Sec. 6. It shall be the duty of the State board of health to inppect and super- vife all cold storage or refrigerating warehouses in this State, and to make such inspections of the entry of articles of food therein as the State board of health may deem necessary to secure proper enforcement of this act. The members of the State board of health or its duly authorized agents, inspectors, or employees, .'hall be permitted access to such establishments and all parts thereof at all reasonable times for purposes of inspection and enforcement of the provisions of this act. The State board of health may also appoint and designate, at such salary, or salaries, as it may designate, such person or persons as it deems qualified to make the inspections herein required. Sec. 7. All articles of food when deposited in cold storage shall be marked plainly on the containers in which they are packed or on the individual article with the date of receipt, in accordance with such rules and forms as may be prescribed by the State board of health, under the authority hereinafter con- ferred ; and when removed from cold storage shall be marked in lilte manner with the date of withdrawal. (Amendment approved Apr. 20, 1917. Stats. 1917, p. 153.) Sec. 8. No person, firm, or corporation as owners or having control shall keep in cold storage any article of food for a longer period than 12 calendar months, except with the consent of the State board of health, as hereinafter provided. The State board of health shall, upon application, grant permission to extend the period of storage beyond 12 months for a particular consign- ment of goods, if the goods in question are found, upon examination, to be in proper condition for further storage at the end of twelve months. The length of time for which further storage is allowed shall be specified in the order COLD-STOKAGE LEGISLATION. 453 granting the permission. A report on each case In which such evtensinn nf storage may be permitted, including information relXg to the reasorfoi the action of the State board of health, the kind and the amoun[ of eoodl for which the storage period was extended, and the length o?Tme for Xh Srate^brrTrhlaTtlf ""^^'^' ^^^^^ "' '^'^'^'^^ ^« the Annual' rS/rT oT^^^ Skc. 9. It shall be unlawful to tell, or to ofCer or expose for sale nncookprt articles of food ^yhich have been cold stored without notifyTngpeVsTnsnu^^ chasing or intending to purchase the same that they have beel kept in co^" storage by the display, in a conspicuous place and upon the articles of food of a sign marked, "These are cold-£tored goods," in type at leaft 2 inched high; and it sliall be unlawful to represent or advertise as fresh goods articles of food ^vhlch have been placed in cold storage articles fv.ff*i -^^- " ®u^" be unlawful to return to cold storage any article of food that has once been released from such .storage and placed on the market &r sale to consumers, but nothing in this section shall be construed to prevent the transfer of goods from one cold-storage or refrigerating warehouse to LTproVfsr'of th^fs^ict"'^" *"^^^^^"- ^^ '^"^ "^^'^ '^^ '^^ P-^°- °^ -fdin'^ IT. r^^y. '■'''P^'*. *° *?^ '^""'^'■y P'-eparation of articles of food for cold storage, the use of marks, tags, or labels, and the display of signs, and the J2 of ?his act "■ '^''" ^' ^™^'^''^ ''^ conviction, as providfd in section Sec. 12 Any person, firm, or corporation violating any of the provisions of this act shall upon conviction be punished for the first ofCense by a fine not ex- ceeding $500, and for the second offense by a fine not exceeding SI 000 or bv mpri.-onment for not more than 90 days, or by both such fine and im'prison- Sec. 13. All acts and parts of acts in conflict herewith are hereby repealed. CONNECTICUT. IPublic acts of the State of Connecticut, January session, 1913. Chap. 105, pp. 1697-1698.] AN ACT Concerning the sale of eggs. Be it enacted iy the Senate and House of Representatives in General Assem- oly convened: Section 1. Every person, firm, or corporation who shall sell or offer for sale any eggs which have been preserved by any artificial process, or which have been kept in storage for more than 15 days, in any place where the temperature IS reduced by means of chemicals or other agents, or which have been incubated for 24 hours or more, shall affix to the package or receptacle containing such eggs, and the package or receptacle in which they are delivered, conspicuously displayed with such eggs a label or placard bearing in plain letters not less than 1 inch in height the words " Cold-storage eggs," or " Preserved eggs," or " Incubated eggs," as the case may be. Sec. 2. No eggs shall be brought in this State that have been held in cold storage, or preserved by any process, or incubated, unless the package con- taining said eggs shall be marked or labeled in accordance with the provisions of this act. Sec 3. Any person who shall fail to comply with the provisions of this act, or who shall knowingly misrepresent the condition or quality of any eggs which have been kept in cold storage, preserved, or incubated, shall be fined not more than $25. Sec. 4. The dairy and food commissioner shall have the same powers with re- spect to the detection and prosecution of any unlawful sales of cold-storage, preserved, or incubated eggs under the provisions of this act as are now con- ferred upon him with reference to the sale of butter, vinegar, or other food products.' 'Food and drugs act approved July 31, 1917, effective Jan. 1, 1908; act approved July H, 1911 ; act approved Aug. 22, 1911 ; act approved Aug. 80, 1911. These acts make no specifle reference to cold storage. 454 COLD-STORAGE LEGISLATION. [Public acts of the State of Connecticut, January session, 1917. Chap. 244, p. 178.] AN ACT Concerning the marking of eggs. Be it enacted by the Senate and House of Representatives in. General Assem- bly convened: Section 1. Any person who shall sell or offer for sale any egg which has been preserved by any artificial process, or which has been kept in storage more than 15 clays in any place where the temperature is reduced by means of chemicals or other agents, or which has been incubated for 24 hours or more, unless such egg shall be plainly stamped with indelible Ink with the words " Cold storage," " Preserved," or " Incubated," as the case may be, shall be fined not more than $25. Sec. 2. This act shall take effect April 1, 1918. DELAWABE. [Revised Code, 1915, pp. 368-371.] Sec. 36. " Food " as used in this article defined. — The term " food," as used in sections 36 to 46, inclusive, of this chapter, shall include any article used for food or drink by man or animal, excepting fruits and fish. Nothing In said sections shall be held to affect or apply to the storing or refrigerating of fruits or fish. (26 Delaware Laws, ch. 177, sees. 1 and 12.) Sec. 37. Storage date marlced on food stored or refrigerated. — ^No person or persons, corporation or corporations, engaged in the business of cold-storage warehousemen, or in the business of refrigerating, shall receive any kind of food, with the exception of fruits or fish, unless the said food or the package containing the same Is branded, stamped, or marked, in some conspicuous place, with the day, month, and year when the same is received for storage or re- frigerating. (26 Delaware Laws, ch. 177, sec. 2.) Sec. 38. Removal of food without date of storage marlced thereon prohib- ited. — ^No person or persons, corporation or corporations, engaged in the business of cold-storage warehousemen, or in the business of refrigerating, within the State of Delaware, shall permit any article of any kind whatsoever, used for food, in the possession of any person or persons, corporation or corporations, engaged In the business of cold-storage warehousemen or refrigerating, to be taken from their possession without first having branded, stamped, or marked on the said stuffs or the package containing the same, in a conspicuous place, the day, month, and year when said foodstuffs or package was received by any person or persons, corporation or corporations, engaged in the business afore- said. (26 Delaware Laws, ch. 177, sec. 3.) Sec. 39. Storage longer than six months forbidden, except upon consent of hoard of health. — ^No person or persons, corporation or corporations, engaged In the business of cold-storage warehousemen or refrigerating within the State of Delaware, shall keep in storage for preservation or otherwise any kind of food or any article used for food for a longer period than six calendar months without the consent, granted as hereinafter provided, by the board of health having jurisdiction, or its duly authorized agents or officers, or except as here- inafter otherwise provided. (26 Delaware Laws, ch. 177, sec. 4.) Sec. 40. Inspection and supervision by health boards; rules and regulations; access; agents. — The State board of health or the local board of health within the limits of any municipal corporation having such local board, is vested with full power and authority to inspect and supervise all places In the State of Delaware now used or hereafter to be used for cold storage or refrigerating purposes ; the members of the board of health having jurisdiction as aforesaid, or the duly authorized agents or employees of said board, shall be permitted access to such place or places and all parts thereof at all times for the purpose of seeing that said place or places are kept and maintained In a clean and sani- tary manner, and for the purpose of determining whether or not the provisions of the laws of this State relating to food stuffs are being complied with. The power or supervision hereby granted shall enable the State board of health as aforesaid to adopt such reasonable rules and regulations as may be determined upon from time to time as essential to the proper protection of the consumer of the commodities kept and preserved in such place or places, and the board of health having jurisdiction as aforesaid may appoint and designate from time to time such person or persons as they deem fit for the purpose of making such in- spection. (26 Delaware Laws, ch. 177, sec. 5.) COLD-STOKAGE LEGISLATION. 455 Sec. 41. Quarterly report to health board by warehousemen. — All persons or corporations engaged in the business of cold-storage warehousemen or in the business of refrigerating in the State of Delaware shall submit a quarterly report to the board of health having jurisdiction as aforesaid upon printed forms to be provided by said board of health, setting forth in Itemized particu- lars the quantitj' of each and every foodstufE in storage or in the control of said person or persons, corporation or corporations; said quarterly report shall be filed on or before the 25th day of January, April, July, and October, of each year, and reports so rendered shall show conditions existing upon the first day of the month in which said report is filed. (26 Delaware Laws, ch. 177, sec. 6.) Sec. 42. Pood kept longer than six months; report of; delivery without health-board certificate forbidden; time extended; time limit. — In the event of any food or any article used for food being kept or maintained in refrigerating or cold-storage places for a longer period than sis months, report of such fact shall be filed by the person or persons, corporation or corporations operating such cold-storage or refrigerating place with the board of health having jurisdic- tion as aforesaid, upon blanks so provided by said board of health upon applica- tion, and no such food or article used for food shall, after the expiration of said period of six months, be delivered to any person or persons, corporation or corporations, without a certificate from the board of health having jurisdiction as aforesaid first had and obtained authorizing such delivery. Power is given to said board of health, or its proper agents, to extend the time when any particular foodstuff or article used for food may be kept, maintained, or pre- served in such place or places, but in no event shall permission be given to keep or maintain or preserve any foodstuff for a longer term than eight months from the date of its reception in such place or places. (26 Delaware Laws, •ch. 177, sec. 7.) Sec. 43. Transfer from one refrigerating warehouse to another forbidden, when. — ^The transfer of any food from one cold-storage or refrigerating ware- house to another for the purpose of evading any provision of this article is pro- hibited. (26 Delaware, ch. 177, sec. 8.) Sec. 44. Food kept longer than prescribed time; how disposed of. — Any food kept or preserved in any cold-storage warehouse or refrigerating place for a longer period than herein provided for shall be sold at public auction by the person or persons, corporation or corporations having the custody of the same, and at the place where the same Is kept or preserved, within 60 days after the time limited for the keeping or preserving thereof, unless said food has been condemned as unfit for use by the board of health having jurisdiction as aforesaid, in which case it shall be destroyed or otherwise disposed of under such conditions as the said board of health may prescribe. (26 Dela- ware Laws, ch< 177, sec. 9.) Sec. 45. Vndraion poultry, etc., storage prohibited — Cold-storage eggs, regu- lations for selling. — No person or persons, corporation or corporations, firm, or agent shall dispose of poultry or game within the State of Delaware that has not been drawn before being placed in cold storage. No person or persons, corporation or corporations, firm, or agent shall dispose of any eggs that have been kept in cold storage except from the original crate or package, said crate to be marked with the date when said eggs were placed in said cold storage or refrigerator. (26 Delaware Laws, ch. 177, sec. 10.) Sec. 46. Violations of this article — Misdemeanors — Penalty. — Any person or persons, corporation or corporations, or officer or officers thereof, violating any of the provisions of sections 36 to 46 ,inclusive, of this chapter shall be guilty of a misdemeanor, and upon conviction thereof shall pay a fine of not less than $100 or more than $1,000, or shall be imprisoned for a term of not less than 60 days or more than 1 year, or shall be sentenced with a fine or imprison- ment or both, in the discretion of the court. (26 Delaware Laws, ch. 1(7, sec. 11.) ILLINOIS. [Filed June 28, 1917. In force July 1, 1917. L. 1917, p. 648.] AN ACT To regulate cold storage of certain articles of food. Be it enacted by the people of the State of Illinois, represented in the General Assembly: ^^,. , ,. „ij „(.„„„„„ .i 54. Definition of terms.— Section 1. For the purpose of this act, cold storage shall mean the storage or keeping of articles of food at or below a temperature 456 COLD-STOKAGE LEGISLATION. above zero of 45° Fahrenheit in a cold-storage warehouse ; " cold-storage ware- house " shall mean any place artificially cooled to or below a temperature above zero of 45° Fahrenheit, in which articles of food are placed and held for 30 days or more ; " article of food " shall mean fresh meat and fresh-meat prod- ucts, and all fish, game, poultry, eggs, and butter. 55. License — Application — Examination — Fee. — Sec. 2. No person, firm, or cor- poration shall maintain or operate a cold-storage warehouse without a license so to do issued by the department of agriculture. Any person, firm, or corpora- tion desiring such a license shall make written application to the department of agriculture for that purpose, stating the location of the warehouse. The department of agriculture thereupon shall cause an examination to be made of said warehouse and, if it be found by him to be in a proper sanitary condi- tion and otherwise properly equipped for its intended use, he shall issue a license authorizing the applicant to operate the same as a cold-storage ware- house during one year. The license shall be issued upon payment of the applicant of a license fee of $25 per annum to the department of agriculture. 56. Revocation of license. — Sec. 3. In case any cold-storage warehouse, or any part thereof, shall at any time be deemed by the department of agricul- ture to be in an insanitary condition, or not properly, equipped for its intended use, he shall notify the licensee of such condition, and upon the failure of the licensee to put such cold-storage warehouse In a sanitary condition or to prop- erly equip the same for its intended use, within a time to be designated by the department of agriculture, he shall revoke such license. 57. Records of articles of food — Monthly reports — Summary. — Sec. 4. Every such licensee shall keep accurate records of the articles of food received in and of the articles of food withdrawn from his cold-storage warehouse, and the department of agriculture shall have free access to such records at any time. Every such licensee shall submit a monthly report to the department of agriculture, setting forth in itemized particulars the quantities and kinds of articles of food in his cold-storage warehouse. Such monthly reports shall be filed on or before the 5th day of each month, and the reports so rendered shall show the conditions existing on the last day of the preceding month reported, and a summary of such reports shall be prepared by the department of agriculture and shall be open to public inspection on or before the 10th day of each month. 58. Inspection and supervision of warehouses — Access — Appointments. — Sec. 5. The department of agriculture shall inspect and supervise all cold- storage warehouses and make such inspection of articles of food therein as he may deem necessary to secure the proper enforcement of this act, and he shall have access to all cold-storage warehouses at all reasonable times. The depart- ment of agriculture may appoint such persons as he deems qualified to make any inspection under this act. > 59. Tainted or diseased food — Marking. — Sec. 6. No article of food intended for human consumption shall be placed, knowingly, received or kept in any cold-storage warehouse if diseased, tainted, otherwise unfit for human con- sumption, or in such condition that it will not keep wholesome for human con- sumption. No article of food, for use other than for human consumption, shall be placed; received, or kept in any cold-storage warehouse unless previously marked, in accordance with forms to be prescribed by the department of agri- culture, in such a way as to indicate plainly the fact that such article of food is not to be sold or used for human food. 60. Marking, stamping, or tagging — Removal of food — Evidence. — Sec 7. No person, firm, or corporation shall place, receive, or keep In any cold-storage warehouse in this State articles of food unless the same shall be plainly marked, stamped, or tagged, either upon the container in which they are packed or upon the article of food itself, with the date when placed therein ; and no person, firm, or corporation shall remove, or allow to be removed, such article of food from any cold-storage warehouse unless the same shall be plainly marked, stamped, or tagged, either on the container In which it is inclosed or upon the article of food itself, with the date of such removal, and such marks, stamps, and tags shall be prima facie evidence of such receipt and removal and of the dates thereof. All articles of food in any cold-storage warehouse at the time this act goes into effect shall, before being removed' therefrom, be plainly marked, stamped, or tagged with the date when this act goes into efEect and the date of removal therefrom. 61. Period of storage — Extension of time — Reports — Power to order removal of food. — Sec. 8. No person, firm, or corporation shall hereafter keep or permit COLD-STORAGE LEGISLATION. 457 to remain in any cold-storage wareliouse any article of food -which has been held in cold storage, either within or without the State, for a longer aggregate period than 12 months, except with the approval of the director of the de- partment of agriculture, as hereinafter provided. The director of the depart- ment of agriculture may, from time to time, upon application in writing, extend the period of storage beyond 12 months for any particular article of food, pro- vided the same is found upon examination by the department of agriculture to be In wholesome condition for further cold storage. The length of time for which such further storage is allowed shall be specified in the order granting the extension. A report on each case in which such extension of storage may be permitted, including information relating to the reason for the action of the said director, the kinds and amounts of the articles of food for which the stor- age period was extended, and length of time for which this extension was granted, shall be filed, open to public inspection, in the office of said director. The director of agriculture shall have power to order any article of food held in cold storage to be removed therefrom before the expiration of the first period of 12 months or before the expiration of any period of extension granted by him for any of the foUovring reasons : (1) That the storage of the article of food beyond the time fixed by the director of the Department of Agriculture in his order of removel will render such article of food unwholesome. (2) That the person, firm, or corporation storing such article of food has entered into a contract, agreement, or understanding for the purpose or with the intent of fictitiously increasing the price of such article of food. (3) That the storage of such article of food is for the purpose or with the intent of fictitiously increasing the price thereof. (4) That the storage of such article of food tends to create a monopoly. (5) That the storage of such article of food tends to restrain or prevent com- petition in this State In the supply or price of such article. Before such article of food shall be ordered removed from storage the director of agriculture shall give at least five days notice in writing of his intention to make such order, and shall accord the person, firm, or corporation receiving such notice a full hearing thereon. 62. When sales unlawful. — Sec. 9. It shall be unlawful to sell, or to offer for sale, any article of food which has been held for a period of 30 days or over in cold storage, either within or without the State, without notifying persons pur- chasing or intending to purchase the same that it has been so held by the dis- play of a placard plainly and conspicuously marked, " Cold-storage goods," on the bulk mass or articles of food ; and it shall be unlawful to represent or ad- vertise as fresh any article of food which has been held in cold storage for a period of 30 days or over. 63. Return of food released for purposes of sale — transfer. — Sec. 10. It shall be unlawful to return to any cold-storage warehouse any article of food which has been once released from storage for the purpose of placing it on the market for sale. It shall be unlawful to transfer any article of food from one cold- storage warehouse to another if such transfer is made for the purpose of avoid- ing any provision of this act, and such transfer shall be unlawful unless all prior stampings, markings, and tagglngs upon such article shall remain thereon. 64. Rules and regulations.— Skc. 11. The Department of Agriculture may make all necessary rules and regulations to carry this act into effect. Such rules shall be filed in the director's office and shall not take effect until five days after such filing. 65. Misdemeanor— penalties.— S^c. 12. Any person, firm, or corporation vio- lating any provision of this act shall be guilty of a misdemeanor and shall upon conviction be punished for the first offense by a fine not exceeding $100 and tor the second or any subsequent offense by a fine not exceeding $500 or by impris- onment of not more than six months, or by both such fine and Imprisonment, in the discretion of the court. 66. Construction of oct— Sec. 13. This act shall be so interpreted and con- strued as to effect its general purpose to make uniform the law of those States which enact it. .„ n ,j c*- 67. How cited.— S^c. 14. This act may be cited as the Uniform Cold btorago Act 68. Repeal— Skg. 15. All acts or parts of acts Inconsistent with this act are hereby repealed. 458 COLD-STORAGE LEGISLATION. INDIANA. [General Laws, 1911, chap. 71. S. 18. Approved Mar. 2, 1911.] AN ACT For the protection of the public health and the prevention of fraud and decep- tion by regulatin.2 cold storage and refrigerating warehouses, the holding of food prod- ucts storod therein and the sale of such products, and defining the duties of the State board of health In relation thereto. PURE FOOD COLD-STORAGE REGULATIONS. Be it enacted by the general assembly of the State of Indiana: Section 1. That all food products which are placed or stored in any cold stor- age or refrigerating warehouse in this State shall be marked, stamped, or tagged, either upon the product itself or on the original package in which it is inclosed, with the date when it is placed oi stored in any such cold storage or refrigerating warehouse ; and all such food products when removed from any such cold storage or refrigerating warehouse shall in addition be marked, stamped or tagged with date when such product was removed from any such cold storage or refrigerating warehouse: Provided, however, That when such products are removed for interstate shipment such marking, stamping, or tag- ging shall not be required. And for the purpose of this act a cold storage or refrigerating warehouse shall be defined as one employing refrigerating ma- chinery or Ice for the pui-pose of refrigeration, whether for public or private use, and shall not apply to ice boxes used for temporary protection only. STORAGE LIMIT. Sec. 2. That all food products which shall be placed or stored in any cold stor- age or refrigerating warehouse after the passage of this act, shall not be kept in such cold storage or refrigerating warehouse for a longer period than nine months after the same has first been placed or stored therein, nor placed or stored in any other cold storage or refrigerating warehouse after nine months from the time when such food products were first placed in a cold storage or refrigerating warehouse: Provided, however. That any meat, fish, butter, cheese, egga, poultry, game, fruits, farm or garden produce, or any other perishable food stuffs which shall have been held in cold storage or refrigerating warehouse for more than nine months shall be reported by the person, firm, or corporation operating such cold storage or refrigerating warehouse to the State board of health, and any such food product shall be Inspected and If found to be unfit lor human food shall be delivered forthwith to and before the nearest circuit or city judge or justice of the peace who shall order that such food product shall be drenched with kerosene oil or rendered into grease and tankage or otherwise made unfit for food, as the court may direct. iFOOD PRODUCTS NOW IN STORAGE. Sec. 3. That all food products now in any cold storage or refrigerating warehouse in this State shall be removed from cold storage and placed upon the market within nine months from the passage of this act. NONRESIDENT STORAGE MARK. Sec. 4. That no food product shall be sold or offered for sale in this State which shall have been placed or stored in any cold storage or refrigerating warehouse outside of this State unless It shall have been marked, stamped, or tagged as provided for in section one of this act. SALES WHEN UNLAWFUL EGGS. Sec. 5. That it shall be unlawful for any person, firm, or corporation to sell or have in its possession with the intent of selling, or offering or exposing for sale any package, box, bale, barrel, tub, or other receptacle in which any meats, fish, eggs, butter, cheese, poultry, game, fruits, farm or garden produce, or any other perishable foodstuffs are packed or contained and which has been taken or removed from any cold storage or refrigerating warehouse, where the stamp showing the date such articles of food were placed in any such cold storage or refrigerating warehouse has been removed, defaced, altered, or de- stroyed, or is not plainly legible, nor shall such person, firm, or corporation sell, either at wholesale or retail, any storage eggs as fresh eggs, and all in- voices shall plainly state whether such eggs are storage or fresh, and when such eggs are sold at retail, in case eggs so sold have been in storage for 30 days, there shall be placed in or on the receptacle containing them, in f"" (JOLD-STORAGE LEGISLATION. 459 view of the public, a card not smaller than inches in width by 6 inches in length, upon wliich shall be printed the words "cold storage," in plain Gothic letters not less than two inches in length, and the wrapper, bag or container In which said eggs are delivered to the purchaser by the retailer shall be plainly stamped with the words " cold storage." RECOKD RECEIPTS AND WITHDRAWALS. Sec. 6. That it shall be tlie duty of any person, firm, or corporation carrying on, engaged in, or conducting a business or storing perishable food or keeping or maintaining a cold storage or refrigerating warehouse where meats, flsh, butter, cheese, eggs, poultry, game, fruits, farm or garden produce, or any other perishable foodstuffs are stored, to keep an accurate record of the receipts and withdrawals of all products so received or withdrawn, and the State board of health shall have free access to these records at any time. LICENSE REQUIRED FEE. Sec. 7. That any person, firm, or corporation desiring to carry on, engage in, or conduct a business of storing perishable food, or to keep, maintain, or operate a cold-storage or refrigerating warehouse where meats, fish, eggs, butter, cheese, poultry, game, fruits, farm or garden produce, or any other perishable foodstuffs are stored, shall make application in writing to the State board of health for that purpose, in which application shall be declared the location at which said business is proposed to be carried on. Upon re- ceipt of the application, the State board of health shall cause an examination to be made into the sanitary condition of the place of business occupied by the applicant. If upon examination said place of business is found to be in a sanitary condition, clean, and suitable for paid purpose, the State board of health shall cause a license to be issued such applicant, authorizing such ap- plicant to carry on said business for and during the period of one year. The said license shall be issued upon payment by such applicant of a license fee of ten ($10) dollars to the treasurer of State. The license fees so paid shall be held by the treasurer of State as a fund for the enforcement of this act, and at the end of each fiscal year the unexpended balance shall revert to the general fund. All disbursements necessary for the carrying out of this act shall be paid by warrant drawn upon the treasurer of State after the filing with the auditor of State all vouchers and bills as now provided for by law. In the event that said place of business shall be conducted in an un- sanitary manner or in a manner contrary to the provisions of this act, it shall be the duty of the State board of health to revoke said license and to close the cold-storage or refrigerating warehouse until such time as it may again be in a sanitary condition, clean, and suitable for use. STATE BOARD OF HEALTH DUTIES. Sec. 8. That it shall be the duty of the State board of health to enforce the provisions of this act and for this purpose the State food and drug commis- sioner, the food inspectors of the State board of health, and the State, county, and city, and town health officers shall have full power at all times to enter every building, room, basement, or cellar occupied or used, or suspected of being occupied or used, as a cold-storage or refrigerating warehouse, and to inspect the premises, and if upon such inspection any cold-storage or refrig- erating warehouse or any employer, employee, or other person is found to be violating any of the provisions of this act, or if the meats, fish, eggs, butter, cheese, poultry, game, fruit, farm or garden products or any other perishable foodstuffs stored therein, are not marked, stamped, or tagged in accordance with the provisions of this act, or are found to be unfit for food, the officer or in.spector making the inspection shall furnish evidence of said violation to the prosecuting attorney of the county or circuit wherein such violations occur, who shall prosecute all persons violating any of the provisions of this act. The State board of health shall adopt such rules as may be necessary to en- force this act, and violation of said rules shall be punished on conviction as set forth in section 9 of this act. PENALTY. Sec. 9. That any person, firm, or corporation violating any of the provisions of this act shall upon conviction be punished for the first offense by a fine of 137690—19 30 460 COLD-STORAGE LEGISLATION. not less than $25 nor more than $50 ; for the second offense, by a fine of not less than $50 nor more than $100; and for the third and subsequent offenses by a fine of $200 and imprisonment in the county jail for not less than thirty (30) nor more than ninety (90) days, and each day on which the cold-storage or refrigerating warehouse is found to be in violation thereof, or the employer, employee, or other person is found to be violating any of the provisions of this act, shall constitute a distinct and separate offense. Sec. 10. All acts and parts of acts in conflict with the provisions of this statute are hereby repealed. IOWA. [1913 Stat, p. 1012.] Sec. 2528-d. Cold storage and refrigeration — terms defined. — ^The term "cold storage " as used in this act shall be construed to mean a place artiflcally cooled to a temperature of 40° Fahrenheit, or below, but shall not Include such a place in a private home, hotel, or restaurant, or to refrigerator cars. The term " cold stored " as used in this act shall be construed to mean the keeping of articles of food in cold storage for a period exceeding 30 days. The term " articles of food " as used in this act shall be construed to mean and include fresh meat, and, fresh meat products except in process of manufacture, fresh fruit, fish, game, poultry, eggs, butter, and other articles intended for human consumption. (35 G. A., ch. 199, sec. 1.) Sec. 2528-dl. License to operate warehouse — application — examination — fee. — Any person, firm, or corporation desiring to operate a cold storage or refrig- erating warehouse, shall make application in writing to the State dairy and food commissioner for that purpose, stating the location of its plant or plants. On receipt of the application the State dairy and food commissioner shall cause an examination to be made into the sanitary condition of said plant or plants, and if found to be in a sanitary condition and otherwise properly equipped for the business of cold storage, the State dairy and food commissioner shall cause a license to be issued authorizing the applicant to operate a cold-storage or refrig- erating warehouse for and during the period of one year. The license shall be Issued upon payment by the applicant of a license fee of $25 to the State dairy and food commissioner, and all licenses shall expire December 31 following the issue thereof. (35 G. A., ch. 199, sec. 2.) Sec. 2528-d2. Conditions warranting suspension of certificate. — In the event that any place or places, or any part thereof, covered by a license, under the provision of this act shall at any time be deemed by the State dairy and food commissioner to be in an insanitary condition, It shall be his duty to notify licensee of such condition, and upon the failure of the licensee to put said specified place of places, or the specified part thereof, in a sanitary condition within a designated time it shall be the duty of the State dairy and food com- missioner to prohibit the use under Its license (of) such specified place or places, or part thereof, as it deems In an insanitary condition until such time as it may be put In a sanitary condition. (35 G. A., ch. 199, sec. 3.) Sec. 2528-d3. Receipt and withdrawal of food — records — quarterly reports. — It shall be the duty of any person, firm, or corporation licensed to operate a cold-storage or refrigeration warehouse to keep an accurate record of the re- ceipts and the withdrawals of the articles of food, and the State dairy and food commissioner' or his assistants shall have free access to these records at any time. Every such person, firm, or corporation shall, furthermore, submit a quarterly report to the State dairy and food commissioner, setting forth in itemized particulars quantity of food products held In cold storage. Such quarterly reports shall be filed on or before the 6th day of January, April, July and October of each year, and the reports, so rendered, shall show the conditions existing on the 1st day of the month in which the report Is filed. The State dairy and food commissioner shall have the authority to require such reports to be made at more frequent intervals than the times herein specified. If in his judgment more frequent reports shall be needed in the 1 " Commission " In enrolled bill. — Editor. COLD-STORAGE LEGISLATION. 461 Interest of a proper enforcement of this act, or for other reasons affecting the public \Yelfare. (35 G. A., ch. 199, sec. 4.) Sec. 252S-d4. Diseased or contaminated food; storing prohibited; laheling. No article of food intended for human consumption shall be placed in cold storage if diseased, tainted or so- deteriorated as to Injure its keeping quali- ties, or if not slaughtered, handled, and prepared for storage in accordance with the pure-food and sanitary-food laws and such rules and regulations as may be prescribed by the State dairy and food commissioner for the sanitary preparation of food products for cold storage, under the authority hereinafter conferred. Any article of food if intended for use other than human consump- tion before being cold-stored shall be marked by the owner in accordance with forms prescribed by the dairy and food commissioner (under authority herein- after conferred) in such a way as to plainly indicate the fact that such articles are not to be sold for human food. (35 G. A., ch. 199, sec. 5.) Sec. 2528-d5. Inspection. — It shall be the duty of the dairy and food commis- sioner or his assistants to inspect and supervise all cold-storage or refrigerating warehouses in this State, and to make such inspection of the entry of articles of food therein as the State dairy and food commissioner may deem necessary to secure proper enforcement of this act. The State dairy and food commis- sioner's employees shall be permitted access to such establishments and all parts thereof at all reasonable times for purposes of inspection and enforcement of the provisions of this act. The said State dairy and food commissioner may also appoint and designate such person or persons as he deems qualified to make the inspections herein required. (35 G. A., ch., 199, sec. 6.) Sec. 2528-d6. Containers; marking. — All articles of food when deposited in cold storage shall be marked plainly on the containers in which they are packed or on, or in connection with, the individual article with the date of receipt, and when removed from cold storage shall be marked with the date of withdrawal, in accordance with such forms as may be prescribed by the State dairy and food commissioner, under the authority hereinafter conferred. (35 6. A., ch. 199, sec. 7.) Sec 2528-d7. Storage period. — No person, firm, or corporation as owner or having control shall keep in cold storage any article of food for a longer period than 12 calendar months, except with the consent of the State dairy food commissioner as hereinafter provided. The State dairy and food commissioner shall upon application grant permission to extend the period of storage beyond 12 months for a particular consignment of goods, if the goods in question are found upon examination to be in proper condition for further storage at the end of 12 months. The length of time for which further storage is allowed shall be specified in the order granting the permission. A report on each case in which such extension of storage may be permitted, including information relat- ing to the reason for the action of the State dairy and food commissioner, the kind and the amount of goods for which the storage period was extended, and the length of time for which the continuance was granted, shall be included in the annual report of the State dairy and food commissioner. (35 G. A., ch. 199, sec. 8.) Sec 2528-d8. Sale of cold-storage goods — Sign disptayed.—lt shall be unlaw- ful to sell, or offer or expose for sale, uncooked articles of food which have been held in cold storage without notifying persons purchasing, or Intending to purchase the same, that they have been so kept, by the display of a sign marked " Cold-storage goods sold here," and it shall be unlawful to represent or advertise as fresh goods articles of food which have been held in cold storage. (35 G. A., chap. 199, sec. 9.) Sec. 2528-d9. Return to storage proMUted. — It shall be unlawful to return to cold storage any article of food that has once been released from such storage and placed on the market for sale to consumers, but nothing in this section shall be construed to prevent the transfer of goods from one cold- storage or refrigerating warehouse to another, provided that such transfer is not made for the purpose of evading the provisions of this act. (35 G. A., chap. 199, sec. 10.) Sec. 2528-dlO. Rules and regulations.— The State dairy and food commis- sioner may make rules and regulations to secure a proper enforcement of the provisions of this act, including rules and regulations with respect to the sanitary preparation of articles of food for cold storage, the use of marks, tags, or labels, and the display of signs, and the violation of such rules shall be 462 COLD-STOEAGE LEGISLATION. punished on conviction, as provided in section twelve of tliis act. (35 G. A., cliap. 199, sec. 11.) Sec. 2528-dll. Penalties. — Any person, firm, or corporation violating any of tlie provisions of. tliis act shall, upon conviction, be punished for the first offense by a fine of not less than $25 nor more than $100, and for the second offense by a fine not less than $100 nor more than $500, or by imprisonment for not more than six months, or by both such fine and imprisonment. (35 G. A., chap. 199, sec. 12. ) Sec. 2528-dl2. Acts in conflict repealed. — All acts and parts of acts conflict- ing with the provisions of the statute are hereby repealed. (35 G. A., chap. 199, sec. 13.) [Chap. 3 87.] AN ACT To prohibit the sale of refrlgo-rated undrawn slaughtered poultry, game, and fish, and for the protection of slaughtered fresh meats, and providing penalties for violation thereof. Be it enacted iy the Legislature of the State of Kansas: Section 1. That every person who shall offer or expose for sale at retail, for human food, at any public market, store, shop, or house, or in or about any street or other public place, any s'aughtered domestic or wild fowls, rabbits, squirrels, or other small animals, wild or tame, that have been preserved by refrigeration or cold storage, unless the entrails, crops, and other offensive parts are properly drawn and removed, shall be guilty of a misdemeanor, and upon conviction shall be subject to a fine of not less than $50 nor more than $100 for each offense. Sec. 2. That every dealer in slaughtered fresh meats, fish, fowl, or game for human food, at wholesale or retail, at any established place, or as a peddler in the transportation of such food from place to place to custimers, shall protect the same from dust, flies, and other vermin or substance which may injuriously affect it, by secureley covering it while being so transported. Every viola- tion of this provision shall be a misdemeanor punishable by a fine of not less than $10 or by imprisonment in the county jail for not less than 10 days. (1909 Stats., sees. 3095-3096.) LOUISIANA. [Act 98 of 1906.] Be it enacted by the General Assembly of the State of Louisiana: Section 1. That the State board of health for the State of Louisiana be, and is hereby, authorized and empowered, in order to further carry Into effect article 297 of the constitution of 1898, to revise the sanitary code provided for by section 3 of act 192 of 1898, and to incorporate therein rules and regula- tions governing the manufacture, sale, and inspection of foods, liquors, water, and drugs within the State, in so far as the same may affect the public health ; to fix standards of purity ; to provide for the collection of samples and the entering of premises for this purpose ; to provide for the establishment of a laboratory for the analysis of foods, liquors, drugs, and waters; to employ an analyst and assistants, and fix and pay their compensation ; and to do all other acts as may be requisite and proper to carry this act into effect. Provided, That as a standard of purity and strength for drugs, chemicals, and medicines, the said board shall adopt the United States Pharmacopoeia and the National Formulary as to all drugs, chemicals, and medicines therein contained and treated of ; and the board shall renew said adoption as often as new or revised edition of the said Pharmacopoeia and National Formulary are issued. Sec 2. Be it further enacted, etc., That the power to further revise and amend said sanitary code is hereby conferred on said State board of health for the State of Louisiana : Provided, That any provision or amendments adopted by said board shall, before going into effect, be promulgated in the same manner as is required by existing law for the sanitary code. Sec. 3. Be it further enacted, etc., That any person violating any of the pro- visions of said sanitary code shall on conviction by any court of competent jurisdiction be fined not less than $10 nor more than $200 for the first offense ; not less than $25 nor more than $400 for the second offense ; not less than $50 nor more than $500, or imprisonment for not less than 10 days nor more than 6 months, or both, in the discretion of the court, for each subsequent offense. COLD-STOKAGE LEGISLATION. 463 Sec. 4. Be it further enacted, etc., That all fines imposed under the provi- sions of this act shall be paid into the treasury of the State, to the credit of the general fund. Sec. 5. Be it further enacted, etc.. That it shall be the duty of the president of said board to make an annual report to the governor of the operations of said board of health under this act. Sec. 6. Be it further enacted, etc.. That this act shall take effect from and after its promulgation, and all laws or parts of laws inconsistent or in conflict with the provisions of this act be, and the same are hereby, repealed. [Food and drug regulations, effective July 1, 1913, p. 21.] Regulation 39. Cold storage.— 1. The term " cold storage " as used in these regulations shall be construed to mean a place artificially cooled to a tempera- ture of 40° Fahrenheit or below, but shall not include such a place in a private home, hotel, or restaurant, or refrigerator cars. The term " cold stored " as used in these regulations shall be construed to mean the keeping of " articles of food " in " cold storage " for a period exceed- ing 30 days. The term " articles of food " as used in these regulations shall be construed to mean and include fresh meat and fresh-meat products, except in process of manufacture, fresh food fish, game, poultry, eggs, and butter. 2. Any person, firm, or corporation desiring to operate a public cold-storage or refrigerating warehouse shall make application in writing to the Louisiana State Board of Health for that purpose, stating the location of its plant or plants. On receipt of the application, the State food commissioner shall cause an examination to be made into the sanitary condition of said plant or plants, and if found to be in a sanitary condition and otherwise properly equipped for the business of cold storage, the State food commissioner shall cause a permit to be issued authorizing the applicant to operate a cold-storage or refrigerating warehouse for and during the period of one year. 3. In the event that any place or places, or any part thereof, covered by a permit under the provisions of these regulations shall at any time be deemed by officials of the State board of health to be in an insanitary condition, it shall be the duty of the State food commissioner to prohibit the use under its permit of such specified place or places, or part thereof, as is deemed in an insanitary condition, until such time as it may be put in a sanitary condition. 4. It shall be the duty of any person, firm, or corporation permitted to operate a cold-storage or refrigerating warehouse to keep an accurate record of the receipts and the withdrawals of the articles of food, and the officials of the State board of health shall have free access to these records at any time. Every such person, firm, or corporation shall, furthermore, submit a quarterly report to the State board of health, setting forth in itemized particulars the quantity of food products held in cold storage. Such quarterly reports shall be filed on or before the 6th day of January, April, July, and October of each year, and the reports so rendered shall show the conditions existing on the 1st day of the month in which the report is filed. The State food commissioner shall have authority to require such reports to be made at more frequent intervals than the time herein specified, if in his judgment more frequent reports shall be needed in the interest of the proper enforcement of these regu- lations or for other reasons affecting the public welfare. 5. No article of food intended for human consumption shall be placed in cold storage if diseased or tainted or deteriorated so as to injure its keeping quali- ties, or if not slaughtered, handled, and prepared for storage in accordance with the sanitary code of Louisiana and such rules and regulations as may be prescribed by the Louisiana State Board of Health for the sanitary preparation of food products for cold storage. Any article of food if intended for use other than human consumption, before being cold stored, shall be marked by the owner in accordance with forms prescribed by the Louisiana State Board of Health in such a way as to plainly indicate the fact that such articles are not to be sold for human food. 6. It shall be the duty of the Louisiana State Board of Health to inspect and supervise all cold-storage or refrigerating warehouses in this State, and to make such inspection of the entry of articles of food therein as it may deem neces- sary to secure proper enforcement of these regulations. The authorized officials, inspectors, and other employees shall be permitted access to such establishments and all parts thereof at all reasonable times for purposes of inspection and en- forcement of the provisions of these regulations. UUi-iU-STUHAUJi 7. All articles of food when deposited in cold storage shall be marked plainly on the containers in which they are placed or on or in connection with the indi- vidual article with the date of receipt, and when removed from cold storage, shall be marked with the date of withdrawal in plain letters in a conspicuous place. 8. No person, firm, or corporation as owners or having control shall keep in cold storage any article of food for a longer period than 12 calendar months, ex- cept with the consent of the State food commissioner. The State food commis- sioner may upon application grant permission to extend the period of storage be- yond 12 months for a particular consignment of goods, if the goods In question are found upon examination to be in propef condition for further storage at the end of 12 months. The length of time for which further storage is allowed shall be specified in the order granting the permission. A report on each case in which such extension of storage may be permitted, including information relating to the reason for the action of the officials of the State board of health, the kind and amount of goods for which the storage period was extended, and the length of time for which the continuance was granted, shall be included in the report of the State food commissioner. 9. It shall be unlawful to sell or to offer or expose for sale uncooked articles of food which have been held in cold storage without notifying persons purchas- ing, or intending to purchase the same that they have been so kept by the dis- play of a sign marked " Cold Storage Goods Sold Here," and it shall iDe unlaw- ful to represent or advertise as fresh goods articles of food which have been held in cold storage. 10. It shall be unlawful to return to cold storage any article of food that has once been released from such storage and placed on the market for sale to con- sumers, but nothing in this section shall be construed to prevent the transfer of goods from one cold-storage or refrigerating warehouse to another, provided tliat such transfer is not made for the purpose of evading any provision of these regulations. MAEYT.ANt. [Laws of Maryland, 1916, ch. 163, p. 281, ff.] AN ACT » • * Regulating cold storage of certain articles of food. Section 1. Be it enacted hy the General AssemUy of Maryland, That the fol- lowing 12 sections be added to article 43, to follow section 177 H as codified in Bagby's Code of 1911, and to be known as sections 177 I, 177 J, 177 K, 177 L, 177 M, 177 N, 177 O, 177 P, 177 Q, 177 R, 177 S, 177 T. Cold storage. — Sec. 177 I. For the purpose of this act, " cold storage " shall mean the storage or keeping of articles of food at or below a temperature above Kero of 45° F. in a cold-storage warehouse ; " cold-storage warehouse " shall niean any place artificially cooled to or below a temperature above zero of 45° v., in which articles of food are placed and held for 30 days or more ; " articles of food " shall mean fresh meat and fresh meat products and all fish, game, poultry, eggs, and butter. Sec. 177 J. No person, firm, or corporation shall maintain or operate a cold storage warehouse without a license so to do issued by the secretary of the State board of health. Any person, firm, or corporation desiring such a license .shall make written application to the secretary of the State board of health for that purpose, stating the location of the warehouse. The secretary of the State board of health thereupon shall cause an examination to be made of said warehouse and, if it be found by It to be in a proper sanitary condition and otherwise properly equipped for its intended use, it shall issue a license author- izing the applicant to operate the same as a cold-storage warehouse during one year. The license shall be issued upon payment by the applicant of a license fee of $25 to the treasurer of the State. Sec. 177 K. In case any cold-storage warehouse, or any part thereof, shall at tiny time be deemed by the secretary of the State board of health to be in an unsanitary condition, or not properly equipped for its intended use, it shall notify the licensee of such condition and upon the failure of the licensee to put such cold-storage warehouse in a sanitary condition or to properly equip the same for its intended use, within a time to be designed by the Secretary of the State board of health, it shall revoke such license. Sec. 177 L. Every such licensee shall keep accurate records of the articles of food received in and of the articles of food withdrawn from his cold-storage -warehouse, and the Secretary of the State board of health shall have free access to such records at any time. Every such licensee shall submit a monthly report to the Secretary of the State board of health, settling forth in Itemized particulars the quantities and kinds of articles of food in his cold-storage ware- house. Such monthly reports sliall be filed on or before the 5th day of each month, and the reports so rendered shall show the conditions existing on the last day of the preceding month reported, and a summary of such reports shall be prepared by the secretary of the State board of health and shall be open to public inspection on or before the 10th day of each month. Sec. 177 M. The secretary of the State board of health shall inspect and supervise all cold-storage warehouses and make such inspection of articles •of food therein as it may deem necessary to secure the proper enforcement of this act, and it shall have access to all cold-storage warehouses at all reason- able times. The secretary of the State board of health may appoint such per- sons as it deems qualified to make any inspection under this act. Sec. 177 N. No article of food intended for human consumption shall be placed, received knowingly, or kept in any cold-storage warehouse, if diseased, tainted, otherwise unfit for human consumption, or in such condition that it will not keep wholesome for human consumption. No article of food for iise other than for human consumption shall be placed, received, or kept in any cold-storage warehouse unless previously marked, in accordance with forms to be prescribed by the secretary of the State board of health, in such a way as to indicate plainly the fact that such article of food is not to be sold or used for human food. Sec. 177 O. No person, firm, or corporation shall place, receive, or keep In any cold-storage warehouse in this State articles of food unless the same shall be plainly marked, stamped, or tagged, either upon the container in which they are packed, or upon the article of food Itself, with the date when placed therein ; and no person, firm, or corporation shall remove, or allow to be removed, such article of food from any cold-storage warehouse unless the same shall be plainly marked, stamped, or tagged, either on the container in which it is inclosed or upon the article of food Itself, with the date of such removal, and such marks, stamps, and tags shall be prima facie evidence of such receipt and re- moval and of the dates thereof. All articles of food In any cold-storage ware- house at the time this act goes into effect shall, before being removed there- from, be plainly marked, stamped, or tagged with the date when this act goes into effect and the date of removal therefrom. Sec. 177 P. No person, firm, or corporation shall hereafter keep or permit to remain In any cold-storage warehouse any article of food which has been held in cold storage either within or without the State for a longer aggre- gate period than 12 months, except with the consent, of the secretary of the State board of health as hereinafter provided. The secretary of the State board of health shall, upon application during the twelfth month, extend the period of storage beyond 12 months for any particular article of food, provided the same is found upon examination to be in proper condition for further cold storage. The length of time for which such further storage is allowed shall be specified in the order granting the permission. A report on each case in which such extension of storage may be permitted, including information relating to the reason for the action of the secretary of the State board of health, the kinds and amounts of the articles of food for which the storage period was extended, and the length of time for which this continuance was granted, shall be filed, open to public inspection, in the office of the secretary of the State board of health, and shall be included In its annual report. Such extension shall not be more than 60 days ; a second extension of not more than 60 days may be granted upon a reexamination, but the entire extended period shall not be more than 120 days in all. j, j, a Sec. 177 Q. It shall be unlawful to sell, or to offer for sale, any article of food which has been held for a period of 30 days or over in cold storage either withm or without the State, without notifying persons purchasing, or mtending to purchase, the same, that it has been so held by the display of a placard plainly and conspicuously marked " Cold Storage Goods," on the bulk mass or articles of food ; and it shall be unlawful to represent or advertise as fresh any article of food which has been held in cold storage for a period of 30 days or over. Sec 177 R. It shall be unlawful to return to any cold-storage warehouse any article of food which has been once released from storage for the purpose of placing it on the market for sale. It shall be unlawful to transfer any article of food from one cold storage warehouse to another if such transfer is made 466 COLD-STORAGE LEGISLATION. for the purpose of avoiding any provision of this act, and such transfer shall be unlawful unless all prior stampings, markings, and laggings upon such article shall remain thereon. Sec. 177 S. The secretary of the State board of health may make all necessary rules and regulations to carry this act into effect. Such rules and regulations shall be filed in the secretary of the State board of health's office, and shall not take effect until 30 days after such filing. Sec. 177 T. Any person, firm, or corporation violating any provision of this act shall be guilty of a misdemeanor and shall upon conviction be punished for the first offense by a fine not exceeding $100 and for the second or any subse- quent offense by a fine not exceeding $500 or by imprisonment of not more than six months, or by both such fine and imprisonment In the discretion of the court. Sec. 2. And he it further enacted, That this act shall be so interpreted and construed as to effect Its general pui"pose to make uniform the law of those States which enact it. Sec. 3. And be it further enacted, That this act may be cited as the uniform cold storage act. Sec. 4. And lie it further enacted, That all acts or parts of acts Inconsistent with this act are hereby repealed. Approved April 4, 1916. MASSACHUSETTS. [Laws of 1912, p. 711.] AN ACT To regulate the cold storage of certain food products. Section 1. The term " cold storage," as used in this act, shall be construed to mean the storage of articles of food at or below a temperature of 45° F. for a period of 30 days or more. The term " cold-storage or refrigerating warehouse," as used in this act, shall be construed to mean an establishment employing refrigerating machinery or Ice for the purpose of refrigeration, or a place otherwise artificially cooled, in which articles of food are stored for 30 days or more at a temperature of 45° F. or below. The term " article of food," as used In this act, shall be interpreted to In- clude fresh meat, fresh meat products, except in process of manufacture, fresh food fish, poultry, eggs, and butter. Sec. 2. No person, firm, or corporation shall maintain a cold-storage or re- frigerating warehouse without a license issued by the State department of health. Any person, firm, or corporation desiring such a license may make written application to the department, stating the situation of its plant or plants. On receipt of the application the department shall cause an examination to be made of the sanitary condition of the plant, and if it is found to be In a sanitary condition and otherwise properly equipped for the business of cold storage, the department shall cause a license to be issued authorizing the ap- plicant to maintain therein a cold-storage or refrigerating warehouse for the period of one year : Provided, That a license fee of $10 shall be paid. The license fees so received shall be paid Into the treasury of the Commonwealth. In case any warehouse licensed under the provisions of this section, or any part thereof, shall be deemed by the State department of health to be conducted in an unsanitary manner, It shall be the duty of the department to close such ware- house or part thereof, until it shall be put in sanitary condition, and the de- partment shall have power also to suspend the license In case the required changes are not made within a reasonable time. Every such licensee shall furthermore submit on or before the 15th day of each month, a report to the State department of health on a printed form to be provided by the depart- ment, stating the quantities of articles of food placed in cold storage during the month preceding, and also the quantities of butter and eggs held on the first day of the month In which the report is filed. (As amended Apr. 5, 1917.) Sec. 3. No article of food .intended for human consumption shall be placed in, or retained in, cold storage if deemed by the State department of health to be diseased, tainted, or otherwise unwholesome. It shall be the duty of the said department to inspect and supervise all cold storage or refrigerating ware- houses in this Commonwealth, and to make such Inspection of the entry or re- tention of articles of food therein as it may deem necessary to secure proper COLDrSTOEAGE LEGISLATION. 467 enforement of this act. The members of the department, or its duly authorized agents, inspectors, or employees shall be permitted access to such establish- ments and all parts thereof at all reasonable times for purposes of such in- spection and enforcement, or for the enforcement of any other nrovision of law relating to food products. The department may also appoint and desig- nate such person or persons as it deems qualified to make the inspections herein required. (As amended Mar. 12, 1919.) "cieiu Sec. 4. All articles of food when deposited in cold storage shall be marked plainly with the date of receipt on the containers in which they are packed or, if not packed in containers, on or in connection with the articles excent flsh. ' ^ Sec. 5. No person, firm, or corporation shall hold any article of food in cold storage within this Commonwealth which has been in cold storage for a period longer than 12 calendar months, except with the consent of the State depart- ment of health. The said department may upon application grant permission to extend the period of storage beyond 12 months fof a particular consign- ment of goods, if the goods in question are found upon examination to be in proper condition for further storage at the end of 12 months. The lerigth of time for which further storage is allowed shall be specified in the order grant- ing the permission. A report on each case in which such extension of storage is permitted, including information relating to the reason for the action of the department, the kind and the amount of goods for which the storage period was extended, and the length of time for which the continuance was granted, shall be included in the annual report of the department. (As amended Apr 5. 1917.) Sec. 6. It shall be unlawful to sell, or to offer or expose for sale articles of food which have been held in cold storage without notifying the persons purchasing, or intending to purchase, the same that they have been kept so by the display in a conspicuous place of fe sign marked " cold storage goods sold here," and it shall be unlawful to represent or advertise as fresh goods articles of food which have been held in cold storage. (As amended Apr. 5, 1917.) Sec. 7. It shall be unlawful to return to cold storage any article of food that has once been released from such storage for the purpose of placing it on the market for sale, but nothing in this section shall be construed to pre- vent the transfer of goods from one cold storage or refrigerating warehouse to another, provided that such transfer is not made for the purpose of evading any provision of this act. (As amended Apr. 5, 1917.) Sec 8. Broken eggs packed in cans. If not intended for use as food, when deposited in cold storage shall be denatured, and shall be marked by the own- ers In accordance with forms prescribed by the State department of health under the authority hereinafter conferred In such a way as plainly to indicate the fact that they are not to be sold for food. (As amended Apr. 5, 1917.) Sec. 9. The State board of health may make rules and regulations to secure a proper enforcement of the provisions of this act. Including rules and regula- tions with respect to the use of marks, tags, or labels and the display of signs, and may fix penalties for the breach thereof. Sec. 10. Any person, firm, or corporation violating any provision of this act shall upon conviction be punished for the first offense by a fine not exceeding $100, and for the second offense by a fine not exceeding $500, or, if the offense Is committed by a person acting either in his individual capacity or In behalf of a firm or corporation, by imprisonment for not more than 30 days, or by both such fine and Imprisonment. Sec. 11. All acts and parts of acts inconsistent herewith are hereby repealed. Sec. 12. This act shfll take effect on the 1st day of September, 1912. Approved May 27, 1912. [Acts of 1913, 538.] The sale of eggs taken from cold storage. — Section 1 (as amended by 1914, 545, and by general acts of 1915, 55). Whenever eggs that have been in cold storage are sold at wholesale or retail, or offered or exposed for sale, the basket, box, or other container in which Uhe eggs are placed shall be marked plainly and conspicuously with the words "cold-storage eggs," or there shall be attached to such container a placard or sign having on It the said words. If eggs that have been in cold storage are sold at retail or offered or exposed for sale with- out a container, or placed upon a counter or elsewhere, a sign or placard, hav- ing the words " cold-storage eggs " plainly and conspicuously marked upon it, shall be displayed in, upon, or immediately above the said eggs; the intent of this act being that cold-storage eggs sold or offered or exposed for sale shall be designated in such manner that the purchaser will know that they are cold- storage eggs. The display of the words " cold-storage eggs," as required by this act, shall be in letters not less than 1 inch in height, except that the container in which eggs sold at retail are delivered to the customer may be marked in letters less than 1 inch in height if uncondensed Gothic type is used, but such letters shall in no case be less than one-half inch in height. All marking required by the provisions of this act shall be done in such manner as shall be approved by the commissioner of health. Sec. 2. Violation of any provision of this act shall be punished by a fine of not less than $10 nor more than $500 for each offense. MICHIGAN. [Public acts, 1917, No. 344.] AN ACT To regulate warehouses, cold-storage plants, slaughterhouses, and other places where articles of food are manufactured for sale, received, kept, stored, sold, or offered lor sale, and to provide for enforcement and Inspection. The people of the State of Michigan enact: Section 1. It shall be unlawful to permit filthy or insanitary conditions to exist in the operation of any warehouse, cold-storage plant, slaughterhouse, or other place within the State in which food intended for human consumption is manufactured for sale, slaughtered, received, kept, stored, sold or offered for sale, and it shall further be unlawful to place, receive or keep, or distribute in or from any warehouse, cold-storage plant, slaughterhouse, store, or other place where food products intended for human consumption are kept, any article intended for sale as food if same is diseased, decomposed, putrid, infected, or tainted. Sec. 2. The dairy and food commissioner shall make necessary rules and regulations to carry into effect all legislative enactments pertaining to the manufacture for sale, receiving, keeping, storing, selling, or offering for sale of food products Intended for human consumption, and such commissioner, his deputy or inspectors shall, for the purposes of inspection and to take samples for analysis, have right to entrance to warehouses, cold-storage plants, slaugh- terhouses, and other places where food products are manufactured for sale, placed, received, kept, stored, sold, or offered for sale. Approved May 10, 1917. MINNESOTA. [Ch. 18, H. F. No. 95, 1915 laws.] Section 1. Cold-storage eggs to be laheled. — I^o person, firm, or corporation by himself or his agents shall sell, agree to sell, or advertise for sale any cold- storage eggs without making it known to the purchaser or prospective pur- chaser that the eggs are cold-storage eggs, and all boxes or other receptacles in which cold-storage eggs are sold or delivered, in wholesale or retail, shall be stamped in a conspicuous manner with the words : " Cold-storage eggs." Sec. 2. Dairy and food commissioner to enforce provisions. — The dairy and food commissioner of the State is charged with the proper enforcement of all the provisions of this act. Sec. 3. Violation a misdemeanor. — Whoever shall violate any of the provi- sions of this act shall be deemed guilty of a misdemeanor and on conviction thereof shall be punished by a fine of not less than $25 nor more than $100 or by imprisonment in the county jail for not less than 15 days for each and every offense. Sec. 4. This act shall take effect and be in force from and after its jr.assage. Approved February 25, 1915. NEBRASKA. [Laws, 1913.] COr,D-STORA(JE WAEEHOUSES. 2608. Sec. 83. Definitions. — The term " cold storage " as used in this article f^ball be construed to mean a place artificially cooled to n teniperature of 40° F., or below, but shall uot include such a place In a private home, nor any place having a refrigerating space of less than 100 feet. The term " cold storage " as used in this article shall be construed to mean the keeping of " articles of food " in " cold storage " for a period exceeding 60 days. The term " articles of food " as used in this article shall be constructed to mean and include all articles used for food, drink, confection, or condiment by man or other animal, whether simple, mixed, or compound. 2609. Sec. 84. Cold-storage -warehouse — License. — Any person, tirm, or corpo- ration desiring to operate a cold-storage or refrigerating warehouse, shall make application in writing to the food, drug, dairy, and oil commission for that pur- pose, stating the location of its plant or plants. On receipt of the application, the food, drug, dairy, and oil commission shall cause an examination to be made into the sanitary condition of said plant or plants, and if found to be in a sani- tary condition and otherwise properly equipped for the business of cold storage, the food, drug, dairy, and oil commissioner shall cause a license to be issued authorizing the applicant to operate a cold-storage or refrigerating warehouse for and during the period of one year : Provide^,, AH licenses shall expire on the 31st day of December of the year in which they are issued. The license shall be issued upon payment by the applicant of a license fee of $5 to the treasurer of the State. 2610. Sec. 85. 'Insanitanj places prohihited — Inspection. — In the event that any place or places, or any part thereof, covered by a license, under the provi- sion of this article, shall at any time be deemed by the food, drug, dairy, and oil commissioner to be in an insanitary condition, it shall be the duty of the food, drug, dairy, and oil commissioner to notify licensee of such condition ; and upon the failure of the licensee to put such specified place or places, or the specified part thereof, in a sanitary condition within a designated time, it shall be the duty of the food, drug, dairy, and oil commissioner to prohibit the use under its license such specified place or places, or part thereof, as it deems in an unsanitary condition until such time as it may be put In a sanitary condition. 2611. Sec. 86. Records— Reports. — It shall be the duty of any person, firm, or. corporation licensed to operate a cold-storage or refrigeration warehouse to keep an accurate record of the receipts and the withdawals of the aticles of food, and every such foodstuffs that may have been previously held in storage an accurate record of the length of time of such storage shall be made and pre- served and the food, drug, dairy, and oil commissioner shall have free access *o these records at any time. Every such person, firm, or corporation shall, furthermore, submit a quarterly report to the food, drug, dairy, and oil commis- sioner, setting forth in itemized particulars the quantity of food products held in cold storage. Such quarterly reports shall be filed on or before the sixth day of January, April, July, and October of each year, and the reports so ren- dered shall show the conditions existing on the first day of the month in which the report is filed. The food, drug, d,airy, and oil commissioner shall have the authority to require such reports to be made at more frequent intervals than the times herein specified, if in the judgment of the food, drug, dairy, and oil com- missioner more frequent reports shall be needed in the interest of a proper en- forcement of this article, or for other reasons affecting the public welfare. The reports herein required shall be verified and sworn to by some managing officer or agent of the cold-storage plant or refrigerating warehouse. 2612. Sec. 87. Food, unsanitary. — ^No article of food intended for human con- sumption shall be placed in cold storage if diseased or tainted or deteriorated so as to injure its keeping qualities, or if not slaughtered, handled, and prepared for storage in accordance with the pure food and sanitary food law.s and such rules and regulations as may be prescribed by the food, drug, dairy, and oil commissioner for the sanitary preparation of food products for cold storage, un- der the authority hereinafter conferred. Any article of food, if intended for use other than human consumption, before being cold stored, shall be marked by the owner in accordance with forms prescribed by the food, drug, dairy, and oil commission (under authority hereinafter conferred) in such a way as to plainly indicate the fact that such articles are not to be sold for human food. 2613. Sec. 88. Inspection.— It shall be the duty of the food, drug, dairy, and ■oil commissioner to inspect and supervise all cold-storage or refrigerating ware- houses in this State, and to make such inspection of the entry of articles of food therein as the food, drug, dairy, and oil commissioner may deem neces- sary to secure proper enforcement of this article. The food, drug, dairy, and 470 COLD-STORAGE LpGISLATION. oil commissioner, his deputy, inspectors, or employees shall be permitted access to such establishments and all parts thereof at all reasonable times for purposes of Inspection and enforcement of the provisions of this article. The said food, drug, dairy, and oil commissioner may also appoint and designate such person or persons as it deems qualified to make the inspections therein required. 2614. Sec. 89. Containers — Harking — Recording. — All food, when deposited in any cold-storage or refrigerating warehouse, shall be properly and securely packed in suitable containers and each container shall at the time of deposit be plainly, legibly, and indelibly marked with a correct distinctive serial lot num- ber of such deposit ; said marking to be done under the direction of the operator of the storage so as to readly and certainly identify each item of deposit. Such serial number shall refer to proper records kept by said person, firm, or corpora- tion licensed to operate said cold-storage or refrigerating warehouse ; and it shall be the duty of every such person, firm, or corporation operating said cold-storage or refrigerating warehouse to Ijeep an accurate and full record of said serial lot number of such deposit, together with a complete record showing from whom said articles in storage were received, the number and kind of packages and kind of food, and the place in said cold-storage or refrigerating warehouse where said goods are deposited, and shall keep an accurate and full record of the date of the receipts an withdrawals of such deposits, and shall not remove said deposit from the place designated in said records without making a record thereof. When such food is withdrawn from such storage or refrigerating warehouse, each container thereof shall then in like manner be marked with the true dates of entry and withdrawal. Such markings shall be done under the direction of the operator of the cold-storage or refrigerating warehouse so as to readily and certainly identify each article so deposited: Provided, however, Where the owner of foods or operator of the cold-storage or refrigerating warehouse shall desire to withdraw such goods for consignment and consumption without this State, such operator may deliver such goods to a carrier for shipment without the State without marking thereon the dates of entry and withdrawal as herein required ; but said operator shall keep an accurate record of all such withdrawals that are not so marked and make a full and complete report thereof to the food, drug, dairy, and oil commissioner. 2615. Sec. 90. Length o/ time in storage. — No person, firm, or corporation as owners or having control shall keep in cold storage any article of food for a longer period than 12 calendar months, except with the consent of the food, drug, dairy, and oil commissioner, as hereinafter provided. The food, drug, dairy, and oil commissioner may, upon application, grant permission to extend the period of storage beyond 12 months for a particular consignment of foods, if the foods in question are found, upon examination, to be in proper condition for further storage at the end of 12 months. The length of time for which further storage is allowed shall be specified In the order grant- ing the permission. A report on each case in which such extension of storage may be permitted, incluriug information relating to the rearon for the action of the food, drug, dairy, and oil commissioner, the kind and the amount of goods for which the storage period was extended, and the length of time for which the continuance was granted, shall be included in the annual report of the food, drug, dairy, and oil commissioner. 2616. Sec. 91. Notice to purchasers. — It shall be unlawful to sell, or to offer or expose for Fale, articles of food which have been held in cold storage without notifying persons purchasing or intending to purchase the same that they have been so kept ; and it shall be unlawful to represent or advertise as fresh goods articles of food which have been held in cold ftorage. 2617. Sec. 92. Released food not to lie returned. — It shall be unlawful to return to cold storage any article of food that has once been released from such storage and placed on the market for sale to consumers ; but nothing in this section shall be construed to prevent the transfer of goods from one cold-storage or refrigerating warehouse to another : Provided, Such transfer is not made for the purpose of evading any provision of this article. 2618. Sec. 93. Pood commission — Rules — Regulations. — The food, drug, dairy, and oil commissioner may make rules and regulations to secure a proper en- forcement of the provisions of this article, including rules and regulations with respect to the sanitary preparation of articles of food for cold storage, the use of marks, tags, or label.", and the display of signs, and the violation of such rules shall be punished on conviction as provided in the second next following section. 2619. Sec. 94. Inspections — Fees. — The food, drug, dairy, and oil commis- sioner shall make at least four inspections of each cold-storage warehouse COLD-STOKAGE LEGISLATIOIS". 471 covered by this article, for which said inspections the operators thereof shall pay an annual inspection fee to the ?ald commissioner of $10 for each cold- storage place having a refrigerator space of less than 50,000 cubic feet, aud $2o for each storage place having a refrigerator space of 50,000 cubic feet and less than 100,000 cubic feet, and $50 for each such storage place having a refrigerator space of 100,000 cubic feet or more. 2620. Sec. 95. Violation of article — Penalty. — Any person, firm, or corpora- tion violating any of the provisions of this article shall upon conviction be punished for the first oftense by a fine not exceeding $500 and for the second offense by a fine not exceeding $1,000, or by imprisonment for not more than six months, or by both fine and imprisonment. NEW HAMPSHIBE. [New Hampshire laws, 1917. p. 71.1 AN ACT To regulate the storage, distribution, and sale of cold-storage food. Be it enacted by the Senate and House of Representatives in General Court convened: Section 1. The term " cold storage," as used in this act, shall be construed to mean the storage of articles of food at or below a temperature of 40° F. in cold-storage or refrigerating warehouses. The term " cold-storage " or " refrigerating warehouse," as used in this act, shall be construed to mean an establishment employing refrigerating machinery or Ice for the purpose of refrigeration, or a place otherwise artifi- cially cooled, in which articles of food are stored for 30 days or more at a temperature of 40° F. or below. The term "article of food," as used in this act, shall be interpreted to include fresh meat, fresh meat products except in process of manufacture, fresh food, fish, game, poultry, eag's, and butter. Sec. 2. No person, firm, or corporation shall operate a cold-storage or refrigerating warehouse without a license issued by the State board of health. Any person, firm, or corporation desiring such a license may make written application to the board, stating the location of its plant or plants. On receipt of the application the board shall cause an examination to be made of the sanitary condition of any such plant, and if it is found to be in a sanitary condition and otherwise properly equipped for the business of cold storage, the board shall cause a license to be issued authorizing the applicant to operate a cold-storage or refrigerating warehouse for the period of one year. The license shall be issued upon payment by the applicant of a license fee of $10. In case any warehouse, licensed under the provisions of this section or any part thereof, shall be deemed by the State board of health to be con- ducted in an insanitary manner, it shall be the duty of the board to close such warehouse or part thereof until it shall be put in a sanitary condition, and the board shall have power also to suspend the license in case the required changes are not made within a reasonable time. Every such licensee shall furthermore submit a quarterly report to the State board of health on a printed form to be provided by the board. The report shall be filed on or before the 25th day of January, April, July, and October of each year, and it shall state the quantities of articles of food placed in cold storage during the three months preceding the first day of the said month in which the report is filed. Sec. 3. No article of food intended for human consumption shall be placed in cold storage if deemed by the State board of health to be diseased, tainted, or otherwise unwholesome. It shall be the duty of the State board of health to inspect and supervise all cold-storage or refrigerating warehouses in this State, and to malse such inspec- tion of the entry of articles of food therein as the board may deem necessary to secure proper enforcement of this act. The members of the board, or its duly authorized agents, inspectors, or employees, shall be permitted access to such establishments and all parts thereof at all reasonable times for purposes of inpection and enforcement of the provisions of this act, or of any other pro- vision of law relating to food products. The board may also appoint and desig- nate such person or persons as it deems qualified to make the inspection herein required. Sec. 4. Pending retail sale, all cold-stored foods shall be plainly marked with both the original date of entry into and date of withdrawal from cold storage, 472 COLD-STORAGE LEGISLATION. together with the necessary distinguishing words. ■ Cold-stored articles of food received from outside the state shall be similarly marked with the original date of entry into cold storage and date of withdrawal therefrom. In the case if cold-stored poultry and eggs, which have been removed from the original containers and p|aced upon display, there shall be plainly exhibited in connec- tion therewith a sign, or placard, giving the above required information, in such manner as the State board of health may direct. All retail packages of cold-stored poultry and eggs, as delivered to the purchaser, shall be plainly marked with the words " Cold stored or cold storage." Whenever requested, the dealer shall inform the purchaser as to the dates of original entry and withdrawal. And it shall be unlawful to represent or advertise as fresh goods cold-stored articles of food. Sec. 5. No article of food shall be held in cold' storage for a longer period than 12 calendar months, except with the consent of the State board of health as hereinafter provided. The State board of health may, upon application, grant permission to extend the period of storage beyond 12 months for a par- ticular consignment of goods, if the goods in question are found, upon examina- tion, to be in proper condition for further storage at the end of 12 months. The length of time for which storage Is allowed shall be specified in the order granting permission. A report on each case In which such extension of storage may be permitted, including information relating to the reason for the action of the board, the kind and amount of goods for which the storage period was extended, and the length of time for which the continuance was granted, shall be Included in the annual report of the board. Sec. 6. It shall be unlawful to return to cold storage any article of food that has once been released from such storage for the purpose of placing it on the market for sale to consumers, but nothing in this section shall be construed to prevent the transfer of goods from one cold-storage or refrigerating ware- house to another : Provided, That such transfer is not made for the purpose of evading any provision in this act. Sec. 7. The State board of health is empowered to make all necessary rules and regulations for the enforcement of this act, including rules and regulations with respect to the use of marks, tags, labels, and signs. Any person, firm, company, or corporation violating any provision of this act, or any lawful orders or regulations of the State board of health, duly made as herein pro- vided, or whoever hinders or obstructs any inspector in the pursuit of his lawful duty, shall be deemed guilty of a misdemeanor, and upon conviction shall be punished by a fine of not less than $25 nor more than $200, or by imprisonment not exceeding 60 days, or by both such fine and imprisonment. Sec. 8. All license fees and fines collected under the provisions of this act shall be paid to the secretary of the State board of health, who shall deposit such money with the State treasurer to the credit of a fund to be used toward carrying out the provisions of this act, to be drawn against under the approval of the governor and council. Sec. 9. This act shall take effect September 1, 1917. Approved April 18, 1917. NEW JERSEY. [Act 1916, p. 223.] AN ACT To regulate the cold storage of food and the sale or distrihution of articles of food after cold storage. Be it enacted by the Senate and General Assembly of the State of New Jersey: 1. For the purpose of this act, " cold storage " shall mean the storage or keeping of articles of food at or below a temperature above zero of 45° F. in a cold-storage warehouse ; '• cold-storage warehouse " shall mean any place arti- ficially cooled to or below a temperature above zero of 45° F. in which articles of food are placed or held for -iO days or more ; " articles of food " shall mean fresh meat and fresh-meat products, except In process of manufacture, and all fish, game, poultry, eggs, milk and milk products, and edible fats and oils. The termis " article of food " and " articles of food " as used in this act shall be construed to mean and include fresh meat and fresh-meat products, except in process of manufacture, fresh food fish, game, poultry, eggs, milk and milk products and edible fats and oils. 2. Any person, firm, or corporation desiring to operate or to continue to operate a cold-storage warehouse shall make application in writing to the State COLD-STORAGE LEGISLATION. 473 director of health for that purpose, stating the location of his plant or plants On receipt of the application the State director of health shall cause an exam?: nation to be made into the sanitary condition of said plant or plants and™ lound by him to be in a sanitary condition and otherwise properly equipped for the biisiness of a cold-storage warehouse, he shall cause a license to be issued authorizing the applicant to operate such cold-storage warehouse or warehouses for and during the period of one year. The license shall be issued upon payment by the applicant of a license fee of $10 to the State department of health for each such warehouse. 3. In case any cold-storage warehouse, or any part thereof covered bv a license, under the provisions of this act shall at any time be deemed by the State director of health to be in an unsanitary condition, it shall be his duty to notify the licensee of such condition, and upon the failure of the licensee to put such cold-storage warehouse, or the specified part tliereof, in a sanitarv condition within a time to be designated by him, it shall be the duty of the State director of health to prohibit the use under his license of such cold- storage warehouse, or part thereof, as he deems in an unsanitary condition until such time as it shall be put in a sanitary condition. 4. It shall be the duty of any person, firm, or corporation licensed to operate a cold-storago warehouse to keep an accurate record of the receipts and the withdrawals of the articles of food, and the State director of health and all chemists, inspectors, and employees of the State deparment of health shall have fi-ee access to those records at any time. Every such person, firm, or corporation shall, furthermore, submit a monthly report to the State director of health, setting forth in itemized particulars the quantity of articles of food products held in cold-storage warehouse. Such monthly reports shall be filed on or before the fifth day of the following month, and tlie reports so rendered shall show the conditions existing on the last day of the month reported, and a summary of such reports shall be prepared by the director of health and shall be open to public inspection on or before the tenth day of each month. 5. It shall be the duty of the State director of health to inspect and super- vise all cold-storage warehouses in the State, and to make such inspection of the entry of articles of food therein as he may deem necessary to secure the proper enforcement of this act. The State director of health and all chemists, inspectors, and employees of the State department of health shall be permitted access to such cold-storage warehouse, and all parts thereof, at all reasonable times for purposes of inspection and enforcement of the provisions of this act. The State director of health may also appoint and designate such person or persons as he deems qualified to make the inspection herein required. 6. No article of food intended for human consumption shall be placed, re- ceived, or kept in any cold-storage warehouse if apparently diseased, tained, or so deteriorated in any other way as to injure its keeping. Any article of food, if intended for use other than human consumption, shall be marked by the owner before being placed, received, or kept in any cold-storage warehouse in accordance with the forms prescribed or to be prescribed by the State director of health, under authority hereinafter conferred, in such a way as to plainly indicate the fact that such article is not to be sold for human food. 7. No person, firm, or corporation shall place or store in any cold-storage warehouse in this State articles of food as, herein defined unless the same shall be plainly marked, stamped, or tagged, either upon the container in which they are packed or upon the article of food itself, with the date when placed therein. No person, firm, or corporation shall remove such articles of food from any cold-storage warehouse unless the same shall be plainly marked, stamped, or tagged, either on the container in which it is inclosed or upon the article of food itself, with the date when it is removed from such cold-storage warehouse. 8. No person, firm, or corporation shall keep in any cold-storage warehouse any article of food for a longer period than 12 calendar months, except with the consent of the State director of health as hereinafter provided. The State director of health shall, upon application during the twelfth month, ex- tend the period of storage beyond 12 months for any particular articles of food : Provided, The same are found, upon examination, to be in proper con- dition for further storage. The length of time for which further storage is allowed shall be specified in the order granting the permission. A report on each case in which such extension of storage shall be permitted, including in- formation relating to the reason for the action of the State director of health, the kind and amount of articles of food for which the storage period was 474 COLD-STORAGE LEGISLATION. extended, and the length of time for which the continuance was granted, shall be included in the annual report of the State director of health. 9. It shall be unlawful to sell, or to offer or expose for sale, articles of food which have been held in any cold-storage warehouse for a period of 30 days or over without notifying persons purchasing, or intending to purchase the same, that they have been so kept by the display of a placard conspicuously marked " Cold-storage goods," on the bulk mass or articles of food, and it shall be unlawful to represent or advertise as fresh articles of food which have beei\ held in any cold-storage warehouse for a period of 30 days or over. 10. It shall be unlawful to return to any cold-storage warehouse any article ' of food which has once been released from such storage and placed on tht market for sale to consumers ; but nothing in this section shall be construed to prevent the transfer of goods from one cold-storage warehouse to another : Pro- ■cided, That all prior stamping, marking, and tagging shall remain thereon, and that such transfer is not made for the purpose of evading any provision of this act. 11. The State director of health may make all necessary rules and regu- lations to carry into effect the provisions of this act. 12. Any person who shall violate any of the provisions of section 9 of this act shall be liable to a penalty of not less than ten nor more than fifty dollars for the first offense, and to a penalty of not less than fifty nor more than one hundred dollars for the second offense, and to a penalty of $200 for the third and each subsequent offense. Any person who shall violate any of the provi- sions of this act except the provisions of section 9, shall be liable to a penalty of $100 for the first offense and to a penalty of $200 for the second offense, and to a penalty of $500 for the third and each subsequent offense. 13. Any and all penalties prescribed for violation of any provision of this act shall be recovered in an action of debt by and in the name of the department of health of the State of New Jersey, or by and in the name of any board of health of any municipality of this State, as the case may be, as plaintiff. The plead- ings shall conform in all respects to the practice prevailing in the court in which any such action shall be instituted ; but no pleading or process shall be set aside or invalidated by reason of any formal or technical defects therein if the same contain a statement of the nature of the alleged violation and of the section of this act alleged to have been violated, and upon the attention of the court being called to any such formal or technical defect the same shall be immediately corrected and the said pleading or process amended as a matter of course, and as to all other defects in pleadings or process the same may be amended, in the discretion of the court, as in any other action or proceedings in said court' 14. When judgment shall be rendered against any defendant other than a body corporate, execution shall be issued against his goods and chattels and body without any order of the court for that purpose first had and obtained. If the officer executing any such writ shall be unable to find sufficient goods and chattels of said defendant in his bailiwick to make the amount of said judgment, he shall take the body of the said defendant and deliver him to the keeper of the common jail of said county, there to be detained until dis- charged by the court in which such judgment was obtained, or by one of the justices of the supreme court, when such court or justice shall be satisfied that further confinement will not result in the payment of the judgment and costs. In case judgment shall be rendered against a body corporate, execution shall be issued against the goods and chattels of such body corporate as in other actions of debt. 15. Any penalty recovered in any action brought under the provisions of this act shall be paid to the plaintiff therein. When such plaintiff is the State department of health such penalty shall be paid by such department into the treasury of this State. When such plaintiff is a local board of health such penalty .shall be paid by such local board of health into the treasury of the township, city, borough, town, or other local municipal government within which such local board has jurisdiction. 16. The provisions of this act shall not apply to ice boxes or refrigerators maintained by wholesale or retail grocers. 17. This act shall take effect July 1, 1916. Approved March 16, 1916. 1 As amended by laws of 1918, approved Feb. 6, 1918, pp. 75, 76, chap. 13. COLD-STOEAGE LEGISLATION. 475 NEW YOEK. Sec. 335. Definitions. — The term food as used in this article shall include any article, except nuts, fruits, cheese, and vegetables, used for food by man or animal, and every ingredient of such article. (Added by L. 1911, ch. 335 in effect June 15, 1911.) Sec. 336. Cold-storage food to be marked. — It shall hereafter be unlawful for any person or persons, corporation or corporations engaged in the business of cold-storage warehousemen or in the business of refrigerating, to receive any kind of food unless the said food is in an apparenty pure and wholesome con- dition, and the food or the package containing the same is branded, stamped, or marked in some conspicuous place with the day, month, and year when the same is received in storage or refrigeration. It shall be unlawful for any person or persons, corporation or corporations, engaged in the business o:P cold-storage warehousemen or in the business of refrigerating to permit any article of any kind whatsoever used for food, in the possession of any person or persons, corporation or corporations, engaged in the business of cold-storage warehousemen or refrigerating, to be taken from their possession without first having branded, stamped, or marked on said foodstufEs or the package containing same, in a conspicuous place, the day, month, and year when said foodstuffs or package was removed from cold storage or refrigeration. It shall also be unlawful for any person or persons, corporation or corpora- tions to offer for storage in a cold-storage warehouse, or to place in storage in a cold-storage warehouse any article of food unless the same is in an apparently pure and wholesome condition. (Added by L. 1911, ch. 335, and amended by L. 1914, ch. 414, in effect Apr. 17, 1914.) Sec. 337. Time that cold-storage foods may be kept. — It shall hereafter be unlawful for any person, corporation, or corporations engaged in the business of cold-storage warehousemen or refrigerating, or for any person placing food in a cold-storage warehouse to keep in storage for preservation or otherwise any kind of food or any article used for food a longer period than 12 calendar months. (1918 laws, 1284.) Sec. 338. Powers of State commissioner of health. — The State commissioner of health is hereby vested with full power and authority to inspect and super- vise all places in this State now used or hereafter to be used for cold storage or refrigerating purposes ; the State commissioner of health or his duly author- ized agents or employees shall be permitted access to such place or places and all parts thereof at all times for the purpose of seeing that said place or places are kept and maintained in a clean and sanitary manner, and for the purpose of determining whether or not the provisions of this article or any other act relating to foodstuffs are being complied with. The commissioner of health shall have the power by subpoena or subpoena duces tecum, issued and at- tested by him in his official capacity to require the attendance and testimony before him, or the deputy commissioner, of any person who he may have reason to believe has knowledge of any alleged violation of this article, and the production before him, or the deputy commissioner, of any records, books, papers, and documents for the purpose of investigating any alleged violation of this article. Such subpoenas or subpoenas duces tecum may be served by any per- son over the age of 21 years. No person shall be excused from attending and testifying or producing any records, books, papers, or other documents before said commissioner of health, or the deputy commissioner, upon such investiga- tion upon the ground or for the reason that the testimony or evidence, document- ary or otherwise, required of him may tend to convict him of a crime or subject him to a penalty or forfeiture, but no person shall be prosecuted or subjected to any penalty or forfeiture, for or on account of any transaction, matter, or thing concerning which he may so testify or produce evidence, documentary or other- wise, and no testimony so given or produced shall be received against him upon any criminal action, investigation, or proceeding. Any person who shall omit, neglect, or refuse to attend and testify or to produce any records, books, papers, or documents, if in his power to do so, in obedience to such subpoena or subpoena duces tecum shall be guilty of a misdemeianor. Any person who shall willfully and knovsdngly make any false statement under oath before the com- missioner of health, or the deputy commissioner, concerning a material matter shall be guilty of perjury. The commissioner of health and the deputy com- missioner are hereby authorized and empowered to administer oaths and affirmations in the usual appropriate forms to any person in any matter or 137690—19 31 476 OOLD-STOEAGB LEGISLATION; proceedings authorized as aforesaid alid in all matters pertaining or relating to this article and to take and administer oaths and affimations In the usual appropriate forms, In taking any affidavit or deposition which may be necessary or required by law or by any order, rule, or regulation of the commissioner of health for or In connection with the official purposes, affairs, powers, duties, or proceedings of said commissioner of health, or the deputy commissioner, or for any official purpose lawfully authorized by said commissioner of health. The power of supervision hereby granted shall extend to enable the State commis- sioner of health to adopt such reasonable rules and regulations as may be determined upon from time to time as essential to the proper protection of the consumer of the commodities kept and preserved in such place or places, and the State commissioner of health may appoint and designate from time to time such person or persons as he deems tit for the purpose of making such Inspec- tions. (Added by L. 1911, ch. 335, and amended by L. 1914, ch. 414, in effect Apr. 17, 1914.) • Sec. 339. Reports of toarehousemen. — All persons or corporations engaged in the business of cold-storage warehousemen, or in the business of refrigerating, shall submit reports to the State commissioner of foods and markets upon printed forms to be provided by such commissioner, setting forth in itemized particulars the quantity of eacli and every foodstuif In storage or in the con- trol of said person or persons, corporation or corporations ; said report shall be filed on or before the 5th day of each month, and reports so rendered shall show conditions existing upon the 1st day of the montli in which said report is filed. (1918 Laws, 1284.) Sec. 339-a. Transfers from one warehouse to another. — The transfer of any food from one cold storage or refrigerating warehouse to another for the pur- pose of evading any provisions of this article Is hereby prohibited. (Added by L. 1911, ch. 335, in effect June 15, 1911). Sec. 339-b. Prohibits return of food to cold storage wTien once released for purpose of placing same on market for sale.^-When food has been In cold stor- age or refrigeration and is released therefrom for the purpose of placing the same on the market for sale it shall be in violation of the provisions of this article to again place such food in cold storage or refrigeration. (Added by L. 1911, ch. 335, in effect June 15, 1911.) Sec. 339-c. Prohibits sale of food kept in cold storage without representing fact. — It shall be a violation of the provisions of this article to sell any article or articles of food that' have been kept in cold storage or refrigeration, without representing the same to have been so kept. (Added by L. 1911, ch. 335, in effect June 15, 1911.) Sec. 339-d. Penalties. — Any person or persons, corporation or corporations, or officer or officers theref, viglating any of the provisions of this article shall be guilty of a misdemeanor. The conviction of any corporation shall not oper- ate to relieve any officer or officers, agents or employees of such corporation from prosecution under the provisions of this article. (Added by L. 1911, ch. 335, in effect June 15, 1911.) NOETH DAKOTA. [Laws, 1913.] COt-D-STOEAOB WAREHOUSES. 3149. Definition of terms. — The term " cold storage " as used In this article shall be construed to mean a place artificially cooled to a temperature of 40" F. or below, but shall not Include such a place In a private home, hotel, or. restaurant or refrigerator cars. The term " cold stored " as used in this article shall be construed to mean the keeping of " articles of food " in " cold storage " for a period exceeding 30 days. The term " articles of food " as used In this article shall be construed to mean and Include fresh meat and fresh meat products, except in process of manu- facture, fresh food, fish, game, poultry, eggs, and butter. 3150. License to operate cold-storage warehouse, how obtained — Fee. — Any person, firm, or corporation desiring to operate a public cold storage or refrig- erating warehouse, shall make application in writing to the food commissioner of the experiment station at Fargo for that purpose, stating the location of its plant or plants. On receipt of the applicalon the food commissioner shall cause an examination to be made into the sanitary condition of said plant or COLD-STORAGE LEGISLATION. 477 lilauts, and If found to be in a sanitary condition and otlierwise propwly equipped for tlie business of cold storage, th& food commissioner sliall cause a license to be issued authorizing the applicant to operate a cold storage or re- frigerating warehouse for and during the period of one year. The license shall be issued upon payment by the applicant of a license fee of $10 to the food commissioner. 3151. Suspension of license for unsanitary condition. — In the event that any place or places, or any part thereof, covered by a license, under the provisions of this article, shall at any time be deemed by the food commissioner to be in an unsanitary condition, it shall be the duty of the food commissioner to notify licensee of such condition, and upon the failure of the licensee to put said specified place or places, or the specified part thereof, in a sanitary condition within a designated time, It shall be the duty of the food commissioner to pro- hibit the use under its license of such specified place or places, or part thereof, as he deems in an unsanitary condition until such time as It may be put In a sanitary condition. 3152. Records and reports of food products in storage. — It shall be the duty of any person, firm, or corporation licensed to operate a cold storage or refriger- ating warehouse, to keep an accurate record of the receipts and the withdraw- als of the articles of food, and the food cpmmissloner shall have free access tO' these records at any time. Every such person, firm, or corporation shall, fur- thermore, submit a quarterly report to the food commissioner, setting forth in itemized particular the quantity of food products held in cold storage! Such quarterly reports shall be filed on or before the sixth of January, April, July, and October of each year, and the reports so rendered shall show the conditions existing on the first day of the month in which the report Is filed. The food commissioner shall have the authority to require such reports to be made at more frequent intervals than the times herein specified, if in the judgment of the food commissioner more frequent reports shall be needed In the interest of a proper enforcement of this article, or for other reasons affecting the public welfare. 3153. Cold storage of diseased or tainted articles. — No article of food in- tended for human consumption shall be placed in cold storage if diseased, or tainted, or deteriorated so as to injure its keeping qualities, or if not slaugh- tered, handled, and prepared for storage in accordance with the pure-food and sanitary laws and such rules and regulations as may be prescribed by the food commissioner for the sanitary preparation of food products for cold storage, under the authority hereinafter conferred. Any article of food if intended for use other than human consumption before being cold stored shall be marked by the owner in accordance with forms prescribed by the food commissioner (under authority hereinafter conferred) in such a way as to plainly indicate the fact that such articles are not to be sold for human food. 3154. Inspection and supervision of warehouses. — It shall be the duty of the food commissioner to inspect and supervise all cold-storage or refrigerating warehouses in this State, and to make such inspection of the entry of articles of food therein as the food commissioner may deem necessary to secure proper enforcement of this article. The food commissioner, or his duly authorized agents, inspectors or employees, shall be permitted access to such establish- ments, and all parts thereof, at all reasonable times for purposes of inspection and enforcement of the provisions of this article. The said food commissioner may also appoint and designate such person or persons as he deems qualified to make the inspections herein required. 3155. Date of receipt and withdrawal marked on containers. — All articles of food \ylien deposited In cold storage shall be marked plainly on the containers in which they are packed or on or in connection with the individual article with the date of receipt, and when removed from cold storage shall be marked with the date of withdrawal, in accordance with such forms as may be pre- scribed by the food commissioner, under the authority hereinafter conferred. 3156. Period of allowable cold storage.— 'No person, firm or corporation, as owners or having control, shall keep in cold storage any article of food for a longer period than 12 calendar months, except with the consent of the food com- missioner, as hereinafter provided. The food commissioner may, upon applica- tion, grant permission to extend the period of storage beyond 12 months for a particular consignment of goods, if the goods in question are found, upon exami- nation, to be in proper condition for further storage at the end of 12 months. The length of time for which further storage is allowed shall be specified in 478 COLD-STOEAGE LEGxSLATIOSr. the order granting the permission. A report on each case in which such exten- sion of storage may be permitted, Including information relating to the reason for the action of the food commissioner, the kind and amount of goods for which the storage period was extended, and the length of time for which the continuance was granted, shall be included in the annual report of the food commissioner. 3157. Sale of cold-storage goods regulated. — It shall be unlawful to sell, or to offer or expose for sale, uncooked articles of food which have been held in cold storage without notifying persons purchasing or intending to purcThase the same, that they have been so kept, by the display of a sign marked "Cold- storage goods sold here," and it shall be unlawful to represent or advertise as fresh goods articles of food which have been held in cold storage. 3158. Return of article to cold storage prohibited. — It shall be unlawful to return to cold storage any article of food that has once been released from such storage and placed on the market for sale to consumers, but nothing In this section shall be construed to prevent the transfer of goods from one cold- storage or refrigerating warehouse to another, provided that such transfer is not made for the purpose of evading any provision of this article. 3159. Food commissioner to make rules and regulations. — ^The food commis- sioner may make rules and regulations to secure a proper enforcement of the provisions of this article, including rules and regulations with respect to the sanitary preparation of articles of food for cold storage, the use of marks, tags or labels, and the display of signs, and the violation of such rules shall be pun- ished on conviction as provided in section 3160. 3160. Penalty for violation of provisions. — ^Any person, firm or corporation violating any of the provisions of this article shall, upon conviction, be pun- ished for the first offense by a fine not less than $10 and not more than $100, and for the second offense by a fine of not less than $50 nor more than $500, or by imprisonment for not more than 30 days, or by both such fine and im- prisonment. 3161. What constitutes violation of the law. — The doing of anything prohib- ited by this article shall be evidence of the violation of the provisions of this article relating to the things so prohibited, and the omission to do anything directed to be done shall be evidence of a violation of the provisions of this article relative to the things so directed to be done. OHIO. [1917 laws, p. 594.] Section 1. The term " cold storage," as used In this act, shall mean the stor- age of food at or below a temperature of 40° F. in a cold-storage warehouse. Sec. 2. The term " cold-storage warehouse " as used In this act shall mean a place artificially cooled by the employment of refrigerating machinery or ice or other means, in which articles of food are stored, for 30 days or more, at a temperature of 40° F. or lower. Sec. 3. The term " food " as used in this act shall mean the fresh flesh of ani- mals, and fresh products therefrom, the fresh flesh of fowls, fish, eggs, and butter, which have been stored in a cold-storage warehouse. Sec. 4. The word " container " as used in this act shall betaken to mean any bag, barrel, basket, bottle, box, caddy, can, canister, carton, crate, firkin, hogshead, jar, jug, keg, stopper, vessel, wrapper, frozen bulk, or any similar or analogous utensil, receptacle, band, or wrapper In which food may be kept, stored, sold, or offered for sale. Sec. 5. The word " marked " as used in this act shall be taken to mean writ- ten, printed, stamped, or painted, or any other means whereby words or figures may be indicated in or on a container, or any cover attached thereto. Sec. 6. The term " wholesome " as used in this act shall mean fit for human food. Sec. 7. No person, firm, or corporation shall operate a cold-storage warehouse without a license issued by the secretary of agriculture of Ohio. Such license shall be issued only on written application, stating the location of such ware- house. Upon receipt of the application the secretary of agriculture shall cause an examination to be made into the sanitary condittlon of such warehouse. If it be found to be in a sanitary condition and properly equipped for the purpose of cold storage, the secretary of agriculture shall cause a license to be issued authorizing the applicant to operate a cold-storage warehouse. No license COLD-STORAGE LEGISLATION". 479 shall be issued until the applicant therefor shall have paid to the secretary of agriculture the sum of $50. A license shall be required for each separate ware- house building within the State. Sec. 8. Whenever any warehouse licensed under the provisions of this act, or any portion of such warehouse, shall be deemed by the secretary of agriculture to be in an insanitary condition, it shall be the duty of the secretary to cause such warehouse, or portion thereof, to be closed. Sec. 9. It shall be the duty of every person, firm, or corporation that shall be licensed to operate a cold-storage warehouse to keep an accurate record of the receipts and withdrawals of food therefrom. The agents of the secretary of agriculture shall have free access to such records at all times. It shall be the duty of each person, firm, or corporation licensed to operate a cold-storage ware- house to file in the office of the secretary of agriculture on or before the 6th day of January, April, July, and October, of each year, a report setting forth in itemized form the liind and quantities of food products held in cold storage in such warehouse. The report shall be made on printed forms prepared and supplied by the secretary of agriculture. The secretary of agriculture ma.v cause such other reports to be filed and at such times as it may deem advisable. Sec. 10. It shall be unlawful for any person, firm, or corporation to place in any cold-storage warehouse, to keep therein, or to sell, olfer or expose for sale, any diseased, tainted, or otherwise unwholesome food, or to place in co'd storage any slaughtered animals or parts thereof unless the entrails and other offensive parts have first been properly removed. Sec. 11. All food shall at the time it is deposited in any cold-storage ware- house bear the date of such deposit plainly stamped thereon. Such food shall also bear a stamp Indicating the date of removal. The marking of food as provided In this section shall be under such further regulations as may be prescribed by the secretary of agriculture. Sec. 12. It shall be unlawful for any person, firm, or corporation, or any agent thereof, to sell, or offer or expose for sale, or have in possession with intent to sell at wholesale, any coM-storage food, unless there shall be placed on each container thereof, in a conspicuous place. In full view of the purchaser, a placard with the words " Wholesome Cold-Storage Food " printed thereon, in plain uncondensed gothic letters not less than one-half inch in length. In addi- tion, all such food shall be marked with the date when it is withdrawn from such cold-storage warehouse. There shall also be displayed upon every open container containing such food, in the same manner, in a conspicuous position, in full view of the purchaser, a placard with the words " Wholesome Cold- storage Food " printed thereon in the same form as above described In this section, when such food is sold from such container or otherwise at retail. Sec. 13. No person, firm, or corporation shall sell, or offer, or expose for sale any of the following foods which have been held for a longer period of time than herein specified in a cold-storage warehouse : Whole carcasses of beef, or any parts thereof, 6 months ; who'e carcasses of pork, or any parts thereof, 6 months ; whole carcasses of sheep, or any parts thereof, 6 months ; whole carcasses of lamb, or any parts thereof, 6 months ; whole carcasses of veal, or any parts thereof, 4 months ; dressed fowl, 10 months ; eggs, 10 months ; butter, 9 months ; and fresh fish, 9 months. Sec. 14. After food has been withdrawn from any cold-storage warehouse for the purpose of placing it on the market for sale, it shall be unlawful for any person, firm, or corporation to return such food, or any portion thereof, to such warehouse, or any other similar warehuse. Food may be transferred from one co'd-storage warehouse to another : Provided, That the total length of time such food shall remain in cold storage, for the purpose of sale, shall not exceed the time specified in section 13 of this act. Sec. 15. No food shal' be sold, or offered or exposed for sale, in this State which shall have been placed or stored in any cold-storage warehouse outside of this State, unless it first shall have been marked as provided for in section 12 of this act: Provided, however. That no such food shall be sold, or offered or exposed for sale in this State if the total length of time that such food has remained in cold storage shall exceed the time specified in section 13 of this act. Sec. 16. Nothing in this act shall be construed to prohibit the shipping, con- signing, or transporting of fresh food, in properly refrigerated cars, within this State to points of destination ; nor to prohibit such food, when received, from being held in a cooling room for a period of 48 houijs ; nor to prohibit the keep- ing of fresh food in ice boxes or refrigerators in retail stores while the same is offered or exposed for sale. 480 COLD-STORAGE LEGISLATION. Sec. 17. It shall be the duty of the secretary of agriculture to enforce all the provisions of this act and to make all rules and regulations, not otherwise herein provided, necessary for the enforcement of the same. Sec. 18. That all license fees, fines, and penalties Imposed and recovered for the violation of any of the provisions of this act shall be paid into the State treasury to the credit of the general revenue fund. Sec. 19. Whoever violates any of the provisions of this act shall be guilty of a misdemeanor, and, upon conviction thereof, shall for the first offense be fined not more than $500, and for the second and each subsequent offense not more than $1,000, and, in addition thereto, imprisoned in the jail of the proper county not less than 30 nor more than 90 days, or both. PENNSYLVANIA. [No. 278.] AN ACT Defining cold storage, and regulating time of storage of certain articles of food, and providing penalties for the violation of the provisions of this act. Section 1. Cold storage — Definitions. — Be it enacted, etc., That, for the pur- pose of this act, "cold storage" fliall mean the storage or keeping of articles of food at or below a temperature of 40° F. in a cold-storage warehouse. "Cold-storage warehouse." — " Cold-storage \«irehouse " shall mean any place artificially or mechanically cooled to or below a temperature of 40° F. in which articles of food are placed and held for 30 days or more. "Articles of food." — "Articles of food " shall mean fresh meat, and fresh meat products, and all fresh fish, game, poultry, eggs, and butter. Sec. 2. Application for license. — No person, firm, or corporation shall main- tain or operate a cold-storage warehouse without a license so to do issued by the director of the bureau of foods. Any person, firm, or corporation desiring such a license shall make written application to the director of the bureau of foods for that purpose, stating the location of the warehou' e. Examination of xvarehouse. — The director of the bureau of foods there- upon shall cause an examination to be made of said warehouse, and if it be found by him to be in a proper sanitary condition and otherwise properly equipped for its intended use, he shall issue a license authorizing the applicant to operate the F-ame as a cold-storage warehouse during one year; the license shall be issued upon payment by the applicant of a licensee fee of fifty dollars ($50) to the director of the bureau of foods, and f^hall thereafter be by the director of the bureau of foods paid into the State treasury for the use of the Commonwealth. Sec. 3. Unsanitary condition of warehouse — Revocation of license. — In case any cold-storage warehouse, or any part thereof, shall at any time be deemed by the director of the bureau of foods to be in an unsanitary condition, or not properly equipped for Its intended use, he shall notify the licen' ee of such condition, and upon the failure of the licensee to put such cold-storage ware- house in a sanitary condition or to properly equip the same for its intended use, within a time to be designated by the director of the bureau of foods, he shall revoke such license. Sec. 4. Records of receipts and withdrawals. — ^Every such licensee shall keep accurate records of the articles of food received in, and of the articles of food withdrawn from, his cold-storage warehouse, and the director of the bureau of foods shall have free access to such records at any time. Quarterly reports. — It shall be the duty of such person, firm, or corporation, licensed to operate a cold-storage warehouse, to file in the office of the director of the bureau of foods on or before the 6th day of January, April, July, and October of each year, a report setting forth In Itemized particulars the kinds and quantities of food products held in cold storage in such warehouse. Blank forms. — The report shall be made on printed forms prepared and sup- plied by the director of thp bureau of foods. ' Sec. 5. Inspection and supervision — Right of entry. — The director of the bureau of foods shall inspect and supervise all cold-storage warehouses, and make such inspection of articles of food therein as he may deem necessary to secure the proper enforcement of this act, and he shall have access to all cold- storage warehouses at all reasonable times. Inspectors. — The director of the bureau of foods may appoint such persons as he deems qualified to make such inspections under this act. COLD-STORAGE LEGISLATION. 481 Sec. 6. Unwnolesome food. — It shall be unlawful for any person, firm, or corporation to place in any cold-storaRe warehouse, to keep there;ln, or to sell, offer, or expose for sale, any diseased, tainted, or otherwise unwholesome food.' Sec. 7. Marking — Date of storage — Date of removal — Evidence. — No person, firm, or corporation shall place, receive; or keep, in any cold-storage warehouse in this State articles of food unless the same shall Tae plainly marked, stamped, or tagged, either upon the container in which they are packed or upon the articles of food itself, with the month and year when placed therein; or, In the case of articles, of food being stored in bulk, the month and year of <)riginal storage shall be marked upon the doors or walls of the rooms in which the same are stored ; and when such articles are removed, such month and year shall be marked upon the container in which the same shall be removed ; and no person, firm, or corporation shall remove or allow to be removed such articles of food from any cold-storage warehouse unless the same shall be plainly marked, stamped, or tagged on the container in which it is inclosed or upon the articles of food itself, with the month and year of such removaj.; and such marks, stamps, and tags shall be prima facie evidence of such receipt and removal of the dates thereof. Food in storage at date of act. — All articles of food in any cold-storage ware- house at the time this act goes into effect shall, before being removed therefrom, be plainly marked, stamped, or tagged with the month and year when this act goes into effect. Sec. 8. Period of storage. — No person, arm, or corporation shall sell, offer, or expose for sale, any of the herein-named foods which shall have been held for a longer period of time than herein specified in a cold-storage warehouse or warehouses, to wit : Whole carcasses of beef, or any parts thereof, 12 months ; *hole carcasses of pork, or any parts thereof, 12 months; whole carcasses of sheep, or any parts thereof, 12 months; whole carcasses lamb, or any parts thereof, 12 months; whole carcasses of veal, or any parts thereof, 12 months; poultry, 12 months ; game, 12 months ; eggs, 12 months ; butter, 12 months ; and fish, 12 months. Sec. 9. Sale of cold-storage food — Notice to purchasers — " Fresh " food. — It shall be unlawful to sell, or to offer for sale, any article of food which has been held for a period of 30 days or over in cold storage, either within or without •the State, without notifying persons purchasing or intending to purchase the same that it has been so held, by the display of a placard plainly and conspicu- ously marked " Cold Storage Goods " on the bulk, mass, or articles of food ; and it shall be unlawful to represent or advertise as fresh any article of food which has been held in cold storage for a period of 30 days or over. There shall also be displayed upon every open container containing such food, in a conspicuous position, a placard with the words " Cold Storage Goods " printed thereon; and, when such food is sold from such container or otherwise at retail, before being delivered to the purchaser it shall be wrapped in wrap- pers plainly stiimped on the outside thereof with the words " Cold Storage Goods " printM'or stamped thereon in letters one-fourth inch square. Sec. 10. FooePiwithdrawn for sale shall not 6e replaced — Transfer of food. — It shall be unlawful to return to any cold-storage warehouse any article of food which has been once released from storage for the purpose of placing it on the market for sale, but nothing in this section shall be construed to prevent the transfer of goods from one cold-storage warehouse to another : Provided, That all prior markings, stampings, and taggings upon such articles shall re- main thereon : And provided further. That such transfer is not made for the purpose of evading any provision of this act. Sec. 11. Rtiles and regulations. — The director of the bureau of foods may make the necessary rules and regulations to carry this act into effect. Filing — When effective. — Such rules and regulations shall be filed in the director's office and shall not take effect until 30 days after such filing. Sec. 12. Violations — Penalties. — Any person, firm, or corporation violating any provision of this act shall be guilty of a misdemeanor, and shall, upon convic- tion, be punished for the first offense by a fine not exceeding $200, and for the second or any subsequent offense by a fine not exceeding three hundred dollars ($300), or by an imprisonment of not more than one year, or by both such fine and imprisonment, in the discretion of the court. Sec. 13. Act of May 16, 1913 {P. L. 216), cited for repeal — Repeal. — ^An act approved the 16th day of May, 1913 (Pamphlet Laws, 216), entitled "An act for the protection of the public health and the prevention of fraud and deception by regulating the storage and sale of cold-storage foods, fixing penalties for the 482 COLD-STOEAGE LEGISLATION. violation of the provisions thereof, and providing for the enforcement thereof," and the amendments thereto, and all other acts and parts of acts inconsistent with the provisions of this act, are hereby repealed. Approved the 26th day of June, A. D. 1919. Wm. C. Speotil. The foregoing is a true and correct copy of the act of the general assembly. No. 278. Ctkus E. Woods, Secretary of the Commonwealth. EHODE ISLAND. [1915 laws, p. 59.] AN ACT Relative to the sale of eggs, being an act In amendment o£ and in addition to chapter 183 of the general laws. It is enacted 6j/ the general assembly as follows: Section 1. The term " cold-storage eggs " as used in this act shall be con- strued to mean eggs that have been artificially cooled for 30 days or more at or below a temperature of 40° F., and no other eggs shall be sold as " cold- storage eggs." Sec. 2. Whenever " cold-storage eggs " are sold at wholesale or retail, or offered or exposed for sale, the case, package, box, or other container In which the eggs are placed or delivered shall be marked plainly and conspicuously with the words " cold-storage eggs," or there shall be attached to such container a placard or sign having on It the said words. If " cold-storage eggs " are sold at retail or offered or exposed for sale without a container, or placed upon a counter or elsewhere, a sign or placard having the words " cold-storage eggs " plainly and conspicuously marked upon it shall be displayed in, upon, or im- mediately above the said eggs ; the display of the words " cold-storage eggs " as required by this act shall be in letters not less than 1 inch In height and shall be done in such a manner as Is approved by the board of food and drug commissioners. Sec. 3. Any person, firm, or corporation violating any of the provisions of this act shall be punished by a fine of not less than ten, nor more than one hundred dollars for each offense. Sec. 4. The board of food and drug commissioners shall have the same duties and powers relative to the making of rules and regulations hereunder and rela- tive to the enforcement of this act as is or shall be conferred upon them by chapter 183 of the general laws with reference to other foods. Sec 5. Complaints for the violation of the provisions of chapter 183 of the general laws and any amendments thereof, or additions thereto, may be made by any person, and if made by a member of the board of food and drug commis- sioners said member shall be exempt from giving surety for ^hS on any such complaint. fi Sec. 6. This act shall take effect September 1, 1915, and all ajCts and parts of acts inconsistent herewith are hereby repealed. Approved April 8, 1915. UTAH. [Compiled laws of Utah, 1917, p. 271-273.] U.NIFOEM COLD STORAGE. 840. Terms defined. — For the purpose of this title, " cold storage " shall mean the storage or keeping of articles of food at or below a temperature above zero of 45° F. in a cold-storage warehouse ; " cold-storage warehouse " shall mean any place artificially cooled to or below a temperature above zero of 45° F., in which articles of food are placed and held for 30 days or more; " articles of food " shall mean fresh meat and fresh-meat products and all fish, game, poultry, eggs, and butter. 841. Warehouse license; applications; inspection; fee. — No person, firm, or corporation shall maintain or operate a cold-storage warehouse without a license so to do Issued by the State dairy and food commissioner. Any person, firm, or corporation desiring such a license shall make written application to the State dairy and food commissioner for that purpose, stating the location of COLD-STORAGE LEGISLATION. 483 the warehouse. The State dairy and food commissioner thereupon shall cause an examination to be made of said warehouse, and, if it be found by him to be in a proper sanitary condition and otherwise properly equipped for its intended use, he shall issue a license authorizing the applicant to operate the same as a cold-storage warehouse during one year. The license shall be issued upon payment by the applicant of a license fee of $10 to the treasurer of the State. Dairy and food commissioner, section 1920. 842. Revocation of license. — In case any cold-storage warehouse, or any part thereof, shall at any time be found by the State dairy and food commissioner to be in an insanitary condition, or not properly equipped for its intended use, he shall notify the licensee of such condition, and, upon the failure of the licensee to put such. cold-storage warehouse in a sanitary condition or to properly equip the same for its intended use within a time to be designated by the State dairy and food commissioner, he shall revoke such license. 843. Records of storage; reports; access. — Every such licensee shall keep accurate records of the articles of food received in and of the articles of food withdrawn from his cold-storage warehouse, and the State dairy and food commissioner shall have free access to such records at any time. Every such licensee shall submit a monthly report to the State dairy and food commissioner, setting forth in itemized particulars the quantities and kinds of articles of food in his cold-storage warehouse. Such monthly report shall be filed on or before the 5th day of each month, and the reports so rendered shall show the condi- tions existing on the last day of the preceding month, and a summary of such reports shall be prepared by the State dairy and food commissioner, and shall be open to public inspection on or before the 10th day of each month. 844. Supervision by State dairy and food commissioner. — The State dairy and food commissioner shall inspect and supervise all cold-storage warehouses and make such inspection of articles of food therein as he may deem necessary to secure the proper enforcement of this title, and he shall have access to all cold-storage warehouses at all reasonable times. The State dairy and food commissioner may appoint such persons as he deems qualified to make any inspection under this title. (Dairy and food commissioner, sec. 1920.) 845. Articles not subject to storage. — No article of food intended for human consumption shall be placed, received, or kept in any cold-storage warehouse if diseased, tainted, otherwise unfit for human consumption, or in such condi- tion that it will not keep wholesome for human consumption. No article of food for use other than for human consumption shall be placed, received, or kept in any cold-storage warehouse unless previously marked, in accordance with forms to be prescribed by the State dairy and food commissioner, in such a way as to indicate plainly the fact that such article of food is not to be sold or used for human food. 846. Deposits; markings; removals. — ^No person, firm, or corporation shall place, receive, or keep in any cold-storage warehouse in this State articles of food unless the same shall be plainly marked, stamped, or tagged either upon the container in which they are packed or upon the article of food itself with the date when placed therein ; and no person, firm, or corporation shall re- move or allow to be removed such article of food from any cold-storage ware- house unless the same shall be plainly marked, stamped, or tagged either on the container in which it is inclosed or upon the article of food itself with the date of such removal, and such marks, stamps, and tags shall be prima facie evidence of such receipt and removal and of the dates thereof. All articles of food in any cold-storage warehouse at the time this title goes Into effect shall, before being removed therefrom, be plainly marked, stamped, or tagged with the date when this title goes into effect and the date of removal therefrom. 847. Period of storage; extension; reports; limitations. — No person, firm, or corporation shall hereafter keep or permit to remain in any cold-storage warehouse any article of food which has been held in cold storage either within or without the State for a longer aggregate period than 12 months, except with the consent of the State dairy and food commissioner as hereinafter provided. The State dairy and food commissioner • shall upon application during the twelfth month extend the period of storage beyond 12 months for any particu- lar aritcle of food, provided the same is found upon examination to be in proper condition for further cold storage. The length of time for which such further storage is allowed shall be specified in the order granting the per- mission. A report on each case In which such extension of storage may be permitted, including information relating to the reason for the action of the State dairy and food commissioner, the kinds and amounts of the articles of 484 COLD-STORAGE LEGISLATION. food for which the storage period was extended, and the length of time for which this c-ontinuance was granted shall be filed, open to public Inspection, in the office of the State dairy and food commissioner and shall be included in his annual report. Such extension shall be not more than 60 days ; a second extension of not more than 60 days may be granted upon a reexamination, but the entire extended period shall be not more than 120 days in all. 848. Sales; notices; labels; specifications. — It shall be unlawful to sell, or to ofCer for sale, any article of food which has been held for a period of 90 days or more in cold storage, either within or without the State, without notifying the persons purchasing or intending to purchase the same, that it has been so held, by the display of a placard plainly and conspicuously marked "cold- storage goods " on the bulk mass or articles of food ; and it shall be unlawful to advertise for sale cold-storage goods without stating in the advertisement that said goods are cold-storage products. It shall be unlawful to sell or ofCer fpr sale any cold-storage butter unless the words " cold-storage goods " be plainly printed in uncondensed Gothic type; the letters being not less than one-fourth inch in height in a conspicuous place on the outside of each wrapper or carton. It shall be unlawful for any dealer to sell or offer for sale, cold- storage eggs unless the words " cold-storage goods " be plainly and con- spicuously printed in uncondensed gothic type, letters not less than one-fourth inch in height, in a conspicuous place upon each carton. Amended March 18, 1919. 849. Restorage; change of warehouses ; conditions. — It shall be unlawful to return to any cold-storage warehouse any article of food which has been once released from storage for the purpose of placing it on the market for sale. It shall be unlawful to transfer any article of food from one cold-storage ware- house to another if such transfer is made for the purpose of avoiding any pro- vision of this title, and such transfer shall be unlawful unless all prior stamp- ings, markings, and taggings upon such articles shall remain thereon. 850. Rules and regulations. — The State dairy and food commissioner may make all necessary rules and regulations to carry this title into effect. Such rules and regulations shall be filed in the commissioner's office, and shall take effect five days after such filing. 851. Punishments. — Any person, firm, or corporation violating any provisions of this title shall be guilty of a misdemeanor and shall upon conviction be punished for the first offense by a fine not exceeding $100, and for the second or any subsequent offense by a fine not exceeding $299, or by imprisonment of not more than six months, or by both such fine and imprisonment in the dis- cretion of the court. 852. Construction. — This title shall be so interpreted and construed as to effect its general purpose to make uniform the law of those States which exact it. 853. Citation. — This title may be cited as the Uniform Cold Storage Act. 854. Repeal. — All acts or parts of acts inconsistent with this act are hereby repealed. WISCONSIN. [Wis. Stat., 1917, p. 1343-1345, inclusive.] Definitions. — Section 1684w-l. For the purpose of this chapter "cold storage" shall mean the storage or keeping of articles of food at or below a temperature above zero of 4.5° F. in a cold-storage warehouse ; " cold-storage warehouse" shall mean any place artificially cooled to or below a temperature above zero of 45° F. in which articles of food are placed and held for 40 days or move; " article of food " shall mean fresh meat as defined in section 4601-4a of the statutes, and fresh meat and products, and all eggs, butter, and butter substi- tutes. (1917, c. 428.) License. — Section 1684w-2. No person, firm, or corporation shall maintain or operate a cold-storage warehouse without a license so to do, issued by the dairy and food commissioner. Any. person, firm, or corporation desiring such license shall make writen application to the dairy and food commissioner for that purpose, stating the location of the warehouse. The dairy and food com- missioner thereupon shall cause an examination to be made of said warehouse and, if it be found by him to be in a proper sanitary condition and otherwise properly equipped for its intended use, he shall issue a license authorizing the applicant to operate the same as a cold-storage warehouse during one year upon payment to the State treasurer by the applicant of a license fee COLD-STORAGE LEGISLATION. 485 as follows: For a warehouse located in a city of tlie first class $40- for a warehouse located in a city of the second class, $30 ; for a warehouse located in a city of the third class, $20; and for a warehouse located in a city of the fourth class, $10. (1917, c. 428.) SwnitaUon.— Section 1684w-3. In case any cold-storage warehouse or any part thereof, shall at any time be deemed by the dairy and food commissioner to be in an insanitary condition, or not properly equipped for its intended use, he shall notify the licensee of su(!h condition, and upon the failure of the licensee to put such cold-storage warehouse in a sanitary condition or to prop- erly equip the same for its intended use, within a time to be designated by the dairy and food commissioner, he shall revoke such license. (1917, c. 428.) Records and rci)ort.i. — Section 1684w-4. Every such licensee shall keep accu- rate records of the articles of food received in and of the articles of food withdrawn Irom his cold-storage warehouse, and the dairy and food commis- sioner shall have free access to such records at any time. Every such licensee shall submit a monthly report to the dairy and food connnissioner, setting forth in itemized particulars the quantities and kinds of articles of food in his cold-storage warehouse. Such monthlj- reports shall be filed on or before the fifth day of each month, and the reports so rendered shall show the condi- tions existing on the last day of the preceding month reported, and a summary of such reports shall be prepared by the dairy and food commissioner and -shall be open to public inspection on or before the tenth day of each month. (1917, c. 428.) Inspection. — Section 1684 w-5. The dairy and food commissioner .shall inspect and supervise all cold-storage wareh6uses and make such inspection of articles of food therein as he may deem necessary to secure the proper eufone- ment of this chapter, and he shall have access to all cold-storage warehouses at all reasonable times. The dairy and food commissioner may appoint such persv/iis as he deems qualified to make anv inspection under this chapter. (3917, c. 428.) Purity of Foods. — Section 1684w-6. No person, firm, or corporation, as owner, shall knowingly place, receive, or keep in any cold-storage warehouse any article of food intended for human consumption if diseased, tainted, or otherwise unfit for human consumption, or which may not reasonably be expected to keep wholesome for human consumption No person, firm, or corporation, as owner, shall place, receive, or keep in any cold-storage warehouse any article of food for use other than for human consumption, unless previously marked, in accord- ance with forms to be prescribed by the dairy and food commiseioner, in such a way as to indicate plainly the fact that such article of food is not to be sold or used as human food. (1917, c. 428.) Marking dates of reception and removal of foods. — Section 1684w-7. No per- son, firm, "or corporation shall place, receive, or keep in any cold-storage ware- house in this State articles of food unless the same shall be plainly ■ marked, stamped, or tagged, either upon the container in which they are packed or upon the article of food itself, with the date when placed therein ; and no person, firm, or corporation shall remove or allow to be removed, such article of food from any cold-storage warehouse unless the same shall be plainly marked, stamped, or tagged, either on the container in which it is inclosed or upon the article of food itself, with the date of such removal, and such marks, stamps, and tags shall be prima facie evidence of such receipt and removal and of the dates thereof. All articles of food in any cold-storage warehouse at the time this chapter goes into effect shall, before being removed therefrom, be plainly marked, stamped, or tagged with the date when this chapter goes into effect and the date of removal therefrom. It shall be unlawful for any person, firm, or corporation, except the ultimate consumer or purchaser of such article of &od, to remove, alter, mutilate, or conceal such dates of entry and removal from cold storage. When any package containing such article of food shall be broken and the contents thereof sold by items, or when the said dates are marked, stamped, or tagged upon the article of food itself in bulk, then the seller shall, at the request of the purchaser, correctly state the information required by this section to be placed upon the original package or upon the article of food itself in bulk, upon a tag to be attached to such item before delivering the same to the purchaser. The container from which such article of food is sold shall be in plain view of the purchaser or on demand produced for Inspection by the purchaser. (1917, c. 428.) Time limitation on storage. — Section 1684w-8. No person, firm, or corporation shall hereafter keep or permit to remain in any cold-storage warehouse any 486 COLD-STOEAGE LEGISLATION. article of food which has been held in cold storage either within or without the State, for a longer aggregate period than 12 months, except with the consent of the dairy and food commissioner as hereinafter provided. The dairy and food commissioner may upon application during the twelfth month, extend the period of storage beyond 12 months for any particular article of food, provided the same is found upon examination to be in proper condition for further cold stor- age. The length of time for which such further storage Is allowed shall be speci- fied in the order granting the permission. A report on each case In which such extension of storage may be permitted. Including Information relating to the reason for the action of the dairy and food commissioner, the kinds and amounts of the articles of food for which the storage period was extended, and the length of time for which this continuance was granted, shall be filed, open to public inspection. In the office of the dairy and food commissioner, and shall be included in his annual report. Such extensions shall be not more than 60 days ; a second extension of not more than 60 days may be granted upon a re- examination, but the entire extended period shall be not more than 120 days in all. (1917, c. 428.) Limitation on storage other than cold storage. — Section 1684w-9 : It shall be unlawful to sell, or offer for sale, any article of food which has been held for a period of 40 days or over in cold storage either within or without the State, except as and for " cold-storage goods," and without notifying persons purchaf ing or Intending to purchase the same that it has been so held by the display of a placard plainly and conspicuously marked, " Oold-storage goods," on the bulk mass or articles of food ; and it shall be unlawful to sell, offer for sale, represent, or advertise as fresh any article of food which has been held in cold storage for a period of 40 days or over. It shall be unlawful to sell or to offer for sale, to display, advertise, or to represent in any manner whatso- ever for the purpose of Felling any eggs other than cold storage that have been held for a period of 40 days or over, either within or without the State, without notifying the persons purchasing or intending to purchase the same that they are held eggs. (1917, c. 428.) Poods removed not to &e returned to storage. — Section 1684w-10: It shall be unlawful to return to any cold-storage warehouse any article of food which has been once released from storage for the- purpose of placing it on the market for sale : Provided, however, That the dairy and food commissioner may, upon application, permit eggs and butter to be returned to any cold- storage warehouse, provided the same is found upon examination to be in proper condition for further cold storage. Such return shall be unlawful unless all prior stampings, markings, and taggings upon such article shall re- main thereon. It shall be unlawful to transfer any article of food from one cold-storage warehouse to another contrary to the provisions of this chapter, except with the consent of the dairy and food commissioner, and such transfer shall be unlawful unless all prior stampings, markings, and taggings upon such article shall remain thereon. (1917, c. 428.) Rules and regulations. — Section 1684w-ll : The dairy and food commis- sioner may make all necessary rules and regulations to carry this chapter into effect. Such rules and regulations shall be filed in his office, and shall not take effect until 60 days after such filing. (1917, c. 428.) Penalty. — Section 1684w-12 : Any person, firm, or corporation violating any provision of this chapter shall be deemed guilty of a misdemeanor, and upon conviction thereof shall be punished for the first offense by a fine of not less than $25 nor more than $100, and for the second or any subsequent offense by a fine of not Ic^'S thon $50 nor more than $1,000, or by Imprisonment of not more than six months, or by both such fine and imprisonment in the discretion of the court. (1917, c. 428.) Interpretation. — Section 1684w-13: This chapter shall be so interpreted and construed as to effect its general purpose to make uniform the law of those States which enact it. (1917, c. 428.) Citation. — Section 1684w-14 : This chapter may be cited as the " Uniform Cold Storage Act." (1917, c. 428.) OOLD-STOEAGE LEGISLATION. Committee ok Agriculture, House of Eepresentatives, Monday, August 18, 1919. The committee assembled at 10.30 o'clock a. m., Hon. Gilbert N. Haugen (chairman) presiding. Present: Members of the committee. ******* The Chairman. Shall we have printed as a supplement to the hearings the report of the United States Food Administration for 1918, which contains the Special License Eegulations. Mr. McLaughlin of Michigan. I move that it be printed as part of the hearings. Mr. McLaughlin of Nebraska. I second the motion. Mr. Young. If we authorize the printing of this report it will probably not be authorized by the Senate committee ; if it is printed once, it wUl probably not be printed again. I feel that a matter of such importance ought to be a permanent record. It will be of value a hundred years from now. Mr. VoiGT. As long as it is complete, it should be filed in permanent form. Mr. McLaughlin of Michigan. My idea was to have it all printed, except this itemized list of salaries. The itemized list of salaries is very voluminous. Mr. Lee of Georgia. I would not include in that the list of salaries. The Chairman. Gentlemen you have heard the motion. It has been moved and seconded "That the committee order printed as a supplement to these hearings, in a separate volume, the report of the United States Food Administration for 1918 (Exhibits Nos. A to JJ), excluding the report on personnel and salaries (Exhibits HH and II)." (The motion was unanimously adopted.) (Thereupon the committee proceeded to the consideration of other business.) To the Senate and House of Representatives: As required by section 21 of the act of Congress approved August 10, 1917, under which the Food Administration was created, I trans- mit herewith the annual report of the United States Food Admin- istration for the year ending December 31, 1918. WooDROw Wilson. The "White House, June W, 1919. 487 488 COLD-STOKAGE LEGISLATION. United States Food Administration, Washington, March Ji-, 1919. The Pbesident of the United States, The White House. Dear Mr. President: I hand you herewith the annual report of the United States Food Administration for the year 1918, for trans- mission to Congress, as required by section 21 of the act of Congress approved August 10, 1917, under which the Food Administration was created. This report, as required by the law referred to, covers the whole of the calendar year 1918, and therein differs from the annual reports of the executive departments which cover only the preceding fiscal year. The act states that : " The President shall cause a detailed report to be made to the Congress on the first day of January each year, etc It is, of course, impossible to make a report for the entire year on the first day of the following year, and we have prepared this report as promptly as possible in view of the necessity of including therein a statement of the activities during and financial accounts for the year ending December 31, 1918. Yours, faithfully, Edgar Eickard, Acting for Herbert Hoover., United States Food Administrator. Annual Report of the United States Food Administration for THE Year 1918. To the Congress of the United States: The United States Food Administration herewith submits the fol- lowing report for the year January 1 to December 31, 1918 : Our last annual report covered the period from the creation of the Food Administration on August 10, 1917, to December 31, 1917. At the present time we are able to review our work somewhat more in detail and to set forth certain conclusions as to tlie results attained, but it is quite impracticable within the limits of this report to go into complete detail regarding the varied problems which arose, the innumerable conferences held with the interests concerned in pro- posed regulations, and the voluntary agreements and other arrange- ments and regulations made in controlling and directing the food and feed trades of the United States with their ramifications, and in meeting world shortages and war needs. There are attached hereto as exhibits a full set of the various written rules and regulations, with amendments thereto, which have been issued from time to tiine, and these exhibits will be referred to in connection with the discussion herein of the various measures. Unfortunately for the convenient size of this report, these regulations are voluminous because it was necessary to make a new set of rules and regqlations for each of the trades licensed and to change these rules as conditions changed. But complete information as to the exact measures of regulation and control can only be obtained through an examination of these re.gulations. COLt)-STOEAGE LEGISLATION. 489 In the year 1918 the food situation confronting the United States and the Allies continued to be one of the most serious problems in the conduct of the war. The shortage of shipping resulting from submarine sinkings and the demands from the Army for transports for troops and supplies further emphasized the necessity of supply- ing all possible food requirements of the allied nations from the United States, the nearest and, under the existing conditions, the only feasible source from which food in the quantities necessary might be drawn. Their dependence upon us was so absolute and vital that the meeting of at least their minimum food requirements was clearly one of our first duties to our associates in the war. Yet, with this tremendous drain upon our supplies, we were in constant danger not only of depleting our stocks beyond the point which would insure the fulfillment of our domestic requirements, but also of so deranging our markets that extortionate and speculative prices would generally prevail. The United States Food Administration had been created to assist in dealing with the two great problems thus presented, namely : The assurance of an adequate supply of foodstuffs for our associates in the war and for our Army abroad ; and the assurance of an adequate supply of foodstuffs for our own people and at the same time to protect our people so far as practicable from the dangers of the unusual situation, such as profiteering, uneven distribution, hoarding or expensive or wasteful practices. The basic principle underlying every act of the Food Administra- tion has been the winning of the war. In visualizing the situation it is imperatively necessary to bear in mind the absolutely compelling force of war needs, the continual and ineradicable conflict between the necessity for stimulative prices and the universal desire and our constant effort to prevent price increase, and all as affected by con- stant increases in the wages of labor and every other expense. ORGANIZATION WITHIN THE STATES. The Food Administration was decentralized into the various States as much as possible, and the organization of the Food Administration therefore includes not only the Washington organization but that in each State and Territory as well. There has been a Federal food ad- ministrator in every State and in the District of Columbia,- Hawaii, Porto Kico, and Alaska, and at least one administrator in every county of each State. On the staff of each Federal food administra- tor there has also been an educational director, a home economics director, a State merchant representative, a library director, etc., whose work will be hereinafter referred to. At the time of the signing of the armistice there were approximately 3,200 district and county food administrators. The Federal, district, and county ad- ministrators with the staff members mentioned above served without pay. The actual execution of detailed programs of the Food Adminis- tration has been in the hands of the organizations of the federal food administrators. They have been in fact the representatives ot the Food Administration to the people of their States and Territories. They were concerned with the enforcement of the regulations, with the bringing home to the people of their States the necessity of food 490 COLD-STORAGE LEGISLATION. conservation, and with the administration of any distribution plan such as the sugar certificate plan. The connecting link between the organizations in the several States and the Washington office has been the States Administration Divi- sion of the Washington office, which has been charged with the duty of keeping constantly in touch with the Federal food administrators. The functions of this division may be enumerated as follows : (1) To maintain personal touch with the administrators, including visits to them in their respective States. (2) To keep the administrators informed as to the activities of the Food Administration. This was accomplished by obtaining in- formation from the various divisions at Washington for transmission to the administrators, either in writing or by personal visits. (3) To keep the various divisions of the Food Administration in- formed as to the activities of the Administrators, in order that the divisions might have such information to assist them in their work. (4) To keep each administrator informed as to the activities of the other administrators, so that all might derive benefits from the experience of the administrators as a whole. (5) To be the division of the Food Administration to which the administrators might freely refer their problems. ACTIVllTES. The activities of the Food Administration may be best considered under the following groups : I. Educational work. II. Measures to conserve existing foodstuffs. III. Measures to reduce the cost of distribution from producer to consumer. IV. Measures to secure an equitable distribution of commodities in which a shortage existed and an adequate distribution of all com- modities. V. Measures to stiriiulate production of foodstuffs. VI. Measures concerned with the purchase of foodstuffs for ex- port and for the United States. VII. Miscellaneous activities. I. EDUCATIONAL WOKK. All results in connection with our food problems have depended in the final analysis upon the patriotic cooperation of the people of the United States. It was of vital importance that the people should be informed of the plans and the necessity which called for the exe- cution of those plans. Any food dictatorship was alien to our insti- tutions, for we were dealing with a people accustomed to assuming individual responsibility for governmental problems. The task of food administration was therefore to assemble the voluntary effort of the whole people and direct this effort along the lines determined upon. Even the effectiveness of the measures of control over the distributing trades under the licensing section of the food-control law, although sustained by penal provisions, rested principally upon the intelligent understanding and patriotic cooperation of the trades concerned, rather than upon their fear of the penalties provided. COLD-STOEAGE LEGISLATION. i91 For these reasons the basis of all the efforts of the Food Administra- < ion has been the educational work which has preceded and accom- panied its measures of conservation and regulation. Froni the beginning the press of the country has given the Food Administration its most hearty cooperation and, without remunera- tion from the Food Administration, has carried millions of dollars worth of advertising and reading matter for the furtherance of the work. This influence has been supplemented by outdoor advertising and by appeals to schools, churches, women's clubs, public libraries, merchants' associations, fraternal organizations, and other social groups. During the past year, in view of the program of intensive conser- vation and the generally increased activity of the Food Administra- tion, it was found advisable to further decentralize the educational work into the States and to utilize to the fullest extent possible every available means of reaching the people. To this end an educational director was appointed in each State who handled the publicity ma- terial for the Federal food administrator for his State. To cooperate with the educational director there was also appointed in each State a library director and a State merchant representative who gave their attention to the educational work carried on by the libraries and the retail stores, respectively. The public libraries throughout the country rendered a splendid service by the exhibition of Food Administration displays, the distribution of pamphlets and books on food conservation, and in general serving as one of the community centers for the detailed information relative to the food problem. More than 3,000,000 pamphlets and leaflets and 750,000 posters deal- ing with these matters were distributed by the libraries alone during 1918. Of like nature was the service of the retail merchants through- out the country, who have, through window displays and through booths erected in the various stores and devoted to the dissemination of information concerning Food Administration work, reached hun- dreds of thousands daily with a direct appeal for food conservation. The limits of this report do not permit of an enumeration of all the various sources through which the directions and requests of the Food Administration have been carried to the people. So spontane- ous did the contributions of advertising become after the first few months that it has been impossible to keep any accurate account of the money value of the advertising which has been given to the Food Administration. From such records as have been kept, however, a conservative estimate approximates the sum of $18,000,000. This record includes outdoor advertising by bulletin boards and the elec- trical displays, indoor advertising as in railroad and street cars, space in periodicals, newspapers, and other such mediums, but is ex- clusive of moving-picture contributions, Four Minute and other vol- unteer speakers, and other volunteers who would have ordinarily been paid for their services, aniong whom were American artists of national reputation. It is a matter of sincere regret that we are un- able to do more than make general acknowledgment of our apprecia- tion of this enormous aggregate of patriotic assistance. Schools and colleges. — The schools, normal schools, and colleges were other very important mediums utilized for furthering the work of the Food Administration. In cooperation with the Department of Agriculture and the Bureau of Education books and pamphlets 137690— lie 32 492 COLD-STORAGE LEGISLATION. were prepared under the direction of a section of the Food Admin- istration. These books and pamphlets were used as guides for in- struction concerning the food problem and the necessities of the situation. The message thus carried by school children into the homes was an important factor in the observance of Food Administra- tion requests. There has also been in each State a secretary of volun- teer college students working under the direction of the school and college section of the Food Administration and giving special atten- tion to the effective use of the efforts of college women. II. rOOD CONSERVATION. Food-conservation measures have been devoted principally to the saving of wheat, meat, fats, and sugar for shipment to Europe and for anticipated periods of domestic scarcity, and to the elimination of waste in the handling and consumption of all foods. Wheat. — On January 1, 1918, the best estimates seemed to show that there were in the United States 313,000,000 bushels of wheat and flour in terms of wheat not yet shipped from' the mill. The amount required for seeding in the spring was at least 31,000,000 bushels, and the normal consumption about 42,000,000 bushels per month, or 252,000,000 bushels from January 1 to July 1. The balance, 30,000,000 bushels, was less than the safe minimum carry-over, tak- ing into account that probably one-third of this balance would never leave the farm. On the face of the figures there was no exportable surplus. Yet it was vital to the life of the allied nations that at least 75,000,000 bushels be shipped abroad during this period, and that this be saved out of the consumption in the United States. To meet this imperative demand the most rigorous measures were necessary. The most important of these were the following : The facts of the situation were presented to the public and strong appeals made for an immediate response to the call for rigid sacri- fices with respect to the use of wheat. In some parts of the country, largely through voluntary campaigns organized locally, flour was turned back to the Government for distribution, thus releasing an equal quantity for shipment abroad. This campaign in Arkansas, carried on under the direction of the Federal food administrator for that State, resulted in' the return of 40,367 barrels of wheat flour, valued at $442,914 — a sufficient amount to load a special train of 127 freight cars, which was delivered in New Orleans at a cost of about $11.03 per barrel when $11.70 was the market price at that point. In Texas the amount returned was 80,000 barrels. The total flour re- turned in this manner on which actual reports were received amount- ed to 1,025,964 barrels. In some States, under the leadership of the Federal food administrator for the State, successful campaigns were conducted for the pledging of the entire population to use no wheat until the 1918 harvest. This campaign started in Oklahoma and was notably successful in Texas, where a no-wheat basis was adopted in the early part of May. A voluntary conservation campaign among hotels and public eating places was responsible for a very definite saving, especially by the larger hotels. It is estimated that during the first six months of 1918 there was saved through the hotels in the United States the equiva- lent of about 2,400,000 bushels of wheat. On March 28 in response to an COLD-STOEAGE LEGISLATION. 49Jj appeal from the Food Administration 500 leading hotel and restau- rant men voluntarily pledged themselves to refrain from the use of all wheat products in their establishments, and this was followed by similar pledges from more than 4,000 other hotels and restaurants. Through the cooperation of the Railroad Administration dining cars also promptly subscribed to the wheatless program. The efforts of the men's clubs in various cities is deserving of special mention as a contribution by the men to the fine results obtained. Between October 1, 1917, and August 1, 1918, hotels, restaurants, dining cars, and clubs of the country effected a saving equivalent to more than 50,000,000 pounds of flour and wheat products. Compulsory regulations were also put in force when the need for greater conservation became apparent in January. The flour mills were required to raise their percentage of extraction to 74 per cent and to eliminate altogether the sale of patent flours. During the period from January 1 to November 8, 1918, the flour mills ground approximately 407,525,782 bushels of wheat and produced 91,528,282 barrels of flour. On the normal ratio of 71 per cent the flour production from this grind would have been 88,592,567 barrels, so that this may be considered a definite saving of 2,935,721 barrels of flour, equivalent to 13,504,316 bushels of wheat. For the crop year July 1, 1917, to June 30, 1918, reports show that the flour mills made 114,032,547 barrels of flour from 523,085,067 bushels of wheat. On February 3, 1918, the bakers also were required to use 5 per cent of substitute flour in all bread, and this amount was increased to 20 per cent in February 24, and between the dates May 3 and September 21, to 25 per cent. On September 21 the percentage was reduced to 20 per cent, and on November 15, 1918, the rule requiring the use of substitutes was canceled. . The prewar monthly consumption of flour by bakers in baking bread was approximately 3,000,000 barrels, and as the total output of bread by bakers has increased only slightly, it is estimated that these bakers' restrictions effected a saving at the rate of at least 15' per cent for the eight and one-half months to November 15, or a total of 3,825,000 barrels, or 16,830,000 bushels of wheat. In addition to the use of flour in bread, over 900,000 barrels were normally used each month in the manufacture of other bakery products such as crackers and cake, breakfast cereals, macaroni and miscellaneous foods. Eules were promulgated requiring such manu- facturers to limit their consumption of wheat flour to 70 per cent of the amount used in 1917 for the same purpose. This regulation was more difficult to enforce but the cracker bakery reports disclose that during the six-months period from February to July, 1918, inclusive, the wheat flour allotment of the industry was 1,220,100 barrels and that of this amount there was actually consumed only 1,015,719 barrels. The normal consumption of the cracker bakers would have been approximately 1,743,000 barrels, so that there was a total saving of wheat flour by the cracker bakers for the six- months period of about 727,000 barrels. Over 50 per cent of the flour used in this country is used in home baking. Some substitute requirement affecting the home baker was necessary. Regulations were accordingly issued about February 1, 1918, requiring that no dealer or miller sell wheat flour to an indi- vidual consumer without an equal amount of wheat flour substitutes. 494 COLD-STOEAGE LEGISLATION, The substitute list included all substitute flours, corn meal, corn grits, oatmeal, and rice. The normal consumption of these substitutes amounted to approximately 35 per cent of the wheat flour normally used, and it was estimated that the 50-50 rule would mean substitu- tion by the householder for approximately 25 per cent of the wheat flour formerly used. From reports received from dealers it appears that the effect of the rule, combined with voluntary saving, was even more pronounced than this. This rule was also repealed on Novem- ber 15, 1918, since the changed condition brought about by the armis- tice rendered further retention unnecessary. On February 21, 1918, a three-quarters of a pound loaf was added to the specific weights for bakfed bread, and a campaign to substitute this three-quarters of a pound loaf for the 1 -pound loaf contributed to the voluntary conservation. On April 14 hotels were required to serve no more than 2 ounces of Victory bread to 1 person at a meal. The Food Administration Grain Corporation organized a Grain Thrashing Division for the purpose of helping to eliminate waste- ful practices and negligence in thrashing and the resulting losses of wheat. The Department of Agriculture through its county agents and our own State and county administrators actively cooperated in this. The interest and assistance of the thrashermen and of thrash- ing machine manufacturers added to the effectiveness of the work. The Federal food administrators of 17 States have given estimates of the saving of wheat effected totaling 20,000,000 bushels. The administrators of 12 other States without giving figures reported that the saving effected in their States was very large. The expenses of the Grain Thrashing Division amounted to approximately $55,000, and accepting 20,000,000 bushels as a very conservative estimate of the amount of wheat saved, the money saving amounted to approxi- mately $44,000,000. The success of the various measures for the conservation of the 1917 wheat crop is strikingly shown by the following figures : We entered the crop year with a wheat supply which gave us only about 20,000,- 000 bushels available for export. By December 1, 1917, our surplus had gone overseas and an additional 36,000,000 bushels had been shipped to the allies. In January we learned of the further impera- tive need of the allies of 75,000,000 bushels. We responded by send- ing 85,000,000 bushels between the first of the year and the advent of the new crop. When the crop year ended we had sent in all about 136,000,000 bushels of wheat to Europe. We were assisted in these operations by the importation of 28,000,000 bushels of wheat from Australia and the Argentine to supplement our domestic supply, but the out- standing fact was the saving in our domestic consumption, most of which was accomplished in the six months' period from January 1 to July 1, 1918. The amount of wheat exported for the calendar year 1918 was 223,746,651 bushels made up as follows: Bushels. To foreign countries 208, 235, 155 To United States Army 14,107,581 To United States territories (11 months only) 1,403,915 OOLD-STOBAGE LEGISLATION, 495 Grain other than wheat.— l^o special campaign was carried on for the conservation of corn, oats, rye, and barley. The transportation difficulties in the winter of 1917-18, the low quality of the 1917 corn crop, and the sudden demand for substitute cereals created by the wheat conservation program, all contributed to create temporary and local shortages and general high prices of substitutes in the spring of 1918, and these conditions were only gradually relieved and readjusted. The action of Congress in prohibiting distilling after September 10, 1917, effected a saying of approximately 40,000,000 bushels of corn, .barley, and rye during the year 1918. A regulation which the Food Administration caused to be issued in December, 1917, prohibited the use of grain in the distillation of alcohol for any purpose, unless such grain was below the quality required by Federal grade No. 6, a quality unfit even for animal consumption. On December 10, 1917, the President issued a proclamation, copy of which was included in our last annual report, limiting the con- sumption of foodstuffs by brewers to 70 per cent of their 1917 con- sumption. The amount consumed in 1917 was equivalent to approxi- mately 46,000,000 bushels of barley, 23,500,000 bushels of corn, and 2,000,000 hundredweight of rice. Maltsters and near-beer manu- facturers were also licensed and subjected to rules limiting their use of grain. A copy of the special license regulations applying to maltsters and near-feeer manufacturers is herein included in Ex- hibit M. In September, 1918, the grain supply outlook called for further restriction on consumption and on September 16, 1918, the President issued a proclamation prohibiting the use after October 1, 1918, of any food or feed, except malt already manufactured, in the production of malt liquor, including near beer. The use of malt already on hand was permitted until December 1, 1918. A copy of this proclamation is hereto attached as Exhibit E. Sugar. — ^The serious shortage which developed in this staple food in the last three months of 1917 emphasized the necessity _ for its conservation, and measures were taken to equalize distribution and promote conservation. It was hoped that the available sugar supply would be sufficient during the year 1918 to meet the normal con- sumption, but as a safeguard, manufacturers of soft drinks and simi- lar articles were directed to reduce their consumption to 80 per cent of the amount used during the first six months of 1917. This re- quirement was not enforced by any certificate plan and it is doubtful whether it was observed by any but the more patriotic manufac- turers. During the spring of 1918 as the tremendous need for ships developed, resulting in withdrawal of tonnage from Cuba and more distant points, it became clear that more serious conservation meas- ures would have to be adopted. On May 15 regulations were issued requiring that sales of sugar to manufacturers of less essential food- stuffs be made only upon presentation of certificates, which certifi- cates were issued by the Federal food administrators in such manner as to limit the consumption by the 'manufacturers from January 1 to July 1, to 80 per cent of the sugar use(i in the same period in 1917. The conditions above referred to continued, and the shortage be- came more serious, ^o that beginning with July 1, 1918, the certifi- cate system of distribution was extended to all buyers of sugar, including wholesalers, retailers, manufacturers, eating houses, and 496 COLD-STOEAGE LEGISLATION. every other buyer except household consumers. It is estimated that by the operation of this certificate system and the voluntary restric- tion of household consumption, a saving of between 400,000 and 600,000 tons of sugar was effected durirtg the calendar year. The saving of sugar by hotels, restaurants, dining cars, and clubs of the country between October 1, 1917, and August 1, 1918 (prin- cipally after April 1, 1918), is estimated at 50,000 tons. On October 30, 1918, owing to receipt of new crop of beet sugar and a new crop of Louisiana cane, with improved railway trans- portation service, it was found possible to modify existing regula- tions and increase the allotment of sugar per capita from 2 pounds per person per month to 3 pounds, with a corresponding increase in the allotment to manufacturers. On November 13 a further modi- fication was announced granting an allowance of 4 pounds per person per month and granting to manufacturers substantially their full requirements. On November 27 all restrictions were removed except that the zoning plan for distribution was continued in force. Fats. — The importance of fats and oils in the diet of the people, together with the scarcity of these products in all the belligerent countries except the United States, caused the Food Administration to lay particular stress upon their conservation. No complete survey of the fat situation had ever been made and under Food Administra- tion control it was necessary to make such a survey with special reference to vegetable oils. With the knowledge of the supply thus obtained, special attention was given to the control of the supply through a control over exports and imports. Through the action of the War Trade Board exports of fats to neutrals were greatly restricted and where allowed were generally limited to the minimum requirements of the importing country. The increased production of animal fats through the stimulation of hog production is hereinafter referred to. A few compulsory measures were adopted to prevent waste in the use of fats. Cotton- seed crushers and refiners were required by regulation to extract the greatest possible amount of edible oil. The use of shortening in bread was limited by the bakery regulations so that no more than two pounds of vegetable shortening could be used to one barrel of flour. The use of lard in bread was entirely forbidden and the amount of fat used in other bakery products was also limited. These regulations merely insured that no more shortening could be used by bakers than was in fact necessary. As elsewhere noted, careful attention was also given to the conservation of fats through the increased utilization of garbage. The conservation of butter also held an important place in the conservation program. The special license regulations referring to vegetable oils will be found in Exhibit Q. Perishable foods.— yhere, has been no general shortage of perish- able foods, but from time to time special situations have arisen threat- ening spoilage of valuable foodstuffs if no action was taken. Thus the transportation difficulties during the winter of 1917-18 resulted in considerable difficulty in marketing potatoes, so that in the spring of 1918 there remained a very considerable amount of the old crop in which a serious loss was threatened. The Food Administration, therefore, undertook a campaign urging the consumption of potatoes COLD-STOBAGE LEGISLATION. 497 which was so successful that the entire carry-over was consumed by the time the new 1918 crop was available. In cooperation with the Department of Agriculture and in order to conserve the production of eggs, an order was issued on February 11, 1918, prohibiting transactions in, and shipments of live hens and pullets between February 11, 1918, and April 30, 1918. This order kept a large proportion of laying hens on the farm which would otherwise have been sold, and its effect appears strildngly in the fact that on June 1 there were in storage 5,500,000 cases of eggs, an in- crease of 11.1 per cent over the quantity stored on the same date in 1917. Other measures for conservation have been taken by the per- ishable division from time to time, such as requesting the trade han- dling turkeys to limit their purchase of young turkeys to a minimum of seven pounds for hens and nine pounds for toms during the month of October. The action of shippers in shipping foodstuffs, and especially fresh fruits and vegetables, below grade, or the action of consignee in re- jecting cars without justifiable cause, has always resulted in deplor- able waste of food and in the obstruction of transportation by the accumulation at railroad terminals of cars containing perishables. Conditions existing in the winter 1917-18 aggravated these difficul- ties enormously. The Food Administration issued a set of special rules, copy of which is hereto attached as Exhibit U, defining clearly the rights of the different parties in the sale of fresh fruits and vege- tables, and prescribing certain terms to be included in every contract for the sale of fresh fruits and vegetables. The influence of the Food Administration has been used in every case to hasten the acceptance and handling of shipments, and an immediate adjustment or arbitra- tion between the parties so that spoilage might be reduced to a mini- mum. Many thousand cases have been expedited, and the direct and indirect effect of these efforts has been markedly beneficial. Through the Inland Traffic Division we have also attempted to hasten transportation of perishable products wherever delay threat- ened food waste. A representative of this division served as a mem- ber of the committee of the United States Eailroad Administration on containers and the prevention of loss and damage. In addition an independent campaign was conducted among the shippers of the country for the use of stronger containers of foodstuffs, for the exer- cise of care in the preparation of cars for loading, and for careful stowing and bracing. A rule was promulgated as one of the general license regulations which provided that in loading carload shipments of food commodities in sacks or barrels the licensee should pack commodities in such containers and in such manner that they would receive no damage from dampness, heavy loading, or jolting; that cars should be prepared and sealed so that the commodities would not be injured by protruding bolts, foreign matter in the car, or dampness or rain from without, and detailed specifications were em- bodied for the guidance of the licensee. In cooperation with the Department of Agriculture, the Food Ad- ministration insisted that all licensed egg shippers candle eggs be- fore they leave the point of original shipment. Fifteen per cent of the eggs shipped have been customarily lost through lack of candling. Attention has also been given to the methods used in packing eggs 498 COLD-STOKAGE LEGISLATION. for shipment, and recommendations to the trade of methods to pre- vent breakage have been generally complied with. The minor activities of the perishable division, including other direct action to save perishable foods, are too numerous and various to detail in a report of this nature. Compulsory conservation in public eating places. — In order to in- sure a more general compliance by public eating places with the necessary conservation measures of the Food Administration, general orders, effective October 21, 1918, were promulgated which made com- ' pulsory the observance of certain conservation measures, particularly with reference to wheat, bread, meat, fats, and sugar. Prior to the issuance of these orders compliance with these measures had been for the most part on a voluntary basis, and, while they were widely observed, there was a minority who could not be satisfactorily reached without this more definite control. These orders defined certain practices as wasteful practices under the conditions existing, and hence unlawful under the food-control law. A copy of these orders with the various amendments thereto is attached hereto as Exhibit DD. These orders were repealed December 17, 1918, the repeal be- coming effective December 23, 1918. Garbage utilization. — Through a special^ section known as the garbage utilization section the Food Administration has given par- ticular attention to the elimination of the waste resulting from the methods of disposal of garbage which have been used in the past, particularly in the large cities. As a result of the activities of this section during the year 1918 forty cities having an aggregate popula- tion of 2,217,200 have changed from a nonutilization method of gar- bage disposal to a hog-feeding method of disposal, and three cities having a total population of 248,000 have changed from a nonutili- zation method to reduction and recovery of grease and fertilizer. In addition to the cities oiScially adopting utilisation methods, in a number of places, as a result of the interest aroused in garbage feed- ing, garbage produced at hotels and larger institutions is now hauled away by farmers. Monthly reports from garbage reduction plants show that more than 50,000,000 pounds of garbage grease and 160,000' tons of fertilizer tankage have been recovered from the garbage pro- duced by about 19,000,000 people. The pork produced to October 1, 1918, from hogs fed on garbage is estimated at 60,000,000 pounds, the garbage used being that from a population of about 12,000,000. The year's changes from nonutilization methods means that aljout 20,000,000 pounds .of pork will be produced from the feeding of garbage which was formerly wasted, and the changes to reduction should increase garbage products about 1,500,000 pounds per annum and fertilizer products about 3,500 tons. This amount of grease and fertilizer is produced without the use of any existing fats or other commercial commodities and represents recoveries from a material formerly treated as worthless. Export trade. — At the request of the Food Administration the War Trade Board prohibited or strictly limited exportation of numerous foodstuffs to neutrals whenever shortage was threatened in any given commodity. They have also strictly limited food stores in ships leaving the United States and required them, in some cases, to buy at the other end of their voyage. COLD-STOBAGE LEGISLATION. 499 Conservation in the home. — It is difficult to distinguish between the efforts made by the various sections of our people in the matter of food conservation. Homes, hotels, dining cars, other public eating places, food trades, urban and agricultural populations, all alike responded magnificently to this test of the safety of intrusting a vital measure of national defense to the voluntary and individual effort of the people. The dominant part in the accomplishment of the results achieved, however, must be credited to the American women. Their hearty cooperation and cheerful assumption of the increased burden imposed was one of the outstanding manifestations of patriotic spirit during the war. A campaign for membership resulted in the enlistment of between 13,000,000 and 14,000,000 homes as members of the Food Administration pledged to observe its con- servation requests. Home cards were distributed to these homes stating the greatest needs of conservation and the voluntary measures suggested by the Food Administration for meeting these neeas. This general campaign was supplemented by special attention to conservation in the home through the home conservation division of the Food Administration. Experiments were made for the devel- opment and proving of conservation recipes, and the results of these experiments, together with other suggestions for home economics, were made known through newspapers and periodicals and through pamphlets distributed through women's organizations, libraries, and State merchants' associations. This work was decentralized into the States by the appointment of a home economics director in efich State. The result appears not only from the decreased consumption of wheat, fats, sugar, etc., but also from the reports of the collection of garbage in 96 cities, including practically every large city in the United States. The total garbage collection in these cities decreased over 10 per cent from May 1, 1917, to May 1, 1918, as compared with the previous year. III. MEASUEES TO EEDUCE THE COST OF DISTRIBUTION FROM PRODUCER TO CONSUMER AND ELIMINATE PROFITEERING. The most effective instrument provided by the food control act for control over the distribution of foodstuffs and feeds between the pro- ducer and retailer is the licensing system provided for in section 5 of the act, although the power to make voluntary agreements and to purchase and sell certain commodities have been valuable supple- ments to licensing control. The commodities licensed during the year 1917 were enumerated in the annual report for that year. Dur- ing the year 1918 licensing was extended until substantially all manu- facturers and wholesale distributors of the staple food and feed products were under license. A list of the licensed commodities will be found in the General Eegulations attached hereto as Exhibit K. On December 31, 1918, there were 263,737 firms, individuals, and corporations under license by the Food Administration. These li- censes were divided as follows : General licenses, issued under the President's proclamation of Oct. 8, 1917, and supplemental proclamations ■'^ '^22 Sugar licenses, issued under the proclamation of Sept. 7, 1917 ocon? Bakers' licenses 38,800 600 COLD-STOKAGE LEGISLATION. Salt-water fishermen's licenses 69,218 Steamship bakers' licenses 1,103 Near-beer manufacturers' licenses 377 Arsenic licenses 511 Coffee licenses 1,155 All of these licenses except salt-water fishermen were subject to the General License Regulations (Exhibit K). In addition to these general regulations each separate class of licenses was subject to special license regulations drawn to reach the practices and to make allowance for the pecularities of the particular trade. The basic principle of control under the act was "a reasonable profit," an easy thing to say, a difficult thing to define, an even more difficult thing to apply in the concrete to our national food industries with their tremendous variety of conditions and complexity of detail. From the date of the food control act, August 10, 1917, to the ar- mistice, November 11, 1918, 15 months elapsed. Starting from nothing, there was built up in these 15 months an organization, nation wide, which was on Nevember 11 at the height of its con- stantly growing efficiency, and which with its accumulated experience was prepared to meet future exigencies. Something like the assem- bly of raw recruits and the transformation of these raw recruits into a veteran army must be visualized if the accomplishments of this 15 months' period is to be appreciated. The field was new, almost no precedents existed, and- such as did exist were valueless. The scope of the war turned the world topsy- turvy, overthrew all precedents, shattered all fundamental relations; but in nothing was its influence upon the normal more disturbing than in the matter of food. Food became war material. The demand for food was concentrated upon the United States, and our response to this demand was one factor in the winning of the war. It was in the turmoil of this exigency that the Food Administration, like other war agents, functioned. Important as was price, the essential thing was the food itself. A stimulative price to the producer has been one of the guiding principles of the Fool Administration wherever our action by way of agreement or otherwise was likely to affect the producer. The exemption of the producer from control under the provisions of the act tended in the same direction, and the unprecedented demand for food combined with advancing wages and all other costs resulted in constantly advancing food prices. Our efforts at price and profit control affected manufacturers and distributors, though it is of importance to note that retailers doing less than $100,000 of business per year were exempted from the requirement of license under the act. The positive measures of regulation of manufacturers and licensed dealers were directed towards reasonable profits, the eliminatioa of unnecessary functions which increased distribution cost, and the prevention of hoarding. Wheat millers. — The first profit control was that of the Wheat millers. It was based on a limitation of net profits over and above actual expenses, which net profit was limited by agreement and by regulation to 25 cents for each barrel of flour and 50 cents for each ton of feed. The calculation of net profit is always rather compli- cated, and it was hardly possible to obtain any definite statement of COLD-STOEAGK LEGISLATION. 501 results until three months after the mills had begun to operate. The exigencies of the war situation required a very heavy milling in the fall and left a period of extremely light operation for the first six months of 1918, resulting in low costs for the first part of the crop year and very high costs for the first part of 1918. The natural result was that excessive profits were earned before January 1, 1917, but in most instances these profits were reduced to approximately the permitted margin before July 1, 1918. A careful inspection sys- tem enabling all millers' profits to be checked was in force and arrangements were made in cases where the margins were ex- ceeded over the entire period for sales to the government at reduced prices in order that the profits might be brought within the prscribed sum. Copy of the special license regulations applying to wheat millers and manufacturers of flour is hereto attached as Exhibit L. For the crop year beginning in July, 1918, a change was made from the plan of limiting the net profit described above to a plan prescribing the maximum compensation which might be received by each mill for the milling operation. Under this plan, about July 22, an individual price schedule was furnished to each mill giving the maximum price at which that mill might sell its flour and wheat by-products in carload quantities and prescribing the differentials for various sales classified as to quantity, size of package, etc. These price schedules were figured out for the mills using as the basis the price of wheat established by the President's proclamation of Febru- ary 21, 1918, at the nearest terminal, adding or subtracting from this the freight to the mill, adding a charge of $1.10 for the conversion into flour of each 4 bushels, and 24 pounds of wheat, and subtracting the amount realized from the sale of the feed and other products manufactured from such wheat. The miller was given the privi- lege of making application for readjustment of his schedule, and upon his showing that the schedule was not fair to him the proper change was made. Considering the intricacies of the freight situa- tion and other problems involved, the applications for readjustment of the schedules were surprisingly few. When an actual weighted average of the farmers' receipts for 4J bushels of wheat is compared to the average Minneapolis mill-door price for one barrel of flour, the effect of Food Administration con- trol is strikingly shown. On this basis the farmer received for his 1915 crop 98 cents a bushel, or $4.41 for 4i_ bushels. The average price of one barrel of flour at the Minneapolis mill door in the crop year 1915-16 was $6.09. In the crop year 1916-17 the farmer re- ceived an average of $1.62 or $7.29 compared with $9.85 a barrel for flour. Under Food Administration control (Sept. 1917 to Dec. 1918) the farmer has received $2.03 or $9.13 compared with an aver- age of $10.20 a barrel at Minneapolis. The margin has been decreased from $1.59 in 1915-16 and $2.56 in 1916-17 to $1.25 in 1918. The speculative profit taken by those who bought the farmers' wheat when offered in quantities in the fall, and sold it at an advance in the spring, has been wiped out. The decrease in margin was due in part to the elimination of this speculation in wheat, and in part to the millers' profit control. 502 COLD-STOEAGB LEGISLATION. We attach hereto as Exhibt B a chart showing graphically the com- parison between the average- prices in the years 1917 and 1918 for wheat paid the farmer and the average prices for flour at the mill door. The absence of fluctuation and the decrease in margin since October, 1917, when the Grain Corporation control became fully effective appears at a glance from this chart. The percentage of the cost to the consumer of a pound loaf of bread received by the wheat miller appears from the chart attached hereto as Exhibt C, showing the relative proportion of the total cost to the consumer added at each stage of the wheat's progress from the farmer's field to the consumer's table for the years 1910 to 1918, inclusive. As shown by this chart, the miller received only 3 per cent of the total cost to the consumer of a pound loaf of bread in 1918, as compared with 9 per cent in 1917. From the chart it also appears that in 1918 the farmer received 40 per cent of the money paid by the consumer for this size loaf, as compared with a general prewar average of about 30 per cent. ~WTieat mill feed. — By the end of 1918 the price of wheat mill feed had increased out of any proper proportion to the price of wheat. This was due not only to the short supply of these feeds, but to the high price of feeding stuffs generally which prevailed at that time, particularly of corn, oats, and cottonseed cake. Although this did not directly affect the profits of the mills, since it was necessarily reflected in a low price for flour, in order to insure that these feeds would not be sold at unreasonable prices, rules were promulgated the latter part of December, 1917, fixing maximum prices for mill feeds. The maximum wholesale price per ton for bran in car lots bulk at mill was seat 38 per cent of the average cost to the mill of a ton of wheat, as calculated from the prices paid during the previous month ; fixed differentials based on the bran price were established for the other mill feeds. This sudden reduction from the high prevailing price resulted, first, in a general tendency among millers and dealers to avoid the regulations wherever possible, and second, in such an increased de- mand for these mill feeds that the demand could not be supplied. The situation occasioned considerable difficulty during the early part of 1918, but with the effective work of the enforcement division and the further perfecting of rules regarding the mixing of feeds, dealers' margins and the differentials on the better class, the difficulties were overcome and the consumer was assured of mill feed on a reasonable price basis compared to that at which the farmer sold his wheat. Since the armistice the supply of mill feeds has rapidly increased, due to the relaxation of substitute and milling regulations and the export shipment of flour instead of the whole wheat, and most of the special regulations with regard to mill feeds were canceled in De- cember, 1918. Copy of rules applying to all feeding stuffs is attached as Exhibit BB. Millers of corn and^ other cereals. — An active competition existing in this field was effective in holding down the price of these products until the restricted transportation during the winter and the demand for wheat substitutes created by the wheat substitute rules brought on a sudden shortage and a consequent unsettling of the market. During the spring months prices generally prevailed high and in COLD-STOEAGE LEGISLATION. 503 individual cases exorbitant prices occurred before it was possible to devise the necessary regulations. Rules were gradually worked out and promulgated prescribing a definite margin over cost of the raw material at which corn, oats, and barley products should be sold. The margins finally established were based on the cost of the raw material less the proceeds of the feed created in the milling operation. These margms were necessarily somewhat wider than for a more stable commodity because, while they deprive the miller of profits on a rising market, they do not prevent heavy losses on a decline. Specifications as to the quality of such product were also included in the rules. The mills were required to make reports of costs and selling prices, which were carefully examined, and where it was found that excessive profits were being made, reductions were ordered. Copy of special license regvilations governing corn, oats, barley, and elevators and dealers is attached hereto as Exhibit M. It_ was found desirable to open the grain exchanges to limited dealing in foods which had previously been substantially forbidden. This dealing, limited to 200,000 bushels, tended to stabilize the mar- kets and allow legitimate dealers and mills to hedge. The hedging market enabled dealers to work on a closer margin and also nullified somewhat the effect of fluctuations, and thus made less difficult the problem of profit control over these licensees. Bakers. — The first- step taken by the Food Administration, after an investigation and report by the Federal Trade Commission, was to stabilize the size of a loaf of bread at 1 pound, subsequently modi- fied for conservation reasons so that a three-quarters of a pound loaf could also be made. With attention concentrated on a definite size of loaf it was practicable in each locality to determine approximately what price would return the bakers a reasonable profit, and the Fed- eral Food Administrators in each State or city made public this fair price. Sales of bread at prices above this price have been considered to indicate excessive profits unless the contrary could be proved by the baker. The result of this profit control is that bread has sold at retail for an average price of 8 cents for the 12-ounce loaf and 10 cents for the 16-ounce loaf in most parts of the country. The chart hereinbefore referred to (Exhibit C) shows, for the years 1910 to 1918, inclusive, the percentages of the consumer's total payment for a pound loaf of bread received by the respective parties who share in that payment, namely, the farmer, the miller, and those handling the flour between the mill door and the consumer's table. In 1918 the farmer received 40 per cent of the money paid by the consumer for a loaf of bread as compared with a general prewar average of about 30 per cent. Although the farmer's percentage for the whole of the year 1917 was 44 per cent for the first six months of that year, which was prior to Government control of the wheat market, his percentage was but 38 per cent.. Cotton seed and its products.— Prior to Food Administration con- trol merchandizing methods were conspicuously absent in this in- dustry and at each turnover of seed or oil or meal the speculative fea- ture was more often than not present. It was characteristic of both small and large dealers as in no other industry, and in equal meas- ure created the necessity for and the difficulty of control. The Food Administration rules were aimed at hoarding, speculation, and re- 504 COLD-STOKAGE LEGISLATION. sales. The resulting decrease in speculation, combined with several agreements between the Food Administration and the trades, re- sulted in a price stabilization for the 1917 crop after the greater part of the crop had been marketed and the costs of the raw materials thereby determined. In addition for the 1917 crop the Food Ad- ministration prescribed maximum spreads for cottonseed dealers and crushers and for refiners of oil, and for lard substitute manufac- turers. The success of this action is indicated by the fact that although the farmer received approximately $10 per ton more for his cotton seed than in the previous year the lard substitutes and cot- tonseed meal were delivered to the consumer at no greater cost than in 191^. For the 1918 crop, after conferences with producers, dealers, and refiners, the Food Administration announced a stabilized price for cotton seed of $70 per ton in car lots f. o. b. cars, based on a yield of 41 gallons per ton of seed, and a price varying above and below this basis according to the quality of the seed measured by its yield in products in the different zones established by the .Food Administra- tion. Analyses were made from time to time in the various sections to determine the quality of the seed. This stabilization has proven satisfactory and has met the approval of producers generally. Copy of the regulations governing dealers and brokers in cotton seed and its products and manufacturers of oleomargarine and other butter substitutes, etc., is attached as Exhibit Q. Rice. — The rice industry, because of the greatly increased demand for the product and the consequent depletion of the stocks of rice in the country, was peculiarly liable to the dangers of speculation. It was desirable, in order to assure fair prices along the line from the producer to the consumer, to devise a plan for stabilizing the price. Many conferences were held with rice producers and millers for the discussion of the problem. Representatives of the producers in all sections of the country indorsed the suggestion of an agreement to be entered into with the Food Administration with the object of stabilizing the price. Accordingly a voluntary agreement was made at the beginning of the season between the rice millers and the Food Administration, the main provisions of which were : A definite price to be paid by millers for the rough rice, a maximum selling price for the cleaned rice ; a limitation in the form of a milling margin which the miller agreed not to exceed; supervision over the carrying out of the terms of the contract, particularly with reference to the grad- ing of the rice, was placed in the hands of committees appointed by the Food Administrator and known as the grading and classifying committees. One committee was appointed for the southern terri- tory and another for California. The agreement provides for the payment of the expenses of these committees from a fund derived from a small charge to the millers. Copy of the special license regu- lations applying to distributors of rough rice, rice millers, and manu- facturers of rice flour is attached hereto as Exhibit N. Meat packers. — For the purpose of profit control the products of the packers were divided into two general classes, the edible and non- edible. The Food Administration was vested with authority to con- trol the profit on the edible, or food products, but had no authority to control the nonedible. Upon the edible products a maximum profit of 9 per cent on the capital invested was prescribed. Special COLD-STORAGE LEGISLATION. 505 rules defining the method of accounting to be used were prescribed and supervision over the accounting is exercised by the Federal Trade Commission to see that the proper distribution of costs and transfer values is made between the edible and nonedible products. Copy of these special rules for accounting is hereto attached as Ex- hibit " J." The profits on controlled products of the packers, subject to this control, during the first year of such regulation, from November 1, 1917, to November 1, 1918, as shown by audited accounts, were $10,- 594,935 on an investment average for the year of $714,181,204, a net profit on the total investment for one year under the rules of the Food Administration of 5.6 per cent, or considerably less than the maximum allowed by those rules. On the gross sales of $2,434,113,430 the profit of $40,594,935 represents a percentage of only 1.6. Sugar.— Ey a uniform agreement made with the refiners of the country in October, 1917, all purchase of imported raw sugar was assigned to the international sugar committee having representa- tives of the Allies and the Food Administration in its membership. In December, 1917, another agreement was made between the inter- national sugar committee, a Cuban commission, the royal commission on the sugar supply, and various refiners in the United States, and by the terms of this agreement the Cuban commission and the agents for Cuban producers undertook to sell practically the entire raw sugar crop of Cuba of the season 1917-18. This sugar so purchased was in part allotted among the several refiners in the United States by the international sugar committee and the remainder allotted to the royal commission. By the agreement between the Food Administra- tion and the refiners the refiners were limited to a margin of 1.3 cents per pound between the cost of raw sugar to the refiner and the whole- sale selling price of fine granulated. The Food Administration also had agreements with representatives of the Louisiana cane-sugar producers and the manufacturers of beet sugar in the United States stabilizing the price of sugar produced by them. The results of this method of price stabilization were satisfactory and the plan was simple of maintenance because the basic price of sugar had been practically stabilized by the purchase of Cuban sugar at a definite price through the international sugar committee. The fixed margins on wholesalers and retailers following the refiners' margin practically assured a fair and even price for sugar through- out the United States, varied only by freight differentials. The method of handling the 1917-18 crop was not practicable for handling the 1918-19 crop because of the following changed condi- tions : There was a material increase in iihe, cost of production because of the advance of the cost of labor and other essentials of production. There was fear of a scarcity of supply and it was necessary that pro- duction should be stimulated by an increase in price to the producers of the sugar cane and beets. The farmers in our Western States were demanding $10 per ton for their beets against the normal prewar price of $5 or $6 per ton and the Cuban and Louisiana producers of cane sugar were demanding a much higher price in view of their in- creased expense of production. After an investigation by the United States Tariff Commission in connection with the Food Administration it was determined that it 506 COLD-STORAGE LEGISLATION. would be necessary, in order to stimulate the production and main- tain the necessary supply of sugar, to adopt a new method of han- dling the situation. A price of $10 per ton was determined upon as a reasonable price to be paid to the farmers by the refiners for the beets and the Food Administration urged the factories to enter into contracts for the beets on this basis, which they generally did. There- after the United States Food Administrator entered into an agree- ment with the Louisiana cane sugar producers and with the manu- facturers of beet sugar stabilizing the price of refined sugar whole- sale at a maximum of 9 cents per pound which was determmed upon, after thorough investigation, as a reasonable and fair price, taking into consideration the increased cost of production and the necessity for stimulating production. While the cost of producing sugar in Cuba had increased, the in- crease was much less than that in the United States and a price of $5.50 per hundredweight would insure a fair return to the Cuban pro- ducer. It was further necessary, therefore, for the Food Adminis- tation in order to protect its agreements with the Louisiana cane sugar producers and the beet sugar manufacturers, to provide a method of handling the Cuban sugar so that the price of sugar from all sources, foreign and domestic, would be equalized, and at such a price that the consumer would receive the benefit of the lower-cost sugar while the high-cost producer would receive a price which would encourage continued production. The plan decided upon was the formation of a Government cor- poration which would purchase the raw sugar supply from Cuba and sell it to the refiners at a uniform price and thus effect the stabilization and the equalization of the price of sugar throughout the country. Under the direction of the President of the United States on July 31, 1918, the United States Sugar Equalization Board (Inc.), was created under the laws of Delaware, with a capital stock of $5,000,000 which was subscribed for in the name of the United States by the President and paid for at par out of his appropriation. Under the operations of this board, with the authority delegated to it, it was possible to establish a moderate basic price for sugar at all refining points. On September 9, the Food Administration an- nounced an increase to 9 cents per pound at all seaboard refining points as the wholesale basic price for granulated sugar. While this meant an increase of about 1^ cents per pound in the cost of sugar, the people fared much better than would have been the case had an equalization board not been in existence which fixed the same basic price for all sections of the country. This price was the result of careful investigation and was decided upon as the price necessary to allay the dissatisfaction among the growers of sugar-producing plants at the prices paid them for their product, which dissatisfaction would have resulted in a marked decrease in the acreage planted. The increase in price given to the Louisiana producer, for example, resulted in a price for raw sugar of 7.28 cents per pound agamst 6.35 cents received last year, and to the sugar-beet producers, an average increase of about $2.50 per ton over last year's prices. It allows the Cuban producer 5.50 cents per pound in Cuba as com- pared with 4.60 received last year. That the increase stimulated production is evidenced by the fact that the Cuban production is COLD-STOEAGE LEGISLATION. 507 now estimated at several hundred thousand tons in excess of last season's crop. On October 24, 1918, the United States Sugar Equalization Board, (Inc.), entered into an agreement with a Cuban commission and with agents of various Cuban producers of sugar by which the Cuban commission and the agents of the producers undertake to sell the entire Cuban crop of sugar of the year 1918-19 to the sugar equali- zation board at a price therein set forth. The amount of this crop is estimated at approximately 3,600,000 tons. Purchases of the re- quirements of foreign countries will be made through and allotted by the sugar equalization board from this amount, one-third of the crop having already been purchased by the royal commission on the sugar supply for account of the United Kingdom, France, and Italy. Copy of the special regulations applying to the manufacturers and refiners of cane and beet sugar is hereto attached as Exhibit O, and the special regulations applying to dealers in glucose, sirups, and molasses and manufacturers of mixed sirups are attached as Ex- hibit T. Wholesalers and jobbers of nonperishable food comnwdities. — Wholesalers and jobbers and those retailers subject to license were required to apply for a license on or before November 1, 1917, by the proclamation, copy of which was included in our last annual report. One of the basic regulations governing these licenses re- quired them to sell nonperishable food comihodities at not mor6 than a reasonable margin over their average invoice cost. The purpose of the rule was to protect the consumer from the inflated market values then existing, due to speculation and the extraordinary con- ditions prevailing. The Food Administration ruled that a reasonable margin did not exceed the margin customarily enjoyed before the war or an even market under free competitive conditions. The result was the sale of these stocks in most instances at a reasonable profit, but at prices far below the replacement value, and the saving to consumers of sums which in the aggregate were enormous. Later, maximum margins were prescribed for the more important nonperishable commodities, such as sugar, flour, ham, bacon, lard, sirups, canned fish and vegetables, and dried fruits. A full list of these commodities and the maximum margins fixed therefor will be found in the special license regulations governing dealers in non- perishable food commodities, attached hereto as Exhibit K. The regulations further provided that goods should be kept mov- ing in a direct line from the producer to the consumer. No resales within the same class of trade were allowed except for justifiable causes where some special economic service was performed, and in such cases the parties to the transaction were as a rule held to a joint profit which could not exceed that allowed to a single dealer. Retailers. — The food-control act exempted from the licensing system retail grocers whose gross sales of food products did not exceed $100,000 per year. It was not possible, therefore, to control retailers in the same manner or with the same efficiency as whole- salers. The expedients first adopted gave only a loose supervision of the retailers' prices and practices, but they were constantly improved in the light of experience. The most effective measure was general rule 17 of the license regu- lations which prohibited any licensed dealer from selling food com- 137690—19 33 508 COLD-STORAGE LEGISLATION. modities to or buying food commodities from any person guilty of exacting excessive profits, hoarding or otherwise clesding wrongfully in any licensed food commodity. With this rule a proven violation of the food-control act by a retailer might be utilized as a basis for a penalty. This gave a measure of control, though in practice orders of this kind were very rare. Our control over the distribution of sugar and flour, particularly after the adoption of the sugar certifi- cate plan, could also be utilized to some extent as a means of control. A further very effective means of reaching the retailer was publicity. The patriotism of the retailer was appealed to through the press, through the traveling salesmen of wholesale grocers, through boards of trade and retail trade associations, and through conferences be- tweel local dealers and local representatives of the Food Administra- tion throughout the United States. A national pledge campaign was conducted and approximately 430,000 copies of the retailers' {)ledge poster were distributed. Our reports indicate that a very arge majority of retailers in the United States signed this pledge and displayed the poster. In this manner the retailer was kept alive to the responsibility which citizenship and patriotism imposed upon him. The retail dealer was subjected to the same cost-basis rule as the jobber and maximum margins were eventually established for him covering many of the more important licensed commodities. Eventually in almost every important distributing center, under the direction of the Federal State Food Administrator, local price inter- preting boards were established. After an examination of the re- tailers" costs, these boards determined reasonable maximum margins sufficient to cover the cost and a legitimate profit, and the fair prices thereby determined were published in the newspapers, partly to guide the retailer, partly to enable the consumer to see for himself whether the retailer was acting fairly, and partly to enable the con- sumer to assist the Food Administrator by reporting violations. During the development of these measures our system of local inspection and policing was constantly developing and had become in most of the States an effective supplement to uie other measures so that in the end we were confident that this problem in spite of its infinite detail and complication was well in hand. Canning indMstry. — It is an established custom in the canning industry to sell for future delivery many months before the goods are actually produced. The conduct of the business, particularly from a financial viewpoint, rests so completely upon this custom that it was necessary to make an exception to the usual Food Admin- istration rules prohibiting contracts for delivery more than 60 days after the date of the contract. The great divergences in cost in dif- ferent sections of the country and in different plants and the fact that the cost of the raw product constituted only a small proportion of the total cost, made any differential in price over the cost of the raw product impracticable. All canners were, therefore, called upon to submit estimates of cost, which were carefully checked and corrected where clearly exces- sive. In addition, after an investigation and report by the Federal Trade Commission, made in cooperation with the Food Administra- tion, maximum net margins over cost in terms of cents per dozen cans were announced and all canners were required to conform to this net COLD-STORAGE LEGISLATION. 509 margin in making their future sales and to submit to the Food Ad- ministration all quotations on such sales. Actual costs after comple- tion of the pack and at the time of delivery were followed up. Ee- ports received of revisions of prices by. canners of corn, peas, and tomatoes indicate a total aggregate reduction of approximately $7,000,000 made at the time of actual delivery from the prices agreed upon in the original " future " contract. As a basis for determining a reasonable figure for canned salmon a committee was appointed consisting of the Federal Food Adminis- trators for California, Oregon, Washington, and Alaska, and a representative of the Canned Foods Division of the Food Adminis- tration to determine reasonable prices for raw salmon in the various streams. The recommendation of this committee as to reasonable prices for the raw fish was adopted as the basis of prices for canned salmon. On this basis, and after an investigation of costs, in which the Federal Trade Commission cooperated, prices for the canned salmon were adopted which were the same as those for the 1917 pack. The costs for 1918 were from 30 to 32 per cent greater than in 1917y but the 1917 uncontrolled profit had been so large that these prices absorbed this increased cost and still provided reasonable profits. Agreements with the fishermen as to the maximum prices of the raw fish and with the canners as to maximum prices for the standard ffl^ades and sizes of canned sardines were made both in Maine and in California. Copy of the special license regulations applying to canners is hereto attached as Exhibit P. Dried fruits. — Through conferences with the associations of peach growers, prune growers, and raisin growers, together with inde- pendent growers of these fruits, maximum prices to the producers were agreed upon. Based upon these prices for raw products, packers' maximum prices were established with the understanding that no packer would be entitled to a profit in excess of 4 per cent on gross volume of business. After these voluntary agreements were consummated a disastrous equinoctial rainstorm in California so greatly reduced the crop of prunes and raisins that the quantity available for civilian distribution, after filling the Government and allied requirements, was very small. Apart from the agreement, prices would have advanced tremendously. We can not commend too highly the splendid spirit in which the fruit industry fulfilled its patriotic obligation and particularly the spirit of the California growers who had suffered this actual loss of the product upon which they had reasonably relied. Copy of the special license regulations applying to licensees engaged in the business of preparing or packing certain dried fruits is included in Exhibit P attached hereto. Perishable commodities. — With fresh fruits and vegetables hoard- ing is practically impossible and the laws of supply and demand operate very freely, but prices are constantly affected by the tem- porary and varying conditions in each locality. Price fluctuations are rapid; risk of spoilage often forces sales regardless of price,' actual spoilage is frequent; and losses from these and other causes must necessarily be made up when conditions are more favorable to the dealer. A margin over cost is, therefore, impracticable. The Food Administration bent its effort mainly to the elimination of all deceptive, wasteful, and unfair practices which tend to interfere 510 COLD-STORAGE LEGISLATION. with competition and the natural results of the law of supply and demand. Prompt and accurate accounts were required to be ren- dered. Commission merchants were confined to reasonable com- missions. Goods were required to be promptly unloaded and dis- posed of freely. Copy of the special rules and regulations applying to distributors of fresh fruits and vegetables is hereto attached as Exhibit U; those governing distributors of fresh and frozen fish is attached as Exhibit V. The commodities which can be placed in cold storage are suscep- tible of somewhat more extensive profit control. Definite margins were prescribed for dealers in cold-storage poultry, eggs, butter, and cheese. The rules limited resales. The margins were made liberal, but Avere sufficiently low to discourage speculation as distinguished from legitimate preparation in seasons of plenty for seasons of scar- citj', which is absolutely necessary from the point of view of both producer and consumer. Copies of the special regulations applying to these commodities are attached hereto as follows : Distributors of poultry, as Exhibit X ; distributors of eggs, as Exhibit Y ; manufac- turers and distributors of butter, as Exhibit Z; manufacturers and distributors of cheese, as Exhibit Z. Severe climatic conditions in the spring of 1917 caused a scarcity, of eggs in January, 1918, and it was necessary to fix a definite maxi- mum price for the remainder of the 1917 cold-storage eggs. This action undoiibtedly prevented a tremendous rise and unreasonable profits. The price, of course, was based on the known cost of these eggs. Similar action was taken from time to tiixie where other short- ages developed in a stored commodity. Thus, in January, 1918,: rea- sonable prices for butter then remaining in storage were named, and distributors of frozen fish agreed to a fair maximum advance over the cost of their stock. It was found desirable under war conditions to limit very strictly the operations of butter and &gg exchanges to the end that mere speculative trading and the possibility of manipulating the market might be eliminated. The Elgin Butter Board was closed. Specu- lation in cold-storage commodities was also discouraged by limiting the percentage of value which cold-storage warehousemen might lend on commodities stored, and by prohibiting the dealing in these com- modities by public cold-storage warehousemen. The Food Adminis- tration insisted upon the marketing, often at a loss, of stocks held in storage for more than a year and endeavored to regulate the outgo so as to prevent the heavy losses which might result from any demor- alization of the market caused by such orders. Gold storage. — All public cold-storage warehousemen were re- quired to file their rates with the Food Administration, and were for- bidden to change them except on 30 days' notice. These rates were checked over and corrected where excessive, and a schedule of maxi- mum rates was prescribed. Cold-storage products were required to be labeled so that excessive profits might not be made by selling them as fresh. A copy of the special license regulations governing cold- storage warehousemen is attached hereto, marked Exhibt AA. General storage. — General storage warehousemen were also licensed November 15, 1918, and subjected to rules, copy of which is attached hereto, as exhibit EE. COLD-STOKAGE LEGiSLATlON. 511 Beans. — The Food Administration exercised control over the dis- tribution of beans from the time they left the hands of the producer until they reached the small retailer and consumer. A maximum margin has been fixed for elevators and warehouses and for brokers, bean jobbers, and vrholesale grocers. Fair practice rules were issued for the regulation of the trade, and speculative buying and resales within the trades were practically eliminated. There has been a greatly increased production of beans in the United States in the last two years, and the 1918 crop apj)roached an estimated maximum of more than 20,000,000 bushels, which is more than double the prewar crops. The average price of beans has dropped from 12 cents per pound, in 1916, to 8 cents per pound, in 1918. Copy of the special rules and regulations governing dealers in dried beans and dried peas will be found in Exhibt K. Coffee. — In order to check a growing tendency toward speculation in coffee, green-co£fee dealers were required by the President's proc- lamation of January 30, 1918, to secure a license. By the regulations issued, licensees were required to file monthly reports covering purchases, sales, stock on hand at beginning and end of each month, and the average cost of each growth. Trading on the New York Coffee and Sugar Exchange was limited by pre- scribing a maximum quotation and maximum margins for carrying charges. Copy of the rules and regulations and amendments thereto is in- cluded herein in Exhibit R. Milk. — ^During the winter of 1917-18 the price of milk to the con- sumer rose steadily. Numerous requests were received from pro- ducers and distributors of milk, as well as representatives of State and municipal governments that the Food Administration undertake an administrative solution of the troublesome situation. It was claimed in behalf of consumers that milk producers and distributors were profiteering. The producer pointed to high prices of feed and both the producer and distributor claimed justification for their prices in constantly increasing expenses of all kinds. There was much fear that dairy herds would be sacrificed. The Food Administration had no power to control the the pro- ducer's price of milk. It seemed essential that some tribunal be set up before which the three interested parties might be heard and which should, in behalf of the public, reach conclusions as to the cost of production and distribution and base thereon recommendations as to prices. The Food Administration, therefore, suggested that a commission be appointed and that the various parties agree to abide by the decision of such commission until their withdrawal from the arrangement upon 30-days' notice. This suggestion was adopted and the United States Food Administrator appointed three com- missions, one for New England, one for the New York territory, and one for the Chicago territory. In New York the commission appointed continued its activities from December, 1917, until July 1, 1918, determining the prices of milk from month to month. In May practically all of the purchasers of milk gave notice of withdrawal and the agreement came to an end on July 1. The commission, however, acted as a mediator for the July prices, and after July the Food Administration was called upon 512 COLD-STORAGE LEGISLATION. :at various times to mediate in the matter of a fair price for the New York district. In Chicago the parties to the arrangement for the ajjpointment of the commission withdrew in March and it was not until July 1 that another agreement was reached. Under this latter arrangement it ■was provided that the Chicago Milk Commission should determine the average cost of feed and labor required to produce 100 pounds of milk. The price of feed was obtained monthly from the farm values of corn and hay in Illinois and Wisconsin as published by the Department of Agriculture ; the value of various dairy feeds as published by daily feed reports ; and the value of labor was deter- mined by the average going price for farm labor in the Chicago dis- tricts. The actual price to be paid each month by purchasers to pro- ducers was determined by the " Pearson percentage scale," under which the price of milk is based upon a certain percentage of the total value of feed and labor necessary to produce 100 pounds of milk. On the whole this system has worked out fairly well in the Chicago district, and it was used as the basis for determination of the fair price in other districts where the Food Administration was called upon to act as a price mediator. The Federal Milk Commission appointed for the New England dis- trict is still in existence and performing its function, determining the price of milk for that district on the cost plus a reasonable profit basis. It is, however, now acting independently of the Food Admmistration. While the problem of milk prices in the large centers is not yet solved and while prices have materially increased, nevertheless con- structive progress has been made. The greatest percentage of increase has gone to the producer. There has been effected a distinct improve- ment in relations between producers, distributors, and consumers. Their disagreements at the time of their appeal to the Food Adminis- tration threatened to result in great injury to all concerned and par- ticularly to the consumers. Through the efforts of the milk com- missions and Food Administration representatives, a better under- standing of the troublesome problems confronting the industry has resulted. Enforcement. — The enforcement of the rules and regulations has been the work of the Enforcement Division of the Food Administra- tion. The report of the Enforcement Division is hereto attached, marked " Exhibit A." IV. MEASURES TAKEN TO SECURE AN EQUITABLE AND ADEQUATE DISTRIBUTION. Wheat and wheat ftour. — In the face of the shortage of wheat one of the problems before the Food Administration Grain Corporation in the early part of 1918 was that of distributing the balance of the 1917 wheat crop in such a manner as to prevent a flour shortage or in- flation in the price of flour at any point in the country, and also to prevent any feeling of discrimination on the part of any mill or any section. The success of the distribution effected is indicated by the estimated flour production of the United States for the crop year ending July 1, 1918, which was 115,000,000 barrels as against a nor- mal estimated production of 120,000,000 barrels, although a certain COLD-STORAGE LEGISLATION. 513 amount of this large flour production was due, of course, to the in- creased milling percentage. For the purijose of meeting the shortage of wheat flour, rules were adopted prescribing that no mill should Slip into any territory more than 70 per cent of the amount of flour shipped in the same "period of 1917, and limiting all jobbers to 70 per cent of the amount handled by them in the same period of 1917, and requiring from them the same restricted distribution. These rules prevented the accumulation of excessive stocks in any particular locality while a shortage existed in the entire country. Their operation was complicated but, short of a complete certificate system, accomplished as satisfactory results as could have been possible. A rule was also issued limiting the distribution of flour to in- dividual consumers to 25 pounds at one time in cities and 50 pounds in rural communities. This rule tended to slow up the distribution of flour and to impress upon purchasers the fact that flour should be used sparingly. The success of these rules, together with the con- servation effected, is evidenced by the fact that there were few com- plaints of flour shortage in any part of the country. Wheat mill feeds. — The shortage of wheat mill feeds resulting from the high milling percentage of flour and heavy exportation of wheat necessitated the issuance of regulations governing distributors of these feeds which would tend to secure an equitable distribution. Wholesalers and jobbers were required to ship the same percentage of their supply of such feeds into each State m each calendar month after October 1, 1918, as was shipped in the corresponding quarter of 1917, with the exception of certain States affected by drought. They were also forbidden to sell wheat mill feed except for certain desig- nated more important uses. Sugair'. — After the shortage of 1917, beet sugar was distributed through the beet sugar distributing committee, an agency of the Food Administration, to the jobbers of sugar on a pro rata basis, and these jobbers were requested to distribute to their customers in the same manner. The gradual development of the sugar shortage, however, led to the installation of a new system to secure equitable distribution. Eules were issued limiting the sale of sugar by anyone to wholesalers, retailers, or manufacturers except upon the presenta- tion of sugar distribution certificates heretofore referred to in this report. These certificates were issued by the Federad food adminis- trators to the various retailers and manufacturers in their State on the basis of their sales in recent months, modified where it appeared that any State had been receiving sugar in exfeess of its quota. Since the formation of the Sugar Equalization Board, referred to above, the distribution of sugar has been a simpler matter, inas- much as the whole supply has been under the control of this board. The shifting of a supply from any source of production to needy sections, which under other conditions could only have been ac- complished, if at all, at a material cost to the consumer, is now carried out by the Sugar Equalization Board at no increased cost to the consumer. For example, in the month of December, 1918, owing to the light receipts of sugar from Cuba and the heavy demand on the supply in the North Atlantic States by overseas requirements, these States faced a very acute shortage of sugar. The Equalization Board relieved this shortage by a movement to this section of a 514 COLD-STORAGE LEGISLATION. large quantity of sugar from Louisiana and a smaller quantity from Java. Irdcmd trwmfortabion. — The excessive demands on transportation consequent upon war conditions have made necessary close super- vision over the transportation of foodstuffs, feeds, and commodities. Quite early, therefore, the Food Administration organized a Trans- portation Division, not to supplant established transportation agen- cies, but to cooperate in securing for food distribution the highest possible efficiency, and particularly to minimize the enormous waste of foodstuffs resulting from delays in transportation, and guard against disastrous shortages in large centers of population and to facilitate the transportation of goods for export. After the taking over of the control of the railroads by the Gov- ernment this division cooperated closely with the United States Kailroad Administration, and in February, 1918, it was designated as the Inland Traffic Division and made a branch of the United States Eailroad Administration. In March, 1918, this division was charged by the United States Railroad Administration with the supervision of transportation of foods and feeds, as well as various related products, such as food containers, tin plate for the manufac- ture of cans, box shocks, staves, lumber and logs for the manufacture of containers, tin cans, canning machinery and supplies, refrigerating machinery, ammonia cylinders, etc. The limits of this report do not permit of an adequate statement of the detailed activities of this division in arranging for car move- ments, but the following may be cited as typical : In the first two months of 1918 when the extremely severe weather conditions had resulted in railroad congestions and embargoes, through the action of this division, in cooperation with the Car Serv- ice Commission, many serious food and feed shortages, principally in the territory east of the Mississippi and north of the Ohio Rivers, were relieved, and suffering avoided. In the interior east, in New England, and in the anthracite regions forage was exhausted and great numbers of cattle, including dairy herds and other live stock, were saved from starvation by arranging the movement from the west, through embargoed territory, of several special trains loaded with animal feeds, distribution of which was made to communities in accordance with advices from the Coarse Grains Section of the Food Administration. Large supplies of potatoes, fruits, vegetables and other produce from the great producing areas were moved into the large consuming centers that they might be consumed as substitutes for exportable staples. Spfecial trains were arranged to supply certain sections of the south with salt where the shortage of this essential was holding up the killing of hogs. The matter of securing transportation for food containers was one of grave concern during the congested period. Railroads had em- bargoed dead freight and yet food could not be distributed without the necessary containers. One specific movement arranged with the Car Service Commission was for more than 300 cars of tin plate to the Pacific coast for forwarding to Alaska. If this plate had not reached Alaska in time for the 1918 salmon pack, a large percentage of this pack, which was a very important item in supplies for the American Expeditionary Forces, would have been lost. COLD-STOEAGE LEGISLATIOIT. 515 The movement to market of the cattle, hogs, and wheat of the country was of great importance. The plan worked out for handling cattle shipments was a zoning system by which stock was received on given days for designated markets. This plan helped to prevent ex- cessive demands on the railroads and gluts at markets. It was adopted by the railroads in 1917 and further perfected during the earlier part of 1918. In September, 1918, the unusually heavy move- ment of wheat caused by the guaranteed price and the large crop, combined with restricted export due to the curtailed shipping pro- gram, resulted in great congestion at mills and elevators, and the blocking of terminals with grain of all kinds was imminently threat- ened. The Eailroad Administration adopted the suggestion of the Food Administration that, instead of the usual method of meeting such a situation by embargoj a permit system be adopted under which no grain should move without specific permits. This division of the Food Administration was put in charge of the issuance of these permits, and grain control committees were appointed in practically all primary markets, one member of each committee being a Food Administration representative who issued the permits, while other members arranged for the physical transportation. This plan has worked out very satisfactorily. The situation having cleared as to coarse grains, the permit system was canceled on December 1, except for wheat. In cooperation with the Railroad Administration there was ar- ranged, effective December 23, a permit system for the movement of hogs to a large number of markets, under which plan the "stabiliza- tion committee" advises how many car lots of hogs each market will absorb daily, and a representative of the Inland Traffic Division then advises the Eailroad Administration so that the permits may be allo- cated equitably among the various railroads serving each market. The Inland Traffic Division has also since March, 1918, by arrange- ment with the United States Eailroad Administration, had the super- vision of the arrangements for the inland transportation of all foods and foodstuffs for the Allies. The magnitude of this movement is apparent from the fact that from January 1 to December 31, 1918, of the 12,000,000 tons of foodstuffs transported to European coun- tries more than 8,000,000 tons consisted of foodstuffs for the Allies. Marine transportation. — ^Because of the shortage of tonnage it was necessary to arrange a unified program for the importation of food- stuffs into the United States and to exercise close supervision over this program. Coincident with its creation the United States Ship- ping Board determined upon a policy of fixing minimum programs of imports of food as well as other commodities, and a shipping control committee was appointed to allocate to the various trades sufficient tonnage to lift the imports agreed upon. A division of the Food Administration, known as the marine transportation divi- sion, was set up to cooperate with the Shipping Board in its deter- mination of the minimum program of food imports. This division acted as intermediary between the Shipping Board and the heads of the commoditv divisions of the Food Administration who were ac- quainted with the import requirements of the country. Programs were agreed upon and carried out for the importation of wheat from Australia and Argentina; sugar from Cuba, Porto Eico, Hawaii, and the Philippines; vegetable oil, copra, cacao, rice, tea, spices, fish, 516 COLD-STORAGE LEGISLATION. coffee, jute, burlap, and sisal, and also the transfer by marine trans- portation of flour from the Pacific to the Atlantic coast, V. MEASURES TO SECURE ADEQUATE PRODUCTION. Naturally the stimulation of production belonged to and was pri- marily handled by the Department of Agriculture. The question, however, was intimately connected with the work of the Food Ad- ministration. More and more as the war progressed it became ap- parent that it could not be won unless the United States, in addition to domestic requirements, could supply food to its own soldiers over- seas and to the allied populations and armies. AH measures taken by the Food Administration were carefully considered with a view to their effect upon production, and in a few cases, in cooperation with the Department of Agriculture, action was taken to encourage increased production. Wheat guaranty. — The guaranteed price for wheat and the cam- paign for increased production undertaken by the Department of Agriculture resulted in an increase in the winter wheat acreage from 40,534,000 acres in 1917 to 42,170,000 acres in 1918, and in the spring wheat acreage from 19,039,000 to 22,489,000 in 1918. The 1918 crop figures out by estimate as follows : Crop estimated by the Agriculture Department 917,000,000 Carry-over from 1917 crop 22,000,000 Or a total of . 939, 0?)0, 000 Consumption by the United States, estimating 15 per cent below normal.-^ 477, 000, 000 For seed 105, 000, 000 Normal carry-over into 1919 60, 000, 000 Exports to December 31 (estimated) ' 140,000,000 Or a total of 782,000,000 Leaving a surplus for export for balance of crop year 157, 000, 000 The estimate of the winter wheat acreage in the fall of 1918 is 48,261,000 acres, an increase of 16.5 per cent over the acreage of the fall of 1917. If the same increase is maintained for the spring planting, there will be planted next spring 26,000,000 acres, making the total wheat acreags for the 1919 crops of 75,261,000 acres. A copy of the President's proclamation guaranteeing the price for 1918 is attached hereto as Exhibit G, and the copy of the proclama- tion guaranteeing the price for 1919 is attached as Exhibit H. The prospect of an abnormal crop of wheat far beyond domestic needs combined with the probable effect of peace conditions upon the export demand has made the problem of carrying out this guaranty one of great complexity. The financial aspect is important because of the amount of money involved, but in principle is simple. The real difficulties lie in the details of transportation and storage, in the determination of the economic basis upon which the flour from wheat is to be sold to our own people and abroad, in the effect which uncertainty in relation to these future determinations is hav- ing upon the manufacturing and distributing trades primarily interested, and which the actual decisions will necessarily have not only upon these trades but upon our whole economic life. COLD-STOEAGE LEGISLATION. 517 Beam.— As hereinbefore noted, the 1918 crop of beans was more than double the prewar crop, due largely to the stimulation of the price received for the 1916 production. The Food Administration gave particular attention to the encouragement of the production of the pinto bean, a dry-land bean, the growth of which is confined largely to the southwestern section of the United States, and particu- larly to the States of Colorado and New Mexico. Because of the high food value of this variety and the possibility of rapidly increasing its acreage, it was a crop well fitted for war-time needs. The 1917 production showed an increase of approximately 45 per cent over that of 1916, but there was difficulty in marketing the crop for the reason that the variety was not widely known and there was no extensive demand for it. By indorsing it as a food, the Food Administration encouraged its increased consumption, and in the early part of 1918 the Food Administration Grain Corporation entered into contracts purchasing a large part of the 1917 crop. In all, the Grain Corporation bought and sold, both for export and the domestic market, approximately 1,000,000 bushels. The 1918 crop showed an increase over the 1917 crop of approximately 10 per cent. Without the efforts of the Food Administration it is very doubtful whether the large production of either the 1917 or 1918 crops could have been marketed except at a sacrifice. Potatoes. — The campaign to conserve potatoes in the spring of 1918 has already been referred to. The prevention of waste of food was but part of the result, for the sacrifice of these potatoes left over from the 1917 crop would have cast a damper upon 1918 pro- duction. Fish. — The outstanding fact in connection with our fishing in- dustry is that, in comparison with the foreign fishing industries, it is as yet undeveloped. Its output in comparison with its possibilities is meager. We have believed that the true constructive policy under war conditions was to concentrate effort upon the stimulation of output, particularly by the reasonable removal of hampering restric- tions. The weather conditions were most unfavorable. Expenses increased in every direction, certain kinds of fish were — as sometimes inexplicably happens — ^perverse in the avoidance of their usual haunts. The submarines destroyed a number of the most efficient modem trawlers and the threat of their presence was found a great hindrance. Men were withdrawn for the Army and the Navy. These were the handicaps which we tried to help to overcome. Through the licensing of salt-water fishermen Federal regulations were substituted for State laws and other restrictions which served to limit production of salt-water fish, shellfish, and crustaceans. This was done in cooperation with, and after consultation with, the various State commissions and other officials. Extension of the fishing season in certain localities was arranged, and the use of fish traps and other devices by which the catch could be enlarged were permitted and en- couraged. Surveys were made of producing conditions and efforts made to increase equipment. By application to the Navy Depart- ment inlet and shore fisheries were kept open on certain parts of the coast where Navy authorities were creating barred zones because of the submarine menace. By application to the War Department per- mission was secured for the placing of traps in new locations, and 518 COLD-STOEAGE LEGISLATION". limited furloughs were secured for skilled fishermen. Further efforts were directed to the increase of the supplies of materials for nets and the replacement of storage space lost as a result of the large re- quirements of the Army. A copy of the license regulations govern- ing salt-water fishermen is hereto attached as Exhibit W. Fork. — The stimulation of hog production in the United States offered, the only practicable means of obtaining a sufficient produc- tion o£ nieat and fats to meet the demands made upon us within the time limit. Results could be obtained from this source within 12 months, while a much longer time would be required if other means were employed. The need of a stimulation was emphasized by the fact that the number of hogs slaughtered in 1&17 was only about 34,000,000, as compared with about 43,000,000 in 1916. The Food Administration called together practical hog men and in confer- ence with them the conclusion was reached that some assurance to the producer as to price was necessary to secure the absolutely essen- tial supply of hog products. On November 3, 1917, the Food Administration announced that in order to stop the sudden break in prices paid for hogs at the central market and to stimulate production thereafter it would use its best efforts to prevent the price going below a minimum of $15.50 and that it would endeavor to stabilize the price of hogs farrowed in the spring of 1918 so that the farmers could count on receiving for each 100 pounds of liog 13 times the average cost per bushel of the com fed into the hog. The statement of the chief of the meat divi- sion of the 'Food Administration making this announcement is hereto attached at Exhibit I. The response of the producers to this assurance, as well as to the appeal of the Department of Agriculture and the Food Administra- tion for an increased production of hogs, is indicated by the follow- ing table, which gives the number of hogs slaughtered monthly in 1916, 1917, and 1918, based upon the inspection reports of the De- partment of Agriculture. Number of hogs slaughtered, tased upon the inspection reports of the United States Department of Agriculture. Months. 1918 1917 1916 Months. 1918 1917 1916 January February March 3,960,162 4,103,543 3,916,148 3,290,489 3,092,225 2,782,792 2,940,491 4, 628, 614 3,484,014 2,984,959 2,645,077 3,083,518 2,684,844 2,411,435 5,387,333 4,275,567 3,430,145 2,853,326 3,274,941 .3,162,669 2, .530, 249 August September October November December Total.... 2,283,083 1,980,008 3,018,084 4,279,462 5,661,890 1,704,852 1,321,674 2,195,291 3,042,827 3,722,559 2,507,259 2,287,230 3,327^029 April 4,770,913 Mav 5,267,042 July 41,307,367 33,909,664 43,073,703 The following is the amount of our exports of pork products to European cotmtries from 1913 to 1918, inclusive : Pounds. Pounds. 1913 837,182,471 1916 1,171,684,856 1914 674, 717, 981 1917 1, 115, 927, 539 1915 -1 1, 181, 204, 807 1918 2, 077, 586, 977 COLD-STOEAGE LEGISLATION. 519 Our total export of pork and pork products during the past year amounted to 2,250,698,424 pounds, made up as follows : Months. Exports to Europe. Exports to other countries. Total exports. 1918. January . . 1 February March April May June July August September October November December Total 88,376,407 110,041,478 294,922,721 285,614,100 244,357.256 141,375,823 246,220,652 161,361,867 101,443,676 122,234,313 114,379,110 197,259,574 2,077,586,977 4,486,911 4,304,410 13,088,050 30,148,821 36,977,786 27,930,117 6,645,629 9,284,442 13, 112, 626 10,003,011 8,886,890 8,342,754 173,111,447 92,863,318 114,345,888 308,010,771 285,762,921 281,335,042 169,305,940 262,766,281 170,646,309 114,556,302 132,237,324 123,266,000 205,602,328 2, 250, 698, 424' Notwithstanding this increase of exports of almost 1,000,000,000 pounds over the amount exported in 1917 the stock of hog products in storage on January 1, 1919, amounted to 805,904,407 pounds as compared with 590,634,147 pounds on January 1, 1918. The close of the war left the Food Administration among its other legacies of responsibility, the duty of maintaining this pledge of poliey to the swine producers of the country. Most of the hogs far- rowed in the spring of 1918 had, of course, not been marketed at the time of the signing of the armistice. The cost of production was necessarily high because the feed upon which they were raised was high. With the armistice, however, there came a considerable reduc- tion in the price of corn due to the apprehension on the part of the corn holders that there would be an immediate liberation of the low- priced corn from other corn-exporting countries. This decline in corn led the swine growers to fear a similar reduction in the price of hogs through the maintenance of the 13 to 1 ratio, and there was a consequent rush of hogs to the market in November which made it ex- ceedingly difficult to maintain the stabilized price agreed upon. To meet this situation and to work out a plan for executing its pledge the Food Administration met in conference with special rep- resentatives of the swine producers drawn from the leading corn and hog producing States of the Middle West and being a subcommittee of the Agricultural Advisory Committee, together with specially in- vited producers and representatives of the Department of Agricul- ture, the exporting packers and live-stock commission merchants operating in the leading market centers. At these conferences it was determined that in substitution of the previous plans of stabilization by holding the price of hogs to a certain proportion to the price of corn that the live-stck subcommittee of the Agricultural Advisory Committee, together with the special representatives of swine pro- ducers and the packers, should join with the Food Administration in determining for each month the price of hogs, taking into considera- tion the value of corn. It was further determined that the influence of orders would be directed to a maintenance of a stabilized price of live hogs so as to secure returns to the producer as near as possible to the stabilized basis. A price stabilization committee was also or- ganized with representatives upon it of all the interests represented 520 COLD-STOBAGB LEGISLATION, at the conferences. It was the duty of this committee to keep in close touch with the hog receipts at the various market centers and to arrange for the application of railroad embargoes when the receipts of hogs exceeded the total capacity of the local slaughtering plants and other facilities. Through the machinery thus established it has been possible to substantially carry out the plan of stabilization, nothwithstanding the unprecedented supply offered at all markets. The response of the American swine raisers to the appeal for in- creased production is another notable manifestation of the patriotic cooperation of the American people in the accomplishment of the program of the Food Administration. Not only did this increased production furnish a supply of greatly needed food in the closing months of the war, but it is of inestimable value in meeting the urgent requirements since the armistice. Beef. — ^Although no such intensive effort or detailed program was made for the stimulation of the production of beef, the prices pre- vailing since the war have had a marked effect in this direction. The total export of beef to Europe during 1918 was 711,309,583 pounds as compared with 311,773,815 pounds in 1917. In 1915 the export to Europe was 477,553,997 pounds and in 1916 318,362,802 pounds. Despite this greatly increased exportation the most recent estimate of the number of cattle in the country is 66,830,000, which is an increase of about 10,000,000 over the prewar period. These cattle, of course, are of lighter weight because of the rapid marketing . of mature stock. VI. PTJECHASE AND SALE OF FOODSTtTFF. The demands of the allied and neutral Governments and of our Army and Navy have absorbed a large part of our total food supply and have inevitably dominated the market in certain commodities. We had our experience with unrestrained buying by foreign pur- chasers in the spring of 1917, when their competitive demands upon our markets resulted in inflated prices and an unstable and demoral- ized domestic market in which speculation was rampant. Enormous foreign purchases of food were a necessity for victory, and the effect of these purchases upon our market could not be avoided, but the evils incident to unregulated bidding by buyers compelled to purchase without delay in unprecedented volume could be and were modified,- and the possibilities for good by the use of this power for stimulation and stabilization could be and were utilized. The Division of Coordination of Purchase, the Food Ad- ministration Grain Corporation, the International Sugar Committee, and recently the Sugar Equalization Board were the agencies utilized. Coordination of pwrchase. — Through arrangement between the United States and the allied Governments all the food requirements of the allied Governments were submitted to a joint commission, known as the allied provisions export commission, which gave notice to the Food Administration of these requirements. Upon receipt of such notice it was the function of the Division of Coordination of Purchase to advise as to the method of purchase which should be adopted in securing these requirements whereby the market condi- tions would be the least distributed and the securing of the quantities OOLD-STOBAGB LEGISLATION. 521 desired assured so far as possible. The purchases were made either through a plan of allocation throughout the industry concerned, recommended by the Food Administration, or bids were secured and passed to the purchaser for approval, or the purchaser was advised to go into the market and purchase the requirement direct. The Food Administration also made recommendation to the War Trade Board as to the approval of export of these requirements. For the purpose of coordinating purchases by other unusually large buyers, particularly the Army and the Navy, a Food Pur- chase Board was organized which was composed of representatives of the Secretary of War, 'Secretary of the Navy, Federal Trade Com- mission, and the Food Administration. Large prospective orders for the principal commodities which were under license control by the Food Administration were placed before the Food Purchase Board which decided whether the purchase should be allocated ; that is, whether it should be made by allocating it amongst the sellers of that commodity in the country. If a plan of allocation was ad- vised by the Food Purchase Board, the Food Administration, with whom each purchaser filed a statement of amounts needed, dis- tributed the allotments on a pro rata basis throughout the country, leaving it to the department for whom the allotment was made to inspect the goods and to complete the purchase if the goods were found to be satisfactory. Upon the basis of investigations into cost made by the Federal Trade Commission, the Food Purchase Board also recommended prices to the Army and Navy, which they might adopt if they saw fit. Other purchasers, such as the American Eed Cross, Commission for the Relief in Belgium, and Young Men's Christian Association also availed themselves of the facilities of the Food Purchase Board and the Division of Coordination of Purchase, but did not use it exclusively. FOOD ADMINISTRATION OBAIN COBOBATION. The Grain Corporation was by Executive order dated June 21, 1918, designated as the agency for carrying out the Government's guaranty provided by the, food control act for the 1918 wheat crop. A copy of this Executive order is hereto attached as Exhibit F. The following is the schedule of prices for the 1918 crop at the different terminals, which schedule takes into account the established difference in freight rates and relative distance from the consuming markets to the points named : New York $2.39J Philadelphia 2.39* Baltimore , 2.38i Newport News 2.38i Duluth 2.224 Minneapolis 2.21J Chicago 2.26 St. Louis 2.24 Kansas City 2.18 Omaha 2.18 New Orleans 1 2.28 Galveston 2.28 Tacoma, Seattle, Portland, Astoria, San Francisco, and Los Angeles 2.20 Intermountain basis f. o. b. outgoing cars 2.00 522 COLD-STOBAGE LEGISLATION, The Grain Corporation during the past year has stood ready to buy at the terminal markets, in approved elevators or warehouses,- all wheat offered at the Government price basis. The success of this arrangement in securing stabilization of the price of wheat is graphically shown by the chart atached hereto as Exhibit D, which shows the comparative fluctuation in price of wheat, corn, rye, barley, and oats from September, 1917, to December, 1918, inclusive. VII. MISCELLANEOUS ACTIVITIES. COIIATEBAL COMMODITIES. Various commodities indirectly connected with food have required the attention of the Food Administration because of their relation to the preservation or protection of food and a resulting importance in connection with the questions of conservation and prices of food. These commodities include ammonia used in ice manufacture, sisal and binder twine required for the harvesting of the wheat crop, arsenic for insecticides, glycerin, and food containers of all kinds. Ammonia. — In the fall of 1917 because of the War Department's requirements for ammonia for ammunition — these requirements be- ing greater than the total production of ammonia during the pre- ceding year — a shortage was threatened which would send the price to an exorbitant figure and endanger the supply of artificial ice. To avert this danger voluntary agreements were made in November, 1917, between the Food Administration and the manufacturers of anhydrous and aqua ammonia which provided for the allotment of the supply by the Food Administration. An interdepartmental am- monia committee was formed which consisted of members of the War Department, Navy Department, Department of Agriculture, Department of the Interior, War Industries Board, and the Food Administration, and through this committee relative needs were con- sidered and important allotments determined. To conserve ammonia a campaign was conducted in the winter of 1917-18 for the harvesting and storing of natural ice which resulted in the harvesting of the greatest crop in our history. This made pos- sible the shutting down of a large number of artificial-ice plants dur- ing the fall, winter, and early spring months. As a result of the foregoing measures and a supplementary campaign for the conserva- tion of ammonia, sales of ammonia to artificial-ice manufacturers during the first six months of 1918 were approximately 3,000,000 pounds less than for the same period in 1917, notwithstanding greatly increased sales of such ice to the Government. After the signing of the armistice and the consequent cessation of demands for ammonia by the Ordnance Department, the restrictions of the Food Administration were largely removed, and the War Trade Board was advised that from the conservation standpoint, the free exportation of ammonia might be permitted. Sisal and hinder twine. — To insure an adequate supply of twine for the binding of, our harvest at a reasonable price, supervision was exercised over the purchase and distribution of sisal. Manufacturers of binder twine entered into an agreement in 1917 which was ex- tended in 1918 to cover operations during the war, by which it was agreed that all sisal used should be purchased through the Food OOLD-STOKAGE LEGISLATION. 523 Administration, and should be allocated among manuJEaatureirs. The manufacturer agreed to sell at a price not exceeding the cost of his raw material plug conversion cost and a reasonaMe profits The Food Administration then conducted negotiations with the Comision Eeguladora of Yucatan, which absolute^ controlled the supply, for the purchase of the requirements of the United States, and a saving of 3 cents per pound was secured which represented a saving of approximately $6,000,000 to the American farmer. J%ite 6o^«.— To secure the importatipn of enough grain bags for the year 1918, and to curtail speculation and profiteering on these feed containers, the Food Administration on Februa^ 26; 1918, en- tered into voluntary agreements with the bag makers. Because of speculation in burlap in Calcutta, India, which threatened to cause a sharp advance in the price of bags in this country, the Food Administration also arranged for the importation of 4,000,000 bags at a reduced price. An agreement was concluded with the bag man- ufacturers, which provided for the sale of these bags at a reasonable price, and thus preventing speculation. Further negotiations con- cerning the price to be paid for imported jute bags were carried on with the British Government by the War Industries Board. Arsenic. — Here also a shortage was threatened and the high price was limiting the use of arsenic as an insecticide on food crops and in cattle dips. The entire industry, including producers and distribu- tors, was licensed in November, 1917, as stated in our last annual report. Special regulations governing licensees were promulgated, designed to insure a fair price to the consumer and to certain sales to those manufacturers using arsenic in the manufacture of less essen- tial commodities. The most important restriction was the curtail- ment of sales to the glass manufacturers. In August, 1918, a greatly increased demand for arsenic by the War Department and the Brit- ish Government threatened to absorb so much of the available supply as to require the actual prohibition of its use in the manufacture of glass and of certain stock dips. Even after these marked precautions, an acute shortage seemed inevitable, and at the time of the signing of the armistice the situa- tion was receiving most careful study with a view to devising further measures of protection. Fortunately, with the signing of the armis- tice a quantity of arsenic under contract with the War Department was released and an adequate supply for all domestic purposes seems to be assured. Eecommendation has now been made to the War Trade Board that the exportation of arsenic may be freely per- mitted. Tin plate.— The Canning Division of the Food Administration in- terested itself in the stimulation of the production of tin plate for canning purposes. With the aid of the Tin Plate Conservation Committee, the production of this commodity was greatljr increased in the months of May and June, so that the heavy requirements of the canning season were adequately met. The importation of the necessary palm oil to be used in the manufacture of tin plate was arranged for by the Food Admiaistration with the British Govern- ment. In cooperation with the War Industries Board, special directions were issued applying to manufacturers and packers of various prod- ucts such as baking powder, cocoa, condensed milk, macaroni, and 137690—19 34 524 COLD-STOEAdtE LEGISLATION. molasses. These directionsj which became effective October 1, 1918, were designed to effect a compulsory conservation of tin plate and paper by eliminating certain unnecessary uses of these products as containers. A copy of the directions is hereto attached as Ex- hibit CC. CANADIAN AND MEXICAN RELATIONS. It was found necessary to give special attention to our relations with Canada and with Mexico in regard to matters affecting food supply and regi^lation. For this work there was created a division of Canadian relations and one of Mexican relations, each in charge of a man familiar with these countries. Cordial relations with the Canadian food board have thus been maintained and the two coun- tries have constantly acted in harmony with regard to matters of food. It has been especially necessary to cooperate with regard to exports and imports of foodstuffs in order that the policy of one country might not be nullified by a conflicting policy in another and that it might not be necessary to set up impossible economic barriers along the boundary. There have been numerous problems to be worked out owing to war regulations and to changes in business con- ditions created by these regulations, especially with relation to inter- trading. Through the division of Mexican relations the Food Administra- tion has kept in close touch with the State Department and the War Trade Board in their dealings with Mexico and has made full rec- ommendations to the War Trade Board with respect to the amount of foodstuffs which could be furnished to Mexico. There is transmitted herewith as Exhibit FF a statement showing all receipts, payments, and expenditures by the Food Administration from all appropriations for the year ended December 31, 1918, both in the aggregate and classified according to title of appropriation from which and the purpose for which the expenditures were made. Detailed abstracts of the disbursements, item by item, have been submitted in the monthly reports to Congress required by section 19 of the food control act and are therefore not repeated in this re- port. The statement of receipts and disbursements and statement of purr chases and disposition of property by the Food Administration Grain Corporation for the year ended December 31, 1918, is transmitted herewith as Exhibit GG. Exhibit HH is a statement showing all persons appointed or em- ployed by the United States Food Administration during the year ended December 31, 1918, with the salary or compensation paid or allowed each. The same statement for the Food Administration Grain Corporation as of December 1, 1918, is attached as Exhibit II. An inventory of the property of the Food Administration as of December 31, 1918, is transmitted herewith as Exhibit JJ. CONCLUSION. The Food Administration has practically completed the tasks set for it as an implement in the war machinery of the Nation. Through OOLD-STOEAfiE LEGISLATION. 525 ihe sacrifice and extraordinary effort of the American people, the Allies were supplied with the food which they absolutely required if they were to remain in the war. Our Army and Navy at home and abroad secured their large requirements without stint. The Commis- sion for Relief in Belgium and other relief organizations, as well as certain of the neutral countries, secured enormous quantities of food from us. In the face of such abnormal and disturbing demands, ade- quate supplies were retained for the American people, and they were protected from the burdensome prices which would have resulted in 'the absence of regulation. By the terms of the law from which its powers are derived the Food Administration passes out of existence upon the formal procla- mation by the President of the termination of the present state of war between the United States and Germany. But since the signing of the armistice, the policy of the Food Administration has been, coincidently with the disappearance of war conditions, to relax, from time to time its regulatory measures, to reduce its working force, and cut down expenses. It is believed that by the 1st of March practically all the licenses and regulations will be canceled, excepting those which it is necessary to retain to carry out the Government's out- standing obligations. Only such working force will be retained after that time as is necessary to assure proper attention to the details of closing up the remaining activities. It should be explained that this report has been prepared in the absence of Mr. Hoover, United States Food Administrator, who has been in Europe since November, 1918, and it has, therefore, not been possible to submit it to him for his approval without unduly delaying its transmission to the Congress. Edgar Rickaed, Acting for Herbert Hoover, United States Food Administrator. Exhibit A. Report of the Activities of the Enforcement Division United States Food Administration from January 1, 1918, to December 31, 1918. The food-control act of August 10, 1917, contemplates two methods of pro- cedure in carrying its provisions into effect. In the first place, for certain acts which it prohibits and for other acts which it prescribes, recourse to ordinary legal proceedings is provided, either by fixing penalties for certain acts made criminal, or by establishing procedure for the seizure of hoarded food commodi- ties, or for requisitioning any supplies or any plant necessary to any public use. In the second place, the enforcement of the law is left to administrative action. It is with the second of these, vcith administrative or quasi judicial action, rather than resort to the courts, that the enforcement division has been chiefly occu- pied since the food-control act was approved. There have been instituted only very few, generally unimportant, criminal proceedings under the act, while the quasi judicial activities of the enforcement division (in addition to a large number of cases disposed of by State administrators without recourse to Wash- ington), include over 8,676 revocations of license, both limited and unlimited, unfair or blacklisting orders, refunds and contributions, temporary suspensions and minor penalties, requisitions and forced sales, and stop license orders. Prior to January 1, 1918, only six such penalties were imposed, consisting of four unlimited revocations, one limited revocation, and one requisition. 526 COLD-STORAGE 1.B6ISLA.TION. The records of the enforcement division show the imposition of the fol- lowing penalties: Total imposed Jan. 1 to Deo. 31, 1918. Total from Aug. IB, 1917, to Dec. SI, 1918. Out- standing Dee. 31, 1918. Termi- nated up to Dec. 31, 1918. tJuTimited revocations Limited revocations ■Unlimited unfair orders 1/imlted unfair orders Refunds and oontribjitions Tem^wrary 5tispensi„;, ' . , 3 i ■■ Roland W. Botden, . Chief Enforcement Divisk^. 530 COLD-STORAGE LEGISLATION. S A SIN 30 M _ O O I CD s g i o § *» OJ « fl> *■ To o ■*' n (u f I to S E -S! T3 ■o T3 5 $ § Di ? -c: *» 2 C •o (J u jr h. o O) •o (O 1J O) ■M O -M a> j: •«> ■»-• Ol •fe c o .,J ■* o Ol p 0) > *^ 4-» O) U a* ^ «VI ^^ ■*- « 11 ti o ^^ 2 k2 ^''o u-n u. 10 SIN30 COLD-STORAGE LEGISLATION. 531 Exhibit D. Chicago Cash Pbices First of Each Month — Contbact Geadbs. 1917 1918 SVT. OCT. MOT. Ott. JAN. TBS. \U&. APR. tUH JtmS JULY AOB. 8BT. OCT. ROV. DB. ,Dn.31> 3.20 3
  • «ll« 1 \ I ■^■B "^^ — ^ i>.10 V ; ( . .J \ ?.(K) C^. / \ y \ 1.90 a,.< f / \ 1.80 )^ \ f^ s J K^ \ 1 h ^ v^ 1 ^ >— '' v— / >s. 1.70 l.iO / s I y >— c ^ J-^ V^-< V— ( «. : 1.50 } r > / \ i 1,40 B»Pl V / \ \ \ /• ^. 1.10 )— * S y^ ( \ s y^ 1.2C < >•-. 1.10 •% s > 1.0( ■^ ^ \ 1 B. ,1( .a( ^ r^ > — ^ •n. .70 ( X )"^ > s v-< y — f > 1 V r ,^ '^''; .60 Osti / '"-^ ; ^ ( .50 )— < ) — ^ f .40 91 PI. CT, KG T. oi C. JA N. RI }. MAI I. a R. lU Y JU a jo; :y a "0. SE PT.O :t. .r ?v. 6! "0. B 19 17 19 18 532 COLD-STPKAG^ LEGISLATION. Exhibit E. Peohibiting Manufacture of Malt Liquors. by the pbesident of the united states a proclamation. Whereas, under and by virtue of an act of Congi-ess entitled " An act to provide further for the national security and defense by encouraging the pro- dustion, conserving the supply, and controlling the distribution of food products and fuel," approved by the President on August 10, 1917, it Is provided in sec- tion 15, among other things, as follows : "Whenever the President shall find that limitation, regulation, or prohibi- tion of the use of foods, fruits, food material, or feeds in the production of malt or vinous liquors for beverage purposes, or that reduction of the alcoholic content of any such malt or vinous liquor, is essential, in order to assure an adequate and continuous supply of food, or that the national security and defense will be subserved thereby, he is authorized, from time to time, to pre- scribe and give public notice of the extent of the limitation, regulation, prohibi- tion, or reduction so necessitated. Whenever such notice Shall have been given and shall remain unrevoked, no person shall, after a reasonable time prescribed in such notice, use any foods, fruits, food materials, or feeds in the production of malt or vinous liquors, or import any such liquors except under license issued by the President and in compliance with rules and regulations determined by him governing the production and Importation of such liquors and the alcoholic (■ontent thereof." Now, therefore, I, Woodrow Wilson, President of the United States of America, by virtue of the powers conferred on me by said act of Congress, do hereby find and determine that it is essential, in order to assure an adequate and continuous supply of food, in order to subserve the national security and defense, and because of the Increasing requirements of war industries for the fuel productive capacity of the country, the strain upon transportation to serve such industries, and the shortage of labor caused by the necessity of increasing the armed forces of the United States, that the use of sugar, glucose, corn, rice, or any other foods, fruits, food materials and feeds in the production of malt liquors Including near beer, for beverage purposes be prohibited. And by this proclamation I prescribe and give public notice that on and after October 1, 1918, no person shall use any sugar, glucose, corn, rice, or any other foods, fruits, food materials, or feeds, except malt now already made, and hops, in the produc- tion of malt liquors, including near beer, for beverage purposes, whether or not such malt liquors contain alcohol, and on and after December 1, 1918, no person shall use any sugar, glucose, corn, rice, or any other foods, fruits, food mate- rials or feeds. Including malt, in the production of malt liquors, including near beer, for beverage purposes, whether or not such malt liquors contain alcohol. In witness whereof, I have hereunto set my band and caused the seal of the United States to be aiBxed. Done in the District of Columbia, this 16th day of September in the year of our Lord 1918, and of the independence of the United States of America the one hundred and forty-third. [SEAL.] WooDBOW Wilson. By the President : Robert Lansing, Secretary of State. [No. 1483.] Exhibit F. Executive Order No. 2884. By section 14 of the act of Congress of August 10, 1917, entitled "An act to provide further for the national security and defense by encouraging the production, conserving the supply, and controlling the distribution of food products and fuel," it is provided that whenever the President shall find that an emergency exists requiring stimulation of the production of wheat, and that it is essential that the producers of wheat produced within the United States shall have the benefits of the guaranty provided for in that section, he shall COLD-STORAGE LEGISLATION. 533 determine and fix and give public notice of, a guaranteed price for wheat • and that thereupon the Government of the United States guarantees to every pro- ducer of wheat that he shall receive under conditions named, a price for wheat not less than such guaranteed price. Under this provision an Executive procla- mation was issued on February 21, 1918, making the necessary findings and fixing guaranteed prices for wheat when delivered at certain specified nrimarv markets. j^ j It is further provided that for the purpose of making any guaranteed price effCecUve under that section, or whenever he deems it essential in order to pro- tect the Government of the United States against material enhancement of its liabilities arising out of any guaranty under this section, the President may in Ills discretion purchase any wheat for which a guaranteed price shaU be fixed ilnder this section, and may hold, transport, or store it, or sell, dispose of, and deliver the same to any citizen of the United States or to any Government engaged In war with any country with which the Government of the United States is or may be at war or to use the same as supplies for any department or agency of the Government of the United States. ' It is further provided by section 11 of said act of Congress that the Presi- dent may from time to time purchase, store, provide storage facilities for, and sell for cash at reasonable prices, wheat, flour, meal, beans and potatoes ; and, by section 2 that in carrying out the purposes of such act, the President may create or use any agency or agencies, and utilize any department or agency of the Government. Acting under the authority of the foregoing provisions, I hereby designate tie Food Administration Grain Corporation, a corporation created in accord- ance with the provisions of said act of Congress and Executive order dated August 14, 1917, as the agency of the United States to carry out and make effective, subject to the control and direction of the United States Food Ad- ministrator, the provisions of the guaranty hereinbefore referred to, and to purchase, hold, transport, store, provide storage facilities for, sell, dispose of, and deliver wheat as provided in sections 11 and 14 of said act. I further direct that in order to make said guaranty effective and maintain the price of wheat to the grower at not less than the guaranteed basis the said corpora- tion shall offer and stand ready to purchase, and shall purchase to the full extent of its ability and available funds, all wheat tendered to it by any pro- ducer thereof at any primary market named in said proclamation of February 21, 1918, at the guaranteed price named therein for such market, provided that with the approval of the United States Food Administrator the said corpora- tion may pay any higher prices than the guaranteed basis for any grade of wheat in any given market, and may extend its offer to purchase to other holders of wheat on such conditions as it sees fit. I further direct that for such purpose the capital stock of such corporation be increased to 1,500,000 shares of the par value of $100 each ; that the United Sitates purchase from time to time at par, so much of the additional capital stock as may be required to supply the necessary capital to enable said cor- poration to carry out the provisions of this order, and that none of said addi- tional capital stock shall be sold to any person other than the United States. The United States Food Administrator is hereby authorized and directed to subscribe for and purchase all or any part of said additional capital stock in the name of and for the use and benefit of the United States, and to pay for the same out of the appropriation of $150,000,000 authorized by section 19 of the act of Congress hereinbefore entitled. I further authorize said corporation to borrow such sums of money, upon the security of wheat or flour owned by It, as may be required to carry out the provisions of this order. WooDROw Wilson. The White House, June 21, 1918. Exhibit G. Fixing Guabanteed Prices fob Wheat. BY THE president OF THE UNITED STATES A PEOOLAMATION. Whereas under and by virtue of an act of Congress entitled "An act to pro- vide further for the national security and defense by encouraging the produc- tion, conserving the supply, and controlling the distribution of food products and 534 COLD-STOEAGE LEGISLATION. fuel," approved by the President on the 10th day of August, 1917, It is provided among other thing as follows : " Sec. 14. That vsrhenever the President shall find that an emergenqy exists requiring stimulation of ttie production of wheat, and that is it essential that the producers of wheat, produced within the United States, shall have the bene- fits of the guaranty provided for in this section, he Is authorized, from time to time, seasonably and as far in advance of seeding time as practicable, to deter- mine and fix and to give public notice of what, under specified conditions, is a reasonable guaranteed price for wheat, in order to assure such producers a reasonable profit. The President shall thereupon fix such guaranteed price for each of the official grain standards for wheat as established under the United States grain standards act approved August 11, 1916. The President shaU from time to time establish and promulgate such regulations as he shall deem wise in connection with such guaranteed prices, a,nd In particular governing conditions of delivery and payment, and differences in price for the several standard grades In the principal primary markets of the United States, adopting number one northern spring or its equivalent at the principal interior primary markets as the basis. Thereupon, the Government of the United States hereby guarantees every producer of wheat produced within the United States that, upon compli- ance by him with the regulations prescribed, he shall receive for auy wheat pro- duced in reliance upon Oils guaranty within the period, not exceeding eighteen months, prescribed In the notice, a price not less than the guaranteed price therefor as fixed pursuant to this section. In such regulations the President shall' prescribe the terms and conditions upon which any such producer «hall - be entitled to the benefits of such guaranty. The guaranteed prices for the several standard grades of wheat for the crop of 1918 shall be based upon number one northern spring or Its equivalent at not less than $2 per bushel at the principal interior prlmaiy markets. This guaranty shall not be dependent upon the action of the President under the first part of tliis section, but is hereby made absolute and shall be binding until May 1, 1919." iNow, therefore, I, Woodrow Wilson, President of the United States, hy virtue of the powers conferred upon me by said act of Congress, and especially by section 14 thereof, do hereby find that an emergency exists requiring stimula- tion of the production of wheat, and that it is essential that the producers of wheat produced within the United States shall have the benefits of the guaranty provided for in said section ; and, in order to make effective the guaranty by Congress for the crop of 1918 and to assure such producers a reasonable profit, I do hereby determine and fix, and give public notice of reasonable guaranteed prices for No. 1 northern spring wheat and its equivalents at the respective principal primary markets as follows, to \vlt : Chicago, 111., ?2.20 per bushel; Seattle, Wash., $2.05 per bushel; Omaha, Ne*r., $2.15 per bushel ; San Francisco, Calif., $2.10 per bushel ; Kansas City, Mo., $2.15 per hushel; Los Angeles, Calif., $2.10 per bushel; St. Louis, Mo., $2.18 per bushel ; Galveston, Tex., $2.20 per bushel ; Minneapolis, Minn., $2.17 per bushel ; New Orleans, La., $2.20 per bushel ; Duluth, Minn., $2.17 per bushel ; Salt Lake City, Utah., $2 per bu^el; New York, N. T., $2.28 per bushel ; Great Falls, Mont., $2 per bushel ; Philadelphia, Pa.,' $2.27 per bushel; Spokane, "Wash., $2 per bushel; Baltimore, Md., $2.27 per bushel ; Pocatello, Idaho, $2 per bushel ; Newport News, Va., $2.27 per bushel ; Port Worth, Tex., $2.09 per bushel ; Charleston, S. C, $2.27 per bushel; Oklahoma City, Okla., $2;0§ per bushel; Savannah, Ga., $2.27 per bushel ; Wichita, Kans., $2.08 per bushel ; Portland, Oreg., $2.05 per bushel; and that the guaranteed price for the other grades established under the United States grain standards act approved August 11, 1B16, based on said price for No. 1 northern spring wheat at the respective principal primary markets of the United States above mentioned, will assure the producers of wheat produced within the United States a reasonable profit ; the guaranteed prices in the prin- cipal primary markets above mentioned being fixed .by adopting No. 1 northern spring wheat or its equivalents at the principal interior markets as the basis. For the purposes of such guaranty only, I hereby fix the guaranteed prices at the respective principal primary markets above mentioned for the following grades of wheat, to wit : No. 1 northern spring. No. 1 hard winter. No. 1 red winter, No. 1 durum. No. 1 hard white. The guaranteed prices at the respective principal primary markets aforesaid of all other grades of wheat established COLD-STOBAGE LEGISLATION. 535 under the United States grain standards act approved August H, 1916, shall be based on the above guaranteed prices and bear just relation thereto The sums thus determined and fixed are guaranteed by the Government of the United States at the respective principal primary markets of the United States above mentioned, to every producer of wheat of any grade so established under the United States grain standards act, upon the condition that said wheat is harvested in the United States during the year 1918, and offered for sale before the 1st day of June, 1919, to such agent or employee of the United States, or other person as may be hereafter designated, at any one of the above- mentioned cities, which are, for the purposes of this act, hereby declared to be the principal primary markets of the United States, and provided that such producer complies with all regulations which may^ be hereafter promulgated in regard to said guaranty by the President of the United States. In witness whereof, I have hereunto set my hand and caused the seal of the United States to be affixed. Done in the District of Columbia this 21st day of February, in the year of our Lord 1918, and of the independence of the United States of America the one hundred and forty-second. [SEii,.] WooDEOw Wilson. By the President: BoBBBT Lansing, Secretary of State. [No. 1430.] Exhibit H. Fixing Guabanteed Pbices fob Wheat. by the president of the united states of ameeica a pmclamation. Whereas, under and by virtue of an act of Congress entitled " An act to pro- vide further for the national security and defense by encouraging the produc- tion, conserving the supply, and controlling the distribution of food products and fuel," approved by the President on the 10th day of August, 1917, it is provided among other things as follows : " Sec. 14. That whenever the President shall find that an emergency exists requiring stimulation of the production of wheat and that it is essential that the producers of wheat, produced within the United States, shall have the bene- fits of the guaranty provided for in this section, he is authorized, from time to time, seasonably and as far in advance of seeding time as practicable, to deter- mine and fix and to give public notice of what, under specified conditions, is a reasonable guaranteed price for wheat, in order to assure such producers a reasonable profit. The President shall thereupon fix such guaranteed price for each of the official grain standards for wheat as established under the United States grain standards act approved August 11, 1916. The President shall from, time to time establish and promulgate such regulations as he shall deem wise ' in connection with such guaranteed prices, and in particular governing condi- tions of delivery and payment ; and differences in price for the several standard grades in the principal primary markets of the United States adopting number one northern spring or its equivalent at the principal interior primary markets as the basis. Thereupon, the Government of the United States hereby guaran- tees every producer of wheat produced within the United States that, upon com- pliance by him with the regulations prescribed, he shall receive for any wheat produced in reliance upon this guarantee within the period, not exceeding eighteen months, prescribed in the notice, a price not less than the guaranteed price therefor as fixed pursuant to this section. In such regulations the Presi- dent shall prescribe the terms and conditions upon which any such producer shall be entitled to the benefits of such guaranty." Now, therefore. I, Woodrow Wilson, President of the United States, by virtue of the powers conferred upon me by said act of Congress, and especially by section 14 thereof, do hereby find that an emergency exists requiring stimula- tion of the production of wheat, and that it is essential that the producers of wheat produced within the United States shall have the benefits of the guar- antee provided for in said section ; and, in order to make effective the guaran- tee by Congress for the crop of 1919 and to assure such producers a reasonable profit, I do hereby determine and fix, and give public notice of reasonable guar- 536 OOLD-STOEAGE LEGISLATION". anteed prices for No. 1 northern spring wheat and its equivalents at the respec- tive principal primary markets as follows, to wit : New York, N. Y., $2.39i per bushel ; Galveston, Tex., $2.28 per bushel ; Philadelphia, Pa., $2.39 per bushel; Tacoma, Wash., $2.20 per bushel; /-. Baltimore, Md., $2.38| per bushel ; Seattle, Wash., $2.20 per bushel ; Nevsrport News, Va., $2.38f per bushel; Portland, Oreg., $2.20 per bushel; Duluth, Minn., $2.22J per bushel ; Astoria, Oreg., $2.20 per bushel ; Minneapolis, Minn., $2.21J per bushel ; San Francisco, Calif., $2.20 per bushel; Chicago, 111., $2.26 per bushel ; Los Angeles, Calif., $2.20 per bushel ; ■ St. Louis, Mo., $2.24 per bushel ; Salt Lake City, Utah, $2 per bushel ; Kansas City, Mo., $2.18 per bushel ; Great Falls, Mont, $2 per bushel ; Omaha, Nebr., $2.18 per bushel ; Pocatello, Idaho, $2 per bushel ; New Orleans, La., $2.28 per bushel; Spokane, Wash., $2 per bushel; and that the guaranteed price for the other grades established under the United States grain standards act appoved August 11, 1916, based on said price for No. 1 northern spring wheat at the respective principal primary markets of the United States above mentioned, will assure the producers of wheat produced within the United States a reasonable profit ; the guaranteed prices in the principal priinary markets above mentioned being fixed by adopting No. 1 northern spring wheat or its equivalents at the principal interior markets as the basis. For the purposes of such guaranty only, I hereby fix the guaranteed prices at the respective principal primary markets above mentioned for the following grades of wheat, to wit : No. 1 northern spring, No. 1 hard winter. No. 1 red winter. No. 1 Durum, No. hard wMte. The guaranteed prices at the respective principal primary markets aforesaid of all other grades of wheat established under the United States grain standards act approved August 11, 1916, shall be based on the above guaranteed prices and bear just relation thereto. The sums thus determined and fixed are guaranteed by the Government of the United States at the respective principal primary markets of the United States above mentioned, to every producer of wheat of any grade so established under the United States grain standards act, upon the condition that said wheat is harvested in the United States during the year 1919, and offered for sale be- fore the 1st day of June, 1920, to such agent or employee of the United States, or other person as m?iy be hereafter designated, at any one of the above-men- tioned cities, which are hereby declared to be the principal primary markets of the United States, and provided that such producer complies with all regula- tions which may be hereafter promulgated in regard to said guaranty by the President of the United States. In witness whereof, I have hereunto set my hand and caused the seal of the United States- to be aflSxed. Done in the District of Columbia, this 2d day of September, in the year of our Lord 1918, and of the United States of America the one hundred and forty-third. [ SEAL.] WOODKOW WiLSON. By the President: Robert Lansing, Secretary of State. [No. 1481.] Exhibit I. United States Food Administration — Meat Division — Prices oe Hogs. statement of joseph p. cotton, chief of the .meat division. Chicago, November 3, 19lt. .Joseph P. Cotton, chief of the United States Food Administration meat divi- sion, to-day issued the following statement relative to the prices of hogs : The main purposes of the Food Administration as to hogs are four ; To see that the producer at all times can count on a fair price for his hogs so that it will be profitable to him, to see that the farmer increases the number of hogs bred, to limit the profit of the packer and the middleman, and to eliminate specu- lation. GGIiD-STOEA.anuts. and manufac- turers and distributors of confectionery containing peanuts, will not be required to obtain licenses.) Oleomargarine, lard, lard substitutes, oleo oil, or cooking fatt; (inrludiug but- terine, cocoanut oil butter, nut oil butter for cooking, edible tallow). Milk, butter, or cheese (Including buttermilk, whey butter and cottage cheese). [I — B— 2 (a). Insert after I— B— 2.] Reeonditioners of flour are subject to license under the Presinent's proclama- tion of October 8, 1917, licensing all persons engaged In the business of " manu- facturing (Including milling, mixing, and packing), or d'strlbuting iiiicluding buying and selling)," wheat fiour. They are also subject to the General License Regulations No. 1 and to Special License Regulations No. 2 governing manufac- turers of wheat fiour. The word manufacturer as used In the title to these reg- ulations Is considered to Include all processing. Including reconditioning. Rule 19 of such Special License Regulations pr€scribes the differential permitted to licensees reconditioning fiour. (Opinion A-112, July 26, 1918.) [I— B— 2 (b). Oct. 23, 1918. Substitute this for I— B— 2 (a).] An investigation is under way at present to determine just what status should b^ given to ship chandlers. Some of them are operating as retailers and some as wholesalers, the whole situation not being at all satisfactory. COLD-STOKAGE LEGISLATION. 551 Pending the determination of the matter it is hereby ruled that all ship chandlers must operate as wholesalers and be governed by the regulations applying to wholesalers. Ship chandlers who only have a retailer's license must apply for a wholesaler's license on or before November 7, 1918, and may continue doing business pending the issuance of the license, in the meantime being governed by the regulations applying to wholesalers. Federal food administrators in States in which ship chandlers are doing business will please give publicity to this announcement. (Oct. 23, 1918.) [ I — B — 2 — Continued. ] Condenserl, evaporated, or powdered milk, excluding malted milk. Fresh, canned, or cured beef, pork, or mutton, including veal, lamb, ham, canned corned beef, chipped beef, dried beef, sliced bacon whether in containers or not ; excluding the distribution of beef juice, bologna, canned chili meat, corned beef hash, deviled ham, luncheon tongue, mince meat, potted meatSj sausage, scrapple, tripe, veal loaf. Poultry or eggs, fresh or frozen, including dried egg albumen or dried yolk and canned eggs. Fresh or frozen flsh. Fresh fruits or vegetables, including Irish or sweet potatoes, lemons, oranges, berries. Canned peas. Canned dried beans, including canned pork and beans and chili con carne with beans. Cannel tomatoes, including tomato paste, pulp, or puree. Canned corn. Including canned hulled corn and canned hominy. Canned salmon or sardines, domestic or foreign. Dried prunes, apples, peadies. Dried raisins, excluding dried black grapes and currants. Soya-bean oil, soya-bean meal, palm oil, palm kernels, palm-kernel oil, copra, and copra oil. Sugar, sirups, or molasses, including raw, refined, clarified, plantation washed, and open-kettie sugar; sugar of milk; sorghum sirup; excluding beverage or medicinal sirups and rock-candy sirup. [I — B — 2 — continued (a). Substitute this for I — B — 2 — continued.] (Complete to July 30, 1918.) Condensed, evaporated, or powdered milk (excluding malted milk). Fresh, canned, or cured beef, pork, or mutton (including veal, lamb, ham, canned corn beef, chipped beef, dried beef, sliced bacon, whether in containers or not; excluding the distribution of beef juice, bologna, canned chili meat, corned-beef hash, deviled ham, luncheon tongue, mince meat, potted meats, sausage, rcrapple, tripe, veal loaf). . Poultry or eggs (fresh or frozen) (Including dried egg albumen or dnea yolk, and canned eggs). Fresh or frozen fish. Fresh fruits or vegetables (including Irish or sweet potatoes, lemons, oi- anges, berrie*!). Canned peas. , , ■,. „ „ Canned dried beans (including canned pork and beans and chili con caine with beans). . r"anned tomatoes (including tomato paste, pulp, or puree). Canned corn (including canned hulled corn and canned hominy). Canned salmon or sardines (domestic or foreign). Dried prunes, apples, peaches. Dried raisins (excluding dried black grapes and currants). Soya-bean oil, soya-bean meal, palm oil, palm kernels, palm kernel oil, copra, and copra oil. Mair a3ding""''rawrrefined, clarified, plantation-washed and open-kettle sufar^ugar of milkTsorghum sirup; excluding beverage or medicinal sirups and rock-candy sirup). 552 COLD-STOEAGE LEGISLATION. [I — B — 2 — continued (b). Substitute this for I — B— 2 — continued (a).] (Complete to July 30, 1918.) Condensed, evaporated, or powdered milk (excluding malted milk). Fresh, canned, or cured beef, pork, or mutton (including veal, lamb, ham, canned corn beef, chipped beef, dried beef, sliced bacon, whether in containers or not ; excluding the distribution of beef juice, bologna, canned chili meat, corned-beef hash, deviled ham, luncheon tongue, mince meat, potted meats, sausage, scrapple, tripe, veal loaf). Poultry or eggs (fresh or froze) (including dried-egg albumen or dried yolk, and canned eggs). Fresh or frozen fish. Fresh fruits or vegetables (including Irish or sweet potatoes, lemons, or- anges, berries). Canned peas. Canned dried beans (including canned pork and beans and chili con carne with beans). Canned tomatoes (including tomato paste, pulp, or puree). Canned corn (including canned huled corn and canned hominy). Canned salmon or sardines (domestic or foreign). Dried prunes, apples, peaches. Dried raisins (excluding dried black grapes and currants). Soya-bean oil, soya-bean meal, palm oil, palm kernels, palm kernel oil, copra, and copra oil. Sugar, sirups, molasses (including raw, refined, clarified, plantation washed and open-kettle sugar ; sugar of milk ; sorghum sirup ; excluding beverage or medicinal sirups and rock-candy sirup). Malt. [I— B— 3, 4.] STAPLE COMMODITIES STOKING. (3) Engaged in the business of storing wheat, rye, corn, oats, barley, beans, rice, cotton seed, cottonseed cake, cottonseed meal, cottonseed hulls, peanut meal, and malt. Note. — Those dealing in any of the commodities mentioned in section (2) or section (3) on an exchange or board of trade or similar instiution as defined by section 13 of the act of August 10, 1917, are not subject to license to the ex- tent of their dealings on such exchange or board of trade. TEEDS. (4) Engaged in the business of — (a) Importing, storing, distributing, or manufacturing (including mixing and processing of all kinds) any commercial mixed feeds (including dairy feeds, horse, and mule feeds, stock feeds, hog feeds, and poultry feeds). (ft) Manufacturing feeds from any of the following commodities or import- ing, storing, or distributing any of the following commodities as feeds or feed ingredients : Buckwheat, kaffir, feterita, malt sprouts, broom corn, baled straw, grain and seed screenings, animal or fish products or by-products, emmer, millet, spelt, cane seed, baled hay, linseed-oil cake, linseed-oil meal, beans, peas, millo, lentils, tankage, sunflower seed, dried distillers' grains, dried brewers' grains, dried yeast grains, and baled alfalfa. (c) Importing, manufacturing, storing, or distributing as feed any product or by-product of any of the following commodities : Shelled corn, ear corn, bar- ley, oats, wheat, rye, sugar cane, buckwheat, sorghum grains, rice, grain and seed screenings, soya beans, velvet beans, hay, peas, peanuts, coDra, palm nut, palm kernel, sugar beets, alfalfa, and straw. [I— B— 5, 6, 7, 8.] SALT-WATER FISHERMEN. (5) Engaged as salt-water fishermen, whether fishing independently or on shares, at any period of the year in the commercial distribution. Including catching and selling, of any and all varieties of salt-water fish, including menhaden, and of shellfish and crustaceans. Note. — A license is required to catch crawfish, crabs, scallops, clams, mussels, oysters, shrimps, and l(il)sters, but is not required to catch turtles, terrapin, or whales. Salmon fishermen are required to operate under license. COLD-STORAGE LEGISLATION. 553 BAKERS. (6) Engaged in the manufacture for sale of cake, crackers, biscuits, pastry or bread in any form, or other bakery products, whose consumption of flour, meals, and substitutes in the aggregate is three barrels or more per month on au average throughout the year. MISCELLANEOUS FOOD COMMODITIES MANUFACTUKERS. (7) Engaged in the business of manufacturing (including packing) : Alimentary paste. Breakfast cereals and other products derived from vs^heat or rye. Tomato soup, tomato catsup, or other tomato products. Fermented beverages containing less than one-half of 1 per cent alcohol. Mild-cured, hard-cured, salted, dried, smoked, pickled, or otherwise preserved salmon. Canned tuna. GREEN COFFEE IMPORTERS AND DISTRIBUTERS. (8) Engaged in the business of importing or distributing green cofEee. Note. — The following classes were subjected to license : Persons, etc., importing green coffee, whether or not they roast it before dis- posing of it. Wholesalers, jobbers, roasters, and all others who buy or otherwise deal in green coffee, whether or not' they roast it before disposing of it. Retailers who buy or otherwise deal in green coffee, whether or not they roast it before disposing of it, whose total gross sales of all food or feed commodities exceed $100,000 a y'ear. Brokers. In other words, all persons, firms, corporations, and associations who im- port, and all others ( except retailers whose gross sales of food or feed commodi- ties do not exceed $100,000 a year), who buy or otherwise deal in or handle green coffee, are required to obtain a Ucense. [I— B— 5, 6, 7, 8 (a). July 30, 1918. Substitute this for I— B— 5, 6, 7, 8.1 (Complete to July 30, 1918.) SALT-WATER FISHERMEN. (5) Engaged as salt-water fishermen, whether fishing independently or on shares, at any period of the year in the commercial distribution, including catch- ing and selling, of any and all varieties of salt-water fish, including menhaden, and of shell fish and crustaceans. Note. — A license is required to catch chawfish, crabs, scallops, clams, mussels, oysters, shrimp, and lobsters, but is not required to catch turtles, terrapin, or whales. Salmon fishermen are required to operate under license. BAKERS. (6) Engaged in the manufacture for sale of cake, crackers, biscuits, pastry or bread in any form, or other bakery products, whose consumption of flour, meals, and substitutes in the aggregate is 3 barrels or more per month on an average throughout the year. MISCELLANEOUS FOOD COMMODITIES MANUFACTURERS. (7) Engaged in the business of manufacturing (including packing) : Alimentary paste. Breakfast cereals and other products derived from wheat or rye. Tomato soup, tomato catsup, or other tomato products. !Npfi T* hpf^i* * Mild-cured, hard-cured, salted, dried, smoked, pickled or otherwise preserved salmon. Canned tuna. 554 COLD-STORAGE LEGISLATION. GEEEN COFFEE IMPOBTEKS AND DISTRIBUTORS. (8) Engaged in the business of Importing or distributing green coffee. Note. — The following classes were subjected to license : Persons, etc., importing green coffee, whether or not they roast it before dis- posing of it. Wholesalers, jobbers, roasters, and all others who buy or otherwise deal in green coffee, whether or not they roast it before disposing of it. Retailers who buy or otherwise deal in green coffee, whether or not they roast it before disposing of it, whose total gross sales of all food or feed commodities exceed $100,000 a year. Brokers. In other words, all persons, firms, corporations and associations who import, and all others (except retailers whose gross sales of food or feed commodities do not exceed $100,000 a year), who buy or otherwise deal in or handle green coffee, are required to obtain a license. [I — B — Exceptions.] SPECIAL EXCEPTIONS. The following persons, firms, corporations, and associations are excepted from having licenses : (a) Those doing a strictly retail business whose gross annual sales of all food commodities do not extend $100,000 are not subject to license on their retail activities. Note. — A retailer — i. e., a person whose business is selling food commodities to individual consumers — is not required to obtain a license in order to make sales to hotels, restaurants, boarding houses, hospitals, schools, and other large consumers of similar character, unles his total gross sales of food and feed commodities to both individual consumers and hotels, restaurants, etc., exceed $100,000 a year. (6) Common carriers as to the operations necessary to the business of common carriers. (c) Farmers, gardeners, cooperative associations of farmers or gardeners, including live-stock farmers, and other persons, with respect to the products of any farm, garden, or other land owned, leased, or cultivated by them. (d) MiUers of corn, oats, barley, or rice operating plants v?ith a daily capacity of less than 75 barrels. Note. — This exception does not apply to the extent that they are manufac- turers or mixers of any kind of feed under paragraph 4 above. (e) Oanners of peas, dried beans, corn, tomatoes, salmon, or sardines whose gross production does not exceed 500 case per annum, and all home canners and bona fide boys and girls' canning clubs recognized by the departments of Agriculture of the several States in the United States. { f) Manufacturers of maple sirup, maple sugar, or ipaple compounds. (g) Ginners, buyers, agents, dealers, or other handlers of cotton seed who do not handle more than 20 tons of cotton seed between September 1 and August 31 in any given year. Note. — Cotton seed that a person receives as rent or otherwise from a tenant must be Included in determining whether such person is subject to license by reason of his dealing in or handling more than 20 tons of cotton seed a year. (h) Brewers of malt liquor who do not malt their own grain. [I — B — Exceptions (a). Substitute for I — B — Exceptions.] (Complete to July 30, 1918.) SPECIAL EXCEPTIONS. The following persons, firms, corporations, and associations are excepted from having licenses : (a) Those doing a strictly retail business whose gross annual sales of all food commodities do not exceed $100,000 are not subject to license on their retail activities. Note. — A retailer — 1. e., a person whose business is selling food commodities to individual consumers — is not required to obtain a license in order to make COLD-STOBAGE LEGISLATIOIT. 555 sales to hotels, restaurants, boarding houses, hospitals, schools, and other large consumers of similar character, unless his total gross sales of food and feed commodities to both individual consumers and hotels, restaurants, etc . exceed $100,000 a year. (6) Common carriers as to the operations necessary to the business of com- mon carriers. (c) Farmers, gardeners, cooperative associations of farmers or gardeners, including live-stock farmers, and other persons, with respect to the products of any farm, garden, or other land owned, leased, or cultivated by them. {d) Canners of peas, dried beans, corn, tomatoes, salmon, or sardines whose gross production does not exceed 500 cases per annum, and all home canners and bona flde boys' and girls' canning clubs recognized by the departments of agriculture of the several States in the United States. (e) Manufacturers of maple sirup, maple sugar, or maple compounds. if) Ginners, buyers, agents, dealers, or other handlers of cotton seed who do not handle more than 20 tons of cotton seed between September 1 and August 31 in any given year. Note. — Cotton seed that a person receives as rent or otherwise from a tenant must be included in determining whether such person is subject to license by reason of his dealing in or handling more than 20 tons of cotton seed a year. (g) Those dealing in any of the above commodities on any exchange, board of trade, or similar institution as defined by section 13 of the act of August 10, 1917, to the extent of their dealings on such exchange or board of trade. (A.) Persons slaughtering, packing, and distributing fresh, canned, or cured beef, pork, or mutton whose gross sales of such commodities do not exceed $100,000 per annum. July 30, 1918. ExHiBrr L. [II— Title 1.] UNITED STATES FOOD ADMINISTRATION SPECIAL LICENSE REGU- LATIONS NO. II— WHEAT MILLERS AND MANUFACTURERS OF MIXED FLOURS. EfEective July 22, 1918. This pamphlet contains all of the special license regulations applying to the above licensees effective on and after July 22, 1918. Such licensees are also subject to the general license regulations dated May 3, 1918, which, together with the within special regulations, supersede and cancel all regulations for the regulation of such licensees, issued prior to July 22, 1918. [II— Title— 1 (a). Dec. 21, 1918. Substitute this for II— Title 1, and all other pages iu Series II.] UNITED STATES FOOD ADMINISTRATION SPECIAL LICENSE REGU- LATIONS NO. II— WHEAT MILLERS AND MANUFACTURERS OF MIXED FLOURS. All the regulations in this series that were outstanding on December 19, 1918, were repealed on that date, effective immediately. [II — Preface — 1.] License Proclamations. By proclamations issued on August 14, 1917, October 8, 1917, and January 10, 1918, all persons, firms, corporations, and associations engaged in the business of manufacturing wheat flour and wheat mill feed, and mixed flours containing more than 50 per cent of wheat flour, are required to secure a license from the United States Food Administration. Application for such license should be made to the United States Food Administration, License Division, Washington, D. C, on the form prepared for that purpose which may be secured upon request. 137690—19 36 556 COLD-STOEAGE LEGISLATION. [II— A— 1, 2, 3.] A. Special License Regulations Governing Manufactubees of Wheat Floub, Mixed Floitb, and Wheat Mill Feed. Dealing in wheat. — Any wheat flour miller who resells wheat without milling is subject in such operations to the rules governing dealers in wheat contained in a separate pamphlet. Dealing in fllour or feed. — Any wheat flour miller who buys flour or feed for resale is subject, in such dealings, to the rules and margins prescribed for wholesalers or retailers of such commodities. Mixed flour. — Mixed flour is defined for the purpose of these rules as a mixed flour containing 50 per cent or more of wheat flour. Wherever the words "wheat flour" are used in the following rules they shall be construed to include all such mixed flours and whole wheat or graham flours, unless other- wise stated. The words "wheat miller," wherever used in these rules, shall include manufacturers of mixed flour. Rule M. S. 1. Storage space subject to Government command. — ^The storage space or any part thereof In all warehouses, elevators, and other plants used for the storage of wheat or any products thereof shall be at the command of the United States Food Administration whenever the United States Food Admin- istrator, or his duly authorized representative, shall deem it necessary to utilize such space for governmental purposes. Rule M. S. 2. Storage of wheat limited.— 'Ho wheat shall be received for or kept in storage by any licensee other than for the United States Government or some agency thereof for a longer period than 30 days without the consent in writing of the United States Food Administrator, or his duly authorized representative. Rule M. S. 3. Thirty days' supply of unsold wheat and flour in the aggre- gate. — The wheat miller shall not keep on hand or have In his possession at any time wheat or wheat flour and wheat mill feed, in quantities in excess of the reasonable requirements of his business, for shipment or delivery by him during the next 30 days, nor shall he have purchased, or In transit, in addition to such 30 days' stock, more than a sufficient amount of wheat to maintain such 30 days' stocks, without the written permission of the United States Food Administration or its duly authorized representative: Provided, That this rule shall not prevent any licensee from having on hand not to exceed a carload of such commodities. Notes. — Special wheat storage permits. — Application for written permission to hold a greater quantity of wheat, or to hold wheat for a longer time than is permitted by rules 2 and 3, should be made to the manager of the grain zone in which the place of storage is located. It is the intention to grant such applications freely where the occasion justifies. Special wheat flour or mill feed storage permits. — Application for written permission to store a greater quantity of flour or mill feed, or to store flour or mill feed for a longer time than Is permitted by rule 3, should be made to the Federal food administrator of the State in which the place of storage Is located. [II— A— 1, 2, 3 (a). Aug. 27, 1918. Substitute this for II— A— 1, 2, 3.] A. Special License Regulations Governing Manufacturers of Wheat Flour, Mixed FloUr and Wheat Mill Feed, Dealing in wheat. — Any wheat flour miller who resells wheat without mill- ing is subject in such operations to the rules governing dealers in wheat con- tained in a separate pamphlet. Dealing in flour or feed. — Any wheat flour miller who buys flour or feed for resale Is subject, in such dealings, to the rules and margins prescribed for wholesalers or retailers of such commodities. Mimed flour. — Mixed flour is deflned for the purpose of these rules as a mixed flour containing 50 per cent or more of wheat flour. Wherever the words " wheat flour " are used in the following rules they shall be construed to Include all such mixed flours, and whole wheat or Graham flours, unless otherwise stated. The words " wheat miller," wherever used in these rules, shall Include manufacturers of mixed flour. COLD-STORAGE LEGISLATION. 557 Rule M. S. 1. Storage space subject to Oovemment command. — The storage space or any part thereof in all warehouses, elevators, and other plants used for the storage of wheat or any products thereof shall be at the command of the United States Food Administration whenever the United States Food Adminis- trator, or his duly authorized representative, shall deem it necessary to utilize such space for Governmental purposes. Rule M. S. 2 (as amended Aug. 27, 1918, effective Sept. 1, 1918). Storage of wheat limited. — No wheat shall be received for or kept in storage by any licen- see other than for the United States Government or some agency thereof for a longer period than 60 days without the consent in writing of the United States Food Administrator, or his duly authorized representative. Rule M. S. 3 (as amended Aug. 27, effective Sept. 1, 1918). Sixty days' sup- ply of unsold wheat and Your in the aggregate. — The wheat miller shall not keep on hand or have in his possession at any time wheat or wheat flour and wheat-mill feed, in quantities in excees of the reasonable requirements of his business, for shipment or delivery by him during the next 60 days, nor shall he have purchased, or in transit, in addition to such 60 days' stock, more than a sufficient amount of wheat to maintain such 60 days' stocks, without the written permission of the United States Food Administration or its duly authorized representative ; provided, That this rule shall . not prevent .any licensee from having on hand not to exceed a carload of such commodities. Note. — Special wheat-storage permits. — Application for written permission to hold a greater quantity of wheat flour, or mill feed, or to hold wheat flour, or mill feed for a longer time than is permitted by rules 2 and 3, should be made to the manager of the grain zone in which the place of storage is located. It is the intention to grant such application freely where the occasion justifies. [II— A— ,1, 2, 3 (b). Nov. 16, 1918. Substitute this for II— A— 1, 2, 3 (a).] A. Special License Regulations Governing Manufacturers of Wheat Flour. Mixed Flour, and Wheat Mill Feed. Dealing in wheat. — Any wheat flour miller who resells wheat without milling is subject in such operations to the rules governing dealers in wheat contained in a separate pamphlet. Dealing in flour or feed. — Any wheat flour miller who buys flour or feed for resale is subject, in such dealings, to the rules and margins prescribed for wholesalers or retailers of such commodities. Mixed flour.— Mixed flour is deflned for the purpose of these rules as a mixed flour containing 50 per cent or more of wheat flour. Wherever the words " wheat flour " are used in the following rules they shall be construed to include all such mixed flours, and whole wheat or Graham flours, unless otherwise stated. The words " wheat miller," wherever used in these rules, shall include manufacturers of mixed flour. Rule M. S. 1. Storage space subject to Oovemmsnt command. — The storage space oj anv part thereof in all warehouses, elevators, and other plants used for the storage of wheat or any products thereof shall be at the command of the United States Food Administration whenever the United States Food Administrator, or his duly authorized representative, shall deem it necessary to utilize such space for governmental purposes. . ., ^ ,, Rule M. S. 2 (as amended Nov. 12, 1918). Storage of wheat limited.— i^o wheat shall be received for or kept in storage by any licensee other than for the United States Government or some agency thereof for a longer period than 90 days without the consent in writing of the United States Food Administrator, or his duly authorized representative. - , ^ „ 7^ Rule M. S. 3 (as amended Nov. 12, 1918). ninety days' supply of unsold wheat and flour in the aggregate.— The wheat miller shall not keep on hand or have in his possession at any time wheat or wheat flour and wheat mill teed, in quantities in excess of the reasonable requirements of his business, for ship- ment or delivery by him during the next 90 ddys, nor shall he have purchased or in transit, in addition to such 90 days' stock, more than a sufficient amount of wheat to maintain such 90 days' stocks, without the written permission of the United States Food Administration or its duly authorized representative Provided, That this rule shall not prevent any licensee from having on hand not to exceed a carload of such commodities. „^u^^„ „ovrT,i.5«inr. ^OTE.-Special wheat storage per«ni«.-Application for ^"tten permission to hold a greater quantity of wheat flour, or mill feed, or to hold wheat floui 558 COLD-STORAGE LEGISLATION. or mill feed for a longer time than is permitted by rules 2 and 3, should be made to the manager of the grain zone in which the place of storage is located. It is the intention to grant such applications freely where the occasion justifies. [II— A— 4.] RULES KEGABDING WHEAT COKSEBVATION. TluLE M. S. 4. Minimum flour extraction. — The wheat miller shall not use more than 264 pounds of 58 pounds per bushel or heavier clean wheat in making 196 pounds of flour. In grinding wheat of other test weights he shall not use an amount in excess of that shown in the following schedule in making 196 pounds of flour : Test weight of wheat per bushel. -%'* pounds or heavier, 57 pounds .'16 pounds 5) pounds Wheat per 196 pounds flour. Pounds. 264 272 276 Percent- age of flour extraction. 74.3 73.2 72.1 71.0 Test weight of wheat per bushel. •'i't pounds ^Z pounds 52 pounds 51 pounds Wheat per 196 pounds flour. Pounds. 2S1 Percent- age of flour extraction. 69.8 68.6 67.2 Definition of clean wheat. — Clean wheat shall be construed to mean wheat after it has passed over the receiving and first milling separators. Definition of Red Dog. — Red Dog (flour or feed) shall be considered as wheat mill feed for the purpose of these regulations. Notes. — Custom milling and exchange transactions. — The above rule of ex- traction applies to custom milling and exchange transactions as well as to merchant milling. Quality of flour. — The above rule of extraction must be conformed to regard- less of the quality of flour produced. Labeling of packages. — The wheat miller complying with the foregoing rule may place upon his package the words "Milled in accordance with the United States Food Administration Eegulations." Allowable feed extraction. — If the wheat miller obtains a greater quantity of wheat mill feed, in addition to screenings, per barrel of flour, than is shown in the following schedule, he has violated the foregoing rule regarding flour extraction : Test weight of wheat per bushel. 58 pounds or heavier. 57 pounds 56 pounds 55 pounds Maximum permissible feed returns per 196 pounds flour manu- factured. Pounds. 68 72 76 80 Test weight of wheat per bushel. 54 pounds 53 pounds 52 pounds 51 pounds Maximum feed returns per 196 pounds flour manu- factured. Pounds, 85 90 96 102 [II— A— 5, 6, 7, 8, 9.] Rule M. S. 5. Wheat not to be used for feeding — Exceptions. — The wheat miller shall not, vidthout the written permission of the United States Food Ad- ministration, Feedingstuffs Division, W-ashlngton, D. C, grind, crack, or sell wheat or wheat flour for feeding purposes or use wheat or wheat flour in man- ufacturing or mixing feed : Provided, however. That poultry or pigeon feed con- taining not more than 10 per cent of wheat unfit for human consumption may be manufactured and sold : Provided, further, That any wheat unfit for human consumption and unfit for poultry or pigeon feed may be used for other feeding purposes. COLD-STOEAGE LEGISLATION. 559 Rule M. S. 0. Only one grade of flour to he made. — The wheat miller shall make only one grade of pure wheat flour, namely, 100 per cent " straight " flour, fxcept with the written permission of the United States Food Administration, and such 100 per cent flour shall not be subjected to separation or division. Note. — Application per permits should be made to the United States Food Administration, Cereal Division, flour milling section, Washington, D. C. RttLE M. S. 7. Use or sale of wheat flour for other than human consumption prohibited. — The wheat miller shall not use wheat flour or sell such flour to be used for any other purpose than human consumption, or for the manufacture of gluten flour or wheat starch, without the written permission of the United States Food Administration, Distribution Department, Washington, D. C. Rule M. S. 8. Manufacture of farina, purified middlings, semolina or special granular macaroni flour. — Farina, purified middlings, semolina, or special granu- lar macaroni flour shall be made only with the written permission of the United States Food Administration, Cereal Division, flour milling section, Washington, D. C. When permission is granted to manufacture such products the wheat miller using other than Durum wheat may separate from his wheat for that purpose not to exceed 5 per cent of the mill's wheat-flour production, and the wheat miller using Durum wheat may separate from his wheat for that purpose not to exceed 7 per cent of his total wheat-flour production, pro- vided that the total production of wheat flour and the products named abc ve in the aggregate shall not be less than is prescribed by preceding Special Rule M. S. 4 for flour extraction. Prompt and full reports of all sales of such special products, giving the names of purchasers, destinations, and amounts sold, must be made to the United States Food Administration, Cereal Division, flour milling section, 42 Broadway, New York City. Rule M. S. 9. Wheat not to be wostecJ.— The wheat miller rhall not subject wheat to any treatment or manipulation that will result in waste of wheat from which flour fit for human consumption can be made. [II-— A— 4, 5 6, 7, 8, 9 (a). Nov. 16, 1918. Substitute this for pp. II— A— 4 and II — A— 5, 6, 7, 8,9.] Rule M. S. 4. Minimum flour extraction. — (Repealed Nov. 12, 1918.) Rule M. S. 5. Wheat not to he used for feeding — Exceptions. — (Repealed Nov. 2, effective Nov. 4, 1918.) Rule M. S. 6. Only one grade of flaur to be made. — The. wheat miller shall make only one grade of pure wheat flour, namely 100 per cent " straight " fiour, except with the written permission of the United States Food Administration, and such 100 per cent flour shall not be subject to separation or division. Note. — Application for permits should be made to the United States Food Administration, Cereal Division, flour milling section, Washington, D. C. Rule M. S. 7. Use or sale of wheat flour for other than human consumption prohibited.— (Repesded Nov. 12, 1918.) Rule M. S. 8. Manufacture of Farina, purified middlings, Semolina, or special granular macaroni flour. — Farina, purified rniddlings, Semolina, or ?'pe- cial granular macaroni flour shall be made only with the written permission of the United States Food Administration, Cereal Division, flour milling section, Washington, D. C. When permission is granted to manufacture such products, the wheat miller using other than durum wheat may separate from his wheat for that purpose not to exceed 5 per cent of the mill's wheat flour production, and the wheat miller using durum wheat may separate from his wheat for that purpose not to exceed 7 per cent of his total wheat flour pro- duction, provided that the total production of wheat flour and the products named above in the aggregate shall not be less than is prescribed by preceding Special Rule M. S. 4 for flour extraction. Prompt and full reports of all sales of such special products, giving the names of purchasers, destinations, and amounts sold, must be made to the United States Food Administration, Cereal Division, flour milling section, 42 Broadway, New York City. Rule M. S. 9. Wheat not to be toasted.— The wheat miller shall not subject wheat to any treatment or manipulation that will result in waste of wheat from which flour fit for human consumption can be made. [II— A— 10.1 Rule M. S 10.— Manufacture of mixed flour.— The wheat miller shall not manufacture mixed flour containing less than 25 per cent of substitute flours, to wit. corn flour, barley flour, oat flour, rice flour, buckwheat flour, potato 560 COLD-STOEAGE LEGISLATION. flour, sweet potato flour, mile flour, Kaffir flour, feterlta flour, bean flour, cas- sava flour, taro Hour, or bnnana flour. AH corn flour and barley flour used shall conform to the specifications thereiror prescribed by the regulations governing corn and barley millers. All other substitute flours used shall be limited, as far as practicable, in moisture, fat content, and acidity, so that the resulting product shall have good keeping qualities. Notes. — The following are the specifications prescribed for corn flour and barley flour : Corn flour. — Shall be made from clean, sound com, hominy, grits, or cream meal, and shall be of a texture flne enough so that not less than 75 per cent will sift thi-ough No. 9XX bolting silk, and balance shall sift through No. 72 grits gauze; shall be of an even color and shall contain not more than 13J per cent moisture and li per cent fat by ether extraction, or 12J per cent moisture and 2 per cent fat. Not to exceed 70 pounds of corn flour shall be made from 100 pounds of corn. Such corn shall be clean and sound and contain not to exceed 14i per cent moisture. Barley flour. — Shall be milled from clean, sound barley and shall be of a texture flne enough to sift through No. 9XX bolting silk; and shall be of a uniform color and shall contain not more than llj per cent moisture and 1^ per cent fat by ether extraction, and not more than 55 pounds of barley flour shall be made from 100 pounds of clean, sound barley. Labeling. — The licensee manufacturing mixed flour must state upon the package the percentage of all ingredients therein in accordance with the require- ments of the Bureau of Chemistry, Department of Agriculture, under the pure food law. Tar. — Mixed flour can be manufactured only under regulations concerning mixed flour issued by the Commissioner of Internal Revenue under the internal revenue act approved June 13, 189S, as amended by act of April 12, 1902. Millers and blenders or others desiring to engage in the manufacturing or blending of mixed flour may obtain these regulations upon application to any collector of internal revenue or to the United States Internal Revenue Depart- ment, Washington, D. C., requesting specifically copies of regulations No. 25 concerning mixed flour. These regulations must be strictly complied with. [II— A— 10 (a). Aug. 27, 1918. Substitute this for II— A— 10.] Rule M. S. 10 (as amended Aug. 27, 1918, effective Sept. 1, 1918). Manufac- ture and labeling of mixed flour, whole wheat, and Graham flour, — The licensee shall not manufacture or sell any mixed flour containing corn meal, corn flour, barley flour, or rye flour without the written permission of the United States Food Administrator, unless it conforms to one of the following specifica- tions : Mixed wheat and barley flour shall be mixed in the proportion of 4 pounds of wheat flour to 1 pound of barley flour, each of such flours conforming to the standards of the United States Food Administration. Mixed wheat and corn flour shall be mixed in the proportion of 4 pounds of wheat flour to 1 pound of corn flour each of such flours coflforming to the stand- ards of the United States Food Administration. Mixed wheat, barley, and corn flour shall be mixed in the proportion of 8 loounds of wheat flour to 1 pound of corn flour and 1 pound of barley flour, each of such flour conforming to the standards of the United States Food Ad- ministration. Mixed wheat and rye flour shall be mixed in the proportion of 3 pounds of wheat flour to 2 pounds or more of rye flour, each of such flours conforming to the standards of the United States Food Administratloh, provided that if such flour contains more than 2 pounds of rye flour to 3 pounds of wheat flour, the percentage of ingredients shall be stated on each package. Whole wheat, entire wheat, or Graham flours : The licensee shall not manu- factiii'*' or sell whole wheat, entire wheat, or Graham flour unless such flour contains at least 95 per cent of the wheat berry. Labeling: Mixed flours conforming to the foregoing specifications should be labeled Victory Mixed Flour, and no flour shall be labeled Victory Mixed Flour unless it conforms thereto. Whole wheat, entire wheat or Graham flour con- forming to this rule may be labeled " Victory," but no such flour shall be so labeled unless it conforms to this rule. Note. — The term " Victory " is a descriptive name indicating that the flour contains substitutes in accordance with the Food Administration requirements. COLD-STOEAGE LEGISLATION. 561 It should be used by all manufacturers when producing this flour In a descrin- tive sense but not as a trade name. raa;.— Mixed flour can be manufactured only under regulations concerning mixed flour issued by the Commissioner of Internal Revenue under the internal revenue act approved June 13, 1«98, as amended by act of April 12, 1902 Millers and blenders or others desiring to engage in the manufacturing or blending of mixed flour may obtain these regulations upon application to any Collector of Internal Revenue or to the United States Internal Revenue Department, Wash- ington, D. C, requesting specifically copies of regulations No. 25 concerning mixed flour. These regulations must be strictly complied with, but the licensee will find them extremely simple in operation. The tax is small. Labeling. — The licensee manufacturing mixed flour must conform to all re- quirements of the Bureau of Chemistry, Department of Agriculture, in labeling such flour. Pancake and self-rising flours. — If the above rule interferes with the manu- facture of any established brands of pancake or self-rising flours, special appli- cation should be made to the United States Food Administration, Distribution Division, Washington, D. C, for permission to continue operation. [II— A— 10 (b). Sept. 20, 1918. Substitute this for II— A— 10 (a).] Rule M. S. 10 (as amended Sept. 20, 1918). Manufacturing and labeling of mixed flour, whole-wheat, and graham flour. — The licensee shall not manufac- ture or sell any mixed flour containing corn flour, barley flour, oat flour, or rye flour without the written permission of the United States Food Adminis- trator, unless It conforms to one of the following specifications : Mixed wheat and barley flour shall be mixed in the proportion of 4 pounds of wheat flour to 1 pound of barley flour, each of such flours conforming to the standards of the United States Food Administration. Mixed wheat and corn flour shall be mixed in the proportion of 4 pounds of wheat flour to 1 pound of corn flour, each of such flours conforming to the standards of the United States Food Administration. Mixed wheat and oat flour shall be mixed in the proportion of 4 pounds of wheat flour to 1 pound of oat flour, each of such flours conforming to the standards of the United States Food Administration. Mixed wheat, barley, and corn flour shall be mixed in the proportion of 8 pounds of wheat flour to 1 pound of corn flour and 1 pound of barley flour, each of such flours conforming to the standards of the United States Food Administration. Mixed wheat and rye flour shall be mixed in the proportion of 3 pounds of wheat flour to 2 pounds or more of rye flour, each of such flours conforming to the standards of the United States Food Administration, provided that if such flour contains more than 2 pounds of rye flour to 3 pounds of wheat flour, the percentage of ingredients shall be stated on each package. Labeling Victory: Mixed flours conforming to the foregoing specJifications should be labeled Victory Mixed Flour, followed by the names of the ingre- dients, and no flour shall be labeled Victory Mixed Flour unless it conforms to the above speciflcations. The term " Victory " is a descriptive name indicating that the flour contains substitutes In accordance with the Food Administration requirements. It shoud be used by all manufacturers, when producing this mixed flour, in a descriptive sense, but not as a trade name, and should be used in connection with other brands rather than alone. Its use, however, is not mandatory. Mixed wheat flour and other authorized substitute flours than above shall be mixed In the proportion of 4 pounds of wheat flour to 1 pound of such substitute flours, and each of such flours shall conform to the standards of the United States Food Administration. Such other mixed flours, however, can not be labeled Victory Flour. Whole wheat, entire wheat, or graham flours. The licensee shall not manu- facture or sell whole wheat, entire wheat, or graham flour unless such flour contains at least 95 per cent of the wheat berry. Whole wheat, entire wheat, or graham flour conforming to this rule may be labeled " Victory," but no such flour shall be so labeled unless it conforms to this rule. Taw. — Mixed flour can be manufactured only under regulations concerning mixed flour issued by the Commissioner of Internal Revenue under the internal- revenue act approved June 13, 1898, as amended by act of April 12, 1902. Millers and blenders or others desiring to engage In the manufacturing or blending of mixed flour may obtain these regulations upon application to any collector of 562 COLD-STORAGE LEGISLATION. internal revenue or to the United States Internal Revenue Department, Wash- ington, D. O., requesting specifically copies of regulations No. 25 concerning mixed flour. These regulations must be strictly complied with. Labeling. — The licensee manufacturing mixed flour must conform to all requirements of the Bureau of Chemistry, Department of Agriculture, in labeling such flour. Manufacture of pancake flours. — ^No permit is necessary for the manufacture of pancake or other similar flours in which no wheat flour is used. Oraham, entire wheat, or whole-wheat flours. — ^There is no prohibition in the above rule or elsewhere in United States Food Administration regulations against the manufacture of entire wheat or whole wheat flours, either by the grinding of the whole-wheat berry (provided such flour contains at least 95 per cent of the wheat berry), or against the manufacture of these products by the mixing of 100 per cent straight flour with clean wheat bran and middlings in the proportion of 4 pounds of wheat flour to 1 pound of cleaned wheat bran and middlings. Marmfacture of rmxed flours not mandatory. — ^The manufacture and sale of mixed flour is urged by the United States Food Administration, but is not mandatory. Sale of mixed flour vMhout substitutes. — ^Mixed flours made in accordance with the above speclflcations may be sold without substitutes. The following are the specifications which have been prescribed by the United States Food Administration for corn flour, barley flour, oat flour, arid rye flour, and all such flours used in mixing must conform to these specl- flcations : Corn flour shall be made from hominy, grits, cream meal, or clean, sound corn, and shall be of a texture fine enough so that not less than 75 per cent will sift through No. 9 XX bolting silk and balance shall sift through No. 72 grits gauze ; shall be of an even color and shall contain not more than 15 per cent moisture and fat in the aggregate, in no event to exceed 13J per cent moisture, and in no event to exceed 2i per cent fat by ether extraction. Barley flour shall be milled from clean, sound barley, and shall be of a tex- tare flue enough to sift through No. 9 XX bolting silk, and shall be of a imjjorm color, and shall contain not more than lli per cent moisture and 2i per cent fat by ether extraction, and not more than 55 pounds of barley flour shall be made from 100 pounds of clean, sound barley. Rye flour shall be milled from clean, sound rye, and shall be of a texture fine enough so that not less than 85 per cent shall sift through No. 9 XX bolting silk and balance through No. 8 XX silk; shall be of a uniform color, and shall not contain more than 13J per cent moisture and IJ per cent fat by ether extraction; and not more than a total of 70 pounds of white, straight, or dark rye flour shall be made from 100 pounds of clean, sound rye. If this product is separated into patent and dark rye flour, not more than 70 per cent of the extracted flour shall be labeled or sold as " patent." The dark rye flour which results shall not be subjected to further separation or division, but may contain not to exceed 2J per cent fat. Oat flour shall be milled from oat groats made from clean, sound oats, or from rolled oats or oat meal, and shall be ground to a texture fine enough so that not less than 70 per cent will sift through 7 XX bolting silk and balance through No. 52 grit gauze, and shall contain not to exceed 10 per cent moisture and 2 per cent fiber. [11 — A — 10 (c). Nov. 16, 1G18. Substitute this for II— A — 10 (b).] Rule M. S. 10. Manufacture and labeling of mixed flour, whole wheat, and Oraham ^OMr.— (Repealed Nov. 12, 1918.) [II— A— 11, 12, 13.] PROFITS, PRICES, AND DITFEEENTIALS. Rule M. S. 11. Wheat flour and feed to be sold at reasonable advance over cost of wheat and packages. — The wheat miller shall sell flour and feed at not more than a reasonable advance over the average purchase price of the wheat from which it is manufactured plus the cost of packages : Provided, That if any such miller pays more for wheat than the customary .market price in that locality, as evidenced by the fair guaranteed price basis established by the President's proclamation of February 21, 1918, he shall not be permitted to include in his average purchase price, for the purpose of this rule, the excess over such customary market price. COLD-STORAGE LEGISLATION. 563 Notes.— Fair price schedules.— The United States Food Administration will publish from time to time and furnish to any wheat miller a maximum fair- price schedule for flour and feed established with relation to the guaranteed price basis for wheat. Any sales of flour or feed in excess of this fair-price schedule will be regarded as a violation of the above rule, and any price at or below the fair-price schedule will be regarded as a compliance with the above rule. Mixed flours. — The above rule and fair-price schedule apply to " mixed flour " containing 50 per cent of wheat and whole wheat and Graham flour, as well as to wheat flour. Sales of mixed flour, whole wheat, and Graham flour will be considered to return an excessive proflt if made at a price in excess of the fair-price schedule or of the licensee's current selling price of wheat flour. Soft wheat feeds. — The Food Administration will regard as reasonable the sale of wheat mill feeds containing not less than 90 per cent soft winter wheat at a price not more than $2 in excess of the maximum fair-price schedule for other wheat mill feeds : Provided, That all shipments or deliveries of such mill feeds are made in packages which are plainly marked " Manufactured from soft winter wheat." Rule M. S. 12. Package charge. — In arriving at the per barrel package cost for the purpose of rule 11 the licensee shall use the current cost of two 98-pound cotton sacks of standard size and grade as quoted for lots of 1,000 bags, plus any freight or transportation charges. The charge for any other size or style of packages as furnished by mill or buyer shall be calculated on the basis of such OS-pound cotton sacks, plus or minus the differential which will be indi- cated from time to time by the United States Food Administration. Rule M. S. 13. Flour price schedule and differentials should be displayed in mill. — The wheat miller shall cause to be displayed in his principal place of busi- ness and mills, warehouses, and agencies maintained, controlled, or operated by him such flour-price schedule and package difEerentials as may be furnished to him from time to time by the United States Food Administration, and a schedule showing cost of sacks and other charges. He shall furnish copies of any such documents to buyers upon request. [II— A— 11, 12, 13 (a). Sept. 20, 1918. Substitute this for II— A — 11, 12. 13, and •II— A— 11, 12. 13.] PEOriTS, PRICES, AND DIFFEKENTIALS. Rule M. S. 11 (as amended Sept. 20, 1918). Wheat flow, mixed flour and feed to be sold at reasonable advance over cost of wheat and packages. — The wheat miller shall sell flour and feed at not more than a reasonable advance over the average purchase price of the wheat from which it is manufactured, plus the cost of package : Provided, That if any such miller pays more for wheat than the customary market price in that locality, as evidenced by the fair guaranteed price basis established by the President's proclamation of Feb- fuary 21, 1918, he shall not be permitted to include in his average purchase price, for the purpose of this rule, the excess over such customary market price. Notes. — :Fair price schedules.— The United States Food Administration will publsh from time to time and furnish to any wheat miller a maximum fair- price schedule for flour and feed established with relation to the guaranteed- price basis for wheat. Any sales of wheat flour, mixed flour, whole-wheat or graham flour or wheat mill feed in excess of this fair-price schedule will be re- garded as a violation of the above rule, and any sale at a price at or below the fair-price schedule will be regarded as a compliance with the above rule. Mixed flours. — The above rule and fair-price schedule apply to " mixed flour " and whole-wheat and graham flour, as well as to wheat flour. Sales of mixed flour, whole-wheat and graham flour will be considered to return an excessive proflt if made at a price in excess of the fair-price schedule or of the licensee's current selling price of wheat flour. Soft wheat feeds. — The Food Administration will regard as reasonable the sale of soft, winter-wheat mill feeds at a price not more than $2 in excess of the maximum fair-price schedule for other wheat mill feeds: Provided, That all shipments or deliveries of such mill feeds are made in packages which are plainly marked " Soft winter wheat." Wheat screenings. — Any sales of wheat screenings in excess of the fair price schedule for bran will be regarded as a violation of Rule M. S. 11 and cause for revoking the offender's license. Interest on arrival drafts. — Interest on arrival drafts on sales of flour and feed may be included in invoices as a separate item, and is chargeable over the 564 COLD-STORAGE LEGISLATION. fair-price scliedules wliere definite arrangements to that effect are made be- tween buyer and seller. Self-rising wheat flour. — The Food Administration will regard as reasonable the sale of self-rising wheat flour at a price not more than 50 cents per barrel over the licensee's maximum fair-price schedule for 100 per cent straight-grade wheat flour. Blenders. — The Food Administration will regard as reasonable a margin of 25 cents per barrel over average cost, for blending wheat flours or for blending wheat flours with substitutes, the cost to be considered as the average invoice price delivered at the blending plant. To the above carload basis it will be considered reasonable that blenders add the selling margins covering various classes of sales, as per Rule M. S. 14. Rule M. S. 12. Package charge. — In arriving at the per barrel package cost for the purpose of Rule 11 the licensee shall use the current cost of two 98- pound cotton sacks of standard size and grade as quoted for lots of 1,000 bags, plus any freight or transportation charges. The charge for any other size or style of packages as furnished by mill or buyer shall be calculated on the basis of such 98-pound cotton sacks, plus or minus the differential which will be indi- cated from time to time by the United States Food Administration. Rule M. S. 13. Flour price schedule and differentials should he displayed in mill. — The wheat miller shall cause to be displayed in his principle place of business and mills, warehouses, and agencies maintained, controlled, or operated by him, such flour-price schedule and package differentials as may be furnished to him from time to time by the United States Food Administration, and a schedule showing cost of sacks and other charges. He shall furnish copies of any svich documents to buyers upon request. [II— A— 11, 12, 13 (b). Dec. 4, 1918. Substitute tUs for II— A— 11, 12, 13 (a).] PROFITS, PEICBS, AND DIFFEBENTIALS. Rule M. S. 11 (as amended Sept. 20, 1918). Wheat flour, mixed flour, and feed to Be sold at reasonable advance over cost of wheat and packages. — The wheat miller shall sell flour and feed at not more than a reasonable advance over the average purchase price of the wheat from which it is manufactured plus the cost of packages : Provided, That if any such miller pays more for wheat than the customary market price in that locality as evidenced by the fair guaranteed price basis established by the President's proclamation of February 21, 1918, he shall not be permitted to Include in his average purchase price, for the purpose of this rule, the excess over such customary market price. Note. — Fair-price schedules. — The United States Food Administration will publish from time to time and furnish to any wheat miller a maximum fair- price schedule for flour and feed established with relation to the guaranteed price basis for wheat. Any sales of wheat flour, mixed flour, whole wheat or graham flour, or wheat mill feed in excess of this fair-price schedule will be regarded as a violation of the above rule, and any sale at a price at or below the fair-price schedule will be regarded as a compliance with the above rule. Mixed flours. — The above rule and fair-price schedule apply to " mixed flour " and whole wheat and graham flour, as well as to wheat flour. Sales of mixed flouri whole-wheat and graham flour will be considered to return an excessive profit if made at a price in excess of the fair-price schedule or of the licensee's current selling price of wheat flour. Soft wheat feeds. — The Food Administration will regard as reasonable the sale of soft winter wheat mill feeds at a price not more than $2 in excess of the maximum fair -price schedule for other wheat mill feeds : Provided, That all shipments or deliveries of such mill feeds are made in packages which are plainly marked " Soft winter wheat." Wheat screenings. — (Canceled Dec. 3, 1918.) Interest on arrival drafts. — Interest on arrival drafts on sale of flour and feed may be included in invoices as a separate item and is chargeable over the fair-price schedules where definite arrangements to that effect are made between buyer and seller. Self-raising leheat flour. — The Food Administration will regard as reasonable the sale of self-rising wheat flour at a price not more than 50 cents per barrel over the licensee's maximum fair-price schedule for 100 per cent straight grade wheat flour. ' Blenders. — The Food Administration will regard as reasonable a margin of 25 cents per barrel over average cost for blending wheat flours or for blending COLD-STOBAGE LEGISJjATION. 565 wheat flours with substitutes, the cost to be considered as the average invoice price delivered at the blending plant. To the above carload basis it will be considered reasonable that blenders add the selling margins covering various classes of sales as per Eule M. S. 14. Rule M. S. 12. Package charge.— In arriving at the per barrel package cost for the purpose of rule 11 the licensee shall use the current cost of two 98-pound cotton sacks of standard size and grade as quoted for lots of 1,000 bags plus any freight or transportation charges. The charge for any other size or style of packages as furnished by mill or buyer shall be calculated on the basis of such 98-pound cotton sacks plus or minus the difEerential which will be indi- cated from time to time by the United States Food Administration. BuLE M. S. 13. Flour-price schedule and difiEerentials should be displayed in mill. The wheat miller shall cause to be displayed in his principal place of business and mills, warehouses, and agencies maintained, controlled, or oper- ated by him such flour-price schedule and package differentials as may be furnished to him from time to time by the United States Food Administration and a schedule showing cost of sacks aild other charges. He shall furnish copies of any such documents to buyers upon request. [*II — A — 11, 12, 13. Insert this after II— A — 11, 12, 13.] Note to Rule II — ^A — 11. Wheat screenings. — Any sales of wheat screenings in excess of the fair-price schedule for bran will be regarded as a violation of Eule M. S. II and cause for revoking the offender's license. (Aug. 24, 1918.) [*n— A— 11, 12, 13 (a). Sept. 26, 1918. This should follow II— A— 11, 12, 13 (a).] Note to Rule II— A— 12— (Effective Sept. 18, 1918.) Package differentials. [Basis 98 pounds cotton.] Pounds. 196 140 98 96 49 48 24i 24 m 12 10 5 3i 3 2 49 48 24i 24' 121 12 10 Wood, 80.60 over basis Wood, $1.35 over ba.sis Cotton, basis (2 to barrel) Jute, same as basis Jute, $0.05 over basis (2 to barrel) Cotton, S0.20 under basis (2 to barrel) Cotton, $0.20 over basis (4 to barrel) Cotton, same as basis Cotton, $0.46 over basis (8 to barrel) Cotton, $0.26 over basis (8 to barrel) Cotton, $0.80 over basis (16 to barrel) Cotton, $0.60 over basis (16 to barrel) Cotton, $1.20 over basis (20 to barrel) Cotton, $0.'90 over basis (24 to barrel) Cotton, Sl.lO over basis (28 to barrel) Cotton, $1.06 over basis (32 to barrel) Cotton, $1.70 over basis (40 to barrel) Cotton, $1.66 over basis (66 to barrel) Cotton, $1.70 over basis (64 to barrel) Cotton, $2.65 over basis (96 to barrel) Paper, $0.05 under basis (4 to barrel) Paper, $0;25 under basis (4 to barrel) Paper, $0.06 over basis (8 to barrel) Paper, $0.05 under basis (8 to barrel) Paper, $0.25 over basis (16 to barrel) Paper, $0.06 over basis (16 to barrel) Paper, $0.60 over basis (20 to barrel) Paper, $0.15 over basis (24 to barrel) Paper, $0.40 over basis (28 to barrel) Paper, $0.55 over basis (32 to barrel) Paper, SO. 70 over basis (40 to barrel) Paper, 80.85 over basis (56 to barrel) Paper, S0.96 over basis (64 to barrel) Paper, 81.60 over basis (96 to barrel) Outside jute or cotton envelopes, $0.60 per barrel additional Outside paper envelopes, 80.40 per barrel additional $0. 05 15 .05 .05 .05 .05 .10 .10 .10 .10 .15 .15 .15 .20 .25 .25 .35 .35 .35 .50 .10 .10 .12 .12 .18 .18 .20 .26 .30 .30 . 46 . 45 . 46 . 7t, .10 . 10 566 COLD-SIJOBAGE LEGISLATION. All sales to be made basis 98-pound cotton. Where flour is sold on basis 98-pound cotton sack and delivery is made in buyer's sack, the invoice price shall be arrived at by deducting from the selUng price the current cost of two 98-pound cotton sacks. To bulk price thus obtained shall be added charges over bulk price for packing flour in buyer's sacks as named above. Seller or buyer may not have option of shipping flour in cotton or jute sacks vi'here either have been specified at time of sale, except as may be agreed to by buyer and seller at time of shipment. [II— A— 14.] Rule M. S. 14. Maximum permissible margins over car-lot bulk on variom classes of sales.— All sales of wheat flour and wheat mill feed shall be classified as follows, and the wheat miller shall not charge more than the maximum mar- gins indicated for each cass over his car-lot price, bulk, mill, cash, or draft terms : Class A : Sales to any buyer in carload lots, bulk, mill, cash, or draft attached to bill of lading. — Basis. Class B : Sales to any buyer in mixed carloads of wheat fiour, wheat-flour substitutes, and feed (containing at least 40 per cent of feeds and/or wheat flour substitutes) — Flour, not more than 25 cents per barrel over basis; feed, not more than 50 cents per ton over basis. Class C : Sales of " consigned " flour to wholesale dealers from cars or docks, in carload lots (not delivered), 25 cents per barrel over basis. Class D : Sales of " consigned " flour to wholesale dealers, from cars or docks, in less than carload lots (not delivered), 35 cents per barrel over basis. Class E : Sales of flour to any buyer, other than individual consumer, less- than-carload lots (not delivered) and excepting sales as per schedules "C" and " D " — Not more than 50 cents per barrel over basis. Class F : Sales of flour in less than carload lots to individual consumers (not including bakers or public eating places) — Not more than $1.20 per barrel over basis. Class G : Sales of feed to wholesale dealers in less than carload lots and not less than 1 ton — ^Not more than $1 per ton over basis. Class H : Sales of feed to retail dealers in less than carload lots and not less than 1 ton — Not more than $2 per ton over basis. Class I : Sales of feed in less than ton lots to feed dealers — Not more than |3 per ton over basis. Notes. — Credit. — Where credit is extended on flour or feed, only the actual interest may be added. Only one margin over basis permitted.— Not more than one of the margins over basis, as indicated above, shall be added by the wheat miller on the sale of any lot of flour or feed. Sales of feed to consumers. — Sales of feed to consumers must be made at not more than a reasonable margin over basis. The Federal Food Administrator of the State where the mill is located will indicate what margins will be con- sidered reasonable. [II— A— 14 (a). Sept. 20, 1918. Substitute tMe for II— A— 14.] Rule M. M. S. 14 (as amended Sept. 20, 1918). Maximum permissible margins over carlot bulk on various classes of sales. — ^All sales of wheat flour and wheat mill feed shall be classified as follows, and the wheat miller shall not charge more than the maximum margins indicated for each class over his carlot price, bulk, mill, cash, or draft terms : Class A : Sales to any buyer in carload lots, bulk mill, cash, or draft attached to bill of lading. — Basis. Class B : Sales to any buyer in mixed carloads of wheat fiour, wheat flour sub- stitutes, and feeds. — Flour, not more than 25 cents per barrel over basis ; feed, not more than 50 cents per ton over basis. Class O : Sales of " consigned " flour to wholesale dealers from cars or docks, in carload lots (not delivered), 25 cents per barrel over basis. Class D : Sales of "consigned" flour to wholesale dealers, from cars or docks ; in less than carload lots (not delivered), 35 cents per barrel over basis. Class E : Sales of flour to any buyer, other than individual consumer, less than carload lots (not delivered) and excepting sales as per Schedules "C" and •'D" — Not more than 50 cents per barrel over basis. COLD-STORAGE LEGISLATION". 567 Class F: Sales of flour in less than carload lots to individual consumers (not induding bakers or public eating places) -Not more than $S per Cirel over Class G : Sales of feed to wholesale dealers in less than carload lots and not less than one ton— Not more than $1 per ton over basis th^^f^S' ^^^f °* ^^.l^ *°a.o^t^" "dealers in less than carload lots and not less than 1 ton— Not more than $2 per ton over basis. Class I : Sales of feed in less than ton lots to feed dealers— Not more than $3 per ton over basis. .So?es of feed to consumers.— Hales of feed to consumers must be made at not more than a reasonable margin over basis. The Federal food administrator of the btate where the mill is located will indicate what margins will be considered reasonable. Notes.— Credit and deUvery on flour.— ^ot more than 25 cents per barrel for delivery and credit may be charged in addition to the above margins where flour IS delivered to the buyer's door, including all charges for credit if credit is extended, ^^'here credit is extended without delivery, only the actual interest may be added. Brokerage.— Brokei-a-ge may not be added to the fair price schedule either on flour or feed. Credit and delivery charges on feeid. — Not more than a reasonable cartage or trucking charge may be made where mill feed is delivered to the buyer's door. Where credit is extended only the actual interest may be added. Cartage. — No charge for cartage or trucking on flour or feed to a station or dock at the town where the mill is located mny be made. Only one margin over basis permitted. — Not more than one of the margins over basis, as indicated above, shall be added by the wheat miller, on the sale of any lot of flour or feed. [II— A— 15, 16, 17, 18, 19.] Rule M. S. 15. Permissible price differential for farina, pwrifled middlings, semoUna, or special granular macaroni flour. — Wheat flour millers manufactur- ing farina, purified middlings, semolina, or special granular macaroni flour, under the special permission of the United States Food Administration, flour milling session, Washington, D. C, may charge a price for such products not to exceed 40 cents per barrel above the licensee's fair price of 100 per cent straight grade flour on date of sale. RtntE M. S. 16. Price differential on table bran. — Bran intended for human consumption, so-called " table bran," may be sold at a reasonable advance over the licensee's fair price for bran. Rt.:le M. S. 17. Differentials and returns on wheat mill feed. — In selling wheat mill feed to the consumer at the mill door, if the purchaser desires to buy wheat mill feed in bulk and the sacks are emptied and left at the mill in undamaged condition, the miller shall not add to the purchase price any charge for sacks. In selling various grades of wheat mill feeds in carload lots, on terms of cash or draft attached to bill of lading, the miller shall sell same at a price not in excess of his car-lot price for mixed feed, bulk mill, plus or minus the following dif- ferentials : Shorts, standard middlings, gray shorts, gray middlings, flour middlings, or red dog, with or without screenings, 75 cents per ton over basis. Bran, with or without screenings, $1.25 per ton under basis. Note. — The wheat miller may make such separations of wheat mill feeds as his trade may demand, but if the total returns received by him from the sale of wheat mill feed manufactured from any given wheat exceeds the amount which the Food Administration considers to return a reasonable profit on an equal quantity of wheat mixed feed, i. e., the entire mill run of wheat mill feed, it will be considered that the miller has violated Rule M. S. 11. Rule M. S. 18. Feed to be mixed in 1917 proportion only. — No wheat miller shall mix any greater percentage of wheat mill feed with other feeding stuffs, or sell any greater percentage to feed mixers for such mixing, than he mixed or sold in the year 1917. Rule M. S. 19.— Differential for reconditioning and blending. — The licensee who blends or reconditions flour not of his own manufacture shall not sell such flour in carload lots at more than 25 cents per barrel over the purchase price ; provided that in making sales of the character of those described in Rule 14 under 568 COLD-STOEAGE LEGISLATION. Classes B, C, D, E, and F, he may add not to exceed the additional margins pre- scribed therein for such sales. Note. — This rule does not apply to wheat millers mixing their own wheat ilour with purchased wheat or substitute flours. Such mixed flour meal must be sold at not more than the licensee's price for wheat flour, in accordance with Rule M. S. 11. [II— A— 20, 21.1 RuT.E M. S. 20. Custom and exchange grinding. — The wheat miller who receives wheat from farmers' wagons and grinds such wheat on a toll basis, or exchanges such wheat for flour and feed, may charge not to exceed 35 cents per bushel for each 60 pounds of cleaned wheat so received, and on such basis he shall return to the farmer flour and feed in accordance with the following schedule : Test weight of wheat per bushel. Floor returnable. Hard wheat feed returnable. Soft wheat feed returnable. 58 pounds or heavier. 57 pounds 56 pounds 55 pounds 54 pounds 53 pounds 52 pounds 51 pounds Pmmis. 44 43i 42J 42 41i 40i 39i Pounds. 15 15i 16* 17" 17i 18i 19i 20 Pounis, 14 144 15§ 16 16J 17i Hi 19 Note. — Custom milling or exchange not required : Nothing in this rule requires a miller to operate upon an exchange or custom milling basis. He may, if he so desires, purchase the wheat and sell flour and feed at the pre- scribed margins or less. Size of exchange transactions. — Rules will be issued immediately through the several ofiices of the Federal Food Administrators governing the size of ex- change transactions. CONTRACTING AND SHIPPING. Rule M. S. 21. Uniform contract prescribed. — The wheat miller shall not sell any wheat flour in quantities of 25 barrels or more, or wheat mill feed in quan- tities of 5 tons or more, except by signed contract in the form prescribed below. He shall not contract to sell wheat flour or wheat mill feed in any quan- tities without stipulating that the terms of the uniform Food Administration contract shall prevail. He shall fill out in every such contract covering flour the flour charge items appearing under " Method of calculating maximum deliv- ered fair price," and in every such contract covering feed, the feed charge items appearing thereunder, and shall print under the item " Reasonable price schedule " the figures furnished to the miller by the United States Food Administration for that purpose. Note. — This rule requires the confirmation by written contract of every tele- graphic or other order for flour of 25 barrels or more, or feed of 5 tons or more, even though by reason of shortage in time the flour is shipped before the actual signing of the contract. Until such contract is signed it shall be underatood that the transaction is subject to the terms and conditions of the United States Food Administration contract. [II— A— 20, 21 (a). Sept. 20, 1918. Substitute this for II— A— 20, 21.] Rule M-. S. 20 (as amended Sept. 20, 1918). — Custom and exchange grind- ing. — The wheat miller who receives wheat from farmers' wagons and grinds such wheat on a toll basis, or exchanges such wheat for flour and feed, shall charge not to exceed 35 cents per bushel for each 60 pounds of cleaned wheat so received, and on such basis he shall return to the farmer flour and feed in accordance with the following schedule: COLD-STOEAGE LEGISLATION. 569 Test weight oJ wheat per bushel. Flour re- turnable. Hard wheat feed re- turnable. Soft wheat feed re- i turnable. 58 pounds or heavier. 57 pounds 56 pounds 55 pounds 54 pounds 53 pounds 52 pounds 51 pounds Porniis. 44 43i 42i 42 41i 4(H 39i Povmis. 15 15i 16i 17 17i 18i 19i 20 Pounis, 14 14* 15| 16 16i 18J 19 Millers shall continue custom and exchange grinding. — The wheat miller who prior to July 1, 1918, had customarily ground wheat for farmers on a toll or exchange basis shall continue to operate upon such basis when the farmer offers wheat, grown on his own farm, to the miU for grinding or exchange, and where the former taltes in exchange flour of the character made from his wheat. Note. — Nothing in the above rule prevents a farmer selling some portion of his wheat to the miller at an agreed price and using the purchase price to cancel the charge per bushel made for milling. Size of exchange transactions. — There is no limitation on the quantity of wheat that may be exchanged if the substitute rules are complied with, and if the farmer does not take more than an annual supply for his household or establishment. Flour can only be delivered without substitutes if the farmer signs the certificate approved in his zone, which will be furnished to mills on request by the Federal food administrator of the State where the mill is located. CONTEACTING AND SHIPPING. Rule M. S. 21 (as amended Sept. 20, 1918). — Uniform contract prescribed. — The wheat miller shall not sell any wheat or mixed flour in quantities of more than 50 barrels, or wheat mill feed in quantities of more than 5 tons, except by signed contract in the form prescribed below. He shall not contract to sell wheat flour, mixed flour, or wheat mill feed in any quantities without stipulating that the terms of the uniform Food Administration contract shall prevail. He shall fill out in every such contract covering flour, the flour charge items appearing under " Method of calculating maximum delivered fair price," and in every such contract covering feed, the feed charge items appearing thereunder, and shall print under the item "Reasonable price schedule" the figures furnished to the miller by the United States Food Administration for that purpose. Note. — This rule requires the conflrmation by written contract of every tele- graphic or other order for flour of more than 50 barrels or more or feed of more than 5 tons, even though by reason of shortage in time the flour is shipped before the actual signing of the contract. Until such contract is signed it shall be understood that the transaction is subject to the terms and conditions of the United States Food Administration contract. Orders taken bv salesmen may be taken on regular mill contract forms, which may not show all details as listed in Rule M. S. 21, but in such case the memoranda forms must bear notation as follows : " This order is taken subject to conditions of 'the uniform ,con tract prescribed by the United States Food Administration, and buyer and seller hereby agree to execute such contract m writing on the United States Food Administration contract form, and with all prescribed details shown." Millers who have had their contract and invoice forms printed in accordance with the regulations issued on July 22, 1918, may use such contracts and in- voices until exhausted, conforming in their charges to the minor changes now made. [II_A— 20, 21 (b). Dec. 4, 1918. Substitute this for II— A— 20, 21 (a).] Rule M. S. 20. Custom and exchange grinding. ^CRepealea Dec. 3, 1918.) CONTRACTING AND SHIPPING. Rule M. S. 21 (as amended Sept. 20, 1918). Uniform contract prescribed.— The wheat miller shall not sell any wheat or mixed flour in quantities ot more than 50 barrels, or wheat mill feed in quantities of more than 5 tons, except by 570 COLD-STOBAGE LEGISLATION. signed contract in the form prescribed below. He shall not contract to sell wheat flour, mixed flour, or wheat mill feed in any quantities without stipulat- ing that the terms of the uniform Food Administration contract shall prevail. He shall fill out in every such contract covering flour, the flour charge items appear- ing under " Method of calculating maximum delivered fair price," and in every such contract covering feed, the feed charge items appearing thereunder, and shall print under the item " Reasonable price schedule " the figures furnished to the miller by the United States Food Administration for that purpose. Note. — This rule requires the confirmation by written contract of every telegraphic or other order for flour of more than 50 barrels or more or feed of more than 5 tons, even though by reason of shortage in time the flour is shipped before the actual signing of the contract. Until such contract is signed it shall be understood that the transaction is subject to the terms and conditions of the United States Food Adminisratlon contract. Orders taken by salesmen may be taken on regular mill contract forms, which may not show all details as listed in Eule M. S. 21, but in such case the memoranda forms must bear notation as follows : " This order is taken subject to conditions of the uniform contract prescribed by the United States Food Administration, and buyer and seller hereby agree to execute such con- tract in writing on the United States Food Administration contract form, and with all prescribed details shown." Millers who have had their contract and invoice forms printed in accordance with the regulations Issued on July 22, 1918, may use such contracts and In- voices until exhausted, conforming in their charges to the minor changes now made. [II— A— 21 continued (1).] Contract Foem Pkesceibed by Rule 22. Contract No. of Date. sell (s), and of ■ ties, on the terms and conditions stated below : Time of shipment (delivery) . Destination buy (s), the following commodi- Terms of payment Draft, through Bank of Routing Prices named in this contract are based on (a) effective price schedule, (6) "Glass of sale," (c) freight charge, and (d) package charge, as specified below : Number Size. Kind. Brand. Bulk price f. o. b. mill. Delivered price in Method of calculating maximum delivered fair price. [Flour in 98-pound cotton sacks. 1 Flour per barrel. Feed per ton. (o) Maximum fair price bulk mill as per schedule No. - (M Maximum difEerontial, if anjr, on sale of class — — (c) Freight charge (including freight tax) (d) Cost of sacks (98-pound cotton for flour) Total. OOLD-STOEAGB LEGISLATION. 571 (The schedules, note, and detailed terms and conditions below may be placed on reverse of contract form If desired.) Reasonable price schedule (bulk mill). Schedule No. Flour. Bran. Wheat mixed feeds. Middling!), shorts, red-dog. Soft icheat feeds. — The Food Administration will regard as reasonable the sale of wheat mill feeds containing not less than 90 per cent soft winter wlieat at a price not more than $2 in excess of the maximum fair price schedule for other wheat mill feeds; provided that all shipments or deliveries of Such mill feeds are made in pacliages which are plainly marked " Manufactured from soft winter wheat." Note. — The schedule of prices indicated above is based upon a determined wheat value as indicated by the Government reasonable price guarantee and a maximum permissible miller's charge. Any price in excess of that based on the schedules printed in this contract should be reported to the Federal food administrator for your State. Note. — The following statement should appear on face of contract : " This, contract is made subject to terms and conditions printed on back hereof, which terms and conditions are binding on both parties to the contract." [II— A-.-21 continued (2).] Maximum permissible margins over basis on various classes of sales. Class ol sale. Mill sale to— Flourper Feed per barrel. ton. A., B.. C. D. E. F., Anyone. ....do... Wholesale dealers . do G., H.. I... Anyone other than consumer. . . Individual consumers (except bakers and public eating places). Wholesale feed dealers Betail feed dealers All feed dealers Car load lots, bulk mill, cash or draft attached to B/L. Mixed car loads of teed and flour (con- taining at least 40 per cent of feeds and/or wheat-flour substitutes). From cars or docks, oar lots (not de- livered) where flour has been for- warded "on consignment." From cars or docks, lessthan car load (not delivered) where flour has been forwarded "on consignment." Less car loads (except class C or D sales) (not delivered). Less cai loads None. S0.2S .25 .35 .50 1.20 None. {0.50 Less ear loads and 2,000 potmds or over do Less than 1 ton 1.00 2.C0 3.00 Credit.— Where credit is extended on flour or feed only the actual interest for time of credit extension may be added by the miller on sale of any lot of flour or feed. Sales of feed to consumers must be made at not more than a reasonable margin over basis. The Federal food administrator of the State where the mill or ware- house is located will indicate what margin will be considered reasonable. Only one margin over carload basis permitted.— Not more than one of the margins over carload basis, as indicated above, shall be added by the weight miller on the sale of any lot of flour or feed. 137690—19 37 572 GOLD-STOEAGE LEGISLATION. [11 — ^A-^21 continued (2) (a). Sept. 20, 1918. Substitute this for 11 — A— 21 con- tinued (2).] Maximum pervnissible m,argms over basis on various classes of sales. Class ot sale. Mill sale to— Flour per barrel. d par ton. A . ... Anyone Carload lots, bulk mill, cash or draft attached to B/L. Mixed carloads of wheat flour, mixed flour, wheat flour substitutes, and feeds. From cars or docks, carlots (not deliv- ered) where flour has been for- warded "on consignment." From cars or docks, less than carload (not delivered) where flour has been forwarded "on consignment." Less carloads (except class CorD sales) (not delivered). Less carloads None. $0.25 .25 .35 1.20 None. B do JO.50 C. . D do . E F Anyone other than consumer Individual consumers (except bakers and public eating places). G Less carloads and 2,000 pounds or over 1.00 H Retail feed dealers. 2.00 I :... 3.00 Credit and delivery on flour. — Not more than 25 cents per barrel may be charged in addition to the above margins where flour is delivered to the buyer's door, including all charges for credit if credit is extended. Where credit is ex- tended without delivery only the actual interest may be added. Brokerage. — Brokerage may not be added to the fair price schedule either on flour or feed. Credit and delivery on feed. — Not more than a reasonable cartage or trucking charge may be made where mill feed is delivered to the buyer's door. Where credit is extended only the actual interest may be added. Cartage. — No charge for cartage or trucking on flour or feed to a station or dock at the town where the mill is located may be made. Sales of feed to consumers must be made at not more than a reasonable margin over basis. The Federal Food Administrator of the State where the mill or warehouse is located will indicate what margin will be considered rea- sonable. Only one margin over carload basis permitted. — ^Not more than one of the margins over carload basis, as indicated above, shall be added by the wheat miller on the sale of any lot of flour or feed. [II— A— 21 continued (3).] TERMS AND CONDITIONS. It is understood and agreed. (1) Food Administration regulations, — That the buyer and seller shall con- form to all regulations promulgated by the United States Food Administration. (2) Net weights. — That the wheat flour and wheat mill feed covered by this contract is sold on the basis of net weights when packed, and the determining factor as to weight shall be a moisture content not in excess of Government allowance. (3) Contract not subject to change. — ^That there are no conditions, representa- tions, or warrants, oral or otherwise, and that there shall be no assignment or cancellation of this contract except as herein stated, and that no agent or repre- sentative has authority to modify the printed terms of this contract. (4) Shipments within 30 days. — That the above order shall be shipped or delivered as specified within 30 days from the time that the order is confirmed by the seller, unless a shorter time is expressly provided. (5) Routing. — That the seller shall have the right to route all shipments unless otherwise stated in this contract. (6) Nonextension of time. — That there shall be no extension of the time of shipment or delivery under this contract except t'fj herein specified. COLD-STOEAGE LEGISLATION. 573 (7) Buyer's nonfulfillment of contract. — That if the buyer shall fail to file with the seller within 15 days of the date of confirmation of this contract ship- ping instructions permitting the seller to ship at his option within the remain- ing period of the contract, then the seller may cancel this contract and the buyer shall pay to the seller an entry charge of 25 cents per barrel on flour and 50 cents per ton on feed, plus or minus the market difference, provided that if such shipping instructions are received before the expiration of 30 days from the date of confirmation of this contract, and prior to any cancellation being sent, the seller's right to cancel shall cease. If the buyer shall refuse to accept any shipment or delivery as specified hereunder or fail to perform any of the other terms of this agreement, then the seller may cancel this contract and the buyer shall pay to the seller the entry charge above provided, plus or minus the market difEerence. In addition thereto the seller may pursue such further remedies as the law may provide. (8) Seller's nonfulfillment of contract. — That if the seller shall fail, except for the reasons specified in paragraph 9 of this contract, to make any shipment or delivery as specified, then the buyer may at his option cancel this contract at any time before actual shipment, and the seller shall pay to the buyer the sum of 25 cents per barrel on flour and 50 cents per ton on feed, plus or minus the market difEerence. The buyer may pursue such further remedies as the law may provide. (9) Exceptions to seller's responsibilities. — That if this contract can not be performed by the seller within the time specified, because of Government con- tracts not in contemplation at the time of the contract, or because of fires, strikes, labor difficulties, acts of carriers, or other causes beyond the control of the seller, and if the seller notifies the buyer of such inability, stating the specific cause, as soon as he knows that such inability will prevent performance, and, in any event, on or before the date of shipment or delivery, the seller shall not be responsible for failure to perform. In such event the buyer shall have the option of canceling the contract at the market difference, provided he exer- cises such option within 24 hours from the time when he receives notice of the seller's inability to perform. If such option is not exercised, the contract time of shipment or delivery shall be extended until a reasonable time after the ter- mination of seller's inability is removed, but not to exceed 30 days beyond the original date of shipment or delivery. At the end of such additional 30 days' period the buyer shall again have the right to cancel as above provided, or the contract shall be similarly extended. (10) Buyer's responsibility for final payment. — ^That where buyer specifies the bank through which draft is to be presented and to whom payment is to be made by the buyer, the buyer shall be responsible for final payment to the seller. (11) Package differentials. — That both buyer and seller agree to the ship- ment or delivery of commodities named in this contract on the basis of the package difterentials in effect at date of sale as promulgated by the United States Food Administration. Seller. By . Buyer. By ^ . ril— A— 21 continued (3) (a) . Nov. 16, 1918. Paragraph (4) and (7) have been changed; substitute this for II — A — 21 continued (3).] TERMS AND CONDITIONS. It is understood and agreed — (1) Food Administration regulations.— That the buyer and seller shall con- form to all regulations promulgated by the United States Food Adminis- tration. (2) Net weights.— That the wheat flour and wheat mill feed covered by this contract is sold on the basis of net weights when packed, and the determining factor as to weight shaU be a moisture content not in excess of Government allowance. 574 COLD-STOEAGE LEGISLATION". (3) Contract not subject to change. — That there are no conditions, repre- sentations, or warrants, oral or otherwise, and that there shall be no assign- ment or cancellation of this contract, except as herein stated, and that no agent or representative has authority to modify the printed terms of this contract. (4) Shipments within 60 days. — That the above order shall be shipped or delivered as speciiied within 60 days from the time that the order is con- firmed by the seller, unless a shorter time is expressly provided. (5) Routing. — That the seller shall have the right to route all shipments, unless otherwise stated in this contract. (6) Nonextension of time. — That there shall be no extensions of the time of shipment or delivery under this contract except as herein specified. (7) Buyer's nonfulfillment of contract. — That if the buyer shall fail to file with the seller within 30 days of the date of confirmation of this contract ship- ping instructions permitting the seller to ship at his option within the remain- ing period of the contract, then the seller may cancel this contract and the buyer shall pay to the seller an entry charge of 25 cents per barrel on flour and 50 cents per ton on feed, plus or minus the market difference, provided that if such shipping instructions are received before the expiration of 60 days from the date of confirmation of this contract and prior to any cancella- tion being sent the seller's right to cancel shall cease. If the buyer shall refuse to accept any shipment or delivery as specified hereunder or fail to perform any of the other terms of this agreement, then the seller may cancel this contract and the buyer shall pay to the seller the entry charge above pro- vided plus or minus rhe market difference. In addition thereto the seller may pursue such further remedies as the law may provide. (8) Seller's nonfulfillment of contract. — That if the seller shall fail, except for the reasons specified in paragraph 9 of this contract, to make any ship- ment or delivery as specified, then the buyer may at his option cancel this contract at any time before actual shipment, and the seller shall, pay to the buyer the sum of 25 cents per barrel on flour and 50 cents per ton on feed plus or minus the market difference. The buyer may pursue such further rem- edies as the law may provide. (9) Exceptions to seller's responsibilities. — That if this contract can not be performed by the seller within the time specified because of Government con- tracts not in contemplation at the time of the contract, or because of fires, strikes, labor difficulties, acts of carriers, or other causes beyond the control of the seller, and if the seller notifies the buyer of such inability, stating the specific cause as soon as he knows that such inability will prevent performance, and in any event on or before the date of shipment or delivery, the seller shall not be responsible for failure to perform. In such event the buyer shall have the option of canceling the contract at the market difference, provided he exercises such option within 24 hours from the time when he receives notice of the seller's inability to perform. If such option is not exercised, the con- tract time of shipment or delivery shall be extended until a reasonable time after the termination of seller's inability is removed, but not to exceed 30 days beyond the original date of shipment or delivery. At the end of such additional 30 days' period the buyer shall again have the right to cancel as above provided or the contract shall be similarly extended. (10) Buyer's responsibility for final payment. — That where buyer specifies the bank through which draft is to be presented and to whom payment is to be made by the buyer, the buyer shall be responsible for final payment to the seller. (11) Package differentials. — That both buyer and seller agree to the ship- ment or delivery of commodities named in this contract on the basis of the package differentials in effect at date of sale as promulgated by the United States Food Administration. , Seller. By . , Buyer. By . [II— A— 22.] RtTLE M. S. 22. Uniform invoice prescribed. — The wheat miller shall invoice all wheat fiour and wheat-mill feed, except sales to individual consumers, and except sales of 15 barrels or less of flour and 3 tons or less of mill feed, on an Invoice form on the front or back of which shall be printed all information COLD-STORAGE LEGISLATION. 575 shown in this rule and in the form prescribed, the schedule of "reasonable prices " to be in accordance with schedule which will be furnished any miller. He shall fill out in every such invoice covering flour, the flour charge items appearing under " Method of calculating invoice price," and in every invoice covering feed the feed charge items under such heading. The following items shall appear on front or back of every invoice : Reasonable-price schedule {hullc mill). Sched- ule Xo. Flour. Bran. Wheat Mixed Feeds. Mlddhngs, Shorts, Red-dog. (Here insert figures furnished you by Food Adminis tration.) Soft-wheat feeds. — The Food Administration will regard as reasonable the sale of wheat mill feeds containing not less than 90 per cent soft winter wheat at a price not more than $2 in excess of the maximum fair-price schedule for other wheat-mill feeds : Provided, That all shipments or deliveries of such mill feeds are made In packages which are plainly marked " Manufactured from soft winter wheat." Note. — The schedule of prices indicated above is based upon a determined wheat value as indicated by the Government reasonable-price guaranty and a maximum permissible miller's charge. Any price in excess of that based on the schedules printed in this contract should be reported to the Federal food administrator for your State. [II— A— 22 continued.] Maximum, pertmssible margins over basis on various classes of sales. Class ol ■ale. Mill sale to— Description. Flour per barrel. Feed per ton. Anyone .....do Wholesale dealers do Anyone other than con- sumer. Individual consumers (ex- cept bakers and public eating places). Wholesale teed dealers Retail feed dealers All feed dealers Car load lots, bulk mill, cash or draft attached to B/L. Mixed car loads of feed and flour (containing at least 40 per cent of feeds and/or wheat flour substitute. From cars or docks, carlots (not delivered) where flour has been forwarded "on consignment." From cars or docks, less than carload (not deliv- ered) where flour has been forwarded "on con- signment." Less car loads (except class C or D sales; not de- livered). Less car loads None. S0.2S .25 .35 .50 1.20 Less car loads and 2,000 pounds or over. do Less than 1 ton None. $0.50 1.00 2.00 3.00 Credit.— Where credit is extended on flour or feed only the actual interest for time of credit extension may be added by the miller on sale of any lot of flour or feed. , , Sales of feed to consumers must be made at not more than a reasonable margin over basis. The Federal food administrator of the State where the mill or warehouse is located will indicate what margin will be considered reasonable. Only one margin over carload basis permitted.— Not more than one of the margins over car-load basis, as indicated above, shall be added by the wheat miller on the sale of any lot of flour or feed. 576 COLD-STOKAGB LEGISLATION. Method of calculating maximum delivered fair invoice price. [Flour, basis, 98-pound cotton sacks.] Flour per barrel. Feed per ton. (a) Maximum fair price bulk mill as per schedule No. — . (6) Maximum differential, if any, on sale of class — ( c) Freight charge (including freight tax) (i) Cost of sacks (9S-pound cotton tor flour) Total. [II— A— 22 continued (1) (a). Sept. 20, 1918. Substitute this for II— A— 22 continued.] Maximum permissible margins over hasis on various classes of sales. Glass of sale.' Mill sale to— Description. Flour per barrel. Feed per ton. A Carload lots, bulk mill, cash or draft attached to B/L. Mixed carloads of wheat flour, mixed flour, wheat flour substitutes and feeds. From cars or docks, carlots (not delivered), where flour has been forwarded "on consignment." From cars or docks, less than car load (not deliv- ered), where flour has been forwarded "on con- signment." Less carloads (except class C or D sales); (not delivered). Less carloads. . . . None. SO. 25 .25 .35 .50 1.20 B do to. 30 C D E F do Anyone other than con- sumer. Individual consumers (ex- cept bakers and public eating places). Wholesale feed dealers Retail feed dealers n Less car loads and 2,000 pounds or over ^m H do ,. . . 2.00 T All feed dealers Less than 1 ton . ... 3.00 Sales of feed to consumers must be made at not more than a reasonable margin over basis. The Federal food administrator of the State where the mill or warehouse Is located will indicate what margin will be considered reasonable. Only one margin over carload basis permitted. — Not more than one of the margins over carload basis, as indicated above, shall be added by the wheat miller on the sale of any lot of flour or feed. Credit and delivery on flour. — Not more than 25 cents per barrel may be charged in addition to the above margins where flour is delivered to the buyer's door, including all charges for credit if credit is extended. Where credit is extended without delivery only the actual interest may be added. Brokerage. — Brokerage may not be added to the fair-price schedule either on flour or feed. Credit and delivery charges on feed. — ^Not more than a reasonable cartage or trucking charge may be made where mill feed is delivered to the buyer's door. Where credit is extended only the actual interest may be added. Cartage. — No charge for cartage or trucking on flour or feed to a station or dock at the town where the mill is located may be made. [II— A— 22 continued (1) (a).] Method of calculating maximum fair invoice price. [Flour, basis, 98 pound cotton sacks.] Flour per barrel. Feed per ton. (a) Maximum fair price bulk mill, as per schedule No. — . (i) Maximum differential, if any, on sale of class— h) Freight charge (In'iludmg freight tax) (i) Cost of sacks (98-pound cotton for flout) Total.. COLD-STORAGE LEGISLATION. 577 Millers who have had their contract and invoice forms printed in accordance with the regulations Issued on July 22, 1918, may use such contracts and in- voices until exhausted, conforming in their charges to the minor changes now made. [II— A— 23, 24, 25.] Rtjie M. S. 23. Change in destination or point of shipment. — The wheat miller, in invoicing where change in destination is made at the request of the buyer and such change results in a freight rate other than that specified in the original contract, shall charge to the buyer any additional freight charge over, and credit to the buyer any lesser freight charge under, that specified in the contract. If the wheat miller makes a change in point of shipment from that originally named in the contract such change of point of shipment shall not result in change of delivered cost to buyer. In such case the bulk-mill price and freight charge shown on the invoice must be identical with similar prices and charges shown in the original contract. Rule M. S. 24. Minimum carloads. — ^The wheat miller in making carload shipments of wheat, wheat flour or wheat mill feed, shall load in each ear not less than the minimum amounts prescribed below except with the special writ- ten permission of the United States Food Administration, or such higher mini- mum as may be prescribed by published freight tariff, provided that when a car of lower carrying capacity is used the maximum load which the car wiU carry may be used without permission. Wheat flour and wheat mill feed, 60,000 pounds. Wheat, car capacity. Note. — Double loading, 1. e., loading for more than one customer in one car is permissible. Rule M. S. 25. Bakers must purchase substitutes. — ^The licensee manufactur- ing wheat flour shall not sell, ship, or deliver to any person engaged in the business of baking bread or rolls, any wheat flour unless the buyer purchases at the same time, or the licensee satisfies himself that the buyer has purchased, 1 pound of wheat-flour substitutes for every 3 pounds of wheat flour purchased. Wheat-flour substitutes for the purpose of this rule shall include bran, shorts and middlings, corn flour, corn meal, edible cornstarch, hominy, corn grits, barley flour, rolled oats, oat meal, rice, rice flour, buckwheat flour, potato flour, sweet-potato flour, milo, kaflJr, and feterita flours and meals, soya-bean meal, peanut meal, cassava flour, taro flour, banana flour, and other products of a similar nature which may be used in baking. Graham or whole-wheat flour containing 25 per cent of bran, shorts or mid- dlings, and mixed flour containing 25 per cent of substitute flour may be sold to persons engaged in the business of baking bread or rolls, without substitutes, but if it ocntains less than 25 per cent it must only be sold with an amount of wheat-flour substitutes which, added to the bran, shorts and middlings con- tained in the Graham or whole-wheat flour (everything over 74 per cent extrac- tion), will equal the total amount of substitutes required. [II— A— 23, 24, 25 (a). Aug. 27, 1918. Substitute this for II— A— 23, 24, 25.] Rule M. S. 23. Change in destination or point of shipment. — The wheat miller. In invoicing where change in destination is made at the request of the buyer and such change results in a freight rate other than that specified in the original contract, shall charge to the buyer any additional freight charge over, and credit to the buyer any lesser freight charge under, that specified in the con^ tract. If the wheat miller makes a change in point of shipment from that originally named in the contract such change of point of shipment shall not result in change of delivered cost to buyer. In such case the bulk milk price and freight charge shown on the invoice must be identical with similar prices and charges shown in the original contract. Rule M S. 24. Minimum carloads.— The wheat miller in makmg carload ship- ments of wheat, wheat flour, or wheat mill feed, shall load in each car not less than the minimum amounts prescribed below except with the special written permission of the United States Food Administration, or such higher minimum as may be prescribed by published freight tarifE, provided that when a car of lower carrying capacity is used the maximum load which the car wiU carry may be used without permission. Wheat flour and wheat mill feed, 60,000 pounds. Wheat, car capacity. , . „ „„_ Note.— Double loading, i. e., loading for more than one customer in one car, is permissible. 578 COLD-STORAGE LEGISLATION. Rule M. S. 25. (Repealed on Aug. 27, 1918, effecUve Sept. 1, 1918.) [II— A— 23, 24, 25 (b). Dec. 6, 1918. Substitute this for II— A— 23, 24, 25 (a).] Rule M. S. 23. Change in destination or point of shipment. — The wheat miller, in invoicing where change In destination is made at the request of the buyer and such change results in a freight rate other than that specified In the original contract, shall charge to the buyer any additional freight charge over, and credit to the buyer any lesser freight charge under, that specified in the con- tract. If the wheat miller makes a change in point of shipment from that originally named in the contract such change of point of shipment shall not result in change of delivered cost to buyer. In such case the bulk mill price and freight charge shown on the invoice must be identical with similar prices and charges shown in the original contract. RiTLE M. S. 24. Minimum carloads. — (Repealed Dec. 5, said repeal to become effective Dec. 10, 1918.) Rule M. S. 25. (Repealed on Aug. 27, 1918, effective Sept. 1, 1918). [11- A— 26, 27, 28.] Potatoes may be sold to persons engaged In the business of baking bread or rolls as a wheat flour substitute in the proportion of 4 pounds of potatoes in place of 1 pound of other substitutes. Rule M. S. 26. Retailers and consumers must purchase substitutes. — ^No licensee manufacturing wheat flour shall, without the permission of the United States Food Administrator, ship or deliver such wheat flour to any retailer or consumer unless the buyer purchases at the same time, or the licensee satisfies himself that the buyer has purchased 1 pound of wheat fiour substitutes for every pound of wheat flour purchased, or, in case of whole-wheat or Graham flour containing at least 95 per cent of the entire wheat, 3 pounds of wheat flour substitutes for every 5 pounds of such whole-wheat or Graham flour purchased. Wheat flour substitutes for the purposes of this rule shall Include hominy, corn grits, commeal, corn flour, edible cornstarch, barley flour, rolled oats, oatmeal, rice, rice flour, buckwheat flour, potato flour, sweet potato flour, soya bean flour, mlllo, kaflir and feterita flours and meals. Rule M. S. 27. Substitutes not to be accepted in return. — ^The wheat miller shall not accept any return of wheat flour substitutes without the written permission of the United States Food Administration. Rule M. S. 28. Quantity of wheat flour deliverable. — The wheat miller shall not deliver wheat flour to any Individual consumer residing in towns or cities in quantities in excess of 25 pounds, nor to any Individual consumer in rural or farm communities in quantities in excess of 50 pounds, without the written permission of the United States Food Administrator. Note. — Combination sales. — The attention of millers is called to the fact that general rule 23 has been amended so that compulsory sales of wheat fiour substitutes with wheat flour will not be permitted after September 1, 1918. After that date millers can not refuse to sell flour to retailers on the ground that the retailer will not buy wheat flour substitutes from the miller, provided that the retailer offers certificate to show that he has purchased elsewhere the required amount of substitutes. Compulsory combination sales to wholesalers are already prohibited by general rule 23. Note. — Size of exchange transactions. — Rules will be issued immediately through the several offices of the Federal Food Administrators governing the size of exchange transactions. [II_A— 26, 27, 28 (a). Aug. 27, 1918. Substitute tbls for II— A— 26, 27, 28.] Rule M. S. 26 (as amended Aug. 27,, 1918, effective Sept. 1, 1Q18) .—Consum- ers must purchase substitutes. — The wheat miller shall not, without the written permission of the United States Food Administrator, ship or deliver wheat fiour to any individual consumer. Including public eating places, clubs, and boarding houses, unless such consumer purchases from him at the same time 1 pound of corn mea', corn flour or barley flour for each 4 pounds of wheat flour pur- chased or 2 pounds of pure rye flour for each 3 pounds of wheat flour purchased ; provided that if the purchaser although offered the alternative of at least one of the foregoing combinations, prefers a combination of kaffir flour, milo flour, feterita flour, and meals, rice flour, peanut flour, oat flour, bean flour, potato flour, COLD-STOEAGE LEGISLATION. 579 sweet potato flour, or buckwheat flour, wheat flour may be sold to him with such optional substitute flours In proportion of 4 pounds of wheat flour to 1 pound of such substitutes. This rule shall not apply to the sale of mixed flour, whole wheat or graham flour if such flour conforms to the speciflcations prescribed in Ru'e M. S. 10, and is labeled Victory Mixed Flour or Victory Flour, nor to pancake or self-rising flours which contain less than 80 per cent of wheat flour and have been approved by the United States Food Administration. No corn meal, corn flour, barley flour, rye flour, oat flour, or rice flour shall be sold at a substitute unless it conforms to one of the specifications prescribed by the United States Food Administration. Note.— The efCect of the foregoing rule is to require any miller who ofCers wheat flour for sale at retail to have in stock and ofCer for sale at aU times at least one of the required substitutes (corn meal, corn flour, barley flour, pure rye flour). The optional substitute flours can not be forced on any consumer against his wish, and the miller is not compelled to carry them In stock. Custom and exchange milling. — The foregoing rule appUes to all custom and exchange transactions as well as direct sales, unless modified by announcement of the Federal food administrator of the State where the mill is located, acting with the approval of the zone committee. Specifications for different types of corn meal, corn flour, barley flour, and rye flour will be found in Rule III — ^A — 7. Specifications for rice flour will be found in Rule V — B — 6. RtTLE M. S. 27. Substitutes not to be accepted in return. — The wheat miller shall not accept any return of wheat flour substitutes without the written per- mission of the United States Food Administration. Rule M. S. 28 (as amended Aug. 27, 1918, effective Sept. 1, 1918). Quantity of wheat flour deliverable. — Wheat millers shall not sell or deliver to any dealer or baker any wheat flour or mixed flour without the consent of the United States Food Administration of the licensee knows or has reason to believe that such a sale or delivery will give to such person a supply of any such commodities not soM or contracted to be sold in excess of his reasonable requirements for use or sale by him during the period of 60 days next suc- ceeding such sale or delivery ; provided that this rule shall not prevent sale or delivery of wheat flour to the Federal, State, county, or municipal governments, or any agencies thereof. Rule M. S. 29 Is repealed, effective September 1, 1918. Rule M. S. 29 regulated the amount of flour which could be delivered in custom or exchange transactions. Rule M. S. 30 (effective Sept. 1, 1918). Contracts must provide for delivery in thirty days. — The wheat miller shall not make any contract for the sale or delivery of wheat flour or mixed flour for shipment or delivery more than 30 days after making such contract. til— A— 26 (b). Sept. 20, 1918. This, and II— A— 27, 28, 29, 30, 31(b), should be substituted for II— A— 26, 27, 28 (a).] Rule M. S. 26 (as amended Aug. 27, 1918, effective Sept. 1, 1918). Con- sumers must purcliase substitutes. — The wheat miller shall not, without the written permission of the United States Food Administrator, ship or deliver wheat flour to any individual consumer. Including public eating places, clubs, and boarding houses, unless such consumer purchases from him at the same time, one pound of corn meal, corn flour or barley flour for each 4 pounds of wheat flour purchased or 2 pounds of pure rye flour for each 3 pounds of wheat flour purchased ; provided that If the purchaser altogether offered the alternative of at least one of the foregoing combinations, prefers a combination of kaflir flour, mllo flour, feterita flour, and meals, rice flour, peanut flour, oat flour, bean flour, potato flour, sweet potato flour or buckwheat flour, wheat flour may be sold to him with such optional substitute flours in proportion of 4 pounds of wheat flour to 1 pound of such substitutes. This rule shall not apply to the sale of mixed flour, whole wheat or graham flour if such flour conforms to the speciflcations prescribed In Rule M. S. 10, and is labeled Victory Mixed Flour or Victory Flour, nor to pancake or self-rising flours which contain less than 80 per cent of wheat flour and have been approved by the United States Food Administration. No corn meal, corn flour, barley flour, rye flour, oat flour, or rice flour shall be sold as a substitute unless it conforms to one of the speci- fications prescribed by the United States Food Administration. Note. — The effect of the foregoing rule is to require any miller who offers wheat flour for sale at retail to have in stock and offer for sale at all times. 580 COLD-STORAGE LEGISLATION. at least one of the required substitutes (corn meal, corn flour, barley flour, pure rye flour). The optional substitute flours can not be forced on any consumer against his wish, and the miller is not compelled to carry them in stock. Exchange transactions. — The foregoing rule applies to all custom and ex- change transactions as well as direct sales, except as may be permitted by the Federal Food Administrator upon the furnishing by the farmer of a certiflcate in the form which will be announced by the Federal food administrator of the State where the mill is located and which may be obtained from him on applica- tion by the mill. [II— A— 27, 28, 29, 30, 31 (b).] Rule M. S. 27. Substitutes not to be accepted in return. — The wheat miller shall not accept any return of wheat-flour substitutes without the written per- mission of the United States Food Administraion. Rum M. S. 28 (as amended Aug. 27, 1918, effective Sept. 1, 1918). Quantity of wheat flour deliverable.— Whent millers shall not sell or deliver to any dealer or baker any wheat flour or mixed flour without the consent of the United States Food Administration if the licensee knows or has reason to believe that such a sale or delivery will give to such person a supply of any such commodities not sold or contracted to be sold in excess of his reasonable requirements for use or sale by him during the period of 60 days next succeeding such sale or delivery : Provided; That this rule shall not prevent sale or delivery of wheat flour to the Federal, State, county, or municipal governments or any agencies thereof. Rule M. S. 29 is repealed, effective September 1, 1918. Rule M. S. 29 regu- lated the amount of flour which could be delivered in custom or exchange trans- actions. Rule M. S. 30. Contracts must provide for delivery in 30 days. — The wheat miller shall not make any contract for the sale or delivery of wheat flour, mixed flour, or wheat miU feed for shipment or delivery more than 30 days after the making of such contract : Provided, That this rule shall not prevent sale or de- livery of wheat flour to the Federal, State, county, or municipal governments or any agencies thereof. Rule M. S. 31. Mill feed to be sold for certain purposes only. — The wheat miller shall not sell any wheat mill feed for any other purposes than the feeding of dairy cattle, poultry, young pigs, or young calves, or the preparation of a weekly bran mash for work animals. Before selling any wheat mill feed to any person other than a dealer or mixed- feed manufacturer he shall require a pledge in the following form : " In order to assist the Food Administration In the equitable distribution of wheat mill feeds I hereby undertake on honor not to use wheat mill feeds for any other purpose than the feeding of dairy cattle, poultry, young pigs, or young calves or the preparation of a weekly bran mash for work animals. I will not feed any more wheat mill feeds than is customarily fed to such animals, and I further agree not to have at any time more than a 60-day supply of wheat feeds on hand." [II— A— 26, 27, 28, 29, 30, 31 (c). Nov. 16, 1918. Substitute this for II— A— 26 (b) and II— A— 27, 28, 29, 30, 31 (b).] Rule M. S. 26. Consumers must purchase substitutes.^CRepesdei Nov. 12, 1918.) Rule M. S. 27. Substitutes not to be accepted in return. — ^The wheat miller shall not accept any return of wheat flour substitutes without the written per- mission of the United States Food Administration. Rule M. S. 28 (as amended Nov. 12, 1918). Quantity of wheat flour deliver- able. — Wheat millers shall not sell or deliver to any dealer or baker any wheat flour or mixed flour without the consent of the United States Food Administra- tion if the licensee knows or has reason to believe that such a sale or delivery will give to such person a supply of any such commodities not sold or con- tracted to be sold in excess of his reasonable requirements for use or sale by him during the period of 90 days .next succeeding such sale or delivery ; pro- vided that this rule shall not prevent the sale or delivery of a carload of such flour to any licensee. Rule M. S. 20 (repealed Sept. 1, 1918). Rule M. S. 30 (as amended Nov. 12, 1918). Contracts must provide for de- livery in 60 days. — The wheat miller shall not make any contract for the sale or delivery of wheat flour, mixed flour, or wheat mill feed for shipment or COLD-STOEAGE LEGISLATION. 581 delivery more than 60 days after the making of such contract, provided that this rule shall not apply to contracts with the Federal, State, county or munici- pal governments or with the government of any nation at war with Germany. EuLE M. S. 31. Mill feed to be sold for certain purposes only — The wheat miller shall not sell any wheat mill feed for any other purposes than the feed- ing of dairy cattle, poultry, young pigs, or young calves, or the preparation of a weekly bran mash for work animals. Before selling any wheat mill feed to any person other than a dealer or mixed feed manufacturer he shall require a pledge in the following form : " In order to assist the Food Administration in the equitable distribution of wheat mill feeds, I hereby undertake on honor not to use wheat mill feeds for any other purpose than the feeding of dairy cattle, poultry, young pigs, or young calves, or the preparation of a weekly bran mash for work animals. I will not feed any more wheat mill feeds than is customarily fed to such animals, and I further agree not to have at any time more than a 60-day supply of wheat feeds on hand." [II— A— 26, 27, 28. Sept. 10, 1918. Insert this after II— A— 26, 27, 28 (a).] Note to Rule M. S. 26. — The following notice has been prepared covering the delivery of wheat flour to farmers without substitutes, to be Issued to the mills by the Federal food administrators, if approved by their zone committees. In some zones it may be considered advisable to use only one of the certificates, in which case the one not adopted and the part of the preliminary notice which refers to it will be eliminated. To all millers and farmers in zone .• It has long been the custom for farmers bringing in their own wheat to re- ceive in exchange their annual supply of flour. Nothing in the present Food Administration regulations^ prevents the continuation of thiscustom except that the general wheat conservation rules require wheat flour to be delivered only with one pound of substitutes for each four pounds of wheat flour. Such substitutes can not always be handled by small country mills, and a year's supply of some of the substitutes is likely to spoil. Under these circum- stances it has been considered desirable where farmers were willing to pledge a strict compliance with the program of the Food Admnistration to permit the delivery of flour to them without substitutes in exchange for their own wheat. Furthermore many farmers grow their own substitutes, and it is not desired in this case to force them to buy other substitutes, provided that proper com- pliance with the Food Administration program can be obtained without this requirement. It should be pointed out that farmers who are unwilling to sign these pledges may still obtain wheat flour on the same basis as other individuals by purchase in the market. Millers in zone are therefore authorized upon the signing of either of the following pledges to deliver wheat flour to farmers without substitutes. The amount of wheat flour so delivered must not exceed the amount which can be actually extracted from the farmer's own wheat. PLEDGE TO BE SIGNED BY FARMERS EXCHANGING THEIK OWN WHEAT TO OBTAIN FLOUR WITH- OUT SUBSTITUTES. I hereby certify that the wheat this day delivered by me to , was grown by me on my farm. I pledge my- (Name of miller.) , ,. , x j t i. self to use such flour only in my own household or establishment and not to resell any of it without permission. I further pledge myself in using such flour to conform to the program of the United States Food Administration with regard to substitutes, and to use in the baking of all bread at least one pound of substitutes, to every four pounds of wheat flour, or if rye is used, two pounds of rye to every three pounds of wheat flour. (Name.) (Address.) The wheat flour substitutes are corn flour, barley flour, corn meal, kaffir flour, millo flour, feterita flour and meal, rice flour, peanut flour, oat nour, bean flour, potato flour, sweet potato flour, and buckwheat flour. 582 COLD-STORAGE LEGISLATION. PLEDGE TO BE SiaNED BY FARMERS QEOWINQ THEIR OWN SDESTITHTES. I hereby certify that I have ground or have had ground at the mill for use in my own family and have in my possession pounds of . pounds of vFhich have not been balanced against any purchases of wheat flour. I pledge myself in using such flour to conform to the program of the United States Food Administration with regard to substitutes, and to use in the baking of all bread at least one pound of substitutes to every four pounds of wheat flour, or if rye is used, two pounds of rye to every threfe pounds of wheat flour. (Name.) (Address.) The wheat flour substitutes are corn flour, barley flour, corn meal, kaflir flour, milo flour, feterita flour and meal, rice flour, peanut flour, oat flour, bean flour, potato flour, sweet potato flour, and buckwheat flour. (STATEMENT OP MR. HOOVER TO BE PLACED AT TOP OP BACH PLEDGE.) It is essential to the successful conduct of the war, to the feeding of our Army and the European peoples, and the accumulaion of a surplus of wheat to guard against crop disaster, that the Allied peoples use 20 per cent of the substitute cereals in all wheat bread. The American people will cheerfully undertake the same effort in this matter which the peoples of England, France, and Italy are undertaking. The only method of securing uniformity in this regard is to request all of our people to go without pure wheat bread during the war. The same uniform result can not be complied with by the use of cerals in other forms and we have pledged our- selves to the peoples by whose side we are fighting that this substitution will be made in all of the bread which is baked, both in bakeries and at home. Herbert Hooves. [II— A— 27, 28, 29, 30, 31. Oct. 15, 1918. Insert this after II— A— 27, 28, 29, 30, 31b.l Note to Rule 31. — In administering Rule II-A-31 and Rule XXV-0-5 millers and dealers should not for the present require the pledge on sales to persons in the drought areas of Colorado, New Mexico, Nebraska, Kansas, Oklahoma, and Texas. It is impracticable to extend this exception to small drought areas iu other States. Where the exception is granted at all it must be State wide, and our Information Indicates that above-named States are only ones where drought is suflBciently serious to justify an exception for entire State. Millers and deal- ers should be advised. (Telegram to Federal Food Administration, Oct. 11, 1918.) [II — A — 32. Sept. 20, 1918. This should be inserted after 11 — ^A — 27, 28, 29, 30, 31 (to;.] Rule M. S. 32 (effective Oct. 1, 1918). — Mill feed to he distributed as in 1917. — The wheat miller shall distribute all mill feed manufactured by him equitably between the different States of the United States In such manner that during each calendar quarter on and after October 1, 1918, the amount of wheat mill feed shipped into any State shall not be a less percentage of his total shipments of mill feed during such quarter than was shipped Into such State in the corresponding quarter of the year 1917. Where shipments made In 1917 were subsequently reconslgned to other points, the ultimate point of consignment shall be taken as the basis for the foregoing calculation, so far as the miller from his records or best judgment can judge as to the ultimate point of con- signment. This rule shall not apply to mills located in the drought areas of Colorado, New Mexico, Nebraska, Kansas, Oklahoma, and Texas. [II— A— 32 (a). Dec. 4, 1918. Substitute this for II— A— 32.] Rule M. S. 32 (as amended Dec. 3, 1918). — Mill feed to be distributed as in 1917. — The wheat miller shall distribute all inill feed manufactured by him equitably between the different States of the United States, in such manner that during each calander quarter on and after October 1, 1918, the amount of mill feed delivered In or shipped Into any State shall not be a less percentage of his total deliveries of mill feed into such State in the corresponding quarter of the year 1917. Where shipments made In 1917 were subsequently reconslgned OOIiD-STOEAGE LEGISLATION. 583 to other points, the ultimate point of consignment shall be taken as the basis for the foregoing calculation, so far as the miller from his records or best iudg- ment can judge as to the ultimate point of consignment. This rule shall not apply to mills located in the drought States of Colorado, New Mexico, Nebraska Kansas, Oklahoma, and Texas. Exhibit M. [Ill— IV— Title.] UNITED STATES FOOD ADMINISTRATION. SPECIAL LICENSE REGU- LATIONS. NO. Ill— A. ELEVATORS AND DEALERS HANDLING WHEAT, RYE. CORN, OATS, AND BARLEY; B. CORN, OATS, RYE AND BARLEY MILLERS. NO. IV— A. MALSTERS ; B. NEAR-BEER MANU- FACTURERS, ivi^iiu EfCective July 20, 1918. This pamphlet contains all special rules affecting the above licenses, issued and in effect July 20, 1918, superseding all rules and regulations of series B. The above licensees are also subject to the general license regulations governing all licenses (No. I) contained in a separate pamphlet. [Ill— A— 1, 2, 3.] No. III. A. SPECIAL LICENSE REGULATIONS GOVERNING OPERATORS OF ELEVATORS, WABEHOUSES OR OTHER PLACES FOR THE STORAGE OF Vi'HEAT, RYE, CORN, OATS, AND BARLEY, AND DEALERS IN WHEAT, RYE, CORN, OATS, AND BARLEY. Rules 1 to 3 relate to stoi';ige only. Rules 4 to 8 relate to dealings in wheat only. Rules 9 to 13 relate to dealings in corn, oats, barley, and rye. Rule 1. Storage space subject to Oovernment command. — The storage space in all warehouses, elevators, and other plants used by licensees for the storage of wheat, rye, corn, oats, barley, or any product thereof, shall be at the com- mand of the United States Food Administration whenever the United States Food Administrator or his duly authorized representative shall deem it neces- sary to utilize such space for governmental purposes, and the licensee shall furnish the whole or any part of such storage space to the United States Food Administration in such quantity at such times as the United States Food Ad- ministrator or his duly authorized representative may determine. Rule 2. Storage of wheat limited. — No wheat shall be received for or kept in storage by any licensee other than for the United States Government or some agency thereof for a longer period than 30 days without the consent in writing of the United States Food Administrator or his duly authorized representative. Rule 3. Storage in seaboard elevators limited to 30 days. — No licensee op- erating any elevator, warehouse, or other storage place at any seaboard shipping point shall receive for or keep in storage any corn, oats, barley, rye, or their derivative products other than for the United States Government or any of its agencies for a longer period than 30 days without the consent in writing of the United States Food Administrator or his duly authorized representative. This rule shall not apply to storage at interior points. [Ill— A— 1, 2, 3 (a). Sept. 1, 1918. Substitute this for III— A— 1, 2, 3.] No. III. A. SPECIAL LICENSE REGULATIONS GOVERNING OPERATORS OF ELEVATORS, WARE- HOUSES, OK OTHER PLACES FOR THE STORAGE OF WHEAT, EYE, CORN, OATS, AND BARLEY, AND DEALERS IN WHEAT, EYE, CORN, OTS, AND BAELEY. Rules 1 to 3 relate to storage only. Rules 4 to 8 relate to dealings in wheat only. Rules 9 to 13 relate to dealings In corn, oats, barley, and rye. Rule 1. Storage space subject to Government command.— The storage space in all warehouses, elevators, and other plants used by licensees for the storage 584 COIiD-STOBAGE LEGISLATION. of wheat, rye, corn, oats, barley, or any product thei-eof, shall be at the com- mand of the United States Food Administration whenever the United States Food Administrator or his duly authorized representative shall deem It neces- sary to utilize such space for governmental purposes, and the licensee shall furnish the whole or any part of such storage space to the United States Food Administration in such quantity and at such, times as the United States Food Administrator or his duly authorized representative may determine. Rule 2 (as amended Sept. 1, 1918). Storage of grain limited. — ^No wheat, rye, corn, oats, or barley shall be received for or kept In storage by any licensee, other than for the United States Government or some agency thereof, for a longer period than 60 days without the consent in writing of the United States Food Administrator or his duly authorized representative. Rule 3. Storage in seaboard elevators limited to 30 days. — ^No licensee op- erating any elevator, warehouse, or other storage place at any seaboard ship- ping point shall receive for or keep in storage any corn, oats, barley, rye, or their derivative products other than for the United States Government or any of its agencies for a longer period than 30 days without the consent in writing of the United States Food Administrator or his duly authorized representative. This rule shall not apply to storage at Interior points. [in— A— 1, 2, 3 (b). Dec. 13, 1918. Substitute this for III— A— 1, 2, 3 (a).] No. III. A. SPECIAL LICENSE BEGULATIONS GOVERNING OPERATOKS OF ELEVATORS, WARE- HOUSES, OR OTHER PLACES FOB THE STORAGE OF WHEAT, EYE, CORN, OATS, AND BARLEY, AND DEALERS IN WHEAT, RYE CORN, OATS AND BABLEY. Rules 1 to 3 relate to storage only. Rules 4 to 8 relate to dealings in wheat only. Rules 9 to 13 relate to dealings in corn, oats, barley, and rye. Rule 1. Storage space subject to Oovemment command. — The storage space in all warehouses, elevators, and other plants used by licensees for the storage of wheat, rye, corn, oats, barley, or any product thereof, shall be at the com- mand of the United States Food Administration whenever the United States Food Administrator or his duly authorized representative shall deem It neces- sary to utilize such space for governmental purposes, and the licensee shall furnish the whole or any part of such storage space to the United States Food Administration in such quantity and at such times as the United States Food Administrator or his duly authorized representative may determine. Rule 2. Storage of grain limited. — (Repealed Dee. 12, said repeal to become effective Dec. 17, 1918.) Rule 3. Storage in seaboard elevators limited to 30 days. — ^No licensee oper- ating any elevator, warehouse, or other storage place at any seaboard shipping point shall receive for or keep in storage any corn, oats, barley, rye, or their derivative products other than for the United States Government or any of Its agencies for a longer period than 30 days without the consent In writing of the United States Food Administrator or his duly authorized representative. This rule shall not apply to storage at interior points. [Ill— A — 4, 5, 6, 7.] rules for DEALING IN WHEAT. Rule 4. Wheat not to be sold for feed; exceptions. — The licensee shall not, without the consent of the United States Food Administrator, sell wheat (except mill feed) for feed or for manufacturing or mixing feed: Provided, That wheat unfit for human consumption may be sold to poultry and pigeon feed manufacturers in reasonable amounts, to allow a 10 per cent mixture thereof in poultry or pigeon feed, and wheat unfit for human consumption and unfit for poultry or pigeon feed may be sold for other feeding purposes. Rule 5. Wheat under control limited to 30 days' supply. — The licensee deal- ing in wheat shall not, without the written consent of the United States Food Administrator, or his duly authorized representative, keep on hand or have in possession or under control by contract or other arrangement at any time any wheat or rye In a quantity in excess of the reasonable requirements of Ms business for use or sale by him during a period of 30 da,ys. COLD-STORAGE LEGISLATION. 585 Rule 6. Wheat sold shall not give 'buyer more than SO days' supply. — The licensee dealing in wheat shall not sell or deliver to any person any wheat If the licensee knows or has reason to believe that such a sale or delivery vsrill give to such person a supply of wheat or rye in excess of his reasonable requirements for use or sale by him during the period of 30 days next suc- ceeding such sale or delivery : Provided, That this rule shall not prevent the sale or delivery of wheat to any person for the United States or for the Government of any nation at war with Germany. Rule 7. Contracts must provide for shipment within SO days. — The licensee shall not make or have outstanding at any time any contract for the sale of wheat for shipment or delivery more than 30 days after the making of such contract, except for seeding purposes : Provided, That this rule shall not apply to contracts with the Government of any nation at war with Germany: And provided further, That an importer may sell wheat to be imported for delivery on arrival. [Ill — A — 4, 5, 6, 7 (a). Sept. 1, 1918. Substitute this for III — A — 4, 5, 6, 7.] KULES FOE DEALING IN WHEAT. Rule 4. Wheat not to &e sold for feed; exceptions. — The licensee shall not, without the consent of the United States Food Administrator, sell wheat (except mill feed) for feed or for manufacturing or mixing feed; provided, that wheat unfit for human consumption may be sold to poultry and pigeon feed manufac- turers In reasonable amounts to allow a 10 per cent mixture thereof in poultry or pigeon feed, and wheat unfit for human consumption and unfit for poultry or pigeon feed may be sold for other feeding purposes. Rule 5 (as amended Sept. 1, 1918). Wheat under control limited to 60 days' supply. — ^The licensee dealing in wheat shall not, without the written consent of the United States Food Administrator, or his duly authorized representative, keep on hand or have In possession or under control by contract or other arrangement at any time any wheat in a quantity in excess of the reasonable requirements of his business for use or sale by him during a period of 60 days. Rule 6 (as amended Sept. 1, 1918). Wheat sold shall not give buyer more than 60 days' supply. — The licensee dealing in wheat shall not sell or deliver to any person any wheat if the licensee knows or has reason to believe that such a sale or delivery will give to such person a supply of wheat in excess of his reasonable requirements for use or sale by him during the period of 60 days next succeeding such sale or delivery : Provided, That this rule shall not prevent the sale or delivery of wheat to any person for the United States or for the Government of any nation at war with Germany. Rule 7. Contracts must provide for shipment within SO days. — ^The licensee shall not make or have outstanding at any time any contract for the sale of wheat for shipment or delivery more than 30 days after the making of such contract, except for seeding purposes, provided that this rule shall not apply to contracts with the Government of any nation at war with Germany : And pro- vided further, That an importer may sell wheat to be imported for delivery on arrival. ;' [III— A-^, 5, 6, 7 (b). Nov. 14, 1918. Substitute this for III— A— 4, 5, 6, 7 (a).] KULES FOE DEALING IN WHEAT. Rule 4. Wheat not to be sold for feed; esrceptions.— (Repealed Nov. 2, effective Ru^i 5^ Us amended Sept. 1, 1918). Wheat under control Umited to 60J.ays' mwZj/.— The licensee dealing in wheat shall not, without the written consent fe'the United States Food Administrator or his duly authorized representative, keep on hand or have in possession or under control by contract or other arransement at anv time any wheat in a quantity in excess of the reasonable requirements of his business for use or sale by him during a period of ^■Rvll:^ (as amended Sept. 1, 1918). Wheat sold shall not ^/^e,?«f ^, 'f?"^^ tUn 60 days' supply.— The licensee dealing in wheat shall not sell or deliver to any person any wheat if the licensee knows or has reason to Jjflieve th^t suoh sale or delivery will give to such person a supp y <>* ^1^^^* ^"^J^'ft'^n^^f^^^ his reasonable requirements for use or sale by him during the period of 60 days 586 COLD-STORAGE LEGISLATION, next succeeding such sale or delivery: Provided, That this rule shall not pre- vent the sale or delivery of wheat to any person for the United States or for the Government of any nation at war with Germany. Rule 7. Contracts must provide for shipment within SO days. — The licensee shall not make or have outstanding at any time any contract for the sale of wheat for shipment or delivery more than 30 days after the making of such contract, except for seeding purposes : Provided, That this rule shall not apply to contracts with the Government of any nation at war with Germany: And pro- vided fur their, 'ThsX an importer may sell wheat to be imported for delivery on arrival. [Ill— A — i, 5, 6, 7 (c). Dec. 4, 1918. Substitute this for III— A — i, 5, 6, 7 (b).] KUIES rOK DEALING IN WHEAT. Rule 4. Wheat not to he sold for feed, exceptions. — (Repealed Nov. 2, effec- tive Nov. 4, 1918.) Rule 5 (as amended Nov. 12, 1918). Wheat under control limited to 90 days' supply. — The licensee dealing in wheat shall not, without the written consent of the United States Food Administrator, or his duly authorized representative, keep on hand or have in possession or under control hy contract or other ar- rangement at any time any wheat in a Quantity in excess of the reasonable requirements of his business for use or sale by him during a period of 90 days. Rule 6 (as amended Nov. 12, 1918). Wheat sold shall not give buyer more than 90 days' supply. — The licensee dealing in wheat shall not sell or deliver to any person any wheat if the licensee knows or has reason to believe that such a sale or delivery will give to such person a supply of wheat in excess of his reasonable requirements for use or sale by him during the period of 90 days next succeeding such sale or delivery : Provided, That this rule shall not pre- vent the sale or delivery of wheat to any person for the United States or for the Government of any nation at war with Germany. Rule 7 (as amended Nov. 12, 1918). Contracts must provide for shipment within 60 days, — The licensee shall not make or have outstanding at any time any contract for the sale of wheat for shipment or delivery more than 60 days after the making of such contract, except for seeding purposes, provided that this rule shall not apply to contracts with the Government of any nation at war with Germany: And provided further. That an importer may sell wheat to be imported for delivery on arrival. [Ill— A— 4, 5, 6, 7 (a) note. Sept. 20, 1918. This should follow III— A — i, 5, 6, 7 (a).] Note. — Net profits for grain dealers. — ^The United States Food Administration will consider any annual net profit taken by any grain dealer, Including country elevators dealing in grain, in excess of the following schedule to be prima facie evidence of a violation of general rule 5, which prohibits the taking of unreason- able profits: Three per cent of the first $300,000 of gross sales per annum. Two per cent on all gross sales in excess of $300,000 per annum. No maximum margin on individual sales is prescribed because of the specu- lative character of the product dealt with and the fluctuating price of the product. As pointed out, the general average on all sales must not exceed 3 per cent or 2 pef cent, as the case may be, over the cost of the grain and ex- penses of operation, nor must this limitation modify or abrogate the general principle contained in Food Administration regulations that a licensee shall not earn more than a reasonable net profit. [Ill— A— 8, 9, 10.] Rule 8. Maximum carload shipments. — 'AH carload shipments of wheat shall be made in cars loaded to their capacity unless a different minimum is au- thorized by special written permission of the United States Food Administrator or his duly authorized agent. EULES rOB DEALING IN COKN, OATS, EYE, AND BAELEX. Rule 9. Orain to he sold at reasonable advance over cost, hedging considr ered. — The licensee shall sell corn, oats, rye, and barley at not more than a reasonable advance over the average cost of the stock of such commodity on COLD-STORAGE LEGISLATION. 587 hand or under the control of the licensee not at that time contracted to be sold. In arriving at the cost thereof he shall take into consideration the gain or loss from any hedging transaction on any recognized grain exchange. Rttle 10. Amount of unsold grain under control limited to 60 days' supply. — The licensee shal^ not, without the written permission of United States Food Administrator, keep on hand or have in possession or under control by contract or other arrangement at any time corn, oats, rye, or barley in a quantity in excess of the reasonable requirements of his business during the next 60 days. In calculating a 60 days' supply for the purpose of this and the following rule the licensee must Include all grain bought or contracted to be bought on a grain exchange : Provided, That this rule shall not prohibit the storing of corn, oats, rye, or barley for seeding purposes if notice of the amount and location of such seed is sent to the United States Food Administrator within 60 days from the date when stored. Note. — Grain against which the owner holds sales hedges Is considered to be sold and need not be included in the 60 days' supply. [Ill — ^A — 8, 9, 10 (a). Dec. 6, 1918. Substitute this for III — A — 8, 9, 10.] Rule 8. MusBimum carload shipments. — (Repealed Dec. 5, said repeal to be- come effective Dec. 10, 1918.) EULES FOB DEALING IN COKN, OATS, KTE, AND BARLEY. Rule 9. Grain to he sold at reasonable advance over cost, hedging consid- ered.- — The licensee shall sell corn, oats, rye, and barley at not more than a reasonable advance over the average cost of the stock of such commodity on hand under the control of the licensee not at that time contracted to be sold. In arriving at the cost thereof he shall take into consideration the gain or loss from any hedging transaction on any recognized grain exchange. Rule 10. Amount of unsold grain under control limited to 60 days' supply. — The licensee shall not, without the written permission of United States Food Administratori keep on hand or have in; possession or under control by contract or other arrangement afc any time corn, oats, rye, or barley in a quantity in excess of the easonable requirements of his business during the next 60 days. , In calculating a 60 days" supply for the purpose of this, and the follo>ving rule the' licensee must Include all grain bought or contracted to be bought on a grain exchange : Provided, That this rule shall not prohibit the storing of corn, oats, rye, or barley for seeding purposes if! notice of the amount and location of such seed Is sent to theUnited States, Food Administrator within 60 days from the date when stored. NoTEi — Grain against which the owner holds sales hedges is considered to be sold and need notbe included in the 60 days' supply.- [Ill— A— 8, 9, 10 (b). Dec. 13, 1918. Substitute this, for III— A— 8, 9, 10 (a).] Rule 8. Maximum carload shipments. — (Repealed Dec. 5, said repeal to be- come eifective Dec. 10, 1918.) KULES FOB DEALING IN CORN, OATS, ETE,, AND BARLEY. Rule 9. Grain to. 6e sold at reasomible advance over cost, hedging consid- ered. — The licensee shall sell corn, oats, rye, and barley at not more than a reasonable advance over the average cost of the stock of such commodity on hand or under the control of the licensee not at thfit time contracted to be sold. In arriving at the cost thereof he shall take into consideration the gain or loss from any hedging transaction on any recognized grain exchange. Rule 10. Amount of unsold, grain, under control, limited to 60 days' supply. — (Repealed Dec. 12, said repeal to become effective Dec, 17, 1918.) [Ill— A— 11, 12, 13.] Rule 11. Grain sold shall not give huyer more than 60 days' supply. — The licensee shall not sell or deliver to any person any corn, oats, rye, or barley if the licensee knows or has reason to believe that such a sale or delivery will give to such person a supply of such grain not sold or contracted to be sold in excess of his reasonable requirements for use or sale by him during the period 137690—19 38 588 OOLD-STOKAGK LEGISLATION. of 60 days next succeeding such sale or delivery : Provided, That this rule shall not apply to the sale or delivery of grain to any person for the United States Government or for the Government of any nation at war with Germany. Rule 12. Contracts for corn, oats, rye, and barley must provide for shipment in 60 days. — ^The licensee shall not make or have outstanding any contract for the sale of corn, oats, rye, or barley for shipment 'or delivery more than 60 days after the making of such contract, except for seeding purposes : Provided, how- ever, That this rule shall not apply to contracts with the United States or with the Government of any nation at war with Germany: Provided further, That an importer may sell goods to be imported for delivery on arrival. This rule shall not affect the validity of any contract :for the sale of corn, oats, rye, or barley entered into prior to November 15, 1917, unless the cancellation of any such contract is hereafter ordered by the United States Food Adminstrator. Note. — This rule does not apply to dealings on any exchange, board of trade or similar institution made by public trading on the floor thereof under the supervision of its management, in such ring,' pit^or other similar place as may be especially reserved by the exchange, board of trade or similar institution for public trading. Rule 13. Minimum for carload shipments. — AU carload shipments of corn, oats, rye, and barley shall be made in car lots loaded to car capacity, unless a different minimum is authorized by special written permission of the United States Food Administrator. [Ill— A— 11, 12, 13 (a). Dec. 6, 1918. Substitute this for III — A— 11, 12, 13.] Rule 11. Grain sold shall not give buyer more than 60 days' supply. — ^The licensee shall not sell or deliver to any person any corn, oats, rye, -or- barley if the licensee knows or has reason to believe that such a sale or delivery will give to such person a supply of such grain not sold or contracted to be sold in excess of his reasonable requirements for use or sale by him during the period of 60 days next succeeding such sale or delivery: Provided, That this rule 'Shall not apply to the sale or delivery of grain to any person for the United States Gov- ernment or for the Government of any nation at war with Germany. Rule 12. Contracts for com, oats, rye, and barley must provide for shipment in 60 days. — ^The licensee shall not make or have outstanding any contract for the sale of corn, oats, rye, or barley for shipment or delivery more than 60 days after the making of such contract, except for seeding purposes : Provided, howi ever, That this rule shall not apply to contracts with the United States or witn the Government of any nation at war with Germany : Provided further. That' an importer may sell goods to be imported for delivery on arrival. This rule shall not affect the validity of any contract for the sale of corn, oats, rye, or barley entered into prior to November 15, 1917, unless the cancellation of any such contract is hereafter ordered by the United States Food Administrator. Note. — ^This rule does not apply to dealings on any exchange, board of trade, or similar institution made by public trading on the floor thereof under the supervision of its management, in such ring, pit, or other similar place as may be especially reserved by the exchange, board of trade or similar institution for public trading. Rule 13. Mi/nimum for carload shipments. — (Repealed Dec. 5, said repeal to become" effective Dec. 10, 1918.) rill_A— 11, 12, 13, 14, 15. Dec 13, 1918. Substitute this for III— A— 11, 12, 13 (a), ana III— A— 14, 15.] Rule 11. (3raiM sold shall not give buyer more than 60 days' supply. — (Re- pealed Dec. 12, said repeal to become effective Dec. 17, 1918.) Rule 12. Contracts for corn, oats, rye, and barley must provide for shipment in 60 daj/s.^( Repealed Dec. 12, said repeal to become effective Dec. 17, 1918.) Rule 13. Minimum for carload shipments. — (Repealed Dec. 5, said repeal to become effective Dec. 10, 1918.) Rule 14. Sales for brewing prohibited. — (Repealed Dec. 12, said repeal to be- some effective Dec. 17, 1918.) RtJLE 15. Sales to distillers limited. — The licensee shall not sell or deliver any corn, oats, rye, or barley to any person for the purpose of distilling spirits or alcohol, excepting corn of a grade lower than Federal grade No. 6. COLD-STORAGE LEGISLATION. 589 [III— A— 14, 15. Sept. 20, 1918. This should follow III— A — 11, 12, 13.] BuLE 14. Sales for brewing prohibited.— On and after October 1, 1918 the licensee shall deliver no corn, oats, rye, or barley to any person for the purpose of manufacturing beer, near-beer, or other similar cereal beverages. Rule 15. Sales to distillers limited — The licensee shall not sell or deliver any corn, oats, rye, or barley to any person for the purpose of distilling spirits or alcohol, excepting corn of a grade lower than Federal grade No. 6. [III_B— 1.1 CORN, OATS, RYE, AND BARLEY MILLERS. B. SPECIAL LICENSE EEGTJLATIONS GOVERNING LICENSEES ENGAGED IN THE BUSINESS OF MANUFACTURING CORN, OATS, BYE, OR BARLEY PRODUCTS. The manufacture and distribution of the following Corn, oats, rye, and barley products are licensed : Barley flour, rye flour, oatmeal, rolled oats, hominy, corn grits, corn meal, corn flour, starch from corn, oat flour, cerealine flakes, corn oil, corn sirup, glucose, corn sugar, products and by-products of shelled corn, ear corn, oats, rye, and barley for use as feed, including grain screenings. Note. — ^Any corn, oats, or barley millers who resell corn, oats, or barley with- out milling them must have a license to deal in these commodities and are subject to rules governing dealers therein. Any corn, oats, or barley miller buying any products of corn, oats, or barley and reselling them must have a license to deal therein, and are subject to the rules governing jobbers in such commodities. Rule 1. Amount of corn, oats, rye, barley, and their products under control restricted to 60 days' supply. — The licensee shall not, without the. written consent of the United States Food Administrator or his duly authorized representative, keep on hand or have in possession or under control by contract or other arrangfe- ment at any time any corn and corn products, oats and oat products, rye and rye products, or barley and barley products in a quantity In excess of the reasonable requlremenl.s of his business during the next 60 days : Provided, That this rule shall not prevent any licensee from having a carload of any commodity in transit In addition to a supply thereof sufiicient to last until the arrival of said carload. [Ill— B— 1, 2, 3. Dec. 13, 1918. Substitute this for III— B— 1 and III— B— 2, 3.] CORN, OATS, BYE, AND BARLEY MILLERS. B. SPECIAL LICENSE REGULATIONS GOVERNING LICENSEES ENGAGED IN THE BUSINESS OF MANUFACTURING CORN, OATS, EYE, OR BARLEY PRODUCTS. The manufacture and distribution of the following corn, oats, rye, and barley products are licensed : Barley flour, rye flour, oatmeal, rolled oats, hominy, corn grits, corn liieal, corn flour, starch from corn, oat flour, cerealine flakes, corn oil, corn sirup, glucose, corn sugar, products and by-products of shelled corn, ear corn, oats, rye, and barley for use as feed, including grain screenings. . Note. — Any corn, oats, or barley millers who resell corn, oats, or barley without milling them must have a license to deal in these commodities and are subject to rues governing dealers therein. Any corn, oats, or barley miller buying any products of corn, oats, or barley and reselling them must have a license to deal therein, and are subject to the rules governing jobbers in such commodities. Rule 1. Amount of corn, oats, rye, barley, and their products under control restricted to 60 days' supply. — (Repealed Dec. 12, said repeal to become effective Dec. 17, 1918.) Rule 2. Sale of com, oats, rye, or barley products shall not give buyer more than 60 days' supply. — (Repealed Dec. 12, said repeal to become effective Dec. 17, 1918.) Rule 3. Contracts must provide for shipment within 60 days. — (Repealed Dec. 12, said repeal to become effective Dec. 17, 1918. ) [III— B— 2, 3.] Rule 2. Sale of com, oats, rye, or barley products shall not gi/ve buyer more than 60 days' supply.— Tl^^ licensee shall not sell or deliver to any person any rye flour, barey ilour, oatmeal, rolled oats, oat flour, corn grits, cornmeal, 590 COLD-STOKAGE LEGISLATION. hominy, corn flour, starch from corn, cereallne flakes, corn oil, corn sirup, glu- cose, or corn sugar, without the consent of the United States Food Adminis- trator if the licensee knows or has reason to believe that such a sale or delivery will give to' such person a supply of any such commodities, not sold or con- tracted to be sold, in excess of his reasonable requirements for use or sale by him during the period of 60 days next succeeding 'such sale or delivery : Pro- vided, That this rule shall not affect the sale or delivery of any such commodi- ties to any person for the Federal, State, county,, or municipal governments or for the Government of any nation at war with Germany, or the sale or delivery of a carload of any such commodity to any licensee having not more than suffi- cient on hand to last until the arrival of said carload. Rule 3. Contracts must provide for shipment within 60 days. — The licensee shall not make or have outstanding at any time any contract for the purchase of corn, oats, rye, or barley, or the sale of any licensed corn, oats, rye, or barley products or by-products for shipment or delivery more than 60 days after the making of such contract: Provided, however. That this rule shall not apply to contracts with the Federal, State, county, or municipal governments or to the Government of any nation at war with Germany. [Ill— B— 4.] Rule 4. Unreasonable profits prohibited. — The licensee shall sell edible prod- ucts of corn, oats, rye, and barley at not more than a reasonable margin over the average cost to him of the corn, oats, rye, or barley from which such edible products are manufactured. In estimating such average cost he shall include all grain in his possession or under his control by contract or other arrange- ment, but he shall not include any grain which he has contracted to sell or the products of which he has contracted to sell. Provided, That in determining the cost of such grain he shall — (1) Add to the average purchase price the loss and deduct from the average- purchase price the gain resulting from any hedging transactions on an ef^tab- lished grain exchange in which the transaction is finally closed. The loss or gain on such transaction shall be calculated on the average price of all outstanding hedging sales or purchases. (2) He shall deduct from the average purchase price the proceeds from the sale of feed or offal created in .the milling operation, or, if not sold, he shall deduct its current market value. Any average once calculated shall be taken as the basis for such averaged grain in all subsequent calculations. He shall keep records in such manner as to show how all averages and selling prices have been determined. [Ill— B— 4, note.] Note. — The Food Administration has determined that any margins in excess of those listed below are unreasonable and excessive under the foregoing rule. These margins may, therefore, be regarded as maximum margins, but they do not in any way abrogate or modify the general rule that profits must not be excessive. The margins stated are, therefore, not necessarily to be considered fair and normal. Old-fashioned (jr water-ground meal, .50 cents per hundred pounds bulk product. Standard and bolted meal, 50 cents per hundred pounds bulk product. Pearl meal, 60 cents per hundred pounds bulk product. Pearl or table hominy, 80 cents per hundred pounds bulk product. Grits, 80 cents per hundred pounds bulk product. Cream meal, 80 cents per hundred pounds bulk product. Cerealine flakes, $1.20 per hundred pounds bulk product. Corn flour, $1 per hundred pounds bulk product. Other corn meal, 60 cents per hundred pounds bulk product. Barley flour, 95 cents per hundred pounds bulk product. Rye flour, 90 cents per hundred pounds bulk product. Rolled oats, oatmeal, oat flour, 90 cents per hundred pounds bulk product. The above differentials apply to prices bulk mill or basing point when packed in barrels or 100-pound cotton or jute bags. See rule 7 for differentials on other packages. To arrive at the Selling price bulk mill or basing point, compute the cost of the number of pounds of grain required to produce 100 pounds of flnished product COLD-STOEAGE LEGISLATION. 591 and deduct therefrom tiie value of the feed or offal produced from this number of pounds of grain. The price of the finished product should not exceed this figure by more than the above margin. Differentials on less than car-lot sales. — The following additional margins over those named above will be considered reasonable by the Food Administration on less than car-lot sales to others than wholesale dealers. Less than car lot to bakers, hotels, retailers, and manufacturers other than flour mixers, not more than 10 per cent of car-lot price in sacks. Less than car lots to individual consumers, not more than 20 per cent of car- lot price in sacks. (If this margin is added the 10 per cent margin must not be added. ) [III— B — 4, note (a). Sept. 1, 1918. Substitute this for III— B-t-4, note.] Note. — ^The Food Administration has determined that any margins in excess of those listed below are unreasonable and excessive under the foregoing rule. These margins may, therefore, be regarded as maximum margins, but they do not in any way abrogate or modify the' general rule that profits must not be excessive. The margins stated are, therefore, not necessarily to be considered fair and normal. Old-fashioned or water-ground meal, 50 cents per hundred pounds bulk product. Standard and bolted meal, 50 cents per hundred pounds bulk product. Pearl meal, 60 cents per hundred pounds bulk product. Pearl or table hominy, 80 cents per hundred pounds bulk product. Orits, 80 cents per hundred pounds bulk product. Cream meal, 80 cents per hundred pounds bulk product. Corn flakes, $1.20 per hundred pounds bulk product. Corn flour, $1 per hundred pounds bulk product. Other corn meal, 60 cents per hundred pounds bulk product. Barley flour, 95 cents per hundred pounds bulk product. Rye flour, 90 cents per hundred pounds bulk product. Boiled oats, oatmeal, oat flour, 90 cents per hundred pounds bulk product. The above differentials apply to prices bulk mill or basing point when packed in barrels or 100-pound cotton or jute bags. See rule 7 for differentials on other packages. To arrive at the selling price bulk mill or basing point, compute the cost of tile number of pounds of grain required to produce 100 pounds of finished product and deduct therefrom the value of the feed or offal produced from this number of pounds of grain. The price of the finished product should not exceed this figure by more than the above margin. Differentials on less than carlot soie.s.— The following additional margms over those named above will be considered reasonable by the Food Administration on less than carlot sales : , t „„!„„ Less than car lots to wholesalers, not more than 5 per cent of carlot price Less than car lots to bakers, hotels, retailers, and manufacturers other than flour mixers, not more than 10 per cent of carlot price in sacks. ^ . „, Less than carlots to individual consumers, not more than 20 per cent ot car- lot price in sacks. (If this margin is added, the 10 per cent margin must not '%eSI«a? proyt««.-The Food Administration will consider a net earning of more than 6 per cent upon the gross sales of any edible products of corn, oLrrve OTbarley as shovvn at the end of any semiannual period, to be prima facte evidence of ^'violation of the rule which prohibits the taking of unreason- able nrofitrc General rule 5.) This limitation does not modify or abrogate ttegSfprncipte contained in the Food Administration regulations hat a licensee shoSd not earn more than a reasonable net profit on his capital in- vested nor does U change in any way the maximum margins which have been prescribed on individual sales. [in_B— 4, note (b). Nov. 7, 1918. Substitute this for III-B— 4, note (a).] Note— The Food Administration has determined that any margins in excess of^h^e l^ted below a^ unreasonable and excessive under the foregoing rule These marSs may, therefore, be regarded as ---!-"- '"S^' ^^^^^^^^ ^ Tint in ^nv wnv ahroeate or modify the general rule that pronts must uut ue excessive'^ The margins stated aref therefore, not necessarily to be considered fair and normal. 592 COLD-STOBAGE LEGISLATION. Old-fashioned or water-ground meal, 50 cents per hundred pounds bulk product. Standard and bolted meal, 50 cents per hundred pounds bulk product Pearl meal, 60 cents per hundred pounds bulk product. Pearl or table hominy, 80 cents per hundred pounds bulk product. Grits, 80 cents per hundred pounds bulk product. Cream meal, 80 cents per hundred pounds bulk product. Corn flakes, $1.20 per hundred pounds bulk product. Corn flour, $1 per hundred pounds bulk product. Other corn meal, 60 cents, per hundred pounds bulk product. » Barley flour, 95 cents per hundred pounds bulk product. Rye flour, 90 cents per hundred pounds bulk product. Rolled oats, oatmeal, oat flour, 90 cents per hundred pounds bulk product. The above differentials apply to prices bulk mill or basing point when packed in barrels or 100-pound cotton or jute bags. See rule 7 for differentials on other packages. To arrive at the selling price bulk mill or basing point, compute the cost of the number of pounds of grain required to produce 100 pounds of finished product and deduct therefrom the value of the feed or offal produced from this number of pounds of grain. The price of the finished product shoiUd not exceed this figure by more than the above margin. Differentials on less than car-lot sales. — ^The following additional margins over those named above will be considered reasonable by the Food Administra- tion on less than car-lot sales : Less than car lots to wholesalers, not more than 5 per cent of car-lot price in sacks. Less than car lots to bakers, hotels, retailers, and manufacturers other than flour mixers, not more than 10 per cent of car-lot price in sacks. Less than car lots to individual consumers, not more than 20 per cent of car- lot price in sacks. (If this margin is added the 10 per cent margin must not be added. Semiannual profits. — ^The Food Administration will consider a net earning of more than 6 per cent upon the gross sales of any edible products of corn, oats, rye, or barley as shown at the end of any semiannual period, to be prima facie evidence of a violation of the rule which prohibits the taking of unrea- sonable profits. (General rule 5.) This limitation does not jnodify or abrogate the general principle contained in the Food Administration regulations that a licensee should not earn more than a reasonable net profit on his capital in- vested, nor does it change in any way the maximum margins which have been prescribed on individual sales. (New, Nov. 7, 1918:) Semiannual profit of wet-corn millers. — The Food Ad- ministration will consider a net earning of more than 6 per cent upon the gross sales of all products or by-products of corn, whether such products or by- products are sold, pure or mixed, with other commodities, by any licensee en- gaged in the milling of corn for the production of starch or glucose and other products from the manufacture of starch, to be prima facie evidence of a viola- tion of the rule which prohibits the taking of unreasonable profits (General rule I — ^A — 5). This percentage vfill be calculated for each of the two semi- annual periods making up the licensee's fiscal year. The Federal income and excess profits taxes may not be deducted as expenses or otherwise, but all other taxes may be considered as expenses. This limitation does not modify ox abrogate the general principle contained in the Food Administration regula- tions that a licensee should not earn more than a reasonable net profit on its capital invested. [Ill— B— 5, 6.] Rui.E 5. Profits on liominy feed. — The licensee shall not sell hominy feed, hominy meal, hominy chop, barley feed, rye feed, or oat feed produced as a by-product of the manufacture of edible corn, barley, rye, or oat products at a price per pound in excess of the purchase price per pound of the grain from which it is manufactured. Rule 6. Uniform contract for certain corn products. — ^The licensee shall not sell corn meal, grits, corn flour, hominy, or refined grits in carload lots, except spot sales for cash or upon the terms contained in the form of contract prescribed below. Discount for cash may be allowed by mutual agreement between the parties : Provided, however, That this rule shall not apply to sales made to any person for the Federal, State, county, or municipal governments or for the Government of any nation at war with Germany. COLD-STORAGE LEGISLATION. FORM OP CONTBACT REFERRED TO IN RIILE 6. Contract No. sell and ...!.!!......'.'.'.'.' buy the following articles on the terms and conditions stated below-' ' Tune of shipment Shipment periods to be Routing ... '.".■.■"Destination'.'.:;!".;::::: Terms: Oasb, sight dratt, demand draft, or arrival draft Discount for cash , Banlcof 593 ...19.... of Number of pacliagos. Size. Kind. Brand. Price (sacks included). Give rate, basis, destination, or place of delivery. -Buyer. . .Sexier. [Ill— B — 5, 6 (a). Sept. 1, 1918. Substitute this for III— B— 5, 6.] Etjle 5. Profits on hominy feed. — The licensee shall not sell hominy feed, hominy meal, hominy chop, barley feed, rye feed, or oat feed produced as a by-product of the manufacture of edible corn, barley, rye, or oat products at a price per pound in excess of the purchase price per pound of the grain from which it is manufactured. BuiE 6 (as emended Sept. 1, 1918). Uniform contract for certain com, oats, rye, and barley products. — The licensee shall not sell hominy, corn grits, corn meal, corn flakes, starch from corn, corn flour, barley flour, rye flour, oat meal, rolled oats, or oat flour in carload lots, or less than car lots when Included in a mixed-car shipment, except spot sales for cash or upon the terms contained in the form of contract prescribed below. Discount for cash may be allowed by mutual agreement between thff parties : Provided, however, That this rule shall not apply, to sales made to any person for the Federal, State, county, or munici- pal governments, or for the Government of any nation at war with Germany. FORM OF CONTRACT REFERRED TO IN RULE 6. Contract N< ) 19 ' n> sell and - buythetoU Timeofshi Shipment p Routing.,. Terms: Gas Discount toi Bankof.... owing articles on the terms and conditions stated below: eriods to be h, sight drafi Destination , demand draft, or arrival dratt. Number of packages. Size. Kind. Brand. Price (sacks in- cluded). ■ ■ Give rate basis, destination, or place of deli very. Buyer. ; Seller. [Ill— B— 5, 6(b). Nov. 7, 1918. Substitute this for III— B— 5, 6(a).] Rule 5 (as amended Nov. 1, 1918). Profits on feeds.— The licensee shall not sell hominy feed, hominy meal, hominy chop, gluten feed, oil-cake meal, or other feed by-product of corn, hominy feed, rye feed, or oa^fee4, produced as a 594 COLD-STORAGE LEGISLATION. by-product of the manufacture of corn, barley, rye, or oat products at a price per pound in excess of ttie purchase price per pound of the grain from which it is manufactured. Rule 6 (as amended Sept. 1, 1918). Dniform contract for certain corn, oats, rye, and harley products. — The licensee shall not sell hominy, corn grits, corn meal, corn flakes, starch from corn, corn flour, barley flour, rye flour, oat meal, rolled oats, or oat flour in carload lots, or les's than car lots when included in a mixed car shipment, except spot sales for cash or upon the terms con- tained in the form of contract prescribed below. Discount for cash may be allowed by mutual agreement between the parties : Provided, however. That this rule shall not apply to sales made to -any person for the Federal, State, county or municipal governments, or for the Government of any nation at war with Germany. FORM OF CONTRACT BEFEBBED TO IS Elrt-E 6. Contract N( 19 fii sell and buy the foil Time of shlj Shipment p Routing Terms: Gasl Disoomit foi owing articles on the terms and conditions s-tated below: ment ■ . : Destination I, sight draft, demand draft, or arrival draft. Number of packages. Size. Kind. Brand. Price (saclts included). Give rate basis, destination, or place of delivery. - .-. Seller. Substitute this for III— B— [III— B— 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15. Dec 13, 1918. Subs. „ „ _ 5, 6(b), III— B— 6 (a)— continued, III— B— 7 (a). Ill— B— 7 (a)— continued (1) III— B— 7 (a)— continued (2), III— B— 7 (a)— continued (3), III— B— 8, 9, 10 (b) III_B— 11. 12 (b), III— B— 13, 14, 15.] The following rules were repealed on December 12, said repeals to become effective December 17, 1918 : Rule 5. Profits on feeds. Rule 6. Uniform contract for certain corn, oats, rye, and barley products. Rule 7. Specifications for corn, oats, rye, and barley products. Rule 8. Package differentials on corn meal. Rule 9. Corn, rye, and barley' products must arrive in good condition. Rule 12. Feed products not to be separated. Rule 13. Corn, oats, rye, and barley products not to be delivered to brewers or distillers. Rule 14. Priorities on deliveries of glucose. Rule 15. Specifications for glucose. Rule 10. Uniform packages prescribed — was repealed on December 3. Rule 11. Minimum for carload shipments — was repealed on December 5, said repeal to become effective December 10, 1918. [Ill— B— 6 — Continued.] TERMS AND CONDITIONS. (1) Food! Administration regulations. — It is understood and agreed that the buyer and seller shall conform to all regulations promulgated by the United States Food Administration. (2) Net weights. — Corn meal, grits, and corn flour, com hominy, flakes, and refined grits shall be sold upon the basis of net weights when packed, and the determining factor as to weight shall be a moisture content not in excess of fiovernment allowance. COLD-STOEAGE LEGISLATION. 595 (3) Contract not subject to change. — It Is understood that there are no con- ditions, representations, or warranties, verbal or otherwise, and that there shall be no assignment or cancellation of this contract, except as herein stated, and no agent or representative has authority to modify the printed terms of this contract. (4) Shipment within 60 days. — It is understood and agreed that the above order shall be shipped as specified within 60 calendar days, dating from time when order is taken. • (5) Nonextension of time.— There shall be no extension of time of shipment under this contract except as herein specified. (6) Buyers nonfulfillment of contract. — If the buyer shall refuse to accept any shipment as specified hereunder or fail to file with the seller specifications with the order for immediate, quick, or prompt shipment or within 15 days of time of shipment, if sold for later than prompt shipment, or to perform any of the terms of this agreement, then the seller may at its option and upon due notice to the buyer cancel this contract, and the buyer shall pay to the seller an entry charge of 2i per cent on corn products plus the actual market differ- ence. The seller may pursue such other remedies as the law may provide. On the refusal or neglect by the buyer to accept any shipment made in compliance with the contract as specified hereunder or to perform any of tlie terms of this agreement, the seller may treat such refusal or neglect as a breach of the entire contract, for which the seller is entitled immediately to avail himself of any rights in . this contract specified ; but except for reason or reasons specified herein, if the shipment as specified is not executed within 60 days from date of contract, it shall be canceled, and payment of charges above specified shall be made by the buyer to the seller. (7) Seller's nonfulfillment of contract. — If the seller shall fall (except for reasons herein specified) to make any shipment as specified in accordance with the terms of the contract within the time indicated by this contract, then the buyer may at his option cancel the shipment, and In the event of such default the seller shall, upon demand, pay to the buyer entry charge of 2i per cent on corn products plus the actual market difference, and the buyer may pursue such other remedies as the law provides. (8) Exceptions to seller's responsibility. — For delay in making shipment as specified, occurring through the fulfillment of Government contracts, or through fire, strikes, or labor difficulties, acts of carriers, car supply, or similar causes beyond the control of the seller, the seller is not responsible. [Ill— B— 6 (a) — Continued. Sept. 1, 1918. Substitute this for III— B— 6— Continued.] TERMS AND CONDITIONS. It is understood .and agreed : (1) Food Administration regulations. — That the buyer and seller shall con- form to all regulations promulgated by the United States Food Administration. (2) Net weights. — That the corn, oats, rye, or barley products covered by this contract are sold on the basis of net weights when packed, and the determining factor as to weight shall be a moisture content not in excess of Government allowance. (3) Contract not subject to change. — That there are no conditions, representa- tions, or warrants, oral or otherwise, and that there shall be no assignment or cancellation of this contract except as herein stated, and that no agent or representative has authority to modify the printed terms of this contract. (4) Shipments within 60 days. — ^That the above order shall be shipped or delivered as specified within 60 days from the time that the order is confirmed by the seller unless a shorter time is expressly provided. (5) Routing.— That the seller shall have the right to route all shipments unless otherwise stated in this contract. ^ ^-^ ^. j, (6) Nonextension of time.— That there shall be no extension of the time of shipment or delivery under this contract except as herein specified. (7) Buyer's nonfulfillment of contract.— That if the buyer shall fail to file with the seller specifications and shipping instructions with the order, if the order provides for immediate, quick, or prompt shipment, or 15 days prior to the specified time for shipment if sold for later than prompt shipment then the seller may cancel this contract and the buyer shall pay to the seller an entry charge of 2i per cent on the corn, oats, rye, or barley products plus or minus the market difference, provided that if such shipping instructions are 596 COLD-STOBAGE LEGISLATION. received before the date specified for sliipment and prior to any cancellation being sent, the seller's rights to cancel shall cease. If the buyer shall refuse to accept any shipment or delivery as specified hereunder or fail to perform any of the terms of this agreement, then the seller may cancel this contract and the buyer shall pay to the entry charge above provided plus or minus the market difference. In addition thereto the seller may pursue such further remedy as the lavf may provide. (8) Seller's nonfulfillment of contract. — That if the seller shall fail except for the reason specifled'in'pstragra^hi9 'Of this contract to make any shipment or delivery as specified, then the buyer may at his option cancel this contract at any time before actual shipment, and the seller shall pay to the buyer an entry charge of 2i per cent on the corn, oats, rye, or barley products covered by the contract plus or minus 'the market difference. The buyer may pursue such further remedy as the law may provide. (9) Exceptions to seller's responsibilities. — ^That If this contract can not be performed by the seller within the time specified because of ^ Government con- tracts not in contemplation at the time of the contract, or because of fires, strikes, labor difficulties, acts of carriers, or other causes beyond the control of the seller, and if the seller notifies the buyer of such Inability, stating the specific cause, as soon as he knows that such inability will prevent per- formance, and in any event on or before the date of shipment or delivery, the seller shall not be responsible for failure to perform. In such event the buyer shall have the option of canceling the contract at the market difference, pro- vided he exercises such option within 24 hours from the time he receives notice of the seller's Inability to perform. If such option is not exercised, the contract time of shipment or delivery shall be extended until a reasonable time after the termination of seller's inability is removed, but not to exceed 30 days beyond the original date of shipment or delivery. At the end of such additional 30 days' period the buyer shall again have the right to cancel as above provided or the contract shall be similarly extended. (10) Buyer's responsibility for final payment. — ^That where buyer specified the bank through which draft is to be presented and to whom payment is to be made by the buyer the buyer shall be responsible for final payment to the seller. (11) Package differentials. — That both buyer and seller agree to the shipment or delivery of commodities named in this contract on the basis of the package differentials In effect at date of sale as promulgated by the United States Food Administration. ■ (Seller.) By (Buyer.) By [III— B— 7.] Rule 7. Specifications for hominy, grits, corn meal, corn flour, hominy feed, barley flour, and rye flour. — On and after July 1, 1918, the licensee shall, not quote, sell, or label products of corn, rye, or barley under the following desig- nations unless the products conform to the specifications Indicated thereunder. The texture of product shall be determined by sifting with hand sieves clothed with the cloth specified, which shall be the standard bolting cloths now in use, whether of woven wire, grits gauze, or bolting silk. The analyses of products for moisture, fat, carbohydrates, fiber, ash, or other quality or content, shall be made by the official methods of the American Association of Agricultural Chemists. Not to exceed 70 pounds of hominy, grits, cream meal, or corn fiour shall be made from 100 pounds of corn. Such corn shall be clean and sound, and shall not contain more than 14i per cent moisture. Pearl or table hominy. — Shall be degerminated hulled corn, screened or dusted over a No. 10 wire cloth or five sixty-fourths-inch perforated metal or equiva- lent, and shall not contain more than 14 per cent moisture and 1 per cent fat, by ether extraction. OrJi«.— Shall be- made from hominy or clean, sound corn, ground to a granula- f ion fine enough to sift through No. 12 wire cloth, and shall be dusted over a COLD-STOEAGE LEGISLATION. 597 No. 28 wire cloth or equivalent, and shall contain not more than 14 per cent moisture and li per cent fat by ether extraction. Note. — Grits may be made inside these limits of granulation and labeled "coarse," "medium," or "fine" according to granulation. Cream meal. — Shall be made from hominy or grits, screened through No. 22 wire cloth or equivalent and dusted over No. 72 grits gauze, and shall contain not more than 14 per cent moisture and li per cent fat by ether extraction, or 12i per cent moisture and 2^ per cent fat. [lli— B— 7 (a). Sept. 1, 1918. Substitute this for III— B — 7.] RuxE 7 (as amended Sept. 1, 1918). Speciflcatiom for com, oats, rye, and barley products.-^The licensee shall not quote, sell, or label products of corn, rye, or barley on and after July 1, 1918, or products of oats on and after Sep- tember 1, 1918, under the following designations unless the products conform to the specifications indicated thereunder. No barley flour, barley meal, rye flour, rye meal, rolled oats, oatmeal, oat flour, hominy, hominy grits, corn grits, corn fl^our, corn meal, or hominy feed shall be sold for interstate shipment or for export, or shipped In Interstate or foreign commerce unless manufactured in accordance with one of the following specifications. When sold for interstate or export shipment, or shipped in interstate or foreign commerce the licensee shall print, stamp, or stencil on each package the name indicated for such prod- uct in this rule. The texture of the product shall be determined by sifting with hand sieves clothed with the cloth specified, which shall be the standard bolting cloths now in use, whether of woven wire, grits gauze, or bolting silk. The analyses of products for moisture, fat, carbohydrates, fiber, ash, or other quality or content, shall be made by the official methods of the American Asso- ciation of Agricultural Chemists, except when they have no established method by such method as is approved by the United States Food Administration. Not to exceed 70 pounds of hominy, grits, cream meal, or corn flour shall be made from 100 pounds of clean; sound corn based upon a moisture content of 14J per cent. " This extraction shall be reduced proportionately when corn with higher moisture content is used and may be increased proportionately when corn of lower moisture content is used, but shall not in any case exceed 72 pounds. Pearl or table hominy shall be degerminated, hulled corn, screened or dusted over a No. 10 wire cloth or five sixty-fourths-inch perforated metal or equivalent, and shall con tain, not to exceed, 15 per cent of moisture and fat in the aggre- gate, the moisture in no event to exceed 14 per cent or the fat IJ per cent by ether extraction. [ III-r-^B-^7— Continued ( 1 ) . ] Corn flour. — This shall be made from hominy, grits, or cream meal, and shall be of a texture fine enough so that not leps than 75 per cent will sift through No. 9 XX bolting silk and balance shaU sift through No. 72 grits gauze; shall be of an even color and shall contain not more than 13i per cent moisture and H per cent fat, by ether extraction, or 12^ per cent moisture and 2 per cent fat. No corn flour shall contain more than 2 per cent, fat. Standard meal. — Shall be made from clean, sound corn with approximately 10 per cent of feed removed and approximately 45 per cent of cream meal or grits extracted, and if sold for export shall contain not more than 9 per cent moisture. i Pearl meal,-^ShsJ\. be made from clean, sound corn with approximately 15 per cent of the bran and germ removed, and shall cbntain not more than 11 per cent moisture and 3 per cent fat by ether extraction. Bolted weaJ.— Shall be made from clean, sound corn with approximately 5 per cent of bran and germ removed, and if sold for export shall contain not more than 9 per cent moisture. "Old-fashioned," or "water-ground" meal. — Shall be clean, sound corn ground to a " soft " meal, and if sold for export shall contain not more than 9 per cent moisture. < ' i. j,' Bwrley /ZoMr.— Shall be milled from clean, sound barley, and shall be of a texture fine enough to sift through No. 9 XX bolting silk; and shall be of a uniform color, and shall contain not more than Hi per cent moisture and lA per cent fat, by ether extraction; and not more than 55 pounds of barley flour shall be made from 100 pounds of clean, sound barley. 598 COLD-STOKAGE LEGISLATION. [Ill— B— 7 (a)— Continued (1). Sept. 1, 1918. Substitute this for III— B— 7— Continued (1).] Grits. — Shall be made from hominy or clean, sound corn, ground to a granu- lation fine enough to sift through a No. 12 wire cloth, and shall be dusted over a Noi 28 wire cloth or equivalent, and shall contain not more than 15 per cent moisture and fat in the aggregate, in no event to exceed 13^ per cent moisture, vand in no event to exceed 2i per cent fat by ether extraction. Note. — Grits may be made inside these limits of granulation and labeled " coarse," ," medium," or " fine," according to granulation. Cream meal. — Shall be made from hominy, grits or clean, sound corn, screen through No. 22 wire cloth or equivalent and dusted over No. ^2 grits gauze, and shall contain not more than 15 per cent moisture and fa,t in the aggregate, in no event to exceed 13i per cent moisture, and in no event to exceed 2J per cent fat by ether extraction. Corn flour. — Shall be made from hominy, grits, cream meal, or clean, sound corn, and shall be of a texture fine enough so that not less than 75 per cent will sift through No. 9 XX bolting silk and balance shall sift through No. 72 grits gauze ; shall be of an even color and shall contain not more than 15 per cent moisture and fat in the aggregate, in no event to exceed 134 per cent moisture, and in no event to exceed 24 per cent fat by ether extraction. Standard meal. — Shall be made from clean, sound corn with approximately 45 per cent of cream mea) or grits and approximately 10 per cent of feed extracted. If sold for interstate shipment it shall contain not more than 12 per cent moisture and if sold for export it shall contain not more than 9 per cent moisture. Pearl meal. — Shall be made from clean, sound corn with approximately 15 per cent of the bran and germ removed, and shall contain not more than 12 per cent moisture and 3 per cent fat by ether extraction. Bolted meal. — Shall be made from clean, sound corn with approximately 5 per cent of bran and germ removed, and if sold for interstate shipment or shipped in interstate commerce shall contain not more than 12 per cent moisture. If sold for export it shall contain not more than 9 per cent mois- ture. [Ill— B— 7— Continued (2),] Rye flour. — Shall be milled from clean, sound rye, and shall be of a texture fine enough so that not less than 85 per cent shall sift through No. 9 XX bolting silk and balance through No. 8 XX silk; shall be of a uniform color, and shall not contain more than 134 per cent moisture and 14 per cent by ether extraction ; and not more than a total of 70 pounds of white, straight, or dark rye flour shall be made from 100 pounds of clean, sound rye. If this product is separated into patent and dark rye flour, not more than 70 per cent of the extracted flour shall be labeled or sold as " patent." The dark rye flour which results shall not be subjected to further separation or division, but may contain not to exceed 24 per cent fat. Hominy feed, hominy meal, or hominy chop. — Shall be a kiln-dried mixture of the mill run bran coating, the mill run germ, with or without a partial ex- traction of the oil and a part of the starchy portion of the corn kernel obtained in the manufacture of hominy, hominy grits, and corn meal by the degermina- ting process from clean, sound, white corn ; shall contain not to exceed 14 per cent moisture, not to exceed 7 per cent fiber, not less than 10 per cent protein, not less than 5 per cent fat, and shall be of a texture fine enough to sift through No. 12 wire bolting cloth. Yellow hominy feed, yellow hominy meal, yellow hominy cftop.— ^Shall con- form to the specifications of hominy feed, except that it shall be made from clean, sound, yellow corn. Note to Rule 7. — ^The moisture content for hominy, grits, cream meal, and corn flour has been placed at the outside limit, and is not intended to limit contracts expressly providing for a lower moisture content. Exporters cus- tomarily require one-half per cent lower than the above limitations and many domestic buyers also properly demand the lower maximum. The Food Admin- istration has fixed the maximum at the higher level, with a view to protecting the smaller millers with less complete equipment engaged in local trade, in which durability is not so essential. The larger millers, with wider distribu- tion, should note the advisability of adhering to the lesser maximum in protect- ing their customers and their own trade. Any corn, rye, or barley content of any mixed or blended flour must conform with these specifications. COLD-STOBAGE LEGISLATION. 599 [ill— B— 7 (a) — Continued (2). Sept. 1, 1918. Substitute this for III— B— 7— (a)— Continued (2).] ^ ' Old-fashioned or vyater-ground meal. — Shall be clean, sound corn ground to a "soft" meal, and if sold for interstate shipment or shipped in interstate commerce shall contain not more than 12 per cent moisture. If sold for export, it shall contain not more than 9 per cent moisture. Barley flour. — Shall be milled from clean, sound barley, and shall be of a texture fine enough to sift through No. 9 XX bolting silk; and shall be of a uniform color, and shall contain not more than Hi per cent moisture and 2i per cent fat by ether extraction ; and not more than 55 pounds of ittarley flour shall be made from 100 pounds of clean, sound barley. Rye flour. — Shall be milled from clean, sound rye, and shall be of a texture fine enough so that not less than 85 per cent shall sift through No. 9 XX bolting silk and balance through No. 8 XX silk; shall be of a uniform color, and shall not contain more than ]3i per cent moisture and 14 per cent fat by ether extraction ; and not more than a total of 70 pounds of white, straight, or dark rye flour shall be made from 100 pounds of clean, sound rye. If this product is separated into patent and dark rye flour, not more than 70 per cent of the extracted flour shall be labeled or sold as " patent." The dark rye flour which results shall not be subjected to further separation or divi- sion, but may contain not to exceed 2J per cent fat. Hominy feed, hominy meal, or hominy chop. — Shall be a kiln-dried mixture of the mill run bran coating, the mill run germ, with or without a partial ex- traction of the oil and a part of the starchy portion of the corn kernel obtained in the manufacture of hominy, hominy grits, and corn meal by the degermi- nating process from clean, sound, white corn ; shall contain not to exceed 14 per cent moisture, not to exceed 8 per cent flber, not less than 10 per cent protein,- not less than 5 per cent fat, and shall be of a texture fine enough to sift through No. 12 wire bolting cloth. [Ill— B— 7 (a)— Continued (3).] Rolled oats. — Shall be milled from oat groats made from clean, sound oats, steamed and rolled to flakes, and shall contain not to exceed 10 per cent mois- ture and not to exceed 2 per cent fiber. Oat meal. — Shall be milled from oat groats made from clean, sound oats, ground or cut to a granular texture, and shall contain not to exceed 10 per cent moisture and not to exceed 2 per cent fiber. Oat flour. — Shall be milled from oat groats made from clean, sound oats or from rolled oats or oat meal, and shall be ground to a texture fine enough so that not lefss than 70 per cent will sift through No. 7 XX bolting silk and balance through No. 52 grits gauze, and shall contain not to exceed 10 per cent moisture and 2 per ceut flber. Note to Rule 7.^-The moisture content for hominy, grits, cream meal, and corn flour has been placed at the outside limit, and is not intended to limit contracts expressly providing for a lower moisture content. Exporters cus- tomarily require one-half per cent lower than the above limitations, and many domestic buyers also properly demand the lower maximum. The Food Adminis- tration has fixed the maximum at the higher level with a view to protecting the smaller millers with less complete equipment engaged in local trade in which durability is not so essential. The larger millers with wider distribution should note the advisability of adhering to the lesser maximum in protecting their customers and their own trade. Any corn, rye, or barley content of any mixed or blended flour must conform with these specifications. [Ill— B— 8, 9, 10.] Rule 8. Package differentials on corn meal. — The licensee shall not sell corn meal, corn grits, hominy, corn flour, barley flour, or rye flour, except on the basis of the following differentials : Basis 100 pounds cotton or jute bags. Cents per 100 pounds. 50 pounds cotton over basis.. 10 25 pounds cotton do 20 10 pounds cotton do ^^ 5 pounds cotton do 75 600 COLD-STOEAGB liEGISLATIOK". Cents per 100 poundB. 50 pounds paper under basis 10 25 pounds paper do 5 10 pounds paper , over basis 15 5 pounds paper do 30 3 pounds paper do 45 Extra charge for burlapping, baling, or double sacking, 35 cents per 100 pounds. Rule 9. Corn, rye, an,d i.arley products must arrive in good condition. — The licensee shall ship all corn, barley, and rye products in such condition that, except for circumstances beyond the control of the shipper, they shall arrive at destination point in the United States cool, sweet, and in merchantable con- dition, unless there is an express agreement in vsriting to the contrary. Corn meal, grits, hominy, corn flour, barley flour, and rye flour intended for human consumption shall not be considered to comply with this rule if they have an acidity exceeding 40°,. or hominy feed, corn, rye, or barley feeds if they have an acidity exceeding 80°. Corn starch shall not be considered to comply with this rule if it contains; more than five one-thousandths of 1 per cent of sulphur dioxide. Rule 10. Uniform paclcages prescribed.-^The licensee shall not sell corn meal, corn grits, or hominy after April 1, 1918, or corn flour, barley flovir, oat flour, rye flour, cereaUne flakes, starch from corn,- bulk rolled oats, or bulk oat meal after October 1, 1918, for domestic use in the United States, except in packages containing 1 pound, IJ pounds, 2 pounds, 3 pounds, 5 pounds, 10 pounds, 25 pounds, 50 pounds, or 100 pounds, net weight, without special permission in writing from the United States Food Administration. [Ill — B— 8, 9, 10 (a). Sept. 1, 1918. Substitute this for III— B— 8, 9, 10.] Rule 8. Package differentials on corn meal. — ^The licensee shall not sell corn meal, corn grits, hominy, corn flour, barley flour, or rye flour, except on the basis of the following difCerentlals : Basis 100 pounds cotton or jute bags. Cents per 100 pounds. 50 pounds cotton over basis 10 25 pounds cotton do 20 10 pounds cotton do 50 5 pounds cotton do 75 50 pounds paper under basis— 10 25 pounds paper , do 5 10 pounds paper over basis— 15 5 pounds paper do 30 3 pounds paper do 45 Extra charge for burlapping, baling, or double sacking, 35 cents per 100 pounds. Rule 9. Com, rye, and barley- products must arrive in good condition. — The licensee shall ship all corn, barley, and rye products in such condition that, except for circumstances beyond the control of the shipper, they shall arrive at destination point in the United States cool, sweet, and in merchantable condi- tion unless there is an express agreement in writing to the contrary. Com meal, grits, hominy, corn flour, barley flour, and rye flour intended for human consumption shall not be considered to comply with this rule if they have an acidity exceeding 40°, or hominy feed, corn, rye, or barley feeds if they have an acidity exceeding 80°. Corn starch shall not be considered to comply with this rule if It contains more than Ave one-thousandths of 1 per cent of sulphur dioxide. Rule 10 (as amended Sept. 1, 1918 ;i. Uniform paclcages presm&ed.— The licensee shall not sell corn meal, corn grits, or hominy after April 1, 1918, or corn flour, barley flour, oat flour, rye flour, corn flakes, or starch from corn after October 1, 1918, for domestic use In the United States, except In packages containing 1 pound, IJ pounds, 2 pounds, 3 pounds, 5 pounds, 10 pounds, 25 pounds, 50 pounds, or 100 pounds, net weight, nor rolled oats, or oat meal, after COLD'STOEAGE LEGISLATION. 601 October 1, 1918, except in packages containing IJ pounds, 3i pounds, or 100 pounds, net welg'ht, without special permission in writing from the United States Food Administration. • [III^B— B8, 9, 10 (a). Oct. 1, 1918. Substitute this for III— B— 8, 9, 10 (a).] Rule 8. Package differentials on com meal. — The licensee shall not sell corn meal, corn grits, hominy, corn flour, barley flour, or rye flour, except on the basis of the following differentials : Basis 100 pounds cotton or jute hags. Cents per 100 pounds. 50 pounds cotton over basis— 10 25 pounds cotton do 20 10 pounds cotton do 50 5 pounds Cotton , do 75 50 pounds paper : ': .^ under basis.. 10 25 pounds -paper.. do 5 10 pounds paper ;: over basis.. 15 5 pounds paper do 30 3 pounds paper do 45 Extra charge for burlapping, baling, or double sacking, 35 cents per 100 pounds. Rule 9. Corn, rye, and iarley products must arrive in good condition. — The licensee shall ship all corn, barley, and rye products in such condition that, except for circumstances beyond the control of the shipper, they shall arrive at destination point in the United States cool, sweet, and in merchantable condi- tion unless there is an express agreement in writing to the contrary. Corn meal, grits, hominy, corn flour, barley flour, and rye flour Intended for human consumption shall not be considered to comply with this rule if they .have an . acidity exceeding 40°, or hominy feed, corn, rye, or barley feeds if they have an acidity exceeding 80°. Corn starch shall not be considered to comply with this rule if It contains more than five one-thousandths of 1 per cent of sulphur dioxide. Rule 10 (as amended Oct. 1, 1918). Uniform packages prescribed^ — ^The licensee shall not sell corn meal, corn grits, or hominy after April 1, 1918, or corn flour, barley flour, oat flour, rye flour, corn flakes, or starch from corn after October 1, 1918, for domestic use in the United States, except in packages containing 1 pound, IJ pounds, 2 pounds, 3 pounds, 5 pounds, 10 pounds, 25 pounds, 50 pounds, or 100 pounds, net weight, nor rolled oats nor oat meal after October 1, 1918, except in packages containing IJ pounds, 3J pounds, or 100 pounds, net weight, without special permission in writing from the United States Food Administration: Provided, That so long as the Food Administra- tion regulations require that 1 pound of substitutes be sold vpith every 4 pounds of wheat flour, or 2 pounds of rye flour with every 3 pounds of wheat flour, the licensee may sell corn meal, corn flour, barley flour, and oat flour in pack- ages containing 6 pounds or 12 pounds, or rye flour in packages containing 16 pouhds or 32 pounds, without such special permission : Provided further. That rolled oats and oat meal may be sold in packages containing 22 ounces if such packages are manufactured prior to Decembier 1, 1918. [Ill— B— 8, 9, 10 (b). Dee. 4, 1918. Substitute this for III— B— 8, 9, 10 (a).] Bulb 8. Packing differentials on corn meal. — The licensee shall not sell corn meal, corn grits, hominy, corn flour, barley flour, or rye flour, except on the basis of the following differentials : Basis 100 pounds cotton or jute tags. Cents per 100 pounds. 50 pounds cotton over basis.. 10 25 pounds cotton ^ do 20 10 pounds cotton do 50 5 pounds cotton do 75 50 pounds paper under basis.. 10 25 pounds paper do 5 10 pounds paper over basis.. 15 5 pounds paper do 30 3 pounds paper do 45 602 COLD-STOEAGE LEGISLATION. Extra charge for burlapping, baling, or double sacking, 35 cents per 100 pounds. Rule 9. Com, rye, and barley products must arrive in good condition. — The licensee shall ship all corn, barley, and rye products in such condition that, except for circumstances beyond the control of the shipper, they shall arrive at destination point In the United States cool, sweet, and in merchantable con- dition unless there is an express agreement in writing to the contrary. Corn meal, grit's, hominy, corn flour, barley flour, and rye flour intended for human con- sumption shall not be considered to comply with this rule if they have an acidity exceeding 40°, or hominy feed, corn, rye, or barley feeds if they have an acidity exceeding 80°. Corn starch shall not be considered to comply with this rule if it contains more than five one-thousandths of 1 per cent of sulphur dioxide. Rule 10. Uniform packages prescribed. — (Repealed Dec. 3, 1918.) [Ill— B— 11.] Rule 11. Minirmum for carload shipment. — All carload shipments of barley flour, rye flour, oat meal, rolled oats, corn grits, corn meal, hominy, corn flour,, starch from corn, cerealine flakes, corn oil, corn sirup* glucose, and feeding stuffs shall be made in car lots of not less than 60,000 pounds or in the case of corn sirup, glucose, or corn starch in barrels in car loaded to floor space capacity in tiers on end, unless a different minimum is authorized by special written permission of the United States Food Administrator : Provided, Kowever, That when cars of lower carrying capacity are used the maximum which the car will carry may be used without such permission. [Ill— B— 11, 12 (a). Sept. 1, 1918. Substitute this for III— B— 11.] Rule 11 (as amended Sept. 1, 1918). Mimmum for owrload shipments. — All carload shipments of barley flour, rye flour, oat flour, oatmeal, rolled oats, corn grits, corn meal, hominy, corn flour, starch from corn, corn oil, corn sirup, ■glucose, and feeding stuflis shall be made in car lots of not less than 60,000 pounds or, in case of corn sirup, corn oil, or glucose, in barrels, in car loaded to floor-space capacity m tiers on end,, and all carload shipments of corn flaikeSf shall be made in cars loaded to capacity unless a different minimum is authoE' ized by special written permission of the United States Food Administrator:: Provided, however; That when, cars- of lower carrying capacity, are used the maximum which the car will carry may be used without such permission., Rule 12 (effective Sept. 1, 1Q18) . Feed products not to be separated. — The licensee shall not make any separation of the 45 or higher per cent feed by- product created in the manufacture of barley flour, or of the 30, or higher per cent by-product created in the manufacture of rye flour, or of the feed by- product created in the manufacture of oatmeal^ rolled oats, or oat flour, and such feed by-product of barley, rye, or oats shall be sold intact. Nothing in. this rule shall prevent the use of these unseparated by-products, in the manu- facture of commercial mixed feeds. [Ill— B— 11, 12 (b). Dec. 6, 1918. Substitute this for III^B^ll, 12 (&).] Rule 11. Minimum for carload shipments. — (Repealed Dec. 5, said repeal to become effective Dec. 10, 1918.) Rule 12 (effective Sept. 1,, 1918). Feed products not to be separated. — The licensee shall not make any separation of the 45 or higher per cent feed by- product created in the manufacture of barley flour, or of the 30 or higher per cent by-product created in the manufacture of rye flour, or of the feed by- product created in the manufacture of oatmeal, rolled oats, Or oat flour, and such feed by-product of barley, rye, or oats shall be sold intact. Nothing in this rule shall prevent the use of these unseparated by-products in the manu- facture of commercial mixed feeds. [Ill— B — 13. Sept. 20, 1918. This should follow III— B— 11, 12 (a).] Rule 13 (effective Oct. 1, 1918). Com, oats, rye, and barley prodiicts not to be delivered to brewers or distillers. — The licensee shall not sell or deliver to any person any products of corn, oats, rye, or barley, other than barley malt manufactured prior to September 1, 1918, for the purpose of manufacturing beer, near beer, or other similar cereal beverages, nor any products of corn, oats, rye, or barley, other than barley malt for the purpose of distilling spirits or alcohol. COLD-STOEAGB LEGISLATION. 6,Q3 [III— B— 13, 14, 15. Nov. 7, 1918. Substitute this for ill— B— 13.] RuiE 13 (efeective Oct. 1, 1918). Corn, oats, rye, and barley products not ta 6e delivered to brewers or distillers.— The licensee shall not sell or deliver to any person any products of corn, oats, rye, or barley, other than barlev malt manufactured prior to September 1, 1918, for the purpose of manufacturing beer, near beer, or other similar cereal beverages; nor any products of corn oats, rye, or barley other than barley malt for the purpose of distilling spirits or alcohol. RxiLE 14 (effective Nov. 20, 1918). Priorities on deUveries of glucose— The licensee shall not, vfithout the vi'ritten consent of the United States Food Administrator, make any deliveries of glucose after November 20, 1918 to any person until he shall have delivered glucose to customers of every class desig- nated by a lower number. This rule shall apply to all deliveries regardless of the date of the contract therefor, and whether heretofore or hereafter made Class 1. United States Government, the American Red Cross, the Young Men's. Christian Association, the Salvation Army, and the Knights of Columbus Class 2. Sirup mixers for use in filling contracts with parties in class 1. Class 3. Sirup mixers and wholesale and retail grocers for distribution tO' household trade, or public eating houses, or for medicinal purposes : Provided,. That a certificate is furnished by the purchaser with his order in the following: form: I. . for the purpose of securing for this order a rating in class 3 under the sirup regulations of the United States Food Administration, do hereby certify that the glucose covered by this order will be resold (will be used for mixing sirups) for the household trade or public eating places (the preparation of medicines) and for no other purpose. Class 4. Commercial bakers : Provided, That a certificate is furnished by the purchaser with his order in the following form : !> , for the purpose of securing for this order a rating in class 4 under the sirup regulations of the United States Food Administration, do hereby certify that the sirups or glucose covered by this order will be resold alter- natively (used for mixing sirups for commercial baking) and for no other purpose. Class 5. All others. Rule 15 (new, Nov. 7, 1918). Specifications for glucose. — The licensee shall ship all glucose in such condition that, except for circumstances beyond the control of the shipper, it shall arrive at destination point in the United States sweet and sound and in merchantable condition, unless there is an express- agreement in writing to the contrary. Glucose shall not be considered tO' comply with this rule if the Baumg test shows less than 41°. [Ill— C— 1, 2, 3. Dec. 13, 1918. Substitute this for IV— C— 1, 2, 3, which should have been numbered III — C — 1, 2, 3.] C. SPECIAI, LICENSE REGULATIONS GOVERNING LICENSEES ENGAGED IN THE BUSINESS^ or MANUFACTURING BUCKWHEAT PRODUCTS. (Effective Nov. 15, 1918.) Rule 1. Unreasonable profits prohibited. — The licensee shall sell buckwheat flour at not more than a reasonable margin over the average cost to him of the- buckwheat from which such flour is manufactured. In estimating such aver- age cost, he shall Include all grain in his possession or under his control by contract or other arrangement, but he shall not include any grain which he has: contracted to sell Or the products of which he has contracted to sell : Provided,. That in determining the cost of such grain he shall deduct from the average- purchase price the proceeds from the sale of feed or offal created in the milliiig: operation, or if not sold he shall deduct its current market value. Any average- once calculated shall be taken as the basis for such average grain in all' sub^ sequent calculations. He shall keep records in such manner as to show how all averages and selling- prices have been determined. 137690—19 39 604 COLD-STOEAGB LEGISLATION. Note. — The Food Administration has determined that the sale of buckwheat flour at a gross margin In excess of $1.25 per 100 pounds bulk product over the cost of the buckwheat is unreasonable and excessive under the foregoing rule. These margins may therefore be regarded as maximum margins but they do not in any way abrogate or modify the general rule that profits must not be ex- cessive. The Food Administration will further consider a net earning of more than 10' per cent on the iflrst $25,000 of jrross snles of buckwheat products, and 8 per cent on all gross sales over $25,000 as prima facie evidence of a violation of the rule' which prohibits the taking of unreasonable profits. ( General rule 5. ) This limi- tation does not modify or abrogate the general principle that a licensee should not earn more than a reasonable net profit on capitnl invested. Differentials on less than car-lot sales. — The following additional margins- over the $1.25 maximum will be considered reasonable by the Food Administra- tion on less than car-lot sales, but this does not modify in any way the 10 per cent and 8 per cent limitation of net profits. The additional margin should bfr calculated on car-lot price in sacks : (a) Less than car lots to wholesalers or flour mixers, not more than 4 per cent. ( 6 ) Less than car lots to bakers, hotels, or retailers, not to exceed 10 to 12| per cent in packages of 25 pounds or over ; not to exceed 12 to 15 per cent in packages less than 25 pounds. (Only one of three foregoing additional margins may added on any lot.) Rule 2. Specifications for buckwheat fiour.- — (Repealed Dec. 12, said repeal to become efCective Dec. 17, 1918.) Rule 3. Buclctoheat products must arrive in good condition. — (Repealed Dec. 12, said repeal to become efCective Dec. 17, 1918.) [IV— A— 1, 2, 3.] No. IV. A. SPECIAL LICENSE EEGULATIONS GOVERNING LICENSEES FOB THE MANUFACTURE;. STORAGE, AND DISTRIBUTION OF MALT. Rule 1. Orain malted limited to 70 per cent of year 1911. — The total amount of any grain malted by a licensed malster operating a malt house or malt manu- facturing plant shall not in the six months' period from January 1 to June 30" and July 1 to December 31 In any year exceed 70 per cent of the amount of such grain malted by such malster in such malt house or malt manufacturing- house in the corresponding six months' period in the year 1917, without the written permission of the United States Food Administrator. In making the- foregoing calculation malt actually used in the manufacture of yeast, malt extract, malt flour, cereal foods, or vinegar shall not be Included, and the- manufacture of malt for such purposes shall not be subject to the foregoing- limitation. Rule 2. Qravn. produced in 1917 not to be malted after July 1, 1918.— The- licensee shall not malt any grain produced in the year 1917 after July 1, 1918, nor shall he have on hand, in possession, or under control any such grain after July 1, 1918. Rule 3. Grain and malt under control not to exceed 120 days' supply— Eie,- ception.—The licensee shall not have on hand, in possession, or under control by contract or other arrangement at any time any greater quantity of grain and the malt made therefrom, including grain in process of being malted, than shall be equivalent to the output of his malt house or plant during a period of 120- days : Provided, That the supply of unmalted grain under control shall at no- time exceed 60 days' requirements without the consent in writing of the Unlteet States Food Administrator : Provided, That on July 1, 1918, the total amount of malt in the hands of any licensee shall not exceed the requirements of his. business for the next 90 days. [IV— A— 1, 2, 3, (a). Oct. 17, 1918. Substitute this for iv— A— 1, 2, 3.]' No. IV. A. SPECIAL LICENSE REGULATIONS GOVERNING LICENSEES FOR THE' MANUFACTUBE,. STORAGE, AND DISTRIBUTION OF MALT. Rule 1 (as amended, efCective Sept. 15, IQW).— Malting prohibited for brew- ing purposes — Other limitations. — The malster shall not malt any grain for use- in brewing beer or other cereal beverages, and shall not malt grain for any COLD-STOKAGE LEGISLATION. 605 purpose until he shall have contracted to sell the completed malt, and in the case of export sales, if any, until he has obtained an export license for the com- pleted malt from the War Trade Board. Rule 2. Gram produced in 1017 not to Be malted after July 1 1918 — (Re- pealed Sept. 15, 1918. ) Rule 3 (as amended, effective Sept. 15, 1918). — UnriKiIted cirain under control not to exceed 60 days' supply.— T:he malster shall not have on hand, in posses- sion, or under control by contract or other arrangement at any time any greater quantity of unmalted grain than shall be equivalent to his reasonably antici- pated requirements for malting during the next 60 days. [IV— Al, 2, 3, 4, 5, 6, 7. Dec. 13. 1918. Substitute tMs for IV— A— 1, 2, 3 (a), IV— A— 4, 5 (a), and IV— A— 6, 7 (a).] No IV. A. SPECIAL LICENSE REGULATIONS GOVERNING LICENSEES FOB THE MANUFACTURE, STORAGE, AND DISTRIBUTION OF MALT. Rule 1. Malting prohibited for brewing purposes; other limitations.— Re- pealed Dec. 12, said repeal to become effective Dec. 17, 1918.) Rule 2. Grain produced in 1917 not to be malted after July 1, J9iS.— Re- pealed Sept. 15, 1918.) Rule 3. Unmalted grain under control not to exceed 60 days' supply. — (Re- pealed Dec. 12, said repeal'to become effective Dec. 17, 1918.) Rule 4. Contraots shall require shipment in 120 days. — (Repealed Dec. 12, said repeal to become effective Dec. 17, 1918.) Rule 5. Malt not to be delivered without permit e.vccpt to specified classes.. — (Repealed Dec. 12, said repeal to become elfective Dec. 17, 1918.) Rule 6. No wheat to be malted. — (Repealed Dec. 12, said repeal to ))ecome effective Dec. 17, 1918.) Rule 7. No grain to he purchased for malting before October 1, 1918.— (Repealed Sept. 15, 1918.) [IV— A — 4, 5.] Rule 4. Contracts shall require shipment in 120 days. — No licensee .^ihal) make any contract for the sale of malt except such contracts as require ship ment or delivery vcithin 120 days after the making of such contracts : Provided, That this rule shall not apply to contracts with the Federal GovernmcKt or with the Government of any nation at war with Germany or Austria or their allies. This rule shall not alfect the validity of any contract enforceable at law made in good faith prior to February 15, 1918. Rule 5. Malt not to be delivered icithout permit except to specified classes. — No malster, malt dealer, or other licensee shall sell or deliver any malt, without the written permission of the United States Food Administrator, except to persons — (a) Engaged in the manufacture of malt liquor and holdiu'j; license for such purpose issued by the Commissioner of Internal Revenue under the President's, proclamation of December 10, 1917. (6) Registered distillers. (c) Manufacturers of yeast. id) Manufacturers of malt extra or malt flour. (e) Manufactu-ei-s of vinegar. (/) Manufacturers of near beer holding a United States Food Administration liceiise. (fir) Manufactures of cereal foods. No malt shall be delivered in quantities in excess of the amount required to fill the reasonable requirements of the purchaser's business during the next 60 days, excepting that between May 1 and August 15 the amount delivered shall not exceed the reasonable requirements of the purchaser's business for use before October 15 of the current year. No sale of malt made through a broker, agent, salesman, or duly authorized representative shall be made on a Broker- age to exceed 2 cents per bushel, and no sale shall be made by any malster, broker, agent, salesman, or duly authorized representative for any quantity of malt except by signed contract. Note.— Special permits for the sale or delivery of malt to any persons, except those hereinbefore listed, may be obtained in proper cases from the United States Food Administration, Washington, D. 0. 606 COLD-STOEAGB LEGISLATION. [IV— A — i, 5 (a). Oct. 17, 1918. Substitute this for IV— A— 4, 5.] EuLE 4. Contracts shall require shipment in ISO days. — No licensee shall make any contract for the sale of malt, except such contracts as require shipment or delivery within 120 days after the making of such contracts : Provided, That this rule shall not apply to contracts with the Federal Government or with the Government of any nation at war with Germany or Austria or their allies. This rule shall not affect the validity of any contract enforceable at law made in good faith prior to February 15, 1918. Rule 5 (as amended, effective Sept. 15, 1918). Malt not to &e delivered with- out permit, except to specified classes. — No maltster, malt dealer, or other licensee shall sell or deliver any malt without the written permission of the United States Food Administrator, except to persons — (a) Engaged in the manufacture of malt liquor and holding license for such purpose issued by the Commissioner of Internal Revenue under the President's proclamation of December 10, 1917. (&) Registered distillers. (c) Manufacturers of yeast. id) Manufacturers of malt extract or malt flour. (e) Manufacturers of vinegar. if) Manufacturers of near beer holding a United States Food Administration license. {g) Manufacturers of cereal foods. No maltster, malt dealer, or other licensee shall knowingly deliver to any person a quantity of malt which will give the purchaser a supply in excess of his reasonable requirements during the next 60 days. No sale of malt made through a broker, agent, salesman, or duly authorized representative shall be made on a brokerage to exceed 2 cents per bushel, and no sale shall be made by any malster, broker, agent, salesman, or duly authorized representative for any quantity of malt, except by signed contract. Note.. — Special permits for the sale or delivery of malt to any persons, except those hereinbefore listed, may be obtained in proper cases from the United States Food Administration, Washington, D. C. [IV — A — 4, 5 — Note. Oct. 28, 1918. Insert this page after IV — A — 4, 5 (a).] In view of the small quantities of malt which will be required in the current year, the United States Food Administration upon special application and in proper cases will grant to maltsters a special permit to malt for manufacturers of cereal foods, yeast, etc., a supply of malt for their requirements up to Novem- ber 1, 1919. This permit will permit the manufactured supply to be held either at the malt house or at the purchaser's factory, provided that it is all delivered prior to October 1, 1919. [IV— A— 6, 7.] Rule 6. No irheat to Be malted. — No maltster shall manufacture any malt from wheat. Rule 7. No grain to be purchased for malting before October 1, 1918. — The licensee shall not buy any grain for malting or malt any grain before October 1, 1918, nor shall he have on hand, in his possession, or under control any grain before that date. Note. — ^This rule Is effective July 11, 1918. There Is at the present time an ample supply of malt in the United States to take care of all requirements. Before October 1, 1918, the definite requirements for the malting industry during the coming year will be ascertained, and a further notice given as to the amount of grain which may be malted. [IV— A— 6, 7 (a)! Oct. 17, 1918. Substitute this for IV— A— 6, 7.] Rule 6. No wheat to be malted. — No maltster shall manufacture any malt from wheat. Rule 7. A^p grain to be purchased for malting before October 1. 1918.— (He- pealed Sept. 15, 1918.' COLD-SXOBAGE LEGISLATION. 607 [IV— B— 1, 2.] B. SPECIAt LICENSE REGULATIONS GOVERNING MANUFACTURERS OF NEAR BEER AND FERMENTED BEVERAGES CONTAINING LESS THAN ONE-HALF OF 1 PER CENT OF ALCOHOL. Rule 1. Use of foodstuffs limited to 70 per cent of 1917 consumption. — The licensee shall not, vfithout the written consent of the United -States Food Ad- ministrator, use during the month of June, 1918, or in any succeeding quarter, In the manufacture of malt liquor, near beers, and fermented beverages more than 70 per cent of the amount of foods, fruits, food materials, and feeds which he used in such manufactures in the corresponding period in the year 1917. Note. — Under the President's proclamation of December 7, and regulations Issued thereunder, a similar restriction was imposed upon all manufacturers of malt liquor. The present regulation supplements that proclamation and in- cludes as well manufacturers of near beer and fermented beverages which do not contain malt. A brewer is permitted to use his allotment of 70 per cent of what he used last year in the manufacture of beer for the purpose of manufac- turing near beer, provided his total use of material does not exceed the 70 per cent prescribed by this rule. Persons who manufactured near beer in 1917, however, can not use their allotment for that purpose to make beer, ale, or porter in 1918. Bum; 2. Material on hand limited to 60 days' supply. — The licensee shall not, without the written permission of the United States Food Administrator, own or have in his possession, or invoiced to him, at any time an amount of food, fruits, food materials, or feeds in a quantity in excess of the reasonable require- ments of his business for use by him during the next 60 days. (Index R. 34.) [IV— B — 1, 2, 3 (a). Oct. 17, 1918. Substitute this for IV— B— 1, 2.] B. SPECIAL LICENSE REGULATIONS GOVERNING MANUFACTURERS OF NEAR BEER AND OTHER SIMILAR CEREAL BEVERAGES. Rule 1. Use of foodstuffs limited to 70 per cent of 1917 consumption. — (Re- pealed Oct. 1, 1918.) Note. — There is no limit during the months of October and November on the use of malt manufactured prior to September 1, 1918, or on the use of hops or similar bitter flavoring matter. This, however, does not modify any State laws nor any restrictions which the Fuel Administration has Imposed during these months, and you should promptly Inform yourself of any such restrictions. Rule 2. Material on hand limited to 60 days' supply. — The licensee shall not, without the written permission of the United States Food Administrator, own or have In his possession, or invoiced to him, at any time an amount of food, fruits, food materials, or feeds in a quantity in excess of the reasonable requirements of his business for use by him during the next 60 days. Rule 3. Use of malt aHd hops prohibited after December 1, 1918, and of other foodstuffs after October J, 1918. — On and after October 1, 1918, the licensee shall not use any sugar, glucose, corn, rice, corn products, or other foods, fruits, food materials, or feeds in the manufacture of near beer or other similar cereal beverages, except malt manufactured prior to September 15, 1918, and hops or similar bitter flavoring matter, and except dextrlnous or other sirups specially prepared for the manufacture of near beer and which are in the licen.see's possession or shipped to him prior to October 1, 1918 ; and on and after December 1, 1918, the licensee shall not use any foods, fruits, food materials, or feeds whatsoever in the manufacture of any such beverages. [IV— B— 1, 2, 3 (b). Dec. 13, 1918. Substitute this for IV— B— 1, 2, 3 (a).] B. SPECIAL LICENSE REGULATIONS GOVERNING MANUFACTURERS OF NEAR BEER AND OTHER SIMILAR CEREAL BEVERAGES. Rule 1. Use of foodstuffs limited to 70 per cent of 1917 consumption.— CRe- pealed Oct. 1, 1918.) Rule 2. Material on hand limited to &0 days' supply. — (Repealed Dec. 12, said repeal to become effective Dec. 17, 1918. ) Rule 3. Use of malt and hops prohibited after December 1, 1918, and of other foodstuffs after October 1, J 9 ?S.— (Repealed Dec. 12, said repeal to become «ffectiveDec. 17, 1918.) 608 COLD-STOKAGE LEGISLATION. Exhibit N. [V— Title.] UNITED STATES FOOD ADMINISTRATION SPECIAL LICENSE REGU- LATIONS NO. V— A. SPECIAL REGULATIONS GOVERNING DEALERS IN ROUGH RICE; B. SPECIAL REGULATIONS GOVERNING RICE MILLERS AND MANUFACTURERS OF RICE FLOUR. Effective July 29, 1918. This pamphlet contains all special regulations applying to the above licensees issued up to July 29, 1918. Such licensees are also subject to general regula- tions No. I, dated May 3, 1918, which, together with this pamphlet, supersede, as to the above licensees, all regulations of Series B. [V— A— 1, 2, 3, 4, 5, 6.] No. V. A. SPECIAL BEGULATIONS GOVERNING DEALERS IN ROUGH RICE. Rule 1. Maximum margin over cost fixed. — The licensee shall not sell rough rice, except for seed, at an advance over the actual purchase price of the par- ticular rice sold in excess of 1 per cent of such purchase price plus the storage •charge, insurance, and interest on the investment at the rate of 6 per cent per annum. Rule 2. Commission merchants' charges limited. — The licensee in receiving rough rice on consignment shall not charge a commission of more than 1 per cent on any sale of such rice to any person, except for seed purposes. Rule 3. Resales prohibited. — The licensee shall not sell rough rice, except for seed, to any person other than a rice miller. Rule. 4. Amount of rough rice under control limited to 60 days' supply. — The licensee shall not keep on hand or have in possession or under control by con- tract or other arrangement any rough rice, except for seed purposes, in a quan- tity in excess of his reasonable requirements during the period of 60 days. Rule 5. Contracts must provide for shipment within 60 days. — The licensee shall not make any contract for rough rice for delivery more than 60 day's' after the making of the contract, except for seed. Rule 6. Minimum, carload shipments. — ^All carload shipments of rough rice shall be in carloads of not less than 60,000 pounds unless a different minimum is authorized by the special written permission of the United States Food Ad- ministrator : Provided, however, That when cars of lower carrying capacity are used the maximum load which the car will carry may be used without such permission. IV— A— 1, 2, 3, 4, 5, 6 (a). Nov. 1, 1918. Substitute this for V— A— 1, 2, 3, 4, 5, 6.] No. V. A. SPECIAL REGULATIONS GOVERNING DEALERS IN ROUGH RICE. Rule 1. Maximum margin over- cost fixed. — The licensee shall not sell rough rice, except for seed, at an advance over the actual purchase price of the par- ticular rice sold in excess of 1 per cent of such purchase price plus the storage charge, insurance, and interest on the investment at the rate of 6 per cent per annum. Rule 2 (as amended Oct. 31, 1918). Brokers' and commission merchants' charges limited. — The licensee in acting as a broker in rough rice, or in receiv- ing rought rice on consignment, shall not charge a commission of more than 1 per cent for selling such rice to any person except for seed purposes. If the licensee performs additional services, these shall be included as .separate items on the account sales, and a separate charge shall be made there- for, in no case to exceed an additional IJ per cent. Rule 8, Resales prohibited. — The licensee shall not sell rough rice, except for seed, to any person other than a rice miller, Rule 4. Amount of rough rice under control limited to 60 days' supply. — The licensee shall not keep on hand or have in possession or under control by con- GOLD-STORAGE LEGISLATION. 609 tract or other arrangement any rough , rice, except for seed purposes, in a quantity in excess of his reasonable requirements during the period of 60 days. Rule 5. Contracts must provide for shipment within 60 days. — The licensee shall not make any contract for rough rice for delivery more than 60 days after the making of the contract, except for seed. Rule 6. Minimum, carload shipments. — All carload shipments of rough rice ■shall be in carloads of not less than 60,000 pounds unless a different minimum is authorized by the special written permission of the United States Food A.A-, tninistrator : Provided, however, That, when cars of lower carrying capacity are •used the maximum load which the car will carry may be used without such permission. '[V— A— 1, 2, 3, 4, 5, 6 (b). Dec. 6, 1918. Substitute for V— A— 1, 2, 3, 4, 5, 6 (a).] No. V. A. SPECIAL REGULATIONS GOVERNING DEALERS IN ROUGH RICE. Rule 1. Maayinmm margin over cost fixed. — The licensee shall not sell rough fice, except for seed, at an advance over the actual purchase price of the par- ticular rice sold in excess of 1 per cent of such purchase price plus the storage Charge, insurance, and interest on the investment at the rate of 6 per cent per annum. Rule 2 (as amended Oct. 31, 1918). Brokers' and comtmission merchants' ■charges limited. — ^The licensee in acting as a broker in rough rice, or in receiv- ing rough rice on consignment, shall not charge a commission of more than 1 per cent for selling such rice to any person except for seed purposes. If the licensee performs additional services, these shall be included as sep- arate items on the account sales, and a separate charge shall be inade therefor, in no case to exceed an additonal IJ per cent. Rule 3. Resales prohiMted. — The licensee shall not sell rough rice, except for seed, to any person other than a rice miller. Rule 4. Amount of rough rice under control limited to 60 days' supply. — The licensee shall not keep on hand or have in possession or under control by cout tract or other arrangement any rough rice, except for seed purposes, in a ■quantity in excess of his reasonable requirements during the period of 60 days. Rule 5. Contracts must provide for shipment within 60 days. — The licensee shall not make any contracj-for rough rice for delivery more than 60 days after the making of the contract, except for seed. Rule 6. Minimum carload sMpments. — (Repealed Dec. 5, said repeal to become effective Dec. 10, 1918.) iTT— A— 1, 2, 3, 4, 5, 6 (c). Dec. 31, 1918. Substitute this for V— A— 1, 2, 3, 4, 5, 6(b).] No. V. A. SPECIAL REGULATIONS GOVERNING DEALERS IN ROUGH EICE. Rule 1. Maximum margin over cost fixed.— The licensee shall not sell rough rice, except for seed, at an advance over the actua:i purchase price of the par- ticular rice sold in excess of 1 per cent of such purchase price plus the storage charge, insurance, and interest on the investment at the rate of 6 per cent pei annum. . . , ^ , Rule 2 (as amended Oct. 31, 1918). Brokers and commission merchants charges limited.— The licensee in acting as a broker m rough rice, or m re- ceiving rough rice on consignment, shall not charge a commission of more than 1 per cent for selling such rice to any person except fo' ^f '^.P"^P°f®^- „._. If the licensee performs additional services, these shall bemcluded as sepa- rate items on the account sales, and a separate charge shall be made therefor, in no case to exceed an additional 14 per cent. PTrrent for Rule 3. Resales proMMted.— The licensee shall not sell rough rice, except tor seed, to any person other than a rice miller. ^unnlu — Rule 4. Amount of rough rice under control limited \oJ0 days supply. (Repealed Dec. 31, said repeal to become effective Jan. b, ]:^f-'±,y, . . ^^^ Rule 5. Contracts must provide for shipment mthm 60 daj/s— (Repealed uec. SI, said repeal to become efCeetiTe Jan. 6, 1919.) Rule 6. Minimum carload shipments.— {nepe&\e& Dec. 5, said repeal lo oe- come efEective Dec. 10, 1918.) f 610 COLD-STORAGE LEGISLATION. [V— B— 1, 2, 3, 4.] B. SPECIAL EEGULATIONS GOVEBNING BICE MILLEES AND MANUFACTUKEKS OP BICE FLOUB. RuiE 1. Amount of rough rice under control limited to 60 days' supply. — No licensee operating any rice mill shall keep on hand or have in possession or under control at any time any greater quantity of rough rice than shall be «quivalent to the output of such rice mill during the period of 60 days. Rule 2. Contract must provide for shipment mthvn SO days. — No licensee shall make or have outstanding at any time any contract for the sale of clean rice for shipment more than 30 days after the making of such contract: Pro- vided, however, That this rule shall not apply to contracts with the Federal, State, county, or municipal Governments, or to contracts for the sale of brewer's rice, or to contracts for the exporting of rice to foreign countries. Rule 3. Clean rice not to 6e sold at more than reasonable advance over oost. — ^Any licensee engaged in the business of milling rice shall sell cleaned rice at not more than a reasonable advance over the cost of such rice without regard to the market or replacement value at the time of sale. Note. — Brokers' commissions. Brokers will be considered by the Food Admin- istration as making an unreasonable and exorbitant charge for negotiating the sale of rice or rice products in any case where the brokerage exceeds (a) Seven <;ents per hundred pounds on carload orders, except brewer's rice, sold in the following cities : New York ; San Francisco ; Charleston ; Savannah ; Jackson- ville, Fla. ; St. Louis ; Chicago ; Kansas City, Mo. ; Galveston, Tex. ; and Houston, Tex. ; ( 6 ) 6 cents per hundred pounds on any quantity of rice, except brewer's rice, sold in New Orleans; (c) 8 cents per hundred pounds for carload orders, «xcept brewer's rice, sold at any other point except those designated in (a) and (6) ; ((J) 6 cents per hundred pounds on brewer's rice sold at any point and in any quantity ; (e) 25 cents per ton on rice bran or rice polish at any point and in any quantity ; if) 6 cents per hundred pounds on rice flour sold at any point and in any quantity. Rule 4. Minimum, carload shipments. — ^All carload shipments of rice or rice flour shall be in car lots of not less than 60,000 pounds, unless a different minimum is authorized by^ special written permission of the United States Food Administrator : Provided, however, That when cars of lower carrying capacity are used, the maximum load which the car will carry may be used without such permission. ' [V— B— 1, 2, 3, 4 (a). Nov. 26, 1918. Substitute this for V— B— 1, z, d, i.J B. special REGULATIONS GOVERNING BICE MILLEES AND MANUFACTUBEBS OF BICE FLOUR. Rule 1. Amount of rough rice under control limited to 60 days' supply. — ^No licensee operating any rice mill shall keep on hand or have in possession or under control at any time. any greater quantity of rOugh rice than shall be ■equivalent to the output of such rice mill during the period of 60 days. Rule 2 (as amended Nov. 26, 1918). Contract must provide for shipment within 60 days. — No licensee shall make or have outstanding at any time any contract for the sale of clean rice for shipment more than 60 days after the making of such contract : Provided, however, That this rule shall not apply to contracts with the Federal, State, county, or municipal Governments, or to contracts for the sale of brewer's rice, or to contracts for the exporting of rice to foreign countries. Rule 3. Clean rice not to 6e sold at more than reasonable advance over cost. — Any licensee engaged in the business of milling rice shall sell cleaned rice at not more than a reasonable advance over the cost of such rice without regard to the market or replacement value at the time of sale. Note. — Brokers' commissions. — Brokers will be considered by the Food Ad- ministration as making an unreasonable and exorbitant charge for negotiating the sale of rice or rice products In any case where the brokerage exceeds— (a) Seven cents per hundred pounds on carload orders, except brewer's rice, sold in the following cities : New York ; San Francisco ; Charleston ; Savannah ; Jacksonville, Fla ; St. Louis ; Chicago ; Kansas City, Mo. ; Galveston, Tex. ; and Houston, Tex. ; ( & ) 6 cents per hundred pounds on any quantity of rice, except brewer's rice, sold in New Orleans ; (c) 8 cents per hundred pounds for carload orders, except brewer's rice, sold at any other point except those designated in COLD-STORAGE LEGISLATION. 611 (o) and (6) ; (d) 6 cents per hundred pounds on brewer's rice sold at any point and in any quantity; (e) 25 cents per ton on rice bran or rice polish at any point and In any quantity ; (f) Q cents per hundred pounds on rice flour sold at any point and In any quantity. •Exile 4. Minimum, carload shiiments.—AW carload shipments of rice or rice flour shall be in car lots of not less than 60,000 pounds, unless a different mini- mum is authorized by special written permission of the United States Food Administrator : Provided, however, That when cars of lower carrying capacity are used, the maximum load which the car will carry may be used without such I)ermission. ^^ l^—B — 1,2, 3, 4(b). Dec. 6, 1918. Substitute this for V—B—1, 2, 3, 4 (a).] B. SPECIAL BEGULATIONS GOVERNING EICE MILLEBS AND MANUFACTURERS OE BICE FLOUR. EuLE 1. Amount of rough rice under control limited to 60 days' supply. — No licensee operating any rice mill shall keep on hand or have in possession or ■under control at any time any greater quantity of rough rice than shall be equivalent to the output of such rice mill during the period of 60 days. EuLE 2 (as amended Nov. 26, 1918). Contract must provide for shipment within 60 days. — ^No licensee shall make or have outstanding at any time any contract for the sale of clean rice for shipment more than 60 days after the making of such contract : Provided, however. That this rule shall not apply to contracts with the Federal, State, county, or municipal Governments, or to con- tracts for the sale of brewer's rice, or to contracts for the exporting of rice to foreign countries. EuLE 3. Clean rice not to be sold at more than reasonable advance over cost. — Any licensee engaged In the business of milling rice shall sell cleaned rice at not more than a reasonable advance over the cost of such rice without regard to the market or replacement value at the time of sale. Note. — Brokers' commissions : Brokers will be considered by the Food Ad- ministration as making an unreasonable and exorbitant charge for negotiating the sale of rice or rice products in any case where the brokerage exceeds (a), 7 cents per hundred pounds on carload brders, except brewer's rice, sold in the following cities : New York ; San Francisco ; Charleston ; Savannah ; Jackson- ville, Fla, ; St. Louis ; Chicago ; Kansas City, Mo. ; Galveston, Tex. ; and Houston, Tex.; (6) 6 cents per hundred pounds on any quantity of rice, except brewer's rice, sold in New Orleans; (c) 8 cents per hundred pounds for carload orders, except brewer's rice, sold at any other point except those designated in (ft) and (6) ; (d) 6 cents per hundred pounds on brewer's rice sold at any point and in any quantity; (e) 25 cents per ton on rice bran or rice polish at any point and in any quantity; (f) 6 cents per hundred pounds on rice flour sold at any point and in any quantity. EuLE 4. Minimum carload shipments. — (Repealed Dec. 5, said repeal to become effective Dec. 10, 1918.) [V_B— 1, 2, 3, 4 (c). Dec. 31, 1918. Substitute this for V—B—1, 2, 3, 4 (b).] B. SPECIAL REGULATIONS GOVERNING RICE MILLEBS AND MANUFACTUEEES OF RICE FLOim. EuLE 1. Amount of rough rice under control limited to 60 days' supply. — (Ee- pealed Dec. 31, said repeal to become effective Jan. 6, 1919.) Rule 2. Contract must provide for shipment within 60 days. — (Eepealed Dec. 31, said repeal to become effective Jan. 6, 1919.) EuLE 3. Clean rice not to he sold at more than reasonaUe advance over cost.— Any licensee engaged in the business of milling rice shaU sell cleaned rice at not more than a reasonable advance over the cost of such rice without regard to the market or replacement value at the time of sale. Note. — Brokers' commissions: Brokers' will be considered by the Food Ad- ministration as making an unreasonable and exorbitant charge for negotiating the sale of rice or rice products in any case where the brokerage exceeds (a) 7 cents per hundred pounds on carload orders, except brewer's rice, sold in the fo'lowing cities- New York; San Francisco; Charleston; Savannah; Jackson- ville, Fla. ; St. Louis ; Chicago ; Kansas City, Mo. ; Galveston, Tex. ; and Hous- ton, Tex.; (&) 6 cents per hundred pounds on any quantity of rice, except brewer's rice, sold in New Orleans; (c) 8 cents per hundred pounds for carload 612 COLD-STOEAGE LEGISLATION. orders, except brewer's rice, sold at any other point, except tliose designated in (o) and (6) ; (d) 6 cents per hundred pounds on brewer's rice sold at any point and in any quantity; (e) 25 cents per ton on rice bran or rice polish at any point and in any quantity; if) 6 cents per hundred pounds on rice flour sold at, any point and in any quantity. Rule 4. Minimum carload shipments. — Repealed Dec. 5, said repeal to become effective Dec. 10, 1918.) [V— B— 5, 6, 7, 8.1 Rule 5. Rice flour not to he made from whole rice. — The licensee shall not- manufacture rice flour from whole rice. Rule 6. Specifications for rice flour. — Rice flour shall be milled from clean sound rice and shall be of a texture fine enough so that 85 per cent shall sift through No. 9 XX bolting silk and the balance through No. 8 XX silk, shall be of uniform color, and shall not contain more than 13i per cent moisture and IJ per cent fat by ether extraction. Rule 7. Maximum margins governing manufacturers of rice flour. — The licensee shall not sell rice flour at an advance of more than 75 cents per 100 pounds over the purchase price of brewer's rice or screenings delivered at the mill. Rule 8. Vwiform contract prescribed. — The licensee shall not sell any cleaned rice or rice flour in quantities of 25 pockets or more except by signed contract In the form prescribed below. The licensee shall not sell rice or rice flour in quantities less than 25 pockets, unless stipulating that the terms of the con- tract prescribed below shall prevail. [V— B— 5, 6, 7, 8 (a). Oct. 17, 1918. Substitute this for V— B — 5, 6, 7, 8.] Rule 5 (as amended Oct. 17, 1918). Bice flour not to 6e made from whole rice or from, river or fancy screenings. — The manufacturer shall not manufac- ture rice flour from whole rice or from river or fancy screenings. Rule 6. Specifications of rice flour. — Rice flour shall be milled from clean sound rice and shall be of a texture fine enough so that 85 per cent shall sift through No. 9 XX bolting silk and the balance through No. 8 XX silk, shall be of uniform color, and shall not contain more that 13J per cent moisture and li per cent fat by ether extraction. Rule 7. Maximum margins governing manufacturers of rice flour.— The licensee shall not sell rice flour at an advance of more than 75 cents per 100 pounds over the purchase price of brewer's rice or screenings delivered at the mill. Rule 8. Uniform contract prescribed. — The licensee shall not sell any cleaned rice or rice flour in quantities of 25 pockets or more except by signed contract in the form prescribed below. The licensee shall not sell rice or rice flour in quantities less than 25 pockets, unless stipulating that the terms of the con- tract prescribed below shall prevail. [V — B— 5', 6, 7, 8, 9. Not. 1, 1918. Substitute this for V — B— 5, 6, 7, 8 (a).] Rule 5 (as amended Oct. 17, 1918)^ Bice flour not to be made from whole rice or from river or fancy screenings. — The manufacturer shall not manufac- ture rice flour from whole rice or from river or fancy screenings. Rule 6. Specifications for rice flour. — Rice flour shall be milled from clean, sound rice and shall be of a texture flne enough so that 85 per cent shall sift through No. 9 XX bolting silk and the balance through No. 8 XX silk, shall be of uniform color, and shall not contain more than 13i per cent moisture and IJ per cent fat by ether extraction. Rule 7. Maximum margins governing manufacturers of rice flour. — The licensee shall not sell rice flour at an advance of more than 75 cents per 100 pounds over the purchase price of brewer's rice or screenings delivered at the mill. Rule 8. Vniform contract prescribed. — The licensee shall not sell any cleaned rice or rice flour in quantities of 25 pockets or more except by signed contract in the form prescribed or more except by signed contract in the form prescribed below. The licensee shall not sell rice or rice flour in quantities less than 25 pockets, unless stipulating that the terms of the contract prescribed below shall prevail. Rule 9 (new, effective Oct. 31, 1918). — Vniform packages prescribed. — The licensee shall not sell clean rice, for domestic use in the United States, except COLD-STOEAGE LEGISLATION-. 613, i in packages containing 1 pound, 3 pounds, 10 pounds, or 100 pounds, net weight •without special permission in writing from the United States Food Adminis^ •tration. [V— B— 5, 6, 7, 8, 9 (a). Dec. 4, 1918. Substitute this for V— B— 5, 6, 7, 8, 9.] Rule 5 (as amended Oct. 17, 1918).— Bice flour not to Be niude from whole rice or from river or fancy screenings.— The manufacturer shall not manu- facture rice flour from whole rice or from river or' fancy screenings. Rule 6. Specifications for rice flour.— Rice flour shall be milled from clean, .sound rice and shall be of a texture fine enough so that 85 per cent shall sift through No. 9 XX bolting silk and the balance through No. 8 XX silk, shall be ■of uniform color, and shall not contain more than 13i per cent moisture and 14 per cent fat by ether extraction. Rule 7. Maximum margins governing manufacturers of rice flour. — The licensee shall not sell rice flour at an advance of more than 75 cents per 100 pounds over the purchase price of brewer's rice or screenings delivered at the" mill. Rule 8. Uniform contract prescribed. — The licensee shall not sell any cleaned rice or rice flour in quantities of 25 pockets or more except by signed contract in the form prescribed below. The licensee shall not sell rice or rice flour in quantities less than 25 pockets, unless stipulating that the terms of the con- tract prescribed below shall prevail. Rule 9. Uniform packages prescribed. — (Repealed Dec. 3, 1918.) [V— B — 5, 6, 7, 8, 9 (a). Dec. 4, 1918. Substitute this for V— B— 5, 6, 7, 8, 9.] Rule 5 (as amended October 17, 1918). Rice flour not to be made from whole rice or from- river or fancy screenings.— The manufacturer shall not manufac- ture rice flour from whole rice or from river or fancy screenings. Rule 6. Specifications for rice flour. — Rice flour shall be milled from clean sound rice and shall be of n texture fine enough so that 85 per cent shall sift through No. 9 XX bolting silk and the balance through No. 8 XX silk, shall be •of uniform color, and shall contain more than 13J per cent moisture and IJ per cent fat by ether extraction. Rule 7. Maximum margins governing manufacturers of rice flour. — The licen-. see shall not sell rice flour at an advance of more than 75 cents per 100 pounds over the purchase price of brewer's rice or screenings delivered at the mill. Rule 8. Uniform contract prescribed. — The licensee shall not sell any cleaned rice or rice flour in quantities of 25 pockets or more except by signed contract in the form prescribed below. The licensee shall not sell rice or rice flour in ■quantities less than 25 pockets, unless stipulating that the terms of the contract prescribed below shall prevail. Rule 9. Uniform packages prescribed. — (Repealed Dec. 3, 1918.) [V— B— 5, 6, 7, 8, 9 (b). Dec. 31, 1918. Substitute for V— B— 5, 6, 7, 8, 9 (a).] Rule 5. Rice flour not to be made from tohole rice or from river or fancy ■screenings. — (Repealed Dec. 31, said repeal to become efCective Jan. 6, 1919.) Rule 6. Specifications for rice flour. — Rice flour shall be milled from clean sound rice and shall be of a texture fine enough so that 85 per cent shall sift through No. 9 XX bolting silk and the balance through No. 8 XX silk, shall be of uniform color, and shall not contain more than 13J per cent moisture and 1-J per cent fat by ether extraction. Rule 7. Ma.Hmmn margins governing mamifacliircrs of rice flour. — The licensee shall not .sell rice flour at an advance of more than 75 cents per 100 pounds over the purchase price of brewer's rice or screenings delivered at the mill. Rule 8. Uniform contract prescribed.— The licensee shall not sell any cleaned rice or rice flour in quantities of 25 pockets or more except by signed contract in the form prescribed below. The licensee shall not sell rice or rice flour in quantities less than 25 pockets, unless stipulating that the terms of the contract prescribed below shall prevail. Rile 9. Uniform packages prr.s'fri!;ed.— (Repealed Dec, 3, 1918.) '614 COLD-STOEAGE LEGISLATION. Contract No. -, of ■ [V—B— 8— Continued (1).] FOEM OF CONTEACT PRESCEIBED IN EULK 8. Dated -, hereby sells and agrees to deliver and 191- hereby purchases and agrees to pay for the following-described merchandise on the terms and conditions specifies below: No. packages. Kind. Brand. Price, sacks included. Delivery f. o. b. at be . Routing Terms : Draft, bill of lading attached. Time of shipment Destination Shipment periods to seller's order notify buyer — net cash Discount for cash within 10 days of draft whether Bank of . The buyer requests seller to take out insurance as follows . The buyer upon arrival and inspection, goods arrived or not and seller agree upon arbitration in the following manner — [V—B— 8 — Continued (2).] TEEMS AND CONDITIONS. 1. Food Administration regulations. — It is understood and agreed that the buyer and seller shall conform to all regulations promulgated by the United States Food Administration. 2. Examination and approval. — The buyer shall have no right of claim, nor Shall he be entitled to arbitration unless claim is made or arbitration demanded within three full business days after arrival. 3. Responsibility before and after shipment. — All sales shall be made f. o. b. shipping point. The seller agrees to deliver the goods free on board cars or steamer in good shipping condition. All freight charges, demurrage, and expenses, or risks that may occur thereafter, are for the account of the buyer. Any advance in freight rates over which the seller has no control from time of signing this contract until date of shipment is for the account of the buyer. No liability shall arise hereunder against the shipper for failure to make deliveries due to strikes, fires, loss of merchandise in transit, embargoes on freight, post- ponement in sailing of steamers, car shortage, acts of God, war, or for any cir- cumstances or accidents beyond the control of the shipper. Shipper guarantees full net weight at shipping point, but no claim for short weight shall be made where shortage does not exceed one-half of 1 per cent. Seller shall not be responsible for delay in delivery due to failure of carriers to furnish equipment, or to any other causes beyond its control. All contracts made with public car- riers, of whatsoever nature, for the shipment of the above goods, are made sub- ject to the terms of such carrier's bill of lading. Seller shall have option of making delivery f. o. b. another point than designated, seller absorbing any difference in rates either way. 4. Insurance. — The seller shall have the option to insure the merchandise sold against all war risks without consulting buyer, but at buyer's expense; and buyer agrees to pay said expense in addition to and at the time of payment of the contract price. The seller is authorized, in case merchandise is to move by water, to take out marine insurance at current rates, and buyer agrees to pay said expense in addition to and at the time of payment of contract price. The seller agrees to take out any insurance requested specifically in this con- tract by the buyer at the buyer's expense, and the buyer agrees to pay said expense in addition to and at the time of payment of the contract price. 5. Arbitration. — All disagreements arising under this contract shall be sub- mitted to arbitration in the following manner : The parties may agree in the contract upon arbitration by any established arbitrating committee, or if no COLD-STORAGE LEGISLATION. 615 established committee Is agreed upon, arbitration shall be by a committee named by the Federal food admmistrator of the State wherein the point of destination IS iOCu.t6Q> In case of arbitration where the difference in grade does not exceed one-fourth of 1 cent per pound, the buyer shall accept the goods at the allowance. If, how- ever, the difference exceeds one-fourth of 1 cent per pound, the buyer shall have the option to accept the goods at the allowance made by the arbitration committee, or require that another shipment be made within 10 days from date of notice to the seller, which notice must be given 24 hours after the decision is made. All expenses of arbitration shall be borne by the party against whom the award is made, and, further, this contract between the buyer and the seller is to be the basis upon which each and every arbitration is settled. 6. Deliveries.— It is agreed that the above order shall be shipped or delivered as specified within 30 calendar days, dated from time when contract is accepted. 7. Contract not subject to change. — It is agreed that no agent or representa- tive has authority to modify the terms of his contract, and there shall be no extension of time of shipment under this contract, except as herein stated. 8. Buyers' nonfulfillment of contract. — In case the merchandise is to be de- livered or to be paid for in installments, the failure of the buyer to pay the first Installment of the purchase price promptly when due shall give the right to the seller, at his option, to cancel the contract. [V—B— 8— Continued— (2) (a). Nov. 26, 1918. Substitute this for V—B— 8— Con- tinued (2) ; paragraph 6 has been amended to conform to amendment of this date to rule V—B— 2.] TEEMS AND CONDITIONS. 1. Food Administration regulations. — It is understood and agijeed that the buyer and seller shall conform to all regulations promulgated by the United States Food Adminstration. 2. Examination and approval. — The buyer shall have no right of claim, nor shall he be entitled to arbitration unless claim is made or arbitration demanded within three full business days after arrival. 3. Responsibility before and after shipment. — ^All sales shall be made f. o. b. shipping point. The seller agrees to deliver the goods free on board cars or steamer in good shipping condition. All freight charges, demurrage, and ex- penses, or risks that may occur thereafter, are for the account of the buyer. Any advance in freight rates over which the seller has no control from time of signing this contract until date of shipment is for the account of the buyer. No liability shall arise hereunder against the shipper for failure to make de- liveries due to strikes, fires, loss of merchandise in transit, embargoes on freight, postponement in sailing of steamers, car shortage, acts of God, war, or for any circumstances or accidents beyond the control of the shipper. Shipper guarantees full net weight at shipping point, but no claim for short weight shall be made where shortage does not exceed one-half of 1 per cent. Seller shall not be responsible for delay in delivery due to failure of carriers to fur- nish equipment or to any other cause beyond its control. All contracts made with public carriers, of whatsoever nature, for the shipment of the above goods are made subject to the terms of such carrier's bill of lading. Seller shall have option of making delivery f. o. b. another point than designated, seller absorbing any difference in rates either way. 4. Insurance. — The seller shall have the option to insure the merchandise sold against all war risks without consulting buyer, but at buyer's expense; and buyer agrees to pay said expense in addition to and at the time of payment of the contract price. The seller is authorized, in case merchandise is to move by water, to take out marine insurance at current rates, and buyer agrees to pay said expense in addition to and at the time of payment of contract price. The seller agrees to take out any insurance requested specifically in this con- tract by the buyer at the buyer's expense, and the buyer agrees to pay said expense in addition to and at the time of payment of the contract price. 5. Arbitration. — All disagreements arising under this contract shall be sub- mitted to arbitration in the following manner: The parties may agree in the contract upon arbitration by any established arbitrating committee, or if no established committee is agreed upon, arbitration shall be by a committee named by the Federal food administrator of the State wherein the point of destination is located. , In case of arbitration where the difference in grade does not exceed one- fourth of 1 cent per pound, the buyer shall accept the goods at the allowance. 616 COLD-STORAGE LEGISLATION. If, however, the difference exceeds one-fourth of 1 cent per pound, the buyer shall have the option to accept the goods at the allovcance made by the arbitra- tion committee or require that another shipment be made vclthin 10 days from date of notice to the seller, which notice must be given 24 hours after the deci- sion is made. All expenses of arbitration shall be borne by the party against whom the award is made, and, further, this contract between the buyer and the seller is to be the basis upon which each and every arbitration is settled. 6. Deliveries. — It is agreed that the above order shall be shipped or delivered as specified within 60 calendar days, dated from time contract is accepted. 7. Contract not subject to change.-^lt is agreed that no agent or representa- tive has authority to modify the terms of this contract, and there shall be no extension of time of shipment under this contract except as herein stated. 8. Buyers' nonfulfillment of contract. — In case the merchandise is to be de- livered or to be paid for in installments, the failure of the buyer to pay the first installment of the purchase price promptly when due shall give the right to the seller, at his option, to cancel the contract. [V — B — 8 — continued' (2) (b). Dec. 31, 1918. Substitute tliis page for page V — B— 8— continued (2) (a) former paragraph 6 has been stricken out in accordance with the- repeal of rule V — B — 2.] TERMS AND CONDITIONS. 1. Food Administration regulations. — It is understood and agreed that the buyer and seller shall conform to all regulations promulgated by the United States Food Administration. 2. Examination and approval. — The buyer shall have no right of claim, nor shall he be entitled to arbitration unless claim is made for arbitration demanded within three full business days after arrival. 3. Responsibility before and after shipment. — All sales shall be made f. o. b. shipping point. The seller agrees to deliver the goods free on board cars or steamer in good shipping condition. All freight charges, demurrage, and ex- penses, or risks that may occur thereafter are for the account of the buyer. Any advance in freight rates over which the seller has no control from time of signing this contract until date of shipment is for the account of the buyer. No liability shall arise hereunder against the shipper for failure to make deliveries due to strikes, fires, loss of merchandise in transit, embargoes on freight, post- ponement in sailing of steamers, car shortage, acts of God, war, or for any cir- cumstances or accidents beyond the control of the shipper. Shipper guarantees full net weight at shipping point, but no claim for short weight shall be made where shortage does not exceed one-half of 1 per cent. Seller shall not be re- sponsible for delay in delivery due to failure of carriers to furnish equipment or to any other causes beyond its control. All contracts made with public car- riers of whatsoever nature for the shipment of the above goods are made subject to the terms of such carrier's bill of lading. Seller shall have option of making- delivery f. o. b. another point than designated, seller absorbing any difference in rates either way. 4. Insurance. — The seller shall have the option to insure the merchandise sold against all war risks without consulting buyer, but at buyer's expense r and buyer agrees to pay said expense in addition to and at the time of payment of the contract price. The seller is authorized, in case merchandise is to move by water, to take out marine insurance at current rates, and buyer agrees to pay said expense in addition to and at the time of payment of contract price. The seller agrees to take out any insurance requested specifically in this con- tract by the buyer at the buyer's expense, and the buyer agrees to pay said expense in addition to and at the time of payment of the contract price. 5. Arbitration. — All disagreements arising under this contract shall be sub- mitted to arbitration in the following maner: The parties may agree in the contract upon arbitration by any established arbitrating committee, or if no- established committee is agreed upon, arbitration shall be by a committee named by the Federal food administrator of the State wherein the point of destina- tion is located. In case of arbitration where the difference in grade does not exceed one- fourth of 1 cent per pound, the buyer shall accept the goods at the allowance. If, however, the difference exceeds one-fourth of 1 cent per pound, the buyer shall have the option to accept the goods at the allowance made by the arbitra- tion committee, or require that another shipment be made within 10 days from date of notice to the seller, which notice must be given 24 hours after ttie deei'- COLD-STOKAGE LEGISLATION. 617 sion is made. All expenses of arbitration shall be borne by the party against whom the award is made, and further, this contract between the buyer and the seller IS to be the basis upon which each and every arbitration is settled 6. Contract not subject to change— It is agreed that no agent or representa- tive has authority to modify the terms of this contract, and there shall be no extension of time of shipment under this contract, except as herein stated 7. Buyers' nonfulfillment of contract.— In case the merchandise is to be de livered or to be paid for in installments, the failure of the buyer to cav the first installment of the purchase price promptly when due, shall give the right to the seller, at his option, to cancel the contract. [V — B— 8 continued (3).] This contract is made in triplicate, one copy to be retained by the buyer one copy to be retained by the seller's agent, if any, and the other copy to be retained by the seller. , Seller. By , Buyer. By Accepted : Exhibit O. [VI— Title.] UNITED STATES FOOD ADMINISTRATION— SPECIAL LICENSE REGU- LATIONS NO. VI— MANUFACTURERS AND REFINERS OF SUGAR. Effective June 15, I5l8. This pamphlet contains all special regulations issued up to June 1, 1918, applying to manufacturers of cane and beet sugar. Such licensees are also subject to the general license regulations (No. 1), dated May 3, 1918, issued in a separate pamphlet. All regulations of series B are superseded as to such licensees on June 15, 1918. [VI— A— 1, 2, 3.] Speciai License Regulations No. 6. A. special regulations applying to all manufactukeks and befineks of cane SU6AE AND BEET SUGAE. Rule 1. Minimum weight of carload shipments. — All carload shipments of sugar shall be made in car lots of not less than 60,000 pounds each, unless a difterent minimum is authorized by special written permission of the United States food Administrator : Provided, however; That cars of lower carrying capacity than 60,000 pounds may be used without such permission if loaded to their maximum capacity. Rule 2. Contracts shall provide for shipment within SO days. — The manu- facturer shall not make any contracts for the sale of sugar, except such as require shipment within 30 days, the specifications thereof to be given within 10 days from the date of the making of such contract, excepting contracts with the Federal, State, county, and municipal government, and for export. Rule 3. Prices shall conform to price list furnished. — The manufacturer shall furnish to the United States Food Administrator, Washington, D. C, and deliver to the trade a price list showing his selling price and all selling terms and differentials in force. After such price list or any subsequent price list is issued the manufacturer shall make no sales of sugar, except at the price, differentials, and terms shown in the price list then in force, until he has mailed to the United States States Food Administrator a new price list showing any change made in said price, differentials, or terms, and has received the written approval of the United States Food Administrator to any change in differentials and to any addition to the list of new types of sugar or styles of packages. 618 COLD-STORAGE LEGISLATION. Note. — The issuance of price lists by manufacturers of beet sugar will not be necessary until August 1, 1918, and after that date it will be dispensed with In cases in which the manufacturer shall have entered into a proposed voluntary agreement with the United States Food Administrator prescribing other methods, of supplying such information. [VI— A— 1, 2, 3 (a). Dec. 6, 1918. Substitute this for VI— A— 1, 2, 3.] . Speciai License Regulations No. 4. A. SPECIAL regulations APPLYING TO ALL MANUFACTURERS AND REFINERS OF CANE SUGAR AND BEET SUGAR. Rule 1. Minimum xceight of carload shipments. — (Repealed Dec. 5, said repeal to become effective Dec. 10, 1918.) Rule 2. Contracts shall provide for shipment within 30 days. — The manufac- turer shall .not make any contracts for the sale of sugar except such as require shipment within 30 days, the specification thereof to be given within 10 days from the date of the making of such contract, excepting contracts with the Federal, State, county, and municipal Governments and for export. Rule 3. Prices shall conform to price list furnished. — The manufacturer shall furnish to the United States Food Administrator, Washington, D. C, and de- liver to the trade a price list showing his selling price and all selling terms and diiferentials In force. After such price list or any subsequent price list is Issued the manufacturer shall make no sales of sugar except at the price, differ- entials, and terms shown in the price list then in force, until he has mailed to the United States Food Administrator a new price list showing any change made in said price, differentials, or terms, and has received the written approval of the United States Food Administrator to any change in differentials and to any addition to the list of new types of sugar or styles of packages. Note. — The issuance of price lists by manufacturers of beet sugar will not be necessary until August 1, 1918, and after that date it will be dispensed with in cases in which the manufacturer shall have entered into a proposed voluntary agreement with the United States Food Administrator prescribing other methods of supplying such information. [VI— A — 2, 3 amended. Effective July 1, 1918.] Rule 2. Manufacturer not to sell more than 10 days ahead. — The manufacturer or refiner shall not make any contracts for the sale of sugar except such as re- quire shipment within 10 days, excepting contracts with the Federal, State, county, or municipal Governments, or for export. He shall not make any con- tract except with such Governments or for export which he has not reasonable cause to believe that he can fill within 10 days. Note. — ^This rule supersedes former rule 2. Rule. 3. Prices shall conform to price list furmshed. — The manufacturer shall furnish to the United States Food Administrator, Washington, D. C, and de- liver to the trade a price list showing his selling price and all selling terms and differentials in force. After such price list or any subsequent price list is issued the manufacturer shall make no sales of sugaB except at the price, differentials, and terms shown in the price list then in force, until he has mailed to the United States Food Administrator a new price list show- ing any change made in said price, differentials, or terms, and has received the written approval of the United States Food Administrator to any change in differentials and to any addition to the list of new types of sugar or .styles of packages : Provided, That every price list and contract to sell sugar shall in- clude a stipulation that in case a change in the United States Food Adminis- tration regulations authorizes a higher price than that named in the contract or price list before the arrival of the sugar at destination, the refiner shall have the right to raise his price to such higher price, and that in case such change requires sales at a lower price than that named in the price list or contract before the arrival of the sugar at destination, the refiner shall be required to feduce his price to such lower price. Note. — The issuance of price lists by manufacturers of beet sugar will not be necessary until August 1, 1918, and after that date it will be dispensed with in cases in which the manufacturer shall have entered into a proposed voluntary COLD-STOEAGE LEGISLATION. 619 agreement with the United States Food Administrator prescribing other methods of supplying such Information. (The above rules supersede rules 2 and 3 of special regulations applying to all manufacturers and refiners of cane sugar and beet sugar.) [VI— A— 2, 3 amended (a). Oct. 25, 1918. Substitute this for VI— A— 2, 3 amended.] The following telegram was sent on October 25, 1918, by the sugar division to the Meinrath Sugar Distributing Committee, Otis Building, Chicago, and to. the Louisiana Sugar Committee, Tulane Newcomb Building, New Orleans, La ■ " Special License Regulations No. VI, applying to all manufacturers and re- finers of sugar, rule A— 2, as amended July 1, provides that the manufacturer or refiner shall not make any sales contracts for sugar except such as require ship- ment within 10 days. " To render the necessary assistance to beet and Louisiana cane producers in the sale and distribution of their sugar during the time of heavy production, we hereby authorize the producers mentioned to make contracts for sale which re- quire shipment within 30 days. This authority is to continue until further notice." [VI— A— 4, 5, 6.] Rule 4. Maximum brokerage fixed. — The manufacturer shall not pay any broker commissions in excess of one-fourth of 1 per cent on the value of raw sugar bought, or in the case of refined or semirefined sugar sold in excess of 5 cents per hundred pounds, excepting, however, that a higher commission may be paid for any special service if first approved by the United States Food Admin- istrator. Rule 5. Double brokerage prohibited. — The manufacturer shall not allow or pay to any person any brokerage or commission on sugar or its by-products on which he knows a commission or brokerage to have already been paid. Rule 6. Equitable distribution prescribed. — The manufacturer shall distribute sugar equitably among his customers so that no one of such customers receives more than his fair share of the sugar which may then be available for distri- bution. [VI — A — 6 amended. Effective July 1, 1918.] Rule 6. Equitable distribution prescribed. — The manufacturer shall distribute sugar equitably among liis customers so that no one of such customers receives more than his fair share of the sugar which may then be available for distribu- tion from all sources. Upon receipt of notice from tlie United States Food Ad- ministration that any shipment of sugar by the refiner or manufacturer to any State or States specified, or the shipment thereto of sugar of a given percentage of the refiner's or manufacturer's total shipments, will give such State or district more than its fair share of the sugar which may then be available for distribu- tion, the refiner or manufacturer shall not ship upon certificates issued by Federal food administrators of the State or States named a greater percentage of his total shipments in any prescribed period than is named in said notice. (The above rule supersedes nile 6 of special regulations applying to all manii- factureli-s and refiners of cane siigaT and beet sugar. ) [VI — A — 6. 7. 8, 9. 10, 11, 12. Dec. 4, 1918. Substitute this for VI — A — 6 amended, Vi— ^— 7 (b), VI— A— 8, 9, 10, VI— A— 8, amended, VI— A— 11, 12.] Rule 6. Equitable distribution prescribed (as amended Nov. 27, effective Dec. 1, 1918). — The manufacturer shall distribute sugar equitably among his cus- tomers so that no one of such customers receives more than his fair share of the sugar which may then be available for distribution from all sources. Upon receipt of notice from the United States Food Administration that any shipment of sugar by the refiner or manufacturer to any State or States specified, or the shipment thereto of sugar of a given percentage of the refiner's or manufac- turer's total shipments, will give such State or district more than its fair share of the sugar which may then be available for distribution, the refiner or manu- facturer shall not ship to the State or States named a greater percentage of his total shipments in any prescribed period than is named in said notice. Rule 7. Sugar to be delivered only on receipt of sugar-distribution certifl- coies.— (Repealed Nov. 27, effective Dec. 1, 1918.) Rule 8. Certificates to be mailed to Federal Food Administrator.— (Ke- pealed Nov. 27, effective Dec. 1, 1918.) 187690—19 40 620 COLD-STOEA.GE LEGISLATION. Rule 9. Sugar not to he vwd in manufacturmg other products mthout ob- taining sugar-distrihution certificates. — (Repealed Nov. 27, effective Dec. 1,, 1918.) Rule 10. Copy of invoice to be sent to Federal Food Administrator. — (Re- pealed Nov. 27, effective Dec. 1, 1918.) Rule 11. Standard package sizes prescribed. — (Repealed Nov. 27, effective- Dec. 1, 1918.) Rule 12 (new, Nov. 7, 1918). Sirups and molasses must arrive in good con- dition. — The licensee shall ship all sirups and molasses in such condition that, except for circumstances beyond the control of the shipper, they shall arrive- at destination point in the United States sound and sweet and in merchantable- condition unless there is an express agreement in writing to the contrary. Sirups and molasses shall not be considered to comply with this rule if the Baumg test shows less than the follov.'ing : Cane juice sirup, 38 : all other sirups and molasses for human consumption, 40° ; blackstrap molasses, 42°. The standard for Baum6 test where specified shall be the official Baumfe- scale of the United States Bureau of Standards, modulus 145, calculated to a temperature of 20° C. (Circular of the Bureau of Standards, No. 44.) [VI— A— 7.] Rule 7. Sugar to be delivered to manufacturers only on receipt of sugar- distribution certificates. — On and after May 15, 1918, the manufacturer shall not ship or deliver sugar to any person engaged in any business of manufac- turing, bottling, packing, or preparing products in which sugar is used until he has received from such purchaser a certificate or certificates duly indorsed by the buyer and issued to the buyer by the Federal food administrator for the- State in which the buyer is located, certifying that the total amount of sugar to be sold or delivered will not give the buyer more than his fair share of th& sugar then available for distribution in the United States. This rule .shall not apply to shipments or deliveries on bona fide contracts enforceable at law made prior to May 15, 1918. This rule shall not apply to sales or deliveries to (a) hotels, restaurants, boarding houses, or other public eating places whose products are sold for consumption on the premises ; (6) wholesale or retail dealers in sugar holding a license from the United States Food Administration; (c) bakers and cracker manufacturers holding a baker's license from the United States Food Adminis- tration. Note. — Certificates are required by the foregoing rule in selling to any of the- following classes: (a) Manufacturers of apple butter, beverage sirups, candy, catsup, cereals, chewing gum, chili sauqe, chocolate, cocoa, condiments, confec- tionery, explosives, flavoring extracts, fruit preserves, fruit sirup, glycerin,, grape juice, honey, invert sugar, ice' cream, jam, jelly, meat products, medicines, preserves, pickles, soda water, soft drinks, sirups, tobacco, vinegar, and wine. ( b ) Canners, preservers, and packers of every kind of vegetables, fruit, milk,. and meat. (c) Soda-water fountains and dispensers of soft drinks. (d) Bottlers of soft drinks and brewers. (e) Leather tanners and manufacturers of nonedible products (use of sugar prohibited). Certificates are not req^uired In selling to licensed wholesalers, retailers, or bakers, even though they use sugar in the manufacture of other products, because the Use of sugar by such dealers will be controlled directly by license regulation. Certificates are not required in sales to individual consumers, or in sales to- unlicensed retailers of sugar not engaged in a manufacturing business. [VI — A — 7 amended. Effective July 1, 1918.] Rule 7. Sugar to be delivered only on receipt of sugar-distribution certifi- cates. — On and after July 1, 1918, the manufacturer or refiner shall not ship or deliver sugar to any person whomsoever until he has received from such purchaser a certificate or certificates Issued by a Federal food administrator to some wholesaler, retailer, public eating place, manufacturer, baker, or other person In his State certifying that the total amount of sugar to be sold or delivered will not give the person to whom issued more than his fair share of the sugar then available for distribution in the United States. Such cer^ COLD-STORAGE LEGISLATION. 621 tlficate shall not be valid unless it is Indorsed by the person to whom Isfeued and also by any other person through whose hands it has passed. Note.— The foregoing rule is an amendment of rule 7 as efEective May 15, 1918, which required certificates only upon delivery to manufacturers. Under the above rule certificates must now be required in delivering sugar to any person whomsoever. (The above rule supersedes rule 7 of special regulations applying to all manu- facturers and refiners of cane sugar and beet sugar.) [VI — A — 7 (b). Aug. 27, 1918. Substitute this for VI— A— 7 (a).] ilxiLE A-7 (as amended Aug. 27, 1918, efEective Sept. 1, 1918). Sugar to 6e delivered only on receipt of sugar-diatrihution certificates. — On and after July 1, 1918, the manufacturer or refiner shall not ship or deliver sugar to any person ^vhomsoever until he has received from such purchaser a certificate or certifi- cates issued by a Federal Food Administrator to some wholesaler, retailer,' public eating place, manufacturer, baker, or other person in his State, certifying that the total amount of sugar to be sold or delivered will not give the person to whom issued more than his fair share of the sugar then available for dis- tribution in the United States. Such certificate shall not be valid unless it is Indorsed by the person to whom issued and also by any other person through whose hands it has passed. Nothing in this rule sa&\\ prevent the delivery of sugar to a farmer who has actually grown the beets or cane from which such sugar is manufactured with- out a sugar-distribution certificate: Provided, That the total amount to be so delivered shall not exceed 30 pounds for each person in the household or estab- lishment of the grower, and that the grower signs the following certificate : CERTIFICATE TO BE SIGNED BY FARMER EXCHANGIKG BEETS OR CANE FOR SUGAR. , 1918. I, , hereby certify that the cane (beets) delivered by me to the factory of , at , were grown by me on my farm ; that the amount of sugar to be delivered to me, together with that already on hand, will not give me a supply amounting to more than 30 pounds for each person in my household establishment, and that I will not sell, lend, or deliver such sugar to anyone, nor permit such sugar to be used for any purpose except human consumption in my household or establishment. (Address:) . Note. — The foregoing rule is an amendment of rule 7 as effective May 15, 1918, which required certificates only upon delivery to manufacturers, Under the above rule certificates must now be required in delivering sugar to any per- son whomsoever, with the exception contained in tae last paragraph of the rule which became effective August 1, 1918. The licensee may deliver sugar direct to his employees only if he applies to the Federal food administrator for his State and obtains sugar certificates as a retailer of sugar enabling him to deliver on the basis of the amount which he was accustomed formerly to deliver directly to individual consumers. [VI — A — 1. Insert this after VI — 7 amendea.] The rults which prohibit the delivery of sugar except upon the receipts of sugar-distribution certificates from the purchaser apply to sugar to be shipped from the United States to Porto Rico or Hawaii. The refiners located m Porto Rico and Hawaii will be permitted to deliver sugar to buyers in those Territories without such certificates, but shipments from the United States must not be made without the express permission of the Federal food administrators in those Territories. For the present, the rules requiring sugar-distnbution certifa- cates will not apply to the shipment of sugar to Alaska for the reason that sugar must be distributed to that country only during a short period of the year owing to traffic blockades during the winter to climatic conditions. (Effective Aug. 14. 1918. ) [VI— A— 8, 9, 10.] Rin,E 8. Certificates to he matted to Federal Pood ^'^■''\'''t''i;^IZr^^h licensee shall cancel immediately upon receipt and mail on the 1st ot each 622 COLD-STOEAGE LEGISLATION. month to the Federal Food Administrator whose name is signed thereto all sugar cerificates received by him during the preceding month. Rule 9. Sugar not to lie used in manufacturing other products without at- taining sugar-distribution certificates. — The licensee shall not, after May 15,. 1918, remelt any sugar for the purpose of making invert sugar, sifup, or mo- lasses, or use sugar in manufacture, bottling, packing, or preparation of any other product until he has obtained from the Federal food administrator of the State where such product is manufactured certificates that the total amount of sugar to be so used will not exceed his fair share of the sugar then available for distribution. He shall use no sugar in excess of the amount called for by the certificate issued to him. Whenever sugar is used for such purposes', the- licensee shall cancel certificates representing the amount of sugar used and; shall file them at the end of each month with the Federal food administrator whose name is signed thereto. Rule 10. Copy of invoice to 6e sent to Federal food administrator. — Th& licensee shall send daily to the Federal food administrator of the State la which the consignee Is located a copy of the invoice on all shipments and de- liveries of sugar. With the written consent of the United States Food Adtain- istratlon, any other method of supplying this information to the Federal foott administrator may be substituted. Note. — See general rules for list of Federal food administrators. [VI— A — 8 amended. Effective July 1, 1918.] Rule 8. Certificates to be mailed to Federal food administrator. — The licensee shall cancel immediately upon receipt and mail on the 1st of each month to the Federal food administrator whose name is signed thereto all sugar certificates received by him during the preceding month. He shall keep a complete record of all shipments made and of all certificates mailed to Federal food adminis- trators under this rule. (The above rule supersedes rule 8 of special regulations applying to all manufacturers and refiners of cane sugar and beet sugar.) [VI— A— 11. Effective July 1, 1918.] Rule 11. Standard package sizes prescribed. — On and after July 1, 1918, the manufacturer or "refiner shall not sell cane or beet sugar for domestic use m the United States except In 1-pound, 2-pound, 5-pound, 25-pound, or larger packages without special permission in writing from the United States Food Administration. Note. — The 25-pound package may be eliminated after the close of the pre- serving season. (This is a new rule under special regulations applying to all manufacturers and refiners of cane sugar and beet sugar. ) [VI— A— 11, 12. Sept. 7, 1918. Substitute this for VI— A— 11.] Rule 11. Standard package sines prescribed. — On and after July 1, 1918, the manufacturer or refiner shall not sell cane or beet sugar for domestic use' in the United States, except In 1-pound, 2-pound, 5-pound, 25-pound, or larger packages without special permission in writing from the United States Food Administration. Note. — The 25-pound package may be eliminated after the close of the pre- serving season. (This is a new rule under special regulations applying to all manufacturers and refiners of cane sugar and beet sugar.) Rule 12 (New, Nov. 7, 1918). Sirups and molasses must arrive in good con- dition. — The licensee shall ship all sirups and molasses In such condition that, except for circumstances beyond the control of the shipper, they shall arrive- at destination point In the United States sound and sweet and in merchantable condition unless there Is an express agreement In writing to the contrary. Sirups and molasses shall not be considered to comply with this rule if the BaumS test shows less than the following : Cane juice sirup, 38° ; all other sirups and molasses for human consumption, 40° ; blackstrap molasses, 42°. The standard for Baume test where specified shall be the official Baum& scale of the United States Bureau of Standards, modulus 145, calculated to "as temperature of 20° centigrade (circular of the Bureau of Standards, No. 44). COLD-STOEAGE LEGISLATION. 623 [VI— B— 1.] B. SPECIAL BEGULATIONS APPLYING TO EEFINEBS OP CANE SUSAB. ExJLE 1. All possible sugar must be extracted. — The refiner shall operate his plant in such manner as to secure the largest extraction of sugar possible from the raw sugar, and shall not deliberately produce sirups or molasses from which sugar can be commercially extracted. The percentage of soft or ofC-grade sugars produced by refiners In any month in comparison to their total output in that month shall not exceed the percentage produced during the year 1917 without the written consent of the United States Food Administrator. Note. — The attention of the refiner is called to general rule 23 governing all licensees : Rule 23. Combination sales prohibited. — No licensee shall make or offer to make any coml^ination sales of any food commodity, excepting that he may sell sugar in comhination with corn meal at the rate of 1 pound of sugar to 2 or more of corn meal, or wheat flour in combination with one or more wheat flour substitutes as prescribed by the Wheat Conservation Rules : Provided, That in making any such combination sales the licensee shall name and charge a price for each of the articles so sold, which shall not represent more than a normal prewar margin over cost of any one of such articles. "A combination sale is (1) any sale or delivery of two or more commodities, or of two or more kinds or sizes of the same commodity, at a price eflEectlve only If they are bought at the same time ; or (2) any sale or delivery of a commodity ■upon condition that the purchaser shall buy some other commodity, or some •other kind or size of the same commodity." tvi — B— 2, 3.] Rule 2. Sugar to be sold at reasonable advance over cost. — The manufacturer ■shall sell his sugar at not more than a fair and reasonable advance over cost. Note. — The United States Food Administration will announce from time to time what advance it considers fair. Rule 3. Price of sirups and molasses. — The licensee shall not sell the follow- ing products when manufactured from imported raw cane sugar at prices to •exceed those named below, which are based on the cost of imported raw sugar to the refiner : Per gal- lon, in bulk. Refiner's sirups, highest grade (fancy filtered) Refiner's sirups, medium grade (filtered) Refiner's simps, low grade (unaltered) Blackstrap molasses The prices named are f. o. b. cars at primary markets or port of entry, or point of production, if carrying same freight rate as from primary markets, net •cash in 10 days without discount, and shall include brokerage and any profit taken by a distributor in tank cars direct from the refinery, but shall not include freight or tank car charges. Note. — Any questions in regard to the grading of fancy, medium, and low grade sirups will be determined by the United States Food Administration committee on sirup valuations. Preference to domestic orders for sirup. — The Food Administration urgently requests that in accepting and filling orders for refiners' sirups, preference be given domestic customers over exporters. If this is not done voluntarily it will 1e necessary to consider regulations limiting the export of such shipments. [VI— B — 4, 5. Nov. 7, 1918. Insert this page after VI — ^B^ — 3.] Rule 4 (effective Nov 20, 1918). Priorities on deliveries of refiners' sirups.— The licensee shall not, without the written consent of the United States Food Administrator, make any deliveries of refiners' sirups after November 20, 191S, to any person until he shall have delivered refiners' sirups to customers of 624 COLD-STORAGE LEGISLATION. every class designated by a lower number. This rule shall apply to all deliveries regardless of the date of the contract therefor, and whether heretofore or hereafter made. Class 1. United States Government, the American Red Cross, the Young Men's Christian Association, the Salvation Army, and the Knights of Columbus. Class 2. Sirup mixtures for use in filling contracts with parties in class 1. Class 3. Sirup mixers and wholesale and retail grocers for distribution to household trade, public eating places and for medicinal purposes. Provided that a certificate is furnished by the purchaser with his order in the following form : I, , for the purpose of securing for this order a rating in class 3 under the sirup regulations of the United States Food Administration, do hereby certify that the refiners' sirups covered by this order will be resold (will be used for mixing sirups) for the household trade or public eating places v t> ^ leu [VI— D— 1, 2. July 31, 1918. Insert after VI— C— 1, 2. New— Effective July 31, 1918.] B. SPECIAL LICENSE REGULATIONS APPLYING TO MANUFACTUKEBS OF REFINED SEMI- BEFINED, AND RAW SUGAR PRODUCED FROM SUGAR CANE GROWN ON THE MAIN- LAND OF THE UNITED STATES AND SOLD FOR DIRECT CONSUMPTION. EuLE 1. All possible sugar must be extracted.— The refiner shall operate his plant m such manner as to secure the largest extraction of sugar possible from the cane or raw sugar, and they shall not deliberately produce sirups of molasses from which sugar can be commercially extracted. Rule 2. Unreasonable profits prohibited.— The manufacturer shall sell his sugar at not more than a fair and reasonable advance over cost. Note.— The United States Food Administration will announce from time to time what advance It considers fair in the case of refined, semireflned, raw, and washed sugars. [VI— D— 1, 2 (a). Oct. 21, 1918. Substitute this for VI— D— 1, 2.] ID. SPECIAL LICENSE REGULATIONS APPLYING TO MANUFACTURERS OF REFINED, SEMI- REFINED, AND RAW SUGAR PRODUCED FROM SUGAR CANE GROWN ON THE MAIN- LAND OF THE UNITED STATES AND SOLD FOR DIRECT CONSUMPTION. Rule 1. All possible sugar must be extracted. (Repealed September 1, 1918.) Rule 2. Unreasonable profits prohibited. The Manufacturer shall sell his •sugar at not more than a fair and reasonable advance over cost. Note. — The United States Food Administration will consider as a violation of the above rule any sale of direct consumption sugar at a price in excess of $9 per 100 pounds f. o. b. seaboard points of production carrying the same freight rate as seaboard points with the customary discounts, terms, and conditions, less the following differentials : Plantation granulated No differential. "White clarified per cwt— $ . 10 Off plantation granulated per cwt . 10 Off white per cwt— . 15 Choice yellow clarified per cwt . 15 Prime yellow clarified - per cwt— . 20 Kettle per cwt— . 20 Off yellow clarified per cwt_- . 30 ■Seconds and thirds : First group per cwt_- . 80 Second group per cwt— . 90 Third group per cwt-_ 1. 00 Fourth group per cwt— 1.10 Fifth group per cwt— 1. 20 The differential on all grades of semireflned direct consumption sugars not listed above shall be the differential indicated for sugars of equal grade, or if >of an intermediate grade at the differential of the listed grade next below; and the differential on sugars, the grade and price of which can not be thus ■determined shall be fixed by the said sugar committee. The above grades shall be determined with reference to the standard samples thereof as fixed *y the New Orleans Sugar and Rice Exchange with the approval of the 626 COLD-STOKAGB LEGISLATION. United States Food Administration and now on file witli said Exchange. In case of dispute regarding the grade the final decision shall be made by the Louisiana sugar committee. The Food Administration will further consider as a violation of the above rule any sale of raw sugar at a .price delivered at customary Louisiana refining points in excess of $7.28 per 100 pounds for 96" test, and any sale of washed sugar (which is defined as any first sugar above the grade of raw sugar and below the grade of yellow clarified, and having a color test of not less than 22 Dutch standard ) at a price in excess of $7.68 per 100 pounds with an addition of one-sixteenth cent per pound for every degree or fraction thereof above 96° and a reduction of one-tenth cent per pound for every degree or fraction thereof below 96°. [VI— D— 3. Nov. 7, 1918. Insert this after VI— D— 1, 2 (a).l Rule 3. (New, effective Nov. 7, 1918). Sucrose requirements for molasses. — The licensee shall not sell or deliver to any person first centrifugal molasses testing less than 38 per cent sucrose, second, centrifugal molasses testing less than 30 per cent sucrose, or third centrifugjil molasses testing less than 25 per cent sucrose, or any centrifugal molasses intended for human consumption con- taining more than 8 per cent ash. The licensee shall not sell for human consumption any molasses testing less than 30 per cent sucrose unless branded as " blackstrap." Sucrose tests shall be determined by the Clarget method. Exhibit P. [VII— Title.] UNITED STATES FOOD ADMINISTRATION SPECIAL LICENSE REGU- LATIONS NO. VII-VIII. CANNERS or PEAS, TOMATOES, COEN, DRIED BEANS, SALMON, SARDINES, AND TUNA, AND MANUFACTURERS OF TOMATO CATSUP, TOMATO SOUP, AND OTHEB TOMATO PRODUCTS MANUFACTURERS OF CONDENSED, EVAPORATED, OE POWDERED MILK — PACKERS OF DRIED FRUITS. Effective June 15, 1918. Licensees governed by the within regulations are also subject to the GeneEsl License Regulations (No. 1) contained in a separate pamphlet, dated May 3, 1918, and effective as to the above licensees on June 15, 1918. (Including Official Interpretations.) [VII— A— 1, 2.] SPECIAL LICENSE REGULATIONS. A. Special Regulations Governing Licensees Engaged in the Business of CANNING Peas, Corn, Tomatoes, Dried Beans, Salmon, Sardines, oe Tuna, or Manufacturing Tomato Soup, Tomato Catsup, or Other Tomato Products. (The toilowing special rules correspond to series B, and in so far as they 9,pply to the canning of peas, corn, tomatoes, dried beans, salmon, or sardines became effective Nov. 1, 1917, unless otherwise noted. They became effective as to tomato catsup and other tomato products other than canned tomatoes on February 28, 1918. They became effective as to canned tuna on June 15, 1918.) Rule 1. Carload shipments — Minimum weights. — All carload shipments of canned peas, canned corn, canned dried beans, canned tomatoes, tomato soup, to- mato catsup, or other tomato products, canned salmon, or canned tuna shall be made in car lots of not less than 60,000 pounds, and all carload shipments of canned sardines shall be made in car lots of not less than 45,000 pounds, unless a different minimum is authorized by special written permission of the United States Food Administrator ; provided, that when cars of lower carrying capacity COLD-STORAGE , LEGISLATION. 627 are used the maximum load which the car will carry may be used without such permission. Note. — This rule corresponds to general rule 9, series B. The rule applies to intrastate as well as Interstate shipments. The rule prescribes a trade unit and is not a transportation regulation. Rule 2. Manufactured products must he sold at not more than reasonable cdvanvc over average cost. — The licensee shall sell goods manufactured and on hand for not more than a reasonable advance over the average cost of the season's pack without regard to the market or replacement value at the time of such sale. Note. — This rule corresponds to special rule 4, series B, governing canners. It was amended to its present form January 28 ,1918. [VII — A — 1, 2 (a). Dec. 6, 1918. Substitute this for VII — A — 1, 2.] SPECIAL LICENSE REGULATIONS. A. Special Regulations Governing Licencees Engaged in the Business of Canning Peas, Cokn, Tomatoes, Dried Beans, Salmon, Sardines, or Tuna, or Manufacturing Tomato Soup, Tomato Catsup, or Other Tomato Prod- ucts. (The following special rules correspond to series B, and in so far as they apply to the canning of peas, corn, tomatoes, dried beans, salmon, or sardines became effective Nov. 1, 1917, unless otherwise noted. They became effective as to tomato catsup and other tomato products other than canned tomatoes on Feb. 28, 1918. They became effective as to canned tuna on June 15, 1918 : ) Rule 1. Carload shipments — Minimum weights. — (Repealed Dec. 5, said re- peal to become effective Dec. 10, 1918. ) Rule 2. Manufactured products must be sold at not more than reasonable advance over average cost. — The licensee shall sell goods manufactured and on hand for not more than a reasonable advance over the average cost of the season's pack without regard to the market or replacement value at the time of such sale. Note. — This rule corresponds to special rule 4, series B, governing canners. It was amended to its present form January 28, 1918. [VII— A — 1, 2. Sept. 14, 1918. Insert this after VII— A— 1, 2 (a).] The canned-goods division, under date of September 7, 1918, issued the fol- lowing announcement : To canners and distributors of licensed canned vegetables: In order to make clear the attitude of the Food Administration in regard to the rules and regulations governing canners and distributors of licensed canned vegetables, the following announcement is made in regard to canned corn, canned tomatoes, and canned peas. 1. Future sales.— Before invoicing goods which were sold for future delivery, canners have been instructed to review their estimate of cost and if it is deter- mined at the time of shipment that the actual cost is lower than the estimated cost, prices must be revised by the canner so that the margin of profit will not exceed the maximums announced as reasonable. 2. Revision of prices. — Revision of prices must occur before invoicing. It would be impracticable to rebate throughout the channels of distribution in order to give the consumer the benefit of lower prices ; therefore the canner's invoice price is the final price and no revision after invoicing will be permitted, with this exception : If the direct customer of a canner will agree to accept delivery and with- hold the goods from distribution, the canner will be permitted to bill at the time of shipment at the future contract price, pending the final determination of his cost at the end of his pack. In this case, the purchaser must make payment on the basis of this invoice and in accordance with its terms per- mitting the canner to make final adjustment, if Sny, in the form of a rebate. The purchaser must in such cases await the canner's final price before invoic- ing these goods. . . 3. Spot sales.— Canneis who have made delivery in good faith at future con- tract prices and later find their costs are lower than anticipated, must sell the balance of their pack at such prices as to insure their making more than the 628 COLD-STORAGE LEGISLATION. maximum margins on the entire season's output. In these cases purchasers who have already received shipments at the contract price must be given the opportunity of purchasing such surplus at the lower price. This surplus must be offered to such purchasers pro rata up to a quantity equal to their future purchases. [VII— A— 1, 2 (a). Sept. 14, 191S. Substitute this for VII— A— 1, 2.] The canned-goods division, under date of September 7, 1918, issued the fol- lowing announcement: To canners and distributors of licensed canned vegetables : In order to make clear the attitude of the Food Administration in regard to the rules and regulations governing canners and distributors of licensed canned vegetables, the following announcement is made in regard to canned corn, canned tomatoes and canned peas. 1. Future sales. — Before invoicing goods which were sold for future de- livery, canners have been instructed to review their estimate of cost and if it is determined at the time of shipment that the actual cost is lower than the estimated cost, prices must be revised by the canner so that the margin of profit will not exceed the maximums announced as reasonable. 2. Revision of prices. — Revision of prices must occur before invoicing. It would be impracticable to rebate throughout the channels of distribution in order to give the consumer the benefit of lower prices ; therefore the canner's invoice price is the final price and no revision after invoicing will be permitted, with this exception : If the direct customer of a canner will agree to accept delivery and with? hold the goods from distribution, the canner will be permitted to bill at the time at the future contract price, pending the final determination of his cost at the end of his pack. In this case, the purchaser must make payment on the basis of this invoice and in accordance with its terms permitting the canner to make final adjustment, if any, in the form of a rebate. The purchaser must, in such cases, await the canner's final price before invoicing these goods. 3. Spot sales. — Canners who have made delivery in good faith at future con- tract prices, and later find their costs are lower than anticipated, must sell the balance of their pack at such prices as to insure their making no more than the maximum margins on the entire season's output. In these cases pur- chasers who have received shipments at the contract price must be given the opportunity of purchasing such surplus at the lower price. This surplus must be offered to such purchasers pro rata up to a quantity equal to their future purchases. [VII — A — 1, 2 (a) continued. Oct. 25, 191S. Insert this after VII — A — 1, 2 (a).] The canned foods and distribution division issued the following announce- ment, under date of October 22, 1918 : To Canners and Distributors of Licensed Canned Vegetables : (Statement Supplementing Announcement of September 9, 1918 — ^Revision of Contract Prices.) As many inquiries have been received with reference to the proper construc- tion of the announcement made September 9, 1918, as to the revision of contract prices of canned corn, canned tomatoes, and canned peas, it is deemed advisable to make the following general statement : Where the packer's profits prove to be greater than those permitted by the rules of the Food Administration, he shall remit the excess to the purchaser, who shall credit the amount received by him upon the average cost of goods of the same grade and size of the same commodity then in his possession or invoiced to him. Attention is called to the fact that the rules permit, but do not require that goods of different brands be averaged. In a spirit of fairness to the packer, therefore, the purchaser should apply the reduction in cost first to goods then in his possession under packer's label, up to an amount in cents per dozen equal to the rebate, before applying the reduction in cost to goods under other labels. COUD-STOEAGE LEGISLATION. 629 If the purchaser's stock of such goods is so small as to make this Impracticable or the price ridiculous, he shall apply to the wholesale section of the Food Ad- ministration for instructions. The packer shall make to the canned foods division of the Food Administra- tion a statement giving the names of the purchasers to whom such payments are made, the amount of each payment, and stating the grade and size of the canned goods on account of which each payment is made. The purchaser shall also make a written statement to the wholesale section of the Food Administration showing the amounts so received, from whom received, and how the same were credited. The wholesaler will not be permitted to make any rebate to the retailer on the price of any goods already delivered to the retailer. In this connection attention is called to the fact that the wholesaler can not sell at a price which will enable him to realize more than the prescribed margin of profit over the average cost, reduced as above provided for. The average cost is to be determined in the manner required by the rules and regulations. [VII— A— 3, 4, 5.1 Rule 8. Licensee shall produce fair proportions of announced grades and «^es.— The licensee shall produce a fair proportion of his canned food products in such grade and si?;es as 'may be hereafter required by the United States Food Administrator By public announcement. Note. — This rule corresponds to special rule 6, series B, governing canners. Rule 4. Factory and equipment must be kept clean. — The licensee shall at all times keep his factory, machinery, utensils, and raw material, including products to be canned, in a clean and sanitary condition. He shall so regulate Jiis purchases and handling of raw materials as to insure their delivery to the factory in a sound condition and to avoid unnecessary waste. Note. — This rule corresponds to special rule 10, series B, governing canners. It became effective January 28, 1918. Rule 5. Piill packing of cans required.— T\\& licensee shall pack all cans as full of food as is practicable for packing and processing without injuring the ■quality or appearane of the contents.. No liquor shall be added, except in sufficient quantity to fill the interstices' and cover the product. No water shall be added in canning tomatoes. Note. — This rule corresponds to special rule 11, series B, governing canners, and became effective January 28, 1918. (Rules 6 to 11 apply to the canning of fresh vegetables and fish only.) Rule, 6. Quotations or sales before February 1 prohibited. — The licensee shall not quote for future packing or delivery or sell any canned peas, canned corn, •canned tomatoes, tomato soup, tomato catsup, or other tomato products, canned salmon, canned sardines, or canned tuna before February 1 of the year in which such products are to be canned : Provided, That this rule shall not apply to sales to the Government of the United States. Note. — This rule corresponds to special rule 1, series B, governing canners. It was amended to its present form January 28, 1918. " Shall not quote for future packing or delivery or sell " includes acceptance of orders subject to approval of price when named. This rule prohibits the acceptance of conditional orders or commitments of any kind. [VII— A— 7, 8, 9.] Rule 7. Sales of canned peas, com, or tomatoes must not exceed 75 per cent ■of yearly average delivery, 1913-1911.— T\ie licensee shall not sell for future de- livery to parties other than the Government of the United States any canned peas, canned corn, canned tomatoes, tomato soup, tomato catsup, or other tomato products, in excess of 75 per cent of the yearly average delivery of such articles made by him during the five years next preceding 1918, and in no event shall all sales, including sales to the Government of the United States, exceed 100 per cent of such average delivery, unless otherwise permitted by the special written consent of the United States Food Administrator ; such licensee must in all in- stances have under written contract at the time of making such sales, except sales to the Government of the United States, an acreage which under normal conditions would yield a crop sufficient for filling such future sales. Note.— This rule corresponds to special rule 2, series B, governing canners. It was amended to its present form January 28, 1918. 630 COLD-STOKAGE ' LEGISLATION. Rule 8. Sales of canned salmon or sardines must not exceed 7i5 per cent of estimated pack. — The licensee shall not sell for future delivery canned salmon, canned sardines, or canned tuna, in excess of 75 per cent of his estimated pack, conservatively figured with regard to his capacity and the supply of fish which can reasonably be expected by him. Note. — This rule corresponds to special rule 3, series B, governing canners. Rule 9. Licensee must not buy commodities already sold. — No licensee shall buy or contract to buy any of the vegetables or fish required for the above-men- tioned products if he has reason to believe that the seller has already con- tracted to sell the said materials to other persons. In buying vegetables or fish for such products he shall require the seller to state in writing, in the contract cr otherwise, that he has not contracted to sell said vegetables or fish to others. Note. — This rule corresponds to special rule 5, series B, governing canners. [VII— A— 10, 11, 12.] Rule 10. Licensee must complete contracts for future delivery. — If a licensee has contracted to sell for future delivery any proportion of his esti- mated pack he shall not sell any such products for immediate delivery unless he shall have already packed, exclusive of his product so sold for immediate delivery, a sufficient quantity to fill all such contracts for future delivery. Note. — This rule corresponds to special rule 8, series 'B, governing canners, and became effective January 28, 1918. Rule 11. One form of contract must 6e used. — ^No licensee shall hereafter use more than one form of contract covering the sale of licensed commodi- ties for future delivery of the pack of any one season without a special per- mit from the Food Administration. Note. — This rule corresponds to rule 9, series B, governing canners, and be- came effective January 28, 1918. (Rules 12 to 1.5 apply to the canning of dried beans only.) Rule 12. Must not hold more than 60 days' supply of dried beans. — The licensee shall not, without the written consent of the United States Food Ad- ministrator, or his duly authorized representative, keep on hand or have in possession or under control, by contract or other arrangement, at any time, any dried beans and canned dried beans not sold or contracted to be sold in a quantity in excess of the reasonable requirements of his business for, sale by him during the next 60 days. This rule snail not affect the validity of contracts enforceable at law made in good faith prior to October 15, 1917. Note. — Rules 12, -IS, and 14 correspond to general rules 13, 14, and 15 in series B. [VII— 13, 14, 15.] Rule 13. Must not sell or deliver more than 60 days' supply of dried beans. — The licensee shall not sell or deliver to any person any canned dried beans ■without the consent of the United States Food Administration, if the licensee knows, or has reason to believe, that such a sale or delivery will give to such person a supply of such commodities not sold or contracted to be sold in excess of his reasonable requirements for use or sale by him during the period of 60 days next succeeding such sale or delivery: Provided, That this rule shall not prevent the sale or delivery of any canned dried beans to any person for the Federal, State, county, or municipal governments or for any Government of any nation at war with Germany, or the sale or delivery. of a carload thereof to any licensee having less than a carload lot on hand. Note. — This rule was amended to its present form January 28, 1918. Rule 14. Must not sell dried beans for delivery more than 60 days after date of contract— The licensee shall pot make or have outstanding at any time any contract for the sale of canned dried beans for shipment or delivery more than €0 days after the making of such contract: Provided, however. That this rule shall not apply to contracts with the Federal, State, county, or municipal governments or with the Government of any nation at war with Germany. Rule 15. Permit required to can dried beans or dried peas in tin-plate con- tainers. — The licensee shall not can in containers made of tin plate any dried beans or dried peas without a special permit from the United States Food Administrator. Note. — This rule corresponds to special rule 7, governing canners. COLD-STOEAGE LEGISLATION. 631 [VII— A— 13, 14, 15 (a). Nov. 26, 1918. Substitute this for VII — 13, 14, 15.] xuK iiLeubee snau not sell or deliver to any oerson anv nanna^ a^^^a i,„„ without the consent of the United States Food^AdminSaHon if the licensed knows, or has reason to believe, that such a sale or delivery will gi^e to s^fch person a supply of such commodities not sold or contracted to be sold in excess of his reasonable requirements for use or sale by him during the nerJod nf Ra days next succeeding such sale or delivery: ProLe^ ThXsrulfXnn^ ^«S ^t T^"" °' "^^"^^"^ "* ^'^y '^^""^'J per dozen. . Standard springs or chinooks do Cohoes do Chums do $3.15 2.75 2.30 2.40 1.75 3.15 2.75 2.40 1.75 %'i. 25 2.85 2.40 2. .50 1.85 3.25 2.85 2.50 1.86 ?2.00 1.75 2.00- 1..50 l.f.O •I.IO' 2. 00' 1.75 l.bO' 1. ID- CANNED SAEDINES. Eastern. — The Maine State food administrator early in this year called a conference of the fishermen heavily interested and a price of $25 per hogshead for raw fish was established as the maximum price to be paid by the packers. A little later a committee, representing a very large proportion of the Maine sardine packers, appeared before Mr. Munn, and a voluntary maximum price was established of $6.50 per ease for one-quarter oil canned sardines. Later the Canadian authorities adopted the American prices as maximums. Western. — The sardine situation has recently been handled in California by Mr. Munn in conferences held with the fishermen and packers and the basis is as follows : Maximum prices for raw sardines : Under 7i inches Over 7i inches 15 COLD-STOEAGE LEGISLATIOK. 633 Based on these raw flsh prices, the following maximum canned sardine prices per case were approved: Tomato. Oil. Quarter round . Half round Ones round — Ones oval Oue-halloral... $3.25 S3. 35 4.00 41.5 5.75 6.0» 7.25 5. 50 CANNED TUNA. The tuna situation was handled by conferences with the fishermen, at which the maximum prices for raw tune were established as foUows : Raw Tuna. — One hundred and ten dollars per ton for Albacore and blue tuna, and $100 per ton for all other tuna. Later the canners were gotten to- gether and the prices on canned tuna were established as follows : Canned tuna, per doz. 48/i's $3. 37i 48/iis 1-90 48/iis 1- 25 CANNED CORN, PEAS, AKD TOMATOES. It has beeu Impossible to reach the grower. The canner, however, has been on the basis of maximum margins of profit as announced in Bulletin No. 38, issued by the Canned Goods Division on May 1, 1918. which reads as follows : " Based on the views of the Federal Trade Commission of reasonable profit and the Food Administration's valuation of reasonable crop hazard insurance, the following maximum margins in cents per dozen cans are announced for licensed canners between cost and selling price. Excess of these margins will be considered unreasonable under the food control act. Cost shall not include income and excess profits taxes, interest on investment, interest on long-term notes, or crop hazards. Corn: Cents. No. 2, standard J| No. 2, extra standard "^ No. 2, fancy "*" Peas : .. - No. 2, substandard, average sizes ^^ No. 2, standard, average all sizes ^^ No. 2, fancy, average all sizes NOTE— Greater margins on smaller sizes of peas, offsetting less margins on larger sizes, will be allowed, provided the average does not exceed margin an- nounced. Tomatoes : Cents. 18 No. 2, sandard ; ■ 22 No. 2i, standard '■ ~_'_ 27 No. 3, standard IIIII 31 No. 3, fancy IIIIII__ 90 - No. 10, standard _ ^qq No. 10, fancy NoTE.-From the margins on standard tomatoes a ^f^"f^7° f J,,[| f ' the dozen on Nos. 2, 2h 3, and of 15 cents per dozen on No. 10 shall be made for the ''wMte profi'tslhall be reasonable, the Food Atoinistra^tion adopt^^^^^^^^^ eral principle, applicable to all important producing agencies, that profits must be sufficient to encourage production. 634 COLD-STORAGE LEGISLATION. These margins are believed to be ample to provide a fair stimulative profit to the canners, with due consideration to labor difficulties, crop hazards, and the peculiar uncertainties incident to this industry. We emphasize the fact that the margins are maximum margins and must be considered as guides only. They do not change the rules. This industry, like all others subject to license, should be guided by the gen- eral principle that what would have been a satisfactory profit in the prewar period on an even market, under freely competitive conditions, should be the standard to-day, and no maximum named as a guide should be accepted as an invitation to exceed this former standard. The practice of selling the pack, or a large proportion of it, in advance of its production is an outgrowth of conditions existing in this industry. It Is a safeguard, both for farmers and for canners, and the practice, properly con- ducted in accordance with the rules and regulations of the Food Administra- tion, tends strongly to remove the dangerous speculative features otherwise in- cident to the business. [VII— A — 3, 4, 5, 6, 7, 8, 9, 10, 11, 12. 13, 14, 15. Dec. 4, 1918. Substitute this for VII— A— 3, 4, 5; VII— A— 7, 8, 9; VII— A— 10, 11, 12; VII— A— 13, 14, 15 (a). Rule 3. Licensee shall produce fair proportions of announced grades and sizes. — (Repealed December 3, 1918.) Rule 4. Factory and equipment must he kept clean. — (Repealed December 3,. 1918. ) Rule 5. Full packing of cans required. — (Repealed December 3, 1918.) Rule 6. Quotations or sales lief ore February 1 prohibited. The licensee shall not quote for future packing or delivery or sell any canned peas, canned corn,, canned tomatoes, tomato soup, tomato catsup, or other tomato products, canned salmon, canned sardines, or canned tuna before February 1 of the year In which such products are to be canned : Provided, That this rule shall not apply to sales to the Government of the United States. Rule 7. Sales of canned peas, com, or tomatoes must not exceed 15 'per cent of yearly average delivery, 1913-1917. — (Repealed December 3, 1918.) Rule 8. Sales of canned salmon or sardines must not exceed 75 per cent of estimated pack. — (Repealed December 3, 1918.) Rule 9. Licensee must not buy commodities already sold. — (Repealed De- cember 8, 1918.) Rule 10. Licensee must complete contracts for future delivery. — (Repealed December 3, 1918.) Rule 11. One form of contract must be used. — (Repealed December 3, 1918.) Rule 12. Must not hold more than 60 days' supply of dried beans. — (Repealed December 3, 1918.) Rule 13. Mtist not sell or deliver more than 60 days' supply of dried beans. — (Repealed December 3, 1918.) Rule 14. Must not sell dried beans for delivery more than 60 days after date of contract. — (Repealed December 3, 1918.) Rule 15. Pernuts required to can dried beans or dried peas in tin-plate con- tainers. — (Repealed November 13, 1918.) [VII— B—1, 2.] B. Special Regulations Governing Licensees Engaged in the Business or OF Manufacturing Condensed, Evaporated, or Powdered Milk. Rule 1. Carload shipments — Minimum weights. — All carload shipments of the- following commodities shall be made in car lots of not less than the amount pre- scribed below unless a different minimum is authorized by special written permission of the United States Food Administrator : Provided, however, That when cars of lower carrying capacity are used the maximum load which the car will carry must be used without such permission : Pounds. Evaporated milk and condensed milk 45,000' Powdered milk 40, OOO Provided, That when any of the foregoing is shipped in barrels, the car may be loaded to the car-space capacity, barrels on end. Note. — This rule corresponds to general rule 9, series B. COLD-STOKAGE LEGISLATION. 635 ^n^'ilfJ- ^?°'^f- *""** ^1*°''^ f"'' **"* '"'"■« *'*«« reasonable advance over aver- age cost.~Tlm licensee shall sell condensed, evaporated, and powdered mUk for not more than a reasonable advance over the average cost of the season's pack without regard to the market or replacement value at the time of such safe [VII— B—l, 2 (a). Dec. 6, 1918. Substitute this (or VII— B—1, 2.] B. Speci.^l Regulations Governing Licensees EN(i.\GED in the Btt^tness of Manufacturing Condensed, Evaporated, oh Powdered Milk Rule 1. Carload sliii>wen1s— Minimum veiglUs.— (Repealed Dec 5 said re- peal to become effective Dec. 10, 1918.) «y^.ai™ uec. o, saw re Rule 2. Goods must be sold for not more tha.n reasonable advance over aver- age cost.— The licensee shall sell condensed, evaporated, and powdered milk for not more than a reasonable advance over the average cost of the season's pack without regard to the market or replacement value at the time of such sale. [VII— B— 3, 4.] Rule 3. Must not sell or deliver more than 60 days' supply to any person— The licensee shall not sell or deliver to any person any condensed evaporated or powdered milk without the consent of the United States Food Administra- tion if the licensee knows, or has reason to beheve, that such a sale or delivery will give to such person a supply of any such commodities, not sold or con- tracted to be sold, in excess of his reasonable requirements for use or sale by him during the period of 60 days next succeeding such sale or delivery : Pro- vided, That this rule shall not prevent the sale or delivery of any food com- modities to any person for the Federal, State, county, or municipal Govern- ments or for the Government of any nation at war with Germany, or the sale or delivery of a carload of that commodity to any licensee having less than a carload lot on hand. Note. — Rules 3 and 4 correspond to general rules 14 and 15, series B. Rule 4. Contracts for delivery more than 60 days ahead prohibited. — The licensee shall not make or have outstanding at any time any contract for the sale of condensed, evaporated, or powdered milk for shipment or delivery more than 60 days after the ' making of such contract : Provided, however. That this rule shall not apply to contracts with the Federal, State, county, or municipal governments or with the Government of any nation at war with Germany : Provided further, That an importer may sell goods to be imported for delivery on arrival. This rule shall not affect the validity of contracts enforceable at law made in good faith prior to October 15, 1917. [VII— B— 3, 4, 5. Sept. 20, 1918. Substitute this for VII— B— 3, 4.] Rule 3. Must not sell or deliver more than 60 days' supply to any person. — The licensee shall not sell or deliver to any person any condensed, evaporated, or powdered milk without the consent of the United States Food Administration if the licensee knows or has reason to believe that such a sale or delivery will give to such person a supply of any such commodities, not sold or contracted to be sold, in excess of his reasonable requirements for use or sale by him during the period of 60 days next succeeding such sale or delivery : Provided, That this rule shall not prevent the sale or delivery of any food commodities to any person for the Federal, State, county, or municipal Governments or for the Government of any nation at war with Germany, or the sale or delivery of a car load of that commodity to any licensee having less than a car-load lot on hand. Note. — Rules 3 and 4 correspond to General Rules 1 _4and 15, series B. Rule 4. Contracts for delivery more than 60 days ahead prohibited. — The licensee shall not make or have outstanding at any time any contract for the sale of condensed, evaporated, or powdered milk for shipment or delivery more than 60 days after the making of such contract : Provided, however. That this rule shall not apply to contracts with the Federal, State, county, or municipal Governments or with the Government of any nation at war with Germany: Provided further. That an importer may sell goods to be imported for delivery on arrival. This rule shall not afeect the validity of contracts enforceable at law made in good faith prior to October 15, 1917. 137690—19 41 636 COLD-STORAGE LEGISLATION. Rule 5 (new Sept. 20, 1918; effective Nov. 1, 1918). Factory, materials, and products must he kept in clean and sanitary condition. — The licensee shall at all times keep his factory, machinery, utensils, and raw materials, Including products to be canned, in a clean and sanitary condition. He shall so regulate his purchases and handling of raw materials as to insure their delivery to the factory in a sound condition and to avoid unnecessary waste. [VII— B — 3, 4, 5(a). Dec. 4, 1918. Substitute this for VII— B— 3, 4, 5.] Rule 3. Must not sell or deliver more than 60 days' supply to any person. — The licensee shall not sell or deliver to any person any condensed, evaporated, or powdered milk without the consent of the United States Food Administration if the licensee knows or has reason to believe that such a sale or delivery will give to such person a supply of any such commodities, not sold or contracted to be sold, in excess of his reasonable requirements for use or sale by him during the period of 60 days next succeeding such sale or delivery : Provided, That this rule shall not prevent the sale or delivery of any food commodities to any person for the Federal, State, county, or municipal Governments or for the Government of any nation at war with Germany, or the sale or delivery of a car load of that commodity to any licensee having less than a car-load lot on hand. Note. — Rules 3 and 4 correspond to general rules 14 and 15, series B. Rule 4. Contracts for delivery more than 60 days ahead prohibited. — ^The licensee shall not make or have outstanding at any time any contract for the sale of condensed, evaporated, or powdered milk for shipment or delivery more than 60 days after the making of such contract : Provided, however, That this rule shall not apply to contracts with the Federal, State, county, or municipal Governments or with the Government of any nation at war with Germany: Provided further, That an importer may sell goods to be imported for delivery on arrival. This rule shall not affect the validity of contracts enforceable at law made in good faith prior to October 15, 1917. Rule 5. Factory, materials, and products must he kept in clean and sanitary condition. — (Repealed Dec. 3, 1918.) [VIII— A— 1, 2, 3, 4.] VIIL A. Special Regulations Govebning Licensees Engaoed in the Business or Pbepabing Dried Peaches, Deied Apples, Deied Peunes, ob Dried Raisins. Rule 1. Minimum carload shipments, 60,000 pounds. — All carload shipments of dried peaches, dried apples, dried prunes, or dried raisins shall be made in car lots of not less than 60,000 pounds, unless a different minimum is authorized by special written permission of the United States Food Administration: Pro- vided, however, That when cars of lower carrying capacity are used, the maxi- mum load which the car will carry may be used without such permission. Note. — This rule corresponds to general rule 9, series B. Rule 2. New-crop fruits not to he hought or sold before July 15. — The licensee prior to July 15 of the year in which new-crop fruits are to be grown and packed, shall not buy, contract to buy, offer for sale, or have outstanding any contract of sale or any commitment for sale, of new-crop fruits not available for spot delivery. A commitment shall include all tentative or conditional orders whether definite prices are named or not. ' Rule 3. Facing of dried fruits prohibited.— The licensee shall not face or cause to be faced any licensed dried fruits in any package. Such facing will be regarded as a wasteful practice. Rule 4. Dried fruits must be sold at not more than a reasonable advance over cost. — The licensee shall sell his products for not more than a reasonable ad- vance over the cost of said products and without regard to market or replace- ment value at the time of said sale. COLD-STOBAGE LEGISLATION. 637 [vill— A— 1, 2, 3, 4, 5. Dec. 4, 1918. Substitute this for VIII— A— 1, 2, 3, 4 and ' VIII— A— 5.] A. Special Regulations Governing Licensees Engaged in the Business of Pbepabing ok Packing Dkied Peaches, Deied Apples, Dried Prunes, OB Dried Raisins. Rule 1. Minimum carload shipments, 60,000 pounds. — All carload shipments of dried peaches, dried apples, dried prunes, or dried raisins shall be made in car lots of not less than 60,000 pounds, unless a different minimum is authorized by special written permission of the United States Food Administration : Pro- vided, however. That when cars of lower carrying capacity are used, the maxi- mum load which the car will carry may be used without such permission. Note. — ^This rule corresponds to general rule 9, series B. Bulb 2. New-crop fruits not to he bought or sold before July 15. — The licensee, prior to July 15 of the year in which new-crop fruits are to be grown and packed, shall not buy, contract to buy, offer for sale, or have outstanding any contract of sale or any commitment for sale of new-crop fruits not available for spot delivery. A commitment shall Include all tentative or conditional orders whether deftaite prices are named or not. Rule 3. Fucing of dried fruits prohibited. — (Repealed Dec. 3, 1918.) Rule 4. Dried fruits must be sold at not more than a reasonable advance over cost. — The licensee shall sell his products for not more than a reasonable ad- vance over the cost of said products and without regard to market or replace- ment value at the time of said sale. Rule 5. Price lists and circulars to he mailed food administration. — (Repealed Dec. 3, 1918.) [VIII a 1, 2, 3, 4, 5 (a). Dec. 6, 1918. Substitute this for VIII— A— 1, 2, 3, 4, 5.] VIII. A. Special Regulations Governing Licensees Engaged in the Business of Pbepabing ob Packing Djiied Peaches, Dried Apples, Dbied Pbunes, oe Dried Raisins. Rule 1. Minimum carload shipments, 60,000 pounds. — (Repealed Dec. 5, said repeal to become effective Dec. 10, 1918.) Rule 2. Neui-arop fruits not to he bought or sold before July 15. — The licensee, prior to July 15 of the year in which new-crop fruits are to be grown and packed, shall not buy, contract to buy, offer for sale, or have outstanding any contract of sale or any commitment for sale of new-ci-op fruits not avail- able for spot delivery. A commitment shall Include all tentative or condi- tional orders whether definite prices are named or not. Rule 3. Facing of dried fruits prohibited. — (Repealed Dec. 3, 1918.) Rule 4. Dried fruits must be sold at not more than a reasonable advance wer cost. — The licensee shall sell his products for not more than a reasonable advance over the cost of said products and without regard to market or re- placement value at the time of said sale. Rule 5. Price lists and circulars to be mailed Food Administration. — (Re- pealed Dec. 3, 1918.) [»VIII — a — 1, 2, 3, 4. Insert after VIII — A — 1, 2, 8, 4.] Rule VIII— A— 2 is not to be construed as prohibiting the making of a con- tract whereby a packer or association agrees with a grower to market the grower's crop at the price prevailing when the crop is marketed ; nor is the rule to be construed as affecting any such contracts that are already outstanding. (Opinion A-106, July 22, 1918.) [VIII— A— 1, 2, 3, 4 (a). Nov. 2, 1918. Substitute this for *vni— A— 1, 2, 3, 4.] dbied fruits. The Canned Goods and Dried Fruits Division has prepared the following, which shows what has been done in establishing prices on dried fruits, ihe dried fruit situation has been handled largely by Mr. Merntt, State food ad- ministrator for California, and his confrerees. In each instance a large ma- 638 COLD-STORAGE LEGISLATION. .joi-ity of tlie representative growers have been brought together and voluntary agreements have been reached covering the maximum prices. The dried fruit packers ^yere then handled in the same way and adopted a maximum of profit of 4 per cent. The prices for dried fruits in California are as follows : Peaches. — Maximum price to grower 11 cents, which includes 8 per cent gain in dip already agreed upon. Maximum price to trade : Choice yellow, bulk basis, llf cents ; fancy yellow, bulk basis, 12^ cents ; choice Muir, bulk basis, llj cents ; fancy Muir, bulk basis, 12f cents. (Add 1 cent per pound for 50's and IJ cent for 25's.) Raisins. — Buying price to grower : Muscat, 5i cents. Selling price to trade : Fancy seeded, $0.0962; choice seeded, $0.09125; bulk seeded, $0.08 per pound in 25-poun(i boxes ; loose 2 Crown $0,075 per pound in 25-pound boxes ; loose 'S Crown, $0.08 per pound in 25-pound boxes. Prunes. — 40-50 buk basis, 10 cents ; 50-60 bulk basis, 9 cents ; 70-80 bulk basis, 8} cents. The Oregon situation was handled by Mr. Ayer. The Oregon prices on prunes are as follows : 40-50 bulk basis, 10 cents ; 50-60 bulk basis. 9 cents ; 60-70 bulk basis, 9 cents ; 70-80 bulk basis, 8| cents. Dried Apples. — ^While dried apples are licensed, it has been found impossible to reach any general voluntary agreement with the growers owing to the peculiar production feature, in that they are produced practically everywhere. We are, however, attempting to regulate the profits of packers on the 4 per cent max- imum basis. KuLE VIII — A — 2 is not to be construed as prohibiting the making of a con- tract whereby a packer or association agrees with a grower to market the grower's crop at the price prevailing when the crop is marketed ; nor is the rule to be construed as alfecting any such contracts that are already outstand- ing. (Opinion A-106, July 22, ]918.) [VIII— A— 5.] Rule 5. Price lists and circulars to be mailed Food Administration. — ^Li- censees quoting dried fruits for shipment in ear-load lots shall mall promptly to the Dried Fruits Division of the United States Food Administration, Wash ington, D. C, all price lists and circulars relating to prices on dried peaches, apples, prunes, or raisins. NoTB.^Rules 2, 3, 4, and 5 correspond to special rules 1, 2, 3,,and 4, series B, supplement 16, elfeetive March 30, 1918. Rules 4 and 5 were amended to their present form May 24 1918. Heebeet Hoovee, United States Food Administrator. June 15, 1918. Exhibit Q. [IX— Title.] UNITED STATES FOOD ADMINISTRATION— SPECIAL LICENSE REGU- LATIONS No. IX. DEALBKS AND BEOKEES IN COTTON SEED AND PEANUTS AND COTTON 6INNEES — CSUSH- EES OF COTTON SEED, PEANUTS, SOYA BEANS, PALM KBENELS, AND COPEA — ^IM- POETEES OF PEANUTS, PEANUT OIL, SOYA BEANS, SOYA-BEAN OIL, PALM KEENELS, PALM-KERNEL OIL, COPEA, COPEA OIL, AND PALM OIL, AND DEALEES AND BBOKEBS IN SUCH IMPOETED PEODUCTS — ^EEFINEES OF, AND DEALEES AND BEOKEES IN, COT- TON-SEED OIL, PEANUT OIL, SOYA-BEAN OIL, PALM-KEENEL OIL, AND COPEA OIL. Eftective July 1, 1918. This pamphlet contains all special regulations applying to the licensees named above, issued up to and including July 1, 1918. All licensees are also subject to General License Regulations No. 1, issued in a separate pamphlet. General and special regulations of this series supersede all regulations of series B as for the above licensees on July 1, 1918. COLD-STORAGE LEGISLATION. 639 [IX— A— 1, 2, 3, 4.] Special License Regulations No. IX. Note. — ^Application for a permit authorizing an exception to any of tlie fol- lowing rules should be addressed to the United States Food Administration, Washington, D. C. A. SPECIAL REGULATIONS GOVEKNING LICENSEES DEALING IN COTTON SEED AND PEA- NUTS, BROKERS, IN SUCH COMMODITIES, AND COTTON GINNERS. Rule 1. Storing facilities must 6e adequate. — The licensee shall not receive any commodities specified in his license in excess of his facilities to store same, and shall not store on the ground, in any building, or other place in such a man- ner that damage or waste will tend to result to such commodities from weather conditions or other causes. Rule 2. Cotton seed not to he sold for feed or fertilisers. — The licensee shall not, without the written consent of the United States Food Administrator, sell or use cotton seed for feed or fertilizers. Note. — This rule does no prohibit the sale of cottonseed meal for fertilizing or feeding purposes. Rule 3. Ldcensee must not pay higher prices for cotton seed or peanuts in one market than in another. — No licensee shall pay or ofCer to pay higher prices for cotton seed or peanuts in one market than he pays or offers to pay for cotton seed or peanuts of the same quality in any other market : Provided, however, That when zones are established as mentioned in the note to rule B-8, he may pay varying prices in the several zones, but must pay the same price at all points in the same zone on the same day for cotton seed or peanuts of the same quality. Rule 4. Cotton seed or peamuts to be held only 60 days. — Exceptions. — The licensee shall not store, keep on hand, or have in his possession, or under control by contract or other arrangement, cotton seed or peanuts for a longer period than 60 days : Provided, however. That he may store a quantity of less than 20 tons for such longer period as may be necessary for the requirements of his business. [IX— A — 1, 2, 3, 4, 5, 6, 7. Dec. 13, 1918. Substitute this for IX — A — 1, 2, 3, 4 and IX— A— 5, 6, 7 (a J.] Special License Regulations No. IX. Note. — Application for a permit authorizing an exception to any of the fol- lowing rules should be addressed to the United States Food Administration, Washington, D. C. A. special regulations GOVERNING LICENSEES DEALING IN COTTON SEED AND PEA- NUTS, BROKERS IN SUCH COMMODITIES, AND COTTON GINNERS. Rule 1. Storing facilities must he adequate. — (Repealed December 12, said repeal to become effective December 17, 1918.) Rule 2. Cotton seed not to he sold for feed or fertilisers.— Repealed. Decem- ber 12, said repeal to become effective December 17, 1918.) Rule 3. Licensee must not pay higher prices for cotton seed or peanuts in one- market than in another.— No licensee shall pay or offer to pay higher prices for cotton seed or peanuts in one marked than he pays or offers to pay for cotton seed or peanuts of the same quality in any other market : Provided, however, That when zones are established as mentioned in the note to Rule B-8, he may pay varying prices in the several zones, but must pay the same price at all points in the same zone on same day for cotton seed or peanuts of the same quality. Rule 4. Cotton seed or pearmts to be held only 60 days.— Exceptions r—(ne- pealed December 12, said repeal to become effective December 17, 1918.) Rule 5. Cotton seed or pearmts to he sold at not more than reasonable advance over cost— 'She licensee shall sell cotton seed and peanuts at not more than a reasonable advance over the actual cost to him of the particular cotton seed or peanuts sold without regard to the market or replacement value at the time or Note.— Effective July 1, 1918, and until further notice the United States Food Administration will regard any sale of cotton seed at advances greater than 640 OOLD-STOEAGE LEGISLATION. those indicated below over the prices paid for such cotton seed as a violation of the above rule : (1) Purchase and sale of cotton seed where the licensee provides the necessary . facilities and capital, and bears the expenses and risks incident to the business, $3 per ton (including delivery and loading of seed into cars at mills.) (2) Purchase and sale of cotton seed where the licensee operates as principal but his capital is furnished by another and his expenses and business risks and facilities in whole or in part are borne by another, or where the licensee operates as agent under his own license or under the license of another, $1.50 for each ton of cotton seed negotiated by him. The remainder of the margin as provided for in paragraph 1 shall be retained by the party or parties furnishing the capital and facilities and assuming the risks and expenses in whole or in part. (3) Any margin or commission in excess of 25 cents per ton to a licensee operating either as broker or as dealer who buys and sells cotton seed in ear lots will be regarded as unreasonable. Any commission must be paid by either the seller or final buyer out of his spread or margin, and if any dealer In car lots takes a margin for such handling the person who buys from him shall deduct such margin from his own permissible spread or margin unless it has already been deducted by the original seller. Rule 6. Carload shipments — Minimum weights. — (Repealed December 5, said repeal to become effective December 10, 1918.) Rule 7. Wasteful practices forbidden. — (Repealed December 12, said repeal to become effective December 17, 1918.) • [IX— A— 1, 2, 3, 4. Nov. 18, 1918. Insert after IX— A— 1, 2, 3, 4, 5, 6, 7.] Peanuts. — On November 13, 1918, the following rules were amended by strik- ing therefrom the word " peanuts." While the special rules governing dealers in peanuts have been canceled, peanuts are still licensed and the general license regulations (No. I) still apply. A. SPECIAL REGULATIONS GOVEKNING LICENSEES DEALING IN COTTON SEED AND PEANUTS, BBOKEES IN SUCH COMMODITIES, AND COTTON GINNEES. Rule 3. Licensee must not pay higher prices for cotton seed or peanuts in one market than in another. Rule 4. Cotton seed or peanuts to be held only 60 days. Rule 5. Cotton seed or peanuts to be sold at not more than reasonable ad- vance over cost. Rule 6. Carload shipments— minimum weights. B. SPECIAL KEGULATIONS GOVERNING LICENSEES CRUSHING COTTON SEED, PEA- NUTS, ETC. Rule 2. Licensee must not pay higher prices for cotton seed or peanuts In one market than in another. Rule 3. Stock of materials and oil limited. Rule 4. Cotton seed, peanuts, and oil not to be kept over specified time. Rule 6. Limitations in buying and selling. C. SPECIAL REGULATIONS GOVERNING IMPORTERS OF PEANUTS, ETC. Rule 1. Importers must dispose of commodities within 60 days. [IX— A— 5, 6, 7.] Rule 5. Cotton seed or peanuts to he sold at not more than reasonable advance over cost. — The licensee shall sell cotton seed and peanuts at not more than a reasonable advance over the actual cost to him of the particular cotton seed or peanuts sold without regard to the market or replacement value at the time of sale. Note.— EfEective July 1, 1918, and until further notice the United States Food Administration will regard any sale of cotton seed at advances greater than those indicated below over the prices paid for such cotton seed as a viola- tion of the above rule : COLD-STOEAGE LEGISLATION. 641 (1) Purchase and sale of cotton seed where the licensee provides the neces- sary facilities and capital, and bears the expenses and risks incident to the buslnss, $3 per ton (including delivery and loading of seed into cars at mills) (2) Purchase and sale of cotton seed where the licensee operates as prin- cipal, but his capital is furnished by another and his expenses and business risks and facilities In whole or in part are borne by another, or where the licensee operates as agent under his own license or under the license of another $1.50 for each ton of cotton seed negotiated by him. The remainder of the margin as provided for in paragraph 1 shall be retained by the party or parties furnishing the capital and facilities and assuming the risks and expenses in whole or in part. (3) Any margin or commission in excess of 25 cents per ton to a licensee operating either as broker or as dealer who buys and sells cotton seed in ear lots will be regarded as unreasonable. Any commission must be paid by either the seller or final buyer out of his spread or margin, and if any dealer in car lots takes a margin for such handling the person who buys from him shall deduct such margin from his own permissible spread or margin unless it has already been deducted by the original seller. Rule 6. Carload shipments — Minimum weights. — All carload shipments of cotton seed or peanuts shaU be made in cars loaded to their space capacity, but not to exceed truck capacity, unless a different minimum is authorized by special written permission of the United States Food Administrator. Rule 7. Wasteful practices forbidden. — Every licensee owning, controlling, or operating a ginnery shall clean seed cotton and separate the seed from the lint in an efficieftt manner. He shall not add to or mix with any cotton seed any matter which may or may not have been separated in the process of ginning. Note.- — Under the above rule such foreign substances as are removed from the seed cotton must not be returned to the seed, but the seed must be kept in a clean condition. Foreign material must not be mixed with cotton seed at any time while it is under the ginners' control or in their possession. [IX— A— 5, 6, 7 (a). Dec. 6. 1918. Substitute this (or IX— A— 5, 6, 7.] Rule 5. Cotton seed or peanuts to he sold at not more than reasonable ad- vance over cost. — The licensee shall sell cotton seed and peanuts at not more than a reasonable advance over the actual cost to him of the particular cotton seed or peanuts sold without regard to the market or replacement value at the time of sale. Note.— Effective July 1, 1918, and until further notice the United States Food Administration will regard any sale of cotton seed at advances greater than those indicated below over the prices paid for such cotton seed as a violation of the above rule : (1) Purchase and sale of cotton seed where the licensee provides the neces- sary facilities and capital, and bears the expenses and risks incident to the business, $3 per ton (including delivery and loading of seed into cars at mills). (2) Purchase and sale of cotton seed where the licensee operates as principal but his capital is furnished by another and his expenses and business risks and facilities in whole or in part are borne by another, or where the licensee operates as agent under his own license or under the license of another, $1.50 for each ton of cotton seed negotiated by him. The remainder of the margin as pro- vided for in paragraph 1 shall be retained by the party or parties furnishing the capital and facilities and assuming the risks and expenses in whole or in part. (3) Any margin or commission in excess of 25 cents per ton to a licensee operating either as broker or as dealer who buys and sells cotton seed in car lots will be regarded as unreasonable. Any commission must be paid by either the seller or final buyer out of his spread or margin, and if any dealer in car lots takes a margin for such handling the person who buys from him shall deduct such margin from his own permissible spread or margin unless it has already been deducted by the original seller. Rule 6. Carload shipments — Minimum weights. — (Repealed December 5, said repeal to become efEective December 10, 1918.) Rule 7. Wasteful practices forbidden. — Every licensee owning, controlling, or operating a ginnery shall clean seed cotton and separate the seed from the lint in an efficient manner. He shall not add to or mix with any cotton seed any matter which may or may not have been separated in the process of ginning. Note.— Under the above rule such foreign substances as are removed from the seed cotton must not be returned to the seed, but the seed must be kept in 642 COLD-STOEAGE LEGISLATION. a clean condition. Foreign material must not be mixed with cotton seed at any time while it is under the ginners' control or in their possession. [IX— A— 8, 9.] Rule 8. Unreasonable charges bv ginners prohibited. — No licensee owning, controlling, or operating a ginnery shall make any unreasonable charge for the service of cleaning seed cotton or separating the seed from the lint. Note. — The United States Food Administration may determine and announce a maximum charge that may be made by licensees for performing the service known as ginning. Ginners shall keep a correct record showing the name and address of each party for whom they gin cotton, the amount of cotton ginned in each case, and the actual charge made for such service. They must also keep a careful record showing the name and address of each party from whom they purchased cotton seed, together with the quantity and price paid for the same. They must at all times be prepared to furnish detailed information to the United States Food Administration. The charge for ginning should be the same whether or not the cotton or the cotton seed is purchased by the ginner. Ginners should gin as rapidly as possible consistent with good work all dry seed cotton tendered them, and upon demand they should return to the owner the cotton and cotton seed ginned by them. If cotton seed is purchased by the ginner, he becomes a dealer therein, and must be guided by the i)>argins indi- cated under Rule 5, above. Rule 9. Mascimum buying margin below carload market price prescribed. — A licensee who buys cotton seed in less than carload quantities for sale or ship- ment in carload quantities shall buy at a gross margin below the carload market price at railroad points, not to exceed $3 per ton. The cost of hauling from distant points to the railroad may also be deducted. [IX— B— 1, 2, 3.] B. SPECIAL BEGULATIONS GOVERNING LICENSEES CRUSHING COTTON SEED, PEANUTS. SOYA BEANS, PALM KERNELS OR COPRA, .AND DEALERS AND BROKERS IN THE RE- SULTING OILS. Note. — Crushing mills which buy and sell cotton seed or peanuts are subject in such operations to the foregoing special rules governing dealers. Crushing mills which import raw materials are subject in such operations to rules governing importers following. Application for a permit authorizing an exception to any of the following rules should be addressed to the United States Food Administration, Cottonseed Division, Washington, D. C. Rule 1. Storing facilities must be adequate. — The licensee shall not receive any commodities specified in his license, in excess of his facilities to store same and shall not store on the ground in any building, or other place In such a manner that damage or waste will tend to result to such commodities from weather con- ditions or other causes. Rule 2. Licensee must not pay higher prices for cotton seed or peanuts in one market than in another. — No licensee shall pay or ofEer to pay higher prices for cotton seed or peanuts in one market than he pays or offers to pay for cotton seed or peanuts of the same quality in any other market : Provided, however, That when zones are established as mentioned in the note to rule 8 he may pay varying prices in the several zones, but shall pay the same price at all points in the same zone on the same day for cotton seed or peanuts of the same quality. Rule 3. Stock of materials and oil limited. — The licensee shall not keep on hand or in his possession or under his control by contract or other arrangement at any time — (1) Any greater quantity of cotton seed, domestic peanuts, and domestic soya beans than shall be equivalent to its normal crushing capacity for a period of 60 days, except that a licensee crushing two or more of such commodities may hold without special permission a supply of material for 90 days' crushing if the total amount of no one of such commodities exceeds a 60 days' supply. (2) Any greater quantity of copra, palm kernels, imported soya beans, or im- ported peanuts than shall be equivalent to its normal crushing capacity for a period of six months. COLD-STOKAGE LEGISLATION. 643 (3) Any cottonseed oil, copra oil, peanut oil, soya-bean oil, palm oil, or palm- kernel oil that exceeds the equivalent of its production for two months. Note. — Sixty days are considered calendar days, equivalent to 52 working days. [IX— B— 1, 2, 3, 4, 5, 6, 7, 8, 9. Dec. 13, 1918. Substitute this for IX— B— 1, 2, 3, IX— B— 4, 5, 6, 7, and IX— B— 8, 9 (a).] B. SPECIAL REGULATIONS GOVERNING LICENSEES CRUSHING COTTON SEED, PEANUTS, SOYA BEANS, PALM KERNELS OB COPRA, AND DEALERS AND BROKERS IN THE RE- SULTING OILS. Note. — Crushing mills which buy and sell cotton seed or peanuts are subject in such operations to the foregoing special rules governing dealers. Crushing mills which import raw materials are subject in such operations to rules govern- ing importers following. Application for a permit authorizing an exception to any of the following rules should be addressed to the United States Food Administration, Cotton- seed Division, Washington, D. C. KuLE 1. Storing facilities must be adequate. — (Repealed Dec. 12, said repeal to become effective Dec. 17, 1918.) Rule 2. Licensee must not pay higher prices for cotton seed or peanuts in. one market than in another. — No licensee shall pay or offer to pay higher prices for cotton seed or peanuts in one market than he pays or offers to pay for cot- ton seed or peanuts of the same quality In any other market : Provided, hoio- ever, That when zones are established as mentioned in the note to rule 8 he may pay varying prices in the several zones, but shall pay the same price at all points in the same zone on the same day for cotton seed or peanuts of the same quality. Rule 3. Stock of materials and oil limited.- — (Repealed Dec. 12, said repeal to become effective Dec. 17, 1918.) Rule 4. Cotton seed, peanuts, and oil not to Be kept over specified time. — (Re- pealed Dec. 12, said repeal to become effective Dec. 17, 1918.) Rule 5. Licensee not to handle oil produced by others. — (Repealed Dec. 12, said repeal to become effective Dec. 17, 1918.) Rule 6. Limitations in buying and selling. — (Repealed Dee. 12, said repeal to become effective Dec. 17, 1918.) Rule 7. Cottonseed meal specifications and quotations. — The licensee shall not knowingly produce any cottonseed meal or cake testing less than 7 per cent ammonia, or Its equivalent of 36 per cent protein, and testing over 7 per cent oil. In making quotations of cottonseed meal or cake, or peanut meal or cake, upon either the protein or fat content or combination thereof, he shall not use any range of percentages, but shall state that the product offered contains not l6SS tll3.ll 9. dcfiuitG t)€rCGIlt3.£©. Rule 8. Commodities must be sold at not more than reasonable advance over cost.— The licensee shall sell the products of cotton seed, peanuts, and soya beans at not more than a reasonable advance over the average cost to the licensee of the cotton seed, peanuts, or soya beans from which such products are manufactured. A Ucensee, who operates one or more cotton ginneries or crushing mills shall keep separate accounts and make reports to show separ- ately the operations of each ; for the purpose of this rule each cotton ginnery or crushing mill shall be considered as a unit and the Ucensee shall not be per- mitted to average any costs, profits, or losses between such units. Note.— The United States >F'ood Administration will divide the cotton-pro- ducing territory of the United States into zones and it will determine and announce basic yields of oil, meal, linters, and hulls from cotton seed for each zone, and differentials or spreads to represent the difference between the price paid for cotton seed and the total amount any licensee engaged in the business of crushing cotton seed may receive from the sale of the manufac- tured products of the cotton seed. The licensee will be Permitted to sell all manufactured products in excess of the basic yields without reference to the established ma?gin, provided that the price charged for such excess products shall not exceed the average price that will be indicated for the other products "rule a^CarJoffi(? shipments— Minimum tyewftfs.— (Repealed Dec. 5, said re- peal to become effective Dee. 10, 1918.) 644 COLD-STOEAGE LEGISLATION. [IX— B— 4, 5, 6, 7.] Rule 4. CoUoii aeed, peanuts, and oil not to lie kept over specified time. — The licensee shall i-ot store or l^eep in his possession or under his control by contract or other nrrangement — (1) Any cotton seed or peanuts for a period longer than 60 days, except dur- ing the period of actual operation of his mill. (2) Any cottonseed oil, peanut oil, soya-beau oil, palm oil, palm-kernel oil, or copra oil for a period exceeding four months. Ru-LE 5. Licensee not to handle oil produced by others. — The licensee shall not buy or sell or have In his possession any cottonseed oil, peanut oil, soya- bean oil, palm oil, palm-kernel oil, or copra oil other than of his own manu- facture : Provided, That this rule shall not prevent a licensee from purchasing any such oil for use in a refinery owned by him and actually in operation. Rule 6. Limitations in buying and selling. — (a) The licensee shall not buy or sell new-crop cotton seed or peanuts grown in the United States, or any products made or to be made from such cotton seed or peanuts, before August 1 of the year covering such new crop. (&) The licensee shall not resell or dispose of any peanuts bought or con- trolled by him except by crushing, without the written permission of the United States Food Adm.inistration. (c) The licensee shall not make any contract for the purchase or sale of cottonseed meal, cottonseed cake, cottonseed hulls, peanut meal, or soya-bean meal for shipment or delivei'y more than 60 days after the making of such con- tract. (d) The licensee shall not make any contract for the sale of products ex- tracted from imported commodities, except against actual purchases of the said commodities. Rule 7. Cottonseed meal specifications and quotations. — ^The licensee shall not knowingly produce any cottonseed meal or cake testing less than 7 per cent ammonia, or its equivalent of 36 per cent protein, and testing over 7 per cent oil. In making quotations of cottonseed meal or cake, or peanut meal or cake, upon either the protein or fat content or combination thereof, he shall not use any range of percentage, but shall state that the product offered contains not less than a definite percentage. tix— B— 8, 9.] Rule 8. Gomnwdities must be sold at not more than reasonable advance over cost. — The licensee shall sell the products of cotton seed, peanuts, and soya beans at not more than a reasonable advance over the average cost to tie licensee of the cotton seed, peanuts, or soya beans from which such products are manufactured. A licensee who operates one or more cotton ginneries or crushing mills shall keep separate accounts and make reports to show sepa- rately the operations of each ; for the purpose of this rule each cotton ginnery or crushing mill shall be considered as a unit, and the licensee shall not be per- mitted to average any costs, profits, or losses between such units. Note. — ^The United States Food Administration will divide the cotton-pro- ducing territory of the United States into zones and it will determine and an- nounce basic yields of oil, meal, linters, and hulls from cotton seed for each zone, and differentials or spreads to represent the difference between the price paid for cotton seed and the total amount any licensee engaged in the business of crushing cotton seed may receive from the sale of the manufactured products of the cotton seed. The licensee will be permitted to sell all manufactured products In excess of the basic yields without reference to the established margin, provided that the price charged for such excess products shall not exceed the average price that will be Indicated for the other products in said yield. Rule 9. Car-load shipments — Minimum weights. — All car-load shipments of cottonseed, peanut, soya-bean, copra or palm- kernel oil when made in tank cars must be loaded to capacity, and all car-load shipments o\ cottonseed meal, cottonseed cake, peanut meal, peanut cake, soya-bean meal, soya-bean cake, cocohut or copra meal or coconut or copra cake, shall be made In car-loads of not less than 60,000 pounds unless a different mlnumum is authorized by spe- ial written permission of the United States Food Administrator: Provided, however, That \'ihen cars of lower carrying capacity are used the maximum load which the car will carry may be used without such permission. COLD-STOEAGE LEGISLATION. 645 [IX— B— 8, 9 (a). Dec. 6, 1918. Substitute this for IX— B— 8, 9.] Rule 8. Commodities must be sold at not more than reasonable advance over cost. — The licensee shall sell the products of cotton seed, peanuts, and soya teans at not more than a reasonable advance over the average cost to the licensee of the cotton 'seed, peanuts, or soya beans from which such products are manufactured. A licensee, who operates one or more cotton ginneries or crushing mills shall keep separate accounts and make reports to show sepa- rately the operations of each ; for the purpose of this rule each cotton ginnery or crushing mill shall be considered as a unit and the licensee shall not b6 permitted to average any costs, profits, or losses between such units. Note. — The United States Food Administration will divide the cotton-pro- ducing territory of the United States into zones and it will determine and an- nounce basic yields of oil, meal, linters, and hulls from cotton seed for each zone, and differentials or spreads to represent the difference between the price paid for cotton seed and the total amount any licensee engaged in the business of crushing cotton seed may receive from the sale of the manufactured prod- ucts of the cotton seed. The licensee will be permitted to sell all manufactured products in excess of the basic yields without reference to the established margin, provided that the price charged for such excess products shall not exceed the average price that will be indicated for the other products in said yield. Rule 9. — Carload shipments — Minimum weights. — (Repealed Dec. 5, said re- peal to become effective Dec. 10, 1918.) [IX— C— 1, 2, 3.] C. SPECIAL regulations GOVERNING IMPOETEES OF PEANUTS, PEANUT OIL, SOYA BEANS, SOYA-BEAN OIL, COPRA, COPRA OIL, PALM KERNELS, PALM-KERNEL OIL, AND PALM OIL, AND DEALERS AND BEOKEES IN SUCH IMPORTED COMMODITIES. Rule 1. Importers must dispose of commodities within 60 days. — No licensee importing copra, copra oil, or coconut oil, soya beans, or soya-bean oil, palm kernels, palm-kernel oil, or palm oil, peanuts or peanut oil, except licensees for the crushing or refining of said commodities, shall store, keep on hand, or have In his possession or under control by contract any of said imported com- modities for a period in excess of 60 days after the arrival of said commodities in the United States without the written consent of the United States Food Administrator. Rule 2. Sales can not le made except against actual purchases. — No licensee importing or dealing in any of the said commodities shall contract to sell any of the said commodities or the products extracted therefrom except against actual purchases of the said commodities. Rule 3. Copies of import contracts must be furnished to Food Administra- tion. — ^Every licensee importing any of the said commodities shall forward to the United States Food Administration at Washington, D. 0., a copy of all contracts for the purchase of any of said commodities within three days after the making thereof. [IX — C — 1, 2, 3 (a). Dec. 13, 1918. Substitute this for IX — C — 1, 2, 3.] C. SPECIAL REGULATIONS GOVEKNING IMPORTERS OF PEANUTS, PEANUT OLL, SOYA BEANS SOYA-BEAN OIL, COPRA, COPRA OIL, PALM KERNELS, PALM KERNEL OIL, AND DEALERS AND BROKERS IN SUCH IMPORTED COMMODITIES. Rule 1. Importers must dispose of commodities within 60 days. — (Repealed December 12, said repeal to become effective December 17, 1918.) Rule 2. Sales can not be made except against actual pwrcftoses.— (Repealed December 12, said repeal to become effective December 17, 1918. ) Rule 3 Copies of import contracts must be furnished to Food Admimstra- , D. SPECIAL REGULATIONS GOVERNING REFINERS OF COTTONSEED OIL PEANUT OIL SOYA-BEAN OIL, PALM-KERNEL OIL, PALM OIL, AND COPRA OIL,' AND DEALERS AND BROKERS IN SUCH REFINED OIL. Rule 1. Cottonseed oil or peanut oil not to be bought or sold before August 1. — (Repealed Dec. 12, said repeal to become effective Dec. 17, 1918 ) Rule 2. Refiners must use efficient methods. — (Repealed Dec 12 said repeal to become effective Dec. 17, 1918.) Rule 3. Contracts must provide -for delivery in four monf 7i«— (Repealed Dec 12, said repeal to become effective Dec. 17, 1918.) Rule 4. Imported oil to be sold only against actual pMrcTiase.s.— ( Repealed Dec. 12, said repeal to become effective Dec. 17, 1918.) Rule 5. Domestic oil to be sold at reasonable advance over cost. — The licensee shall sell cottonseeed oil, peanut oil manufactured from domestic peanuts and soya-bean oil manufactured from domestic soya beans, at not more than a reasonable advance over the average cost to licensee of the crude oil from which such oil was refined. The licensee may consider all refining plants operated by or controlled by such licensees as a single unit. Licensees who control mills crushing oleaginous materials must credit all raw materials ob- tained from such crushing mills at the same price at which they could pur- chase the same products in the open market at the time of transfer. Note. — The United States Food Administration will indicate from time to time what margins it considers fair. Rule 6. Carload shipments — Minimum weights. — (Repealed Dec. 5, said repeal to become effective Dec. 10, 1918.) [ IX — Supplement. ] extract FROM SPECIAL REGULATIONS GOVERNING FEEDING STUFFS, NO. XXV. So far as those regulations apply to dealers and brokers in cottonseed meal, cottonseed cake, cottonseed hulls, peanut meal, copra or coconut meal, soya- bean meal, and palm-kernel meal. Note. — The above licensees are governed by the special regulations applying to dealers in feeding stuffs printed in a separate pamphlet. The material parts are inserted here for the purpose of having all regulations in regard to cottonseed products in one pamphlet. Rule B — 1. Limitation on stock of feed under control. — The licensee shall not, without the written consent of the United States Food Administrator, or his duly authorized representative, keep on hand, or have in possession, or under control by contract or other arrangements, at any time, any feed ingredients or feeding stuffs (cottonseed meal, cake, hulls, peanut meal, copra meal, soya-bean meal, palm-kernel-meal) in a quantity in excess of the reason- able requirements of his business, for sale by him during the next 60 days: Provided, That between May 1 and November 1 he may accumulate a total stock not at any time in excess of his reasonable requirements for sale within the next 120 days. Any such stock exceeding a 60 days' supply shall not be increased after November 1, but nothing in this rule shall require its reduction to a 60 days' supply until March 1 of the following year. Rule B — 2. Feed delivered shall not give buyer excessive stock. — The licensee shall not sell or deliver to any person- any feed ingredients or feedings stuffs (cottonseed meal, etc.) without the consent of the United States Food Admin- istrator if the licensee knows or has reason to believe that such a sale or delivery will give to such person a supply of any such commodities in excess of that permitted by Rule B — 1 : Provided, That this rule shall not prevent the sale or delivery of any feed ingredients or feeding stuffs (cottonseed meal, etc.) to any person for the Federal, State, county, or municipal Governments or for the Government of any nation at war with Germany, or the sale or delivery of a carload to a licensee having only sufficient of that commodity to last until the arrival of such carload. 648 COLD-STORAGE LEGISLATION. [IX — Supplement — Continued (1).] Rule B-3. Contracts must provide for shipment in 60 days. — The licensee shall not make or have outstanding at any time any contract for the sale of any feed Ingredients or feeding StufCs (cottonseed meal, cottonseed cake, cot- tonseed hulls, peanut meal, soya-bean meal, copra or .cocoanut meal or palm- kernel meal) for shipment or delivery more than 60 days after the making of such contract : Provided, hou-ever, That this rule shall not apply to contracts with the Federal, State, county, or municipal Governments or with the Gov- ernment of any nation at war with Germany. Rule B-4. Carload shipments — Minimum loading. — All carload shipments of feeding stuffs shall be made in car lots of not less than 60,000 pounds unless a different minimum is authorized by special written permission of the United States Food Administrator : Provided, however. That when cars of lower carry- ing capacity are used the maximum load which the car will carry may be used without such permission. Rule D-1. To he sold at reasonable advance over cost of particular lot sold. — The licensee shall sell cottonseed meal, cottonseed cake, cottonseed hulls, peanut meal, copra, or cocoanut meal, soya-bean meal, and palm-kernel meal at not more than a reasonable advance over the actual cost of the particular commodity sold, without regard to the market or replacement value at the time of sale. Note. — Until further notice the United States Food Administration will regard any resale of cottonseed meal or cake at margins in excess of the following as unreasonable and In violation of the foregoing rule : Shipment from mill or in transit, payment cash, demand draft or sight draft . per ton__ $1. 00 Shipment from mill or in transit, sale on arrival draft terms ^.per ton 1. 50 Sale ex-jobber's warehouse, payment cash, sight draft or demand draft, where meal or cake is actually handled through the warehouse_per ton_- 2. 50 Sale ex-jobber's warehouse upon arrival draft terms where meal or cake is actually handled through the warehouse per ton 3. OO In making sales on credit except to other wholesalers not to exceed $1 per ton may be added to the margin which could be charged if sold on arrival draft terms. Rule D-2. New crop cottonseed products not to be bought or sold- before August 1. — ^The licensee shall not buy or sell cottonseed or peanut meal, cot- tonseed cake, or cottonseed hulls, made or to be made from new-crop cotton seed or peanuts, grown in the United States before August 1, of the year. in which such cotton crops are grown. Note. — Under special rule B-3, these products can be bought or sold after August 1 for not more than 60 days' delivery. [IX — Supplement — Continued (1) (a). Dee. 13, 1918. Substitute this for IX— Supple- ment — Continued (1) and IX — Supplement — Continued (2).] Rule B-3. Contracts must provide for .shipment in 60 days. — The licensee shall not make or have outstanding at any time any contract for the sale of any feed ingredients or feeding stuffs (cottonseed meal, cottonseed cake, cotton- seed hulls, peanut meal, soya-bean meal, copra or coconut meal or palm-kernel meal) for shipment or delivery more than 60 days after the making of such contract : Provided, however, That this rule shall not apply to contracts with the Federal, State, county, or municipal Governments or with the Government of any nation at war with Germany. Rule B-4. Car-load shipments — Minimum loading. — ^AU car-load shipments of feeding stuffs shall be made in car lots of not less than 60,000 pounds unless a different minimum is authorized by special written permission of the United States Food Administrator : Provided, however. That when cars of lower carry- ing capacity are used the maximum load which the car will carry may be used without such permission. Rule D-1. To be sold at reasonable advance over cost of particular lot sold. — The licensee shall sell cottonseed meal, cottonseed cake, cottonseed hulls, peanut meal, copra or coconut meal, soya-bean meal, and palm-kernel meal at not more than a reasonable advance over the actual cost of the particular commodity sold, without regard to the market or replacement value at the time of sale. COLD-STOEAGB LEGISLATION. 649 Note. — Until further notice the United States Food Administration will regard any resale of cottonseed meal or cake at margins In excess of the following as unreasonable and in violation of the foregoing rule: Shipment from mill or in transit, payment cash, demand draft or sight draft per ton__ $1. 00 Shipment from mill or in transit, sale on arrival draft tei:ms _do 1. 50 Sale ex-jobber's warehouse, imyment cash, sight draft, or demand draft, where meal or cake is actually handled through the warehouse-per ton 2. 50 Sale ex-jobber's warehouse upon arrival draft terms where meal or cake is actually handled through the warehouse per ton-_ 3. 00 In making sales on credit except to other wholesalers not to exceed $1 per ton may be added to the margin which could be charger the price has been fixed by the seller in conformity with said rule A — 5 and announceiisent of June 6. In no case, however, shall the added charge be in excess of the freight charge. (Opinion A — 113, July 26, 1918.) A brokerage may be paid to a broker in a permissible resale from one jobber or wholesaler to another. The brokerage must, however, be deducted from the profit of either the buyer or seller, so that the price of the goods in the course of further distribution shall not bear such brokerage. (Opinion A— 118, Aug. 26, 1918.) [XI— A— ,5 — Noto. continued (2).] WHAT RESALES ARE JUSTIFIABLE. (The following applies to all licensees governed by the rules contained in this pamphlet.) General rule 6 reads as follows : " The licensee, in selling food commodities, shall keep such commodities moving to the consumer in as direct a line as practicable and without unreasonable delay. Resales within the same trade without reasonable justification, especially if tending to result in a higher market price to the retailer or consumer, will be dealt with as an unfair practice." Service. — Any transactions that savor of trading in which a profit accrues to the dealer without corresponding service are clear violations of the rule and will subject the offender to revocation of his license and to such other penalty as the law provides. A resale that is in keeping with one of the following principles will be considered lawful under general rule 6 : (a) Continuous service. — The seller may customarily and continuously serve in less than carload lots wholesale grocers who are serving retail grocers but who are unable for some suflJcient and legitimate reason to purchase direct from the source of supply. (6) Carload buying. — A wholesaler or jobber may enjoy the benefit of car- load rates from distant points and sell to smaller wholesale grocers who are unable to buy the commodity in carload lots. (c) Warehousing. — A wholesaler or jobber may continuously and customarily furnish cold storage or other warehousing service and sell to wholesale grocers who have not adequate facilities of that character. (d) Surplus stocks. — ^A wholesaler may dispose of surplus stocks bought, not for speculation, but in good faith for the reasonably anticipated requirements of his business under the rules and regulations and which he finds himself unable to dispose of to his regular customers. The fact that such goods have COLD-STORAGE LEGISLATIOK. 663 not been warehoused by such wholesaler will be regarded as nrima facie evidence that they were not bought in good faith '''^'''"^" ^^ li"™a lacie or^obber musT^noTTf^lf ."^'^''l distributor who purchases from a wholesaler or jobber must not, under any circumstances, resell the goods in Question to a wholesaler or jobber, but must distribute directly to retaileVs or consume?" MAXIMUM -MAKGINS ON BESALES JUSTIFIED BY PERFOEMANCE OF ACTUAL SEHVICE SPECIFIED IN A, B, C, AND D, ABOVE. inhAi^tonf.J'?''^*"^-.";:^^^ ^^""^^ °^ P''°'^t enjoyed by the wholesaler or jobber selling to another wholesaler or jobber shall in no case exceed one- half of the maximum margin named for the particular commodity in the wholesalers list above. These margins shall include all cartage, storage, in- terest, and other charges. s , " 2 Purchaser's margins.— The distributor who has thus purchased within the trade shall sell the goods so purchased at not more than the lower margin indicated in the list above. MAXIMUM MAEGIN ON OTHEE RESALES. 3. On all other resales such as accommodation sales, commonly known in the trade as "pick-ups," only one wholesale profit (as indicated by the above maximum margins) is allowed, but this one allowable profit may be divided be- tween the wholesalers as they determine. SUGAR RESALES. Sugar must not be resold except in accordance with special sugar rules 1 and 2, governing wholesale dealers in sugar, immediately following. [XI— A— 5- -Note, continued (2). Not. 8, 1918. Insert this after XI- continued (2).] -A — 5 — note, MAXIMUM MARGINS ON SAXES BT EETAILEES TO CONSUMERS. (Issued Not. 7, 1918.) The Food Administration has determined that any sales of food commodities at a gross margin above delivered cost in excess of those indicated below are unreasonable, and will be regarded as prima facie evidence of a violation of the statutes and of the above regulations. Percentage may be calculated on the selling price. Delivered cost shall mean the cost at the railroad, steamboat, or other terminal in the retailer's town. Where the retailer is not located in a railroad or steamboat town, he may include any hauling charge in the delivered cost. The lesser margin indicated is not a minimum margin, but is a maximum margin for those whose cost of doing business is less, such as stores which do not perform the services of credit and delivery. Any change from the prewar practice in cash discount terms or other changes which tend to or result in increasing the margin of profit allowed will be dealt with as an unfair practice. The retailer may have the benefit of fractional costs on each transaction; that is, he 'may calculate the total charge to a customer on any transaction as if fractional costs were not allowed, and if the result is a fraction he may add thereto such fraction of a cent as may be necessary to make a price in even cents. The following table gives an example in the case of eggs, using the cash and carry margin of 7 cents per dozen : Amount of sale. Cost. Margin. Total. Fraction added. Maximum selling price. $0.46i .92 J 1-381 Cents. 7 14 21 $0,631 1.06J 1.693 i i i $0.54 2 dozen 1.07 3 dozen 1.60 664 COLD-STOEAGB LEGISLATIOBT. MAXIMUM MARGINS. Victory flour, original mill packages, one-iialf barrel quantities and more, $1 to $1.20 per barrel. Victory flour, original mill packages, one-fourth barrel quantities and less, $1.35 to $1.60 per barrel. . « Victory flour, broken mill packages, IJ cents per pound. Wheat flour, original mill packages, one-half barrel quantities and more, $1 to $1.20 per barrel. Wheat flour, original mill packages, one-fourth barrel quantities and less, $1.35 to $1.60 per barrel. Wheat flour, broken mill packages, IJ cents per pound. Barley flour, original mill packages, 18 to 22 per cent. Barley flour, broken mill packages, IJ cents per pound. Rye flour, original mill packages, 18 to 22 per cent. Eye flour, broken mill packages, li cents per pound. Corn flour, original mill packages, 18 to 22 per cent. Corn flour, broken mill packages, IJ cents per pound. Rice flour, 18 to 22 per cent. Corn meal, bulk, IJ cents per pound. Corn meal, original mill packages, 18 to 22 per cent. Hominy, 18 to 22 per cent. Sugar, all kinds, in bulk, IJ cents per pound. Sugar, all kinds, in refiners' original packages, 1 cent per pound. Evaporated milk, unsweetened, 18 to 22 per cent. Oatmeal and rolled oats, bulk, IJ cents per pound. Oatmeal and rolled oats, original mill packages, 20 to 25 per cent. Rice, 20 to 25 per cent. Beans, white or colored, 20 to 25 per cent. Starch, edible, 20 to 25 per cent. Corn sirup, tins,' 20 to 25 per cent. Canned corn, peas, and tomatoes, standard grades, 25 to 30 per cent. Canned salmon — chums, pink, and red, 25 to 30 per cent. Canned sardines, domestic, 25 to 30 per cent. Dried fruit, raisins, prunes, and peaches, 25 to 30 per cent. Lard, pure leaf, bulk, 5 to 6 cents per pound. Lard, pure leaf, tin, 18 to 22 per cent. Lard substitutes, bulk, 5 to 6 cents per pound. Lard substitutes, tins, 18 to 22 per cent. Breakfast bacon, whole pieces, 6 to 7 cents per pound. Heavy bacon, whole pieces, 5 to 6 cents per pound. Hams, smoked, whole, 6 to 7 cents per pound. In quoting sliced ham and bacon add usual difEerential to cover actual shrinkage. " Original mill packages " as used above means where retailer sells product in the same mill container as received by him. " Broken mill packages " means when retailer removes contents from original mill packages and sells in smaller quantities. By other special regulations the retailers' maximum margins have also been fixed in accordance with the following list: Potatoes, white or Irish, 25 to 30 per cent. Onions, 25 to 30 per cent. Eggs (whether sold in carton or not), 7 to 8 cents per dozen. Butter, 6 to 7 cents per pound. Butter substitutes, oleomargarine, nut margarine, etc., 5 to 6 cents per pound. Cheese— American, Cheddars, Twins, Flats, Daisies, long Horns, and Y. A.'s, 7 to 8 cents per pound. rXI— B, Title amended.] EflCective July 1, 1918. B. The title " Refined sugar " is amended to read as follows : " Cane and beet sugar." [XI— B— 1, 2, 3.] B. KEFINED SUGAR. Rule 1. Profit on sugar purchased -from refiner. — ^No wholesale dealer in re- fined sugar who purchases such sugar from the producer or refiner, direct or COLD-STORAGE LEGISLATION. 665 tlirough a broker, shall sell such sugar at an adxance over the refiner's list price at which he purchased such sugar greater than the normal margin charged by wholesale dealers in refined sugar In the same locality or such margin as may hereafter be established by the Food Administration. (This rule corresponds to special rule 1, series B, governing wholesale dealers in sugar.) Note.— This rule applies to plantation granulated sugar. Utile 2. Profit on sugar obtained from other than refiner. — It will be con- sidered an unreasonable practice if .two or more wholesale dealers handle the same sugar at a greater total margin than that prescribed by Rule 1. No wholesale dealer or other licensee who purchases refined sugar from any person other than the producer or refiner shall sell such sugar to a retailer or to a person, using such sugar in manufacturing at a price representing an advance over the producer's or refiner's list price on the day of such sale greater than the advance allowed by the preceding rule to a wholesale dealer in the locality where such sale occurs. (This rule corresponds to special rule 2, series B, governing wholesale dealers in sugar.) Rule 3. Retail sales must he made at not more than reasonable advance over cost. — The licensee shall seU sugar at retail at not more than a reasonable advance over the actual purchase price of the particular goods sold, without regard to the market or replacement value at the time of such sale. [XI— B— 3— Note.] WHOLESALE QBOCEES AND JOBBEKS MARGINS. See schedule of margins on page 9, under special rule A-5. BETAIL DEALEES, LICENSED AND UNLICENSED MAKGINS. The Food Administration has not the power to license retailers doing a business of less than $100,000 a year, but they are nevertheless subject to the other provisions of the statute, including those as to hoarding, speculation, com- bination, and excessive profits. The United States Food Administration regards 1 cent a pound as the reason- able margin on sugar sold at retail. RESTRICTION ON QUANTITIES OF SUGAR TO BE SOLD. Whilesale grocers should exercise great care, according to the demands of the retailer, and should not sell sugar in quantities in excess of 300 to 1,000 pounds at a time to a buyer. Sugar should not be shipped without a positive order from the buyer. Wholesale grocers should use every precaution at their command to prevent duplication of sales which may give to a retailer the opportunity to have more sugar than is necessary for the conservative distribution. Retailers: Sugar should be sold to town and city consumers in not more than 2 to 5 pound quantities ; to farm and rural customers in not more than 5 to 10 pound quantities. The Federal food administrator in each State may grant exceptions to the above rule concerning the quantities which wholesale and retail grocers may sell to any customer at one time. The Federal administrator in each State may make such exceptions in accordance with the facts presented to him by the dealer desiring such privilege to sell sugar in quantities larger than above stated, and the administrator should at once report such exceptions to the Dis- tribution Division of the Food Administration at Washington. In no case, however, may sugar be sold in such quantities as to result in hoarding. Retailers may sell consumers sugar in quantities sufllcient for home canning purposes by obtaining a prescribed certificate that the sugar is to be used for such purpose and that any surplus will be returned. For further information consult your Federal food administrator. Mail-order houses may offer sugar for home canning in .25-pound lots, using the above-mentioned certificate plan. ADVERTISING. The Food Administration does not approve of advertisements of sugar nam- ing special prices, deals, schemesj or other inducements that would tend to 6(56 COLD-STORAGE LEGISLATION. lead the consumer to purchase sugar in quantities larger than his ordinary requirements, and we ask that such advertisements be discontinued. The Food Administration does not object to advertisements directing atten- tion to a particular brand, style, or quality of sugar. [XI— B— .3— Note (a). Dec. 4, 1918. Substitute this for XI— B— 3— Note.] WHOLESALE GEOCERS AND JOBBERS MARGINS. See schedule of margins under special rule A-5. RETAIL DEALERS, LICENSED AND UNLICENSED MARGINS. The Food Administration has not the power to license retailers doing a busi- ness of less than $100,000 a year, but they are nevertheless subject to the other provisions of the statute, including those as to hoarding, speculation, combina- tion, and excessive profits. The United States Food Administration regards 1 cent a pound as the reason- able margin on sugar sold at retail. RESTRICTION ON QUANTITIES OF SUGAR TO BE SOLD BY WHOLESALERS. Wholesale grocers should exercise great care, according to the demands of the retailer, and should not sell sugar in quantities of 300 to 1,000 pounds at a time to a buyer. Sugar should not be shipped without a positive order from the buyer. Wholesale grocers should use every precaution at their command in prevent duplication of sales which may give to a retailer the opportunity to have more sugar than is necessary for conservative distribution. (The remainder of page XI — B — 3 — Note was canceled on Dec. 3, 1918. The restrictions upon the advertising of sugar have been removed.) [XI— B— 3 — Note (b). Dec. 13, 1918. Substitute this for XI— B— 3— Note (a).] WHOESALE GROCERS AND JOBBERS MARGINS. See schedule of margins under special rule A-5. RETAIL DEALERS, LICENSED AND UNLICENSED MARGINS. The Food Administration has not the power to license retailers doing a busi- ness of less than $100,000 a year, but they are nevertheless subject to the other provisions of the statute, including those as to hoarding, speculation, combina- tion, and excessive profits. See blue page XI — A — 5 — Note, (continued), for retailer's margins. EBSTEICTION ON QUANTITIES OF SUGAR TO BE SOLD BY WHOLESALERS. Rule XI — A — 3 applies. (Not more than 60 days' supply.) ADVERTISING. The restrictions upon the advertising of sugar have been removed. LXI— B— 4, 5.] Rule 4. Sugar to he distributed equitably. — The wholesaler and retailer shall distribute sugar equitably among his customers, so that no one of such cus- tomers receives more than his fair share of the sugar which may then be available for distribution. Rule 5. Certificates must be furnished by purchasers. — On and after May 15, 1918, the wholesaler and retailer shall not ship or deliver sugar to any person engaged in any business of manufacturing, bottling, packing, or preparing prod- ucts in which sugar is used until he has received from such purchaser a certificate or certificates, duly indorsed by the buyer and issued to the buyer by the Federal food administrator for the State In which the buyer Is located, certifying that the total amount of sugar to be sold or delivered will not give the buyer more than his fair share of the sugar then available for distribution in the United States. COLD-STOEAGE LEGISLATION. 667 This rule shall not apply to shipments or deUveries on bona fide contracts enforceable at law made prior to May 15, 1918. This rule shall not apply to sales or deliveries to (a) hotels, restaurants boarding houses, or other public eating places whose products are sold for con- sumption on the premises; (6) wholesale or retail dealers in sugar holding a license from the United States Food Administration; (c) bakers and cracker manufacturers holding a baker's license from the United States Food Adminis- tration. Note.— Among the classes in selling to whom certificates must be required are the following, but the list is not absolutely complete : (a) Manufacturers of apple butter, beverage sirups, candy, catsup, cereals, chewing gum, chili sauce, chocolate, cocoa, condiments, confectionery, flavoring extracts, fruit preserves, fruit sirup, glycerin, honey, invert sugar, ice cream, jam, jelly, meat products, medicines, preserves, pickles, soda water, soft drinks, sirups, tobacco, vinegar, wine. (6) Canners, preservers, and packers of every kind of vegetables, fruit, milk, and meat. (c) Soda-water fountains and dispensers of soft drinks. (d) Bottlers of soft drinks. (e) Leather tanners and manufacturers of nonedible products (use of sugar prohibited). Certificates are not required in selling to licensed wholesalers, retailers, or bakers, even though they use sugar in the manufacture of other products, because the use of sugar by such dealers will be controlled directly by license regulation. Certificates are not required in sales to lijdividual consumers or in sales to unlicensed retailers of sugar not engaged in a manufacturing business. [XI — B — 4, 5, amended.] Bfeective July 1, 1918. Rule 4. Sugar to he distributed equitably. — The wholesaler and retailer shall distribute sugar equitably among his customers, so that no one of such customers receives more than his fair share of the sugar which may then be available for distribution. He shall not sell sugar to individual consumers residing in towns or cities in more than 2-pound lots, nor to individual con- sumers in rural or farm communities in more than 5-pound lots, without the written permission of the Federal food administrator of his State, provided that without such permission additional sugar may be delivered for home can- ning upon the purchaser complying with such requirements as may be issued by the Federal food administrator for the State in question. Rule 5. Sugar to be delivered by wholesalers only upon receipt of sugar-dis- tribution certificates. — On and after July 1, 1918, the wholesaler or jobber shall not ship or deliver sugar to any person whomsoever until he has received from such purchaser a certificate or certificates issued by a Federal food adminis- trator to some retailer, public eating place, manufacturer, baker, or other person in his State, certifying that the total amount of sugar to be sold or delivered upon such certificate will not give the person to whom issued more than his fair share of the sugar then available for distribution in the United States. Such certificate shall not be valid unless indorsed by the person to whom issued, and also by any other person through whose . hands It has passed. Note. — This rule applies to all deliveries by wholesalers and supersedes for- mer rule 5, effective May 15, which required certificates only in delivering to manufacturers. This rule applies to all deliveries, whether contracts therefor were made before July 1 or not. It applies to all types of cane and beet sugar without exception. The above rule supersedes rules B— 4 and B— 5 of the special license regula- tions that govern wholesalers, retailers, etc., in handling sugar. [XI— B — i, 5 (b). Oct. 5, 1918. Substitute this for XI— B — 4, 5, amended.] Rule 4 (as amended, effective Oct. 15, 1918). Sugar to be distributed equita- bly.— The wholesaler and retailer shall distribute sugar equitably among his customers so that no one of such customers receives more than his fair share of the sugar which may then be available for distribution. He shall not deliver from the 1st to the 15th day of any month, nor from the 16th to the last day 137690—19 43 668 COLD-STOBAGE LEGISLATION. of any month, to any individual consumer more than 1 pound for each person in his household or establishment, provided that the Federal food adminis- trator of any State may authorize the monthly allotment of 2 pounds per person to be delivered in any other prescribed manner in any city, county, or district in his State. Note. — The canning season being over, there vcill be no more allotments for canning. RtTLE 5. Sugar to he delivered by wholesalers only upon receipt of sugar-dis- tribution certificate.— On and after July 1, 1918, the wholesaler or jobber shall not ship or deliver sugar to any person whomsoever until he has received from such purchaser a certificate or certificates issued by a Federal food administra- tor to some retailer, public eating place, manufacturer, baker, or other person in his State certifying that the total amount of sugar to be sold or delivered upon such certificate will not give the person to whom issued more than his fair share of the sugar then available for distribution in the United States. Such certificate shall not be valid unless indorsed by the person to whom issued and also by any other person through whose hands it has passed. Note. — This rule applies to all deliveries by wholesalers and supersedes former rule 5, effective May 15, which required certificates only in delivering to manufacturers. This rule applies to all deliveries, whether contracts therefor were made before July 1 or not. It applies to all types of cane and beet sugar without exception. [XI— B— 4, 5 (c). Nov. 16, 1918. Substitute this for XI— B— 4, 5 (b).] Rtji-e 4 (as amended Nov. 12, 1918, effective Dec. 1, 1918). Sugar to be dis- tributed equitably. — The wholesaler and retailer shall distribute sugar equitably among his customers so that no one of such customers receives more than his fair share of the sugar which may then be available for distribution. He shall not deliver from the 1st to the 15th day of any month, nor from the 16th to the last day of any month, to any individual consumer more than 2 pounds for each person in his household or establishment, provided that the Federal food ad- ministrator of any State may authorize the monthly allotment of 4 pounds per person to be delivered in any other prescribed manner in any city, county, or district in his State. Rule 5. Sugar to be delivered by wholesalers only upon receipt of sugar dis- tribution certificates.- — On and after July 1, 1918, the wholesaler or jobber shall not ship or deliver sugar to any person whomsoever until he has received from such purchaser a certificate or certificates issued by a Federal food adminis- trator to some retailer, public eating place, manufacturer, baker, or other person In his State, certifyig that the total amount of sugar to be sold or delivered upon such certificate will not give the person to whom issued more than his fair share of the sugar then available for distribution in the United States. Such certificate shall not be valid unless indorsed by the person to whom issued and also by any other person through whose hands it has passed. Note. — This rule applies to all deliveries by wholesalers and supersedes former rule 5, effective May 15, which required certificates only in delivering to manufacturers. This rule applies to all deliveries, whether contracts therefor were made before July 1 or not. It applies to all types of cane and beet sugar without exception. [XI — B — 4, 5 (d). Nov. 26, 1918. Substitute this for XI— B— 4, 5 (c).] Rule 4 (as amended Nov. 22, 1918, effective Dec. 1, 1918). Sugar to be dis- tributed equitably. — The wholesaler and retailer shall distribute sugar equi- tably among his customers so that no one of such customers receives more than his fair share of the sugar which may then be available for distribution. The retailer shall not deliver during any one month to any individual consumer more than 4 pounds of sugar for each person in the buyer's household or establishment. Rule 5. Sugar to be delivered by wholesalers only upon receipt of sugar distribution certificates. — On and after July 1, 1918, the wholesaler or jobber shall not ship or deliver sugar to any person whomsoever until he has received from such purchaser a certificate or certificates issued by a Federal food admin- istrator to some retailer, public eating place, manufacturer, baker, or other person in his State certifying that the total amount of sugar to be sold or delivered upon such certificate will not give the person to whom issued more than his fair share of the sugar then available for distribution in the United COLD-STORAGE LEGISLATION. 669 States. Such certificate shall not be valid unless indorsed by the person to whom issued and also by any other person through whose hands it has passed N0TE.^This rule applies to all deliveries by wholesalers and supersedes former rule 5, effective May 15, which required certificates only in delivering to manufacturers. This rule -applies to all deUveries, whether contracts there- for were made before July 1 or not. It applies to all types of cane and beet sugar without exception. {XI— B— 4, 5, 6, 7. Dee. 4, 1918. Substitute this for XI— B — i, 5 (d) and XI— B— 6 7 amended.] ' Rule 4. Sugar to be distributed equitably. (Repealed Dec. 3, 1918.) Rum 5. "Sugar to be delivered by wholesalers only upon receipt of sugar- distribution certificates." (Repealed Nov. 27, effective Dec. 1, 1918.) Rule 6. " Sugar to be delivered by retailers to public eating places, manufac- turers, and bakers only upon receipt of sugar-distnbution certificates." (Re- pealed Nov. 27, effective Dec. 1, 1918.) Rule 7. " Wholesalers and retailers to buy only upon presenting certificates and to use sugar in their own manufacturing only upon obtaining manufac- turer's certificate:' (Repealed Nov. 27, effective Dec. 1, 1918.) [XI — B — 4, 5. Insert this after XI — B — 4, 5, amended.] The rules which prohibit the delivery of sugar except upon the receipt of sugar-distribution certificates from the purchaser apply to sugar to be shipped from the United States to Porto Rico or Hawaii. The refiners located in Porto Rico and Hawaii will be permitted to deliver sugar to buyers in those Terri- tories without such certificates, but shipments from the United States must not be made without the express permission of the Federal food adminisrators in those Territories. For the present the rules requiring sugar-distribution certifi- cates will not apply to the shipment of sugar to Alaska for the reason that sugar must be distributed to that country only during a short period of the year, owing to traffic blocliades during the winter due to climatic conditions. (Ef- fective Aug. 14, 1918.) [XI— B— 6, 7.] Rule 6. Canceled certificates to be sent to Federal food administrator. — The wholesaler or retailer shall cancel immediately upon receipt and mall on the 1st of each month to the Federal food administrator whose name is signed thereto all sugar certificates received by him during the preceding month. Rule 7. Wholesaler or retailer not to use sugar in manufacturing without per- mission of Federal food administrator. — The wholesaler or retailer shall not, after May 15, 1918, use sugar in the manufacture, bottling, pacliing, or prepara- tion of any other product until he has obtained from the Federal food adminis- trator of the State where such product is manufactured or prepared certifi- cates that the total amount of sugar to be so used will not exceed his fair share of the sugar then available for distribution. He shall use no sugar in. excess of the amount called for by the certificates issued to him. The licensee shall not buy sugar for such purposes without turning in a certificate for the amount purchased. In transferring sugar from his wholesale or retail stock for such purpose he shall cancel certificates representing the amount of sugar so trans- ferred, and shall -file them at the end of each month with the Federal food administrator whose name is signed thereto. Note. — Rules 4, 5, 6, and 7 were promulgated May 2, 1918. [XI — B — 6, 7, amended, effective July 1, 1918.] Rule 6. Sugar to be delivered by retailers to public eating places, manufac- turers, and bakers only on receipt of sugar-distribution certificates. — On arid after July 1, 1918, a retailer shall not ship or deliver sugar to any person operating a public eating place, or operating a boarding house or institution serving regularly 25 persons or more, or engaged in the business of manufactur- ing, bottling, packing, or preparing products (including bakery products) in which sugar is used until he has received from such purchaser a certificate or certificates duly indorsed by the buyer and issued to the buyer by the Federal food administrator for the State in which the buyer is located, certifying that the total amount of sugar to be sold or delivered will not give the buyer more than his fair share of the sugar then available for distribution in the United States. Note. — The retailer may deliver without a sugar-distribution certificate to individual consumers complying with any agreement made by him in obtaining his own certificates from the Federal food administrator in his State. 670 COLD-STORAGE LEGISLATION. Rule 7. Wholesaler and retailer to buy only on presenting certificates, and to use sugar in their oion manufacturing only upon obtaindng manufacturers' certificates. — Tbe wholesaler or retailer shall not, after July 1, 1918, use sugar in the manufacture, bottling, packing, or preparation of any other product until he has obtained from the Federal food administrator of the State where such product is manufactured or prepared certificates that the total amount of sugar to be so used will not exceed his fair share of the sugar then available for distribution. He shall use no sugar In excess of the amount called for in the certificates issued to him. He shall not buy sugar for any purpose without turning in certificates issued to him or turned in to him by other persons upon deliveries of sugar for the amount purchased. Note. — This rule supersedes former rule 7, effective May 15, 1918. The above rules supersede rules B-B and B-7 of the special license regula- tions that govern wholesalers, retailers, etc., in handling sugar. [XI— B — 8 (new), effective Aug. 1, 1918. July 31, 1918. Insert after XI— B— 6, 7.] Rule 8. Wholesaler to deliver to Federal food administrator certificates in amounts of interim certificates issued to him. — The wholesaler shall deliver to the Federal food administrator of the State where he Is located, on or before August 25, 1918, sugar-distribution certificates out of the interim certificates Issued to him or out of certificates received by him upon sales of sugar to others, in an amount equal to one-fourth of all interim certificates issued directly to him for the month of July ; and on or before October 15 in an additional amount equal to three-fourths of all interim certificates issued directly to him for the month of July. He shall not use any of such certificates for the purpose of buying sugar. Note. — Interim certificates were issued to many wholesalers for the month of July in order to prevent any holdup in the distribution of sugar from the refineries pending the installation of certificate system. Hereafter certificates for each month will be issued before the first of the month, and there is no reason why jobbers should not be able to do business veith a stock equal to that held on July 1, to be replenished only when new certificates are turned in by retailers or others. [XI— B— 8, 9 (new), effective Aug. 1, 1918. Sept. 26, 1918. Substitute this for XI— B— 8.] Rule 8. Wholesaler to deliver to Federal food administrator certificates in amounts of interim certificates issued to him. — The wholesaler shall deliver to the Federal food administrator of the State where he is located, on or before August 25, 1918, sugar distribution certificates out of the interim certificates Issued to him or out of certificates received by him upon sales of sugar to others, in an amount equal to one-fourth of all interim certificates issued directly to him for the month of July, and on or before October 15 in an addi- tional amount equal to three-fourths of all interim certificates issued directly to him for the month of July. He shall not use any of such certificates for the purpose of buying sugar. Note. — Interim certificates were issued to many wholesalers for the month of July in order to prevent any holdup in the distribution of sugar from the refineries, pending the installation of certificate system. Hereafter certificates for each month will be issued before the 1st of the month, and there is no reason why jobbers should not be able to do business with a stock equal to that held on July 1, to be replenished only when new certificates are turned in by retailers or others. . Rule 9. Sale of powered sugar limited (new, Sept. 20, 1918, effective Oct. 10, 1918). — The licensee shall not sell powdered sugar for domestic consumption or any other purposes other than commercial manufacturing and for commercial baking. [XI — B— 8, 9 (a). Nov. 16, 1918. Substitute tliis lor XI — B — 8, 9.] Rule 8. Wholesaler to deliver to Federal food administrator certificates in amounts of interim certificates issued to him. (Repealed Nov. 12, 1918.) Rule 9. Sale of poiodered sugar limited. (Repealed Nov. 12, 1918.) [XI— c— 1, 2, 3.] C. WHEAT FLOUB. Mixed flour that consists of more than 50 per cent wheat flour is considered to be wheat flour for the purpose of these rules except rules 8, 10, and 12. COLD-STOKAGE LEGISLATION. 671 ■ ^^^^ }■ J'lour supply limited to SO davs' requirements.-— No licensee dealing in wheat flour shall keep on hand or have in his possession at any time anv fn. „«rnV LI '^"^"tlty *>? excess of the reasonable requirements of his business for use or sale by him during the period of 30 days, provided that this rule shall not prevent any licensee from having on hand not to exceed a carload of sucn flour. Note.— This rule corresponds to special rule 6, series B, governing dealers in wheat flour. It is not necessary to dispose of any particular quantity of flour within 30 days after it is received. The rule is complied with if at any given time there IS qn hand a supply not in excess of reasonable requirements during the period of 30 days next ensuing, and orders may be placed so that the permitted stock may be maintained. Rule 2. Contracts for delivery of flour more than 30 days ahead prohib- tted.—No licensee dealing in wheat flour shall make or have oustanding at any time any contract for the sale of wheat flour except such contracts as require shipment or delivery within 30 days after the making of such contracts • Pro- vided, however, That this rule shall not apply to contracts with the Federal Government or with the government of any nation at war with Germany. (This rule corresponds to special rule 7, series B, governing dealers In wheat flour. ) Rule 3. Must not sell or deliver more than 30 days' supply of flour. — No licensee dealing in wheat flour shall deliver any such flour to any person know- ing that such delivery will give such person a supply thereof in excess of Ms reasonable requirements for use or sale by him during the period of 30 days next succeeding the delivery thereof: Provided, That this rule shall not pre- vent a licensee from selling or delivering to another licensee a carload of such flour. (This rule corresponds to special rule 8, series B, governing dealers In wheat flour. ) [XI— C— 1, 2, 3 (a). Aug. 27, 1918. Substitute this for XI— C— 1, 2, 3.] C. WHEAT FLOUK. Mixed flour which consists of more than 50 per cent wheat flour Is considered to be wheat flour for the purpose of these rules, except rules 8, 10, and 12. Rule 1 (as amended Aug. 27, 1918, efCective Sept. 1, 1918). Flour supply lim- ited to 60 days' requirements. — No licensee dealing In wheat flour shall keep on hand or have in his possession at any time any such flour not sold or contracted to be sold in a quantity In excess of the reasonable requirements of his business for use or sale by him during the period of 60 days. Note. — It is not necessary to dispose of any particular quantity of flour within 60 days after It is received. The rule is complied with If at any given time there is on hand a supply not in excess of reasonable requirements during the period of 60 days next ensuing, and orders may be placed so that the per- mitted stock may be maintained. Rule 2. Contracts for delivery of flour more than 30 days ahead prohibited. — No licensee dealing In wheat flour shall make or have outstanding at any time any contract for the sale of wheat flour, except such contracts as require ship- ment or delivery within 30 days after the making of such contracts : Provided, however. That this rule shall not apply to contracts with the Federal Govern- ment or with the government of any nation at war with Germany. (This rule corresponds to special rule 7, series B, governing dealers in wheat flour. ) Rule 3 (as amended Aug. 27, 1918, effective Sept. 1, 1918). Must not sell or deliver more than 60 days' supply of flour. — No licensee dealing in wheat flour shall deliver any such flour to any dealer or baker knowing that such delivery will give such person a supply, not sold or contracted to be sold, In excess of his reasonable requirements for use or sale by him during the period of 60 days next succeeding the delivery thereof. [XI— C— 1, 2, 3 (b). Not. 16, 1918. Substitute this for XI— C— 1, 2, 3 (a). J 0. WHEAT FLOUB. Note. — Mixed flour that consists of more than 50 per cent wheat flour is considered to be wheat flour for the purposes of these rules. 672 COLD-STOEAGE LEGISLATION". Rule 1 (as amended Nov. 12, 1918). Flour supply UmiteA to 90 days' require- ments. — No licensee dealing in wheat flour shall keep on hand or have in his possession at any time any such flour not sold or contracted to be sold in a quantity in excess of the reasonable requirements of his business, for use or sale by him during the period of 90 days : Provided, That this rule shall not prevent the licensee from having on hand not to exceed a carload of such flour. Rule 2 (as amended Nov. 12, 1918). Contracts for delivery of flour more than, 60 days ahead prohibited. — ^No licensee dealing in wheat flour shall make or have outstanding at any time any contract for the sale of wheat flour, except such contracts as require shipment or delivery within 60 days after the making of such contracts : Provided, however. That this rule shall not apply to con- , tracts with the Federal, State, county, or municipal governments or with the government of any nation at war with Germany. Rule 3 (as amended Nov. 12, 1918). Mv^st not sell or deliver more than 90 days' supply of flour. — ^No licensee dealing in wheat flour shall deliver any such flour to any dealer or baker knowing that such delivery will give such person a supply, not sold or contracted to be sold, in excess of his reasonable require- ments for use or sale by him during the period of 90 days next 'succeeding the delivery thereof : Provided, That this rule shall not prevent the sale or deUvery of a carload of such flour to any licensee. [XI— C— 4.] Rule 4. Must use pi-escribed flour contract form. — ^The licensee shall not sell any wheat flour In quantities of 25 barrels or more except by signed contract in the form prescribed below. The licensee shall not sell wheat flour in quantities less than 25 barrels without stipulating that the terms of the contract prescribed below shall prevail. (This rule corresponds to special rule 9, series B, governing dealers in wheat flour. ) FORM OF CONTEAQT KEFERKED TO IN RULE C 4. Contract No Date , 19.- . of _ _ _ _ _ sell, and of - - buy, the following articles, on the terms and conditions stated below : Time of /Shipment iime or ^Delivery within. Shipment or delivery periods to be ^ Destination Routing Terms payment Draft, through- Bank of No. of packages. Size. Kind. Brand. Price. Give rate basis, destinationy or place of delivery. [XI— C — 4— (a). Aug. 27, 1918. Substitute this for XI— C— 4.] Rule 4 (as amended Aug. 27, 1918, effective Sept. l) 1918). Uniform flour contract prescribed. — The licensee shall not sell any wheat flour. in quantities of 50 barrels or more except by signed contract in the form prescribed below. The licensee shall not sell wheat flour In quantities less than 50 barrels with- out stipulating that the terras of the contract prescribed below shall prevail. COLD-STOKAGE LEGISLATION. 673 Contract No.. FORM OF CONTRACT KEFIKEED TO IN RULE C 4. Date -19- of .sell, and of buy, the following articles, on tlie terms and conditions stated below : Time of I Shipment lime 01 ^Delivery within Shipment or delivery periods to be Destination Routing ^ Terms payment Draft, through Bank of No. of packages. Size. Kind. Brand. Price. Give rate basis, destination or place or delivery. [XI — C— 4— Continued.] TERMS AND CONDITIONS. (1) Food Administration regulations. — It is understood and agreed that the buyer and seller shall conform to all regulations promulgated by the United States Food Administration. (2) Net weights. — Flour shall be sold upon the basis of net weights when packed, and the determining factor as to weight shall be a moisture content not in excess of Government allowance. (3) Contract not subject to change. — It is understood that there are no con- ditions, representations, or warranties, verbal or otherwise, and that there shall be no assignment or cancellation of this contract, except as herein stated, and no agent or representative has authority to modify the printed terms of (4) Shipment within SO days. — It is understood and agreed that the above order shall be shipped or delivered as specified within 30 calendar days, dated from time when the order is taken. (5) Nonextension of time.— There shall be no extension of the time of ship- ment or delivery under this contract, except as herein specified. (6) Buyer's nonfulfillment of contract.— It the buyer shall refuse to accept any shipment or delivery as specified hereunder, or fail to file with the seller within 15 days of the date of the order, shipping instructions permitting the seller to ship at his option within the remaining period of the contract, or to perform any of the terms of this agreement, then the seller may, at its option, and upon due notice to the buyer, cancel this contract and the buyer shall pay to the seller an entry charge of 2.5 cents per barrel on flour and 50 cents per ton on feed. The seller may pursue such other remedies as the law may provide. On the refusal or neglect by the buyer to accept any shipment or delivery as specified hereunder and (or) to perform any of the terms of this agreement the seller may treat such refusal or neglect as a breach of the entire contract, for which the seller is entitled immediately to avail himself of any rights in this contract specified; but, except for reason or reasons specified herein, if the shipment or delivery as specified is not executed within 30 days from date ot contract, it shall be canceled, and payment of charges above specified shall be made by the buyer to the seller. ^ ,, ^ ., ,^„ t *„^ (7) Seller's nonfulfillment of contract.— It the seller shall fail (except for the reasons herein specified) to make any shipment or delivery as specified within the time indicated by this contract, then the buyer may, at his option, cancel the shipment or delivery, snd in event of such default the seller shall, 674 COLD-STOEAGE LEGISLATION. upon demand, pay to the buyer the sum of 25 cents per barrel on flour, and 50 cents per ton on feed, and the buyer may pursue such other remedies as the law provides. (8) Exceptions to seller's responsiMlity.—Wor delay in making shipment or delivery as specified, occurring through the fulfillment of Government contracts, or through fire, strikes, or laibor difficulties, or failure of governmental agencies to supply wheat, acts of carriers, or similar causes beyond the contol of the seller, the seller is not responsible. (9) Package differentials. — Both buyer and seller agree herewith to accept the basis of package difterentials specified on the back hereof. . Seller, By . , Buyer, By — . [XI — C— 4 (a) — Continued. Aug. 27, 1918. Substitute this for XI — C — 4 — Continued.] TEKMS AND CONDITIONS. It is understood and agreed — (1) Food Administration regulations. — That the buyer and seller shall con- form to all regulations promulgated by the United States Food Administration. (2) Net weights. — That the wheat fiour and wheat-mill feed covered by this contract is sold on the basis of net weights when packed, and the determining factor as to weight shall be a moisture content not in excess of Government allowance. (3) Contract not subject to change. — That there are no conditions, represen- tations, or warrants, oral or otherwise, and that there shall be no assignment or cancellation of this contract except as herdin stated, and that no agent or representative has authority to modify the printed terms of this contract. (4) Shipments within 30 days. — That the above order shall be shipped or de- livered as specified within 30 days from the time that the order is confirmed by the seller unless a shorter time is expressly provided. (5) Routing. — That the seller shall have the right to route all shipments un- less otherwise stated in this contract. (6) Nonextension of time. — That there shall be no extension of the time of shipment or delivery under this contract except as herein specified. (7) Buyer's nonfulfillment of contract. — That if the buyer shall fall to file with the seller within 15 days of the date of confirmation of this contract ship- ping instructions permitting the seller to ship at his option within the remain- ing period of the contract, then the seller may cancel this contract and the buyer shall pay to the seller an entry charge of 25 cents per barrel on flour and 50 cents per ton on feed, plus or minus the market difference, provided that if such shipping instructions are received before the expiration of 30 days from the date of confirmation of this contract, and prior to any cancellation being sent, the seller's right to cancel shall cease. If the buyer shall refuse to accept any shipment or delivery as specified hereunder or fail to perform any of the other terms of this agreement then the seller may cancel this contract and the buyer shall pay to the seller the entry charge above provided, plus or minus the market difference. In addition thereto the seller may pursue such further reme- dies as the law may provide. (8) Seller's nonfulfillment of contract. — That if the seller shall fail except for the reasons specified in paragraph 9 of this contract to make any shipment or delivery as specified then the buyer may at his option cancel this contract at any time before actual shipment, and the seller shall pay to the buyer the sum of 25 cents per barrel on fiour and 50 cents per ton on feed, plus or minus the market difference. The buyer may pursue such further remedies as the law may provide. (9) Exceptions to seller's responsibilities. — ^That if this contract can not be performed by the seller within the time specified, because of Government con- tracts not in contemplation at the time of the contract, or because of fires, strikes, labor difliculties, acts of carriers, or other causes beyond the control of the seller, and if the seller notifies the buyer of such inability, stating the spe- cific cause, as soon as he knows that such inability will prevent performance and in any event on or before the date of shipment or delivery, the seller shall not be responsible for failure to perform. In such event the buyer shall have the option of canceling the contract at the market difference, provided he OOLD-STOEAGE LEGISLATION. 675 exercises such option within 24 hours from the time when he receives notice of the seller's inability to perform. If such option is not exercised the contract time of shipment or delivery shall be extended until a reasonable time after the termination of seller's inability is removed, but not to exceed 30 days beyond the original date of shipment or delivery. At the end of such additional 30 days' period the buyer shall again have the right to cancel as above provided or the contract shall be similarly extended. ' (10) Buyer's responsiMlUy for final payment. — That where buyer specifies the bank through which draft is to be presented and to whom payment Is to be made by the buyer, the buyer shall be responsible for final payment to the seller. (11) Package differentials.— That both buyer and seller agree to the ship- ment or delivery of commodities named in this contract on the basis of the package differentials in effect at date of sale as promulgated by the United States Food Administration. , Seller, By . , Buyer, By . [XI— C — i — Continued (b). Nov. 16, 1918. Paragraphs (4) and (7) have been changed: substitute this for XI — C — 4 (a) continued.] TEEMS AND CONDITIONS. It is understood and agreed — (1) Food Administration regulations. — That the buyer and seller shall con- form to all regulations promulgated by the United States Food Administration. (2) Net toeights. — That the wheat flour and wheat mill feed covered by this contract is sold on the basis of net weights when packed, and the determining factor as to weight shall be a moisture content not in excess of Government allowance. (3) Contract not subject to change. — That there are no conditions, repre- sentations, or warrants, oral or otherwise, and that there shall be no assignment or cancellation of this contract except as herein stated, and that no agent or representative has authority to modify the printed terms of this contract. (4) Shipments within 60 days. — ^That the above order shall be shipped or delivered as specified within 60 days from the time that the order is confirmed by the seller unless a shorter time is expressly provided. (5) Routing. — That the seller shall have the right to route all shipments anless otherwise stated in this contract. (6) Nonextension of time. — That there shall be no extension of the time of shipment or delivery under this contract except as herein specified. (7) Buyer's nonfulfillment of contract. — That if the buyer shall fall to file with the seller within 30 days of the date of confirmation of this contract shipping instructions permitting tlie seller to ship at his option within the remaining period of the contract, then the seller may cancel this contract and the buyer shall pay to the seller an entry charge of 25 cents per barrel on flour and 50 cents per ton on feed, plus or minus the market difference, pro- vided that if such shipping instructions are received before the expiration of 60 days from the date of confirmation of this contract, and prior to any can- cellation being sent, the seller's right to cancel shall cease. If the buyer shall refuse to accept any shipment or delivery as specified hereunder or fail to perform any of the other terms of this agreement then the seller may cancel this contract and the buyer shall pay to the seller the entry charge above provided, plus or minus the market difference. In addition thereto the seller may pursue such further remedies as the law may provide. (8) Seller's nonfulfillment of contract.— That if the seller shall fail except for the reasons specified in paragraph 9 of this contract to make any shipment or delivery as specified then the buyer may at his option cancel this contract at any time before actual shipment, and the seller shall pay to the buyer the sum of 25 cents per barrel on flour and 50 cents per ton on feed, plus or minus the market difference. The buyer may pui-sue such further remedies as the law may provide. (9) Exceptions to seller's responsibilities.— That if this contract can not be verformed by the seller within the time specified, because of Government con- tracts not in contemplation at the time of the contract, or because of fires, strikes, labor difficulties, acts of carriers, or other causes beyond the control 676 COLD-STOEAGE LEGISLATION. of the seller, and if the seller notifies the buyer of such inability, stating the spet^ific cause, as soon as he knows that such inability will prevent performance and in any event on or before the date of shipment or delivery, the seller shall not be responsible for failure to perform. In such event the buyer shall have the option of canceling the contract at the market difference, provided he exer- cises such option within 24 hours from the time when he receives notice of the seller's inability to perform. If such option is not exercised the contract time of shipment or delivery shall be extended until a reasonable time after the termination of seller's inability is removed, but not to exceed 30 days beyond the original date of shipment or delivery. At the end of such additional 30 days' period the buyer shall again have the right to cancel as above provided, or the contract shall be similarly extended. (10) Buyer's responsibitity for final payment. — That where buyer specifies the bank through which draft is to be presented and to whom payment is to be made by the buyer, the buyer shall be responsible for final payment to the seller. (11) Package .differentials. — That both buyer and seller agree to the shipment or delivery of commodities named in this contract on the basis of the package difCerentials in effect at date of sale as promulgated by the United States Food Administration. Seller, By — . Buyer, By -. [XI— C— 5, 6, 7.1 WHEAT-CON SEKVATION BXJIES. The following wheat-conservation rules, which correspond to special rules 23, 27, 28, 29, 30, 31, and 32, series B, governing wholesalers and retailers of wheat flour are promulgated for the purpose of assuring an adequate supply and equitable distribution of wheat flour for purposes essential to the national security and defense and to the successful prosecution of the war. Under existing conditions, the unrestricted distribution of flour is deemed to be clearly an unjust, unreasonable, and wasteful practice. Rule 5. Wheat flour not to he sold or used for purposes other than human (consumption. — ^No licensee shall sell, use, or deliver to any person wheat flour of any grade for any purpose other than the manufacture of human food, except by special written permission of the United States Food Administrator. Note. — Requests for such permission shall be made to the United States Food Administration, Distribution Division, Washington, D. 0., stating specifi- cally amounts of and purposes for which such flour is to be used. Eui^ 6. Wholesalers must reduce purchases of wheat flour 30 per cent. — The licensee dealing in wheat flour at wholesale shall not, without the written permission of the United States Food Administrator, purchase for delivery to him during the three months' periods from February 1 to April 30, and May 1 to July 31, in 1918, more than 70 per cent of his normal requirements of flour for such period. The amount of purchases made in the corresponding three-month periods in 1917 will be regarded as prima facie evidence of such normal requirements. Note. — In calculating wheat flour for the purpose of this rule and rule 7 the licensee shall Include the wheat flour contained in mixed flours of any kind which he may handle. Rule 7. Must distribute flour equitably. — The licensee dealing in wheat flour at wholesale should distribute the 70 per cent of his requirements, purchased in accordance with rule 6, through his customary markets and channels of distribution in such manner that each of his customers receives his fair share thereof, and that during the three-month periods from February 1, 1918, to April 30, 1918, and from May 1, 1918, to July 31, 1918, no town, city, State, or district receives from the licensee more than 70 per cent of the amount it received in the corresponding three-month period in the year 1917. He shall not seek new markets or channels of distribution, and sales of large quantities to new customers will be regarded prima facie as a violation of this rule. Note. — See note to rule 6 regarding mixed flours. COLD-STORAGE LEGISLATION. 677 [XI — B — 6, 7, amended, effective July 1, 1918.] Rule 6. Sugar to be delivered hy retailers to public eating places, manufac- turers, and bankers only on receipt of sugar-distribution certificates, — On and after July 1, 1918, a retailer shall not ship or deliver sugar to any person operating a public eating place, or operating a boarding house or Institution serving regularly 25 persons or more, or engaged in the business of manufac- turing, bottling, packing, or preparing products (including bakery products) in which sugar is used until he has received from such purchaser a certificate or certificates duly indorsed by the buyer and Issued to the buyer by the Federal food administrator for the State in which the buyer is located certify- ing that the total amount of sugar to be sold or delivered will not give the buyer more than his fair share of the sugar then available for distribution in the United States. Note. — The retailer may deliver without a sugar-distribution certificate to individual consumers complying with any agreement made by him in obtaining his own certificates from the Federal food administrator in his State. Rule 7. Wholesaler and retailer to buy only on presenting certificates and to use sugar in their own manufacturing only upon obtaining manufacturers' certificates. — The wholesaler or retailer shall not, after July 1, 1918, use sugar in the manufacturing, bottling, packing, or preparation of any other product until he has obtained from the Federal food administrator of the State where such product is manufactured or prepared certificates that the total amount Of sugar to be so used will not exceed his fair share of the sugar then available for distribution. He shall use no sugar in excess of the amount called for in the certificates issued to him. He shall not buy sugar for any purpose without turning in certificates issued to him or turned in to him by other persons upon deliveries of sugar for the amount purchased. Note. — This rule supersedes former rule 7, effective May 15, 1918. The above rules supersede rules-B-6 and B-7 of the special-license regulations that govern wholesalers, retailers, etc., in handling sugar. {XI— C— 5, 6, 7 (a). Nov. 16, 1918. Substitute this tor XI— C— 5, 6, 7 and XI— C— 6, 7, repealed.] Rule 5. " Wheat flour not to be sold or used for purposes other than human consumption." (Repealed Nov. 12, 1918.) RuTjis 6 AND 7. (Were repealed on July 1, 1918.) rxi— C— 8, 9.] Rule 8. Retailers or consumers must buy wheat-flour substitutes from licensee or elsewhere. — ^The licensee dealing in wheat flour at wholesale shall not, without the written permission of the United States food administrator, ship or deliver such flour to any retailer or consumer unless the buyer purchases at the same time, or the licensee satisfies himself that the buyer has pur- chased, 1 pound of wheat-flour substitutes for every pound of wheat flour purchased, or, in the case of whole wheat or graham flour containing at least 95 per cent of the entire wheat, 3 pounds of wheat-flour substitutes for every 5 pounds of such whole wheat or graham flour puTchased. Wheat-flour substitutes for the purpose of this rule and rules 9, 12, and 13 shall include hominy, corn grits, corn meal, corn flour, edible cornstarch, barley flour, rolled oats, oatmeal, rice, rice flour, buckwheat flour, potato flour, sweet potato flour, soya bean flour, milo, kafir, and feterita flours and meals _ Rule 9. Retailers and consumers required to buy substitutes with mixed flour from licensee or elsewhere.— i^o licensee manufacturing or distributing at wholesale mixed flour containing more than 50 per cent o^^'^eat flour shall without the permission of the United States food administrator, sell or de vei any such mixed flour to the retailer or co°«™«'- t^t„t? thnt the buver Cs purchases at the same time or the licensee satisfies himself t^at the buyer has purchased an amount of wheat-flour substitutes sufi^cient to make the total amount of such substitutes, Including the substitutes in the mixed flour, equal to the total amount of wheat flour In such mixed flour. 678 COLD-STORAGE LEGISLATION. [XI— C— 8, 9 (a). Aug. 27, 3918. Substitute this for XI— C— 8, 9.] Rules 8 and 9 were repealed on August 27, 1918, effective September 1, 1918. [XI— c— 10.] Rum: 10. Bakers must 6e required to iuy substitutes from licensee or else- where. — The licensee dealing in wheat flour at wholesale shall not, on and after April 14, 1918, ship or deliver to any person engaged in the business of baking bread or rolls any wheat flour, except whole-wheat flour, unless the buyer purchases at the same time or the licensee satisfies himself that the buyer has purchased 1 pound of wheat-flour substitutes for every 3 pounds of wheat flour purchased. Wheat-flour' substitutes for the purpose of this rule and rule 11 shall Include bran, shorts, and middlings, corn flour, corn meal, edible cornstarch, hominy, corn grits, barley flour, rolled oats, oatmeal, rice, rice flour, buckwheat flour, potato flour, sweet potato flour, milo, kafir and feterita flours and meals, soya bean flour, peanut flour, tapioca or cassave flour, taro flour, banana flour, and other products of a similar nature which may be used in baking. Graham or whole-wheat flour containing 25 per cent of bran, shorts, or middlings may be sold to persons manufacturing bakery products without sub- stitutes, but if it contains less than 25 per cent it must only be sold with an amount of wheat-flour substitutes which, added to the bran, shorts, and middlings contained in the graham or whole- wheat flour (everything over 75 per cent extraction) will equal the total amount of substitutes required. Potatoes may be sold to persons manufacturing bakery products as a wheat- flour substitute in the proportion of 4 pounds of potatoes in place of 1 pound of other substitutes. [XI— C— 10 (a). Aug. 27, 1918. Substitute this for XI— C— 10.] Rule 10 was repealed on August 27, 1918, effective September 1, 1918. [XI— C— 10— Note.] Note to Rttles 8 and 10. — A written statement from the buyer that he has purchased a given quantity and kind of wheat flour substitutes, not balanced by other purchases of wheat flour, may be accepted as satisfactory evidence of the facts stated. Attention is called to the fact that the list of substitutes set forth in special rule 10 applicable to sales to bakers of bread and rolls is more comprehensive than the list of substitutes set forth in special rule 8 applicable to sales to dealers or consumers. Bran, shorts, and middlings, and everal other commodities that are not contained in the list ior dealers and consumers are contained in the list for bakers. " Other products of a similar nature " may also be sold to bakers, and wide latitude is permissible in extending the list. For the purpose of sales to dealers or consumers substitutes are none other than those designated in the list set forth in special rule 8. " Other products of a similar nature" are not to be included. Only products specifically. men- tioned as to be included. For example: " Hominy " does not include canned hominy. " Barley flour " does not include barley. " Rice " does not Include puffed rice. " Rice flour " does not include rice polish. " Corn grits " does not include corn flakes. " Rolled oats " does not include fruited oats. " Barley flour " does not include barley grits. Rule 8 specifies certain commodities that, for the purposes of that rule, are wheat-flour substitutes to be sold to retailers and consumers with wheat flour. Wheat-flour substitutes may be sold in cartons or in any other form, and under trade names. In reply to inquiries as to whether certain preparations of food com- modities, such as Jones's Health Bran, Smith's Fruit Oats, Brown's Corn Chips, etc., are wheat-flour substitutes, we can only say that they are substitutes if they are included in the list contained in the above rules. There are innumerable brands of cereal foods; the Food Administration is not familiar with the in- gredients contained In many of them. Licensees proposing to sell such prepa- COLD-STORAGE LEGISLATION. 679 rations as wheat-flour substitutes must assume the responsibility of determining whether or not they are complying with the rules and regulations .V. /^. T® submits a statement of the exact ingredients, with percentages aiereof, and process of manufacture, of a particular cereal food a ruling will be made as to whether or not that particular commodity may be sold as a wheat-flour substitute. The wheat-flour substitutes listed are intended to include only substitutes edible by human beings, and unbolted corn meal, hominy, and other products which are suitable only for cattle feed may not be sold or counted as wheat- flour substitutes. Red dog feed is considered a substitute under rule 10. Rules 8 and 10 must be observed in making deliveries on contracts entered into prior to January 28, 1918, since the rules provide that the licensee shall not sell or deliver wheat flour except in accordance with the requirements of the rule. A licensee in selling or delivering wheat flour to any Federal, State, county, or municipal institution, such as a penitentiary, asylum, hospital, or university, college, or school, or to any private hospital, asylum, sanatorium, university, college, or school, whether charitable or noncharitable, must require the pur- chaser to buy (or satisfy himself that the purchaser has brought elsewhere) at least 1 pound of wheat-flour substitutes for every 3 pounds of wheat flour purchased to be used in baking bread or rolls, and at least 1 pound of wheat- flour substitutes for each pound of wheat flour purchased for other purposes : Provided, That exceptions may be made by Federal food administrators as to hospitals, asylums, and sanatoriums upon written statement of the physician in charge that the health of patients requires a larger allotment of wheat flour than that specified above. [XI — C — 10 — note, continued.] Licensees in selling or delivering wheat flour to ships must conform to the following : The licensee shall not sell or deliver wheat flour to a ship, whether freight or passenger, under the American flag or to a foreign freight or passenger ship, nnless the purchaser buys at the same time, or the licensee satisfles himself that the purchaser has bought since January 28, 1918, 1 pound of wheat-flour sub- stitutes for every 3 pounds of wheat flour bought to be used in baking bread or rolls, and 1 pound of wheat-flour substitutes for each pound of wheat flour bought for other purposes : Provided, That if the ship uses 3 or more barrels of flour and meal a month and has not obtained a baking license or applied for the same, the licensee shall require the purchaser to buy, or satisfy himself that the purchaser has bought since January 28, 1918, 1 pound of wheat flour sub- stitutes for each pound of wheat flour bought, whether or not it is to be used in baking bread. The buyer of wheat flour is not entitled to any credit for purchases of wheat iaour substitutes made prior to January 28, 1918, the date on which the rules became efEective. If the buyer does not purchase the desigriated quantity of sub- stitutes from the licensee the licensee must satisfy himself that the buyer has purchased the designated quantity on or after January 28, 1918. Bakers, including hotels, restaurants, and boarding houses, who use less than 3 barrels of flour and meal a month are not required to obtain a baking license. However, such a baker may obtain a license and subject himself to the rules and regulations governing baking licenses. If he does so, he thereupon shall be- come entitled to purchase wheat flour to be used in baking bread or rolls on the basis of 1 pound of substitutes for every 3 pounds of wheat flour. If he does not subject himself to license, he must purchase, or satisfy the dealer m wheat flour that he has purchased elsewhere, 1 pound of substitutes for each pound of wheat flour purchased. , . ^ u n A license is not required to sell or deliver wheat flour substitutes when sell- ing or delivering wheat flour to churches to be used in the observance of re- ligious rites that require the use of pure wheat flour. .^ ^ 4. a A licensee selling out his business must require the purchaser, if wheat flour is included in the goods sold, either to buy the designated quantity of wheat flour substitutes, or the licensee must satisfy himself that the pwchaser has bought the designated quantity on or subsequent to January 28, i»i». 680 COLD-STORAGE LEGISLATION. Licensees In selling or delivering gluten flour must require the purchaser to purchase the required quantities of wheat flour substitutes, except In selling or delivering gluten flour containing not less than 40 per cent gluten to a person engaged In the business of manufacturing for sale gluten bread or other prori- ucts made entirely from such flour. [XI— C— 11, 12, 13, 14.] Rule 11. Bakers required to huy suistitutes vAth mixed flour from licensee or elsewhere. — The licensee manufacturing or distributing at wholesale mixed flour containing more than 75 per cent of wheat flour shall not on and after February 24, 1918, sell or deliver to any person engaged in the business of baking bread or rolls any such flour, unless the buyer purchases at the same time or the licensee satlsfles himself that the buyer has purchased 1 pound of wheat-flour substitutes for every 3 pounds of such flour purchased. Mixed flour containing less than 75 per cent of wheat flour may be sold to persons engaged in the business of making bread or rolls without wheat substitutes. Rule 12. Retailers must sell substitutes. — The licensee dealing in wheat flour at retail shall not, without the written permission of the United States Food Administrator, sell wheat flour to any person unless such person purchases from him at the same time 1 pound of wheat flour substitutes for every pound of wheat flour purchased, or in case of whole wheat or Graham flour containing at least 95 per cent of the entire wheat, six-tenths of a pound of wheat flour substitutes for every pound of such whole wheat or Graham flour purchased. Rule 13. Retailers of mixed flour required to sell substitutes. — The licensee dealing in mixed flour at retail shall not, without the written permission of the United States Food Administrator, sell mixed flour containing more than 50 per cent of wheat flour to any person, unless such person purchases from him at the same time an amount of wheat-flour substitute sufficient to make the total amount of such substitutes, including substitutes in the mixed flour, equal to the total amount of wheat flour in such mixed flour. Rule 14. Amount of wheat flour that may be sold to individual consumers limited. — The licensee dealing in wheat flour at retail should distribute the flour which he receives as equitably as possible among his customers in such manner that no one of such customers shall receive more than his fair share thereof. He shall not, without the written permission of the United States Food Administrator, sell or deliver to individual consumers residing In towns or cities in quantities in excess of 25 pounds, nor to any individual consumer in rural or farm communities in quantities in excess of 50 pounds. [XI— C — 11, 12, 13, 14 (a). Substitute tbis for XI— C— 11, 12, 13, 14.] Rule 11 was repealed August 27, .1918, effective September 1, 1918. Rule 12 (as amended Aug. 27, 1918, effective Sept. 1, 1918). Consumers must purchase substitutes. — The licensee shall not, without the written permission of the United States Food Administrator, ship or deliver wheat flour to any individual consumer, including public eating places, clubs, and boarding houses, unless such person purchases from him at the same time, 1 pound of corn meal, corn flour, or barley flour for each 4 pounds of wheat flour purchased or 2 pounds of pure rye flour for each 3 pounds of wheat flour purchased ; provided that if the purchaser, although offered the alternative of at least one of tlie foregoing combinations, prefers a combination of kafBr flour, milo flour, feterita flour and meals, rice flour, peanut flour, float flour, bean flour, potato flour, sweet potato flour, and buckwheat flour, wheat flour may be sold to him with such flours in proportion of 4 pounds of wheat flour to 1 pound of such substi- tutes. This rule shall not apply to the sale of mixed flour, whole wheat, or graham flour if such flour conforms to the speciflcations prescribed in rule 13 and is labeled Victory mixed flour, or Victory flour, nor to the sale of pancake or self- raising flours which contain less than 80 per cent of wheat flour and have been approved by the United States Food Administration. No corn meal, corn flour, barley flour, rye flour, oat flour, or rice flour shall be sold as a substitute unless it conforms to one of the speciflcations prescribed by the United States Food Administration. Note. — The effect of the foregoing rule is to require any dealer who offers wheat flour for sale at retail to have in stock and offer for sale at all times, at least one of the principal substitutes (corn meal, corn flour, barley flour, pure rye flour). The special substitute flours can not be forced on any con- COLD-STOKAGE LEGISLATION. 681 sumer against his wish, and the dealer is not compelled to carry them in stocli. Exchange transactions.— The foregoing rule applies to all custom and ex- change transactions as well as direct sales, unless it Is modified by special an- nouncement of the Federal food administrator of the State where the dealer is located. Pancake and self-rising flours. — The manufacture of these flours is forbidden unless application is made to the United States Food Administration, Distribu- tion Division, Washington, D. C, stating the ingredients. At the same time permission to sell wiithout substitutes should be requested if desired. Rule 13 (as amended Aug. 27, 1918, efCectlve Sept. 1, 1918). Use of term Victory. — ^The licensee shall not quote, sell, or label mixed flours as Victory mixed flours unless they conform to one of the following specifications : Mixed wheat and corn flour shall be mixed in the proportion of 4 pounds of of wheat flour to 1 pound of corn flour, each of such flours conforming to the standards of the United States Food Administration. Mixed wheat and corn flour shall be mixed in the proportion of 4 pounds wheat flour to 1 pound of corn flour, each of such flours conforming to the standards of the United States Food Administration. Mixed wheat, barley, and corn flour shall be mixed in the proportion of 8 pounds of wheat flour to 1 pound of corn flour and 1 pound of barley flour, each of such flours conforming to the standards of the United States Food Adminis- tration. Mixed wheat and rye flour shall be mixed in the proportion of 3 pounds of wheat flour to 2 pounds or more of rye flour, each of such flours conforming to the standards of the United States Food Administration, provided that if such flour contains more than 2 pounds of rye flour to 3 pounds of wheat flour, the percentage of ingredients shall be stated on each package. The licensee shall not quote, sell, or label whole wheat, entire wheat, or graham flour as Victory flour unless such flour contains at least 95 per cent of the wheat berry. Mixed flours conforming to the foregoing specifications should be labeled " Victory mixed flour," and whole wheat, entire wheat or graham flour conform- ing to this rule should be labeled " Victory." Note. — The term " Victory " is a descriptive name indicating that the flour contains substitutes in accordance with the Food Administration requirements. It should be used by all manufacturers and dealers in this flour in a descriptive sense but not as a trade name. Manufacture of mixed flours.— The wholesaler who manufactures or has manufactured for him, mixed, pancake, or self-rising flours is subject m such manufacture to the rules governing wheat millers and should promptly inform himself regarding those rules. August 27, 1918. ^j 23 Rule 14 was repealed August 27, 1918, effective September 1, 1918. [XI— C— 11 12 13 14 (b). Nov. 16, 1918. Substitute this for XI— C— 11, 12, IS, ' ' ' 14 (a).] Rule 11 was repealed August 27, 1918, effective September 1, 1918. Rule 12. Consumers must purchase sttfistitMtes.— Repealed November 12, 1918. Rule 13. Use of term, "yictoj-j/."— Repealed November 12, 1918- Rule 14 was repealed August 27, 1918, efEective September 1, 1918. [XI-D-l.] D. COKN GEIT8, COEN MEAL, HOMINY, COKN FLOUE, EEFINED GKITS, EYE FLOUB, AND BAELEY TLOUB. RULE 1. Sales contract must contain prescribed terms -Thejc^^^ not sell corn meal, grits, corn flour, hominy, or f ?'i«!l S^J^i'l'f '^"f ^nLIrt cept spot sales for cash or upon the terms contamed in the form of^w^^^^^ Drescrihpd below Discount for cash may be allowed by mutual agreement ue tweln fte Sfes. pZided, however Th^t tWs rule shall not apply to^^^^^^^^^ made to any person for the Federal, State, county, or niunicipal governments, or for the Government of any nation at war with Germany. 682 GOLD-STOKAGE LEGISLATION. FORM OF CONTBAOT BEFERBED TO IN SPECIAL EULE D-I. Contract No 19- o( sell and buy the following articles on the terms and conditions stated below : Time of shipment Shipment periods to be Routing Destination Terms : Cash, sight draft, demand draft, or arrival draft. Discount for cash Number of packages. Size. Kind. Brand. Price sacks included. Give rate basis, destination, or place of delivery. -Buyer. -Seller, [XI — D — 1 (a). Oct. 21, 1918. Substitute this for XI — D— 1.] D. HOMINY, CORN GRITS, CORN MEAL, RAW CORN FLAKES, STARCH FROM CORN, CORN FLOUR, BARLEY FLOUR, RYE FLOUK, OAT MEAL, ROLLED OATS, OAT FLOUR. Rule 1 (as amended Oct. 20, 1918). Uniform contract for certain corn, oats, rye, and harley products. — The licensee sliall not sell hominy, corn grits, corn meal, corn flakes, starch from corn, corn flour, barley flour, rye flour, oat meal, rolled oats, or oat flour in carload lots or less-than-car lots when included in a mixed-car shipment, except spot sales for cash or upon the terms con- tained in the form of contract prescribed below. Discount for cash may be allowed by mutual agreement between the parties : Provided, however. That this rule shall not apply to sales made to any person for the Federal, State, county, or municipal Governments, or for the Government of any nation at war with Germany. FORM OF CONTEACT KEFEttRED TO IN RULE 6. Contract No. 19— of sell and .. buy the following articles on the terms and conditions stated below : Time of shipment Shipment periods to be Routing Destination . Terms : Cash, sight draft, demand draft, or arrival draft. Discount for cash Bank of Number of packages. Size. Kind. Brand. Price (sacks included). Give rate basis destination, oi place of delivers -, Buyer. -, Seller. COLD-STORAGE LEGISLATION. 683 '^i'7;V"^V ^K^i'*> ■P^'^- }^' ^/^^V Substitute this for the following pages : XI— D— 1 (a). XI — D — 1 (a) continued, XI — D — 2 (a), XI — D 3 (a^ XT n ?7oi /.^i«T.7,<,xi (1), XI— D— 3(a) continued (2), XI-D-s'cf) continued^S) (T) F^^ continued n. HOMINT, CORN GRITS, CORN MEAL, RAW CORN FLAKES, STARCH FROM CORN, CORN FLOUE, BARLEY FLOUR, RYE FLOITR, OATMEAL, ROLLED OATS, OAT FLOUE. Rule 1. Uniform contract for certain corn, oats, rye, and iarley products — Repealed December 12, said repeal to become effective Decembr 17 1918 Rule 2. Uniform packages prescribed.— BepealeA December 3, 1918. Rule 3. Spcifications for com, oats, rye, and barley products — Repealed De- cember 12, said repeal to become effective December 17, 1918. Rule 4. Corn, rye, and barley products must arrive in good condition —Re- vealed December 12, said repeal to become effective December 17, 1918. [XI — D—l— continued (2).] TERMS AND CONDITIONS. (1) Food Administration regulations. — It is understood and agreed that the buyer and seller shall conforai to all regulations promulgated by the United States Food Administration. (2) Net weights. — Corn meal, grits, and corn flour, corn hominy, and refined grits shall be sold upon the basis of net weights when packed and the de- termining factor as to weight shall be a moisture content not in excess of Gov- ernment allowance. (3) Contract not subject to change. — It is understood that there are no con- ditions, representations, or warranties, verbal- or otherwise, and that there shall be no assignment or cancellation of this contract, except as herein stated, and no agent or representative has authority to modify the printed terms of this contract. (4) Shipment loithim, 60 days. — It is understood and agreed that the above order shall be shipped as specified within 60 calendar days, dating from time when order is taken. (5) Nonextension of time. — There shall be no extension of time of shipment under this contract except as herein specified. (6) Buyer's nonfulfillment of contract. — If the buyer shall refuse to accept any shipment as specified hereunder or fail to file with the seller specifications with the order for immediate, quick, or prompt shipment or within 15 days of time of shipment, if sold for later than prompt shipment, or to perform any of the terms of this agreement, then the seller may at its option and upon due notice to the buyer cancel this contract, and the buyer shall pay to the seller an entry charge of 2i per cent on corn products plus the actual market differ- ence. The seller may pursue such other remedies as the law may provide. On the refusal or neglect by the buyer to accept any shipment made in compliance with the contract as specified hereunder or to perform any of the terms of this agreement, the seller may treat such refusal or neglect as a breach of the entire contract for wliich the seller is entitled immediately to avail himself of any rights in this contract specified ; but, except for reason or reasons specified herein, if the shipment as specified is not executed within 60 days from date of contract, it shall be canceled and payment of charges above specified shall he made by the buyer to the seller. (7) Seller's nonfulfillment of contract.— It the seller shall fail (except for reasons herein specified) to make any shipment as specified in accordance with the terms of the contract within the time indicated by this contract, then the bnyer may at his option cancel the shipment and in the event of such default the seller shall upon demand pay to the buyer entry charge of 2i per cent on 'corn products plus the actual market difference and the buyer may pursue such other remedies as the law provides. (8) Exceptions to seller's responsibility.— 'S'ov delay in making shipment as specified, occurring through the fulfillment of Government contracts, or through fire, strikes, or labor difficulties, acts of carriers, car supply, or similar causes beyond the control of the seller, the seller is not responsible. Rule 2 Packages sold must be of prescribed sfee.— The licensee shall not sell corn meal, corn grits, or hominy after April 1, 1918, for domestic use in the United States, except in packages containing li pounds, 3 pounds, 5 pounds, 10 pounds, 25 pounds, 50 pounds, or 100 pounds net weight, without special permission In writing from the United States Food Administration. 137690—19 44 684 COLD-STOEAGE LEGISLATION. Note. — This rule corresponds to special rule 21, Series B, Governing Dealers In Corn Meal, Corn Grits, and Hominy. It applies only to commercial packages put up by manufacturers or wholesalers, and not to sales by retailers tXI— D— 1 (a) continued. Oct. 21, 1918. Substitute this for XI — D— 1 continued (2).] TERMS AND CONDITIONS. It is understood and agreed : (1) Pood Administration regulations. — That the buyer and seller shall con- form to all regulations promulgated by the United States Food Administration. (2) Net weights. — That the corn, oats, rye, or barley products covered by this contract are sold on the basis of net weights when packed, and the de- termining factor as to weight shall be a moisture content not in excess of Gov- ernment allowance. (3) Contract not subject to change. — That there are no conditions, repre- sentations, or warrants, oral or otherwise, and that there shall be no assign- ment or cancellation of this contract except as herein stated, and that no agent or representative has authority to modify the printed terms of this contract. (4) Shipments vMhin 60 days. — That the above order shall be shipped or delivered as specified within 60 days from the time that the order is con- firmed by the seller unless a shorter time Is expressly provided. (5) Routing.— That the seller shall have the right to route all shipments unless otherwise stated in this contract. (6) Nonextension of time. — That there shall be no extension of the time of shipment or delivery under this contract except as herein specified. (7) Buyer's nonfulfillment of contract. — That if the buyer shall fail to file with the seller specifications and shipping instructions with the order, if the order provides for immediate, quick, or prompt shipment, or 15 days prior to the specified time for shipment if sold for later than prompt shipment, then the seller may cancel this contract and the buyer shall pay to the seller an entry charge of 2J per cent on the corn, oats, rye, or barley products, plus or minus the market diif erence, provided that if such shipping instructions are received before the date specified for shipment and prior to any cancellation being sent, the seller's right to cancel shall cease. If the buyer shall refuse to accept any shipment or delivery as specified hereunder or fail to perform any of the terms of this agreement, then the seller may cancel this contract and the buyer shall pay to the seller the entry charge above provided, plus or minus the market difference. In addition thereto the seller may pursue such further remedy as the law may provide. (8) Seller's nonfulfillment of contract. — That If the seller shall fail, except for the reason specified in paragraph 9 of this contract, to make any shipment or delivery as specified, then the buyer may at his option cancel this contract at any time before actual shipment, and the seller shall pay to the buyer an entry charge of 2J per cent on the corn, oats, rye, or barley products covered by the con- tract, plus or minus the market difCerence. The buyer may pursue such further remedy as the law may provide. (9) Exceptions to seller's responsiMlities. — That if this contract can not be performed by the seller within the time specified, because of Government con- tracts not in contemplation at the time of the contract, or because of fires, strikes, labor difiicultles, acts of carriers, or other causes beyond the control of the seller, and If the e"Uer notifies the buyer of such inability, stating the specific cause, as soon as he knows that such Inability will prevent performance and in any event on or before the date of shipment or delivery, the seller shall not be responsible for failure to perform. In such event the buyer shall have the option of canceling the contract at the market difference, provided he exercises such option within 24 hours from the time he receives notice of the seller's Inability to perform. If such option is not exercised, the contract time of shipment or delivery shall be extended until a reasonable time after the termination of the seller's inability is removed, but not to exceed 30 days beyond the original date of shipment or delivery. At the end of such additional 30 days' period the buyer shall again have the right to cancel as above provided or the contract shall be similarly extended. (10) Buyer's responsibility for final payment. — That where buyer specified the bank through which draft is to be presented and to whom payment is to be made by the buyer, the buyer shall be responsible for final payment to the seller. COLD-STORAGE LEGISLATION. 685 (11) Package differentials.— Thnt both buyer and seller agree to the ship- ment or delivery of commodities named in this contract on the basis of the package differentials in effect at date of sale as promulgated by the United States Food Administration. „ (Seller.) By "(Buyer.) By [XI— D— 2. Oct. 9, 1918. Insert this after XI— D—1— continued— (2) ; it supplements rule 2 on that page.] Rule 2 (as amended Oct. 1, 1918). Uniform packages prescribed. — The licensee shall not sell corn meal, corn grits, or hominy after April 1, 1918, or corn flour, barley flour, oat flour, rye flour, corn flakes, or starch from corn after October 1, 1918, for domestic use in the United States in packages packed or repacked by the licensee, except packages containing 1 pound, IJ pounds, 2 pounds, 3 pounds, 5 pounds, 10 pounds, 25 pounds, 50 pounds, or 100 pounds, net weight ; nor rolled oats nor oat meal after October 1, 1918, except in pack- ages containing IJ pounds, 3J pounds, or 100 pounds, net weight, without special permission in writing from the United States Food Administration: Provided, That so long as the Food Administration regulations require that 1 pound of substitutes be sold with every 4 pounds of wheat flour, or 2 pounds of rye flour with every 3 pounds of wheat flour, the licensee may sell corn meal, corn flour, barley flour, and oat flour in packages containing 6 pounds or 12 pounds, or rye flour in packages containing 16 pounds or 32 pounds, without such special permission: Provided further, That rolled oats and oatmeal may be sold in packages containing 22 ounces if such packages are manufactured prior to December 1, 1918. [XI— D— 2 (a). Dec. 4, 1918. Substitute this for XI— D— 2.] Rule 2. " Uniform packages prescribed." — Repealed December 3, 1918. [XI— D— 2. Oct. 21, 1918. Insert this after XI— D— 2 (a).] Note to Rule XI — Z)— 2.— This rule applies to retailers who pack or repack corn meal, etc., but does not apply to retailers who buy in bulk and sell in bags or other unlabeled packages. The intention is to require all licensees putting np commercial packages to conform to the size requirements but it is not the intention to require a retailer who, for instance, buys corn meal in bulk and sells it in paper bags, to sell in packages of the prescribed sizes. [XI— D— 3.] Rule 3. Specifications for hominy, grits, corn meal, and corn flour. — On and after August 1, 1918, the licensee shall not knowingly quote, sell, or label products of corn under the following designations unless the products con- form to the specifications indicated thereunder. In cases where the licensee, after an inspection of the goods, has no reason to suspect a failure to con- form to specifications, he shall not be held to violate this rule if he quotes or sells products under the designation used by the miller in selling to him. Pearl, or table hominy. — Shall be degerminated hulled corn, screened or dusted over a No. 10 wire cloth or 5/64-inch perforated metal, and shall not contain more than 14 per cent moisture and 1 per cent fat, by ether ex- traction. Coarse table grits. — Shall be made from hominy or clean, sound corn, ground and screened through No. 12 wire cloth and dusted over No. 16 wire cloth, and shall contain not more than 14 per cent moisture and IJ per cent fat, by ether extraction. Medium table grits. — Shall be made from hominy or clean, sound corn, ground and screened through No. 14 wire cloth and dusted over No. 20 wire cloth, and shall contain not more than 14 per cent moisture and li per cent fat, by ether extraction. Pine table grits.— Shall be made from hominy or clean, sound corn, ground and screened through No. 16 wire cloth and dusted over No. 28 wire cloth. 686 COLD-STORAGE LEGISLATION. and shall contain not more than 1-i per cent moisture and li per cent fat, by ether extraction. Cream meal. — Shall be made from hominy or grits, screened through No. 22 wire cloth and dusted over No. 72 grits gauze, and shall contain not more than 14 per cent moisture and 1^ per cent fat, by ether extraction, or 12i per cent moisture and 2i per cent fat. Com flour. — This shall be made from hominy, grits, or cream meal, and shall be of a texture fine enough so that not less than 75 per cent will sift through No. 9XX bolting silk and balance shall sift through No. 72 grits gauze ; shall be of an even color, and shall contain not more than 13i per cent moisture and 14 per cent fat, by ether extraction, or 12i per cent moisture and 2 per cent fat. [XI— D— 3 (a). Oct. 21, 1918. Substitute this for XI— D— 3.] Rtjle 3 (as amended Oct. 1, 1918). 8peciflcation.s for corn, oats, rye, and barley products. — The licensee shall not quote, sell, or label products of corn, rye, or barley on and after August 1. 1918, or products of oats on and after October 1, 1918, under the following designations unless the products conform to the specifications Indicated thereunder. No barley flour, barley meal, rye flour, rolled oats, oat meal, oat flour, hominy, hominy grits, corn grits, corn Hour, corn meal, or hominy feed shall be sold for interstate shipment or for export, or shipped in interstate or foreign commerce unless manufactured in accordance with one of the following ppeciflcations. When sold for interstate or export shipment or shipped in interstate or foreign commerce, the licensee shall print, stamp, or stencil on each package the name indicated for such product In this rule. In cases where the licensee, after an inspection of the goods, has no reason to suspect a failure to conform to specifications, he shall not be held to violate this rule if he ships, quotes, or sells products under the designation used by the miller in selling to him. The texture of the product shall be determined by sifting with hand sieves clothed with the cloth specified, which shall be the standard bolting cloths now in u^e, whether of woven wire, grits gauze, or bolting silk. The analyses of products for moisture, fat, carbohydrates, fiber, ash, or other quality or content shall be made by the official methods of the American Association of Agricultural Chemists, except when they have no established method by such method as is approved by the United States Food Adminis- tration. Not to exceed 70 pounds of hominy, grits, cream meal, or corn flour shall be made from 100 pounds of clean, sound corn, based upon a moisture con- tent of 141 per cent. This extraction shall be reduced proportionately when corn with higher moisture content is used and may be increased proportion- ately when corn of lower moisture content is used but shall not in any case exceed 72 pounds. [XI — D— 3, continued, 4.] Standard meal shall be made from clean, sound corn, with approximately 10 per cent of feed removed and approximately 45 per cent of cream meal or grits extracted, and if sold for export shall contain not more than 9 per cent moisture. Pearl meal shall be made from clean, sound corn, with approximately 15 per cent of the bran and germ removed, and shall contain not more than 11 per cent moisture and 3 per cent fat by ether extraction. Bolted meal shall be made from clean, sound corn with approximately 5 per cent of bran and germ removed, and If sold for export shall contain not more than 9 per cent moisture. " Old-fashioned " or " water-ground " meal shall be clean, sound corn, ground to a " soft " meal, and if sold for export shall contain not more than 9 per cent moisture. The texture of products shall be determined by sifting with hand sieves clothed with the cloth specified, which shall be the standard bolting cloths now in use, whether of woven wire, grits gauze, or bolting silk. The analyses of products for moisture, fat, carbohydrates, fiber, ash, or other quality or content shall be made by the official methods of the American Association of Agricultural Chemists. Notes. — These specifications became effective for corn millers on July 1, 1918- The moisture content for hominy, grits, cream meal, and corn flour has been COLD-STOEAGE LEGISLATION. 687 placed at the outside limit, and is not intpnripri tn iiv..,-+ „„ * viding for a lower moisture content Elno^fer^ pT^/.^"''*-';''''® expressly pro- chi„^ i. ^'''^f'^'^^^ »«««* «"-we m f,oo(i co«(ZiMo«,.— The licensee shall ship all corn products m such condition that except for clrcumstancef Lvonn fZfTll^ "V^^ shipper they shall arrive at destination poTt in ?he Unfted .States cool and sweet and in merchantable condition, unless there is an ex™ agreement in writing to the contrary. expiess [XI— D-3 (a), continued (1). Oct. 21, 1918. Substitute this for XI-D-S con- tinued, 4.] ' Pearl or table hominy shall be degerminated, hulled corn, screened or dusted ver a No. 10 wire cloth or five sixty-fourths inch perforated metal 'or equi i?.i?°^^^"„^"f. ?i^?°* *" ^^'l^!'^ 15 per cent of moisture and fat in the over a No. 10 wire cloth or five sixty-fourths inch perforated metal or equiva- lent, and shall contain not to exceed 15 per cent of moisture and fat in the Ig- rffh!' *L%™°if'r^ ^" °° ^^'""*^ t° «^^«^'l 14 Pe-- cent or the fat U pe? cent by ether extraction, Grits shall be made from hominy or clean sound corn, ground to a granulation fine enough to sift through a No. 12 wire cloth, and fhall be dusted over a No 28 wire cloth or equivalent, and shall contain not more than 15 per cent moisture and fat in the aggregate, in no event to exceed 13i per cent moisture and m no event to exceed 2i per cent fat by ether extraction. Note.— Grits may be made inside these limits of granulation and labeled coarse, "medium," or "fine," according to granulation. Cream meal shall be made from hominy, grits, or clean sound corn, screened through No. 22 wire cloth or equivalent, and dusted over No. 72 grits gauze and shall contain not more than 15 per cent moisture and fat in the aggregate! in no event to exceed 13i per cent moisture, and in no event to exceed 2i per cent fat by ether extraction. Com flour shall be made from hominy, grits, cream meal, or clean sound corn, and shall be of a texture fine enough so that not less than 75 per cent will sift through No. 9 XX bolting silk and balance shall sift through No. 72 grits gauze, shall be of an even color and shall contain not more than 15 per cent moisture and fat in the aggregate, in no event to exceed 13J per cent moisture, and in no event to exceed 2J per cent fat by ether extraction. Standard meal shall be made from clean sound corn with approximately 45 per cent of cream meal or grits and approximately 10 per cent of feed ex- tracted. If sold for interstate shipment, it shall contain not more than 12 per cent moisture, and if sold for export it shall contain not more than 9 per cent moisture. [XI— D— 3 (a), continued (2). Oct. 21, 1918. Insert this after new page XI — D— ■? (a), continued (1).] Pearl meal shall be made from clean, sound corn with approximately 15 per cent of the bran and germ removed, and shall contain not more than 12 per cent moisture and 3 per cent fat by ether extraction. Bolted meal shall be made from clean, sound corn with approximately 5 per cent of bran and germ removed, and if sold for interstate shipment or shipped in interstate commerce shall contain not more than 12 per cent moisture. If sold for export, it shall contain not more than 9 per cent moisture. Old-fashioned or water-ground meal shall be clean, sound corn ground to a " soft " meal, and if sold for interstate shipment or shipped in interstate com- merce shall contain not more than 12 per cent moisture. If sold for export, it shall contain not more than 9 per cent moisture. Barley flour shall be milled from clean, sound barley, and shall be of a texture fine enough to sift through No. 9 XX bolting siik; and shall be of a uniform color, and shall contain not more than Hi per cent moisture and 2J per cent fat, by ether extraction ; and not more than 55 pounds of barley flour shall be made from 100 pounds of clean, sound barley. Rye flour shall be milled from clean, sound rye, and shall be of a texture fine enough so that not less than 85 per cent shall sift through No. 9 XX bolting silk and balance through No. 8 XX silk ; shall be of a uniform color, and shall 688 COLD-STORAGE LEGISLATION. not contain more than 13J per cent moisture and IJ per cent fat, by etlier ex- traction ; and not more than a total of 70 pounds of white, straight, or dark rye flour shall be made from 100 pounds of clean, sound rye. If this product is separated into patent and darlc rye flour, not more than 70 per cent of the ex- tracted flour shall be labeled or sold as "patent." The dark rye flour which results shall not be subjected to further separation or division, but may contain not to exceed 2J per cent fat. [XI— D— 3 (a), continued (3), 4. Oct. 21, 1918. Insert this after XI— D— 3 (a), continued (2).] Rolled oats shall be milled from oat groats made from clean, sound oatSj steamed and rolled to flakes, and shall contain not to exceed 10 per cent moisj. ture and not to exceed 2 per cent fiber. Oatmeal shall be milled from oat groats made from clean, sound oats, ground or cut to a granular texture, and shall contain not to exceed 10 per cent inois- ture and not to exceed 2 per cent fiber. Oat flour shall be milled from oat groats, made from clean, sound oats, or from rolled oats or oatmeal, and shall be ground to a texture fine enough so that not less than 70 per cent will sift through No. 7 XX bolting silk and balance through No. 52 grits gauze, and shall contain not to exceed 10 per cent moisture and 2 per cent fiber. Note. — The moisture content for hominy, grits, cream meal, and corn flour has been placed at the outside limit, and is not intended to limit contracts ex- pressly providing for a lower moisture content. Exporters customarily require one-half of 1 per cent lower than the above limitations and many domestic buyers also properly demand the lower maximum. The Food Administration lias fixed the maximum at the higher level with a view to protecting the smaller millers with less complete equipment engaged in local trade in which durability is not so essential. The larger millers with wider distribution should note the advisibility of adhering to the lesser maximum in protecting their customers and their own trade. Any corn, rye, or barley content of any mixed or blended flour must conform with these specifications. Rule 4 (as amended Oct. 20, 1918). Carn, rye, and Parley products must arrive in good condition. — The licensee shall ship all corn, barley, and rye products in such condition that, except for circumstances beyond the control of the shipper, they shall arrive at destination point in the United States cool, sweet, and in merchantable condition, unless there is an express agreement In writing to the contrary. Corn meal, grits, hominy, corn flour, barley flour, and rye flour intended for human consumption shall not be considered to com- ply with this rule of they have an acidity exceeding 40°, or hominy feed, corn, rye, or barley feeds if they have an acidity exceeding 80°. Cornstarch shall not be considered to comply with this rule if it contains more than five one-thou- sandths of 1 per cent of sulphur dioxide. [XI— E— 1, 2, 3, 4, 5, 6.] E. DBIED BEANS AND DBIED PEAS. Rule 1. Future dealing in new crop beans prohibited. — The licensee shall not buy or sell new crop dried beans grown in the United States of America, except for seed, before September 1 of the year covering such new crop. Note. — ^This rule does not prohibit a licensee from guaranteeing a certain price for a crop to be planted ; however, sales against such an arrangement can not be made before September 1. Rule 2. Future dealing in new crop peas prohibited. — ^The licensee shall not buy or sell new crop dried peas grown in the United States of America, except for seed, before July 1 of the year covering such new crop. Note. — ^While this rule permits the guaranteeing' of a price for a crop, no sales can be made by the licensee before July 1. Rule 3. Contracts for delivery of imported beans or peas beyond 60 days after arrival prohibited. — The licensee shall not make any contract for the sale of imported dried beans or dried peas for shipment or delivery more than 60 days after arrival in the United States, except for seed and excepting contracts with the Federal, State, county, or municipal governments, or for the govern- ment of any nation at war with Germany. Note. — Sales of domestic beans or peas are subject to Special Rule A-4 on page 7. Rule 4. Permission required to can in tin-plate containers. — The licensee shall not sell any dried beans or dried peas knowing or having reason to believe that COLD-STOEAGE LEGISLATION. 689 they are to be canned in tin-plate containers, unless lie obtains a special permit from the United States Food Administrator. Rule 5. Quotations hy pound. — The licensee shall quote, buy, and sell all dried beans and dried peas by the pound. Note. — This rule applies to dried beans, and dried peas which are held for seeding purposes, and which are sold in commercial lots, but does not apply to sales of seed by wholesalers or retailers in the customary small seed packages or bags. Rule 6. Prompt unloading required. — The licensee shall not, without reason- able justification, refuse to accept and unload promptly any dried beans or dried peas purchased by him. [XI— E— 1, 2, 3, 4, 5, 6 (a). July 30, 1918. Substitute this for XI— E— 1, 2, 3, 4, 5, 6.] E. DBIEa) BEANS AND DRIED PEAS. Rule 1 (as amended July 24, 1918). Future dealing vn new orop beans pro- hibited. — ^The licensee shall not buy or sell new crop dried beans except for seed, or for the Federal, State, county, or municipal governments, or for the government of any nation at war with Germany, before September 1 of the year covering such new crop if grown in the United States of America, Japan, Manchuria, China, or Asiatic countries, or before June 1 if grown in South America, Porto Rico, or Mexico. Note. — ^This rule does not prohibit a licensee from guaranteeing a certain price for a crop to be planted ; however, sales against such an arrangement can not be made before September 1. Rule 2 (as amended July 24, 1918). Future dealing in new crop peas pro- hibited. — The licensee shall not buy or sell new crop dried peas grown in the United States of America, Japan, Manchuria, China, or Asiatic countries, except for seed, or for the Federal, State, county, or municipal governments, or for the government of any nation at war with Germany, before July 1 of the year covering such new crop. If grown in South America, Porto Rico, or Mexico, such new crop shall not be sold before April 1. Note. — While this rule permits the guaranteeing of a price for a crop, no sales can be made by the licensee before July 1. Rule 3. Contracts for delivery of imported beans or peas beyond 60 days after arrival prohibited. — The licensee shall not make any contract for the sale of imported dried beans or dried peas for shipment or delivery more than 60 days after arrival in the United States, except for seed and excepting contracts with the Federal, State, county, or municipal governments, or for the govern- ment of any nation at war with Germany. Note. — Sales of domestic beans or peas are subject to Special Rule A-4 on page 7. Rule 4. Permission required to can in tin-plate containers. — The licensee shall not sell any dried beans or dried peas knowing or having reason to believe that they are to be canned in tin-plate containers, unless he obtains a special permit from the United States Food Administrator. , Rule 5. Quotations by pound. — The licensee shall quote, buy, and sell all dried beans and dried peas by the pound. Note. — This rule applies to dried beans and dried peas which are held for seeding purposes, and which are sold in commercial lots, but does not apply to sales of seed by wholesalers or retailers in the customary small seed packages or bags. Rule 6. Prompt unloading required. — The licensee shall not, without reason- able justification, refuse to accept and unload promptly any dried beans or dried peas purchased by him. [XI— E— 1, 2, 3, 4, 5, 6, 7. Dec. 4, 1918. Substitute this for XI— E— 1, 2, 3, 4, 5, 6 (a) and XI— E— 7 (a).] E. DRIED BEANS AND DRIED PEAS. All the following rules were repealed on December 3, 1918 : Rule 1. Future dealing in new crop beans prohibited. Rule 2. Future dealing in new crop peas prohibited. Rule 3. Contracts for delivery of imported beans or peas beyond 60 days after arrival prohibited. Rule 4. Permission required to can in tin-plate containers. Rule 5. Quotations by pound. Rule 6. Prompt unloading required. Rule 7. Grade must equal contract requirements. 690 COLD-STORAGE LEGISLATION. [XI— E— 1, 2, 3, 4, 5, 6 (a). Insert after XI— E— 1, 2, 3, 4, 5, 6, 7.] Rules XI — E — 1 and XI — E— ^2 do not prohibit the licensee from buying or selling, upon or after actual maturity, new crop dried beans that mature prior to September 1, or new crop dried peas that mature prior o July 1. (Opinion A-110, July 26, 1918.) [XI— E— 7.] Rtjle 7. Grade must equal contract requirements. — The licensee shall not knowingly ship dried beans or dried peas which are not equal to the gradi', quality, or condition called for in the contract of sale. Note. — The above rules correspond to the special rules, series B, governing dealers in dried peas and dried beans. " Dried beans " includes " dried lima beans." TKOFIT ON IMPOETED BEANS OE PEAS. A merchant importing dried beans or dried peas may sell such commodities at a gross margin above c. i. f. cost not exceeding 10 per cent, provided such merchant actually furnishes the credit for the particular importation in ques- tion ; a merchant is not considered an importer of these commodities unless he furnishes credit or does his own buying in foreign countries. [XI— B— 7 (a). Aug. 17, 1918. Substitute this for XI — E — 7.] Rule 7. Grade must equal contract requirements. — The licensee shall not knowingly ship dried beans or dried peas which are not equal to the grade, quality, or condition called for in the contract of sale. Note. — The foregoing rules correspond to the special rules, series B, govern- ing dealers in dried peas and dried beans. " Dried beans " includes " dried lima beans." MAXIMUM MABGINS. Under Special Rule XI — A — 5 speculation in dried beans or dried peas is pro- hibited. (Effective Aug. 20, 1918.) The Food Administration will regard any sales of dried beans or dried peas at a gross margin above delivered cost (purchase price plus freight) in excess of the margins indicated in the following table as prima facia evidence of a violation of the statute and the rules. These margins are guides only. They do not change the rules. The margins of profit are still limited to a reasonable advance over the average purchase price of the goods sold without regard to the market or replacement value, and a smaller margin may be considered reasonable where the licensee has a lower cost than customary by reason of his failure to perform any part of the services customarily performed by dealers of that class. High margins, even if customary during prewar periods, are not justifiable now. Unreasonable margins are not excused by lower margins on other trans- actions in the same commodity or in other commodities. Maxi- Class. Services rendered. mum margin. Interpretations. Per cent. 1 Imnorter Furnishes letter of credit 10 Importers who buy on c. i. f. terms or bank guarantee of payment after arrival of shipment, or who do not assume the direct risk of buying in JL t M.ija^\f^ V^Jt. ■•■•••-•-^-•" and buys direct for im- port. foreign countries, fall in class 3 and are entitled only to maximum margin of profit for that class. 2. Elevator or cleaning Buys from grower, elevates, cleans, handploks, and 12 The difference between the selling warehouse. price and the actual cost on a hand- sacks. picked or recleaned basis should be used in arriving at these margins. Buys from grower, elevates. 10 These margins have been determined reoleans.and sacks— does not handplok. by taking the average cost and ex- pense of operating in different sec- tions of the country. Elevators and warehouses which buy 3. Bean factor Buys froin retail elevator (or importer) and finances 5 as agents for larger concerns and do not prepare for the market, are not entitled to more than a reasonable to destination. Buys from grower and has 7 recleaned by railroad or commission for the services rendered, public warehouse. which must be included in the al- lowed margin of his principal. COU)-STOBAGE LEGISLATION. 691 WHAT KESALES AEE JCSTIWABLB. " General Rule 6.— The licensee, In selling food commodities, shall keep such commodities moving to the consumer in as direct a line as practicable and without unreasonable delay. Resales within the same trade without reasonable justification, especially if tending to result in a higher market price to the retailer or consumer, will be dealt with as an unfair practice." Service. — ^Any transactions that savor of trading in which a profit accrues to the dealer without corresponding service are clear violations of the rule and will subject the offender to revocation of this license and to such other penalty as the law provides. The handling of dried beans and dried peas by wholesale grocers, including those sometimes referred to as "bean jobbers" when such jobbers are not located in the bean-producing sections, and do not buy from or finance retail elevators, is dealt with in the circular of June 6, 1918, on " Maximum margins on sales by wholesalers to retailers and by merchandise brokers ; and justifiable resales for such dealers." The contents of this circular are also to be found in the note to Rule XI — A — 5, effective June 15. The provisions regarding im- porters of beans in the circular of June 6 are superseded by this circular. Resales between bean factors, commonly known as bean jobbers, located in the bean-producing sections who buy from the retail elevators and finance stock to destination are prohibited unless the sum of the gross profits obtained by such factors does not exceed the maximum reasonable profit for that group. Resales between elevators or cleaning warehouses are also prohibited unless the sum of the gross profits obtained by such warehouse does not exceed the maximum reasonable profit for that group. Elevators and importers may resell to bean factors, but the effect of the resale rule is : (1) That imported beans shall in no event reach the wholesaler or mer- chandise-broker class dealt with in the circular of June 6 at an advance of more than 5 per cent over the price received by the importer plus freight. (2) That domestic beans shall reach the wholesaler or merchandise-broker class dealt with in the circular of June 6 at an advance of not more than 5 per cent (or 7 per cent as the case may be) plus freight, over the price received by the elevator. It may be noted that by the provisions of the circular of June 6, after the beans reach the wholesale grocery or merchandise-broker class they must be sold direct to retailers, except in certain specified cases where one resale at a small margin is permitted. [XI— F— 1, 2.] F. DEIED FBXnTS. Rule 1. New-crop fruits that are not available for spot delivery not to 6e lought or sold before July 15. — The licensee, prior to July 15 of the year in which new-crop fruits are to be grown and packed, shall not buy, contract to buy, offer for sale, or have outstanding any contract of sale or any commitment of sale of new-crop fruits not available for spot delivery. A commitment shall include all tentative or conditional orders whether definite prices are named or not. Note. — This rule and the following rule correspond to rules 4 and 5, series B, supplement 28, which became effective May 7, 1918, and were amended to their present form May 24, 1918. Rule 2. Facing of packages proJiibited.— The licensee shall not face or cause to be faced any licensed dried fruits in any package. Such facing shall be regarded as a wasteful practice. [XI— F— 1, 2 (a). Dec. 12, 1918. Substitute this for XI— F— 1, 2.] F. DRIED FBUITS. Rule 1. New-crop fruits that are not available for spot delivery not to be bought or sold before July 15.— The licensee prior to July 15 of the year m which new-crop fruits are to be grown and packed shall not buy, contract to buy, offer for sale, or have outstanding any contract of sale or any commitment for sale of new-cron fruits not available for spot delivery. A commitment 692 COLD-STORAGE LEGISLATION. shall include all tentative or conditional orders whether definite prices are named or not. Note. — This rule and the following rule correspond to rules 4 and 5, series B, supplement 28, which became effective May 7, 1918, and were amended to their present form May 24, 1918. Rule 2. Facing of packages proMMted. (Repealed Dec. 10, 1918, said repeal to become effective Dec. 16, 1918.) [XI— G— 1.] G. CANNED PEAS, CANNED CORN, CANNED TOMATOES, CANNED SALMON, AND CANNED SABDINES. Rule 1. Canned goods not to be quoted before February 1. — The licensee shall not quote for future delivery any canned peas, canned corn, canned toma- toes, canned salmon, or canned sardines before February 1 of the year when such products are to be canned. (This rule corresponds to special rule 3, series B, supplement, page 6, govern- ing wholesalers and retailers. ) [XI— H— 1.] H. 6EEEN COEFEE. Note. — Under the President's proclamation of January 30, 1918, which requires all persons, firms, corporations, and associations engaged in the busi- ness of importing or distributing green coffee to obtain a license, the. following classes must obtain licenses and observe the rules and regulations governing licenses : Persons, etc., importing green coffee, whether or not they roast it before disposing of it. Wholesalers, jobbers, roasters, and all others who buy or otherwise deal in green coffee, whether or not they roast it before disposing of it. Retailers who buy or otherwise deal in green coffee, whether or not they roast it before disposing of it, whose total gross sales of all food or feed commodities exceed $100,000 a year. Brokers. In other words, all persons, firms, corporations, and associations who import, and all others (except retailers whose gross sale of food or feed commodities do not exceed $100,000 a year) who buy or otherwise deal in or handle green coffee, are required to obtain a license. Rule 1. Licensees entitled to reasonable profit. — ^The licensee in any sale of green coffee shall take no more than a reasonable profit for such sale over the average cost of his stock on hand or under contract, not at that time contracted to be sold, and in arriving at the cost he shall take into consideration the gain or loss resulting from any actual hedging transaction on a coffee exchange. For the purpose of this rule an actual hedging transaction on a coffee exchange shall only include transactions In which the sale or purchase made is finally closed. In calculating the profit permitted by this rule the licensee shall not include the gain or loss from more than one hedging transaction on the same lot or stock of coffee, but the position of this transaction may be switched from one month to another provided that all profits or losses from any hedging trans- action and all facts regarding the switching of any hedge from one month to another are included in the licensee's reports. The licensee shall keep any speculative account on the coffee exchange entirely separate from such hedging transactions, and the gain or loss resulting therefrom shall not be considered in determining the cost of his hedged stock of coffee. [XI— H— 1 (a). July 30, 1918. Substitute this for XI— H— 1.] H. GEEEN COFFEE. Note. — Under the President's proclamation of .Tanuary 30, 1918, which requires all persons, firms, corporations, and associations engaged In the business of Importing or distributing green coffee to obtain a license, the following classes must obtain licenses and observe the rules and regulations governing licensees : Persons, etc., importing green coffee, whether or not they roast it before disposing of it. COLD-STORAGE LEGISLATION. 693 Wholesalers, jobbers, roasters, and all others who buy or otherwise deal in green coffee, whether or not they roast it before disposing of it. Retailers who buy or otherwise deal in green coffee, whether or not they roast it before disposing of it, those total gross sales of all food or feed commodities exceed $100,000 a year. Brokers. In other words, all persons, firms, corporations, and associations who im- port, and all others (except retailers whose gross sale of food or feed com- modities do not exceed $100,X)00 a year), who buy or otherwise deal in or handle green coffee, are required to obtain a license. Rule 1 (as amended July 24, 1918). Licensees entitled to reasonaUe profit.— The licensee in any sale of green coffee shall take no more than a reasonable profit over the average cost of his entire stock of coffee, including spot coffee, in transit and coffee to be shipped within 40 days after date of purchase contract and for which vessel room and insurance have been closed: Provided, however, That in averaging he shall not include any coffee contracted to be sold. Unshipped coffee for which freight and insurance have not been provided or unshipped coffee bought f. o. b. in country of origin shall not be included in averaging cost. Each growth of coffee shall be averaged separately. The licensee in arriving at the cost shall include any gain or loss resulting from any actual hedging transaction on a coffee exchange. For the purpose of this rule an actual hedging transaction on a coffee exchange shall only include transactions in which the sale or purchase made is finally closed or offset. In calculating the profit permitted by this rule the licensee shall not include the gain or loss from more than one hedging transaction on the same lot or stock of coffee, but the position of this transaction may be switched from one month to another, provided that all profits or losses from any hedging transaction and all facts regarding the switching of any hedge from one month to another are included in the licensee's report. The licensee shall keep any speculative account of the coffee exchange entirely separate from such hedging transactions and the gain or loss resulting therefrom shall not be considered in determining the cost of his hedged stock of coffee. Note. — Attention is called to general rule 23, governing all licensees, which prohibits the making of combination sales. Under that rule combination sales of two growths of coffee, for example, Rio and Guatemala, at an average price or at separate prices that would give an excessive profit on either, are prohibited. [XI— H — 1 (b). Sept. 11, 1918. Substitute this for XI— H— 1 (a).] H. GREEN COFFEE. Note. — Under the President's proclamation of January 30, 1918, which requires all persons, firms, corporations, and associations engaged in the business of importing or distributing green coffee to obtain "a license, the following classes must obtain licenses and observe the rules and regulations governing licensees : Persons, etc., importing green coffee, whether or not they roast it before disposing of It. Wholesalers, jobbers, roasters, and all others who buy or otherwise deal in green coffee, whether or not they roast it before disposing of it. Retailers who buy or otherwise deal in green coffee, whether or not they roast it before disposing of it, those total gross sales of all food or feed commodities exceed $100,000 a year. Brokers. In other words, all persons, firms, corporations, and associations who im- port, and all others (except retailers whose gross sale of food or feed com- modities do not exceed $100,000 a year), who buy or otherwise deal in or handle green coffee, are required to obtain a license. Rule 1 (as amended Sept. 11, 1918). Licensees entitled to reasonable profit.— The licensee in any sale of green coffee shall take no more than a reasonable profit over the cost of the particular coffee sold, provided that any sale of spot coffee shall be made at not more than a reasonable profit over the average 694 COLD-STOBAGE LEGISLATION. cost of his entire stock of spot coffee. Each growth of coffee shall be averaged separately. The licensee in arriving iit the cost shall Include any gain or loss resulting^ from any actual hedging transaction on a coffee exchange. For the purpose of this rule an actual hedging transaction on a coffee exchange shall only include transactions in which the sale or purchase made is finally closed or offset. In calculating the profit permitted by this rule the licensee shall not include the gain or loss from more than one hedging ti-ansactlon on the same lot or stock of coffee, but the position of this transaction may be switched from one month to another, provided that all profits or losses from any hedging trans- action and all facts regarding the switching of any hedge from one month to another are included in the licensee's report. The licensee shall keep any speculative account of the coffee exchange entirely separate from such hedging transactions, and the gain or loss resulting therefrom shall not be considered in determining the cost of his hedged stock of coffee. Note 1. — Attention is called to general rule 23, governing all licensees, which prohibits the making of combination sales. Under that rule combination sales of two growths of coffee, for example, Rio and Guatemala, at an average price or at separate prices that would give an excessive profit on either, are prohibited. Note 2. — This amendment applies to all sales made after the date thereof. [XI— H— 1 (c). Dec. 7, 1918. Substitute this for XI— H— 1 (b).] H. GREEN COFFEE. Rule 1 (as amended Dec 5, 1938). — Licensees entitled to reasonable profit. Licensees in selling coffee, which is owned by any licensee,' spot or afloat, on or before December 15, 1918, shall not take more than a reasonable profit over the cost of the particular coffee sold, provided that any sale of spot coffee shall be made at not more than a reasonable profit over the average cost of his entire stock of spot coffee. Each growth of coffee shall be averaged separately. Every invoice or contract covering the sale of coffee subject to this rule shall be ■ marked : "The seller of the coffee covered by this Invoice or contract hereby certifies that same has been sold subject to special rules 1, 2, and 3 of the Food Adminis- tration." The licensee in arriving at the cost of such coffee shall include any gain or loss resulting from any actual hedging transaction on a coffee exchange. For the purpose of this rule, an actual hedging transaction on a coffee ex- change shall only include transactions in which the sale or purchase made is finally closed or "offset. In calculating the profit permitted by this rule the licensee shall not Include the gain or loss from more than one hedging transaction on the same lot or stock of coffee, but the position of this transaction may be switched from one month to another, provided that all profits or losses from any hedging trans- action and all facts regarding the switching of any hedge from one month to another are included in the licensee's reports. The licensee shall keep any speculative account of the coffee exchange en- tirely separate from such hedging transactions, and the gain or loss resulting therefrom shall not be considered in determining the cost of his hedged stock of coffee. Note. — The above rule applies only to coffee owned by any licensee, siwt or afloat, on or before December 15, 1918. [*XI — H— 1. Insert after XI— H—l.] In view of the present embargo on the export of green coffee and the impos- sibility of determining whether any particular coffee will actually be exported in the future, sales for future export must be governed by the margins gov- erning licensees in domestic transactions unless a formal export license has been issued. (Opinion A-109, July 25, 1918.) COLD-STORAGE LEGISLATION. 695 tXI— 11— 1 (a). Dec. T, 1918. Substitute this for XI— H 1.] irAXIMUM MARGIN^ S ON SALES OF COFFEE NOT OWNED BY ANY LICENSEE, SPOT OR AFLOAT, ON OR BEFORE DECEMBER 15, 1S18. (Issued Dec. 5, 1918.) The Food Administration in determining wiiether a coffee dealer in selling coffee other than that governed by rules 1, 2, and 3 is taking an unreasonable profit in violation of the food-control act, and the regulations of the Food Administration, will consider it to be prima facie evi- dence of a violation in any case where a dealer receives an average gross margin over the purchase price of such coffee during any period of three months beginning December 1, 1918, exceeding 71 per cent of the gross sales plus such charges as are actually incurred by the licensee on such coffee. If drafts against purchase are drawn in pounds sterling, gnly the actual amount paid shall be used in figuring the cost. Reports must be made of the total sales of such coffee and the average gross profits over each period of three months within 15 days after the termination of the period. A report in the form prescribed by the Food Administration will be required every 30 days. The specific margins over cost of particular lots indicated in rules 1, 2, and 3 have been arranged to apply only to coffee owned by any licensee, spot or afloat, on or before December 15, 1918, but the Food Administration will also direct its attention to any exorbitant profits on particular sales of other coffee. In view of the present embargo on the export of green coffee and the im- possibility of determining whether any particular coffee will actually be ex- ported in the future, sales for future export must be governed by the margins governing licensees in domestic transactions unless a formal export license hiis been issued. (Opinion A-109, July 25, 1918.) [XI— H— 2, 3, 4.] Rule 2. Importer limited to profit of 2i per cent. — For the purposes of rule 1 a reasonable profit for an importer shall not be more than 2^ per cent gross margin over cost, plus any brokerage or commission, and the usual exship or Instore, and shipping charges, actually incurred by the licensee. An importer shall be any person who buys for shipment from the producing country, whether or not on c. and f., c. i. f., exship or instore contract, and who resells his invoice as shipped, in any position, as a whole or in divided quantities not less than 500 bags without selection of specfied chops. A jobber dealing in this manner shall be considered an imiiorter. RtTLE 3. Jobher limited to profit of 5 per cent. — For the purposes of rule 1 a reasonable profit for a .lobber shall be 5 per cent gross margin over cost, plus brokerage or commission, and the usual exship or instore and shipping charges actually incurred by the licensee. A jobber shall be a person who customarily sells coffee in one or more chops to wholesale grocers or roasters. Note. — The prescribed profit must not be exceeded In any transaction involv- ing more than 25 bags of green coffee, whether or not the jobber customarily sells in one or more chops. Rule 4. Resales within same trade forbidden. — ^The licensee in selling greeh coffee shall keep it moving to the consumer in as direct a line as practicable and without unreasonable delay. Resales within the same trade without rea- sonable justification, especially if tending to result in a higher market price to the retailer or consumer, will be dealt with as an unfair practice. Where reasonable justification exists for a resale, any importer purchasing coffee from another importer shall resell the same at a gross margin of not more than IJ per cent over cost, plus any brokerage or commission actually incurred by the licensee, and a jobber purchasing coffee from another jobber shall resell such coffee at a gross margin not exceeding 2i per cent over cost, plus any brokerage or commission actually incurred. Note. — More than one resale will be permitted only u^der very exceptional conditions. The Food Administration realizes that at certain periods there may be sufficient justification to warrant resales, and full consideration will be given to exceptional conditions constituting such justification when they occur. 696 COLD-STOEAGE LEGISLATION. [XI— H— 2, 3, 4 (a). July 30, 1918. Substitute this for XI — H — 2, 3, 4.1 Rule 2 (as amended July 24, 1918). Importer limited to profit of 5 per cent. — For the purpose of rule 1 a reasonable profit for an importer shall not exceed 5 per cent gross margin over cost, plus any brokerage or commission actually paid, and the usual exship or instore, and shipping charges actually incurred by the licensee on such cofEee. If drafts against purchase are drawn in pounds sterling, only the actual amount paid shall be used in figuring the cost. For the purposes of this rule, an importer is one who buys coffee in the coun- try of origin, or cofEee in transit to this country, irrespective of terms or condi- tions of delivery, and who resells such purchase as shipped, in any position, as a whole or in divided quantities, without selection of specified chops. A jobber dealing in the foregoing manner shaU be considered an importer. Note. — ^An importer's transaction is one in which an invoice is sold practically as shipped. For example, a sale of 450 bags, more or less, out of an invoice of 500 bags, in order to enable the seller to obtain the profit allowed to jobbers, wiU be considered as a violation of the regulations. Rule 3 (as amended July 24, 1918). Jobber limited to profit of 7i per cent. — For the purposes of rule 1 a reasonable profit for a jobber shall be 7i per cent gross margin over cost, such cost and charges to be computed as prescribed in rule 2. A jobber, for the purpose of this rule, is one who customarily sells coffee in one or more chops to wholesalers, roasters, or other licensed green coffee dealers. Note. — The prescribed margin of profit does not apply to sales of 25 bags or less. Rule 4 (as amended July 24, 1918). Resales, tvith certain exceptions, for- bidden. — The licensee in selling green coffee shall keep it moving to the con- sumer in as direct a line as practicable and without unreasonable delay. Re- sales, especially if tending to result in a higher market price to the consumer, will b.e dealt with as an unfair practice. One resale from one importer to another is permissible, and on such resale the gross margin of profit shall not exceed 2J per cent over cost, plus such charges as are stated in rule 2. One resale from one jobber to another is permissible and on such resale the gross margin shall not exceed 3J per cent over cost, plus such charges as are stated in rule 2. Note. — More than one resale will be permitted only under very exceptional conditions. The Food Administration realizes that conditions may arise where sufficient justification may be found to warrant further resales. Such resales, however, can only be made with the permission of the Food Administration Full consideration for the Issuing of such permission will be given when suffi- cient justification can be shown. [XI — H— 2, 3, 4 (b). Dec. 7, 1918. Substitute this page for XI— H— 2, 3, 4 (a).] Rule 2 (as amended Dec. 5, 1918). Importer limited to profit of 5 per cent. — For the purpose of rule 1, a reasonable profit for an importer shall not exceed 5 per cent gross margin over actual purchase price, plus any brokerage or commission actually paid, and the usual ex-shlp or In store and shipping charges actually incurred by the licensee on such coffee. If drafts against purchases are drawn In pounds sterling, only the actual amount paid shall be used in figuring the cost. For the purpose of this rule, an importer is one who buys coffee in the country of origin, or coffee in transit to this country, Irrespective of the terms or conditions of delivery, and who resells such purchase as shipped, in any position, as a whole or In divided quantities without buyer's selection of chops. A jobber dealing in the foregoing manner shall be considered an importer. Note. — The above rule applies only to coffee owned by any licensee, spot or afloat, on or before December 15, 1918. An Importer's transaction Is one in which an invoice Is sold practically as shipped. For example, a sale of 450 bags, more or less, out of an invoice of 500 bags, in order to enable the seller to obtain the profit allowed to jobbers, win be considered as a violation of the regulations. Rule 3 (as amended Dec. 5, 1918). Jobber limited to profit of 74 per cent. — For the purpose of rule 1, a reasonable profit for a jobber shall be 7i per cent gross margin over actual purchase price, plus any brokerage or commission actually paid, and the usual ex-ship or in store, and shipping charges actually COLD-SXORAGE LEGISLATION. 697 incurred by the llceusee on such cofCee, such price and charges to be com- puted as prescribed in rule 2. A jobber, for the purpose of this rule, is one who customarily sells cofEee in one or more chops to wholesalers, roasters, or other licensed green cofEee dealers. Note.— The above rule applies only to coffee, owned by any licensee, spot or afloat, on or before December 15, 1918. The prescribed margin of profit does not apply to sales of 25 bags or less. Rule 4 (as amended Dec. 5, 1918). Resales, with certam exceptions, for- bidden. — The licensee in selling green coffee shall keep It moving to the con- sumer in as direct a line as practicable and without unreasonable delay. Resales, especially if tending to result In a higher market price to the con- sumer, will be dealt with as an unfair practice. One resale from one importer to another is permissible, and on such resale the gross margin of profit shall not exceed 2J per cent over cost plus such charges as are stated in rule 2. One resale from one jobber to another is permissible and on such resale the gross margin shall not exceed 3J per cent over cost plus such charges as are stated in rule 2. The above rule shall apply only to coffee owned by any licensee, spot or afloat, on or before December 15, 1918. In the case of any other coffee the prohibition against more than one resale shall apply but the specific margins above shall not apply. Note. — More than one resale will be permitted only under very exceptional conditions. The Food Administration realizes that conditions may arise where sufficient justification may be found to warrant further resales. Such resales, however, can only be made with the permission of the Food Administration. Full consideration for the Issuing of such permission will be given when suf- ficient justification can be shown. [XI — H— 2, 3, 4. Dec. 14, 1919. Insert this after XI— H — 2, 3, 4 (b).] On July 24, 1918, announcement was made that the maximum profit of 7J per cent prescribed by special rule 3 for jobbers of green coffee did not apply to sales of 25 bags or less. That announcement must not be taken advantage of by dealers defined as jobbers in said special rule 3 (namely, those who cus- tomarily sell cofEee in one or more chops. Such jobbers are entitled to not more than a maximum profit of Yi per cent, no matter In what quantity they sell. As to profits of dealers who customarily sell 25 bags or less, the Food Ad- ministration considers any such sale at an advance of more than 124 per cent over the purchase price, plus charges allowed by said special rule 3, as a vio- lation of general rule 5, which prohibits unreasonable profits, and any licensee exceeding this maximum will be proceed against in the manner provided by the food-control act. (Issued to green coffee licensees Dec. 13, 1918.) [XI— H— 5, 6, 7.] Rule 5. Must not have more than 90 days' supply. — The licensee shall not, without the written consent of the United States Food Administrator, or his duly authorized representative, keep on hand or have in possession or under control, by contract or other agreement, at any time, green coffee in a quantity in excess of the reasonable requirements of his business for use or sale by him during a period of 90 days: Provided, however, That this rule shall not pre- vent any licensee from having a carload of green coffee in transit in addition to a supply thereof sufficient to last until arrival of said carload. Note. — Green coffee to be imported into this country but which has not yet arrived shall not be Included in calculating the 90 days' supply under this rule. It may be found necessary to amend the above rule, requiring on proper notice a further reduction of stocks. . The reasonable requirements of the license shall be based prima facie upon the amount of green coffee handled by the license in the years 1916 and 1917. Rule 6. Must not sell or deliver more than 90 days' supply. The license shall not, without the written consent of the United States Food Administrator, or his duly authorized representative, sell or deliver to any person any green coffee if the licensee knows, or has reason to believe, that such sale or delivery will give to such person a supply of green coffee In excess of his reasonable requirements for use or sale by him during the period of 90 days next succeeding 698 GOLD-STOKAGE LEGISLATION. such sale or delivery : Provided, That thli? rule shall not prevent the sale or delivery of green coffee to the Federal, State, county, or municipal govern- ments or to the Government of any nation at' war with Germany, or the sale or delivery of a carload of green coffee to any licensee having less than a carload lot on hand. .RtTLE 7. Must not charge more than the customary brokerage. — The licensee shall not charge, directly or indirectly, a commission or brokerage on the sale of green coffee in excess of that which ordinarily and customarily pre- vails, under normal conditions, in the locality in which the broker's business Is conducted. [XI — H — 5, 6, 7 — Note. Oct. 14, 1918. This should be inserted after XI — H — 5, 6, 7.] Note to Rule 5.^ — The attention of all dealers in green coffee is called to the food control act approved August 10, 1917, and the regulations issued under this act with regard to hoarding of food commodities. Holding coffee for a period of over 90 days will be considered by the Food Administration evidence of a violation of the act and the regulations and will be dealt with accordingly. This applies to any and all coffee now in the United States or which may hereafter arrive. (Effective October 10, 1918.) ixi— H— 8.] Utile 8. Only one brokerage pernUtted. — Brokers shall not receive more than one brokerage on any sale, nor shall they receive an overage except where by force of circumstances they may have become principals through a misunder- standing or delay. When a broker closes out or sells coffee upon which he receives an overage he must send to the buyer, and enter in his reports to the Food Administration, full particulars regarding such transaction. In cases where first-hand dealers (i. e., importers, jobbers, or licensees holding green coffee on commission) employ one broker as their exclusive broker, and such goods are placed to the interior trade through a local broker acting there as the representative of the sole broker of the principal, the licensee under rules 2, 3, and 4 may include under the item of brokerage such extra brokerage or commission as has been heretofore customary for the local broker. All invoices rendered by licensees to buyers of green coffee shall state the entire amount of brokerage paid, if any, on the transaction, and included in the price paid by the buyer. Note.- — In the green coffee trade it has been customary for brokers, repre- senting exclusively first-hand dealers, to handle these accounts through out- side brokers for the interior trade, and these first-hand dealers cover the cost to them of these outside brokers by an additional price, secured from the pur- chaser. As this custom has been long established, the Food Administration, pending further notice, will permit it to continue, but requires that the full amount of all commissions paid on a transaction shall be shown on the coffee invoices rendered by the seller to the buyer in every case. Dealers also governed by general rules. — Dealers in green coffee are also governed by the general regulations governing all licenses. Particular atten- tion is directed to general rule 22 which prohibits a licensee from buying green coffee from or selling green coffee to any person subject to license who has not obtained a license. Roasted coffee. — Although roasted coffee itself has not been licensed it must be carefully noted that all persons selling roasted coffee are subject to the food control act of August 10, 1917, and that this law expressly forbids unrea- sonable or excessive charges. If it is found that the trade is violating this law as to reasonable profits upon roasted coffee, prompt action will be taken and the Food Administration will also find it necessary to place roasted coffee under license. ["XI— H— 8. Oct. 31, 1918. Insert this after XI— H— 8.] Note regarding roasted coffee. — The attention of the Food Administration has been called to the practice of roasters of coffee and other dealers in roasted coffee in negotiating contracts of sale which provide for delivery more than 90 days after the contract. Section 6 of the food-control act renders it unlawful to hoard necessaries and provides that necessaries shall be deemed to be hoarded when held, contracted, COLD-STOEAGE LEGISLATION. 699 or arranged for by any person or by a dealer in excess of reasonable require- ments for a reasonable time. i«iuue T-!f Fopd Admiiiistration will consider such contracts as violative of the above section of the food-contro act and subjecting the offender to the various penal- ties prescribed This ruling applies to all contracts covering roasted coffee which provide for delivery more than 90 days after the making of the contract This ruhng is directed particularly to contracts hereafter executed It does not give authority to take advantage of market conditions and cancel 'contracts heretofore entered into in good faith. If it is sought to cancel such contracts a coiiiplete statement of the facts should first be presented to the Coffee Divi- sion, Food Administration, Washington, D. O. (Opinion A— 123, Oct. 25, 1918.) [XI— H— 8 (a). Nov. 21, 1918. Substitute this for XI— H— 8.] Proflts on roasted co^ee.— The attention of all persons dealing in roasted cof- fee is called to the fact that section 4 of the food-control act of August 10 1917 makes it unlawful for any person to make any unjust or unreasonable charge in handling or dealing in or with any foods. The Food Administration considers that anyone handling or dealing in roasted coffee who takes a greater profit than the normal average profit that he obtained prior to July 1, 1914, is violating the above provision of the food- control act and all coffee roasters and dealers in roasted coffee must govern themselves accordingly and must be prepared to show what were their prewar profits when called' upon by the Food Administration to do so. (Issued Nov • 19, 1918.) Hoarding. — The attention of the Food Administration has been called to the practice of roasters of coffee and other dealers in roasted coffee in negotiating contracts of sale which provide for delivery more than 90 days after the con- tract. Section 6 of the food-control act renders it unlawful to hoard necessaries and provides that necessaries shall be deemed to be hoarded when held, contracted, or arranged for by any person or by a dealer in excess of reasonable require- ments for a reasonable time. The Food Administration will consider such contracts as violative of the above section of the food-control act and subjecting the offender to the various penalties prescribed. This ruling applies to all contracts covering roasted cof- fee which provide for delivery more than 90 days after the making of the con- tract. This ruling is directed particularly to contracts hereafter executed. It does not give authority to take advantage of market conditions and cancel contracts heretofore entered into in good faith. If it is sought to cancel such contracts, a complete statement of the facts should first be presented to the Coffee Division, Food Administration, Washington, D. C. (Opinion A — 123, Oct. 25, 1918.) [XI — J — 1, 2. Oct. 25, 1918. Insert this after XI— H— 8.] J. SPECIAL KEGULATIONS GOVEKNING MSTEIBUTORS OF OLEOMAEGAKINE OB OTHEB BUTTEB SUBSTITUTES. Rule 1 (new, Oct. 25, 1918). Oleomargarine must not 6e sold at retail at more than reasonable advance over cost. — The licensee dealing in oleomargarine or Other butter substitutes at retail shall not sell at more than a reasonable advance over cost without regard to market or replacement value at the time of sale. Cost shall Include purchase price plus transportation charges, if any. The licensee may average the cost of all oleomargarine or other butter substi- tutes of the same kind and grade in his possession at the point from which the sale is made which has not already been contracted to be sold, and may take such average cost as the cost of any particular lot. When new lots ara added and a new average calculated the licensee shall include in the new averaging all stock remaining on hand of lots already averaged at the average cost of such lots previously determined. If the cost of any oleomargarine 'or butter substitutes is averaged the cost of all such products must be averaged. When costs are averaged the licensee must keep a record of the manner in which such average has been arrived at. Note. — The United States Food Administration will regard any advance in excess of 5 cents to 6 cents per pound over cost as unreasonable and as evidence of violation of the above rule. The 5 cents per pound represents the maximum margin for stores conducted on the cash and carry or no-service plan, while 6 137690—19 45 700 COLD-STORAGE LEGISLATION. cents per pound Is the maximum margin for the extra-service stores extending credit and delivery. In determining margins at 5 cents and 6 cents per pound on oleomargarine vcith the fractional costs in favor of the dealer, the United States Food Admin- istration has given due consideration to the rising costs of operation which must be met by the dealer. Retailer may have benefit of fractional cost on any transaction. — Retailers whose delivered terminal costs figure in fractions may have the benefit of such fractional costs. For example, If oleomargarine costs at terminal delivery 32i cents per pound, the selling price may be figured as follows : Cash and carry stores. Amount of sale. Cost. Margin. Total. Fraction added. Maximum selling price. 1 pound. 2 pounds 3 pounds Cents. 32i 65 97i Cents. 5 10 15 Cents. 37J 75 112J i None. i CenU. 75 113 The maximum selling price for the extra-service or credit and delivery stores would be 1 cent per pound higher. Rtjlb 2 (new, Oct. 17, 1918). The manufacture and sale of prints of oleo- margarine or other butter substitutes weighing less than 1 pound prohibited. — On and after January 1, 1919, no licensee shall manufacture or sell units of oleomargarine or any other butter substitute in print form that weigh less than 1 pound: Provided, That this rule shall not prevent a retailer from cutting a unit weighing 1 pound or more and selling a portion thereof to a consumer. [XI— J— 1, 2 (a). Nor. 26, 1918. Substitute this for XI— J— 1, 2.] J. SPECIAL REGULATIONS GOVERNING DISTEIBUTOES OF OLEOMAKGAKINE OK OTHEE BUTTEE SUBSTITUTES. Rule 1 (new, Oct. 1918) Oleomargarine must not be sold at retail at more than reasonable advance ovei cost. — The licensee dealing in oleomargarine or other butter substitutes at retail' shall not sell at more than a reasonable advance over cost without regard to market or replacement value at the time of sale. Cost shall include purchase price plus transportation charges, if any. The licensee may average the cost of all oleomargarine or other butter substi- tutes of the same kind and grade in his possession at the point from which the sale Is made which has not already been contracted to be sold, and may take such average cost as the cost of any particular lot. When new lots are added and a new average calculated the licensee shall include in the new averaging all stock remaining on htmd of lots already averaged at the average cost of such lots previously determined. If the cost of any oleomargarine or butter substitutes is averaged the cost of all such products must be averaged. When costs are averaged the licensee must keep a record of the manner in which such average has been arrived at. Note. — The United States Food Administration will regard any advance in excess of 5 cents to 6 cents per pound over cost as unreasonable and as evi- dence of violation of the above rule. The 5 cents per pound represents the max- imum margin for stores conducted on the cash and carry or no service plan, while 6 cents per pound is the maximum margin for the extra service stores ex- tending credit and delivery. In determining margins at 5 cents and 6 cents per pound on oleomargarine with the fractional costs in favor of the dealer, the United States Food Admin- istration has given due consideration to the rising costs of operation which must be met by the dealer. Retailer may have benefit of fractional cost on any transaction. — Retailers whose delivered terminal costs figure in fractions may have the benefit of such fractional costs. For example, if oleomargarine costs at terminal delivery 32i cents per pound, the selling price may be figured as follows: COLD-STORAGE LEGISLATIOIST. 701 Amount of sale. 1 pound . 2 pounds 3 pounds Cost. Cents. 32J 66 97i Margm. Cents. Total. Cents. 37i 75 1125 Fraction added. Cents, i None. Maximum selling price. Cents. BS- 75' 113- TOe maximum sslUng price for the extra service or credit and delivery stores would be 1 higher, cent per pound T,,,?.^'"^" ^;TT''f '''■^'^^f^9^^re and sale of prints of oleomargarine and other imtter substUutcs weighing less than 1 pound prohibited.-(Repealeam° 25, [XI— K— 1. Nov. 7, 1918. Insert this after XI— J— 1, 2.] K. SIEUPS AND MOLASSES. . Effective November 7, 1918. Rule 1. A^o sale of sirups or glucose except for purposes pledged.— The licensee who obtains glucose or refiners' sirups by representing that It is re- quired for purposes named in class 1, 2, 3, or 4 of the United States Pood Administration sirup priorities regulations shall not ijse or sell glucose or sirups so obtained for any purpose except that for which the licensee stated it would be used. The licensee shall sell no mixed sirups containing glucose or refiners sirups except for distribution to parties of Class 1, 2, 3, or 4 in the order named. Note.— The sirup regulations prescribe that refiners, manufacturers and sirup dealers give priority to orders for refiners' sirups and glucose to the fol- lowing classes in the order named. Class 1. — United States Government, the American Red Cross, the Young Men's Christian Association, the Salvation Army, and the Knights of Columbus. d'ass 2. — Sirup mixers for use in filling contracts with parties in Class 1. Class 3. — ^Sirup mixers and wholesale and retail grocers for distribution to household trade, or public eating places, and for medicinal purposes; pro- vided, that a certificate is furnished by the purchaser with his order in the following form : I, , for the purpose of securing for this order a rating in Class 3 under the sirup regulations of the United States Food Ad- ministration do hereby certify that the sirups or glucose covered by this order willbe|'««°H ... I used for mixing sirups £u fthe household trade or public eating places I the preparation of medicines and for no other purposes. Class If. — Commercial bakers, provided that a certificate is furnshed by the purchaser with his order in the following form : I, , for the purpose of securing for this order a rating in Class 4 under the sirup regulations of the United States Food Admin- istration do hereby certify that the sirups or glucose covered by this order wiU he /'■esold alternatively lused fQr mixing sirups for commercial baking and for no other purpose. Class 5. All others. [XI— K— 2, 3, 4.] Rule 2. Sirups and molasses must arrive in good condition. — The licensee shall ship all sirups and molasses in such condition that, except for circum- stances beyond the control of the shipper, they shall arrive at destination point in the United States sound and sweet and in merchantable condition, unless there is an express agreement in writing to the contrary. Sirups and molasses 702 COLD-STORAGE LEGISLATION. shall not be considered to comply with this rule if the licensee knows or has reason to believe (without actually testing) that the Baum6 test shows less than the following: Degrees. Pure glucose 41 Cane-juice sirup 38 Maple sirup, pure or mixed with beet or cane sugar 35 All other sirups and molasses for human consumption 40 The standard for Baum6 test, where specified, shall be the official Baumg scale of the United States Bureau of Standards, modulus 145, calculated to a temperature of 20° 0. (Circular of the Bureau of Standards No. 44). Rule 3. Sucrose requirements for molasses. — The licensee shall not sell or deliver to any person any centrifugal molasses intended for human consumption if he knows or has reason to believe (without actually testing) that it contains more than 8 per cent ash or tests less sucrose than the following : ' Per cent sucrose. First centrifugal molasses 38 Second centrifugal molasses i. 30 Third centrifugal molasses 25 The licensee shall not sell any molasses or any mixture containing molasses which molasses he knows or has reason to believe would test less than 30 per cent sucrose, unless branded as " blackstrap " or " mixture of blackstrap and ■ ." Sucrose' tests shall be determined by the Clerget method. Rule 4. Specifications for refiners' sirups. — The licensee shall not sell or de- liver any refiners' sirups for human consumption if he knows or has reason to believe (without actually testing) that they do not contain 55 per cent total sugars, or contain more than 8 per cent ash. [XI— K— 5.] Rule 5. Specifications for mixed sirups. — On and after November 20, 1918, the licensee shall not quote, sell, or label mixed sirups or molasses, either for domestic or export trade, if he knows or has reason to believe (without actually testing) that such sirups or molasses are not manufactured in accordance with one of the following specifications, or are not in accordance with the number under which they are sold. Note. — The wholesaler who manufactures or mixes sirup is subject to the sirup-mixers' rules, and is obliged to test. SPECIFICATIONS FOK SIKUPS AND MOLASSES. The BaumS scale shall show 40° on all mixtures unless otherwise specified. The various ingredients used shall conform to the Baum€ test prescribed for such Ingredient when sold separately. No. 77 mixture : Shall be made from corn sirup mixed with not less than 10 per cent nor more than 15 per cent or refiners' sirups. No. 78 mixture : Shall be made from corn sirup mixed with not less than 15 per cent nor more than 25 per cent A or B grade refiners' sirup. No. 79 mixture : Shall be made from corn sirup mixed with not less than 25 per cent nor more than 50 per cent of A or B grade refiners' sirups. No. 80 mixture : Shall be made from corn sirup mixed with not less than 10 per cent nor more than 20 per cent of cane sugar, beet sugar, corn sugar, maple sugar, first centrifugal molasses, second centrifugal molasses, cane-juice sirup, maple sirup, sorghum, or honey, either separately or in combination. BaumS not less than 40°, except for mixtures of corn sirup with maple sugar, or maple sirup BaumS test not less than 37°. No. 81 mixture : Shall be made from second centrifugal molasses mixed with not less than 25 per cent or more than 50 per cent of corn sirup. No. 82 mixture: Shall be made from first centrifugal molasses, second cen- trifugal molasses, open-kettle molasses, cane-juice sirup, or sorghum, separately or in combination, mixed with not less than 25 per cent nor more than 50 per cent of corn sirup. The combined cane products in any mixture to test not less than 40 per cent sucrose. COLD-STOKAGE LEGISLATION, 703 No. 83 mixture : Shall be made from corn sirup mixed with not less than 30 per cent nor more than 60 per cent of West India or Muscovado molasses con- taining not less than 40 per cent sucrose. No. 84 mixture: Shall be made from first centrifugal molasses mixed with second centrifugal molasses, open-kettle molasses, or can-juice sirup, either sepa- rately or in combination, and may contain not to exceed 50 per cent of A or B grade refiners' sirup, the finished blend to test not less than 38 per cent sucrose. No. 85 mixture : Shall be made from cane or beet sugar, either separately or in combination, mixed with not less than 25 per cent of maple sirup or maple sugar. The sucrose test of the maple sirup used in mixing shall be equal to that of the beet or cane sugar sirup used. No. 86 mixture: Shall be the same as No. 85 mixture, but the cane or beet sugar may be replaced by corn sirup to the extent of not more than 50 per cent of the finished mixture. Each item of each Invoice sold by the licensee shall include a motation of the number of the mixture shown In the above specifications. [XI— K— 5— Continued.] Vi'here percentages of mixtures are specified, the percentages shall be by weight and calculated on the basis of equal Baumi§ test for the different in- gredients of any mixture. Percentages indicated are percentages of the finished product. The standard for Baum6 test where specified shall be the Official Baumg Scale of the United States Bureau of Standards, Modulus 145, calculated to a temperature of 20 degrees Centigrade (Circular of the Bureau of Standards, No. 44). Sucrose tests shall be determined by the Clerget method. Flavoring extracts may be used in addition to the ingredients mentioned in the above specifications when used in conformity to Federal and State pure food laws. Note. — Resale of glucose and refiners' sirups. — The usual resale rules apply to resales of glucose and refiners' sirups, but it should be pointed out that a wholesale grocer who buys pure refiners' sirups or glucose from a dealer may not resell the same to another wholesale grocer. It should also be pointed out that in such case the wholesaler stands in the position of a wholesaler buying from another wholesaler and is entitled only to the minimum margin prescribed for sirups and glucose. [XI — K — 1. 2, 3, 4, o. Dec. 13, 1918. Substitute this for the following: XI — K — 1, XI— K— 2, 8, 4, XI— K— 5, XI— K— 5— Continued. ] ■ H. SIKUPS AND MOLASSES. The following rules were repealed on December 12, said repeals to become effective December 17, 1918 : Rule 1. No sale of sirups or glucose except for purposes pledged. Rule 2. Sirups and molasses must arrive in good condition. Rule 8. Sucrose requirements for molasses. Rule 4. Specifications for refiners' sirups. Rule 5. Specifications for mixed sirups. [XI— I,— 1, 2, 3. Nov. 1, 1918. Insert this after XI— J— 1, 2. Section K will be Issued later.] L. CLEAN KICE. Rule 1. (New, effective Oct. 31, 1918). Contracts for delivery of imported clean rice beyond 60 days after arrival prohibited.— The licensee shall not maue any contract for the sale of imported clean rice for shipment or delivery more than 60 days after arrival in the United States, excepting contracts with the Federal, State, county, or municipal governments, or for the Government ot any nation at war with Germany. , yt a ± Note.— Sales of domestic clean rice are subject to special rule -^tr-^-Tf- „„„ Rule 2. Quotations of imported clean rice by the pound only.— The licensee shall quote, buy, and sell all imported clean rice by the POund only. Note.— This rule applies to imported clean rice which is hf^foi export. Rule 3. Uniform packages pre.scribed.-The licensee shall not ?ell clean rice, for domestic use in the United States, except in Packages con a i pound 3 pounds, 5 pounds, 10 pounds, 25 pounds, 50 pounds, fJOO pounds, net weight without special permission in writing from the United States Food Admimstra- tion. 704 COLD-STORAGE LEGISLATION. [XI— L— 1, 2, 3 (a). Dec. 4, 1918. Substitute this for XI— L— 1, 2, 3.] L, CLEAN RICE. Rule 1 (New, effective Oct. 31, 1918). Contracts -for delivery of imported clean rice beyond 60 days after arrival proMMed. — The licensee shall not make any contract for the sale of imported clean rice for shipment or delivery more than 60 days after arrival in the United States, excepting contracts with the Federal, State, county, or municipal governments, or for the Government of any nation at war with Germany. Note. — Sales of domestic clean rice are subject to special rule XI — A— 4. Rule 2. Quotations of imported clean rice by the pound only. — The licensee shall quote, buy, and sell all imported clean rice by the pound only. Note. — ^This rule applies to imported clean rice which is held for export. Rule 3. Uniform packages prescribed. — (Repealed Dec. 3, 1918.) [XII— 1, 2, 3.] XII. BROKERS AND AUCTIONEERS OF LICENSED KONPERISHABLE FOOD COMMODITIES. A broker or auctioneer in a transaction concerning any licensed food com- modity is responsible for any violation by the principal of the regulations governing such transaction. Brokers and auctioneers should, therefore, famil- iarize themselves with the general regulations and any special regulations governing principals for whom they act. A list of the special rules issued will be found on page 3 of pamphlet No. I (general license regulations). Brokers and auctioneers in all licensed nonperishable food commodities must also conform' to the following brokers' rules : Rule 1. Commission or brolcerage charges limited. — A licensee shall not charge directly or indirectly a commission or brokerage on the sale of food commodities in excess of that which ordinarily and customarily prevails under normal conditions in the Ibcality in which the brokei''s, commission merchant's, or auctioneers business is conducted and in the particular branch of trade in question. Rule 2. Prompt remittance required. — The licensee shall remit promptly following the sale of food commodities received on consignment for sale or dis- tribution, and shall render to the consignor an account showing the true sales and with charges only for services actually performed and expenses actually incurred by the licensee. Note. — A commission merchant can not divide his commission with the buyer unless he shows on the account of sale's rendered to the consignor that he has done so. Rule 3. Charging of both brokerage and overage prohibited. — The licensee shall not charge or receive for himself, on the sale of any food commodities, both a commission or brokerage and an overage or profit. [XII— 4, 5, 6.] Rule 4. Sales to self forbidden without ivritten consent of principal. — The licensee shall not directly or indirectly sell consigned food commodities, or food commodities with the sale of which on commission he is intrusted, to himself or to anyone connected with his business without the written per- mission of his principal. Rule 5. Only one brokerage on sugar permitted. — No licensee shall charge a commission or brokerage on any sugar on which one brokerage or commission has already been charged. Rule 6. Commissions on sugar can not be split with buyer or seller. — The licensee may split with other brokers commissions or brokerage received on the sale of sugar, but shall not split such commissions or brokerage with the buyer or .seller of the sugar. Note. — The payment by a sugar broker of charges incurred by him for tele- phone and telegraph messages received by him from a buyer does not consti- tute the splitting of his commission with the buyer. Money so paid out is an expense of the brokerage business. gOLD-SXOEAGE LEGISLATION. 705 MARGINS FOR BEOKEES WHO BUT AND SEIi FOE THEIE OWN ACCOUNT. Subject to the provisions of general rules 6, 7, and 8 and the above rules governing commission merchants and brokers, brokers may in proper and nec- essary transactions, buy and sell for their own account. Transactions of this kind should be confined to the smallest possible volume and in every case must be justified by the necessity of completing cars or dividing carloads among smaller buyers; such merchants engaged in this business should be guided by the following suggested margins, which are to be regarded as maximum gross profits but are not permitted unless corresponding service is rendered : Per cent. All flour (except wheat and rye flour), hominy, grits, corn meal, oat- meal, rolled oats, beans, rice 4 Licensed cereals in packages, licensed canned goods, licensed dried fruits 5 These margins shall be inclusive of any brokerage received. In every case where a broker sells for his own account any nonperishable goods that he has purchased from a particular principal, and has received, or is .entitled to receive, a brokerage on such goods, he must deduct such broker- age before fixing his margin of profit as a jobber. [XII— 4, 5, 6 (a). Aug. 16. 1918. Substitute for XII— 4, 5, 6.] Rule 4. Sales to self forhidOen without milten consent of principal. — The licensee shall not directly or indirectly sell consigned food commodities, or food commoditites with the sale of which on commission he is intrusted, to himself or to anyone connected with his business without the written permission of his principal. Rule 5. Only one brokerage on sugar permitted. — No licensee shall charge a commission or brokerage on any sugar on which one brokerage or commission has already been charged. Rule 6 (as amended Aug. 15, 1928; effective Aug. 20, 1918). Cmnmissions must not be split icith buyer. — The licensee may split with other brokers com- missions or brokerage received on the sale of food commodities, but shall not split such commissions or brokerage with the buyer of the food commodities, or any employee of the buyer. Note. — ^The payment by a broker of charges incurred by him for telephone and telegraph messages received by him from a buyer does not constitute the splitting of his commissions with the buyer. Money so paid out is an expense of the brokerage business. MARGINS FOT BEOKERS WHO BUT AND SELL FOR THEIE OWN ACCOUNT. Subject to the provisions of general rules 6, 7, and 8, and the above rules governing commission merchants and brokers, brokers may in proper and neces- sary transactions, buy and sell for their own account. Transactions of this land should be confined to the smallest possible volume and in every case must be justified by the necessity of completing cars or dividing carloads among smaller buyers; such merchants engaged in this business should ^e. guided by the fol- lowing suggested margins which are to be regarded as maximum gross profits, but are not permitted unless corresponding service is rendered : Per cent. All flour (except wheat and rye flour), hominy, grits, cornmeal, oatmeal, ^ Licensed Tefealffirpacil'gVs7irce^ These margins shall be inclusive of any brokerage received , . 5,1^ In every case where a broker sells for his own account any nonpenshame goods that he has purchased from a particular P^^cipf and has r^^^^^^^ Is entitled to receive, a brokerage on such goods, he must deduct such broKera„e before fixing his margin of profit as a jobber. 706 COLD-STOBAGE LEGISLATION. Exhibit S. [XIII— Title.] UNITED STATES FOOD ADMINISTRATION, SPECIAL LICENSE REGU- LATIONS NO. XIII— MANUFACTURERS OF BAKERY PRODUCTS (IN- CLUDING OFFICIAL INTERPRETATIONS.) This pamphlet contains all special regulations applying to manufacturers of bakery products issued up to and including May 3, 1918, and supersedes Bakers' Regulations, Series D. Such licensees are also subject to General Regulations No. 1, issued as a separate pamphlet. LXIII— A— 1.] Special License Regulations No. XIII. &.. SPECIAL EEGULATIONS APPLYING TO ALL LICENSEES MANIXFACTUHXNG BAKEET PSODUCTS. Rule A-1. Consumption of loheat flour in hakery products, except bread and rolls, not to exceed 10 per cent of 1917 consumption. — No licensee shall, during any one of the months of February, March, April, May, June, or July, 1918, use In the manufacture of any bakery products, except bread and rolls, an amount of i wheat, or any products of wheat other than bran, shorts, or middlings, in excess of one-sixth of 70 per cent of the amount thereof used by him between February 1, 1917, and July 31, 1917 : Provided, That if the licensee shall so elect and give written notice of his election to the United States Food Administrator before February 15, 1918, he shall not be subject to the foregoing limitation, but to the following limitation : He shall not during the months of February, March, April, May, June, or July, 1918, use In the manufacture of any bakery products, except bread and rolls, an amount of wheat or any products of wheat other than bran, shorts, or middlings, in excess of 70 per cent of the amount thereof that he used in the corresponding month of the year 1917. Note. — This rule does not apply to bread and rolls, but does apply to all other bakery products. [XIII— A — 1 (b). Aug. 27, 1918. Substitute this for XIII— A— 1 (a).] Special License Regulations No. XIII. A. special regulations applying TO all licensees manufacturing bakeky PBODUCTS. Rule A-1 was repealed on August 27, 1918, effective September 1, 1918. [XIII— A— 2, 3, 4.] Rule A-2. Wheat flour substitutes defined. — Wheat flour substitutes, for the purposes of the baking regulations, shaU include bran, shorts, and middlings, corn flour, corn meal, edible cornstarch, hominy, corn grits, barley flour, rolled oats, oatmeal, rice, rice flour, buckwheat -flour, potato flour, sweet-potato flour, tapioca flour, milo, kaffir and feterita flours and meals, soy bean meal, peanut meal, taro flour, banana flour, and other products of a similar nature, but shall not Include rye flour or rye meal of any kind. Potatoes also are a wheat flour substitute. Four pounds of raw potatoes will be considered the equivalent of 1 pound of the above-mentioned substitutes. If Graham flour or so-called whole wheat flour Is used there must be added to such flour an amount of wheat flour substitutes, which, added to the bran, shorts, and middlings contained in the Graham or whole wheat flour, will equal the total amount of substitutes required. Rule A-3. Vegetable shortening defined. — Vegetable shortening, for the pur- poses of the baking regulations, shall include vegetable fats or oils exclusively, or compounds which do not contain hog fat. Rule A-4. Returns of bakery products must not be accepted. — The licensee shall not directly nor Indirectly accept, under any guise or arrangement what- ever, returns of bread or other bakery products, from any person, nor make cash payments, nor allow credit, to any retailer or other person for any unsold bread COLD-STORAGE LEGISLATION. 707 or other bakery products ; nor shall the licensee exchange any bread or other bakery products for other bread or other bakery products previously sold by him. [XIII— A— 2, 8, 4 (a). July 30, 1918. Substitute this for XIII— A— 2, 3, 4.] BuLE A-2 (as amended July 19, 1918). Wheat flour sulstitutes defined.— \Yheat flour substitutes, for the purposes of the baking regulations, are bran, shorts, and middlings, corn flour, corn meal, edible cornstarch, hominy, corn grits, barley flour, rolled oats, oatmeal, rice, i-ice flour, buckwheat flour, potato flour, sweet-potato flour, tapioca flour, milo, kaflr and feterita flours and meals, soy bean meal, peanut meal, taro flour, banana flour, and other products of a similar nature. Rye flour or rye meal is a partial wheat flour substitute on the following basis : One-fifth of the wheat flour substitutes used in any mixture may be rye flour or rye meal. Potatoes also are a wheat flour substitute. Pour pounds of raw potatoes will be considered the equivalent of 1 pound of the above-mentioned substitutes. If Graham flour or so-called whole wheat flour is used there must be added to such flour an amount of wheat flour substitutes, which, added to the bran, shorts, and middlings contained in the Graham or whole wheat flour, will equal the total amount of substitutes required. Rule A-3. Vegetable shortening defined. — (Repealed July 19, 1918.) Rule A-4r. Returns of bakery products must not lie accepted. — The licensee shall not directly or indirectly accept, under any guise or arrangement what- ever, returns of bread or other bakery products, from any person, nor make- cash payments, nor allow credit, to any retailer or other person for any unsold bread or other bakery products ; nor shall the licensee exchange any bread or other bakery products for other bread or other bakery products previously sold by him. [XIII— A — 2, 3, 4 (b). Aug. 27, 1918. Substitute this for XIII— A— 2, 3, 4 (a).] Rule A-2 (as amended Aug. 27, 1918, eftective Sept. 1, 1918). Wheat flour substitutes defined. — Wheat flour substitutes, for the purposes of the baking regulations, are bran, shorts, and middlings, corn flour, corn meal, edible corn- starch, hominy, corn grits, barley flour, rolled oats, oat meal, rice, rice flour, buckwheat flour, potato flour, sweet-potato flour, tapioca flour, milo, kaflr and feterita flours and meals, soy bean meal, peanut meal, taro flour, banana flour, and other products of a similar nature. Rye flour is not a substitute except as specifically Indicated for products of class 1 and class 2. Note. — Mixed flours and Graham and whole wheat flours manufactured in accordance with the specifications of the United States Food Administration and labeled " Victory mixed flour " or ." Victory flour " may be used without suh s t" i 1"! 1 1 p s Rule A-^. Vegetable shortening defined. — (Repealed July 19, 1918.) Rule A-4. Returns of bakery products must not be accepted. — The licensee shall not directly or indirectly accept, under any guise or arrangement what- ever, returns of bread or other bakery products, from any person, nor make cash payments, nor allow credit, to any retailer or other person for any unsold bread or other bakery products ; nor shall the licensee exchange any bread or other bakery products for other bread or other bakery products previously sold by him. [XIII— A— 2, 3, 4 (c). Sept. 14, 1918. Substitute ttiis for XIII— A— 2, 3, 4 (b).] Rule A-2 (as amended Sept. 1, 1918, effective imme6ia.tely) . Wheat flour substitutes defined.— Whesit flour substitutes, for the purposes of the bakmg regulations, are bran, shorts and middlings, corn flour, corn meal, hominy, corn grits, barley flour, rolled oats, oatmeal, rice, rice flour, buckwheat flour, potato flour sweet-potato flour, tapioca flour, milo, kaflr and feterita flours and meals, soy bean meal, peanut meal, taro flour, banana flour, and other products of a similar nature, but shall not include edible cornstarch purchased after Septem- ber 17 1018 Rye 'flour or rye meal is a partial wheat flour substitute on the following basis: One-fourth of the wheat flour substitutes used in any mixture may be ''"E"ixed%'^urs and Graham and whole wheat flours manufactured in accordance with the speciflcations of the United States Food Administration 708 COLD-STOEAGB LEGISLATION. and labeled " Victory mixed flovir " or " Victory flour " may be used without substitutes. Rule A-3. Vegetable shortening defined. — (Repealed July 19, 1918.) . Rule A— 4. Returns of bakery products must not be accepted. — ^The licensee shall not directly or indirectly accept, under any guise or arrangement what- ever, returns of bread or other bakery products, from any person, nor make cash payments, nor allow credit, to any retailer or other person for any unsold bread or other bakery products ; nor shall the licensee exchange any bread or other bakery products for other bread or other bakery products previously sold by him. [XIII— A— 2, 3, 4 (d). Nov. 16, 1918. Substitute this for XIH— A— 2, 3, 4 (c).] Rule A-2. Wheat flour substitutes (Je/iMed.^— (Repealed Nov. 12, 1918.) Rule A-3. Vegetable shortening defined. — (Repealed July 19, 1918.) RuiE A-4. Returns of bakery products must not be accepted. — The licen.see shall not directly or indirectly accept, under any guise or arrangement what- ever, returns of bread or other bakery products, from any person, nor make cash payments, nor allow credit, to any retailer or other person for any unsold bread or other iDakery products ; nor shall the licensee exchange any bread or other bakery products for other bread or other bakery products previously sold by him. [XIII— A— 2, 3, 4, 5, 6, 7, 8. Dec. 13, 1918. Substitute this for XIII— A— 2, 3, 4 (d) ; XIII— A— 5, 6, 7 (b) ; and XIII— A— 8 (b).] RuxE A-2. Wheat flour substitutes defined. — (Repealed Nov. 12, 1918.) Rule A-3. Vegetable shortening defined. — (Repealed July 19, 1918.) Rule A-4. Returns of bakery products must not be accepted. — (Repealed Dec. 12, said repeal to become effective Dec. 17, 1918.) Rule A-5. Stocks of wheat flour, sugar and shortening limited. — (Repealed Dec. 12, said repeal to become effective Dec. 17, 1918.) Rule A-6. When name " Victory" may be used. — (Repealed Nov. 12, 1918.) Rule A-7. Public eating places must serve limited portions. — (Repealed Dec, 12, said repeal to become effective Dec. 17, 1918.) Rule A-8. Baker shall not use sugar without obtainmg certificates from Fed- eral food administrator. — (Repealed Nov. 27, said repeal to become effective Dec. 1, 1918.) Note. — All regulations in Series XIII have now been repealed. However, bakers are still subject to General License Regulations No. 1. [XIII— A— 5, 6, 7.] Rule A-5. Stocks of wheat flour, sugar, and shortening, limited. — The licensee shall not, without the written consent of the United States Food Administrator, or his duly authorized representative, keep on hand or have in possession or under control, by contract or other arrangement, at any time, wheat flour or sugar in a quantity in excess of the reasonable requirements of his business for use by him during a period of 30 days, or shortening in a quantity in excess of the reasonable requirements of his business for use by him during a period of 60 days: Provided, however. That this rule shall not prevent the licensee having in transit sufficient flour or sugar or shortening to maintain the licensee's stock within the limits herein fixed. Note. — Only in cases in which peculiar circumstances demand it, will per- mission be given to a licensee to keep more than 30 days' supply of flour or sugar or more than 60 days' supply of shortening on hand or under control. ■ A licensee who desires to make an application for such permission should present his case to the Federal Food Administrator for the State in which the bakery for which permission is asked is located. This rule does not prohibit a licensee who is entitled to use butter from hold- ing or arranging for a season's supply. Rule A-6. When name " Victory " may be used. — No licensee manufacturing bakery products shall use the name " Victory " in connection with the adver- tising or sale of the same, unless the total wheat flour and substitute content of such bakery products contains at least the percentage of wheat flour substitutes stated below : COLD-STOEAQE LEGISLATION. 709 Class 1, bread and rolls 05 Class 2, sweet yeast dough goods I ~__ 001 Class 3a, crackers _!___! 331 Class 3b, biscuits, cookies, and ice-cream conesII_ qqi Class 4a, cakes oil Class 4b, pies "_I II I__II 2^* Class 4c, fried cakes _ |q| Class 4d, pastry II I— IlirillirilllllllH 33I Class 5, quick breads, Boston brown bread, batter cakes, "and waffles__IIII eef Rule A-7 PuUio eating places must serve limited portions.— t^o licensee operating a hotel, restaurant, dining car, steamship, boarding house, or other public eating place, or club, shall serve to any person at ahy meal more than 2 ounces of bread or rolls of class 1, or 4 ounces of muffins, corn bread, Boston brown bread, baking powder biscuits, or quick breads of class 5, or of other breads containing 33J per cent or less of wheat flour. Note.— No limit has been placed upon the amount of wheatlesg bread that [XIII— A— 5, 6, 7 (a). Sept. 14, 1918. Substitute this for XIII— A— 5, 6, 7.] Rule A-5 fas amended Sept. 1, 1918, efCective immediately). Storks of wheat now; sugar, and shortening liwited.—The licensee shall not, without the written consent of the United States Food Administrator, or his duly authorized repre- sentative, keep on hand or have in possession at any time, cane or beet sugar in a quantity in excess of the reasonable requirements of his business for use by him during a period of 30 days, or wheat flonr, wheat flour substitutes, or shortening in a quantity in excess of the reasonable requirements of his busi- ness for use by him during a period of 60 days : Provided, That this rule shall not apply to butter, nor shall it prevent the licensee having in transit sufficient sugar or flour or shortening to maintain the licensee's stock within the limits herein fixed. Note. — Only in eases in which peculiar circumstances demand it, will per- mission be given to a licensee to keep more than 30 days' supply of sugar or more than 60 days' supply of flour, substitutes, or shortening on hand or under control. A licensee who desires to make an application for such permission should present his case to the Federal food administrator for the State in which the bakery for which permission is asked is located. Rule A-6 (as amended Sept. 1, 1918, effective immediately). When name " Victory " may lie used. — No licensee manufacturing bakery products shall use the name " Victory" in connection with the advertising or sale of the same, unless the total wheat flour and substitute content of such bakery products contains at least the percentage of wheat flour substitutes stated below : Per cent. Class 1, bread and rolls 20 Class 2, .sweet yeast dough goods _ ' 20 Class 3a, crackers 10 Class 3b, biscuits, cookies and ice cream cones 20 Class 4a, cakes pO Class 4b, pies 20 Class 4c, fried cakes 20 Class 4d, pastry 20 Class 5, quick breads, Boston brown bread, batter cakes and waffles 50 Rule A-7 (as amended Sept. 1, 1918, effective immediately). PuUic eating places must serve limited portions.— No licensee operating a hotel, restaurant, dinin<' car steamship, boarding house, or other public eating place, or club, shall serve' to any person at any meal more than 2 ounces of bread or rolls of class 1 or 4 ounces of breads of class 5, or 4 ounces of any other breads : Pro- merl. That this shall not apply to sandwiches or bread served at boarding camps, or to rye bread which contains at least 50 per cent of rye flour. [XIII— A— 5 6 7 (b). Nov. 16, 1918. Substitute tMs for XIII— A— 5, 6, 7 (a).] ' ' [XIII— A — 8.] Rule A-5 (as amended Nov. 12, 1918). Stocks of wheat flour, st^ff<^^, a^^dshort- enmo lindted.-The licensee shall not, without the written consent of the United States Food Administrator, or his duly authorized representative, keep on ban-* 710 COLD-STOEAGE LEGISLATION. or have in possession at any time, cane or beet sugar in a quantity in excess of the reasonable requirements of his business for use by him during a period of 30 days, or wheat flour in a quantity In excess of the reasonable requirements of his business for use by him during a period of 90 days, or shortening in a quantity in excess of the reasonable requirements of his business for use by him during a period of 60 days: Provided, That this rule shall not apply to butter, nor shall it prevent the licensee from having on hand not to exceed a carload of wheat flour. Rule A-6. When name "Victory" may be Used. (Repealed Nov. 12, 1918.) Rule A-7 (as amended Sept. 1, 1918, efEective immediately). Public eating places must serve limited portions. — No licensee operating a hotel, restaurant, dining car, steamship, boarding house, or other public eating place, or club, shall serve to any person at any meal more than 2 ounces of bread or rolls of class 1, or 4 ounces of breads of class 5, or 4 ounces of any other breads : Pro- vided, That this shall not apply to sandwiches or bread served at boarding camps, or to rye bread which contains at least 50 per cent of rye flour. Rule A-8. Baker shall not use sugar in malcing confectionery or products other than bakery products without obtaining certificates from the Federal food administration. — The licensee shall not, after May 15, 1918, use sugar in the manufacture, bottling, or preparation of any products other than bakery products, until he has obtained from the Federal food administrator of the State where such product is ' manufactured or prepared, certificates that the total amount of sugar to be so used will not exceed his fair share of the sugar then available for distribution. The licensee shall not buy sugar for such purposes without turning in a certificate for the amount purchased. In transferring sugar from his baker's stock for such purposes he shall cancel certificates repre- senting the amount of sugar so transferred and shall file them at the end of each month with the Federal food administrator whose name is signed thereto. NoTCE. — The above rule was promulgated May 2, 1918. It does not affect licensees who manufacture only bakery products. [Xiri— A— 8 (a). July 30, 1918. Substitute this for XIII— A— 8.] Rule A-8 (as amended June 25, 1918). Baker shall not use sugar vHthmt obtaining certificates from Federal food administrator. — The licensee shall not after July 1, 191S, use sugar in the manufacture or preparation of any bakery products or other products containing sugar until he has obtained from the Fed- eral food administrator of the State where such products are manufactured, or prepared, certificates that the total amount of sugar to be so used will not ex- ceed his fair share of the sugar then available for distribution. The licensee shall not buy sugar without turning in a certificate for the amount purchased, issued to him by the Federal Food Administrator of his State. Note. — The above rule supersedes rule A-8 issued May 2, 1918. It now applies to all sugar used by any person manufacturing bakery products. For the present sugar certificates will be issued by the Federal food adminis- trators of the several States on the basis of 70 per cent of the licensee's con- sumption during the month of June, 1918 ; or at the licensee's option 70 per cent of the amount used by him during the corresponding quarter of 1917 if shown by the actual records of his business. [XIII— A— 8 (b). Dec. 12, 1918. Substitute this for XIII— A— 8 (a).] Rule 8. Baker shall not use sugar without obtaining certificates from Fed- eral food administrator. — (Repealed Nov. 27, 1918.) [XIII— B — 1.] B. SPECIAL regulations APPLYING TO CLASS 1, BREAD AND ROLLS. Definition. — For the purposes of these regulations, bread and rolls are defined as follows : Baked mixtures of flour, meal, or similar products, with water, and with or without leavening agents, salt, s.hortening, milk, eggs, sweetening, grain extracts, nuts, fruits, seeds, spices, or other flavoring materials, such as pan bread, hearth bread, wheat bread, rye bread, graham bread, raisin bread, and similar breads and hard rolls, soft rolls, milk rolls, Parker House rolls, finger rolls, lunch rolls, bread rolls, and similar rolls. Rule 1. Twenty-five per cent of wheat-flour substitutes must be used. — No licensee shall manufacture any products of class 1 without using in the manufae- COLD-STOKAGE LEGISLATION. 711 ture thereof at least 1 pound of wheat-flour substitutes for each 3 pounds of wheat flour so used. Note. — Rye bread must contain at least 1 pound of wheat-flour substitutes for each 3 pounds of wheat flour used in It. No substitutes are required for the rye- flour' used. [XIII— B^l (a). Aug. 27, 1918. Substitute this for XIII— B—1.] B. SPECIAL BEGTILATIONS APPLYING TO CLASS 1, BREAD AND ROLLS.. Dvfliiition.— For the purposes of these regulations, bread and rolls are defined as follows : Baked mixtures of flour, meal or similar products, with water, and with or without leavening agents, salt, shortening, milk, eggs, sweeten- ing, grain extracts, nuts, fruits, seeds, spices, or other flavoring materials, such as pan bread, hearth bread, wheat bread, rye bread, Graham bread, raisin bread, and similar breads and hard rolls, soft roUS, milk rolls, Parker House rolls, finger rolls, lunch rolls, bread rolls, and similar rolls. Rule 1 (as amended Aug. 27, 1918, efEective Sept. 1, 1918). Twenty per cent of wheat flour suistitvtes must he used. — No licensee shall manufacture any products of class 1 without using in the manufacture thereof at least 1 pound of wheat flour substitutes for each 4 pounds of wheat flour so used or 2 pounds of rye flour for each 3 pounds' of wheat flour so used. [XIII — B— 1 (b). Nov. 16, 1918. Substitute this for XIII— B—1 (a).] B. SPECIAL REGULATIONS APPLYING TO CLASS 1, BREAD AND BOLLS. Definition. — For the purposes of these regulations, bread and rolls are de- fined as follows : Baked mixtures of flour, meal, or similar products, with water, and with or without leavening agents, salt, shortening, milk, eggs, sweetening, grain extracts, nuts, fruits, seeds, spices. Or other flavoring mate- rials, such as pan bread, hearth bread, wheat bread, rye bread, Graham bread, raisin bread, and similar breads and hard rolls, soft rolls, milk rolls, Parker House rolls, finger rolls, lunch rolls, bread rolls, and similar rolls. Rule 1. Twenty per cent of wheat flour suhstitutes must he used. — (Repealed Nov. 12, 1918.) VXIII — B — 1, 2. 3, 4, 5, 6, 7. Dec. 13, 1918. Substitute ■this for the following: XIII— B—1 (b) ; XIII— B— 2; XIII— B— 3, 4, 5, 6, 7 (b).] B. SPECIAL REGULATIONS APPLYING TO CLASS 1, BREAD AND BOLLS. Definition. — For the purposes of these regulations, bread and rolls are de- fined as follows: Baked mixtures of flour, meal, or similar products, with water, and with or without leavening agents, salt, shortening, milk, eggs, Bweetening, grain extracts, nuts, fruits, seeds, spices, or other flavoring mate- rials, such as pan bread, hearth bread, wheat bread, rye bread, Graham bread, raisin bread, and similar breads and hard rolls, soft rolls, milk rolls, Parker House rolls, finger rolls, lunch rolls, and similar rolls. Rule 1. Twenty per cent of wheat flour substitutes must he used. — (Repealed Nov. 12, 1918.) ^ . Rule 2. Weight of Joaves.- (Repealed Dec. 12, said repeal to become effective Dec. 17, 1918.) ,„ .^ Rule 3. Maximum weight of rolls, % OMWces.— (Repealed Dec. 12, said repeal to become ecective Dec. 17, 1918.) Rule 4. Amount of sugar imt«e(i.— (Repealed Nov. 12, 1918.) Rule 5. Use of shortening JiwMteti.- (Repealed Dee. 12, said repeal to become efEective Dec. 17, 1918.) . , ., ^ ,„ Rule 6. Milk may he used if price of bread is not increased thereby.— (liti- paled Dec. 12, said repeal to become effective Dec. 17, 1918.) , ^ t-, Rule 7. Sugar or shortening must not he added to dough. — (Repealed uec. 12, said repeal to become efeective Dec. 17, 1918.) „„,„„„„,. Note.— All regulations in Series XIII have now been repealed. Howevei, bakers are still subject to General License Regulations No. 1. [XIII— B— 2.] Rule 2. Weight of ?oave«.-No licensee shall manufacture bread except in the following weights, which shall be net weights 12 hours after baking Three-qZtels pound, 1 pound, 1* pounds, 2 pounds, 3 pounds, 4 pounds, 5 pounds, or other pound weights. 712 COLD-STORAGE LEGISLATION. Provided, That rye bread, the flour and meal content of which contains 40 per cent or less of wheat flour, need not conform to the foregoing weight re- quirements if such rye bread is sold to the consumer by weight and not by the loaf, Variations at the rate of 1 ounce per pound over and 1 ounce per pound under the above-specified unit weights are permitted in individual loaves, but the average weight of not less than 25 loaves of any one unit of any one kind- shall be not less than the weight prescribed by these regulations for such unit. The licensee may only bake twin or multiple loaves on the following condi- tions: If the twin or multiple loaf is wrapped at the bakery and sold to the consumer wrapped and undivided, the loaf must conform to the above weight requirements ; if the twin or multiple loaf is unwrapped or divided before being sold to the consumer, each unit of the loaf must conform to the above weight requirements. Notes. — ^A twin or multiple loaf is one that is made of two or more portions of dough baked in one pan. Single units weighing less than three-quarters pound must not be baked. Although a licensee may manufacture loaves only of the weights prescribed, he may cut and sell a portion of a loaf to a consumer. Bread may be sold at any time after baking. It is not required that bread should remain unwrapped for any specified length of time after baking. [XIII— B— 3, 4, 5, 6, 7.] RtTLE 3. Maximum weight of rolls, 2 ounces. — No licensee shall manufacture rolls except in units weighing not to exceed 2 ounces, net weight, 12 hours after baking. Note. — This rule does not prohibit the baking of pans of rolls if the units conform to the weight requirements. There is no minimum weight requirement for rolls. Rule 4. Amoimt of sugar limited. — No licensee, in making products of class 1, shall use more than 6 pounds of cane or beet sugar, or 7 pounds of corn sugar, or 7 pounds of invert sugar to 196 pounds of any flour or meal or any mixture thereof. In reckoning the above amounts the licensee shall include added sugars contained in milk, grain extracts, and other ingredients. Note. — The use of grain extracts, molasses, and other refiners' products, from which granulated sugar can not be obtained commercially Is not limited, except in respect to added sugars. Rule 5. Shorterwng — Use of animal fats prohiMted. — No licensee making products of class 1 shall use any shortening except vegetable shortening. Not more than 2 pounds of vegetable shortening may be used to 196 pounds of any flour or meal or any mixture thereof. Note. — The 2 pounds of shortening permitted do not include fats used In greasing pans. Rule 6. Milk may be used if price of bread is not increased thereby. — The licensee in making products of class 1 may use milk therein in any form or in any qiiantity, except as the amount of added sugar is limited by rule 4, pro- vided that the price at which he sells such bread or rolls is no greater than the price at which he sells bread or rolls made without mtlk. Note. — The added sugar In sweetened condensed milk shall be computed as one-third of the weight of such sweetened condensed milk. Rule 7. Sugar or shortening must not be added to dough. — The licensee in making products of class 1 shall not add sugar or shortening to the dough during the process of baking, or to the bread or rolls when baked. [XIII— B— 3, 4, 5, 6, 7 (a). July 30, 1918. Substitute this for XIII— B— 3, 4, 5, 6, 7.] Rule 3. Maximum, weight of rolls, 2 ounces. — No licensee shall manufacture rolls except in units weighing not to exceed 2 ounces, net weight, 12 hours after baking. Note. — This rule does not prohibit the baking of pans of rolls if the units conform to the weight requirements. There Is no minimum weight require- ment for rolls. Rule 4. Amount of sugar limited. — No licensee, in making products of class 1, shall use more than 6 pounds of cane or beet sugar, or 7 pounds of corn sugar, or 7 pounds of invert sugar to 196 pounds of any flour or meal or any mixture thereof. In reckoning the above amounts the licensee shall include added sugars contained In milk, grain extracts, and other ingredients. COLD-STORAGE LEGISLATION. 713 Note.— The use of grain extracts, molasses, and other refiners' products from l^:^,'^XVa!^Z^^i.''''' '^ ^'^^'"^'^ commercially is not ifmited, except Rule 5 (as amended July 19, 1918). Use of shortening limited.— No licensee in making products of class 1 shall use more than 2 pounds of shortening to 196 pounds of any flour or meal or any mixture thereof "iL«uiug to Note.— The 2 pounds of shortening permitted do not include fats used in greasing pans. Rule 6. Milk may be used if price of bread is not increased therebv— The licensee in making products of class 1 may use milk therein in any form or in any quantity, except as the amount of added sugar is limited by rule 4 pro- vided that the price at which he sells such bread or rolls is no greater' than the price at which he sells bread or rolls made without milk. Note.— The added sugar in sweetened condensed milk shall be computed as one-third of the weight of such sweetened condensed milk. Rule 7. Sugar or shortening must not be added to dough.— The licensee in making products of class 1 shall not add sugar or shortening to the dough during the process of baking, or to the bread or rolls when baked. [XIII— B— 3, 4, 5, 6, 7 (b). Nov. 16, 1918. Substitute thia for XIII— B— 3, 4, 5 6, 7(a).] Rule 3. Maximum weight of rolls, 2 ounces. — No licensee shall manufacture rolls except in units weighing not to exceed 2 ounces, net weight, 12 hours after baking. Note.— This rule does not prohibit the baking of pans of rolls if the units conform to the weight requirements. There is no minimum weight requirement for rolls. Rule 4. Amount of sugar limited. — (Repealed Nov. 12, 1918.) Rule 5 (as amended July 19, 1918). Use of shortening limited.— No licensee in making products of class 1 shall use more than 2 pounds of shortening to 196 pounds of any flour or meal or any mixture thereof. Note. — The 2 pounds of shortening permitted do not include fats used in greasing pans. Rule 6. Milk may be used if price of bread 'is not increased thereby. — The licensee in making products of class 1 may use milk therein in any form or in any quantity, except as the amount of added sugar is limited by rule 4, provided that the price at which he sells such bread or rolls is no greater than the price at which he sells bread or rolls made without milk. Note. — The added sugar in sweetened condensed milk shall be computed as one-third of the weight of such sweetened condensed milk. Rule 7. Sugar or shortening must not be added to dough. — The licensee in making products of class 1 shall not add sugar or shortening to the dough dur- ing the process of baking, or to the bread or rolls when baked. [XIII— c—i, 2.] C. SPECIAL EEGULATIONS APPLYING TO CLASS 2, SWEET-YBAST DOUGH GOODS. Definition. — For the purposes of these regulations, sweet-yeast dough goods are defined as follows : Baked mixtures of flour, meal, or similar products, with water, yeast, salt, and sweetening, and with or without milk, shortening, eggs, fruits, nuts, seeds, spices, or other flavoring materials, and flUing, such as apple, peach, apricot, plum, cherry, and huckleberry cake, cheese cake, coffee cake, coffee rings, coffee half moons, coffee wreaths, coffee loaf, cinnamon rolls, struessels zwieback, and similar products. Rule 1. Thirty-three and one-third per cent of wheat flour substitutes must be used. — No licensee shall manufacture any products of class 2 without using in the manufacture thereof at least 1 pound of wheat flour substitutes for each 2 pounds of wheat flour so used. Rule 2. Shortening — Use of animal fats prohibited. — The licensee shall use no shortening except vegetable shortening in products of class 2. [XIII C— 1, 2 (b). Aug. 27, 1918. Substitute this for XIII— C—1, 2 (a).] C. SPECIAL EEGULATIONS APPLYING TO CLASS 2, SWEET-YEAST DOUGH GOODS. Definition.— 'For the purposes of these regulations, sweet-yeast dough goods are defined as follows : Baked mixtures of flour, meal, or similar products, with 714 COLD-STOEAGB LEGISLATIOlir. water, yeast, salt, and sweetening, and with or without milk, shortening, eggs, fruits, nuts, seeds, spices, or other flavoring materials, and filling, such as apple, peach, apricot, plum, cherry, and huckleberry cake, cheese cake, coffee cake, coffee rings, coffee half moons, coffee wreaths, coffee loaf, cinnamon rolls, struessels, zwelback, rusks, and similar products. RuuE'l (as amended Aug. 27, 1918, effective Sept. 1, 1918). Twenty per cent of wheat-flour substitutes must be used. — No licensee shall manufacture any products of Class 2 without using In the manufacture thereof at least 1 pound of wheat-flour substitutes for each 4 pounds of wheat flour so used or 2 pounds of rye flour for each 3 pounds of wheat flour so used : Provided, That In zwel- back and rusks 1 pound of waeat-flour substitutes for each 9 pounds of wheat flour may be used. Rule 2. Shortening — Use of animal fats prohibited. — (Repealed July 19, 1918.) [XIII— C—l, 2 (c). Sept. 14, 1918. Substitute this for XIII— C—1, 2 (b).] 0. SPECIAL REGULATIONS APPLYING TO CLASS 2, SWEET-YEAST DOUGH GOODS. Definition. — For the purposes of these regulations, sweet-yeast dough goods are defined as follows : Baked mixtures of flour, meal, or similar products, with water, yeast, salt, and sweetening, and with or without milk, shortening, eggs, fruits, nuts, seeds, spices, or other flavoring materials, and fllllng, such as apple, peach, apricot, plum, cherry, and huckleberry cake, cheese cake, coffee cake, coffee rings, coffee half moons, coffee wreaths, coffee loaf, cinnamon rolls, struessels, zwelback, rusks, and similar products. Rule 1 (as amended Sept. 1, 1918, effective Immediately). Twenty per cent of wheat-flour substitutes must be used. — No licensee shall manufacture any products of Class 2 without using in the manufacture thereof at least 1 pound of wheat-flour substitutes for each 4 pounds of wheat flour so used : Provided, That in zwelback and rusks 1 pound of wheat-flour substitutes for each 9 pounds of wheat flour may be used. Rule 2. Shortening — Use of animal fats prohibited. — ( Repealed July 19, 1918. ) [XIII— C—l, 2 (c). Nov. 16, 1918. Substitute tliis for XIII— C—l, 2 (c) ; XIII— D— 1, 2 (b) ; XIII— E—1, 2 (b) ; XIII— F—1 (a) ; XIII— G — 1, 2 (b) ; XIII— H—1, 2 (b) ; XIII— I -1 (a) ; XIII— J— 1, 2 (c).] C. SPECIAL REGULATIONS APPLYING TO CLASS 2, SWEET-YEAST DOUGH GOODS. Rule 1. Twenty per cent of wheat-flour substitutes must be used. — (Repealed Nov. 12, 1918.) D. SPECIAL REGULATIONS APPLYING TO CLASS 3a, CRACKERS. Rule 1. Twenty per cent of wheat-flour substitutes must be tised. — (Repealed Nov. 12, 1918.) E. SPECIAL REGULATIONS APPLYING TO CLASS 3b, BISCUITS, COOKIES, AND ICE-CREAM CONES. Rule 1. Twenty per cent of toheat-flour substitutes must be used. — (Repealed Nov. 12, 1918.) F. SPECIAL REGULATIONS APPLYING TO CLASS 4a. CAKES. Rule 1. Twenty per cent of wheat-flour substitutes must be used. — (RepealeS Nov. 12, 1918.) G. SPECIAL REGULATIONS APPLYING TO CLASS 4b. PIES. Rule 1. Twenty per cent of wheat-flour substitutes must be used. — (Repealed Nov. 12, 1918.) H. SPECIAL REGULATIONS APPLYING TO CLASS 4C. ^FRIED CAKES. Rule 1. Twenty per cent of wheat-flour substitutes most be used. — (Repealed Nov. 12, 1918.) COLD-STOEAGB LEGISLATION. 715 I. SPECIAL KEGULATIONS APPLYING TO CLASS 4d. PASTRY. ■Rule 1. Twenty per cent of -wheat-flour substitutes most be wset?.— (Repealed Nov. 12, 1918.) J. SPECIAL EEGULATIONS APPLYING TO CLASS 5.— QUICK BREADS, ETC. Rule 1. Fifty per cent of wheat- flour substitutes must be used. [XIII— D—l, 2.] D. SPECIAL KEGULATIONS APPLYING TO CLASS 3A, CRACKERS. Definition.— For the purposes of these regulations, crackers (sponge and plain goods) are defined as follows: Baked mixtures of flour, meal, or similar products with water and with or without leavening agents, salt, and shortening, such as soda crackers, hard bread, matzoth, pretzels, and similar products. Rule 1. Fifteen per cent of loheat-flour substitutes must be used. — No licensee shall manufacture any products of class 3a without using in the manufacture thereof at least 15 pounds of wheat-flour substitutes for each 85 pounds of wheat flour so used : Provided, That this rule shall not apply to hard bread and Navy biscuit manufactured for the United States Government. Rule 2. Shortening — Use of animal fats limited. — Not more than 50 per cent of the shortening used in products of class 3a shall be animal fat. [XIII — D — 1, 2 (a). July 30, 1918. Substitute this for XIII— D — 1, 2.] D. SPECIAL REGUIATIONS APPLYING TO CLASS 3A, CRACKERS. Definition. — ^For the purposes of these regulations, crackers (sponge and plain goods) are defined as follows: Baked mixtures of flour, meal, or similar products with water and with or without leavening agents, salt, and shortening, such as soda crackers, hard bread, matzoth, pretzels, and similar products. Rule 1. Fifteen per cent of wheat-flour substitutes must be used. — No licensee shall manufacture any products of class 3a without using in the manufacture thereof at least 15 pounds of wheat-flour substitutes for each 85 pounds of wheat flour so used : Provided, That this rule shall not apply to hard bread and Navy -biscuit manufactured for the United States Government. Rule 2. Shortening — Use of animal fats limited. — (Repealed July 19, 1918.) [XIII— D — 1, 2 (b). Aug. 27, 1918. Substitute this for XIII— D—l, 2 (a).] D. SPECIAL REGULATIONS APPLYING TO CLASS 3A, CRACKERS. Definition. — For the purposes of these regulations, crackers (sponge and plain goods) are defined as follows: Baked mixtures of flour, meal, or similar products with water and with or without leavening agents, salt, and shortening, such as soda crackers, hard bread, matzoth, pretzels, and similar products. Rule 1 (as amended Aug. 27, effective Sept. 1, 1918). Ten per cent of wheat- flour substitutes must be used.— No licensee shall manufacture any products of class 3a without using in the manufacture thereof at least 1 pound of wheat- flour substitutes for each 9 pounds of wheat flour so used : Provided, That this rule shall not apply to hard bread and Navy biscuit manufactured for the United States Government or matzoth manufactured for the Passover. Rule 2. Shortening — Use of animal fats limited. — (Repealed July 19, 1918.) [XIII— E — 1, 2.] E. special REGULATIONS APPLYING TO CLASS 3B, BISCUITS, COOKIES, AND ICE-CKEAM CONES. Definition.— ^For the purposes of these regulations, biscuits, cookies, and ice- cream cones (sweet goods) are defined as follows: Baked mixtures of flour, meal, or similar products with water and sweetening, and with or without leavening agents, salt, flavoring, filling, topping, icing, shortening, eggs, milk, gelatin, grains, nuts, fruits, seeds, spices, or cocoa, and their products, sucli as gingersnaps, cookies, honey cakes, fig bars, vanilla wafers, graham biscuits, iced goods, sugar wafers, ice-cream cones, and similar products. 137690—19 46 716 COLD-STORAGE LEGISLATION. Rule 1. Thirty-three and one-third per cent of wheat-flour substitutes must he used. — No licensee shall manufacture any products of class 3b without using in the manufacture thereof at least 1 pound of wheat-flour substitutes for each 2 pounds of wheat flour so used. Rule 2. Shortening — Use of animal fats limited. — Not more than 50 per cent of the shortening used in products of class 3b shall be animal fat. [XIII— E—l, 2 (a). July 30, 1918. Substitute this for XIII— E—1, 2.] E. SPECIAL EEGUIATIONS APPLYING TO CLASS 3B, BISCUITS, COOKIES, AND ICE-CKEAM CONES. Definition. — For the purposes of these regulations, biscuits, cookies, and ice- cream cones (sweet goods) are defined as follows: Baked mixtures of flour, meal, or similar products with water and sweetening, and with or without leav- ening agents, salt, flavoring, filling, topping, icing, shortening, eggs, milk, gela- tin, grains, nuts, fruits, seeds, spices, or cocoa, and their products, such as gin- gersnaps, cookies, honey cakes, fig bars, vanilla wafers, Graham biscuits, iced goods, sugar wafers, ice-cream cones, and similar products. Rule 1. Thirty-three and one-third per cent of wheat-flour substitutes mMst be used. — No licensee shall manufacture any products of class 3b without using in the manufacture thereof at least 1 pound of wheat-flour substitutes for each 2 pounds of wheat flour so used. Rule 2. Shortening — Use of animal fats limited. — (Repealed July 19, 1918.) [XIII — E— 1, 2 (b). Aug. 27, 1918. Substitute tMs for XIII— B—1, 2 (a).] E. SPECIAL EEGULATIONS APPLYING TO CLASS 3B, BISCUITS, COOKIES, AND ICE-CKBAM CONES. Definition. — For the purposes of these regulations, biscuits, cookies, and ice- cream cones (sweet goods) are defined as follows: Baked mixtures of flour, meal, or similar products with water and sweetening, and with or without leav- ening agents, salt, flavoring, filling, topping, icing, shortening, eggs, milk, gela- tin, grains, nuts, fruits, seeds, spices, or cocoa, and their products, such as gln- gersnaps, cookies, honey cakes, fig bars, vanilla wafers, Graham biscuits, iced goods, sugar wafers, ice-cream cones, and similar products. Rule 1 (as amended Aug. 27, 1918, effective Sept. 1, 1918). Twenty per cent of wheat-flour substitutes must be used. — No licensee shall manufacture any products of class 3b without using in the manufacture thereof at least 1 pound of wheat-flour substitutes for each 4 pounds of wheat' flour so used. Rule 2. Shortening — Use of animal fats Ivmited. — (Repealed July 19, 1918.) [XIII— F— 1.1 F. SPECIAL EEGULATIONS APPLYING TO CLASS 4A, CAKES. Defimtion. — For the purposes of these regulations, cakes are defined as fol- lows : Baked mixtures of flour, meal, or similar products with water, leavening agents, and sweetening, and with or without shortening, eggs, milk, fruits, nuts, spices, or other flavoring materials, such as soft cake, box cake, wine cake, form cake, sponge cake, layer cake, cup cake, drop cake, pound cake, fruit cake, angel food, devil food, and similar cakes ; and cream pufCs, eclairs, macaroons, kisses, and similar products. Rule 1. Thirty-three and one-third per cent of wheat-flour substitutes must be used. — ^No licensee shall manufacture any products of class 4a without ' ■ ■ using in the manufacture thereof at least 1 pound of wheat-flour substitutes for each 2 pounds of wheat flour so used. [XIII— F—l (a). Aug. 27, 1918. Substitute this for XIII— F— l.J F. SPECIAL EEGULATIONS APPLYING TO CLASS 4A, CAKES. Definition. — For the purposes of these regulations, cakes are defined as fol- ij ^^ lows : Baked mixtures of flour, meal, or similar products with water, leavening ; ; , agents, and sweetening, and with or without shortening, eggs, milk, fruits, nuts, ,, ,, ,, spices; or other flavoring materials, such as soft cake, box cake, wine cake, form , , , cake, sponge cake, layer cake, cup cake, drop cake, pound cake, fruit cake, angel :^ „,, COLD-STORAGE LEGISLATION. 717 food, devil food, and similar cakes ; and cream puffs, eclairs, macaroons, kisses and similar products, and plum pudding. Rule 1 (as amended Aug. 27, 1918, effective Sept. 1, 1918). Twenty per cent of wheat-flour substitutes must be used.— No licensee shall manufacture any products of class 4a without using in the manufacture thereof at least 1 pound of wheat-flour substitutes for each 4 pounds of wheat flour so used. [XVII— F—l, 2. July 31, 1918. Substitute for XVII— F.] New ; effective August 1, 1918. F. SPECIAL LICENSE EEGULATIONS GOVERNING ALL LICENSED FISHERMEN OPERATING IN THE "ATLANTIC COAST INSIDE WATER." Rule 1. Licensees shall fish freely— Exceptions.— The licensee shall conduct his fishing operations in such places in the "Atlantic coast inside waters " at such times and by the use of such gear and equipment as will result in the greatest possible production of edible fish : Provided, That these regulations shall not authorize (1) the placing, setting, or operation of fish traps, pounds, or weirs in any location forbidden by the War Department, or (2) the fishing operation by any enemy, alien enemy, or ally of enemy fishermen without compliance with all regulations prescribed by the Department of Justice, or (3) any fishing operation in violation of other laws of the United States, or of State or local laws or regulations which do not prohibit or restrict the operations expressly authorized and described by special rules following. Rule 2. Closed seasons and size restrictions. — ^Licensees conducting fishing operations in Atlantic coast inside waters shall not market or unnecessarily destroy in fishing operations salt-water fish or smaller sizes than are authorized by the laws of the State in whose water such fish are caught or landed, and shall comply with any State laws prescribing closed season on any variety of salt-water fish, except as such restrictions or closed seasons are modified by regulations hereinafter issued. Note — Modification of State laws. — Whenever in any State the Federal food administrator and the State fish commission decide that a modification of the size restrictions or closed seasons, or permitting fishing in certain waters without permits from the local authorities, is in the interest of increased production or the avoidance of waste supplemental regulations may be issued containing such modifications, and the licensee will then be governed by these supplemental regulations in pursuing his fishing operations and may fish and market his catch in accordance therewith. [XIII — G— 1, 2 (a). July 30, 1918. Substitute for XIII— G—1, 2.] G. SPECIAL REGULATIONS APPLYING TO CLASS 4B, PIES. Definition. — For the purposes of these regulations pies are defined as follows : Articles consisting of one or more baked crusts with filling. Pie crust consists of baked mixtures of flour, meal, or similar products, with water, shortening, and salt, and with or without sweetening or milk. Rule 1. Thirty-three and one-third per cent of wheat-flour substitutes must le usfid. — No licensee shall manufacture any products of class 4b without using in the manufacture thereof at least 1 pound of wheat-flour substitutes for each 2 pounds of wheat flour so used. Rule 2. Shortening — Use of animal fats prohibited. — (Repealed July 19, 1918.) [XIII — G — 1, 2 (b). Aug. 27, 1918. Substitute for XIII — G — 1, 2 (a).] G. SPECIAL REGULATIONS APPLYING TO CLASS 4B, PIES. DefitUtion. — For the purposes of these regulations pies are deflned as follows : Articles consisting of one or more baked crusts with filling. Pie crust consist? of baked mixtures of flour, meal, or similar products, with water, shortening, and salt, and wih or without sweetening or milk. BuxE 1 (as amended Aug. 27, 1918, effective Sept. 1, 1918). Twenty per cent nf wheat-flour substitutes must be used.— No licensee shall manufacture any products of class 4b without using in the manufacture thereof at least 1 pound of wheat-flour substitutes for each 4 pounds of wheat flour so used. Rule 2. Shortening — Use of animal fats prohibited. — (Repealed July 19, 1918.) 718 COLD-STORAGE LEGISLATION. [XIII— H—1, 2.] H. SPECIAL KEGrLATIONS APPLYING TO CLASS 4C, FKIED CAKES. Definition. — For the purposes of these regulations fried calies are defined as follows: Mixtures of flour, mefil, or similar products, with water, salt, leaven- ing agents, and shortening, and with or without sweetening, fruits, eggs, milk, nuts, spices, or other flavoring materials, made by cooking in fat, such as doughnuts, crullers, and similar products. Rule 1. Thirty-three and one-third per cent of loheat-flour substitutes must lie used. — No licensee shall manufacture any products of class 4c without using in the manufacture thereof at least 1 pound of wheat-flour substitutes for each 2 pounds of wheat flour so used. Rule 2. Shortening — Use of animal fats prohihited. — The licensee shall use no shortening except vegetable shortening in products of class 4c, or in the cooking thereof. [XIII— H—l, 2 (a). July 30, 1918. Substitute this for XIII— H—1, 2.] H. SPECIAL EEGULATIONS APPLYING TO CLASS 4C, FRIED CAKES. Definition. — For the purposes of these regulations fried cakes are defined as follows : Mixtures of flour, meal, or similar products, with water, salt, leavening agents, and shortening, and with or without sweetening, fruits, eggs, milk, nuts, spices, or other flavoring materials, made by cooking in fat, such as doughnuts, crullers, and similar products. Rule 1. Thirty-three and, one-third per cent of tvlieat flour substitutes must be used. — No licensee shall manufacture any products of class 4c without using in the manufacture thereof at least 1 pound of wheat-flour substitutes for each 2 pounds of wheat flour so used. Rule 2. Shortening — Use of animal fats prohibited.— Repealed July 18, 1918.) [XIII— H—l, 2 (b). Aug. 27, 1918. Substitute this for XIII— H—l, 2 (a).] H. SPECIAL EEGULATIONS APPLYING TO CLASS 4C, FKIED CAKES. Definition. — For the purposes of these regulations fried cakes are defined as follows : Mixtures of flour, meal, or similar products, with water, salt, leavening agents, and shortening, and with or without sweetening, fruits, eggs, milk, nuts, spices, or other flavoring materials, made by cooking in fat, such as doughnuts, crullers, and similar products. Rule 1 (as amended Aug. 27, 1918, effective Sept. 1, 1918). Twenty per cent of wheat-flour substitutes must be used. — No licensee shall manufacture any pro- ducts of class 4c without using in the manufacture thereof at least 1 pound of wheat-flour substitutes for each 4 pounds of wheat flour so used. Rule 2. Shortening — Use of animal fats prohibited. — (Repealed July 18, 1918.) [XIII— I— 1.] I. SPECIAL EEGULATIONS APPLYING TO CLASS 4D, PASTEY. Definition. — ^For the purposes of these regulations pastry is defined as follows; Articles consisting wholly or in part of baked mixtures of flour, meal, or similar products, with water, leavening agents, sweetening, shortening, and with or without eggs and milk, such as tarts, cream rolls, and slices, apple and other fruit slices, apple dumplings, patties, puff paste, and similar products. Rule 1. Thirty-three and one-third per cent, of wheat-flour substitutes m.ust be used. — No licensee shall manufacture any products of class 4d without using in the manufacture thereof at least 1 pound of wheiit-flour substitutes for each 2 pounds of wheat flour so used. [XIII— I— 1 (a). Aug. 27, 1918. Substitute this for XIII— I— 1.] I. SPECIAL EEGULATIONS APPLYING TO CLASS 4D, PASTEY. Definition. — For the purposes of these regulations pastry is defined as fol- lows: Articles consisting wholly or in part of baked mixtures of flour, meal, or similar products, with water, leavening agents, sweetening, shortening, and COLD-STOEAGE LEGISLATION. 719 with or without eggs and milk, such as tarts, cream rolls and slices aoDle and other finiit slices apple dumplings, patties, puff paste, and simlla? products Kule 1 IS hereby amended, effective September 1 1918- proaucts. RVLE 1 Ticenty per cent of wheat flour substitutes must be used— No li- censee shall manufacture any products of class 4d without using fn the manu- T'Z.^iZ-sTu^a' ' '°""' "' "'^"^* flour substitutes for Wd pounds [XIII— J— 1, 2.] J. SPECIAL EEGUI.ATIONS APPLYING TO CLASS 5, QUICK BREADS, BOSTON BEOWIf BREAD, BATTER CAKES, AND WAFFLES. J^BOWW Denmtkm—Fov the purposes of these regulations quick breads Boston brown bread batter cakes, and wafBes, are defined as follows: Baked or fried nnxtures of flour, meal, or similar products, with water and with or without leavenmg agents, sweetening, shortening, eggs, and milk, such as quick breads Boston brown bread, corn bread, muffins, baking-powder biscuits, batter clkel' butter cakes, griddle cakes, waffles, and similar products 7, ■'!7o^ '^■JifV-six ana two-thirds per cent of wheat-flour substitutes must be we(Z.-^No licensee shall manufacture any products of class 5 without Sg ipph ? nT^'f ""f "'.f *?f ^°^ ^* ^^^'* 2 P^'^^'^^ °f wheat-flour substitutes fof each 1 pound of wheat flour so used. Rule 2. Shortening— Vse of animal fats prohibited.~The licensee shall use no shortening except vegetable shortening in products of class 5. [XIII— J— 1, 2 (a). July 30, 1918. Substitute this for XIII— J— 1, 2.] J. SPECIAL REGULATIONS APPLYING TO CLASS 5, QUICK BREADS, BOSTON BROWN BREAD, BATTER CAKES, AND WAFFLES. Definition.— For the purposes of these regulations quick breads, Boston brown bread, batter cakes, and waffles, are defined as follows : Baked or fried mixtures of flour, meal, or similar products, with water and with or without leavening agents, sweetening, shortening, eggs, and milk, such as quick breads, Boston brown bread,, corn bread, muffins, baking-powder biscuits, batter cakes, butter cakes, griddle- cakes, waffles, and similar products. Rule 1. Sixty-six and two-thirds per cent of wheat-flour substitutes must be used. — No licensee shall manufacture any products of class 5 without using in the manufacture thereof at least 2 pounds of wheat-flour substitutes for each 1 pound of wheat flour so used. Rule 2. Shortening — Use of animal fats prohibited. — (Repealed Julv 18 1918.) [XIII— J— 1, 2 (b). Aug. 27, 1918. Substitute this for XIII— J— 1, 2 (a).] J. SPECIAL REGULATIONS APPLYING TO CLASS 6, QUICK BREADS, BOSTON BROWN BREAD, BATTER CAKES, AND WAFFLES. Definition. — For the purposes of these regulations quick breads, Boston brown bread, batter cakes, and waffles, are defined as follows : Baked or fried mixtures of flour, meal, or similar products, with water and with or without leavening agents, sweetening, shortening, eggs, and milk, such as quick breads, Boston brown bread, corn bread, muffins, baking-powder biscuits, batter cakes, butter cakes, griddle cakes, waffles, and similar products. Rule 1. (as amended Aug. 27, 1918, effective Sept. 1, 1918). Fifty per cent of wheat flour substitutes must be used. — No licensee shall manufacture any products of class 5. without using in the manufacture thereof at least 1 pound of wheat flour substitutes for each 1 pound of wheat flour so used. Rule 2. Shortening — Use of animal fats prohibited. — (Repealed July 18, 1918.) [Xm— J— 1, 2 (c). Sept. 14, 1918. Substitute this for XIII— J— 1, 2 (b).] J. SPECIAL REGULATIONS APPLYING TO CLASS 5, QUICK BREADS, BOSTON BROWN BREAD, BATTER CAKES, AND WAFFLES. Definition. — For the purposes of these regulations quick breads, Boston brown bread, batter cakes, and waffles are defined as follows : Baked or fried 720 COLD-STORAGE LEGISLATION. mixtures of flour, meal, or similar products, with water and with or without leavening agents, sweetening, shortening, eggs, and milk, such as quick breads, Boston brown bread, corn bre d, muffins, baking-powder biscuits, batter cakes, butter cakes, griddle cakes, waffles, and similar products. Exile 1 (as amended Sept. 1, 1918, effective immediatel.v). FifUj per cent of wheat-flour substitutes must be used. — No licensee shall manufacture any products of class 5 without using in the mfinufacture thereof at least 1 pounci of wheat-flour substitutes for each 1 pound of wheat flour so used : Provided, That in griddle cakes and waffles 1 pound of wheat-flour substitutes for each 2 pounds of wheat flour may be used. EuLE 2. Shortening — Use of animal fats prohibited. — (Eepealed July 18, 1918.) [XIII— K.] K. PEOCLAMATIONS REQUIRING BAKERS TO BE LICENSED. Extract from the proclamation of the President of the United States, dated November 7, X917. — "All persons, firms, corporations, and associations who manufacture for sale bread in any form, cake, crackers, biscuits, pastry, or other bakery products (excepting, however, those whose consumption of any flour and meal In the manufacture of such products Is, in the aggregate, less than 10 barrels a month) are hereby required to procure a license on or before December 10, 1917. This includes hotels, restaurants, other public eating places, and clubs who serve bread or other bakery products of their own baking." Extract from the proclamation of the President of the United States, dated January 30, 1918. — "All persons, firms, corporations, and associations who manufacture for sale bread in any form, cake, crackers, biscuits, pastry, or other bakery products (excepting, however, those already licensed and whose consumption of any flour and meal in the manufacture of such products is, In the aggregate, less than 3 barrels a month) are hereby required to procure a license on or before February 4, 1918. This includes hotels, restaurants, other public eating places, and clubs which serve bread or other bakery products of their own baking." NoTEi — Under the proclamation of November 7, 1917, all bakers using 10 or more barrels of flours, meals, and substitutes a month are required to obtain a license. Under the proclamation of January 30, 1918, all bakers using 3 barrels or more of flours, meals, and substitutes a month are required to obtain a license, unless they already have a license. The within regulations govern all licensees manufacturing bakery products. These Include bakers, hotels, restaurants, dining cars, boarding houses, and other public eating places, and clubs, which serve bread or other bakery products of their own baking. [XIII— K— Continued.] Oovemment institutions. — ^No Institution conducted by the United States Government or by a State or any political subdivision thereof is required to obtain a baking license if It does not sell any of Its bakery products for con- sumption outside the institution. Hospitals. — No hospital or sanatorium or similar institution, whether public or private, or charitable or noncharitable, is required to obtain a license if it does not sell any of its bakery products for consumption outside the insti- tution. Charitable institutions. — No charitable institution, whether public or private, is required to obtain a license if it does not sell any of its bakery products for consumption outside the institution. ' Note. — A branch of the Young Men's Christian Association is not a charitable institution within the meaning of the term as here used. Schools. — A university, college, or school that is not conducted by the United States or by a State or political subdivision thereof, and which is not a chari- table institution, is required to obtain a baking license if it operates a bakery that consumes 3 or more barrels of flours, meals, and substitutes a month. Boarding camps — Employees' eating places. — Persons or companies sup-^ plying meals to employees, whether for cash or as part compensation for labor ■ or services — for example, lumber, mining, or contracting companies — are sub- ject to license if 3 or more barrels of flours, meals, and substitutes are used a month in baking for emi)loyees by such person or company. In calculating COLD-STOEAGB LEGISLATION. 721 the quantity of flours, meals, and substltutpf„i baking in all camps operated by one ^^0^^"™^ =^ ^^"^ ' ""^^^ '° One license to such person or companv will cover «ii/ ""'"^ ^^ included. The foregoing principles apply trancommercTnlonH camps operated by it. serving meals to emp.oyees'a's'wen as\o7or;ai^ s'oferSKL'lr'"""°"' Bakers usm-g less than 3 barrels ver mo«f7, Rai.lJ; ■ , S?" restaurants, and boarding houses, ^h^o 'utl leTtM^f SlsTf'Crl, t*a1s; [XIII — K — Continued.] trp=se^^helt\Tr1^- ^^^X^ ^ "^^^^^^ pound of substitutes for every 3 pounds of wheat flour If he does not subiect SVour'pTcha'sId""^* ^"'"'^"^^^ ' ^°'^'^<^ °^ -^^t""*- for rch^oTnd^^ol Ships— All ships under the American flag, other than those in the United States Navy, whichuse 3 or more barrels of flours, meals, and substitutes a month m baking are required to obtain a baking- Ucense. Companies oSinK more than one ship must obtain a separate license for each ship that uses 3 o? more barrels of flours meals, and- substitutes a month. Foreign ships of course can not be required to obtain a license, but if a foreign ship does obtain a license and agrees to observe the regulations governing baking licensees it it accorded the privilege of buying wheat flour and substitutes on a 3 to 1 basis for baking bread. vaoia [XIII — General information.] GENERAL INEOEMATION. Licensees whose methods of doing business or whose kinds and forms of products are not in conformity with the within regulations must adjust them- selves to conform to them. The United States Food Administration has not fixed any price at which bakery products must be sold. They must, however, be sold at not more than a reasonable profit. The United States Food Administration disapproves of all kinds of rebates or discounts to favored customers. [XIII — Recommendations.] KECOMMENDATIONS TO BAKEKS BY THE UNITED STATES FOOD ADMINISTEATOE. The United States Food Administrator, in view of the necessity for conserving wheat flour for shipment to the Allies and our soldiers abroad, earnestly urges all bakers to reduce their allotted consumption of wheat flour and to use more wheat-flour substitutes than is required by these regulations, and, because of the unusual demands on or supplies of cane and beet sugars and all fats, to reduce their consumption of these sugars and shortening below the amounts permitted by the baking regulations. The United States Food Administrator earnestly urges all wholesale bread bakers to establish as the wholesale prices of their products the prices at which they will offer such products for sale in lots of 25 pounds or more, unwrapped, for cash, at- the bakery door, the prices so established to be subject to such addi- tional charges as may be fair for wrapping and delivering when such services are performed by the baker. The United States Food Administrator requests that, when such wholesale prices are established, the licensee report this fact and state such prices to the Federal food administrator in the State where his bakery is located. Inasmuch as some wholesale bakers in certain communities are now retailing bread at their plants direct to the consumer, unwrapped, undelivered, and for cash, at wholesale prices, the United States Food Administrator recommends that this practice be extended wherever bakers find it possible to do so, add- ing only sufficient extra charge to cover the extra expense. Believing that frequent deliveries are uneconomical and tend to enhance prices, bakers are urged to reduce deliveries wherever possible to one a day over each route, and to consolidate deliveries or zone their territories in order to reduce the expense of deliveries as far as possible. 722 COLD-STORAGE LEGISLATION. Exhibit T. [XIV— A— 1] SPECIAL LICENSE REGULATIONS No. XIV. A. Special Regulations Governing Dealers in Glucose, Eefinee's Sieups, Maple Sibup, Soeghum, Cane Juice Sieup, Centrifugal Molasses, Open- kettle Molasses, West India Molasses, and Blackstrap Molasses, and Manufactueees and Mixees of Mixed Sieups and Mixed Molasses. Efeective November 7, 1918. Note. — The following regulations do not apply to established wholesale grocers handling sirups or molasses through customary trade channels for the houpehold and bakery trade. Such wholesale grocers are governed by regula- tions No. XI and the margins and resale provisions there prescribed. These regulations do apply to all other dealers In pure sirups or molasses, whether sold in original pacljages or repackec} ; and to all licensees who mix, blend, or process in any way sirups consisting in whole or in part of sirups, glucose, or molasses of any kind. Rule 1. Reasonable profits pre«cn6ed.-r-The licensee without regard to market or replacement value at the time of such sale shall sell glucose, re- finer's sirups, maple sirup, sorghum, cane juice sirup, centrifugal molasses, open-kettle molasses. West India molasses, blackstrap molasses, and all mixed sirups and mixed molasses at not more than a reasonable advance over the average purchase price of all lots of the t ame grade and size, of the same commodity or the ingredients thereof, in his possession or invoiced to him not contracted to be sold. The licensee shall keep a record of the manner in which such average has been arrived at and he shall take as the cost of all stock remaining on hand from lots already averaged the average cost previously arrived at. In selling commodities not yet invoiced to him he shall sell at not more than a reasonable advance over the actual purchase price to him of all lots of the i=ame grade and size of the same commodity, or the ingredients thereof, purchased by him but not yet invoiced to him. Note. Margins for dealers in pure refiners' sirups or glucose. — Under the above rule the Pood Administration will consider any gross margins above delivei-ed cost in exces^s of those listed below taken by dealers in pure re- finers' sirups or glucose, as prima facie evidence of a violation of the statute and this regulation. A violation of these margins will therefore be considered cause for the revocation of a dealer's license — (o) Where glucose or refiner:=' sirup is sold by a dealer in car lots (includ- ing mixed cars) not to exceed 5 per cent. (b) Where glucose or refiners' sirup is sold by a dealer in less than car lots to bakers, mixers, or manufacturers, not to exceed 12-15 per cent. (c) Where glucose or refiners' pirup is sold to a wholesale grocer under the provisions of Rule 2 following in less than car lots — not to exceed 7i per cent. (d) Where the dealer breaks original packages he may add to his cost the cost of the new package, plus actual cost of such packing in no caPe to ex- ceed 5 per cent. The margins named are large enough to include all ordinary carrying charges. If general conditions should later necessitate the carrying of goods for a longer period than usual further consideration will be given to this feature. The above margins do not juf-tify the taking of a profit greater than was taken by the licensee in prewar times. A large part of the commodities covered by this rule are dealt with in large quantities and it is quite possible that dealers who can handle them in such quantities will receive an unreason- able profit if they take the full maximum margin. In such cases they should continue to sell at somewhat lower margins. Dealers in refiners' sirups and glucose are also subject to the 6 per cent profit limitation following. Profits for dealers and mixers of sirup, glucose, and molasses. — The Food Administration will consider a net earning of more than six per cent upou the gross sales of pure and mixed sirups, glucose, and molasse'^ by any dealer in sirups as above defined, or by any sirup mixer or blender, to be prima facie evidence of a violation of the rule which prohibits the taking of unreasonable profits (General Rule 1 — A — 5). This percentage will be calculated for the COLD-STOKAGB LEGISLATION. 723 semi-annual periods malting up the licensee's fiscal year. The Federal income and excess profits taxes may not be deducted, but all other taxes may be con- sidered as expenses. The limitation does not modify or abrogate the general principles contained in the Food Administration regulations that a licensee should not earn more than a reasonable net profit on its capital invested. Blackstrap molasses and refiners' sirups prices. — The following maximum prices have been named for refiners' sirups and blackstrap molasses sold by the refiner or dealer in tank cars and based on the cost of imported raw sugar and domestic beet manufacture : Per gallon, in bulk. Refiners' sirups, Mghest grade (fancy filtered). Refiners' sirups, medium grade (filtered) Refiners' sirups, low grade (unfiltered) Blackstrap molasses The maximum prices named also apply to imported blackstrap. These prices are f. o. b. cars at seaboard point or point of production, net ca.^h in 10 days without discount. They include brokerage and if sirups or molasses are distributed in tank cars they include the margin allowed to dealers, so that no dealer may sell blackstrap molas-es in tank cars at more than 18 cents ' plus freight and tank car charges. Where blackstrap molasses or sirups are distributed in barrels the dealer's margins named may be added to the maxi- mum price. Where sirups are distributed in packages smaller than barrels, the packer may add to the bulk price the actual cost of such packages. [XIV— A— 2, 3.] Rule 2. Resale of glucose and refiners' sirups limited. — The licensee shall not resell pure glucose or pure refiners' sirups except (1) to a manufacturer, baker, or mixer using such article in his manufacture; (2) a retail grocer or consumer; (3) to wholesale grocers under one of the following circum- St8.IlCGS ' A. Continuous service. — The seller may customarily and continuously serve in less than carload lots wholesale grocers who are serving retail grocers but who are unable for some sufiicient and legitimate reason to purchase direct from the source of supply. B. Carload buying.— A sirup dealer may enjoy the benefit of carload rates from distant points and sell to smaller wholesale grocers who are unable to buy the commodity in carload lots. 0. Warehousing.— A sirup dealer may continuously and customarily furnish cold storage or other warehousing service and sell to wholesale grocers who have not adequate facilities of that character. , , ^ D. Surplus stocks.— A sirup dealer may dispose of surplus stocks bought, not for speculation, but in good faith for the reasonably anticipated requirements of his business under the rules and regulations and which he finds himself unable to dispose of to his regular customers. The fact that such goods have not been warehoused by such dealer will be regarded as prima facie evidence that they were not bought in good faith. . ^ j i ^„„„j- No person who purchases glucose or refiners' sirups from a dealer except a wholesale or retail grocer buying under subdivisions (2) or (3) above shall resell such glucose or sirup without the written permission of the United States Food Administration. v,-jj™ v.„ ,.„c,qii NoTB.-Wholesale grocers purchasing from a dealer are forbidden to lesell except to retailers, manufacturers, or consumers under the wholesale grocers regulations (No. XI) and are limited to a margin of 12 per cent. Permission to resell will be given in proper cases upon «i%c°miition that no person from whatever source he buys sha 1 se 1 glucose or refiners sirups in bulk at an advance over the manufacturer's price of the particular lot sold greater than that permitted to a single dealer, plus actual freight. 724 COLD-STORAGE LEGISLATION. Sirup mixers may sell their mixed sirups and molasses to any wholesale grocer. Rule 3. Minimum weights of carload, shipments. — All carload shipments of glucose, refiners' sirups, and molasses In barrels shall be made in car lots packed to floor space capacity, barrels on end. [XIV— A— 4, 5, 6.] RtrtB 4. Must have only 60 days' supply of glucose and refiners' sirups. — The licensee shall not, without the written consent of the United States Food Administrator, keep on hand or have In possession or under control by con- tract or other arrangement at any time any glucose or refiners' sirups not sold or contracted to be sold in a quantity in excess of the reasonable require- ments of his business for sale by him during a period of 60 days: Provided, That this rule shall not prevent any licensee from having a carload of any such commodity In transit in addition to a supply thereof sufficient to last until the arrival of such carload. Note. — A similar rule applies to sirups and molasses in tins but not in bulk, barrels, half barrels, or kegs. Rule 5. Must not sell or deliver more than 60 days' supply of certain sirups^ — The licensee shall not sell or deliver to any person any glucose, or refiners' sirups, or any pure or mixed sirup or molasses in tins, without the consent of the United States Food Administrator if the licensee knows or has reason to believe that such a sale or delivery will give to such person a supply of such sirups not sold or contracted to be sold in excess of his reasonable require- ments for use or sale by him during the period of 60 days next succeeding such sale or delivery. Rule 6. Contracts for certain sirups for delivery more than 60 days ahead prohibited. — The licensee shall not make any contract for the sale of glucose or refiners' sirups, or any pure or mixed sirup or molasses in tins, for shipment or delivery more than 60 days after the making of such contract : Provided, however. That this rule shall not apply to contract with the Federal, State, county, or municipal governments or to the Government of any nation at war with Germany. [XIV— A— 2, 3 (a). Dec. 6, 1916. Substitute this for XIV— A— 2, 3.] Rule 2. Resale of glucose and refiners' sirups limited. — The licensee shall not resell pure glucose or pure refiners' sirups except (1) to a manufacturer, baker, or mixer using such article In his manfacture, (2) to a retail grocer or con- sume, (3) to wholesale grocers under one of the following circumstances: A. Gontirvuous service. — The seller may customarily and continuously serve in less than carload lots wholesale grocers who are serving retail grocers but who are unable for some sufficient and legitimate reason to purchase direct from the source of supply. B. Carload buying. — A sirup dealer may enjoy the benefit of carload rates from distant points and sell to smaller wholesale grocers who are unable to buy the commodity in carload lots. C. Warehousing. — A sirup dealer may continuously and customarily furnish cold storage or other warehousing service and sell to wholesale grocers who have not adequate facilities of that character. D. Surplus stocks. — A sirup dealer may dispose of surplus stocks bought, not for speculation, but In good faith for the reasonably anticipated requirements of his business under the rules and regulations and which he finds himself unable to dispose of to his regular customers. The fact that such goods have not been warehoused by such dealer will be regarded as prima facie evidence that they were not bought in good faith. No person who purchases glucose or refiners' sirups from a dealer, except a wholesale or retail grocer buying under subdivisions (2) or (3) above, shall resell such glucose or sirup without the written permission of the United States Food Administration. Note. — Wholesale grocers purchasing from a dealer are forbidden to resell except to retailers, manufacturers, or consumers under the wholesale grocers' regulations (No. XI) and are limited to a margin of 12 per cent. Permission to resell will be given In proper cases upon the condition that no person from whatever source he buys shall sell glucose, or refiners' sirups (JOLD-STORAGE l.EGISLATION. 725 in bulk at an advance over the manufacturer's price of the particular lot sold greater than that permitted to a single dealer, plus actual freight. Sirup mixers may sell their mixed sirups and molasses to any wholesale grocer. Rule 3. Minimum weights of carload shiments. (Repealed Dec. 5, said repeal to become efEective Dec. 10, 1918.) [XIV— A— 4, 5, 6.] Rule 4. Must have only 60 days' supply of glucose and refiners' sirups.— The licensee shall not, without the written consent of the United States Food Ad- ministrator, keep on hand or have in possession or under control by contract or other arrangement at any time any glucose or refiners' sirups not sold or con- tracted to be sold in a quantity in excess of the reasonable requirements of his business for sale by him during a period of 60 days : Provided, That thig rule shall not prevent any licensee from having a carload of any such commodity in transit in addition to a supply thereof sufficient to last until the arrival of such carload. Note. — ^A similar rule applies to sirups and molasses in tins, but not in bulk, barrels, half barrels, or kegs. HuLE 5. Must not sell or deliver more than 60 days' supply of certain sir- ups. — The licensee shall not sell or deliver to any person any glucose, or re- finers' sirups, or any pure or mixed sirup or molasses in tins, without the con- sent of the United States food administrator if the licensee knows or has rea- son to believe that such a sale or delivery will give to such person a supply of such sirups not sold or contracted to be sold in excess of his reasonable re- quirements for use or sale by him during the period of 60 days next succeed- ing such sale or delivery. Rule 6. Contracts for certain sirups for delivery more than 60 days ahead prohiMted.^-The licensee shall not make any contract for the sale of glucose or refiners' sirups, or any pure or mixed sirup or molasses in tins, for shipment or delivery more than 60 days after the making of such contract: Provided, however. That this rule shall not apply to contract with the Federal, State, county, or municipal Governments or to the Government of any nation at war with Germany. [XIV— A— 2, 3. 4, 5, 6, 7, 8, 9, 10, 11, 12, 13. Dpc. 13, 1918. Substitute this for the following: XIV— A— 2, 3 XIV— A— 4, 5, 6, XIV— A— 7, 8, 9, XIV— A— 10, XIV— A— 11, 12, 13 (a).] Rule 2. Resale of glucose and refiners' simps limited. — (Repealed Dec. 12, said repeal to become effective Dec. 17, 191S.) Rule 3. Minimum weights of carload shipments. — (Repealed Dec. 5, said repeal to become effective Dec. 10, 1918.) Rule 4. Must have only 60 days' supply of glucose and refiners' sirups.— Ihe . licensee shall not, without the written consent of the United States Food Admin- istrator, keep on hand or have in possession or under control by conract or other arrangement at any time any glucose or refiners' sirups not sold or contracted to be sold in a quantity in excess of the reasonable requirements of his business for sale by him during a period of 60 days: Provided, That this rule shall not prevent any licensee from having a carload of any such commodity in transit in addition to a supply thereof suflJicient to last until the arrival of such car- NoTE.— A similar rule applies to sirups and molasses in tins but not In bulk, 'S tflusTnTseno^Ziver more than 60 days' supply of certain s^Pf- -The licensee shall not sell or deliver to any Person any glucose or leflners sirups, or any pure or mixed sirup or molasses in tins without the consent oi the United States Food Administrator f the licensee knows o'" Ms reason to believe that such a sale or delivery wi 1 give to ^^^^ Pe^X^^.fJ'Pe 'uiremen^^^ sirups not sold or contracted to be sold in excess of his reasonable require^^^^ for use or sale by him during the period of 60 days next succeeding sucn saie "'nvTtcontracts for certain sirups for delivery n^^^^^^^ ZeT.t^^^^^^ Z:!^'^.^'^^Tn.r.^Tr^l%S^t^'^^^^. w^h tL Federal, State, 726 COLD-STORAGE LEGISLATION. county, or municipal government or to the governments of any nation at war witli Germany. Rule 7. Sirups and molasses must arrive in good condition, — (Repealed Dec. 12, said repeal to become effective Dec. 17, 1918.) Rule 8. Sucrose requirements for molasses. — (Repealed Dec. 12, said repeal to become effective Dec. 17, 1918.) Rule 9. Specifications for refiners' sirups. — (Repealed Dec. 12, said repeal to become effective Dec. 17, 1918.) Rule 10. Specifioations for m/ixed sirups. — (Repealed Dec. 12, said" repeal to become effective Dec. 17, 1918.) Rule 11. Priorities in delivery of refiner.i' sirups and glucose. — Repealed Dec. 12, said repeal to become effective Dee. 17, 1918.) Rule 12. No xale of sirups evcept for purposes pledged. — (Repealed Dec. 12, said repeal to become effective Dec. 17, 1918.) Rule 13. Uniform packages prescribed. — (Repealed Dec. 3, 1918.) rxiV— A— 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13 (a). Dec. 17, 1918. Substitute this for XIV— A— 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13.] Rule 2. Resale of glucose and refiners' sirups limited. — (Repealed Dec. 12, said repeal to become effective Dec. 17, 1918.) Rule 3. Minimum weights of carload shipments. — (Repealed Dec. 5, said repeal to become effective Dec. 10, 1918. ) Rule 4. iltist have only 60 days' supply of glucose and refiners' sirups. — (Re- pealed Dec. 17, said repeal effective Dec. 23, 1918.) Rule 5. Must not sell or deliver more than 60 days' supply of certain sir- ups. — (Repealed Dec. 17, said repeal effective Dec. 23, 1918.) ^i Rule 6. Contracts for certain sirups for delivery more than 60 days ahead prohibited. — (Repealed Dec. 17, said repeal effective Dec. 28, 1918.)' Rule 7. Sirups and molasses must arrive in good condition. — (Repealed Dec. 12, said repeal to become effective Dec. 17, 1918.) Rule 8. Surcrose requirements for molasses. — (Repealed Dec. 12, said repeal to become effective Dec. 17, 1918.) Rule 9. Specification for refiners' sirups. — (Repealed Dec. 12, said repeal to become effective Dec. 17, 1918.) Rule 10. Specifications for mixed sirups. — (Repealed Dec. 12, said repeal to become effective Dec. 17, 1918.) Rule 11. Priorities in delivery of refiners' sirups and glucose. — (Repealed Dec. 12 said repeal to become effective Dec. 17 1918.) Rule 12. No sale of sirups except for purposes pledged. — (Repealed Dec. 12, said repeal to become effective Dec. 17, 1918.) Rule 13. Uniform packages prescribed. — (Repealed Dec. 3, 1918.) [XIV— A— 7, 8, 9.] Rule 7. Sirups and molasses must arrive in good condition. — The licensee shall ship all sirups and molasses in such condition that, except for circum- stances beyond the control of the shipper they shall arrive at destination point in the United States sound and sweet and in merchantable condition, unless there Is an express agreement in writing to the contrary. Sirups and molasses shall not be considered to comply with this rule if the Baumg test shows less than the following: Pure glucose 41 Cane juice sirup 38 Maple sirup, pure or mixed with cane or beet sugar 35 All other sirups or molasses for human consumption.! 40 Blackstrap molasses 42 All mixed sirups sold in containers shall be thoroughly sterilized either in the process of manufacture or after packing. The standard for Baumg test where specified shall be the official Baumg scale of the United States Bureau of Standards, modulus 145, calculated to a tem- perature of 20° centrigrade (Circular of the Bureau of Standards, No. 44.) Rule 8. Sucrose requirements for molasses. — The licensee shall not sell or deliver to any person first centrifugal molasses testing less than 38 per cent sucrose, second centrifugal testing less than 30 per cent sucrose, or third cen- trifugal molasses testing less than 25 per cent sucrose, nor any centrifugal COLD-STOEAGE LEGISLATION. 727 molasses intended for human consumption containing more than 8 per cent ash The licensee shall not sell or use in any mixture molasses testing less than 30 per cent sucrose for human consumption unless branded as "blackstrap," or use such molasses in any mixture unless branded " mixture of blackstrap and — ." Sucrose tests shall be determined by the Clarget method Rule 9. Speciflcntions for refiners' sirups. — The licensee shall not sell or deliver any refiners' sirups for human consumption unless they contain at least 55 per cent total sugars and not to exceed 8 per cent ash. [XIV— A— 10.] Rule 10. Specifications for mixed sirups. — On and after November 20, 1918, the licensee shall not quote, sell, or label mixed sirups or molasses either for domestic or export trade unless such sirups or molasses are manufactured In accordance with one of the following specifications. The Baumg scale shall show 40° on all mixtures unless otherwise specified. The various ingredients used shall conform to the Baumfi test prescribed by rule 7 for such ingredients when sold separately. SPECIFICATIONS FOE SIKUPS AND MOLASSES. No. 77 mixture: Shall be made from corn sirup mixed with not less than 10 per cent nor more than 15 per cent of refiners' sirups. No. 78 mixture: Shall be made from corn sirup mixed with not less than 15 per cent nor more that 25 per cent A or B grade refiners' sirup. No. 79 mixture: Shall be made from corn sirup mixed with not less than 2.5 per cent nor more than 50 per cent of A or B grade refiners' sirups. N(3. 80 mixture : Shall be made from corn sirup mixed with not less than 10 per cent nor more than 20 iier cent of cane sugar beet sugar, corn sugar, maple sugar, first centrifugal molasses, second centrifugal molasses, cane-juice sirup, maple sirup, sorghum or honey, either separately or in combination. Baume not less than 40° except for mixtures of corn sirup with maple sugar or maple sirup when Baumg test not less than 37°. No. 81 mixture : Shall be made from second centrifugal molasses mixed with not less than 25 per cent or more than 50 per cent of corn sirup. Xi>. 82 mixture; Shall be made from first centrifugal molasses, second cen- trifugal molasses, openkettle molasses, can juice sirup or sorghum, separately or In combination, mixed with not less thnn 25 per cent nor more than 50 per cent of corn sirup. The combined cane products in any mixture to test not less than 40 per cent sucrose. No. 83 mixture : Shall be made from corn sirup mixed with not less than 30 per cent nor more than 60 per cent of West India or Muscovado molasses containing not less than 40 per cent sucrose. No 84 mixture: Shall be made from first centrifugal molasses mixed with second centrifugal molasses openkettle molasses or cane-juice sirup, either separately or in combination, and may contain not to exceed 50 per cent of A or B grade refiners' sirup, the finished blend or mixture to test not less than 38 per cent sucrose. No. 85 mixture: Shall be made from cane or beet sugar either separately or in combination, mixed with not less than 25 per cent of maple sirup or maple sugar. The sucrose test of the maple sirup used in mixing shall be equal to that of the beet or cane-sugar sirup used. No. 86 mixture: Shall be the same as No. 85 mixture, but the cane or beet sugar may be replaced by corn sirup to the extent of not more than 50 per cent of the finished mixture. Each item of each invoice sold by a licensee shall include a notation of the number of the mixture shown in the above specifications. Where percentages of mixtures aj-e specified the percentages shall be by weight and calculated on the basis of equal Baumg test for the different in- gredients of any mixture. Percentages indicated are percentages of the fin^hed product. The standard for Baum6 test where specified shall be the official Baume scale of the United States Bureau of Standards, modulus 145, calcu- lated to a temperature of 20° centigrade (Circular of the Bureau of Stand- ards No. 44.) Sucrose tests shall be determined by the Clarget method. Fla- voring extracts may be used in addition to the ingredients mentioned in the . above specifications when used in conformity to Federal or State pure-food laws. 728 COLD-STOEAGE LEGISLATION. [XIV— A— 11, 12, 13.] Rule 11. Priorities in delivery of refiners' sirups and glucose. — The licensee shall not, without the written consent of the United States Food Administrator, make any deliveries of glucose or refiners' sirups after November 10, 1918, to any person until he shall have delivered glucose or refiners' sirups to customers of every class designated by a lower number. This rule shall apply to all de- liveries regardless of the date of the contract therefor, and whether heretofore or hereafter made. Class 1. — ^United States Government, the American Red Cross, the Young Men's Christian Association, the Salvation Army, and the Knights of Columbus. Class 2. — Sirup mixers for use in filling contracts with parties in Class 1. Class 3. — Sirup mixers and wholesale and retail grocers for distribution to household trade or public eating places or for medicinal purposes. Provided that a certificate is furnished by the purchaser with his order in the following form : I, , for the purpose of securing for this order a rating in class 3 under the sirup regulations of the United States Food Administration, do hereby certify that the sirups or glucose covered by this order will be resold (used for mixing sirups), for the household trade and public eating places (the preparation of medicine), and for no otlier purpose. Class 4- — Commercial bakers, provided that a certificate is furnished by the purchaser with his order in the following form : I, , for the purpose of securing for this order a rating in class 4 under the sirup regulations of the United States Food Administration,, do hereby certify that the sirups or glucose covered by this order will be resold alterna- tively (used for mixing sirups for commercial baking), and for no other purposes. Class 5. — ^All others. Rule 12. No sale of sirups except for purposes pledged. — The licensee who obtains sirups or glucose by representing that it is required for purposes re- ferred to in class 1, class 2, class 3, or class 4, described in rule 11, shall not resell such sirups or glucose, or any mixed sirups of which it is an ingredient, except for the purpose for which the sirups were obtained. Rule 13. Uniform packages prescribed. — The licensee shall not sell any type of sirup or molasses except in packages known as size 2J, 5, and 10, or con- taining 5 gallons, in wooden packages, or tank cars. All containers shall be filled to capacity : Provided, That nothing in this rule shall prevent the use prior to February 1, 1919, of stocks of containers on hand, in transit, or in process of manufacture on October 1, 1918. AEMT SPECIFICATIONS. The following specifications apply to sirups or molasses when so designated by the United States Army. They are given only for information and the Food Administration does not assume any responsibility for errors or changes therein. Pure cane sirup. — To be made from pure cane juice sirup (cane juice). Baumg not less than 38° moisture 29.1 per cent). To be packed in No. 10 hermetically sealed cans, net weight of contents not less than 9 pounds, 8 ounces, 6 cans to the case. Mitced cane juice sirup and refiners' sirup. — To be a mixture composed of not less than 50 per cent cane sirup (cane juice), the balance refiners' sirup. Shall test not less than 40° Baum§ (moisture 25.1 per cent). To be packed in No. 10 hermetically sealed cans, net weight of contents not less than 9 pounds, 8 ounces, 6 cans to the case. Refiners' sirup. — To be composed of filtered refiners' sirup. Shall test not less than 40° Baumg (moisture 25.1 per cent), ash not more than 6 per cent To be packed In No. 10 hermetically sealed cans, net weight of contents not less than 9 pounds, 8 ounces, 6 cans to the case. Army mixture No. 1 — Refiners' sirup and open-kettle molasses. — To be com- posed of a mixture of not less than 50 per cent filtered refiners' sirup, the balance open-kettle molasses, shall test not less than 40° Baum6 (moisture 25.1 per cent), ash not more than 8 per cent. To be packed In No. 10 her- metically sealed cans, net weight of contents not less than 9 pounds, 8 ounces each, 6 cans to the case. COLD-STOEAGE LEGISLATION. 729 Miirefi mapZe an(i sMj/ar simp. — To be romnnsori nf ,n,^+ i„„ ^.t. Army baking mixture — Molasses and reUnpro' q5V«« t-^ v,„ „ ^ ^ Stall test not las th.n «' B,um6 (moisture 2?! jS cS) a™ not more than 3 per cent. To be packed in No. 10 hermetlcU, sellcd cans net Sight ol ran tents 9 ponnds 8 ounces each. 6 cans to the case weignt oi con- Ar'mTS1o=c'^r"=eiTas^rl^.e^cr'^''^'^"°"^ ^°^ ^'^^^^'^ '^-^ ^- nofovef "Iganrs^etch' '''^'^' ^" ^''^'^"' ^^"-""^ ^^^'^^^ ^^^'^^ «'™p barrels To be packed in half barrels not over 36 gallons each To be packed in kegs not over 16 gallons each Each barrel, half barrel, and keg to lack one-half gallon of being full Canned sirups to be guaranteed by the packer against swells, springers or spoilage of any character due to improper preparation or defective container for a period of not less than six months from the time of delivery. IXIV— A— 11, 12, 13 (a). Dec. 4, 1918. Substitute this for XIV— A— 11, 12, 13.] Em,E 11. Priorities in delivery of refiners' sirups and glucose.— The licensee shall not, without the written consent of the United States food administrator make any deliveries of glucose or refiners' sirups after November 10, 1918 to any person until he shall have delivered glucose or reliners' sirups to customers of every class designated by a lower number. This rule shall apply to all de- liveries regardless of the date of the contract therefor and \vhether heretofore or hereafter made. Class 1. — United States Government, the American Red Cross, the Young Men's Christian Association, the Salvation Army, and the Knights of Columbus. Class 2. — Sirup mixers for use in filling contracts with parties in class 1. Class 3.— Sirup mixers and wholesale and retail grocers for distribution to household trade or public eating places or for medicinal purposes, provided that a certificate is furnished by the purchaser with his order in the following form : I, , for the purpose of securing for this order a rating in class 3 under the sirup regulations of the United States Food Administration, do hereby certify that the sirups or glucose covered by this order will be resold, used for mixing sirups, for the household trade and public eating places, for the prepara- tion of medicine, and for no other purpose. Class i. — Commercial bakers, provided that a certificate is furnished by the purchaser with his order in the following form : I, , for the purpose of securing for this order a rating in class 4 under the sirup regulations of the United States Food Administration, do hereby certify that the sirups or glucose covered by this order will be resold alterna- tively, used for mixing sirups for commercial baking, and for no other purposes. Class 5.— All others. Rule 12. No sale of sirups except for purposes pledged. — The licensee who obtains sirups or glucose by representing that it is required for purposes re- ferred to in class 1, class 2, class 3, or class 4, described in rule 11, shall not resell such sirups or glucose, or any mixed sirups of which it is an ingredient, except for the purpose for which the sirups were obtained. Rule 13. Uniform packages prescribed. — (Repealed Dec. 3, 1918.) 730 COLD-STOBAGE LEGISLATION. Exhibit U. tXV— Title.] UNITED STATES FOOD ADMINISTRATION SPECIAL LICENSE REGULA- TIONS NO. XV— DISTRIBUTORS OP FRESH FRUITS AND VEGE- TABLES (INCLUDING OFFICIAL- INTERPRETATIONS). This pamphlet contains all special rules which affect licensees dealing in fresh fruits or vegetables. Licensees are also gove^'ned by all general rules which are printed in a separate pamphlet. Tliis compilation includes all rules issued up to July 10, 1918. [XV — Title (a) . Dee. 6, 1918. Substitute this for XV — Title and all other pages of No. XV.] UNITED STATES FOOD ADMINISTRATION SPECIAL LICENSE REGU- LATIONS NO. XV— DISTRIBUTORS OF FRESH FRUITS AND VEGETA- BLES (INCLUDING OFFICIAL INTERPRETATIONS). All regulations in this series were repealed on December 5, said repeals to become effective December 10, 1918. [XV— A— 1, 2.] A. SPECIAL REGULATIONS GOVEENING ALL DISTEIBUTOKS OF FKESH PBUITS AND VEGETABLES. Rltle 1. Minimum carload shipments. — All carload shipments of fresh fruits or vegetables shall be made in car lots of not less than the amount prescribed below unless a different minimum is authorized by special written permission of the United States Food Administrator : Provided, hoivever, That when cars of lower carrying capacity are used the maximum load which the car will carry consistent with the safety of the contents may be used without such permission. Oranges and lemons, straight or mixed carloads, in ventilator or refrigerator cars, from California and Arizona, seven boxes wide, two boxes high ; boxes on end full length of car. Exception.— heinous shipped in collapsible tank cars with bunliers open may be loaded six boxes wide instead of seven boxes wide. Oranges, lemons, limes, and grapefruit, straight or mixed carloads, in venti- lator or refrigerator cars, from Florida, 360 boxes. Watermelons, average weight 25 pounds or less, five tiers h^gh. Watermelons, average weight more than 25 pounds, four tiers high. All fresh fruits and vegetables not specifically provided for above, to be loaded as heavily as will permit transportation without damage to the commodity shipped. Note. — This rule was formerly included in general rule 9 of series B as amended January 28, 1918, and April 4, 1918. Rule 2. Hoarding prohihited. — The licensee shall not keep on hand or have In his possession or under control by contract or other arrangement a quantity of fresh fruits or vegetables in excess of the reasonable requirements of his business for use or sale by him for a reasonable time or in sufficient quantities to fill his reasonable requirements throughout the period of scant or no pro- duction. Note. — This rule takes the place of the rule issued as series B, general rule 13. [XV— A— 1, 2 (a). Oct. 23, 1918. Substitute this for XV— A— 1, 2.] A. SPECIAL REGULATIONS GOVEENING ALL DISTEIBUTOES OF FRESH FRUITS AND VEGETABLES. Rule 1 (as amended Oct. 19, 1918). Minimum carload shipments. — All car- load shipments of fresh fruits or vegetables shall be made in car lots of not le*" than the amount prescribed below unless a different minimum is authorized by special written permission of the United States Food Administrator: Pro- vided, however. That when cars of lower carrying capacity are used the maxi- mum load which the car will carry consistent vsdth the safety of the contents may be used without such permission. COLD-STOEAGE LEGISLATION. 731 Oranges and lemons, straight or mixed carloads, in ventilator or refrigerator renllSl^gt^f caf ""'-''''''' ^^^'^^ ^^^^ ^^''^' '^ ^oxeT S^^e^ beSfsrb^r^.fid?Sa^Vft^^^^^^^^^^ -"^^ ^-'^^ OP- -^ Oranges lemons, limes, and grapefruit, straight or mixed carloads in venti- lator or refrigerator cars from Florida, 360 boxes i-diiod.ui,, venn Watermelons, average weight 25 pounds or less, five tiers high Watermelons, average weight more than 25 pounds, four tiers high Apples in standard barrels, from October 15 to April 30, both inclusive must be loaded on bilge, three barrels across, end to end, four baLirhigrfA ends of car and three barrels high in door of car. From May 1 to October 14 both inclusive, must be loaded on bilge three barrels high ^ctobei 14, both All fresh fruits and vegetables not specifically provided for above to be modfty^hiSpId!^ '"' ' '"™'' transportation without damage to Ihe com Note.— This rule was formerly included in general rule 9 of series R acj amended January 28, 1918, and April 4, 1918 Rule 2. Boarding proMMted.—The licensee shall not Ijeep on hand or have in his possession or under control by contract or other arrangement a quantitv of fresh fruits or vegetables in excess of the reasonable requirements of his business for use or sale by him for a reasonable time or in sufficient quantities to fill his reasonable requirements throughout the period of scant or no nro- duction. " f " Note.— This rule takes the place of the rule issued as series B, general [XV— A— 3, 4, 5.] Rule 3. Cancellation of contract prohibited after goods are in transit. — The licensee shall not cancel any contract for fresh fruits or vegetables after the goods are loaded at point of origin and under billing without the consent of the other party to the contract. Nothing in this rule shall be construed to limit or change the right of any party in any action for damages because of any cancellation whether prior or subsequent to shipment. Note.— This rule, was issued as series B, special rule 7, effective January 28, 1918. • Rule 4. Shipper must not ship goods below contract requirements. — The licensee shall not linowingly ship fresh fruits or vegetables which are not equal to the grade, quality, and condition called for in the contract of sale. Notes. — This rule was issued as series B, special rule 8, effective January 28, 1918. The licensee, before shipping goods which do not conform to the contract of sale, must arrange in a manner satisfactory to the buyer for any such substi- tution. Rule 5. Unreasonable refusal to accept by consignee prohibited — Time for unloading. — The .licensee shall not without reasonable justification refuse to accept and unload promptly any fresh fruits or vegetables shipped to him. Delay in transit shall not of itself constitute reasonable justification for re- fusal to accept unless specific delivery date has been contracted for. Notes. — This rule, issued as series B, special rule 9, elfective January 28, 1918, is amended by the above rule. The Food Administration considers prompt unloading of the utmost impor- tance. Three days after the period allowed for inspection by rule 6 will be considered the maximum unloading time, Sundays, holidays, and extraordinary circumstances excepted. This maximum time shall not be construed to permit in any case a longer period for unloading than is reasonably necessary. The time talien by a carrier to place a car from a railroad hold or receiving yard to a team traclj or private unloading tracli, after the order to so place has been filed, will not be considered a part of the time allowed for unloading. The existence of minor or occasional defects in a shipment of fresh fruits or vegetables will not be sufficient to justify a refusal to accept If the shipment as a whole, can fairly be said to conform to contract as to grade, quality, or ■condition as usually understood in the trade. 137690—19 47 732 COLD-STOBAGE LEGISLATION. [XV— A— 6, 7, 8, 9.] Rule 6. Notification of condition of goods on arrival — Time for inspection. — The licensee to whom fresh fruits or vegetables are shipped shall notify the consignor promptly after arrival (by wire if possible) of the true condition of any goods which are claimed to be defective or not In accordance with the contract of sale, and in such notification shall inform him of any refusal to accept. Note. — This rule was Issued as series B, special rule 10, efEective January 28, 1918. Twenty-four hours from the time when the shipment shall be placed where inspection by consignee is practicable shall be considered a maximum reason- able time within which such notification shall be given, Sundays, holidays, and extraordinary circumstances excepted. Rule 7. Claims to be based on accurate data. — Claims for shrinkage or waste on any shipments of fresh fruits or vegetables shall be based wherever possible upon actual weight, count, or measure in accordance with the nature of the commodity. Note. — ^This rule was issued as series B, special Rule 11, efEective January 28, 1918. Where the evidence clearly establishes a dishonest claim for damages drastic action will be taken. Rule 8. Unreasonable refusal to adjust claims. — The licensee shall not un- reasonable refuse to adjust promptly claims for damages on shipments of fresh fruits or vegetables, where failure to make adjustment will result In a delay in unloading and a danger of waste. Note. — This rule was issued as series B, special rule 12, efCective January 28, 1918. This rule applies to an unreasonable refusal by either the seller or buyer, and refusals to adjust proper claims because of a change in market conditions are clearly prohibited by this rule. Rule 9. Terms to be included in every contract unless expressly agreed otheirvnse. — The licensee shall include in every contract for the sale of fresh fruits and vegetables to be shipped by a common carrier the following terms, and these terms shall be understood as included in every such contract be- tween licensees even though not expressly stated : Provided, however, That the said terms may be varied by express agreement in writing. [XV— A— 9, continued (1).] TEEMS OF contract. A. The seller shall be responsible for and reimburse the buyer for any failure of the goods to conform to the grade, quality, or condition specified in the contract of sale, except that all sales made f. o. b. point of origin shall be construed to mean that the buyer assumes all risks of damage in transit not caused by the shipper whether there is a bill of lading to the order of the seller or not. B. The shipment shall be deemed to have reached destination when placed on any railroad team track or private unloading track or where awaiting consignee's order for placing on such team or private unloading track. The burden of locating a shipment on such arrival shall be on the consignee, pro- vided that the consignor has billed the shipment with proper instructions as to the railroad notifying the consignee. The failure of , the railroad to notify the consignee will not be construed as releasing the consignee from his obligations to the consignor, provided proper advice as to the car number has been given to the consignee by the consignor. But if the consignee uses every reasonable efEort to locate a car and fails, he shall not be responsible for falling to learn of its arrival. Notes. — The rule issued as series B, special rule 13, efEective January 28, 1918, is amended by the above rule. This rule applies to the sale of cars in transit, provided the seller advises the buyer that the car is in transit, the date of shipment, and, if possible, where it Is located. COLD-STOBAGE LEGISLATION". 733 Note to rules 3 to o, inclusive. — The above rules have been prepared after conference with representatives of those engaged in the business of shipping and receiving perishable food commodities, and have been based on recom- mendations from them in order to meet a condition which has resulted in great waste of fre^h fruits and vegetables throughout the country. The rules are designed to prevent delay in unloading, the shipment of goods contrary to contract, and the resulting traffic congestion and food waste. It is essential that all licensees should cooperate in good faith with the Food Administration to avoid improper shipments, rejections, and disputes, and to arrange quickly for prompt release, handling, or unloading of the goods involved, and to submit any dispute promptly to arbitration. It is strongly recommended that contracts for the sale of fresh fruits and fresh vegetables be definite as to the quality and grade of goods and terms of sale and delivery, and be evidenced by a proper memorandum in writing. The Food Administration will consider the certificate of any food-products inspector of the Bureau of Markets of the United States De- partment of Agriculture as prima facie evidence of the condition of the goods. If no such inspector is available, great weight will be attached to inspection by expert officials of trade organizations. Where no official inspectors are avail- able due weight will be given to the judgment of such unofficial experts as may have made inspection or are designated or approved by the Food Ad- ministration. In all cases submitted to arbitration or settlement where the shipment is made, draft, bill of lading attached, the consigner should direct the bank holding his draft to retain the proceeds thereof and to distribute the same according to the result of the final determination. Thereupon the consignee should pay said draft and release the bill of lading. In the case of commodities where it is customary to assort or recondition, and where necesfary to preserve food values and prevent waste, fresh fruits and vegetables should be assorted or reconditional by the consignee upon the consignor's request to recondition and his agreement to arrange for the pay- ment of properly substantiated claims. In all cases submitted to arbitration or settlement where the shipment is made, draft, bill of lading attached, the consignor should direct the bank holding his draft to retain the proceeds thereof and to distribute the same according to the result of the final determination. Thereupon the consignee should pay said draft and release the bill of lading. In the case of commodities where it is customary to assort or recondition, and where necessary to preserve food values and prevent waste, fresh fruits and vegetables should be assorted or reconditioned by the consignee upon the consignor's request to recondition and his agreement to arrange for the payment of properly substantiated claims. Rule 10. Meaning of eaupressions regarding time of shipment. — The licensee in buying or selling fresh fruits and vegetables shall, wherever possible, name a specific date on which, or specific dates between . which, shipment shall be made, or in case the following expressions are used shall understand their meaning to be that set opposite them below : "To-day's shipment," means loaded and bill of lading signed same day order is received. "To-morrow's shipment," means loaded and bill of lading signed the day after the order is received. "Immediate shipment," means loaded and bill of lading signed within two days of date of order. "Quick shipment," means loaded and bill of lading signed within three days of date of order. "Prompt shipment," means loaded and bill of lading signed within four days of date of order. Whenever the time of shipment is to be indefinite, as, for example, where the contract provides for " shipment as soon as possible," or " shipment as soon as cars can be secured," the buyer shall not be justified in cancelling the contract or rejecting such shipment because of a delay in shipping. The shipper must exercise due diligence to obtain equipment and to make shipment. Rule 11. Shipment contrary to terms of contract forbidden.— The licensee shall not ship fresh fruits or vegetables contrary to the delivery terms of the contract without arranging in a manner satisfactory to the receiver for any change in terms of delivery. 734 COLD-STOEAGE LEGISLATION. Rule 12. Purchase of fresh fruits or vegetables already contracted to he sold prohibited. — The licensee shall not purchase fresh fruits or vegetables which are already under contract to be sold to others. [XV — B— 1, 2, 3.] B. ADDITIONAL SPECIAL EBGXJLATIONS tjOVEKNING COMMISSION MERCHANTS, BEOKEKS, AND AUCTIONEERS DEALING IN FRESH FRUITS OR FRESH VEGETABLES. Rule 1. Commission or brokerage not to be unreasonable or discriminatory.— The licensee shall not charge directly or indirectly an un.iust, unreasonable, discriminatory, or unfair commission or brokerage on the sale of fresh fruits or fresh vegetables. Note. — The Food Administration in enforcing this rule will insist that any proposed increase in rates be submitted to the local Federal food administrator and that the reason for any increased rate over the prewar normal be justified to him, subject to the general supervision of the United States Food Adminis- tration before such increased rate is put Into effect. This rule was formerly included in series B, general rule 5, governing all licenses as issued November 1, 1917. Rule 2. Prompt remittance and proper account of sales to be rendered. — The licensee shall remit promptly following the sale of fresh fruits or fresh vegetables received on consignment for sale or distribution, and shall render to the consignor an account showing the true sales and with charges only for services actually performed and expenses actually incurred by the licensee. Note. — This rule is in conformity with special rule 2 of series B, issued November 1, 1917. Rule 3. Agent not to buy from principal unless noted on account of sales. — The licensee shall not directly or indirectly sell consigned fresh fruits or vegetables or such commodities, with the sale of which on commission he is intrusted, to himself or to anyone connected with his business unless he notes the facts of such transaction on the account of sales. Note. — This rule is in conformity with special rule 4 of series B, issued November 1, 1917. When a licensee sells to himself or to anyone connected with his business he must at least show on the account sales the quantity thus sold and at what price they were taken over. [XV— B— 4, 5.] Rule 4. Brokers' statements to buyers as to terms of sale and quality of goods — memoranda to be furnished. — The . licensee engaged in business as a broker shall not make any statement to any buyer in reference to terms or conditions of sale of fresh fj-uits or vegetables, or to grade, quality, or condi- tion thereof or the time of shipment or delivery, without authority, and shall deliver to his principal and to the buyer proper memoranda of any contract of sale. Note. — This rule was issued as special rule 7 of series B, effective January 28, 1918. Rule 5. Misrepresentations by brokers prohibited. — ■The licensee engaged in business as a broker shall not knowingly misrepresent to his principal or to any other person the condition, quality, or grade of fresh fruits or vegetables on arrival ; nor shall he make any .such report on condition or grade without stating the basis or authority for such report, unless such report is based on his own inspection. Note. — This rule was issued as special rule 8 of series B, effective January 28, 1918. [XV— C— 1, 2.] C. ADDITIONAL SPECIAL REGULATIONS GOVERNING ALL DISTRIBUTORS OF POTATOES. Rule 1. Potatoes not to be shipped unless free from certain defects. — The licensee shall not ship or sell for food purposes from points of production, potatoes which are not practically free from frost injury and decay, and which COLD-STORAGE LEGISLATION. 735' are not free from serious clamiiKe caused by dirt or otlier foreign matter, sun- burn, second growth, cuts, scab, blight, dry rot, or other disease, insects, or mechanical means. " Practically free " means that the appearance shall not be injured to an extent readily apparent upon casual examination, and that any damage from the causes mentioned can be removed by the ordinary processes of paring with- out appreciable increase in waste over that which would occur if the potato were perfect. Loss of outer skin (epidermis) only shall not be considered as an injury to the appearance. Note. — This rule was issued as series B, special rule 2, effective November I, 1917. Rule 2. Potatoes to be hovght and sold only by the pound or in standard containers. — The licensee shall quote, buy, and sell potatoes, including sweet potatoes, only by the pound except where the said potatoes are put up and sold in standard barrels, standard boxes, or standard hampers. Notes. — This rule was Issued as series B, special rule 3, effective November II, 1917. The Federal law creating a standard barrel for fruits, vegetables, and other dry commidities, effective July 1, 1916, provides : Section 1. Be it enacted l)y the Senate and House of Representatives of the United States of America in Congress assembled, That the standard barrel for fruits, vegetables, and other dry commodities other than cranberries shall be of the following dimensions when measured without distention of its parts : Length of stave, 28^ inches ; diameter of heads, 17J inches ; distance between heads, 26 inches ; circumference of bulge, 64'inches, outside measurement ; and the thickness of staves not greater than four-tenths of an inch : Provided, That any barrel of a different form, having a capacity of 7,056 cubic inches shall be a standard barrel. The standard barrel for cranberries shall be of the fol- lowing dimensions when measured without distention of parts : Length of staves, 284 inches ; diameter of head, 16i inches ; distance between heads, 251 inches; circumference of bulge, 58i inches, outside measurement; and the thickness of staves not greater than four-tenths of an inch. [XV— C— 3.] Rule 3. Potatoes to be graded in commeroial potato growing districts. — The licensee in commercial potato-growing districts shall assort and grade his pur- chases and shipments of potatoes according to the grades described in De- partment of Agriculture, Bureau of Markets, Document No. 7. EXTRACT FROM BUREAU OF MARKETS DOCUMENT NO. 7. United States grade No. i.— This grade shall consist of sound potatoes of simi- lar varieties characteristics, which are practically free (a) from dirt or other foreign matters, frost injury, sunburn, second growth, cuts, scab, blight, dry rot, and damage caused by disease, insect, or mechanical means. The minimum diameter ( 6 ) of potatoes of the round varieties shall be IJ inches, and of potatoes of the long varieties If inches. In order to allow for variations incident to commercial grading and handling, 5 per cent by weight of any lot may be under the prescribed size, and, in addition, 3 per cent by weight of any such lot may be below the remaining requirements of this grade. United States grade No. 2.— This grade shall consist of potatoes of similar varietal characteristics, which are practically free (a) from frost injury and decay, and which are free from serious damage (c) caused by dirt or other foreign matters, sunburn, second growth, cuts, scab, blight, dry rot or other disease, insects, or mechanical means. The minimum diameter (b) shall be li inches. In order to allow for variations incident to commercial grading and handling, 5 per cent by weight of any lot may be under the prescribed size and in addition, 5 per cent by weight of any such lot may be below the remaining 'XZ^:s^gr^e,ui.ements.-ia) " Practically f-e" means t.at the appearance shall not be injured to an extent readily .^PParent^upon casual ex- anSnation, and that any damage from the causes mentioned f^n be removed by the ordinary process of paring without appreciable increase m waste over that 736 COLD-STOKAGE LEGISLATION. ■which would occur if the potato were perfect. Loss of the outer skin (epi- dermis) only shall not- be considered as an Injury to the appearance. ( 6 ) " Diameter " means the greatest dimension at right angles to the longi- tudinal axis. (o) "Free from serious damage" means that the appearance shall not be injured to the extent of more than 20 per cent of the surface, and that any damage from the causes mentioned can be removed by the ordinary processes of paring without increase in waste of more than 10 per cent by weight over that which would occur if the potato were perfect. Note. — For the purpose of these recommendations no attempt has been made to provide grades for potatoes of extra fancy quality and size, such as special baking potatoes used in dining cars, hotels, and restaurants, or for lots com- posed of potatoes of different varietal characteristics, or for potatoes under the minimum diameter and other requirements of the United States grade No. 2. Potatoes of United States grade No. 1, unless shipped in bulk, should be placed only in new, clean sacks or barrels, which should be well filled, securely sewed or covered, and in addition to any necessary statements or marks, should be plainly marked " U. S. No. 1." Containers of potatoes of No. 2 grade, also, should be plainly marked " U. S. No. 2." [XV— C— 3— note.] Notes. — This rule was issued as series B, special rule 3A, effective January 31, 1918. The United States Food Administration is convinced that a general adoption of those grades will be beneficial to producer and consumer alike, will tend to decrease waste, and encourage the production of better quality, thus stimu- lating increased consumption. This has been clearly demonstrated by careful investigations conducted by the Bureau of Markets of the United States De- partment of Agriculture. The Food Administration recognizes that in some sections local conditions may be such that an immediate and strict enforcement of these grades might be inadvisable. It feels, however, that in such sections as there has been a general effort on the part of shippers to adopt this grading that those not co- operating are unfair and that their actions are detrimental to the best interests of the potato industry, and while due consideration will be given to peculiar conditions obtaining in any section, no technical attempt to evade the purpose of this rule will be tolerated. The matter will as far as possible be handled by cooperation with the United States department and various State departments of agriculture and through associations of growers and shippers. We shall in- sist on the sincere and earnest cooperation of every licensee in this connection. A licensee will not be considered as fairly grading his purchases if he uses a screen or other method of grading by which more than 5 per cent (by weight) of the potatoes excluded from the No. 1 grade are large enough for the No. 1 grade. Index K-26. EXHIBIT V. t XVI— Title.] UNITED STATES FOOD ADMINISTRATION SPECIAL LICENSE REGU- LATIONS NO. XVI. DlSTEIBUTORS OF FbESH FiSH AND FBOZEN PISH. This pamphjet contains all special rules affecting licensees dealing in fresh fish and frozen fish (holding a "G" license), issued up to August 24, 1918. The above licensees are also subject to General License Regulations No. I, issued in a separate pamphlet, which, together with this pamphlet, supersedes all regulations of series B as to the above licensees on August 24, 1918. Salt-water fishermen catching and selling salt-water fish, shellfish and crus- taceans, if not holding a " G " license, are subject to License Regulations No. XVII, issued in a separate pamphlet. COLD-STORAGE LEGISLATION. 737 [XVI— A.] No. XVI. DiSTEIBUTOES OF FrESH AND FROZEN FiSH. A. DEFINITIONS. The following definitions shall apply throughout all rules or announcements of the United States Food Administration governing licensees engaged in the business of importing, packing or distributing fresh or frozen fish. Fresh fish. — Synonymous with the trade phrase " fresh-caught flsh " and in- cludes all varieties of both salt water and fresh water flsh to which no methods of preservation have been applied other than temporary refrigeration. Frosen flsh. — Includes all varieties of both salt water and fresh water frozen flsh, whether frozen under natural temperature conditions or by mechanical means, and whether carried in freezer storage under natural temperature con- ditions or in cold storage warehouses. Wholesaler. — A person, firm, corporation, or association that sells fresh or frozen flsh to retailers or to suppliers of hotels and institutions. Supplier of hotels and institutions. — A person, firm, corporation or associa- tion that sells fresh or frozen fish to hotels, restaurants, clubs, dining car or . steamship companies or to institutions. Retailer. — A person, firm, corporation or association that sells or distributes fresh or fro7/;n flsh to consumers. Origirml storer of frozen fish. — A person, firm, corporation, or association that stores or packs frozen fish at first hand. Cost of frozen flsh. — The purchase price (or in the case of the original storer, the cost into storage), plus storage charges, interest, and insurance charges incurred by the seller up to the time of sale. [XVI— B—l, 2, 3, 4, 5, 6, 7.] B. SPECIAL REGULATIONS GOVEKNING ALL DISTRIBUTORS OF FEESH FISH AND FROZEN FISH. Rule 1. Loading of oars. — In making carload shipments each car shall be loaded with the maximum load which the particular car will carry consistent with the safety of the contents. KoTE. — This rule was formerly included in general rule 9, of series B, efcective January 28, 1918. „ „ ^ „ Rule 2. Fish to &e sold iy tceight—Exception.^'The licensee shall not sell any fresh fish or frozen fish except by the actual weight in pounds ; provided that licensees operating In fishing districts where facilities for weighmg fresh flsh are not available may sell fresh fish according to their customary methods. No^j,_rjijig rule takes the place of special rule 14, efeective January 31, 1918. ,„, ,. , „ f Rule 3 Only ivholesome fish to be sold or shipped.— The licensee shall not knowingly sell or ship for food purposes fresh fish or frozen fish which are not in a wholesome condition. ,, „ 4. n *,• „ Rule 4. Packing plants to be kept sawitary.— The licensee shall at all times keep his packing and distributing plant and all packing and handling equipment in a clean and sanitary condition. „, ,. i, i, v. i, „„-„„iTr Rule 5 Fish to be sold under true namies.—The licensee shall not knowingly invoice, ship, sell, or offer or expose for sale fish of any Parti^'^^J^",^,^^ /Jf' cept under its true name, or under the name generally accepted in the licensee s district as truly descriptive of such flsh. RULE I CaJcellationof contract prohibited <^fJ:^r ,r^tfj ^^^'Z'XKot livery to common carrier, unless consented to ^V l^^ ^j^^J^ P^f^y^^X^'Sl tract -The licensee shall not cancel any contract f^i^ *;^f * „^^^^?J./';^^^\f '^ after the goods have been packed by the consignor at Pomt of origin and have left the Backing house of the consignor in process of delivery to the common carrier Nothing in this I'ule shall be construed to limit or change the rights of Xr party in any action for damages because of any cancellation, whether ''Z^irl':.ZlablfXZl-by consignee to --^J- ^Lt^fu^ni^XSy shall not without reasonable justiflcation refuse to ^f fP* ^f,*^ "^|°^^ P^2™ any fresh fish or frozen fish shipped to him. Delay in transit shall not of itself 738 COLD-STORAQE LEGISLATION. constitute reasonable justification for refusal to accept unless specific delivery date has been contracted for. [XVI— B—l, 2, 3, 4, 5, 6, 7 (a). Dec. 6, 1918. Substitute this for XVI— B—1, 2, 3, 4, i, 6, 7.] B. SPECIAL KEGULATIONS GOVERNING ALL DISTBIBUTOES OF FEESH FISH AND FROZEN FISH. Rule 1. Loading of cars. — (Repealed Dec. 5, said repeal to become effective Dec. 10, 1918.) Rule 2. Fish to be sold by weight — Exception. — The licensee shall not sell any fresh fish or frozen fish except by the actual weight in pounds; provided that licensees operating in fishing districts where facilities for weighing fresh fish are not available may sell fresh fish according to their customary methods. Note. — This rule takes the place of special rule 14, effective Januray 31, 1918. Rule 3. Only wholesome fish to be sold or shipped. — The licensee shall not knowingly sell or ship for food purposes fresh fish or frozen fish which are not in a wholesome condition. Rule 4. Packing plants to be kept sanitary., — The licensee shall at all times keep his packing and distributing plant and all packing and handling equipment in a clean and sanitary condition. Rule 5. Fish to be sold under true names. — The licensee shall not knowingly invoice, ship, sell or offer or expose for sale fish of any particular variety except under its true name, or under the name generally accepted in the licensee's dis- trict as truly descriptive of such fish. Rule 6. Cancellation of contract prohibited after goods are in process of de- livery to common carrier, unless consented to by the other party to the con- tract. — The licensee shall hot cancel any contract for fresh fish or frozen fish after the goods have been packed by the consignor at point of origin and have left the packing house of the consignor in process of delivery to the common carrier. Nothing In this rule shall be construed to limit or change the rights of either party in any action for damages because of any cancellation, whether prior of subsequent to shipment. Rule 7. Unreasonable refusal by consignee to accept, prohibited. — The licensee shall not without reasonable justification refuse to accept and unload promptly any fresh fish or frozen fish shipped to him. Delay in transit shall not of Itself constitute reasonable justification for refusal to accept unless specific delivery date has been contracted for. [XVI— B—l, 2, 3, 4, 5, 6, 7 (b) and XVI— C—1, 2, 3 (a). Dec. 13, 1918. Substitute this for XVI— B—l, 2, 3, 4, 5, 6, 7 (a) and XVI— C—1, 2, 8.] B. SPECIAL REGULATIONS GOVERNING ALL DISTRIBUTORS OF FRESH FISH AND FROZEN FISH. Rule 1. Loading of cars. — (Repealed Dec. 5, said repeal to become effective Dec. 10, 1918.) The following rules were repealed on December 12, said repeals to become effective December 17, 1918 : Rule 2. Fish to be sold by weight — exceptions. Rule 3. Only wholesome fish to be sold or shipped. Rule 4. Packing plants to be kept sanitary. Rule 5. Fish to be sold under true names. Rule 6. Cancellation of contract prohibited after goods are in process of delivery to common carrier, unless consented to by the other party to the contract. Rule 7. Unreasonable refusal by consignee to accept prohibited. C. ADDITIONAL SPECIAL KEGULATIONS GOVERNING COMMISSION MERCHANTS AND BROKERS DEALING IN FEESH FISH OR FROZEN FISH. The following rules were repealed on December 12, said repeals to become effective December 17, 1918: Rule 1. Commission or brokerage not to be unreasonable or discriminatory. Rule 2. Prompt remittance and proper account of sales to be rendered. Rule 3. Agent not to buy from principal unless noted on account of sales. COLD-STORAGE LEGISLATION. 739 [*XVI— B— 1, 2, 3, 4, 5, 6, 7. Nov. 2, 1918. Insert this after XVI— B—1, 2, 3, 4, 5, 6, 7.] Note to Rule 5.— Pacific coast fish sold in Northwestern States as red snap- pers or red cod are not being sold under their true names or under the name generally accepted as truly descriptive of such fish. The true name for such fish and the name under which they should be sold is red rockfish. Fish from the Atlantic coast and well known in such territory as whiting must be sold under this name, and distributors selling this variety of fish under the name of pike, Jersey bluefish, Jersey blue pike, or any name other than whiting will be considered as violating rule 5. (Letter to Northern Fish Co., Duluth, Minn., Oct. 29, 1918.) [XVI— C — 1, 2, 3.] C. ADDITIONAL SPECIAL REGULATIONS GOVEBNING COMMISSION MERCHANTS AND BROKERS DEALING IN FRESH FISH OR FROZEN FISH. Rule 1. Commission or brokerage not to be uwreasonable or disorimvnatory. — The licensee shall not charge directly or indirectly an unjust, unreasonable, discriminatory, or unfair commission or brokerage on the sale of fresh fish or frozen fish. Note. — The Food Administration in enforcing this rule will insist that any proposed increase in rates be submitted to the local food administrator, and that the reason for any increased rate over the prewar normal be justified to him, subject to the general supervision of the United States Food Administra- tion before such increased rate Is put into effect. This rule was formerly included in series B, general rule 5, governing all licensees as issued November 1, 1917. Rule 2. Prompt remittance and proper account of sales to 6e rendered. — The licensee shall remit promptly following the sale of fresh fish or frozen fish received on consignment for sale or distribution, and shall render to the consignor an account showing the true sales and with charges only for services actually performed and expenses actually incurred by the licensee. Note. — This rule is in conformity with special rule 2 of series B, issued November 1, 1917. Rule 3. Agent not to 'buy from principal unless noted on account of sales.-~ The licensee shall not, directly or indirectly, sell consigned fresh fish or frozen fish, or such commodities with the sale of which on commission he is intrusted, to himself or to anyone connected with his business, unless he notes the facts of such transaction on the account of sales. Note. — This rule is in conformity with special rule 4, series B, issued Novem- ber 1, 1917. When a licensee sells to himself or to anyone connected with his business, he must clearly show on the account of sales that he himself bought the fish and also clearly show the quantity and at what price they were taken over. [XVI— D—l.] D. ADDITIONAL SPECIAL REGULATIONS GOVERNING FROZEN FISH DISTRIBUTORS. Rule 1. Invoices to clearly specify frozen fisJi.— All invoices, market tickets, sales tickets, and purchase slips, covering sales of frozen fish and passing in the usual course of trade between distributors or between suppliers of hotels and institutions and their customers or between retailers and consumers shall clearly indicate that the commodities sold are " frozen fish," as distinguished from " fresh fish." [XVI— E—l, 2.] REPORTS. 1 By licensees other than retailers or suppliers of hotels and institutions^ On or before December 15, 1918, each licensee (other than a retailer or a sup- plier of hotels and institutions) owning "^ controlling for sale any stock^^^^ frozen fish as of December 1, 1918, shaU mail to the United states Food Admin- istration, Washington, D. 0., a signed statement giving the following par- ticulars : A. Variety and sizes of frozen fish. „„„„^=, B. Quantity on hand and unsold December 1, 1918, pounds. 740 COLD-STOKAGE LEGISLATION. C. Average cost per pound. D. Prices at which fish were actually sold or quoted to retailers during week ending December 1, 1918: (1) Price per pound in small lots — ^broken packages; (2) price per pound in package lots; (3) price per pound in car lots. E. What if any charge is made for packages. A similar statement, giving the same particulars and applying to stocks on hand as of April 1, 1919, shall also be mailed to the Food Administration by or before April 15, 1919. 2. By retailers and suppliers of hotels and institutions. — On or before Decem- ber 15, 1918, each licensee who is a retailer or a supplier of hotels and institu- tions owning any stocks of frozen fish as of December 1, 1918, shaE mail to the United States Food Administration, Washington, D. C, a signed statement showing all stocks of frozen fish on hand as of December 1, 1918, and giving the following particulars : A. Variety and sizes of frozen fish. B. Quantity on hand and unsold December 1, 1918, pounds. C. Average cost per pound. D. Average prices at which fish were actually sold for consumption during week ending December 1, 1918: (1) Price per pound based on gross weight — ^be- fore dressing, etc. ; (2) price per pound based on net weight — after dressing, etc. A similar statement, giving the same particulars and applying to stocks on hand as of April 1, 1919, shall also be mailed to the Food Administration by or before April 15, 1919. [XVI — F — Supplement. ] RECOGNIZED FUNDAMENTALS APPLYING TO THE STOEING AND DISTRIBUTION OF FROZEN FISH. Storers of frozen fish, whether storing at the producing districts (Mf in the distributing markets, perform an important function in preserving the over- production of the various seasonal varieties for consumption during periods of scant production — i. e., the winter months. They are a direct and potent aid in encouraging and fostering the production of the fisheries by enabling the various producing units to operate steadily and at full efiiciency. Broad differences in the first costs of frozen fish must prevail generally, affected as they are by the uncertainties surrounding production influence of water temperatures, storms, feed conditions, and many other natural factors incident to the industry. The period of marketability is limited to the cold-weather months. The pack of any one variety must be sold in competition with the total pack of all kinds of frozen fish throughout the country, aggregating over a score of important varieties and many miscellaneous varieties. Marketing must also be carried on in competition with the daily supplies of fresh-caught fish, which fluctuate widely during the winter months. No satisfactory determination of total storage stocks and average costs on most of the varieties of frozen fish can be reached until after the completion of the fall runs. Storers of frozen fish and distributors must necessarily contend with these complex and uncertain factors. The business is so speculative in its nature and so variable in its results from season to season that ordinary methods of esti- mating margins of profit, whether upon particular varieties or the business as a whole, are diflicult of application. The practice of the original storers in selling portions of their pack of par- ticular varieties in advance of the termination of the seasin of flush produc- tion is a natural outgrowth of the uncertainty. It is a safeguard both for pro- ducers and storers and tends to remove some of the speculative features nat- urally inherent to the industry. PRESENT POLICT OF REGULATIONS. The particular attention of the frozen-fish industry is called to General Li- cense Regulations No. 1 (printed in a separate pamphlet) governing all indus- tries licensed by the United States Food Administration. (1) The reports required from all licensees will furnish a basis from which to survey the operations of all licensees during the season of 1918-19. COLD-STOKAGE LEGISLATION. 741 As the season progresses, special reports will be requested whenever deemed advisable. These will supplement our follow up of daily quotations in the prin- cipal distributing centers. (2) With the approach of winter certain staple varieties of frozen fish, stored in heavy volume, will be given special consideration, and the United States Food Administration hopes, if such action is deemed to be desirable and prac- ticable, to announce maximum prices beyond which these particular varieties can not be sold to the retailer or supplier of hotels and institutions. Such maximum prices, when announced, will be based on merchandise costs with due allowance for reasonable margins of profit. Such maximums when announced must be accepted as guides only. They do not modify the rules and must not be regarded by storers or owners of relatively low-cost packs as an invitation to take unreasonable profits. Bule 5 of the general license regulations provides as follows: " The licensee shall not import, manufacture, store, distribute, seU, or other- wise handle any food commodities on an unjust, exorbitant, unreasonable, dis- criminatory, or unfair commission, profit, or storage charge." We call attention to the fact that storers of frozen fish in districts favored by a heavy average production will have acquired their stocks at a much lower cost than storers where the runs of fish have been short and unfavorable. The United States Food Administration will expect the rapid pushing of all low-cost packs through the usual distributing channels early in the season and under such conditions as will naturally bring about prices to the retailer and the sup- plier of hotels and institutions materially below any maximum prices which may hereafter be established. (3) Attention is also called to general rule 6 regarding resales within the trade. The aim of the United States Food Administration is to keep the sup- plies or the various varieties of frozen fish moving naturally, freely, and as rapidly as possible into consuming channels at the prevailing prices determined solely by an open, unrestricted market in each distributing district and without local or general manipulation and without advantage being taken by the trade of temporary emergencies creating artificial price conditions. Hekbekt Hoover, United States Food Administrator. August 24, 1918. Exhibit W. [XVII— Title.] UNITED STATES FOOD ADMINISTRATION LICENSE REGULATIONS NO. XVII.— SALT-WATER FISHEBMEJSf. This pamphlet contains all general and special rules issued up to April 23, 1918, which affect salt-water fishermen catching and selling salt-water fish, shellfish, and crustaceans. Fishermen whose business extends beyond primary consignment and who hold a G license are also subject, in their distributing operations, to General License Regulations No. I and Special License Regula- tions No. XVI, issued -in separate pamphlets. [XVII— A.] A. PEOCLAMATION OF JANUARY 10, 1918. Under section 5 of the food-control act, the President issued a proclamation on January 10, 1918, which requires that all salt-water fishermen take out a Federal license. The exact persons covered are described as follows m the ^''"AT^slat^wkter fishermen not already licensed by the United States Food Administration, whether fishing independently or on shares engaged at any period of the year in the commercial distribution, including catching and selling, (if any or all varieties of salt-water fish, including menhaden, and of shellfish ^'^TMrfncludes'all salt-water fishermen other than those employed on wages, engaged commercially in the catching of salt-water fish, or the taking of any 742 COLD-STORAGE LEGISLATION. other kind of sea food, including lobsters, crabs, shrimps, oysters, clams, etc. Except as noted, it applies to such fishermen whether citizens of the United States or aliens, and whether temporarily or steadily engaged in fishing, whether on the Atlantic, Gulf of Mexico, or Pacific coasts of the United States, including Alaska or the coasts of Hawaii, or Porto Rico. The language includes firms, corporations, and associations as well as individuals. The only fishermen excepted are those employed on a wage basis, without depending for remuneration on a share in some form of fishing lay or part- nership agreement. Federal licenses are issued without charge or fee of any kind. All applica- tions for license must be on blanks provided by the United States Food Administration, and mailed to United States Food Administration, License Division, Washington, D. C. [XVII— B.] Rtjces and Regulations Governing Licensees Engaged as Salt-Water Fisher- men IN Catching and Selling Salt-Wateb Pish, Shellfish, and Crus- taceans. B. purpose of regulations. The following uniform Federal regulations are issued by the United States Food Administration for the primary purpose of stimulating the production of salt-water fish, shellfish, and crustaceans by permitting the widest possible production along all of the shores of the United States, and by eliminating wasteful and other objectionable practices which decrease the amount of avail- able food. The regulations have been prepared after consultation with the various State fisheries commissions and the United States Bureau of Fisheries. Their intention and effect is to supersede State laws restricting the production of fish and other sea food, in so far as such laws conflict with the Federal regulations. In so far as they do not conflict, the State law remain in full force and effect and all fishermen must comply therewith. The Federal food administrator of each State, in cooperating and advising with the fish commission of the same State, will take cognizance of State and local conditions or situations, not covered by Federal regulations, which restrict the free opera!tions of the licensee or limit the catches of salt-water fish or- the production of sea food, especially if tliey create a local shortage in the supply of these food commodities. He will particularly regard the gear, vessels, and equipment of the licensees, and all local restrictions upon their use with a view to recommending further action by the United States Food Administra- tion. The United States Food Administration will largely rely upon the United States Bureau of Fisheries and the State fishery commissions of the various States to assist the Federal food administrators in administering and enforcing the regulations. Any violations of the regulations, or the State laws which do not conflict therewith, is a cause for revoking the Federal license of the licensee guilty of such violation. [XVII— C—i, 2, 3, 4, 5.] c. general rules and regulations applying to all licensees in the salt-wateb FISHING districts AND SEA-FOOD PRODUCING AREAS OF THE UNITED STATES, IN- CLUDING ALASKA, AND IN POKTO BICO, AND HAWAII. Salt-water fishermen are not subject to the general rules governing other licensees. Rule 1. Must report change in address or management. — Licensed partner- ships, corporations, or associations shall report within 10 days, in writing, to the United States Pood Administration at Washington any change in the man- agement or control or any change in the character of the business of such firms, corporations, or associations. Fishermen licensees, operating as individuals, shall report within 30 days, in writing, to the United States Food Administra- tion at Washington any permanent change of address. Rule 2. Reports to be made on request. — The licensee, when directed by the United States Food Administrator or his duly authorized representative, shall give to such representative, to the United States Bureau of Fisheries, to any COLD-STORAGE LEGISLATION. 743 State fish commission, or to tlie Federal food administrator for any State, as may be directed, siicli information concerning his business as may be required, in writing, and under oath if requested. Rule 3. Inspcctian by Oovemmerit agents. — The autliorized representative of the United States Food Administrator shall be at full liberty at all times to inspect the premises of the licensee, his sea-food production, records, vessels, , traps, seines, fishing gear, equipment, and all other property used or controlled by the licensee in his operations. All necessary facilities for such inspection shall be'extended to such representative by the licensee and his agents. Rule 4. Must shoio license or give numher on request. — The licensee shall, upon request, show his Federal license or give the number of his Federal license to any representative of the United States Food Administration, the United States Bureau of Fisheries, or his State fish commission. Ruu: 5. Mnst obey State laws. — The licensee shall obey all State lav.-s in force where he is operating not in conflict with these general or special regulations. [XVII— C— 6, 7, 8, 9, 10, 11, 12.] Rule 6. Wn.ste forbidden. — The licensee shall not commit waste or willfully permit preventable deterioration in connection with the catching, production, or marketing of any varieties of salt-water fish, shellfish, or crustaceans. Rule 7. No dealino ivith person who has failed to take out license. — No licensee shall knowingly enter into fishing or producing arrangements with, or buy any sea-food commodities from, or sell or consign any sea-food commodities to, any person required to have a Federal license who has not secured such license. Rule S. Only irholesone sea food to be sold or shipped. — No licensee shall sell or ship for food purposes sea-food commodities which are not in a whole- some condition. Rule. 9. Container not full must be labeled. — The licensee in the shipping of all barrels, packages, or containers of salt-water fish, shellfish, or crustaceans, which contain less than the full weight prescribed by the usual trade customs applying in his district for a full barrel, package, or container, shall indicate such fact upon the shipping card or tag, or upon the advice or invoice which may accompany the shipment. Rule. 10. Willful violation of contract forbidden. — No licensee who has en- tered into a contract, oral or otherwise, for the sale of the whole or any part of his catch of salt-water fish, or his production of any kind of sea food, shall without just cause willfully violate his contract by selling or delivering such fish or sea food to any other person. Rule 11. Must market all sea food taken. — The licensee shall not release from traps, pounds, weirs, seines, or fishing vessels any salt-water fish, shellfish, or crustaceans which can be marketed by him without loss ; and he shall brmg m fish of all varieties and all roes and other parts of fish, which can be marketed by him without loss. „, ,. i. ,, ,. Rule 12. Damage to gear and equipment forbidden.— The licensee shall not willfully damage or destroy any gear, twine, or fishing supplies, or any vessel or vessel equipment. „ ^ ^.i. Note —The Federal Food Administrator for each State will inquire into the commission of waste in local sea-food production and the failure to make avail- able sea food which he finds can be marketed without loss to the fishermen. [XVII— D.] Special License Regulations. D. definitions. For the purpose of these special license regulations the Y.^ters of tlie Atlan- tic coast and the Gulf of Mexico are divided into three distinct districts desg- nated and referred to as " Atlantic coast outside waters,' Atlantic coast in- side waters," and " Gulf of Mexico waters." Atnntic Atlantic coast outside waters shall include all the waters of tlie Atlantic Octan extendfng seaward and offshore from the following-described line and Atlantic coast inside waters shall include all ^he.areas of water inhabit^^^^ any time of the year by salt-water fish and marine sheUfish and crustceans which lie or extend inshore from said following-described line : Ree-innins? at West Ouoddv Head on the coast of Maine; thence following me genefal linl of tie outei coast to Long Point ; thence in a direct line to Little 744 COLD-STOEAGE LEGISLATION. River Head; thence in a direct line to Libby Island Light ; thence in a direct line to Cummings Head on Great Wass Island ; thence Ui a direct line to Schoo- dic Point; thence in a direct line to East Head (Isle Au Haut) ; thence in a di- rect line to Pemaquld Point ; thence in a direct line to Cape Small Point , thence in a direct line to Cape Elizabeth Light; thence following the general line of the outer coast around Cape Ann to Phillips PoUit (Nahant Bay, Mass.) ; thence in a direct line to Point Allerton ; thence following the general line of the outer coast around Cape Cod to Cuttyhunk Light; thence in a direct l^e across the entrance to Buzzards Bay to the southerly extremity of Gooseberry Neck in the town of Westport, Mass. ; thence following the general line of the outer coast to Sakonnet Point; thence in a direct line to Point Judith ; thence following the general line of the outer coast to Watch Hill Point Light ; thence in a direct line to Lmie GUI Island Light ; thence in a direct line to Montak Point Light ; thence foirpwmg the general Une of the outer coast of Long Island to Rockaway Point; thence in a direct line to the point of Sandy Hook; thence following the general iine of the outer coast of New Jersey to Cape May Point; thence ma direct 1 ne to the point of Cape Henlopen; thence following the general line of the outer coast to the point of Cape Ohakes; thence in a direct line to Cape Henry Light thence following the general line of the outer coast around Gape Hat- teras to tlTe point of Cape Lookout; thence in a direct line through the sea buoy off slaufort Inlet ?o Bogue Bank; thence following the general line of the outer coast of North Carolina, South Carolina, Georgia, and Florida to Cape Florida; thence along the general line of the outer coast of the Florida ^The'S Tscrip^tlon includes in the definition of "Atlantic coast outside waters" Massachusetts Bay, Cape Cod Bay, Nantucket Sound, Vineyard Sound Block Island Sound, and Hawk Channel. It does not include Buzzards lay? Long island Sound, Delaware Bay, Chesapeake Bay, or the sounds of ^ GuW?f'Sco waters shall include all waters of the Gulf of Mexico extend- ing seaward from the following described line: _ ^^^^^- -, -, T.T„„ 19 iQia ^ TtPffinnins at Key West, Fla., thence in a .■ ^^' rrtn'r«nP sable Fla \S foUowLg tL sinuosities of the coast of Mexico areas. „ , „ o n [XVII— E—1, 2, 3.] E SPECIAL LICENSE EEGULATIONS GOVERNING ALL LICENSED KSHEKMEN OPEEATING E. bPEl.1- i. ^^ _^^^ ATLANTIC COAST OUTSIDE WATBKS. T?TTT^ 1 Tirensees shall fish freely— Exceptions.— The licensee shall conduct authorized and described in special rules 2 to 6, inclusive. i>«.^^,«rfc/7 TTint thpse reeulations shall not authorize (1) tne piacina, »bi, tin7 or oJ'eraUon of LrtopHounds, or weirs in any location forbidden v.whP War DeDartment or (2) the fishing operation by any enemy, alien Pnemy ^Li? of enemy flsherien without compliance with all regulations nSibed by the Department of Justice, or (3) any fishing operation in violation of other laws of the United States, or of State or local laws or regu- Stons which do not prohibit or restrict the operations expressly authorized ^tifLri^'ir/^ri^' "-4m 'Z^Z'e-M.cepHon.-rhe licensee -ay cafch and market Teh and every variety of salt-water fish in the ^tla-iUc coast outside waters throughout all seasons of each year: Z'^^^^'^' ™^^ ?heicensee shin not markit nor unnecessarily df troy in fishing operations salt-water fish of smaller size than are authorized by the laws of the State in whose waters such fish are caught or landed. COLD-STORAGE LEGISLATION. 745 Ktile 3. Fish traps, pounds, and weirs may be used and used continuously. — The licensee may place, set, and operate fish traps, pounds, and weirs in any part of the Atlantic coast outside waters upon any location not forbidden by the War Department, and may operate such gear steadily and continuously throughout every day in each week, Sunday included. [XVII— B— 4, 5, 6.] 'Rule 4. Purse seines, haul seines, gill nets, otter trawls, etc., may he used.— The licensee may fish with purse seines, haul seines, gill nets, otter or beam trawls, and other nets and gear in the Atlantic coast outside waters through- out all seasons of each year: Provided, however, That no purse seine or haul seine shall be operated within 500 yards of any trap, pound, or weir, or within '500 yards of any established beach-seining location in operation by any other licensee. RxTLE 5. Night fishing and torching permitted. — The licensee may engage in night fishing and torching in the Atlantic coast outside waters at all times throughout the year: Provided, however. That no torching operations shall be conducted within 500 yards of any trap, pound, or weir. Rule 6. Aliens and, nonresidents may fish. — The licensee, whether or not he is an alien, and whether or not he is a citizen of the State in which he is fishing or operating, may catch each and every variety of salt-water fish, and may take shrimp, prawn, mussels, and sea scallops in any part of the Atlantic coast outside waters and may freely market such commodities: Provided, That the licensee complies with or offers to comply with any license laws applicable to citizen residents of such State and pays or offers to pay the license fees required from such citizen residents. Note. — ^The possession of a Federal license in no way operates to relieve the Federal licensee from complying with any license laws of his State or other States in which he may conduct salt-water fishing operations, except to the extent of the modification provided in this rule. All State laws providing license requirements and not modified by the foregoing rules must be fully complied with by all Federal licensees. [XVII— E— 4, 5, 6 (a). July 31, 1918. Substitute this for XVII— E— 4, 5, 6.] Rule 4 (as amended Aug. 1, 1918). Purse seins, haul seines, gill nets, otter trawls, etc., may be used. — Tlie licensee may fish with purse seines, haul seines, gill nets, otter or beam trawls and other nets and gear in the Atlantic coast outside waters, throughout all seasons of each year: Provided, however (a) that no purse seine or haul seine shall be operated within 500 yards of any trap, pound, or weir, except by or on the permission of the owner or operator of such trap, pound, or weir; (b) that no purse seine or haul seine shall be operated within 500 yards of any authorized beach seining location on which a windlass or winch or similar operating equipment has been set up and established, except by or on the permission of the owner of such authorized beach seining location; and (c) that no purse seine or haul seine shall be operated within 500 yards of the mouth of any of the inlets or passes in Florida and Georgia waters. Rule 5. Night fishing and torching permitted. — The licensee may engage in night fishing and torching in the Atlantic coast outside waters at all times throughout the year : Provided, however. That no torching operations shall be conducted within 500 yards of any trap, pound, or weir. Rule 6. Aliens and nonresidents may fish. — (Repealed Aug. 1, 1918.) Note —The repeal of this rule is not intended in any way to countenance or approve the imposing of restrictions or excessive license fees on aliens or non- residents. [XVII— F.] F. SPECIAL LICENSE REGULATIONS GOVEBNING ALL LICENSED FISHBEMEN OPERATING IN THE ATLANTIC COAST INSIDE WATERS. Special «o«ice.— Conferences will be called by the United States Food Ad- ministration later in the year to consider certain sections of the Atlantic coast inside waters. Special license regulations decided ^iPo^.^y the Umted States Food Administration as a result of these conferences will be promulgated at a later date. 746 COLD-STORAGE LEGISLATION. [XVII— F—1, 2. July 31, 1918. Substitute for XVII— F.] (New— Effective Aug. 1, 1918.) F. SPECIAL LICENSE KEGULATIONS GOVERNING ALL LICENSED FISHERMEN OPKBA.TING IN THE ATLANTIC COAST INSIDE WATERS. Rule 1. Licensees shall fish freely — Exceptions.- — The licensee shall conduct his fishing operations in such places in the Atlantic coast inside waters, at such times and by the use of such gear and equipment as vnll result in the greatest possible production of edible fish. Provided, That these regulations shall not authorize (1) the placing, setting or operation of fish traps, pounds, or weirs in any location forbidden by the War Department, or (2) the fishing operation by any enemy, alien-enemy, or ally of enemy fishermen without compliance with all regulations prescribed by the Department of Justice, or (3) any fishing operation in violation of other laws of the United States, or of State or local laws or regulations which do not prohibit or restrict the operations expressly authorized and described by special rules following. Rule 2. Closed seasons and size restrictions. — Licensees conducting fishing operations in Atlantic coast inside waters shall not market or unnecessarily destroy in fishing operations, salt-water fish or smaller sizes than are author- ized by the laws of the State in whose waters such fish are caught or landed and shall comply with any State laws prescribing closed season on any variety of salt-water fish, except as such restrictions or closed seasons are modified by regulations hereinafter issued. Note. — Modification of State laws. — Whenever in any State the Federal Food Administrator and the State fish commission decide that a modification of the size restrictions or closed seasons, or permitting fishing in certain waters without permits from the local authorities, is in the interest of increased pro- duction or the avoidance of waste, supplemental regulations may be issued containing such modifications, and the licensee will then be governed by these supplemental regulations in pursuing his fishing operations and may fish and market his catch ih accordance therewith. [XVII— P— 3, 4, 5. July 31, 1918. Insert XVII— F—1, 2.] (New— Effective xiug. 1, 1918.) Rule 3. Authority to operate traps, weirs, etc., in new locations. — The licen- see may place, set, and operate fish traps, pounds, and weirs of twine, brush, or any other construction in any parts of the Atlantic coast inside waters upon any location not heretofore utilized and not forbidden by the War Department, without the consent of the shore-front property owners : Provided, That the licensee first secures the written consent and permit to use such location from the Federal Food Administrator and the State fish commission. Rule 4. Trapping and seining operations on authorized locations. — The licen- see conducting fishing operations for sea-herring in Atlantic coast inside waters on duly authorized weir or trap locations, may freely operate on such location with brush weirs, twin traps and floating traps, or with any form of temporary trap or penning gear, whether moored with stakes, anchors, or otherwise. Such licensee, as an aid to his weir or trap operations, may also freely use seining equipment in the area Immediately adjacent to his authorized weir or trap location : Provided, however. That this rule shall not be construed to au- thorize free seining operations on unauthorized locations. Rule 5. Sale of herring for hait. — Licensees who produce sea herring, whether by weirs, seines, or otherwise, shall not sell such herring to sardine packers, fresh-fish distributors, or any other packers of sea herring until the require- ments of ground fishermen for bait are supplied : Provided, That such ground fishermen shall purchase for cash and that no purchaser applies for more thnn his reasonable requirements. [XVII— G—i, 2.] G. SPECIAL LICENSE REGULATIONS GOVERNING ALL LICENSED FISHERMEN OPERATING IN GULF OF MEXICO WATERS. Rule 1. Licensees ■'shall fish freely — Exceptions. — The licensee shall conduct his fishing operations in such places in the Gulf of Mexico waters at such times COLD-STOEAGE LEGISLATION. 747 ancl by the iise of such gear ,-mcl equipment as will result in the greatest dos- sible production of edible fish without regard to State or local laws or regula- tions which prohibit or restrict the operations expressly authorized and de- scribed in special rules 2 to 7, inclusive. "ii/.bu d.uu ue Provided, That these regulations shall not authorize (1) the placing settine or operation of fish traps pounds, or weirs in any location forbWden by the TuJ ^TI^'^Ti."'' ^^^ ^ht ^'^^°^ operation.by any enemy, alien enemy, or ally of enemy fishermen without compliance with all regulations prescribed by he Department of Justice, or (3) any fishing operation in violation of other laws of the United States or of State or local laws or regulations which do not prohibit or restrict the operations expressly authorized and described by special rules 2 to 7, inclusive. oi/cv-.di Rule 2. Traps traivls, seines, gill nets, etc., may be used— Exceptions —The licensee may fish with traps, pounds, or weirs, otter or beam trawls, purse semes, haul seines, gill nets, trammel nets, and other nets and gear in any of the Gulf of Mexico waters throughout all seasons of each year: Provided (a) That no gill nets shall be set or fished in the bays, lakes, sounds, bayous, or lagoons west of the Alabama-Florida State line cr east of the Louisiana-Texas State line ; (6) that no pound net, seine, gill net, trammel net, or other net shall be set or fished so as to Obstruct the free passage of fish in any bayou or lagoon : ^"'l.^^'l^Jj'^* "° "'^^^^ whatever shall be set or fished within any Inlet or pass or within 500 yards of the mouth thereof. [XVII— G—l, 2 (a). Nov. 14, 1918. Substitute this for XVII— G—1, 2.] G. SPECIAL LICENSE REGULATIONS GOVEKNING ALL LICENSED FISHERMEN OPERATING IN " GULF OF MEXICO WATERS." Rule 1. Licensees shall fish freely — Exceptions. — The licensee shall conduct his fishing operations in such places in the Gulf of Mexico waters at such times and by the use of such gear and equipment as will result in the greatest possible production of edible fish without regard to State or local laws or regulations which prohibit or restrict the operations expressly authorized and described in special rules 2 to 7, inclusive. Provided, That these regulations shall not authorize (1) the placing, setting, or operation of fish traps, pounds, or weirs in any location forbidden by the War Department, or (2) the fishing operation by an enemy, alien enemy, or ally of enemy fishermen without compliance with all regulations prescribed by the Department of Justice, or (3) any fishing operation in violation of other laws of the United States or of State or local laws or regulations which do not prohibit or restrict the operations expressly authorized and described by special rules 2 to 7, inclusive. Rule 2 (as amended, Nov. 12, 1918). Traps, trawls, seines, gill nets, etc., may he used — Exceptions. — The licensee may fish with traps, pounds, or weirs, otter or beam trawls, purse seines, haul seines, gill nets, trammel nets and other nets, and gear in any of the Gulf of Mexico waters throughout all seasons of each year: Provided (a). That no gill nets shall be set or fished in the bays, lakes, sounds, bayous, lagoons, rivers, or creeks in the district embraced within the Alabama-Florida State line on the east and the Louisiana-Texas State line on the west; (6) that no pound net, seine, gill net, trammel net, or other net shall be set or fished so as to obstruct the free passage of fish in any bayou or lagoon, river, or creek; (e) that no nets whatever shall be set or fished within any inlet or pass or within 500 yards of the mouth thereof. [XVII— G— 3, 4, 5.] Rule 8. Salt-water fish of all sizes may be caught at all seasons—Excep- tions.— Tiie licensee may catch and market each and every variety of salt-water fish and of all sizes in the Gulf of Mexico watei's throughout all seasons of each year: Provided (a). That no sea trout or red flsh (channel bass less than 12 inches in length shall be marketed oi- unnecessarily destroyed in fishing opera- tions; (6) that in all the Gulf of Mexico waters west of the mouth of the Suwannee River, Fla., no muUet less than 8 inches in length shall be marketed or unnecessarily destroyed in fishing operations; (c) that m all the GiUt ot Mexico waters south of the mouth of the Suwannee River, Fla., no mullet less than 10 inches in length shall be marketed or unncessarily destroyed m fish- ing operfations; (d) that ill the Gulf of Mexico waters, south of the mouth of 137690—19 48 748 COLD-STORAGE LEGISLATION. the Suwannee River, Fla., no mullet whatever shall be caught, marketed, or unnecessarily destroyed in fishing operations during the period from Novem- ber 25 to December 20 in each year. Rule 4. Seines of any length may 6e used for catching shrimp — Mesh mini- mums. — The licensee may use seines of any length for catching shrimp in the Gulf -of Mexico waters : Provided, That such seines shall not have meshes of less than three-quarters of an Inch square or bar measure. Rule 5. Shrimq) may he caught throughout the year. — Exceptions. — The licensee may talje shrimp throughout all seasons of each year in the Gulf of Mexico waters: Provided (a). That in any State In which there is a law in force prescribing a closed season no shrimp shall be taken between the 1st day of December and the 15th day of February following, inclusive, and between the 1st day of June and the 15th day of July, inclusive, of each year, except shrimp to be used and marketed in their fresh state (that is, neither dried nor canned) and for local consumption. [XVII— G— 3, 4, 5 (a). Nov. 14, 1918. Substitute this for XVII— G— 3, 4, 5.] Rule 3 (as amended Nov. 12, 1918). Salt water fish of all sizes may he caught at all seasons — Exceptions. — The licensee may catch and market each and every variety of salt water fish and of all sizes in the Gulf of Mexico waters throughout aU seasons of each year: Provided, (a) That no sea trout or redfish (channel bass) less than 12 inches In length shall be marketed or unnecessarily destroyed in fishing operations ; ( & ) that no mullet less than 8 inches in length shall be marketed or unneces^■arily destroyed in fishing operations : And provided further. That in all the Gulf of Mexico waters east of the Alabama-Florida State line no mullet whatever shall be caught, mar- keted, or unnecessarily destroyed in fishing operations during the period from November 25 to December 20 of each year. Note. — Modification of State laws. — Whenever In any State the Federal Food Administrator and the State Fish Commlrslon decide that a modification of the size restrictions or closed seasons, or permitting fishing In certain waters without permits from the local authorities. Is in the Interest of increased production or the avoijJance of waste, supplemental regulations may be Issued by the United States Food Administrator containing such modifications, and the licensee will then be governed by these supplemental regulations in pur- suing his fishing operations and may fish and market his catch In accordance therewith. Rule 4. Seines of any length may he used for catching shrimp — Mesh mini- mums. — The licensee may use seines of any length for catching shrimp In the Gulf of Mexico waters : Provided, That such seines shall not have meshes of less than three-quarters of an inch square or bar measure. Rule 5. Shrimp may he caught throughout the year — Exceptions. — -The licensee may take shrimp throughout all seasons of each year in the Gulf of Mexico waters: Provided, (a) That In any State in which there is a law in force prescribing a closed season no shrimp shall be taken between the 1st day of December and the 15th day of February following, inclusive, and be- tween the 1st day of June and the 15th day of July, Inclusive, of each year, except shrimp to be used and marketed in their fresh state (that is, neither dried nor canned) and for local consumption. [XVII— G — 6, 7.] Rule 6. Oyster regulations. — The licensee may take and market oysters from the public reefs of the Gulf of Mexico waters from the 1st day of September to the 1st day of May following. He may take seed oysters for bedding or replanting on leased bottoms during any month of the year: Pro- vided, That In tho.^e States in which the taking of seed oysters Is permitted by State law the licensee complies with all existing State regulations apply- ing thereto and no inconsistent with these regulations. Rule 7. Aliens and nonresidents may fish. — The licensee, whether or not he Is an alien and whether or not he is a citizen of the State in which he Is fishing or operating, may catch each and every variety of salt-water fish and may take shellfish and crustaceans in any part of the Gulf of Mexico waters and may freely market such commodities: Provided, That the licensee com- plies with or offers to comply with any license laws applicable to citizen COLD-STOBAGE LEGISLATION. 749 s'f citfzen Se'nfs!' "^' ^^^^ "' ^^"'^ ''^ ^'^^ "^ "-"- ^- -^--U fro,. Note —The possession of a Federal license in no way operates to relieve tho l^ntr^n^'^h^t i"""^ compl5'ing with any license lawVo'fws State or other fxten? of 7h.''^nHlfin.? ^""''"^t salt-water fishing operations, except to the extent of the modification provided in this rule. All State laws providing license requirements and not modified by the foregoing rules must he f nil v complied with by all Federal licensees. "'"'^soing luies must be fully [XVII— G — 6, 7 (a). July 31, 1918. Substitute this for XVII— G— 6, 7.] Rule 6. Oyster regulations.— (This rule has not been changed.) The licensee may take and market oysters from the public reefs of the Gulf of Mexico waters from the 1st day of September to the 1st day of May following He may take seed oysters for bedding or replanting on leased bottoms during any month of the year: Provided, That in those States in which the taking of seed oysters IS permitted by State law the licensee complies with all existing State regulations applying thereto and not inconsistent with thes-e regulations Rule 7. Aliens and nonresidents may fish. — (Repealed Aug 1 1918 ) Note.— The repeal of this rule is not intended in any way to countenance or approve the imposing of restrictions or excessive license fees on aliens or non- residents. Exhibit X. [XVIII— Title.] UNITED STATES FOOD ADMINISTRATION SPECIAL LICENSE REGULA- TIONS No. XVIII— DISTRIBUTORS OF POULTRY. Effective December 9, 1918. This series contains all special regulations applying to the above licensees issued up to December 9, 1918. Such licensees are also subject to General Regu- lations No. 1, dated May 3, 1918, which, together with this series supersede, as to the above licensees, all regulations of series B. [XVIII— A— 1, 2, 3, 4, 5, 6.] A. SPECIAL BE6ULATI0NS GOVERNING DISTRIBITORS OF FRESH POULTRY. Rule 1 (repealed Dec. 5, repeal to be effective Dec. 10, 1918). — Minimum car- load shipments. — All carload shipments of fresh poultry or mixed carloads of butter, eggs, and poultry shall be made in car lots or not less than 20,0(X) pounds from June 1 to September 15 and 24,000 pounds for the remainder of the year unless a different minimum is authorized by special written permission of the United States Food Administrator : Provided, hotvevcr. That when cars of lower carrying capacity are used the maximum load which the car will carry may be used without such permission. Rule 2. Hoarding prohibited. — The licensee shall not keep on hand or have id his possession or under control, by contract or other arrangement, a quantity of poultry in excess of the reasonable requirements of his business for use or sale by him for a reasonable time or in sufficient quantities to fill Ms reasonable requirements throughout the period of scant or no production. Rule 3. Feeding of live poultry. — All live poultry shipped to market in live poultry cars, or In coops in cars by freig'at, or by express in car lots, shall be fed or caused to be fed by the licensee at least twice each day with poultry feed until killed. Such' poultry feed shall consist of cereals, either ground or whole, meat scraps, bone meal, dried or evaporated sweet milk or buttermilk, to be thinned by adding water or liquid sweet milk or buttermilk : Provided, however. That such feed shall not contain any wheat fit for huninn consumption, and that in no event shall the amount of wheat in such feed exceed 10 per cent thereof. The use of any ingredients except those enumerated in such poultry feed is prohibited. .^, ,. ,, „ Rule 4. Amount of feed in live poultry restricted.— The licensee shall not sell or offer for sale any live poultry which contains more than 1 ounce of feed for each 2 pounds of live poultry. V50 COLD-STOEAGE LEGISLATION. Rule 5. Amount of feed in dressed poultry restricted. — The licensee shall not sell or offer for sale any dressed poultry which contains more than one-fifth of an ounce of feed to each 2 pounds, dressed weight, of such poultry. Rule 6 (repealed Dec. 5, repeal to be effective Dec. 10, 1918. — Shipment of ice- jMcked poultry regulated. — The licensee shall not ship ice-packed poultry by freight for a distance of more than 100 hundred miles, except in carload lots: Provided, hotvever, such poulty may be shipped in a mixed carload for the same destination, each car to contain not less feaan 15,000 pounds of any two or more of the following commodities, viz, poultry, cheese, butter, and eggs, ifrom not more than three points of origin on the direct route to such destination, and provided that when Ice-packed poultry is loaded in such cars the aggregate weight of such poultry in each car shall not be less than 7,500 pounds. Note. — This rule became effective September 16, 1918. INTEKTRADING EESTKICTED. General rule 6 provides as follows : " The licensee, in selling food commodi- ties, shall keep such commodities moving to the consumer in as direct a line as practicable and without unreasonable delay. Resales within the same trade without reasonable justification, especially if tending to result in higher market price to the retailer or consumer, will be dealt with as an unfair practice." The United States Food Administration recognizes the following classes of dealers in fresh poultry:, (1) Original packers and shippers, (2) commission merchants and wholesalers, (3) jobbers and suppliers of hotels and institutions, (4) retailers. All trading in fresh poultry must contribute toward moving the poultry in a direct line to the consumer. Sales between dealers in any one of the classes mentioned above are prohibited except as follows : Sales between wholesalers in different cities will for the present be permitted where necessary to supply the reasonable requirements of the buyer's business, provided there is an actual shipment of the goods, and provided the movement between cities is in the direc- tion of normal crop movement from producer to consumer. In addition thereto, not more than two sales between dealers In class 2 may be made without obtain- ing the consent of the local Federal food administrator if such sales are necessary to supply the reasonable requirements of the buyer's business, but more than two sales between dealers in class 2 shall not bfe made without the written consent of the local Federal food administrator. One sale, and only one, between dealers in the same class other than class 2 may be made without obtaining the consent of the local Federal food administrator if such sale is necessary to supply the rea- sonable requirements of the buyer's business, but more than one such sale shall not be made without the written consent of the local Federal food administrator. In no case shall a dealer sell fresh poultry to any dealer in a class further removed from the consumer than the class in which the seller is included ; for example, a jobber shall not sell to wholesaler, or a retailer to a wholesaler. No objection will be made to sales of fresh poultry that are made at a price that is less than or equal to the initial cost to the seller of the particular com- modities sold, nor are such sales to be counted as sales between dealers in the same class. Licensee will be expected to find out whether sales are justifiable by obtaining information as to the class in which the seller and the buyer are dealing and the location and class of the licensee from whom the seller purchased. Tiais Infor- nation should be placed on all confirmation of sales. [ XVII— B— Definition . ] B. SPECIAL REGTJLATIONS GOVERNING DISTEIBUTOBS 01" FKOZEN POULTRY. Definitions. — In the following rules the different kinds of dealers in frozen poultry are defined as follows : (a) An original packer or shipper is a person, firm, corporation, or associ- ation that assembles and packs the poultry for market or storage. (6) A commission merchant is a person, firm, corporation, or association that solicits for sale or receives for sale, and sells food products on a commission basis, or that acts as agent or representative of shippers, packers, and other distributors In the marketing of food products for a fixed package charge or on a percentage basis. COLD-STORAGE LEGISLATION. 751 (c) A wholesaler is a person, firm, corporation, or association other than.the original packer or shipper that sells to jobbers or to suppliers of hotels and institutions. (d) A jobber is a person, firm, corporation, or association that sells or dis- tributes to retailers. (e) A supplier of hotels and institutions is a person, firm, corporation, or association that sells to hotels, restaurants, clubs, dining car or steamship companies, public or private institutions, or to retail dealers requiring specially selected stock and being furnished a service similar to that rendered to hotels and institutions. if) A retailer is a person, firm, corporation, or association that sells or dis- tributes to consumers. (fir) The original storer is the person, firm, corporation, or association that owns poultry when first placed in a cold-storage warehouse. Notes. — (1) Where a licensee sells poultry within 30 days from the date of original storage, the buyer may also be considered the original storer to the extent that he may add to the maximum advance over cost allowed In selling as a wholesaler, jobber, etc., any part of 6 per cent over the first storer's cost not added by the first storer. In .such cases the first storer who sells within 30 days must inform the buyer what portion of 6 per cent over his cost he has added. (2) Where a definite lot of poultry Is sold before it is placed in a cold- storage warehouse and if title to this lot actually passes to the purchaser, or if title is retained by the seller merely as security for the purchase price, and thereafter the poultry Is put in the warehouse, the purchaser will be considered the original storer even though the poultry is carried and insured in the seller's name. Determination of cost. — Wherever in the following rules dealers in frozen poultry are limited in the advance over cost at which such poultry may be sold, " cost " shall be construed to include the purchase price, or in the case of the original packer or shipper the cost into storage, plus storage charges, interest on the goods in storage, and insurance on goods in storage incurred by the seller up to the time of sale, but not to include any other expenses. In determining cost the licensee may average the cost of all frozen poultry of the same kind and grade which have not already been contracted to be sold, and may take such average cost as the cost of any particular lot of that kind and grade. The licensee must keep a record of the manner in which such average has been arrived at and shall take as the cost of all stock remain- ing Oil hand from lots already averaged, the average cost previously arrived at. If the cost of any frozen poultry is averaged, the cost of all frozen poultry must be averaged. Notes. — ( 1 ) The maximum advances over cost specified In the following rules are not to be regarded as normal or so recognized by the Food Administration. They are intended only to prevent speculation and are purposely made wide to cover cases where the methods of doing business are more expensive, to the extent that such methods are justified. Those maximum advances must be exceeded in selling any specified lot of poultry, and the average advance over cost charged by any dealer must not be more than suflicient to return to him a reasonable profit on his investment in accordance with general rule 5 which is as follows : " The licensee shall not import, manufacture, store, distribute, sell, or otherwise handle any food commodities on an unjust, exorbitant, unreason- able, discriminatory, or unfair commission profit or storage charge." (2) Profits on different sales can -not be averaged. The licensee is limited on each transaction to the maximum profit permitted by the rules and regula- tions. • (3) Where a dealer in the sale of poultry adds less than the maximum advance over cost permitted by the rules, the buyer is not because of this fact permitted to add to the maximum advance over cost allowed to him any part of the maximum advance allowed to the seller which the seller did not add. (4) The special rules regulating the profits of dealers in frozen poultry do not apply to poultry that is placed in a cold-storage warehouse, but which is removed from the cold-storage warehouse, for distribution for consumption, within thirty (30) days after the date of the original entry of such poultry into the cold-storage warehouse. 752 COLD-STOEAGE LEGISLATION. [XVIII— B—1, 2, 3.] SPECIAL REGULATIONS. Rule 1. Purchase from dealer charging unreasonable margin prohibited. — No licensee shall knowingly purchase frozen poultry from a dealer who sells at a greater advance over cost than the maximum specified in the following rules. Rule 2. Maximum margins for original packer or shipper. — The original packer or shipper, storing in a cold-storage warehouse, shall not sell frozen poultry to wholesalers at an advance of more than 6 per cent over cost. In case frozen poultry is stored in the name of a commission merchant, the original storer shall be deemed to be the consignor for whom the commission merchant acts as agent. An additional advance not exceeding 5 per cent of cost may be charged by the original packer or shipper in selling to jobbers or suppliers of hotels and institutions. An additional advance not exceeding 10 per cent of cost may be charged in selling to retailers, or an additional advance not exceed- ing 15 per cent of cost may be charged if the packer performs the functions of a supplier of hotels and institutions, as heretofore defined. Rule 3. Maximum commissions. — A commission merchant shall not receive a commission of more than 5 per cent on frozen poultry consigned to him by ship- pers or packers. If a commission merchant acts as an agent for dealers other than shippers or packers for the distribution of surplus stocks, the selling price shall not exceed the maximum advance over cost to the consignor per- mitted to such consignor by the following rules, which advance shall include the commission for such sale. A commission merchant who takes to account consigned frozen poultry shall not receive any other profit beyond the amount of the commission before specified. A commission merchant shall require from consignors a statement of cost of goods and maximum selling price allowable under these rules. [XVIII— B — 4, 5, 6, 7.] Rule 4. Maxivium' margin for jobber. — A jobber shall not sell frozen poultry poultry at an advance of more than 5 per cent over cost. If a wholesaler also sells as a jobber he shall not sell at an advance of more than 10 per cent over cost as provided for jobbers in rule 5. The above maximum advances may be increased by not to exceed 6 per cent of cost in cases where the wholesaler is also the original storer in a cold-storage warehouse. Rule 5. Maximum margin for jobber. — A jobber shall not sell frozen poultry at an advance of more than 10 per cent over cost. The above maximum advance may be increased by not to exceed 6 per cent of cost In cases where the jobber Is also the original storer in a cold-storage warehouse. Rule 6. Maximum margin for supplier of hotels and institutions. — ^A supplier of hotels and institutions shall not sell frozen poultry at an advance of more than 15 per cent over cost. The above maximum advance may be increased by not to exceed 6 per cent of cost in cases where the supplier of hotels and in- stitutions is also the original storer in a cold-storage warehouse. Rule 7. Direct lime of distribution defined. — A sale by any dealer in frozen poultry in any of the classes indicated below to a dealer in any succeeding class shall be considered to be in the direct line of distribution : Class 1. Original packers and shippers. Class 2. Commission merchants — wholesalers. Class 3. Jobbers — suppliers of hotels and institutions. Class 4. Retailers — hotels and institutions. [XVIII— B— 8.] Rule 8. Intertrading restricted. — All trading in frozen poultry shall serve to move the frozen poultry in the direct line of distribution to the consumer, and nothing contained in this or the preceding rule shall authorize any licensee to use any more indirect method of distribution of frozen poultry. One sale of any lot of frozen poultry between dealers in the same class may be made where necessary to supply the reasonable requirements of the buyer's busi- ness, provided a report is made promptly to the local Federal food adminis- trator. Such sales shall be made at an advance of not more than 5 per cent over cost, except when sold by the original storer, who shall sell at not more than 6 per cent over cost. If sold by a commission merchant to a wholesaler the commission shall not exceed 5 per cent. COLD-STORAGE LEGISLATION. 753 Except for such sales no licensee shall sell to another in the same or anv preceding c ass of distribution without the written consent of the local Federal ^od administrator ^yhich will be given only in extraordinary circumstances Ht l^f consent is given the dealer shall not sell at an advance of more than one-fourth cent per pound over cost, nor in the case of a commission merchant selling to a wholesaler shall the commission amount to more than one-fourth cent per pound : Provided, however, That nothing in this rule shall prevent sales at cost : Provided further, That nothing in this rule shall prevent sales for immediate delivery from one city to another for actual distribution to relieve exceptional local shortage, but a report of any such sale must be promptly made to the local Federal food administrator, with the reasons therefor; such sales shall be made at a price not to exceed 5 per cent over cost, or if sold by a commission merchant to a wholesaler the commission shall not exceed 5 per cent : And provided further. That nothing in the rule shall pre- vent a commission merchant from acting us an agent for dealers other than original shippers and packers, as provided in rule 3. Note.— Licensees will be expected to find out whether sales are justifiable by obtaining information as to the class in which the seller and the buyer are dealing and the location and class of the licensee from whom the seller pur- chased. This information should be placed on all confirmations of sales. [XVIII— B— 9, io, 11, 12, 13.] Rule 9. Brokerage to he included in margins. — If brokers act as agents in any sale of frozen poultry under these rules, brokerage paid shall not be added to the selling price of the goods. Rule 10. Hoarding prohiMted. — The licensee shall not keep on hand or have in his possession or under control, by contract or other arrangement, a quantity of poultry in excess of the reasonable requirements of his business for use or sale by him/ for a reasonable time, or in sufficient quantities to fill his reasonable requirements throughout the period of scant or no production. Note. — Poultry must in no case be stored for more than 12 months from the date of the original receipt in a cold-storage warehouse. After the com- pletion of a certain portion of the storage season, to be determined in connec- tion with each product (when the maximum stocks of each variety can be estimated, a plan may be adopted by the United States Food Administration providing for the percentage of withdrawals required per month on each variety and for each class of business for the balance of the season in order to provide for an equitable distribution. Licensees engaged in business as cold-storage warehousemen will be re- quired to provide necessary information. Dealers will be required to make special monthly storage i-eport.s giving the necessary data covering transactions in frozen poulijry in accordance with the foregoing rules. Rule 11 (repealed Dec. 5, repeal to be effective Dec. 10, 1Q18) .—MirUmum carload shipments. — All carload shipments of poultry or mixed carloads of butter, eggs, and poultry shall be made in car lots of not less than 20,000 pounds from June 1 to September 15, and 24,000 pounds for the remainder of the yeaf, unless a different minimum is authorized by special written permis- sion of the United States Food Administrator : Provided, however, That when cars of lower carrying capacity are used the maximum load which the car will carry may be used without such permission. Rule 12. Amount of feed in dressed poultry restricted. — The licensees shall not sell or offer for sale any dressed poultry which contains more than one- fifth of an ounce of feed for each 2 pounds of dressed poultry. Rule 13 When poultry to be marked " cold storage."— 'No hcensee shall sell or offer for sale poultry which has been held for a period of 30 days or over m a cold-storage warehouse, unless such poultry is plainly marked, stamped, or tagged, either upon the container wherein packed, or, upon the article of food Itself With the words "cold storage." The licensee shall keep such mark, stamp, or tag In plain view, and shall not represent or advertise as fresh any poultry; and if he is a retailer shall display a placard plainly and conspicu- ously marked " cold-storage goods " on the bulk mass of articles of food. Any invoice or Mil rendered for such goods shall clearly describe the poultry, using the words " cold-storage goods." [XVIII— B— 14, 15.] Rule 14. Cold-storage markings not to he ^"''^^^•-fo licensee shall re- move or erase or permit to be removed or erased any mark, stamp, oi tag boar 7 COLD-STORAGE LEGISLATION. ing the words "Cold storage " or other words required by these rules and regu- lations to be placed on any poultry or upon the containers wherein they are packed unless the poultry so marked, stamped, or tagged were delivered from the cold-storage warehouse where originally stored within 30 days after they were stored and were not again put into a cold-storage warehouse. When any poultry is transferred from a container bearing the words " Cold storage," or such poultry is divided into smaller lots or units, the words " Cold storage " shall be plainly and conspicuously marked upon the containers, cartons, pack- ages, or wrappers to which they are transferred. Rule 15. Certifloate of value to lie furnished to cold-storage warehousemen. — The licensee storing poultry with cold-storage warehouseman upon Which the warehouseman either directly or indirectly loans money shall upon request of such warehouseman file with him a certificate stating the market value of the goods stored and shall make no false or misleading statement in such certifi- cate nor shall he fail to maintain the margin required by the regulations of the Pood Administration on loans made by cold-storage warehousemen. [XVIII— C— -1,2, 3.] C. ADDITIONAL EEGULATIONS GOVEBNING COMMISSION MERCHANTS, BROKEES, AND AUCTIONEERS DEALING IN POULTRY. Rule 1. Commission or brokerage not to be "inreasonable or discrimina- tory. — The licensee shall not charge, directly or indirectly, an unjust, exorbi- tant, unreasonable, discriminatory, or unfair commission or brokerage on the sale of poultry. Note. — ^The Food Administration in enforcing this rule will insist that any proposed increase in rates be submitted to the local Federal food administrator and that the reason for any . increased rate over the prewar normal be justi- fied to him, subject to the general supervision of the United States Food Admin- istration before such increased rates are put into effect. The rates to be charged by a commission niercliant are more specifically treated under B, rule 3, supra. Rule 2. Prompt remittance and proper account sales to be rendered. — The licensee shall remit promptly following the sale of poultry received on con- signment for sale or distribution and shall render to the consignor an account showing the true sales and with charges only for services actually performed and expenses actually incurred by the licensee. Note. — Where a commission merchant receives a consignment of poultry and guarantees to the consignor a definite selling price, he must show on the ac- count sales the actual price at which .the goods are sold, together with serv- ices actually performed and expenses actually incurred, and as a separate item must show any sum p;iid to the consignor by reason of "the commission merchant's contract of guaranty. Failure to do this will be considered a vio- lation of the above rule and also a misstatement of the price at which com- modities are being sold in violation of general rule 19. Rule 3. Agent not to buy from principal unless noted on account of sales. — The licensee shall not, directly or indirectly, sell consigned poultry or poultry with the sale of which on commission he is intrusted to himself or to anyone connected with his business unless he notes the facts of such transaction on the account of sales. Note. — This rule is not intended to relieve the licensee from any legal obli- gation resting on him to obtain authorization from the shipper before taking to account goods consigned to him or to obtain the ratification of such a trans- action. Exhibit Y. [XIX— Title.] UNITED STATES FOOD ADMINISTRATION, SPECIAL LICENSE REGU- LATIONS NO. XIX. Distributors of Eggs. Effective November 11, 1918. This series contains all special regulations applying to the above licensees issued up to November 11, 1918. Such licensees are also subject to General Regulations No. I, dated May 3, 1918, which, together with the series, super- sede, as to the above licensees, all regulations of series B. COLD-STORAGE LEGISLATION. 755 [XIX— A— Candling.] CANDLING KEQUIKEMENTS. Careful and conservative estimates show that for the past five years during the period from June 1 to October 1, 25 per cent of all eggs were a total loss and 40 per cent materially depreciated in food value. In order to save as much as possible of this food during this great emergency we recommend • 1. Compliance with all municipal, State, and Federal regulations as to candling and purchasing, 2. Cooperation with agricultural college extension men handling this work 3. That in every case of candled eggs there be placed on the top layer a candling certificate, as per copy below. 4. That the suggfstions on the back of the candling certificate be given care- ful attention. It is desirable to place on the face of the card at the upper left the United States Food Administration emblem, at the upper right the State emblem, and on the back of the card in the upper center the United States Food Administra- tion emblem. This, however, is not essential. (Face of card.) Food will win the war. Egg candling certificate. The State Food Department, in cooperation with the United States Food Administration, is working to save all eggs. Make every egg count. Remember a rotten egg feeds nobody, brings no profit to anyone, helps only the enemy. We have endeavored earnestly to do our bit to save to our people the millions of dollars formerly lost. Every receiver should candle all eggs carefully, keep them cool and dry, thereby helping the Allies make the world a decent place to live in. This case candled by (Date) (Signed) (Firm, corporation, or individual.) (Over.) ■(Town)" ('StaTe') (License number) (Reverse side' of card) In order that the eggs in this case serve the purpose of food for our people and our Allies to the fullest extent and help to win the war, it is necessary that they be chilled to a temperature of 60° or below whenever at all possible and be moved into cold storage or consumption. Your patriotic cooperation is desired. Licensees will be expected to comply with the State and municipal laws, rules, and regulations, and \\ith the Federal regulations. Faiilure to do so will be considered a wasteful practice. United States Food Administration. (It is recommended that these cards be printed 6| by 3J inches.) [XIX — A — Intertrading. ] INTERTEADING KESTEICTED. General rule 6 provides as follows: "The licensee in selling food commodities, shall keep such commodities moving to the consumer in as direct a line as practicable and without unrea- sonable delay. Resales within the same trade without reasonable justification, especially if tending to result in a higher market price to the retailer or con- sumer, will be dealt with as an unfair practice." ,, ^ „ . , ^ The United States Food Administration recognizes the following classes of dealers in fresh eggs: 1. Original packers and shippers. 2. Commission merchants and wholesalers. 3. Jobbers and suppliers of hotels and institutions. 4. Retailers. 756 COLD-STOEAGB LEGlSLATIOlT. All trading in fresh eggs must contribute toward moving the eggs in a direct line to the consumer. Sales between dealers in any one of the classes men- tioned above are prohibited, except as follows : Sales between wholesalers in different cities will for the present be permitted where necessary to supply the reasonable requirements of the buyer's business, provided there is an actual shipment of the goods, and provided the movement between cities is in the direction of normal crop movement from producer to consumer. In addition thereto not more than two sales of any lot of fresh eggs between dealers in class 2 may be made without obtaining the consent of the local Federal food administrator if such sales are necessary to supply the reasonable requirements of the buyer's business, but more than two sales between dealers in class 2 shall not be made without the written consent of the local Federal food admin- istrator. One sale, and only one, between dealers in the same class other than class 2 may be made without obtaining the consent of the local Federal food administrator if such sale is necessary to supply the reasonable requirements of the buyer's business, but more than one such sale shall not be made without the written consent of the local Federal ,food administrator. In no case shall a dealer sell fresh eggs to any dealer in a class further removed from the consumer than the class in which the seller is included ; for example, a jobber shall not sell to a wholesaler, or a retailer to a wholesaler. No objection will be made to sales of fresh eggs between dealers in the same class that are made at a price that is less than or equal to the initial cost to the seller of the particular commodities sold, nor are such sales to be counted as sales between dealers in the same class. Licensees will be expected to find out whether sales are justifiable by obtain- ing information as to the class in which the seller and the buyer are dealing and the location and class of the licensee from whom the seller purchased. This information should be placed on all confirmations of sales. [XIX— A— 1, 2.] XIX. A. SPECIAL REGULATIONS GOVERNING DISTRIBUTORS OF TRESH EGGS. Rule 1. Minimum carload shipments. — ^AU carload shipments of fresh eggs, or mixed carloads of butter, eggs, and poultry, shall be made in car lots of not less than 20,000 pounds from June 1 to September 15, and 24,000 pounds for the remainder of the year, unless a difEerent minimum is authorized by special written permission of the United States Food Administrator: Provided, how- ever, That when cars of lower carrying capacity are used the maximum load which the car will carry may be used without such permission. Rule 2. Hoarding prohibited. — The licensee shall not keep on hand or have in his possession or under control, by contract or other arrangement, a quantity of eggs in excess of the reasonable requirements of his business for use or sale by him for a reasonable time, or in sufficient quantities to fill his reasonable requirements throughout the period of scant or no production. [XIX— A— 1, 2 (a). Dec. 6, 1918. Substitute this for XIX— A— 1, 2.] XIX. A. SPECIAL REGULATIONS GOVERNING DISTRIBUTORS OF FRESH EGGS. Rule 1. Minimum carload shipmentsi. — (Repealed Dec. 5, said repeal to be- come effective Dec. 10, 1918.) Rule 2. Hoarding prohibited. — The licensee shall not keep on hand or have in his possession or under control, by contract or other arrangement, a quantity of eggs in excess of the reasonable requirements of his business for use or sale by him for a reasonable time, or in sufficient quantities to fill his reasonable requirements throughout the period of scant or no production. [XIX— A— 3.] Rule 3. Requirements for containers of eggs. — The licensee shall not ship eggs in quantities of more than 30 dozen except in containers made according to the following specifications without special permission in writing from the United States Food Administration. COLD-STOKAGE LEGISLATION. 757 A. Specifications for cases or carriers. — ■( a) Standard egg cases or carriers shall be made of hardwood of not less than the following dimensions: Sides, top and bottom, three-sixteenths of an inch in thickness ; ends and center par- titions seven-sixteenths of an inch in thickness ; end cleats li by seven-sixteenths of an inch in thickness ; threepenny fine, cement coated, large headed nails, 21 on each side, 21 on bottom and 8 on top; 4 in each end (except where drop cleat cover is used 3 nails in each end will suflSce), ends to be either of 1 piece or 2 pieces cleated ; when 2 end pieces cleated are used 2 nails should be in each end of each piece, nails clinched; center partition to be of not more than 2 pieces, plumb and level with the top of the case; sides, bottom and top to be of not more than 2 pieces each. (6) Double veneered egg cases or carriers where wire staples are used shall be made of double sides and bottoms ; aggregate thickness of sides and bottoms shall be not less than three-sixteenths of an Inch, with wood liners placed be- tween and across the grain of sides and bottoms ; wire staples not to be more than 2i inches apart and shall be driven through sides, bottoms, and liners and securely clinched on opposite side. Ends and center partitions of such cases or carriers shall be not less than one-fourth of an inch in thickness, and re- cessed in walls and sides and bottoms with cleats not less than one-half inch in thickness and li inches wide ; four cement coated nails shall be driven through sides into the ends of each cleat. Tops must not be less than three-sixteenths of an inch thick and eight cement coated nails on top, four on each end. B. Specifications for fillers and cushions for cases or carriers. — (a) All flat dividing boards and tray fillers shall be of hard calendar strawboard weighing not less than 3i pounds to the set, consisting of 10 trays and 12 dividing boards, 1 of which is to be used at bottom and top of each compartment and shall be of sufficient size to fill the compartments to prevent shifting ; and, Cushions shall be placed at the bottom and top of each compartment of egg cases, and shall consist (a) of cork shavings, cut straw or excelsior evenly dis- tributed to a thickness of one-half inch at the bottom of compartment and of sufficient thickness on top to hold contents firmly in place, or (6) corrugated strawboard, or (c) fillers three-fourths inch in depth made of No. 1 filler board, or (a!) packing mats made of excelsior covered with paper, not less than 11 inches square, of uniform thickness, and each weighing not less than 2J ounces, in which case the dividing board will not be required next to eggs on top. (6) Cupped trays shall be of compressed pulp, weighing not less than Zl pounds for each 30-dozen set, consisting of 18 pairs of trays and 4 cushions, and shall completely inclose the eggs on end between lower and upper trays, the eggs being packed on end from the bottom to the top of the egg case ; in- verted trays of 25-cup size shall be used as cushions at top and bottom of each compartment. Note. — Eggs shipped in heavy boxes known as No. 1 cases, shall be packed the same as In the Instance of standard cases or carriers. C. Secondhand cases or corners.— Cases or carriers which have already been used in transportation of eggs and are reused shall be strapped with Iron, wire, or wooden straps on the sides and bottom and at each end. Nora.— This same rule shaU also apply to the shipment of cold-storage eggs. [XIX — B — Definitions.] B— SPECIAL KEGXTLATIONS GOVERNING DISTRIBUTOBS OF COLD-STOEAGE EGGS. Definitions.— In the following rules the different kinds of dealers in cold- storage eggs are defined as follows : (a) An original packer or shipper is a person, firm, corporation, or associa- tion that assembles and packs the eggs for market or storage. (6) A commission merchant is a person, firm, corporation, or association that solicits for sale or receives for sale and sells food products on a commision basis, or that acts as agent or representative of shippers, packers, and other dis- tributors in the marketing of food products for a fixed package charge or on a pcrcGntfisfG b&sls (c) A wholesaler is a person, firm, corporation, or association, other than the original packer or shipper, that sells to jobbers or to supphers of hotels ((i')"V Jobber' is a person, firm, corporation, or association that sells or dis- tributes to retailers. 758 COLD-STOEAGE LEGISLATION. (e) A supplier of hotels and Institutions is a person, firm, corporation, or association that sells to hotels, restaurants, clubs, dining-car or steamship com- panies, public or private institutions, or to retail dealers requiring specially selected stock and being furnished a service similar to that rendered to hotels and institutions. (f) A retailer is a person, firm, corporation, or association that sells or dis- tributes to consumers. (fir) The original storer is the person, firm, corporation, or association that owns eggs when first placed in a cold-storage warehouse. Note. — (1) Where a licensee sells eggs within 30 days from the date of origi- nal storage, the buyer may also be considered the original storer to the extent that he may add to the maximum advance over cost allowed in selling as a wholesaler, jobber, etc., any part of 6 per cent over the first storer's cost not added by the first storer. In such cases the first storer who sells within 30 day must inform the buyer what portion of 6 per cent over his cost he has added. (2) Where a definite lot of eggs is sold before it is placed in cold-storage warehouse, and if title to this lot actually passes to the purchaser, or if title is retained by the seller merely as security for the purchase price, and there- after the eggs are put in the warehouse, the purchaser will be considered the original storer even though the eggs are carried and insured in the seller's name. [XIX — B — Definitions, continued.] Wherever in the following rules dealers in cold-storage eggs are limited in the advance over cost at which such eggs may be sold, " cost " shall be con- strued to include the purchase price, or in the case of the original packer or shipper the cost into storage, plus storage charges, interest on the goods in storage, and insurance on goods in stoi-age incurred by the seller up to the time of sale, but not to Include any other expenses, except as hereinafter provided in the case of candled eggs. In selling eggs candled by the licensee the actual net candling loss may bp included in the cost, but the expense of labor and materials in candling and all repacking expenses shall not be included. In determining cost licensees may average the cost of all lots of cold-storage eggs of the same grade which were originally stored in the same month and which have not already been contracted to be sold, and may take such average cost as the cost of any particular lot. The licensee must keep a record of the manner in which such average had been arrived at and shall take as the cost of all stock remaining on hand from lots already averaged the average cost previously arrived at. If the cost of any cold-storage eggs is averaged, the cost of all cold-storage eggs, must be averaged. Note. — (1) The maximum advances over cost specified in the following rules are not to be regarded as normal or so recognized by the Food Administration. They are intended only to prevent speculation and are purposely made wide to cover cases where the methods of doing business are more expensive, to the extent that such methods are justified. These maximum advances must not be exceeded In selling any specified lot of eggs, and the average advance over cost charged by any dealer must not be more than sufficient to return to him a reasonable profit on his Investment in accordance with general rule 5, which is as follows : " The licensee shall not import, manufacture, store, distribute, sell, or otherwise handle any food commodities on an unjust, exorbitant, un- reasonable, discriminatory, or unfair commission, profit, or storage charge." (2) The special rules regulating the profits of dealers in cold-storage eggs do not apply to eggs that are placed in a cold-storage warehouse, but which are removed from the cold-storage warehouse for distribution for consumption within thirty (30) days after the date of the original entry of such eggs into the cold-storage warehouse. (3) Profits on different sales can not be averaged. The licensee is limited on each transaction to the maximum profit permitted by the rules and regula- tions. (4) Where a dealer in the sale of cold-storage eggs adds less than the maxi- mum advance over cost permitted by the rules, the buyer is not because of this fact permitted to add to the maximum advance over cost allowed to him any part of the maximum advance allowed to the seller which the seller did not add. COLD-STORAGE LEGISLATION. 759 [XIX— B—1, 2, 3.] » REGTTLATIONS. Rule 1. Purchase from dealer charging vnrea sonaUe margin prohiUted. — No licensee shall knowingly purchase cold-storage eggs from a dealer who sells at a greater advance ovei- cost than the maximum specified in the following rules : BiTLE 2. Maximum margins for original packer or shipper. — The original packer or shipper, storing in a cold-storage warehouse, shall not sell cold- storage eggs to wholesalers at an advance of more than 6 per cent over cost. In case cold-storage eggs are stored in the name of a commission merchant, the original storer shall be deemed to be the consignor for whom the commission merchant acts as agent. An additional advance not exceeding 4 per cent of cost may be charged by the original packer or shipper in selling eggs at mark or 7 per cent over cost in selling eggs candled by him to jobbers or suppliers of hotels and institutions. An additional advance may be charged in selling to retailers not exceeding 5 per cent of cost if sold at mark (1. e., in original packages), and not exceeding 10 per cent of cost in selling eggs candled by him. An additional advance not exceeding 12 per cent of cost may be charged if the original packer performs the functions of a supplier of hotels and institutions, as heretofore defined. RtTLE 3. Maximum commissions. — A commission merchant shall not receive a commission of more than 4 per cent on cold-storage eggs consigned to him. The selling price of cold-storage eggs sold through a commission merchant shall not exceed the maximum advance over cost permitted to the consignor by these rules, which advance shall include the commission for the sale. A commission merchant who takes to account consigned cold-storage eggs shall not receive any other profit beyond the amount of the commission before spe- cified. A commission merchant shall require from consignors a statement of cost of goods and maximum selling price allowable under these rules. IXIX— B — 4, 5, 6, 7, 8.] Rule 4. Maximum margin for wholesaler. — A wholesaler shall not sell cold- storage eggs at mark at an advance of more than 4 per cent over cost or 7 per cent over cost if he candles the eggs. If a wholesaler also sells as a jobber he shall not sell eggs at mark at an advance of more than 5 per cent over cost or eggs candled by him at more than 10 per cent over cost as provided for jobbers in rules 5 and 6. The above maximum advances may be increased by not to exceed 6 per cent of cost, in cases where the wholesaler Is also the original storer in a cold-storage warehouse. , . uu Rule 5 Maximum margin for jobber of cold-storage eggs at mark. — A jobber shall not sell cold-storage eggs at mark (1. e., in original packages) at an advance of more than 5 per cent over cost. . . ^, », n * Rule 6. Maxirrvum margin, for jobber of candled eggs.— A jobber shall not sell eggs candled by him at an advance of more than 10 per cent over cost. The maximum advance prescribed in rules 5 and 6 may be mcreased by not to exceed 6 per cent of cost in cases where the jobber is also the origmal storer in a '^°B,m^T7%a(Hmum margin for supplier of hotels and intsitutions.—A supplier of hotels and institutions shall not sell eggs candled and selected by him at more than 12 per cent over cost. This maximum advance may be mcreased by not to exceed 6 per cent of cost in cases where the supplier of hotels and insti- tutions is also the original storer in a cold-storage warehouse. Rule 8 Maximum margin for retailer stormg eggs during 1918.— A retailer whoTtheSnalstorer'^of eggs during 1918 shall not sell such eggs candled and selected by him at an advance of more than 21 per cent over cost Note.— Maximum margins for retailers on all sales of eggs other than those above specified will be announced separately. [XIX— B— 9, 10.] RULE 9. Direct me of distribution defined -A fl^/y any dealer in coW- storage eggs in any of the classes indicated below to f dealer in any succeed ing class shall be considered to be in the direct line of distiibution . Class 1. Original packers and shippers. ' Class 2. Commission merchants— wholesalers. 760 COLD-STORAGE LEGISLATION. Class 3. Jobbers— suppliers of hotels and institutions. Class 4. Retailers — hotels and institutions. Rule 10. Intertraddng restricted. — All trading in cold-storage eggs shall serve to move the cold-storage eggs in the direct line of distribution to the consumer and nothing contained in this or the preceding rule shall authorize any licensee to use any more indirect method of distribution than he has been accustomed to use in the past in the distribution of eggs. One sale of any lot of cold- storage eggs between dealers in the same class may be made where necessary to supply the reasonable requirements of the buyer's business. Such sales shall be made at an advance of not more than 2 per cent over cost, except when sold by a wholesaler or jobber who is also the original storer who shall sell at not more than 6 per cent over cost. Where a dealer buys cold-storage eggs from another dealer in the same class other than the original storer he must sell the eggs so bought at not more than the maximum advances over cost specified in the above rules minus 2 per cent. A licensee who does business both as a wholesaler and jobber may buy as a jobber with the intention of reselling to a retailer or of making the one permissible resale to other jobbers, or to sup- pliers of hotels or institutions. Except for such sales no licensee shall sell to another in the same or any preceding class of distribution without the written consent of the local Federal food administrator, which will be given only in extraordinary circumstances. Where such consent is given the dealer shall not sell at an advance of more than 10 cents per case over cost, nor in the case of a commission merchant selling to a wholesaler shall the commission amount to more than 10 cents per case: Provided, however, That nothing in this rule shall prevent sales for im- mediate delivery from one city to another for actual distribution to relieve exceptional local shortage, but a report of any such sale must be promptly made to the local Federal food administrator, with the reasons therefor. Such sales shall be made at a price not to exceed 4 per cent over cost. Note. — Licensees will be expected to find out whether sales are justifiable by obtaining information as to the class in which the seller and the buyer are dealing and the location and class of the licensee from whom the seller pur- chased. This information should be placed on all confirmations of sales. [XIX— B— 11, 12, 13, 14.] Rui^ 11. Brokerage to be included in margins. — If brokers act as agents in any sale of cold-storage eggs under these rules brokerage paid shall not be added to the selling price of the goods. Rule 12. Minimum carload shipments. — ^AU carload shipments of eggs, or mixed carloads of butter, eggs, and poultry, shall be made in car lots of not less than 20,000 pounds from June 1 to September 15, and 24,000 pounds for the remainder of the year, unless a diiferent minimum is authorized by special written permission of the United States Food Administrator : Provided, how- ever, That when cars of lower carrying capacity are used the maximum load which the car will carry may be used without such permission. Rule 13. Hoarding prohibited. — The licensee shall not keep on hand or have in his possession or under control, by contract or other arrangement, a quantity of eggs in excess of the reasonable requirements of his business for use or sale by him for a reasonable time, or in sufficient quantities to fill his reasonable re- quirements throughout the period of scant or no production. Note. — Under this rule eggs must in no case be kept in storage beyond March 1. Licensees engaged in business as cold-storage warehousemen will be required to provide necessary information. Dealers may be required to make special monthly storage reports, giving the necessary data covering transactions ill cold-storage eggs in accordance with the foregoing rules. Rule 14. Cold-storage eggs to he so marked. — No licensee shall sell or offer for sale eggs which have been held for a period of 30 days or over in a cold- storage warehouse unless such commodities are plainly marked, stamped, or tagged, either upon the container wherein packed or upon the article of food Itself, with the words " Cold storage." The licensee shall keep such mark, stamp, or tag in plain view, and shall not represent or advertise as fresh any such eggs ; and if he is a retailer, shall display a placard plainly and conspicu- ously marked " Cold-storage goods " on the bulk, mass, or articles of food. Any invoice or bill rendered for such goods shall clearly describe the commodities, using the words " Cold-storage goods." COLD-STOEAGE LEGISLATION. 761 [XIX— B— 11, 12, 13, 14 (a). Dec. 6, 1918. Substitute this for XIX— B— 11, 12. 13, 14.] Rule 11. Brokerage to be included in margins. — If brokers act as agents in any sale of cold-storage eggs under these rules brokerage paid shall not be added to the selling price of the goods. EuLE 12. Minimum carload shipments. — (Repealed Dec. 5, said repeal to become effective Dec. 10, 1918.) Rule 13. Hoarding prohibited.— The licensee shall not keep on hand or have in his possession or under control, by contract or other arrangement, a quantity of eggs in excess of the reasonable requirements of his business for use or sale by him for a reasonable time, or in sufficient quantities to fill his reasonable re- quirements throughout the period of scant or no production. Note. — Under this rule eggs must in no case be kept in storage beyond March 1. Licensees engaged in business as cold-storage warehousemen will be required to provide necessary information. Dealers may be required to make special monthly storage reports giving the necessary data covering transactions in cold-storage eggs in accordance with the foregoing rules. Rule 14. Cold-storage eggs to be so marked. — No licensee shall sell or ofEer for sale eggs which have been held for a period of 30 days or over in a cold- storage warehouse unless such commodities are plainly marked, stamped, or tagged, either upon the container wherein packed or upon the article of food itself, with the words "Cold storage." The licensee shall keep such mark, stamp, or tag in plain view, and shall not represent or advertise as fresh any such eggs ; and if he is a retailer, shall display a placard plainly and conspicu- ously marked "Cold-storage goods" on the bulk, mass, or articles of food. Any invoice or bill rendered for such goods shall clearly describe the commodities, using the words "Cold-storage goods." [XIX— B— 15, 16, 17.] Rule 15. Cold-Storage markings not to be removed. — No licensee shall re- move or erase or permit to be removed or erased any' mark, stamp, or tag bear- ing the words " Cold storage " or other words required by these rules and regu- lations to be placed on any food commodities or upon the containers wherein they are packed, unless the eggs so marked, stamped, or tagged were delivered from the cold-storage warehouse where originally stored within 30 days after they were stored and were not again put in a cold-storage warehouse. When any food commodities are transferred from a container bearing the words " Cold storage," or such food commodities are divided into smaller lots or units, the words " Cold storage," shall be plainly and conspicuously marked upon the containers, cartons, packages, or wrappers to which they are transferred. Rur-E 16. Certificate of value to be furrdshed to cold-storage warehousemen. — The licensee storing eggs with a cold-storage warehouseman upon which the warehouseman either directly or indirectly loans money shall upon request of such warehouseman file with him a certificate stating the market value of the goods stored and shall make no false or misleading statement in such cer- tificate nor shall he fail to maintain the margin required by the regulations of the Food Administration on loans made by cold-storage warehousemen. Rui,E 17. Specifications for containers. — ^Rule 3 of XIX — A, governing dis- tributors of fresh eggs, shall also apply to distributors of cold-storage eggs. [XIX— C—l, 2, 3.] C. ADDITIONAL REGULATIONS GOVERNING COMMISSION MERCHANTS, BROKERS, AND AUCTIONEERS DEALING IN EGGS. Rule 1 Commission or brokerage not to be unreasonable or discriminatory.— The licensee shall not charge, directly or indirectly, an unjust,, exorbitant, unreasonable, discriminating or unfair commission or brokerage on the sale of GSSfS Note.'— The Food Administration in enforcing this rule will Insist that any proposed increase in rates be submitted to the local Federal food admin- istrator and that the reason for any increased rate over the prewar normal be justified to him, subject to the general supervision of the United States I ood Administration before such increased rates are put into effect. The rates to be charged by a commission merchant are more specmcaiiy treated under B, rule 3, supra. 762 COLD-STORAGE LEGISLATION. Rule 2. Prompt remittance and proper account sales to ie rendered. — The licensee shall remit promptly follo\ying the sale of eggs received on consignment for sale or distribution and shall render to the consignor an account showing the true sales and with charges only for services actually performed and ex- penses actually incurred by the licensee. Note. — Where a commission merchant receives a consignment of poultry or eggs and guaranties to the consignor a definite selling price, he must show on the account sales the actual price at which the goods are sold, together with services actually performed and expenses actually incurred, and as a separate item must show any sum paid to the consignor by reason of the commission merchant's contract of guaranty. Failure to do this will be considered a violation of the above rule governing commission merchants and also a mis- statement of the price at which commodities are being sold in violation of general rule 19. Rule 3. Agent not to tmy from principal unless noted on account of sales. — • The licensee shall not, directly or indirectly, sell consigned eggs or eggs with the sale of which on commission he is intrusted, to himself or to anyone con- nected with his business, unless he notes the facts of such transaction on the account of sales. Note. — This rule is not intended to relieve the licensee from any legal obliga- tion resting on him to obtain authorization from the shipper before taking to account goods consigned to him or to obtain thf ratification of such a trans- action. [XIX— D—1.] D. ADDITIONAL SPECIAL REGULATIONS GOVERNING BETAILEES OF EGGS. Rule 1. Fresh or cold-storage eggs must not 6e sold at retail at more than reasonable advance over cost. — The licensee shall not sell fresh or cold-storage eggs at retail at more than a reasonable advance over cost without regard to the market or replacement value at the time of the sale. Cost shall include purchase price and transportation charges, and where the retailer actually candles and grades eggs he may include in the cost the actual loss from such candling and grading. In the case of cold-storage eggs cost shall include the following additional items: 1. Storage charges actually incurred. 2. Insurance charges actually incurred. 3. Interest on money invested at the current rate while eggs are in storage. The licensee may average the cost of all lots of eggs of the same grade (and in the case, of cold-storage eggs, all eggs of the same grade which were originally stored in the same month) in his possession at the point from which the sale is made which have not already been contracted to be sold, and may take such average cost as the cost of any particular lot. When new lots are added and a new average calculated the licensee shall include in the new averaging all stock remaining on hand from lots already averaged at the average cost previously determined. If the cost of any eggs is averaged, the cost of all eggs must be averaged. When costs are averaged the licensee must keep a record of the manner in which such average has been arrived at. Note. — The retail section of the Distribution of Perishables of the United States Food Administration has determined that any advance over cost in excess of 7 cents to 8 cents a dozen is unreasonable and will be considered evidence of violation of the above rule. The 7 cents per dozen represents the maximum for stores conducting the cash- and-carry or no-service plan, while the 8 cents per dozen is the maximum margin for the extra service stores extending credit and delivery. Retailer may have benefit of fractional cost on any transaction. — ^Retailers whose delivered terminal costs figure in fractions may have the benefit of such fractional costs. For example, if eggs cost at terminal delivery 46i cents per dozen, the selling price may be figured as follows : COLD-STORAGE LEGISLATION. Cash-and-carry stores. 763 Cost. Margin. Total. Fraction added. Maximum selling price. Amount of sale: Cents. 138J Cents. 7 U 21 Cents. 53} 106i 169? Cents. $0.54 2 dozen . 1.07 3 dozen 1.60 The maximum selling price for the extra service or credit and delivery stores would be 1 cent per dozen higher. In determining margins at 7 cents and 8 cents per dozen on eggs, with the fractional cost In the dealer's favor, the United States Pood Administration has given due consideration to the rising costs of operation which must be met by the dealet. Margin for retailer who stored eggs during 1918. — The attention of any retailer who was the original storer of eggs during the season of 1918 is called to the fact that he is still governed by rule 8 of the special regulations governing distributors of cold-storage eggs in respect to transactions in these eggs. [XIX, supplement.] SUPPLEMENT. To licensees loho are receivers of poultry or eggs (butter and other produce) on consignment or as purchasers: A licensee in receiving goods shipped in to him acts in one of two capaci- ties either as an agent of the shipper in selling commodities or as a pur- chaser of the commodities from the shipper. Some licensees are engaged in both forms of business and confusion has arisen in the minds of shippers as to exactly how their shipments are to be handled. Licensees should be guided by the fol' owing principles : . ^ ., (1) If the licensee acts as an agent for the shipper in disposing of goods he must render an account sales showing the sales made for the account of the shipper the amount deducted by him for compensation, and any other charges In some eases it is the practice for commission merchants to take to their own account goods which are consigned to them as agents. Where an agent so takes to account this fact is required to be noted on the account sales by the regulations of the Food Administration. The shipper wiU then know the nature of the transaction. This requirement is in addition to any obliga- tion at common law resting on the receiver to obtain the consent of the shipper to such a transaction. Licensees who handle commodities for shippers for a certain compensation, even though not expressed in terms of percentage or called a commission, are none the less commission merchants, and must com- nlv with the regulations governing commission merchants. (2) If the ifensee is not acting as agent for the shipper and the intention is that the licensee shall purchase from the shipper, this matter should be clear to the shipper as well as the receiver of the commodities. The use of expressions by the receiver in connection with such a transaction which would rSJi the shipper to believe that the receiver is acting as an agent for the '''^^c^sS'^fln!c!''LZl''merent arrangements as to price, more com- X) T^T:ecei^:Sr:^t!^.7tL shipper a definite price upon arrival. (6) The rSer afrles to pay the shipper a price having a definite relation to the market price on the day of arrival. [XIX, supplement continued.] (c) The receiver agrees to pay the shipper a price to be determined by the Tr aTreei^e-S^ fre^TJ^^^prohibited by ^^^^^ooa ^^^^^^on^ ^In t^e third casi (0) it ll^'-^^^f^Sr'^^^nt'^T^e Llon'a irundei- 'aVtfe l^^sr.^^'^T'^^n ^!JTTover1eluon to the market value. The 137690—19 49 764 COLD-STORAGE LEGISLATION. Food Administration will so construe such agreements and the parties should so understand them. Where a dealer is handling commodities in several different ways the only method of making clear the nature of any particular transaction is a written or oral definite understanding. Cases, howevei;, have been called to our atten- tion where a licensee never does any commission business, always purchases shipments at a net price, and where the receiver is constantly receiving ship- ments from shippers with whom he has never had any prior negotiations. In such cases the nature of the business may be entirely clear to the shipper without a definite written agreement. The buyer should show by a memoran- dum of purchase exactly what the nature of the transaction is, including the purchase price and any deductions permitted by the contract of purchase, and he must not use any expression which will lead the shipper to believe that the transaction is an agency transaction. In order to avoid misleading state- ments, the Food Administration has insisted that the licensee shall discon- tinue the use of the term " net return basis " to describe purchases. " Net return basis " implies that there is a gross return and that something has been deducted to reach a net return. It is an expression applicable to an agency transaction and not to a purchase. Exhibit Z. [XX— Title.] UNITED STATES FOOD ADMINISTRATION. SPECIAL LICENSE REGU- LATIONS. NO. XX.— MANUFACTURERS AND DISTRIBUTORS OF BUTTER. (Effective Dec. 23, 1918.) This series contains all special regulations applying to the above licensees, issued up to December 23, 1918. Such licensees are also subject to General Regulations No. 1, dated May 3, 1918, which, together with this series super- sede, as to the above licensees, all regulations of series B on December 23, 1918. [XX— A— -1.] No. XX. A. SPECIAL EEGULATIONS GOVERNING MANUFACTUEEKS AND DISTEIBUTOES OF BUTTER. Rule 1. Butter to be sold at reasonalile advance over cost. — The licensee dealing in butter shall sell such butter without regard to the market or replace- ment value at the time of sale at not more than a reasonable advance over cost to him of the particular butter sold: Provided, That the licensee may average by weight (and in the case of cold-storage butter by the month in which it was originally stored) the cost of all butter of the same grade which has not already been contracted to be sold. The licensee shall keep a record of the manner in which such average has been determined. When new lots are added and a new average calculated the licensee shall include in the new aver- age all stock remaining on hand of lots already averaged at the average cost previously determined. If the cost of any butter is averaged, the cost of all butter must be averaged. Cost for the purpose of tliis rule shall include : 1. Purchase price. 2. Transportation charges, if any (not including drayage). 3. Storage charges actually Incurred on cold-storage butter. 4. Insurance charges actually incurred on cold-storage butter. 5. Interest on money invested at the current rate, while butter is in cold storage. 6. Actual cost of printing if the butter is put in print form from tubs or cubes. Cost shall not include any allowance for shrinkage in weight, commissions, expenses of breaking packages and repackina. or other expenses than those herein listed COLD-STOEAGE LEGISLATION. 765 Note. — In any case where a licensee owns his own cold-storage warehouse in which butter owned by him is stored more than 80 days, he may include in his calculation of cost a charge for warehousing equal to that ordinarily paid to a public warehouse for similar services. Reports to be fxirnished on demand. — The licensee must be prepared to fur- nish to the United States Food Administration or to the Federal food adminis- trator of his State, upon demand, a full report on costs and margins charged or on the maximum prices charged in any given period for any grade of butter or any other information which may be considered necessary for the purpose of this rule. [XX — A— 1— Continued (1).] i , .^ s Maximum margins.— ^The Food Administration will ronsiucr the sale of any grade of butter by any dealer other than a manufacturer or retailer at an ad- vance over cost, as hereinbefore defined, of more than the following margins as prima facie evidence of a violation of the food-control act and the above rule : (a) 1 cent per pound on car-lot sales. (6) IJ cents per pound on sales less than a car lot but amounting to 7,000 pounds or more. (c) 2 cents per pound on sales of less than 7,000 pounds but amounting to 3,500 pounds or more. (d) 2i cents per pound on sales of less than 3,500 pounds but amounting to 700 pounds or more. (e) 8 cents per pound on sales less than 700 pounds but amounting to 100 pounds or more. if) 3i cents per pound on sales of less than 100 pounds. In addition to the selling margin which normally should be considerably be- low the above maximum margins, and must in no case exceed such maximum margins, any dealer who carries butter in cold storage more than two full calen- dar months may add a margin of not more than 1 cent per pound, and an addi- tional one-fourth cent per pound for each calendar month thereafter during which he carries the butter in storage. The total margin for carrying butter in cold storage shall not exceed 2 cents per pound. The following table indicates the method by which the dealer may calculate the maximum amounts which may be added to selling margins where a dealer holds butter in storage more than two full calendar months. It should be noted that a calendar month does not mean 30 days. Month in which the dealer stores the butter or purchases the butter while in storage. May. June. July. Aug. Sept. Oct. Nov. Deo. Jan. Feb. Mar. Apr. August - . . 1 1 IJ 2 2 2 2 2 2 2 2 1 1\ 11 2 2 2 2 2 2 2 October 1| 2 2 2 2 2 2 1 H li n 2 2 2 2 2 December 1 P 2 2 2 January 1 li r 2 1 1+ li If 2 2 March 1 1 X\ 11 Mav 1 H li 1 li July 1 Note.— The months m the column at the left Indicate months m which the butter is sold. The figures indicate cents per pound. For example, a dealer storing butter in Jime and sellmg it in Oetober any add 11 cents per pound to his selling margin which must m no case exceed the margins indi- cated under rule 1. [XX — A— I — Continued (2).] The above maximum margins are not to be regarded as fair normal margins or as so recognized by the Food Administration. They are intended to pre- vent speculation and are purposely made wide enough to cover case.s where the methods of doing business are more expensive, to the extent that such methods are justified. These maximum advances must not be exceeded in selling any lot of butter and the prices charged by any dealer must not in any case be more than sufficient to return to him a reasonable profit on his investment. 766 COLD-STORAGE LEGISLATION. Licensees will be expected to sell butter in usual quantities to cu tomers and where it appears that sale" are being made in smaller quantities than customarily for the purpose of charging larger margins than would be proper on larger sales such larger margins will not be considered justifiable. Larger margins are only proper for sales of smaller quantities where selling in small quantities is the usual course of business involving a greater expense in operation. Where a licensee contracts to sell a quantity of butter to be delivered in smaller quantities at future dates the dealer must be guided by the maximum margins indicated for sales of the quantity contracted to be sold and not for sales of the amount of any delivery. Sales from hrancU houses. — Where butter is transferred by any dealer to a branch house of such dealer in the same or another city such tranffer shall not be made at an advance over cost of more than three-fourths of a cent per pound, regardless of quantity. In such case, however, when the trans- action is in as direct a line of distribution as practicable the branch hou' e may figTire the transfer price as its purchase price and may sell butter at an advance over cost on such basis not greater than the mximum margins in- dicated above. If the branch house transfers the butter to another branch house of the same dealer the total maximum margin added by both houses shall not be greater than the maximum margin allowed to the first branch house by this rule. Collusive sales. — Any sale by a dealer to another dealer at a price higher than the price which the second dealer would have to pay in buying on the open market will be considered evidence of a collu'^lve sale intended to de- feat the purpose of rule 1 by increasing the purchaser's cost and the price which he may charge upon a rising market. [XX— A— 2.1 Rule 2. Manufacturers' margins. — The manufacturer of butter fhall not sell butter at an advance over the cost of butter fat necessary to produce a pound of butter, of more than 5 cents per pound of butter, except on fales through branch houses or sales to retailers in less than car lots as herein- after provided. Example. — If the cost of butter fat as defined below is 50 cents per pound, and 8 pounds of butter fat are necessary to produce 10 pounds of butter, " the cost of butter fat necessary to produce the butter" would be 40 cents per pound of butter and the maximum selling price for manufacturers as above provided would be 45 cents per pound. The above gross margins must not be exceeded on the average in any period of two months, beginning December 1, February 1, April 1, June 1, August 1, October 1. Cost of butter fat defined. — The cost of butter fat necessary to produce a pound of butter shall include: (1) The actual price paid to th^ producers of butter fat. (2) The actual cost of station buying labor, or commission, and all other buying expenses, but in no case shall the manufacturer pay more than 3i cents per pound butter fat for such labor, commissions, and all other buying expenses, except that the manufacturer is permitted to exceed said Si cents maximum provided that the amount by which the maximum is exceeded shall be deducted from manufacturer's margin. (3) The actual transportation expenses for carrying cream to the factory door. Note. — The selling price shall mean the selling price f. o. b. factory door. Labor and package allowance. — In case the manufacturer packs butter in units of less than 50 pounds the actual additional coi^t of labor and packages in such packing in excess of the cost of labor and package for putting up in 50-pound packages may be added to the gro=^s margins indicated above, when the sales are made to wholesalers or to retailers in car lots. Margins on sales to retailers or through branch houses. — (a) Where the manufacturer sells to retailers in less than car lots he may add to the manu- facturing margin not more than the margins indicated in rule 1. [ XX — A — 2 — Continued. ] (6) Where the manufacturer operates or controls a branch house in which butter is actually physically handled he shall transfer his butter from the COLD-STOEAGB LEGISLATION. 767 manufacturing plant at not more than the margins indicated for manufac- turers, and the branch house shall be governed by the margins indicated in rule 1. Manufacturers' ■■maryin on cold-storage 6M/«fr.— Where the manufacturer places butter in cold storage he shall consider his cost into storage as not more than the selling price permitted to him as a manufacturer by this rule at the time the butter goes into storage. In selling such cold-storage butter he will be permitted to add to the cost into storage the storage charges actually incurred, the insurance charges actually Incurred, and the interest on money invested at the current rate while the butter is in storage; and shall not sell such butter at an advance over cost so determined of more than the margins indicated in rule 1. Note.— Butter placed in storage prior to issuance of this amended rule is governed by rule 2, as issued September 19, 1918, which provided as follows: Rule 2. Manufacturers who perform services of wholesaler or jobber. Any manufacturer who acts as a wholesaler or jobber shall be subject in such action to the rules and maximum margins governing wholesalers and jobbers, provided that in figuring his purchase price as a wholesaler or jobber he shall— 1. Compute the cost of raw materials and the expense of manufacture, or 2. In the case of cold-storage butter consider as his cost the market quo- tation on the kind and grade of butter placed in cold storage as quoted in a well-recognized daily commercial price current in the city where and on the day when the goods are placed in storage. In case there is no well-recognized daily price current in the city where the goods are stored then he may use the quotation given in a daily commercial price current in the large marKei, nearest the place of storage. From this must be deducted the amount by which the freight from the point of manufacture to the place of storage is less than the freight from the place of manufacture to such large market. In case the freight from the place of manufacture to the place of storage exceeds the freight from the place of manufacture to such large market, the excess may be added to the market quotation. Dealer in butter fat to recei-ve no more than producer under same circum- stances. — The manufacturer shall not pay to any dealer in butter fat a greater price than he pays to the producer who Is a direct shipper, performing similar service, and in no case shall the price paid by the manufacturer to the dealer exceed 2 cents per pound butter fat above the price paid by the dealer to the producer of the butter fat. Note.— -The Food Administration does not recognize 5 cents per pound ot butter as a normal, reasonable manufacturing margin. This is a maximum margin to cover the most expensive legitimate method of operation and to provide for the risks of fluctuating markets. Note. — This amended rule became effective December 12, 1918. [XX— A — 3, 4.] Rule 3. Commissions limited. — No licensee shall pay and no commission merchant shall receive a commission on butter of more than the following: The licensee shall inform any commission merchant selling butter for him ot the maximum permitted price at which such butter may be sold. A. Fresh butter: 1. Car-lot sales, f cent per pound. ,2. Sales of less than car lots, but amounting to 7,000 pounds or more, li cents per pound. 3. Sales of less than 7,000 pounds, U cents per pound. B. Cold-storage butter: 1. Car-lot sales, f cent per pound. 2. Sales of less than car lots, 1 cent per pound. Rule 4. Intertrading restricted.— The licensee in selling butter shall keep it moving to the consumer In as direct a line as practicable and without un- reasonable delay. The direct line of distribution of butter Is from a licensee in any of the following classes to a licensee in any succeeding class : Class 1. Manufacturers. , „ « „„ „„,. Class 2. Wholesalers and jobbers. These Include all persons, firms, coi- porations, and associations who distribute butter in any way except at retail and all manufacturers who perform services customarily performed by whole- salers and jobbers. . Class 3. Retailers, hotels, restaurants, and institutions. 768 COLD-STOEAGE LEGISLATION, Note. — Any transactions that savor of dealing in wliich a profit accrues to the dealer without corresponding service, are clear violations of the rule and will subject the offender to revocation of his license and to such other penalty as the law provides. The following types of sales between dealers will be considered justifiable, but sales other than those described between dealers in the same class will be considered as prima facie evidence of violation of general rule 6: A. A sale by any dealer in butter to a dealer in any succeeding class will be considered as in the direct line of distribution. [XX— A — 4— Continued (5).] B. One sale and only one sale of the same goods between dealers in class 2 in the same city will be considered justifiable when necessary to supply the reason- able requirements of the buyer's business, without the special consent of the local Federal food administrator, provided, however, that a second sale of the same goods between dealers in class, 2 in the same city will be permitted without the consent of the local Federal food administrator if this sale is made at an advance over cost of not more than one-half of the margins indicated above,, and provided that the seller notifies the buyer that this is a second sale. C. In addition to such resales as are otherwise indicated as justifiable, sales between dealers in class 2 in different cities will be considered justifiable, pro- vided, that an actual delivery of the butter follows the sale, and that the ship- ment is for the purpose of obtaining supplies from primary markets for reason- able requirements of the purchaser's business ; provided further, that not more than three such sales of any lot of butter between dealers in class 2 shall be made without special permission ; and the third sale shall be made at an ad- vance over cost of not more than one-half of the above margins. D. Any resale between dealers without any advance over cost will be con- sidered as justifiable in addition to such other resales as are permitted. Rule 5. The licensee making second sale in same class to notify buyer. — The licensee in class 2 ,as defined above who purchases butter from another whole- saler or jobber in such class or from a manufacturer performing the services of a wholesaler or jobber and who resells to another dealer in class 2, shall notify such dealer of the prior sales of such butter within that class of which he has knowledge. Note. — This information should be disclosed at the time of the transaction and should be placed by the seller upon the invoice in order that there shall be a permanent record. [XX — A— 6, 7, 8, 9.1 Rule 6. Cold storage butter to be so marked. — No licensee shall sell or offer for sale butter which has been held for a period of 30 days or over in a cold- storage warehouse unless such butter is plainly marked, stamped, or tagged, either upon the container wherein packed or upon the article of food itself, with the words " Cold storage." The licensee shall keep such mark, stamp, or tag in plain view and shall not represent or advertise as fresh any such com- modities ; and, if he is a retailer, shall display a placard plainly and con- spicuously marked " Cold storage goods " on the bulk mass or articles of food. Any invoice or bill rendered for such goods shall clearly describe the com- modities, using the words " Cold storage goods." Rule 7. Marking not to be removed. — No licensee shall remove or erase or permit to be removpd or erased any mark, stamp, or tag bearing the , words " Cold storage " or other words required by these regulations to be placed on any food commodities or upon the containers wherein they are packed. When any food commodities are transferred from a container bearing the words " Cold storage " or such food commodities are divided into smaller lots or units, the Avords " Cold storage " shall be plainly and conspicuously marked upon the containers, cartons, packages, or wrappers to which they are transferred. Rule S (repealed Dec. 5; repeal to be effective Dec. 10). iLiniiniim carload shipments. — All carload shipments of butter or mixed carloads of biitter, eggs. and poultry shall be made in car lots of not less than the amount prescribed below unless a different minimum is authorized by special written permission of the United States Food Administrator: Provided, however, That when cars of lower carrying capacity are used the maximum load which the car will carry may be used without such permission. Butter, 24,000 pounds. COLD-STOKAGE LEGISLATION. 769 Mixed carloads of butter, eggs, and poultry, 20,000 pounds from June 1 to September 15 ; 24,000 pounds remainder of the year. Rule 9. Hoarding proMUted. — The licensee shall not keep on hand or have in his possession or under control by contract or other arrangement a quantity of butter in excess of the reasonable requirements of his business for use or sale by him for a reasonable time, or a quantity more than sufficient to fill his reasonable requirements throughout the period of scant or no production. [XX— B— 1, 2, 3.] B. ADDITIONAL KEGTILATIONS GOVERNING BROKERS, COMMISSION MERCHANTS, AND AUCTIONEERS DEALING EITHER IN FRESH OK COLD-STORAGE BUTTER. Rule 1. Commission or brokerage not to be unreasonable or discriminatory. — The licensee shall not charge, directly or indirectly, an unjust, exorbitant, un- reasonable, discriminatory or unfair commission or brokerage on the sale of but'ter. Note. — The Food Administration In enforcing this rule will insist that any proposed increase in rates be submitted to the local Federal Food Administra- tor, and that the reason for any. increased rate over the prewar normal be justified to him, subject to the general supervision of the United States Food Administration before such Increased rates are put into effect. The rates to be charged by a commission merchant are more specifically treated under A, rule 3, supra. Rule 2. Prompt remittance and proper account sales to be rendered. — The licensee shall remit promptly following the sale of butter received on con- signment for sale or distribution, and shall render to the consignor an account showing the true sales and with charges only for services actually performed and expenses actually incurred by the licensee. Note. — Where a commission merchant receives a consignment of butter and guarantees to the consignor a definite selling price, he must show on the account sales the actual price at which the goods are sold, together with services actually performed and expenses actually incurred, and as a separate item must show any sum paid to the consignor by reason of the commission mer- chant's contract of guaranty. Failure to do this will be considered a viola- tion of the above rule governing commission merchants and also a misstatement of the price at which commodities are being sold in violation of general rule 19. Rule 3. Agent not to buy from principal unless noted on account of sales. — The licensee shall not, directly or indirectly, sell consigned butter, or butter with the sale of which on commission he is intrusted, to himself or to anyone connected with his business, unless he notes the facts of such transaction on the account of sales. LXX— C— 1.] C. ADDITIONAL SPECIAL REGULATIONS GOVERNING RETAILERS IN BUTTER. The attention of all retail dealers in butter is called to rule A-1 of the above regulation, which is headed " Rule 1. Butter to be sold at reasonable advance over cost." . . The United States Food administration will regard any advance m excess of 6 to 7 cents per pond over cost (as defined in rule 1) as unreasonable, and as evidence of violation of rule 1. The 6 cents per pound represents the maxi- mum margin for stores conducted on the cash and carry, or no service plan, while 7 cents per pound is the maximum margin for the extra service stoi:es extending credit and delivery. t> 4. m -^ Retailer way have benefit of fractional Cost on any transactvon.—Retmlers whose delivered terminal costs figure in fractions may have the benefit of such fractional costs on any transaction. For example, if butter costs at terminal delivery 46i cents per pound, the selling price may be figured as follows : Amount of sale: 1 pound 2 pounds . . . 3 pounds . . . Cost. Cents. 461 92J 1383 Margin. Cents. Total. Cents. 521 io4 )36J Fraction added. Cents. Maximum selling price. $0.53 1.05 L57 770 COLD-STORAGE LEGISLATION. Cash and carry stores. The maximum selling price for the extra service or credit and delivery stores would be 1 cent per pound higher. In determining margins at 6 cents and 7 cents a pound on butter with the fractional costs in dealer's favor, the United States Food Administration has given due consideration to the rising costs of operation which must be met by the dealer. In addition to the above margins the retailer who carries butter in cold storage more than two full calendar months may add not more than 1 cent per pound and an additional one-fourth cent a pound for each calendar month there- after during which he carries the butter in cold storage. The total amount for carrying butter in cold storage so added, however, shall not exceed 2 cents per pound. The Food Administration will consider any sale of butter by a retail dealer at a greater margin than herein outlined as evidence subjecting the dealer to a revocation of his license or such other penalty as the law provides. Exhibit — . [XXI— Title.] UNITED STATES FOOD ADMINISTRATION SPECIAL LICENSE REGU- LATIONS NO. XXI— MANUFACTURERS AND DISTRIBUTORS OF CHEESE. (Effective Dec. 9, 1918.) This series contains all special regulations applying to the above licensees Issued up to December 9, 1918. Such licensees are also subject to General Regulations No. 1, dated May 3, 1918, which, together with this series, super- sede, as to the above licensees, all regulations of series B. [XXI— A— I.] A. SPECIAL REGULATIONS GOVERNING MANLnFACTUREKS AND DISTRIBUTORS OF AIL KINDS OF CHEESE. Rule 1. Cheese to he sold at reasonable advance over cost. — ^The licensee dealing in cheese shall sell cheese without regard to market or replacement value at not more than a reasonable advance over the cost of the particular cheese sold : Provided, That the licensee may average by weight the cost of all cheese of the same kind, shape, and grade which have not already been con- tracted to be sold. The licensee shall keep a record of the manner in which such average has been determined. When new lots are added and a new aver- age calculated tjie licensee shall include in the new averaging all stock re- maining on hand of lots already averaged at the average cost of such lots previously determined. If the cost of any cheese is averaged, the cost of all cheese must be averaged. Cost for the purpose of this rule shall include : 1. Purchase price. 2. Transportation charges. If any (not including drayage). 3. Storage charges actually incurred, provided that the cheese- has been in storage more than 60 days. 4. Insurance charges actually incurred, provided that the cheese has been in storage more than 60 days. 5. Interest on money invested at the current rate, provided that the cheese has been in storage more than 60 days. 6. Actual cost of paraffining, if any, not to exceed one-fourth cent per pound. 7. Actual cost of reboxing or dividing the type of American or Cheddar cheese, known as Twins or double or triple Daisies, into smaller units, but in no case exceeding i cent per pound. Cost shall not include any allowance for shrinkage in weight, commissions, expenses of breaking packages and repacking, or any other expenses than those herein listed. Note. — In any case where a dealer owns his own storage warehouse in which cheese is stored more than 60 days, the dealer may include in his calculation of cost a charge for warehousing equal to that ordinarily paid to a public warehouse for similar services. Where cheese is carried in a private warehouse without refrigeration refrigeration rates must not be charged. COLD-STOEAGE LEGISLATION. 771 The dealer must calculate the actual cost of paraffining and will not be per- mitted arbitrarily to take i cent per pound as this cost. In cases where the cheese is reweighed after paraffining the increased weight must be taken into consideration in determining the cost. [XXI — A — 1, continued (1).] Reports to be furnished on demand. — The licensee must be prepared to furnish to the United States Food Administration or to the Federal food administra- tor of his State upon demand a full report on costs and margins charged or on the maximum prices charged in any given period for any kind of cheese, or any other information which may be considered necessary for the purpose of this rule. The maximum margins indicated by the Food Administration are not to be regarded as fair normal margins or as so recognized by the Food Administra- tion. They are intended only to prevent speculation and are purposely made wide enough to cover cases where the methods of doing business are more ex- pensive, to the extent that such methods are justified. These maximum ad- vances must not be exceeded in selling any lot of cheese and the prices charged by any dealer must not in any case be more than sufficient to return to him a reasonable profit on his investment. Sales from branch houses. — Where cheese is transferred by any dealer to a branch house of such dealer in the same or another city, such transfer shall not be considered a sale governed by the maximum margins indicated for sales. No advance over cost for such transfer will be allowed except where the main house actually handles the cheese, in which ease advances over cost for trans- fer not greater than those indicated below will be permitted, provided the transaction is in as direct a line of distribution as practicable ; and the branch house may figure the transfer price (see below) as its purchase price and may I'cll c"-'.ce3Q c.t an lulvance over cost on such basis not greater than the maximum margins indicated below. If the branch house transfers the cheese to another branch house of the same dealer, the total margin added by both branch house,? must not be greater than the maximum margins indicated below. Collusive sales. — Ajiy sale by a dealer to another dealer at a price higher than the prica which the second dealer would have to pay in buying on the open market will be considered evidence of a collusive sale intended to defeat the purpose of Rule 1 by increasing the purchaser's cost and the price which he may charge upon a rising market. The price on the open market does not necessarily mean the price established by a dairy board, especially when the dairy board does not hold its meetings daily. Cost in the case of purchases of ungraded cheese. — The cost of any grade of cheese must be figured on the purchase price of that grade. Where a dealer purchases ungraded cheese at one price per pound regardless of the grades con- tained in the lot he must not figure the purchase price per pound of any part of this cheese higher than the price per pound actually paid for the entire lot. The growing practice due to present market conditions of buying cheese, particularly round Swiss, from the factory before it is sufficiently matured to permit of the determination of the quality of the product, increases materially the speculative risk assumed by the buyer. It also results in lowering the standard of quality. The Food Administration is strongly of the opinion that this tendency should be stopped as uneconomical and believes that the in- stallation of grades will do much to stabilize values in this product. Where dealers sell on grade they can reduce their speculative risk if they do not pur- chase the cheese until its quality can be reasonably determined. The above re- quirement as to figuring costs is intended to accomplish this result. [XXI— A— 1.] A. SPECIAL REGULATIONS GOVEKNING MANUFACTUEEES AND DISTRIBUTORS OF ALL KINDS OF CHEESE. Rule 1. Cheese to be sold at reasonable advance over oosf.— The licensee dealing in cheese shall sell cheese without regard to market or replacement value at not more than a reasonable advance over the cost of the particular cheese sold: Provided, That the licensee may average by weight the cost oi all cheese of the same kind, shape, and grade which have not already been contracted to be sold. The licensee shall keep a record of the manner in which such average has been determined. When new lots are added and a new average calculated the licensee shall include in the new averaging all 772 COLD-STOBAGB LEGISLATION . stock remaining on hand of lots already averaged at the average cost of such lots previously determined. If the cost of any cheese is averaged the cost of all cheese must be averaged. Cost for the purpose of this rule shall include: 1. Purchase price. 2. Transportation charges, if any (not including. drayage). 3. Storage charges actually incurred, provided that the cheese has been in storage more than 60 days. 4. Insurance charges actually incurred, provided that the cheese has been in storage more than 60 days. 5. Interest on money invested at the current rate, provided that the cheese has been in storage more than 60 days. 6. Actual cost of paraffining, if any, not to exceed one-fourth cent per pound. 7. Actual cost of reboxing or dividing the type of American or Cheddar cheese, known as Twins or double or triple Daisies, into smaller units, but in no case exceeding one-half cent per pound. Cost shall not inclvide any allowance for shrinkage in weight, commissions, expenses of breaking packages and repacking, or any other expenses than those herein listed. Note. — In any case where a dealer owns his own storage warehouse in which cheese is stored more than 60 days, the dealer may Include in his calculation of cost a charge for warehousing equal to that ordinarily paid to a public warehouse for similar services. Where cheese is carried in a private ware- house without refrigeration refrigeration rates must not be charged. The dealer must calculate the actual cost of paraffining and will not be permitted arbitarily to take one-fourth cent per pound as this cost. In cases where the cheese is reweighed after paraffining the increased weight must be taken into consideration in determining the cost. [XXI— A— 1, continued (1).] Reports to he furnished on demand. — The licensee must be iirepared to fur- nish to the United States Food Administration or to the Federal food admin- istrator of his State upon demand a full report on costs and margins charged or on the maximum prices charged in any given period for any "kind of cheese, or any other information which may be considered necessary for the purpose of this rule. The maximum margins indicated by the Food Administration are not to be regarded as fair normal margins or as so recognized by the Food Administra- tion. They are intended only to prevent speculation and are purposely made wide enough to cover cases where the methods of doing business are more expensive, to the extent that such methods are justified. These maximum advances must not be exceeded in selling any lot of cheese and the prices charged by any dealer must not in any case be more than sufficient to return to him a reasonable profit on his investment. Sales from branch houses. — Where cheese is transferred by any dealer to a branch house of such dealer in the same or another city, such transfer shall not be considered a sale governed by the maximum margins indicated for sales. No advance over cost for such transfer will be allowed except where the main house actually handles the cheese, in which case advances over cost for transfer not greater than those indicated below will be permitted, provided the transaction is in ns direct a line of distribution as practicable ; and the branch house may figure the transfer price (see below) as its purchase price and may sell cheese at an advance over cost on such basis not greater than the maximum margins indicated below. If the branch house transfers the cheese to another branch house of the same dealer, the total margin added by both branch houses must not be greater than the maximum margins indicated below. Collusive sales. — Any sale by a dealer to another dealer at a price higher than the price which the second dealer would have to pay in buying on the open market will be considered evidence of a collusive sale intended to de- feat the purpose of rule 1 by increasing the purchaser'.'? cost and the price which he may charge upon ii rising market. The price on the open market does not necessarily mean the price established by a dairy board, especially when the dairy board does not hold its meetings daily. Cost in the case of purchases of ungraded cheese. — The cost of any grade of cheese must be figured on the purchase price of that grade. Where a dealer purchases ungraded cheese at one p''''''e per pound regardless of the COLD-STORAGE LEGISLATION. 778 grades contained in the lot he must not figure the purchase price per pound of any part of this cheese higher than the price per pound actually paid for the entire lot. The growing practice due to present market conditions of buying cheese, particularly round Swiss, from the factory before it is sufficiently matured to permit of the determination of the quality of the product increases ma- terially the speculative risk assumed by the buyer. It also results in lower- ing the standard of quality. The Food Administration Is strongly of the opinion that this tendency should be stopped as uneconomical and believes that the installation of grades will do much to stabilize values in this product. Where dealers sell on grade they can reduce their speculative risk if they do not purchase the cheese until its quality can be reasonably determined. The above requirement us to figuring costs is intended to accomplish this result. [XXI — A — 1— Continued (2).] MAXIMUM MAKQIKS. The Food Administration will consider the sale of any cheese of any of the following kinds by any dealer other thun the manufacturer or the retailer at an advance over cost as hereinbefore defined of more than tlie following mar- gins, as prima facie evidence of a violation of the food-control act and the above rule. Licensees will be expected to sell cheese in usual quantities to customers and where it appears that sales are being made in smaller quantities than customarily for the purpose of charging larger margins than would be proper on larger sales such larger margins will not be considered justifiable. Larger margins are only proper for sales of smaller quantities where selling in small quantities is the usual course of business involvins' a greater expense in operation. Where a licensee contracts to sell a quantity of cheese to be delivered in smaller quantities at future dates the dealer must be guided by the maximum margins indicated for sales of the quantity contracted to be sold and not for sales of the amount of any delivery. American or Cheddar cheese. — (a) J cent per pound on car lot sales. (6) li cents per pound on sales less than a car lot but amounting to 7,000 pounds or more. (c) 14 cents per pound on sales less than 7,000 pounds but amounting to •1,000 pounds or more. id) 2-J cents per pound on sales less than 4,000 pounds, but amounting to 1,000 pounds or more. (e) 3 cents per pound on sales less than 1,000 pounds, but amounting to 100 pounds or more. if) 3i cents per pound on sales less than 100 pounds. In addition to the selling margin which normally should be considerably below the above maximum margins, a further margin may be added where American or Cheddar cheese is held in a warehouse for more than 30 days, of not to exceed one-fourth cent per pound per month for each and every month after the 30-day period during which the cheese is held in the ware- house bv any licensee— but in no case shall the amount so added exceed 2 cents per pound and no further amount shall be added by any licensee after nme months from the date of original storage. ^ ^ , . r<^ ■,.„ „,,„^co Transfer warr,h,.'<.-The margins for transfer of American or Cheddar cheese to a branch house where the main house actually handles the cheese shall not exceed one-half cent per pound, regardless of the quantity. [XXI— A — 1— Continued (3).] Round or Pub Swiss eheeae. — \l] II ^ln?s ^;e7po™r onTa/e°J fesi' «ian a car lot, but amounting to (c) 3.^Sp«'poiron%a,es less than 6,000 pounds, but amounting (.) 4'cenKe^"pound"onTa1es less than 3,000 pounds, but amounth^- , ::: (e) 5 c°enrperVounTon sales less than one tub, but amounting to 120 pounds or more. (f) 8 cents per pound on sales less than 120 pounds. 774 COLD-STOKAGE LEGISLATION. In addition to the selling margin wlilch should normally be considerably below the above maximum margin, a further margin may be added where round or tub Swiss cheese is held in a warehouse for more than 30 days, not to exceed one-fourth cent per pound per month for each and every month after the 30-day period during which the cheese is held in the warehouse by any licensee, but in no case shall the amount so added exceed 2 cents per pound and no further amount shall be added by any licensee after nine months from date of original storage. Transfer m.aryins.—The margins for transfer of round or tub Swiss cheese to a branch house where the main house actually handles the cheese shall not exceed 1 cent per pound, regardless of quantity. Block Sioiss cheese. — (a) 1 cent per pound on car lot sales. (6) If cents per pound on sales less than a car lot, but amounting to 8,000 pounds or more. (c) 2 cents per pound on sales less than 8,000 pounds, but amounting to 1,500 pounds or more. (d) 2i cents per pound on sales less than 1,500 pounds, but amounting to 750 pounds or more. (e) 3 cents per pound on sales less than 750 pounds, but amounting to 150 pounds or more. (f) 4J cents per pound on sales less than 150 pounds. In addition to the selling margin, which should normally be considerably below the above maximum margins, a further margin may be added where block Swiss cheese is held in a warehouse for more than 30 days, not to exceed one-fourth cent per pound per month for each and every month after the 30- day period during which the cheese is held in the warehouse by any licensee— but in no case shall the amount so added exceed 2 cents per pound and no further amount shall be added by any licensee after nine months from the date of original storage. Transfer margins. — The margins for transfer of block Swiss cheese to a branch house where the main house actually handles the cheese shall not exceed three-fourths cent per pound, regardless of quantity. [XXI— A— 1— Continued (4).] Brick, lirnburger, and munster cheese. — (a) li cents per pound on car-lot sales. (6) If cents per pound on sales less than a car lot, but amounting to 6,000 pounds or more. (c) 2i cents per pound on sales less than 6,000 pounds, but amounting to 2,400 pounds or more. (d) 3 cents per pound on sales less than 2,400 pounds, but amounting to 600 pounds or more. (e) 3i cents per pound on sales less than 600 pounds, but amounting to 120 pounds or more. if) 5 cents per pound on sales less than 120 pounds. In addition to the selling margin, which should normally be considerably below the above maximum margins, a further margin may be added where brick. Urn- burger, or munster cheese is held in a warehouse for more than 30 days, not to exceed three-eighths cent per pound for the first month after the 30-day period and one-fourth cent per pound per month for each of the following months thereafter during which the cheese is held in the warehouse by any licensee, but in no case shall the amount so added exceed If cents per pound and no further amount shall be added by any licensee after six months from the date of original storage. Transfer margins. — The margins for transfer of brick, lirnburger, or munster cheese to a branch house where the main house actually handles the cheese shall not exceed three-fourths cent per pound, regardless of quantity. [XXI— A— 2, 3.] EuLE 2. Manufacturers who perform services of dealer or assemhler. — Any manufacturer who acts also as an assembler, wholesaler, or jobber shall be subject in such sales to the rules and margins governing assemblers, whole- salers, and jobbers : Provided, That instead of the purchase price as an as- sembler, wholesaler, or jobber he shall either (1) compute the cost of raw ma- terials and the expense of manufacture, or (2) in the case of American or cheddar cheese, take the price during the 10 days after the cheese is manufactured on COLD-STORAGE LEGISLATION. 775 the shape and grade of cheese in the established primary marlcet on the basis of which the cheese is usually sold by manufacturers. Rule 3. Commissions not to be unreasonable.— No licensee shall pay and no commission merchant shall receive, an unreasonable or exorbitant commission in connection with the sales of cheese. The licensee shall inform any commission merchant selling cheese for him of the maximum permitted price at which such cheese may be sold Note.—" Ten days after the cheese is manufactured " means 10 days after the cheese is removed from the hoops and placed in the curing room Under rule 1 the selling price may not be increased by reason of the payment of a commission. Commissions higher than those indicated below will be con- sidered prima facie unreasonable and exorbitant. Ma.riMiim commissions.— {a) In the case of American or cheddar cheese one- half cent per pound on car lots and 1 cent per pound on less than car lots (6) In the case of round or tub Swiss cheese li cents per pound on car lots and IS cents per pound on less than car lots. (c) In the case of block Swiss cheese 1 cent per pound on car lots and 1* cents per pound on less- than car lots. ((/) In the case of brick, limburger, and munster cheese 1 cent per pound on car lots and li cents per pound on less than car lots. It should be understood that the above are maximum commissions, which may at times be in excess of reasonable commissions. [XXI— A— 4.] Rule 4. Intertrading restricted. — The licensee in selling cheese shall keep it moving to the consumer in as direct a line as practicable and without unreasou- iible delay. The direct line of distribution of cheese is from a licensee in any of the following classes to a licensee in any succeeding class. Class 1. Manuafacturers. Class 2. Assemblers, wholesalers, and jobbers, including all licensees who receive cheese from manufacturers and grade and assemble cheese for sale, o( who distribute it in any way except at retail, and all manufacturers who per- ■form the services customarily performed by an assembler, wuolesaler, or jobber. Class 3. Retailers, hotels, restaurants, and institutions. Note. — ^Any transactions that savor of dealings in which a profit accrues to the dealer without corresponding service, are clear violations of the rule and will subject the offender to revocation of his license and to such other penalty as the law provides. The following kinds of sales bet\\'een dealers will be considered justifiable, but sales other than those described between dealers in the same class will be con- sidered as prima facie evidence of violation of the rule : A. A sale by any dealer In cheese to a dealer in any succeeding class will be considered as in the direct line of distribution. B. One sale and only one sale of the same cheese between dealers in class 2 in the same city will be considered justifiable when necessary to supply the reasonable requirements of the buyer's business, without the special consent of the local Federal food administrator : Provided, however, T«iat a second sale of the same cheese between dealers in class 2 in the same city will be permitted without the consent of the local Federal food administrator if this sale is made at an advance over cost of not more than one-half of the margin Indicated above, and provided that the seller notifies the buyer that this is a second sale. C in addition to such sales as are otherwise indicated as justifiable, sales between dealers In class 2 in different cities will be considered justifiable : Pro- vided That an actual delivery of the cheese follows the sale, and that the ship- ment is for the purpose of obtaining supplies from primary markets for the reasonable requirements of the purchaser's business: Provided, further, That not more tiaan three such sales are made of any lot of cheese without special ^^d" Any^sale between dealers without any advance over cost will be considered as justifiable in addition to such other sales as are permitted. [XXI— A— 5, 6, 7.] Rule 5. The licensee maUng a second sale vn, the '''?'^jj''jj^^^fll^^^^^~ The licensee in class 2 as defined in rule 4 who Purchases cheese from an^^^^^ assembler or dealer in such class or from a inf""f„^„f "'^-^ P^'f ™'h^^ services of an assembler or dealer and who sells to another dealer in class 2 776 COLD-STORAGE LEGISLATION. shall notify such dealer of the prior sale and of all other- prior sales of such cheese within that class of which he has knowledge. Note.— This information should be disclosed at the time of the transaction and should be placed hy the seller upon the invoice in order that there shall be a permanent record. Rule 6 (repealed Dec. 5; repeal to be effective Dec. 10, 1918.) — Minimum oar- load shipments. — All carload shipments of cheese shall be made in car lots of not less than 30,000 pounds gross unless a different minimum is authorized bj special permission of the United States Food Administrator : Provided, however. That when cars of lower carrying capacity are used the maximum load which the car will carry may be used without such permission. Rule 7. Boarding prohibited. — The licensee shall not keep on hand or have in his possession or under control by contract or other arrangement a quantity of cheese in excess of the reasonable requirements of his business for use or sale by him for a reasonable time or in sufficient quantities to fill his reasonable requirements faroughout the period of scant or no production. [XXI— B—l, 2, 3.] B. ADDITIONAL REGULATIONS GOVERNING COMMISSION MERCHANTS, BROKERS, AND AUCTIONEERS DEALING IN CHEESE. Rule 1. Comm/ission or brokerage not to lie unreasonable or discriminatory. — The licensee shall not charge, directly or indirectly, an unjust, exorbitant, un- reasonable, discriminatory, or unfair commission or brokerage on the sale of cheese. Note. — The Food Administration in enforcing this rule will insist that any proposed increase In rates be submitted to the local Federal Food Administrator and that the reason for any increased rate over the prewar normal be justiiSed to him, subject to the general supervision of the United States Food Adminis- tration before such increased rates are put into effect. The rates to be charged by a commission merchant are more specifically treated under A, rule 3, supra. Rule 2. Prompt remittance and proper account sales to be rendered. — The licensee shall remit promptly following the sale of cheese received on consign- ment for sale or distribution, and shall render to the consignor an account showing the true sales and with charges only for services actually performed and expenses actually incurred by the licensee. Rule 3. Agent not to buy from principal unless noted on account of sales. — The licensee shall not, directly or Indirectly, sell consigned cheese, or cheese with the sale of which on commission he is Intrusted, to himself or to any one connected with his business, unless he notes the facts of such transaction on the account of sales. rxxi— c] 0. ADDITIONAL SPECIAL REGULATIONS GOVERNING RETAILERS IN CHEESE. The attention of all retail dealers in cheese is called to A, rule 1, of the above regulations, headed " Cheese to be sold at reasonable advance over cost." Under the above rule the retail section of the Distribution of Perishables of the United States Food Administration will consider the sale of American or Cheddar cheese at an advance in excess of 7 or 8 cents per pound over cost (as defined In rule 1) as unreasonable and as evidence of violation of rule 1. The 7 cents per pound represents the maximum margin for stores conducted on the cash-and-carry or no-service plan, while 8 cents per pound is the maxi- mum for the extra-service stores extending credit and delivery. Dealers whose delivered store-door cost figures in fractions may have the benefit of such fractional cost. Cash-and-carry stores. Cost. Margin. Total. Fraction added. Maxtmum selling price. Amount of sale: Ipound 2 pounds... 3 pounds... Cents. 26i m Cents. 7 14 21 Cents, 33i Cents. SO. 37 .64 1.18 COLD-STOEAGE LEGISLATION. 777 In determining margins at 7 and 8 cents per pound on cheese with the frac- tional cost in the dealer's favor the United States Food Administration has given due consideration to the rising costs of operation vyhich must be met by the dealer. In addition to the above margin, a retailer who carries American or Cheddar cheese in a warehouse for more than 30 days may add not to exceed one- fourth cent per pound per month for each and every month after the 30-day period during which the cheeses is held in the warehouse by him, but in no case shall the amount added exceed 2 cents per pound, and no further amount shall be added by the dealer after nine months froiji the date of original storage. Dealers should understand that if they average costs they must average the cost of each grade and style separately. Exhibit AA. [XXIV— Title.] UNITED STATES FOOD ADMINISTRATION SPECIAL LICENSE REGU- LATIONS NO. XXIV— COLD-STORAGE WAREHOUSEMEN (INCLUDING OFFICIAL INTERPRETATIONS). Effective August 26, 1918. This pamphlet contains all special regulations issued up to August 26, 1918, applying to cold-storage warehousemen. Such licensees are also subject to the general license regulations No. I, dated May 3, 1918, issued in a separate pamphlet. All regulations of series B are superseded as to such licensees on August 26, 1918. [XXIV— A— 1, 2, 3, 4.] XXIV. Special Rules and Regulations Goveening Licensees Engaged in Business as Cold-Storage Warehousemen. a. definitions. 1. Gold-Storage warehouse. — A cold-storage warehouse shall mean any place artificially or mechanically cooled to or below a temperature of 45 degrees above zero Fahrenheit in which food products are placed and held for 30 days or more. 2. Public cold-storage warehousemen. — Any individual, firm, corporation, or association engaged in the business of maintaining and operating cold-storage warehouses in which food products are stored for hire or compensation shall be called a public cold-storage warehouseman. 3. Private cold-storage warehousemen. — ^Any individual, firm, corporation, or association that maintains and operates as an adjunct to their business cold- storage warehouses for the storage of food products exclusively owned or dealt in by them shall be called a private cold-storage warehouseman. 4. Combined public and private cold-storage warehousemen. — Any individual, firm, croporation, or association which combines a public cold-storage ware- house business with the storage of commodities which directly or indirectly it owns, deals in, or otherwise has an interest in shall be called a combmed public and private cold-storage warehouseman. Notes.— (a) A combined public and private cold-storage warehouseman who deals in commodities that are stored in his warehouse must also be licensed as a dealer and must observe the rules and regulations governing dealers. (6) When a person rents a room or rooms from a cold-ptorage warehouse- man and the latter has no control over the goods stored therein, the owner of the warehouse is not to be deemed the warehouseman of these goods. Ihe person renting the room is the warehouseman of such goods, must be licensed as a cold-storage warehouseman, and must comply with the general and special regulations governing cold-storage warehousemen. [XXIV— B—l, 2, 3.] B. REGULATIONS. Rule 1. Ownership or dealing in stored goods by public cold-storage ware- housemen prohibited.-^No public cold-storage warehouseman shall either ai- rectly or indirectly own or deal in any food commodities stored in any public 778 COLD-STORAGE LEGISLATION. cold-storage warehouse, except food commodities that are legally acquired for charges or advances made. Note. — A cold-storage warehouseman does not have to have a wholesaler's or jobber's license to sell stored goods in order to protect a lien on said goods acquired for advances or charges. Rule 2. Warehouse receipts must mdioate when licensee is acting as com- bined public and private cold-storage warehouseman. — Licensees who are classi- fied as combined public and private cold-storage warehousemen shall clearly indicate the dual capacity on all warehouse receipts issued. Rule 3. Schedules of rates to be filed. — Licensees shall submit on blanks to be furnished for that purpose a statement or schedule showing present rates and charges for storage and other service on each commodity required to be licensed, together with all charges for labor, insurance on contents of warehouses, and whether included in storage rate, cartage. If any, and whether included in storage rate, interest, and all other charges not enumerated. Such schedule will be open to Inspection at the office of the Food Administration in Washington. D. C, and information as to any particular rate included in any such schedule may be given by mail or telegraph by the representatives of the Food Administration having control of such schedules to persons who, in their opinion, have proper reasons for requesting such information. A copy of such statement or schedule shall be open to inspection at the office of the warehouseman by whom it is filed. Note. — Attention is called to general rule 5, which prohibits licensees from making upjust, exorbitant, unreasonable, discriminatory, or unfair storage charges. The fact that a licensee flies with the Food Administration his schedule of rates and charges under special rule 3 does not mean that the rates and charges in such .schedule have the approval of the Food Administration. If the Food Arministration at any time has reason to believe that any such rates or charges are unjust, unfair, exorbitant, unreasonable, or discriminatory, the licensee will be called upon to justify such rates or charges. [XXIV— B— 4.] Rule 4. No rales to be charged other than those in schedules filed. — The licensee shall not demand, collect, or receive, directly or indirectly, from any patron or other person concerned any different sum for storage or other services performed than that shown on the schedule filed with the United States Food Administration, or make any charge for services or special allowance or rebate not shown on said schedule, unless he has filed with the United States Food Administration at least 80 days before the change in rate or charge, becomes effective an amendment to the schedule showing such change in rate or charge. Notes. — (1) By this rule a licensee is prohibited from storing licensed food commodities at rates fixed by contract or other arrangement that differ from those specified in the filed schedule; when amendments to any schedule are filed the new rotes become effective 30 days after filing and at such time storing at the rates superseded by the amendments must cease, any arrangement or agreement to the contrary notwithstanding. (2) General rule 5 prohibits cold-storage licensees from making unreasonable or discriminatory charges in handling or storing food commodities. The United States Food Administrntion recognizes the principle that up to a certain point it ordinarily costs less per unit to handle large lots than small lots of a particular commodity, and has no objection to licensees charg- ing a lesser rate per unit for large lots than for lots if the differentiation in rates Is based on variation of cost in handling the particular commodity. Hereafter the above-mentioned principle must be applied by cold-st6rage warehousemen In arranging any variations in rates contained In schedules of rates or amendments thereto that are filed. With respect to rate schedules now on file in which lower rates for lariW lots or discounts for quantity are stated, no objection has been or will be made to differentiations In rates unless they are obviously merely arbitrary or dis- criminatory, or In effect constitute a preference to one or a few patrons, or unless upon investigation they are found to be without reasonable justification. All rates must, of course, be contained In the schedule required to be filed with the United States Food Administration and nmst be clear, explicit, well defined, and Intelligible. Every patron is entitled to know his exact classi- fication and the specific rate he is to be charged. COLD-STOEAGE LEGISLATION-. 779 [XXIV— B, 5.] Rule 5 Public, cold-storage vtirclionseiiien not to laid more than 70 ncr cmif of the vatue of stored ooods.-Tl,e licensee shall not make am- loan on ifcensed commodit.es stored with him, or incur liability by indorsemeiir guaranty or otherwise, m connection with any loan on licensed commodmes stored with him, in excess of 70 per cent of the market value of such commodities on the r^t^raf^f tlmrr--^" "^ "•'* ^^^^ ^^^" '' ^- --^^ °" -«1^ loan^shTul^ Any advances made by the licensee on the goods upon which the loan is made, such as freight, cartage, or insurance, shall be Included n the 70 pe? cent of the market value permitted above ^ seSely.^"" "^^"'®" ^""^ "licensed commodities shall in all cases be made Notes.— (1) An advanced charge arises through the payment of money bv the warehouseman to some third person, or the assumption of an indebtedness by the warehouseman, with reference to the goods upon which the loan is based For example, a charge for insurance, freight or cartage, or prior storage, which the warehouseman had paid or assumed to pay, is an advanced charge and must be included in estimating the amount of the loan permitted by this rule On the other hand, the indebtedness to the warehouseman making the loan for storage charges on the goods or interest on the loan, or any other item which does not represent an advance by the warehouseman to or for the customer with reference to the goods stored, is not an advanced charge and need not be included in estimating the amount of the loan permitted by this rule (2) A cold-storage warehouseman in releasing or delivering out any licensed commodities on which such loans as are mentioned in this rule have been made shall, if such release or delivery would result in the margin on the loan being reduced to less than 30 per cent, require and obtain before or at the time such release or delivery is made a sufficient payment so that the amount of the loan IS reduced and the required margin of at least 30 per cent is at all times preserved. (3) A combined public and private cold-storage warehouseman who sells on credit food commodities required to be licensed and transfers title thereto and who thereafter stores such commodities which remain security for the unpaid portion of the purchase price, is by extending credit in such a transaction indi- rectly making a loan on such commodities within the meaning of this rule, and he must not so extend credit for more than 70 per cent of the market value of such commodities. [XXIV— B^6.] Rule 6. Certain commodities to he marked. — For the purpose of this rule " marked " shall also mean " stamped " or " tagged." The marking required below shall be placed on each article or container that is offered separately for storage; provided that when articles of the designated foodstuffs not in containers are stored in bulk, for example, in stacks or piles, and it is found Impracticable to mark each article, then the required marking may be made upon a placard upon or adjacent to the bulk mass of articles. When such articles are removed from cold storage, they shall immediately be placed in appropriate containers, which shall be marked as required below. Said marking must be plainly legible, and in letters and figures not less than three-eighths of an inch in height and the ink used must be of a permanent character. Recognized abbreviations only will be accepted. When any of the specified food products are transferred from one container to another, all the data required herein to be placed on the original container shall be placed on the container to which the food products are transferred. The licensee shall plainly mark any fresh meat, fresh meat products, fresh fish, poultry, eggs, or butter as follows: (.a) If stored by any cold-storage warehouseman before November 1, 1917, they shall be marked with the words " Cold storage" before delivery from the warehouse. (6) If stored by a public cold-storage warehouseman or a combined public and private cold-storage ^varehouseman as a public cold-storage warehouseman after November 1, 1917, they shall be marked when received by the licensee with the words " Cold storage," the date of receipt, the name of the ware- house, and the State wherein located, and when removed they shall l)e marked with the date they are delivered from the warehouse. 187690—19 50 780 COLD-STOBAGE LEGISLATION. ■ (c) If stored by a private cold-storage warehouseman or by a combined pub- lic and private cold-storage vearebouseman as a private cold-storage warehouse- man after November 1, 1917, and (1) if they are transferred to another cold- storage vyarehouse within 30 days after receipt, or (2) are held 30 days or more In the warehouse where originally stored, or (3) If they are transferred to another cold-storage warehouse and are held any length of time therein, they shall be marked with all the data prescribed In paragraph (&) above. [XXIV— B— 6, continued, 7.] No mark, stamp, or tag required by this rule shall be removed or erased unless the goods are delivered from the warehouse where originally stored within 30 days after receipt and are not again put into a cold-storage ware- house. Notes. — (1) The above rule must be complied with by a licensee who re- ceives commodities for storage that have already been in cold storage, as weU as by a licensee who originally receives the commodities for storage. (2) Attention is called to the following regulations governing dealers in butter, poultry, eggs, fresh or frozen fish, fresh meats, and fresh-meat products : " No licensee shall sell or offer for sale fresh meat, fresh-meat products, fresh or frozen fish, poultry, eggs, or butter which have been held for a period of 30 days or over in a cold-storage warehouse unless such commodities are plainly marked, stamped, or tagged, either upon the container wherein packed or upon the article of food itself, with the words 'Cold storage.' The licensee shall keep such mark, stamp, or tag in plain view, and shall not represent or advertise as fresh any such commodities; and if he is a retailer shall display a placard plainly and conspicuously marked 'Cold-storage goods' on the bulk mass or articles of food. Any invoice or bill rendered for such goods shall clearly describe the commodities, using the words 'Cold-storage goods.' " No licensee shall remove or erase, or permit to be removed or erased, any mark, stamp, or tag bearing the words 'Cold storage,' or other words required by the regulations to be placed on any food commodities or upon the con- tainers wherein they are packed, unless the commodities so marked, stamped, or tagged were delivered from the cold-storage warehouse where originally stored within 30 days after they were stored and were not again put into a cold-storage warehouse. When any food commodities are transferred from a container bearing the words 'Cold storage,' or such food commodities are divided into smaller lots or units, the words 'Cold storage' shall be plainly and conspicuously marked upon the containers, cartons, packages, or wrappers to which they are transferred." (3) The time during which food commodities are carried under refrigera- tion in the process of manufacture is not to be included in calculating the time in which such commodities are or have been kept In cold storage. (4) This rule does not apply to the case of food commodities that the licensee stores for the United States Army. (Opinion No. A — 119.) Rule 7. Only food m good condition to he stored. — The licensee shall not receive for storage or keep In any cold-storage warehouse any food products which are apparently diseased, tainted, or otherwise unfit for human consump- tion. August 24, 1918. Herbert Hoover, United States Pood Administrator. August 24, 1918. [XXIV— B — 6, continued, 7. Nov. 1, 1918. Insert this page after XXIV— B— Continued, 7.] Eule B-6 of Special License Regulations No. XXIV requires a cold-storage warehouseman to mark in the specified manner "any fresh meat or fresh- meat products" as well as certain other commodities. This does not require dried-salt meats or other cured meats to be marked. The words "fresh-meat products" refer to meat products remaining in the fresh state. (Opinion A-124, October 30, 1918.) OOLD-STOEAGE LEGISLATION. 781 Exhibit BB. [XXV— Title.] UNITED STATES FOOD ADMINISTRATION SPECIAL LICENSE REGU- LATIONS No. XXV— FEEDING STUFFS. Effective August 1, 1918. This pamphlet contains all special regulations issued up to July 15, 1918, which affect importers, manufacturers, mixers, and dealers in feeds or feed ingredients, excepting millers of wheat, rye, corn, oats, and barley, cottonseed crushers, sugar refiners, and other licensees who manufacture feed as a by- product of licensed food commodities for whom special sets of rules have been issued. All licensees are also subject to General License Regulations No. 1, issued in a separate pamphlet. All regulations of series B are superseded by these general and special license regulations on August 1, 1918. [XXV — A— 1.] Special License Regulations No. XXV. A. license proclamation of JANUARY 10, 1918. By presidential proclamation dated January 10, 1918, the following persons were required to take out a license under section 5 of the food-control act of August 10, 1917 : All persons, firms, corporations, and associations engaged in the business of— (o) Importing, manufacturing (including mixing and processing of all kinds), storing, or distributing any commercial mixed feeds (including dairy feeds, horse and mule feeds, stock feeds, hog feeds, and poultry feeds) ; (6) Manufacturng feeds from any of the following commodities or import- ing storing or distributing any of the following commodities as feeds or feed ingredients : Buckwheat Kaffir. Milo. Feterita. Broom corn. Cane seed. Spelt. Emmer. Millet. Sunflower seed. Grain and seed screenings. Lentils. Linseed oil cake. Linseed oil meal. Beans. Peas. Dried brewers' grains. Dried distillers' grains. Dried yeast grains. Malt sprouts. Baled hay. Baled alfalfa. Baled straw. Animal or fish products or by-prod- ucts. Tankage. (c) Importing, manufacturing, storing, or distributing as feed any prod- ucts or bv-products of any kind of the following commodities, except products or bv-products whose Importation, manufacture, storage, or distribution is already covered by a license held by any such person, firm, corporation, or association : Shelled corn. Velvet beans. Ear corn. Peas. Oats. Peanuts. Barley. Copra. •Wlieat Palm nut. Rye. ' Palm kernel. Buckwheat. Sugar beets. Sorghum grains. Sugar cane. Rice. Hay. Grain and seed screenings. Alfalfa. Soya beans. Straw. By proclnmation of October 8, 1917, distributors of cottonseed cake, cotton- seed meal, peanut meal, and soya-bean meal had already been licensed, and by 782 COLD-STORAGE LEGISLATION, proplanintion of Mny 14, 1918, distribution of cottonseed liulls were licensed; nnd the feed dealers handling said products are also subject to the following rules : [XXV— B—1.] B. SPECIAL KEGUL^TTOKS .-Sl'PLYlXG TO ALT, PmiSDNS ENGAGED IN THE 1 JIPOKTATION, MANVFACTt'IiE, STOl'.ING, Oli DI.STBIBTTTOX OF FEEDS OH FEED INGREDIENTS AS DESCIIIBED I)Sr THE PKOCI.AMATION OF .TANUAHY 10, 191S, EXCEPTING MILLERS OF WHEAT, RYE, COKN, OATS, AND BAI'.LEY, COTTONSEED GRLTSHBRS, SUGAR REFIN- ERS, AND OTHER LICENSEES WHO MANUFACTURE FEED AS A BY-PRODUCT OF LICENSED FOOD COMMODITIES. Note. — Manufacturers who m.Tnufacture feed iis a by-product of licensed food commodities are governed in respect to such manufacture by the special regulation applying to tliem. Dealers in wheat, rye, corn, oats, and barley are governed by special license regulations No. Ill, which differ from the following feeding stuffs rules. Rule 1. Limitation on stock of feed under control. — The licensee shall not. without the written consent of the United States Food Administrator or his duly authorized representative, keep on hand, or have in possession, or under control by contract or other arrangement, at any time, any feed ingredients or feeding stuffs in a quantity in excess of the reasonable requirements of his business for sale by him during the next 60 days. Provided, That between May 1 and November 1 he may accumulate a total stock not at any time in excess of his reasonable requirements for sale within the next 120 days. Any stock which is in excess of a 60-days' supply on November 1 shall not be Increased after that date, but nothing in this rule shall require its reduction to a BO-days' supply until March 1 of the following year. Provided further, That this rule shall not prevent the licensee from storing or having under control in sufficient quantity to fill his reasonable require- ments throughout the period of scant or no production any of the following commodities : Molasses in bulk. Alfalfa meal. Dried beet pulp. Copra cake or meal. Linseed cake or meal. Milo. Baled alfalfa. Millet. Palm nut meal. Palm kernel meal. Buckwheat and its products. Fish scrap. Peanut hay meal. Soya bean meal from imported soya beans. Kaffir. Feterita. Sunflower seed. Broken wheat mixture. Baled straw. Baled hay. Peanut feed. Imported wheat screenings. Wild buckwheat. Peanut meal from imported peanuts. [XXV— B— 2, 3, 4.] Rule 2. Feed sold shall not give purchaser a supply in excess of tjiat per- mitted by rule 1. — The licensee shall not sell or deliver to any person any feed ingredients or feeding stuffs without the consent of the United States Food Administrator if the licensee knows or has reason to believe that such a sale or delivery will give to such person a supply of any such commodities in ex- cess of his reasonable requirements as permitted to him under the preceding special rule 1: Provided, That this rule shall not prevent the sale or delivery of any feed ingredients or feeding stuffs to any person for the Federal, State, county, or municipal governments of for the government of any nation at war with Germany, or the sale or delivery of a carload, the licensee having only sufficient of that commodity to last until the arrival of such carload. Rule 3. Contracts must provide for delivery in SO days. — The licensee shall not make or have outstanding at any time any contract for the sale of any feed ingredients or feeding stuffs other than those specified in rule 1 for ship- ment or delivery more than 60 days after the making of such contract, except for seeding purposes: Provided, however, That this rule shall not apply to contracts with the Federal, State, county, or municipal governments or with the government of any nation at war with Germany. COLD-STOEAGE LEGISLATION. 783 Rule 4. Miiiimtnn carload requirements. — All carload shipments of feeding &tuffs shall be made in car lots of not less than 60,000 pounds unless a different minimum is authorized by special written permission of the United States Food Administrator: Prodded, however, That wlien cars of lower carrying capacity are used the maximum load which the car will carry may be used without such permission. If the car will not hold 60,000 pounds it shall be loaded to its full visible capacity. In loading molasses feeds in warm weather an air space not to exceed 3 feet from top row of sacks to roof of <:ar at lowest point may be allowed, to Insure against heating of feed. [XXV— B— 2, 3, 4 (a). Sept. 26, 1918. Substitute this for XXV— B— 2, 3, 4.] Rule 2. Feed sold shall not give purchaser a supply in excess of that per- mitted by rate 1. — The licensee shall not sell or deliver to any person any feed ingredients or feeding stuffs without the consent of the United States Food Administrator if the licensee knows or has reason to believe that such a sale or delivery will give to such person a supply of any such commodities in excess of his reasonable requirements as permitted to him under the preceding special rule 1 : Provided, That this rule shall not prevent the sale or delivery of any feed ingredients or feeding stuffs to any person for the Federal, State, county or municipal Governments, or for the Government of any nation at war wi'-h Germany, or the sale or delivery of a carload, the licensee having only sufficient of that commodity to last until the arrival of such carload. Rule 3. Contracts must provide for delivery in 60 days. — The licensee shall not make or have outstanding at any time any contract for the sale of any feed ingredients or feeding stuffs other than those specified in rule 1 for shipment or delivery more than 60 days after the making of such contract, except for seeding purposes : Provided, hoicever, That this rule shall not apply to contracts with the Federal, State, county, or municipal Governments, or with the Govern- ment of any nation at war with Germany. Rule 4 (as amended effective Oct. 1, 1918). Minimwm carload require- ments. — All carload shipments of feeding stuffs shall be made in car lots of not less than 60,000 pounds unless a different minimum is authorized by special written permission of the United States Food Administrator: Provided, how- ever, That when cars of lower carrying capacity are used the maximum load which the car will carry may be used without such permission. If the car will not hold 60,000 pounds it shall be loaded to its full visible capacity. In load- hig molasses feeds from May 1, to October 31, an air space not to exceed 3 feet, and from November 1 to April 30, not to exceed 2 feet, from top row of sacks to roof of car at lowest point must be allowed to insure against heating of feed. [XXV— B— 2, 3, 4 (b). Dec. 6, 1918. Substitute this for XXV— B— 2, 3, 4 (a).l Rule 2. Feed sold shall not give purchaser a supply in excess of that per- mitted by rule 1. — The licensee shall not sell or deliver to any person any feed ingredients or feeding stuffs without the consent of the United States Food Administrator if the licensee knows or has reason to believe that such a sale or delivery will give to such person a supply of any such commodities in excess of his reasonable requirements as permitted to him under the preceding special rule 1 : Provided, That this rule shall not prevent the sale or delivery of any feed Ingredients or feeding stuffs to any person for the Federal, State, county, or municipal Governments, or for the Government of any nation at war with Germany, or the sale or delivery of a carload, the licensee having only sufficient of that commodity to last until the arrival of such carload. RtJLE 3. Contracts must provide for delivery in 60 days. — The licensee shall not make or have outstanding at any time any contract for the sale of any feed ingredients or feeding stuffs other than those specified in rule 1 for shipment or deiivorv more than 60 davs after the making of such contract, except for seed- ing purposes : Provided, however, That this rule shall not apply to contracts with the Federal, State, county, or municipal Governments, or with the Govern- ment of any nation at war with Germany. Rule 4. Minimum carload requirements.— (.nepe&leA Dec. 5, said repeal to become effective Dec. 10, 1918.) [XXV— B— 5, 6, 7.] Rule 5 Storage in seaboard elevators limited to 30 days.—m licensee oper- ating any elevator, warehouse, or other storage place at any seaboard shipping 784 OOLD-STOEAGE LEGISLATIOH. point shall receive for or keep in storage any feeding stuffs listed above, other than for the United States Government or any of its agencies, for a longer period than 30 days, or in the case of any such commodity now held in storage and which was received in storage on or before November 1, 1917, for a longer period than 5 days after this rule becomes efCective, without the consent in writing of the United States Food Administrator or his duly authorized repre- sentative. This rule shall not apply to the storage of any such commodity at interior points. Rui-E 6. Wheat not to he sold for feed. — The licensee shall not without the permission of the United States Food Administrator sell wheat, except mill feed, for feeding purposes' or use wheat in manufacturing of mixing feed: Provided, however. That poultry or pigeon feed containing not more than 10 per cent of wheat unfit for human consumption may be manufactured and sold without such permission: Provided further, That any wheat unfit for human consumption and unfit for poultry and pigeon feed may be used for other feeding purposes. Rule 7. Peed to be sold at reasonable advance over average cost. — The licensee in any sale of feeding stuifs shall take no more than a reasonable profit for such sale over the average cost of his stock of any commodity on hand, or under control not at that time contracted to be sold, and in arriving at the cost of corn or oats he shall take into consideration the gain or loss resulting from any hedging transaction on a grain exchange. Note. — This rule does not apply to wheat mill feeds or cottonseed products which are dealt with under special regulations O and D. [XXV— B— 5, 6, 7 (a). Sept. 26, 1918. Substitute this for XXV— B—S, 6, 7.] Rule 5. Storage in seaboard elevators limited to SO days. — No licensee oper- ating any elevator, warehouse, or other storage place at any seaboard shipping point shall receive for or keep in storage any feeding stuffs listed above, other than for the United States Government or any of its agencies, for a longer period than 30 days, or in the case of any such commodity now held in storage and which was received in storage on or before November 1, 1917, for a longer period than 5 days after this rule becomes effective, without the consent in writing of the United States Food Administrator or his duly author- ized representative. This rule shall not apply to the storage of any such com- modity at Interior points. EuLE 6. Wheat not to be sold for feed. — The licensee shall not without the permission of the United States Food Administrator sell wheat, except mill feed, for feeding purposes or use wheat in manufacturing or mixing feed: Provided, however. That poultry or pigeon feed containing not more than 10 per cent of wheat unfit for human consumption may be manufactured and sold without such permission : Provided further. That any wheat unfit for human consumption and unfit for poultry and pigeon feed may be used for other feeding purposes. EtjLB 7 (as amended, effective Oct. 1, 1918). Feed to be sold at reasonable advance oner average cost. — The licensee in any sale of feeding stuffs shall take no more than a reasonable profit for such sale over the average cost of his stock of any commodity on hand or under control not at that time con- tracted to be sold, and in arriving at the cost of grain he shall take into con- sideration the gain or loss resulting from any hedging transaction on a grain exchange. This rule shall not apply to feeding stuffs (other than grain, hay, or seed) purchased by one wholesale feed dealer from another wholesale feed dealer, and no such feeding stuffs so purchased shall be included in calculating the average cost above referred to. Note. — This rule does not apply to wheat mill feeds, cottonseed products, rice polish, rice bran or dried beet pulp, which are dealt with under special regulations O and D. Margins and profits for wholesale dealers in feeding stuffs. — The United States Food Administration considers that in sales of feeding stuffs at whole- sale the advance on any individual sale should not in any case exceed the purchase price delivered at railroad station, plus 15 per cent. The Food Administration will therefore consider any sale of feeding stuffs in excess of this advance as a violation of the foregoing rule. This margin will also apply to the sale of corn, oats, rye, or barley as feed, in assorted cars with other feeding stuffs but not in straight carload quantities, but will not apply to wheat mill feeds, cottonseed products, rice polish, rice bran, or dried beet pulp, for which special margins have been prescribed. For margins applying on straight carload shipments of grain, see the grain dealers' Rules No III— A. COLD-STORAGE LEGISLATION. 735 ^%T."nf=fv"'^''' '^^^''^""^ ^ P^^- '^^'^t ^^" be calculated on an salef ''* ^"'^' which may prevail. As pointed ou? the gtn'era avertge on^al^STusTno? tMr4%V^e^enTCS^„^roK^Th^i^^^^^^ a^^loSe^nSsrorhi^d«^^^^^ ^oSr -0?:^^^ [XXV— B-5, 6, 7 (b). Nov. 16, 1918. Substitute this for XXV-B-5, 6, 7 (a).] Rule 5. Storage in seaboard elevators limUed to 30 days.—No licensee otier ating any elevator, warehouse, or other storage place at any seaboard sMd pmg point shall receive for or keep in storage any feeding stuiTsEabOTe other than for the United States Government or any of its agencies f or « rffnvi^"''^"'^- f •^^^'' ">' ^" *^^^ '^^^^ °^ ^°y such commolfty now held m storage and which was received in storage on or before November 7 1917 for a longer period than 5 days after this rule becomes effective without ttie consent in writing of the United States Food Administrator oThSd^y authorized representative. This rule shall not apply to the storage of any such commodity at interior points. aioiage 01 any 4 ^&1S)^' ^^^"'^ "°* *" '"* ^"^^ ^'^^ feed.— (Repealed Nov. 2, effective Nov. n^^J ''^^ amended, effective Oct. 1, 1918). Feed to he sold at reasonable advance over average coat.— The licensee in any sale of feeding stuffs shall take no more than a reasonable profit for such sale over the average cost of his stock of any commodity on hand or under control not at that time con- tracted to be sold, and in arriving at the cost of grain he shall take into con- sideration the gain or loss resulting from any hedging transaction on a grain exchange. This rule shall not apply to feeding stuffs (other than grain hay or seed) purchased by one wholesale feed dealer from another wholesale feed dealer, and no such feeding stuffs so purchased shall be included in calculating the average cost above referred to. Note.— This rule does not apply to wheat mill feeds, cottonseed products rice polish, rice bran, of dried beet pulp, which are dealt with under special regulations C and D. Margins and profits for wholesale dealers in feeding stuffs. — The United States Food Administration considers that in sales of feeding stuffs at whole- sale the advance on any individual sale should not in any case exceed the purchase price delivered at railroad station, plus 15 per cent. The Food Administration will therefore consider any sale of feeding stuffs in excess of this advance as a violation of the foregoing rule. This margin will also apply to the sale of corn, oats, rye, or barley as feed, in assorted cars with other feeding stuffs but not in straight carload quantities, but will not apply to wheat mill feeds, cottonseed products, rice- polish, rice bran, or dried beet pulp, for which special margins have been prescribed. For margins applying on straight carload shipments of grain, see the grain dealers' Rules No. Ill — ^A. Furthermore, the Food Administration will consider an annual net earning by any wholesale dealer in feeding stuffs of more than 4 per cent upon the total gross sales, if his gross sales of feeding stuffs amount to $100,000 or more per annum, to be prima facie evidence of a violation of the rule which prohibits the taking of unreasonable profits. In the case of dealers who handle wheat mill feeds, cottonseed products, rice polish, rice bran, and dried beet pulp, as well as other feeds, the 4 per cent will be calculated on all sales. ■ The maximum margin on individual sales is purposely made wide because of the speculative character of the products dealt with, and the fluctuating prices which may prevail. As pointed out, the general average on all sales must not exceed 4 per cent advance over the cost of materials and overhead, nor must this 4 per cent limitation modify or abrogate the general principle contained in the Food Administration regulations that a licensee shall not earn more than a reasonable net profit on his capital invested. 786 COLD-STORAGE LEGISLATION. [XXV—B— 8, 9. Sept. 26, 1918. This should be inserted after XXV— B— 5, 6, 7 (a).] Rule 8 (effective Oct. 1, 1918). Margins for wholesale dealer, on feediMg stuffs bought from another wholesale dealer. — No wholesale dealer in ifeeding stuffs shall sell any feeding stuffs which he has purchased from another whole- sale dealer, other than grain, hay, or seed, at an advance over the average cost to the dealer who bought direct from the manufacturer, greater than would be reasonable for the first dealer to charge if selling diect to a retailer. No whole- sale dealer shall purchase feeding stuffs from another dealer without obtain- ing from him a written statement giving the average delivered purchase price paid by the dealer who purchased direct from the manufacturer for his stock of such commodity, and the margin which he has added. Note. — The Food Administration has considered the advisability of prohibit- ing all resales of feeding stuffs between wholesale feed dealers, but has decided, under the above rule, to permit such resales if the total margin charged by the wholesale dealers, does not exceed the margin which would be considered rea- sonable if the product passed through the hands of one dealer only. Rule 9 (effective Oct. 1, 1918). No resales unless cost and margin are stated on sales memorandum and invoice. — No wholesaler or jobber shall sell feed unless he states upon his contract or sales memorandum and upon the invoice the average delivered purchase price of his stock of such commodity on hand or under control at the time they are contracted to be sold, or in cases where he purchased feeding stuffs other than grain or seed from another wholesale feed dealer, the average delivered purchase price paid by the dealer who bought direct from the manufacturer. Note. — Under the above rule the following notation should be made on the contract or sales memorandum and upon the invoice by every jobber of feed : " This invoice is sold on the basis of an average purchase price of $3 per ton. I have added a gross margin of $3 per ton." If the feed, other than grain or seed, has been purchased from another feed dealer, the following notation should be made : " This invoice is sold on the basis of an average purchase price (when bought from manufacturer) of $3 per ton. " The first dealer added a gross margin of $8 per ton and freight of $3 per ton. " I have added a gross margin of $3 per ton." [XXV— c—i, 2, 3.] ' C. SPECIAL REGULATIONS APPLYING TO WHEAT MILL FEEDS. Note. — All wheat millers should sell wheat mill feed on a fair-price schedule which is based on the Government wheat price, and which is furnished to each mill. The rule requires that upon request the mill furnish to any person a copy of its fair-price schedule as prescribed by the United States Food Administra- tion. The purchaser is abetting a violation of the milling rules if he pays more for feed than is permitted thereby. Rule 1. One brokerage not to exceed S5 cents a ton permitted, — No licensee selling wheat mill feed as a broker shall charge more than a reasonable broker- age, not to exceed 25 cents per ton, and no licensee shnll charge a brokerage on any wheat mill feed on which a brokerage has already been charged. Rule 2. One commission not toeseceed 50 cents a ton permitted on consigned feed. — No licensee selling wheat mill feed as a commission agent for the sale of consigned wheat mill feeds, making sale, delivery, and collection, shall charge more than a reasonable commission, not to exceed 50 cents per ton; and no licensee shall charge a commission on any wheat mill feed on which a com- mission has already been charged. Rule 3. Reasonable margins fixed for jobbers. — No licensee buying and sell- ing wheat mill feeds as a wholesaler or jobber shall charge more than a rea- sonable advance over the bulk price at mill of the particular wheat mill feed sold (plus freight and cost of sacks), such advance not to exceed the following: Shipment from mill or in transit, payment cash, demand draft or sight draft; $1 per ton. Shipment from mill or in transit, sale on arrival draft terms, $1.50 per ton. Sale ex-jobbers' warehouse, payment cash, sight draft or demand draft, $2.50 per ton. Sale ex-jobbers' warehouse, upon arrival draft terms, $3 per ton. In making sales on credit not to exceed $1 per ton may be added to the mar- gin which could be charged if sold on arrival draft terms. COLD-STORAGE LEGISLATION. 787 [XXV— C—1, 2, 3 (a). Sept. 26, 1918. Substitute this for XXV— C—1, 2, 3.] C. SPECIAL KEGULATIONS APPLYING TO WHEAT MILL FEEDS, RICE POLISH, KICE BKAN, AND DBIED BEET PULP. Note. — Wheat mill feed prices. — All wheat millers should sell wheat mill feed on a fair-price schedule which is based on the Government wheat price and which Is furnished to each mill." The rules require that upon request the mill furnish to any person a copy of its fair-price schedule as prescribed by the United States Food Administration. The purchaser is abetting a viola- tion of the milling rules if he pays more for feed than is permitted thereby. Rice feed prices. — Under a uniform agreement with the United States Food Administrator, all rice millers have agreed to sell rice polish at not to exceed $50 per ton packed in customary manner, car lots f. o. b. mills, and rice bran at not to exceed $36 per ton packed in customary manner, car lots f. o. b. mills. Beet pulp prices. — The United States Food Administration has fixed the following prices for beet pulp as returning a fair margin of profit to the beet sugar manufacturers : Per ton. Wet beet pulp, bulk mill $0.80 Wet beet pulp out of silo, bulk mill 1. 25 Dried beet pulp, sacked f. o. b. factory, in car lots 40. 00 Rule 1 (as amended, effective Oct. 1, 1918). One brokerage not to exceed 25 cents a ton permitted. — No licensee selling the above feeds as a broker shall charge more than a reasonable brokerage, not to exceed 25 cents per ton, and no licensee shall charge a brokerage on any wheat miU feed on which a broker- age has already been charged. Rule 2 (as amended, effective Oct. 1, 1918). One commission not to exceed 50 cents a ton permitted on consigned feed. — No licensee selling the above feeds as a commission agent for the sale of consigned wheat mill feeds making sale, delivery, and collection, shall charge more than a reasonable commission, not to exceed 50 cents per ton ; and no licensee shall charge a commmission on any of the above feeds on which a commission has already been charged. Note. — Commission or brokerage must be paid out of the margin or price allowed by the regulations to the person paying the commission or brokerage and must not be added to price charged. RuxE 3 (as amended, effective Oct. 1, 1918). Reasonable margins fixed for dealers. — No licensee buying and se'ling the above feeds as a wholesaler or jobber shall charge more than a reasonable advance over the bulk price at mill of the particular feed sold (plus freight and cost of sacks), such ad- vance not to exceed the following: Shipment from mir or in transit, payment cash, demand draft, or sight draft, $1 per ton. Shipment from mi'l or in transit, sale on arrival draft terms, $1.50 per ton. Rule 4. No resales of wheat mill feeds if total margin exceeds that pre- Sale ex-jobbers' warehouse, payment cash, sight draft, or demand draft, $2.50 per ton. Sale ex-jobbers' warehouse, upon arrival draft terms, $3 per ton. In making sales on credit not to exceed $1 per ton may be added to the margin which could be charged if sold on arrival draft terms. [XXV— C — 4.] Rule 4. No resales of wheat mill feeds if total margin exceeds that pre- scribed in rule S.— No wholesaler or jobber shall sell wheat mill feed to any person other than a retail dealer, manufacturer, or a consumer: Provided. That he may sell to another wholesaler or jobber if in making such sales he states to the buyer the price which was paid bulk mill for the particular wheat mill feeds sold in such case. The buyer shall not sell such mill feed at more than the advances specified in rule 3 over the bulk mill price of the particular wheat mill feed so purchased from another wholesaler or jobber. [XXV— C— 4, 5, 6 (a). Sept. 26, 1918. Substitute this for XXV— C— 4, 5, 6.] Rule 4 (repealed Oct 1, 1918). No resales of wheat mill feeds if total margin exceeds that prescribed in rule 5.— Dealers in wheat mill feed as well as other feeds are now governed as to resales by rules B— 7, 8, 9, which see above. 788 OOLD-STORAGB LEGISLATION. Rule 5 (effective Oct. 1, 1918). Use of wheat mill feeds limited to certain purposes. — The wholesaler, retailer, or jobber shall not mix any greater per- centage of his total output of wheat mill feed with other feeding stuffs, or sell any greater percentage to feed mixers for such mixing, than he mixed or sold in the year 1917. He shall not sell any wheat mill feed for any other purposes than the feeding of dairy cattle, poultry, young pigs, or young calves, or the preparation of a weekly bran mash for work animals. Before selling any wheat mill feed to any person other than a dealer or mixed feed' manufacturer he shall require a pledge in the following form: " In order to assist the Food Administration in the equitable distribution of wheat mill feeds, I hereby undertake on honor not to use wheat mill feeds for any other purpose than the feeding of dairy cattle, poultry, young pigs, or young calves, or the preparation of a weekly bran mash for work animals. I will not feed any more wheat mill feeds than is customarily fed to such animals, and I further agree not to have at any time more than a 60-days' supply of wheat feeds on hand." Rule 6 (effective Oct. 1, 1918). Mill feed to he distributed as in 1917.— The feed wholesaler or jobber shall distribute all wheat mill feed and dried beet pulp handled by him equitably between the different States of the United States, in such manner that during each calendar quarter on and after October 1, 1918, the amount of wheat mill feed or dried beet pulp shipped into any State shall not be a less percentage of his total shipments of wheat mill feed or dried beet pulp during such quarter than was shipped Into such State in the corresponding quarter of the year 1917. Where shipments made in 1917 were subsequently reconsigned to other points, the ultimate point of consignment shall be taken as the basis for the foregoing calculation. This rule shall not apply to wheat mill feed or dried beet pulp handled by wholesalers or jobbers located in the drought States of Colorado, Ne\y Mexico, Nebraska, Kansas, Oklahoma, and Texas. tXXV— C— 4, 5, 6 (b). Dec. 21, 1919. Substitute this for XXV— C — i, 5, 6 (a).] Rule 4 (repealed Oct. 1, 1918). No resales of wheat mill feeds if total mar- gin exceeds that prescribed in rule 3. — Dealers In wheat mill feed as well as other feeds are now governed as to resales by rules B — 7, 8, 9, which see above. Rule 5. Use of wheat mill feeds limited to certain purposes. — (Repealed Dec. 19, 1918, effective immediately.) Rule 6. Mill feed to be distributed as in 1917. — (Repealed Dec. 19, 1918, effective immediately.) [XXV— C— 4, 5, 6. Oct. 15, 1918. Insert this after XXV— C— 4, 5, 6 (a).] Note to Rule 5. — In administering Rule XXV — O — 5 and Rule II — ^A — 31 millers and dealers should not for the present require the pledge on sales to persons in the drought areas of Colorado, New Mexico, Nebraska, Kansas, Oklahoma, and Texas. It is impracticable to extend this exception to small drought areas in other States. Where the exception is granted at all it must be State wide and our information indicates that above-named States are only ones where drought is sufficiently serious to justify an exception for entire State. Millers and dealers should be advised. (Telegram to Federal food administrators, Oct. 11, 1918). [XXV— D—l, 2, 3.] D. SPECIAL REGULATIONS APPLYING TO DEALERS AND BUYERS IN COTTONSEED CAKE, COTTONSEED MEAI., COTTONSEED HULLS, PEANUT MEAL, AND SOYA-BEAN MEAL. Rule 1. To be sold at reasonable advance over cost of particular lot sold. — The licensee shall sell the above commodities at not more than a reasonable advance over the actual cost of the particular commodity sold, without regard to the market or replacement value at the time of sale. Note. — Until further notice the United States Food Administration will regard any resale of cottonseed meal or cake by jobbers or wholesalers at mar- gins in excess of the following as unreasonable and in violation of the foregoing rule: Shipment from mill or in transit, payment cash, demand draft or sight draft, $1 per ton. COM /-STORAGE LEGISLATION. 78^ Shipment from mill or In transit, sale on arrival draft terms, $150 ner ton. Sale exjobber's warehouse, payment cash, sight draft, or demand draft, where meal or cake is actually handled through the warehouse, $2.50 per ton. Sale exjobber's warehouse upon arrival draft terms where meal or cake is actually handled through the warehouse, $3 per ton. In making sales on credit except to other wholesalers not to exceed $1 per ton may be added to the margin which could be charged if sold on arrival draft terms. Ein:^ 2. yeir crop cottonseed products not to be bought or sold before Au- gust 1. — The licensee shall not buy or sell cottonseed meal, cottonseed cake, or cottonseed hulls made or to be made from new-crop cotton seed, grown in the United States before August 1 of the year in which such cotton seed is grown. Note. — Under special rule B— 3 these products can only be bought or sold after August 1 for 60 days' delivery. Rule 3. Quotations based on protein or fat content. — Licensees who base quotations of cottonseed meal or cake upon either the protein or fat content, or combination thereof, shall not use any range of percentages, but shall state that the product offered contains not less than a definite percentage. [XXV — r>— 1, 2, 3 (a). Dec. 13, 1918. Substitute this for XXV— D—1, 2, 3.1 D. SPECIAL REGULATIONS APPLYING TO DEALERS AND BUYEES IN COTTONSEED CAKE, COTTONSEED MEAL, COTTONSEED HULLS, PEANUT MEAL, AND SOYA-BEAN MEAL. Rule 1. To be sold at reasonable advance over cost of particular lot sold. — The licensee shall sell the above commodities at not more than a reasonable advance over the actual cost of the particular commodity sold, without regard to the market or replacement value at the time of sale. Note. — Until further notice the United States Food Administration will regard any resale of cottonseed meal or cake by jobbers or wholesalers at mar- gins in excess of the following as unreasonable and in violation of the foregoing rule: Shipment from mill or in transit, payment cash, demand draft or sight draft, $1 per ton. Shipment from mill or in transit, sale on arrival draft terms, $1.50 per ton. Sale exjobber's warehouse, payment cash, sight draft, or demand draft, where meal or cake is actually handled through the warehouse, $2.50 per ton. Sale exjobber's warehouse upon arrival draft terms where meal or cake is actually handled through the warehouse, $3 per ton. In making sales on ctedit except to other wholesalers not to exceed $1 per ton may be added to the margin which could be charged if sold on arrival draft t.RTTnS. Rule 2. New crop cottonseed products not to be bought or sold before Au- gust 1. — (Repealed Dec. 12, said repeal to become effective Dec. 17, 1918.) Rule 3. Quotations based on protein or fat content. — (Repealed Dec. 12, said repeal to become effective Dec. 17, 1918.) I XXV D 1 2 3 — Note. Sept. 26, 1918. This should be inserted after XXV — D — 1, 2, 3.1 Note to Rule 1.— Resales are forbidden by rule B— 8 unless they divide the above margin. ^ ,,,... ^. Under the stabilization program of the United States Food Administration based on the price of cotton seed at the average agreed upon by the producers and the Food Administration the following prices have been arranged for cot- tonseed meal, cake, and hulls : ^ . . ■ Cottonseed meal and screened cracked cake 43 per cent protein in any quantity $57 per ton in sacks, f. o. b. all points of manufacture in Texas. Cottonseed meal and screened cracked cake 40 per cent protein in any quan- tity $54 per ton in sacks, f. o. b. all points of manufacture in Oklahoma. Cottonseed meal and screened cracked cake 36 per cent protein m any quan- tity $51 per ton in sacks, f. o. b. all points of manufacture in Imperial County, Calif., and $55 per ton in sacks f. o. b. all points of manufacture in Los Angeles County, Calif. 790 COLD-STORAGE LEGISLATION. Cottonseed meal i\ncl screened cracked cake 36 per cent protein in any quan- tity $53 per ton in sacks, f. o. b. all points of manufacture in Alabama, Arkan- sas, Florida, Gorgia, Louisiana, Mississippi, Missouri, Nortli Carolina, South Carolina, and Tennessee. Bulk, loose, or slab cottonseed cake shall be not less than $5 per ton, and bulk or loose cottonseed meal and screened cracked cake shall be not less than $4 per ton, under the prices specified above. All cottonseed meal, screened cracked cake, bulk cake showing protein con- tent other than above specified may be offered and sold at $1 for each unit pro- tein over or under the percentages as shown above : Provided, however, If cot- tonseed meal or cake upon delivery is ascertained to be of lower protein content than justified by price charged, any refund must be made at the rate of $1.40 per unit protein. Each shipment or delivery shall be considered separately and without relation to the whole contract. This rule must not be construed in any way as an exception to the pure-food act of 1906 or any of the amendments thereto. Cottonseed hulls, bulk or loose, $20 per ton, f. o. b. cars at point of manufac- ture. Prices specified are net to manufacturer. Terms of sale are upon the basis of cash or its equivalent. All manufacturers are urged to give preference in the sales of their products to producers and consumers. IJndr the Food Administration regulations, manufacturers of cottonseed meal, cake and hulls are not permitted, to the exclusion of consumers, to make sales of their products to firms, factories, or corporations in which the corporation or the officers of the producing mill may be interested, without the written con- sent of the Food Administration. [XXV— E—1.] E. SPECIAL REGULATIONS APPLYING TO DEALERS IN HOMINY FEED. Rule 1. Specifications for hominy feed. — On and after August 1, 1918, the licensee shall not knowingly quote, sell, or label products of corn under the following designations unless they conform to the following specifications. In cases where the licensee after an inspection of the goods has no reason to suspect a failure to conform to the specifications, he shall not be held to violate this rule if he quotes or sells products under the designation used by the millei selling to him. Hominy feed, hominy meal, or hominy chop shall be a kiln-dried mixture of the mill run bran coating, the mill run germ, with or without a partial ex- traction of the oil and a part of the starchy portion of the corn kernel obtained In the manufacture of hominy, hominy grits, and corn meal by the degerminating process from clean sound white corn, shall contain not to exceed 14 per cent moisture, not to exceed 7 per cent fiber, not less than 10 per cent protein, not less than 5 per cent fat, and shall have a texture fine enough to sift through No. 12 wire bolting cloth. Yellow hominy feed, yellow hominy meal, or yellow hominy chop shall con- form to the specifications for hominy meal, hominy flour, or hominy chop In all respects except that it shall be made from clean sound yellow corn instead of white corn. Note. — Blackstrap molasses. — The attention of feed manufacturers is called to the fact thsit refiners of sugar in the United States have been forbidden to sell blackstrap molasses in bulk at more than 18 cents per gallon, or in barrels at more than 28 cents per gallon. The prices named are f. o. b. cars at primary markets or port of entry, or point of production, if carrying same freight rate as from primary markets, net cash in 10 days without discount, and shall in- clude brokerage and any profit taken by distributors in tank cars direct from the refiners, but shall not include freight or tank car charges. Feed manufacturers should be able to buy blackstrap molasses at (lie above pi-ices in tank cars, paying in addition thereto only the freight and tank car charges. An additional margin of 10 per cent is permitted to dealers in barrels v,-ito handle such hiirrels through their warehouse. The Slime rules apply to imported blackstrap molasses. COLD-STOBAGB LEGISLATION. 791 [XXV— E—1 (a). XXV— F—1 (a). Dee. 13, 1918. Substitute this for XXV— E—1 and XXV— F—1.] E. SPECIAL BEGULATIONS APPLYIKG TO DEALERS IN HOMINY FEED. Rule 1. Specifications for hominy feed. — (Repealed Dec. 12, said repeal to become effective Dec. 17, 1918.) F. SPECIAL LICENSE KEGULATIONS APPLYING TO BARLEY, EYE, AND OAT MILL FEEDS. RrLE 1. Feed products not to be separated. — (Repealed Dec. 12, said repeal to become effective Dec. 17, 1918.) [XXV — F — 1. Sept. 20, 1918. This should be inserted after XXV— E—1.] F. SPECIAL LICENSE REGULATIONS APPLYING TO BARLEY, RYE, AND OAT MILL FEEDS. Rule 1 (Effective October 1, 1918). Fee4 products not to he separated.— The licensee shall not make any separation of the forty-five or higher per cent feed by-product created In the manufacture of barley flour or of the thirty or higher per cent by-product created in the manufacture of rye flour, or of the feed by-product created In the manufacture of oatmeal, rolled oats, or oat flour, and such feed by-product of barley, rye, or oats shall be sold intact. Nothing in this rule shall prevent the use of these unseparated by- products in the manufacture of commercial mixed feeds. Note. — The attention of the feed dealer and commercial mixed feed manu- facturer is called to the fact that barley, rye, and oat millers are forbidden to sell their feed by-products at a price per ton in excess of the price per ton of the raw grain from vi'hich it is manufactured. The same rule applies to hominy feed. [XXV— G—l. Sept. 26, 1918. This should be inserted after XXV— F—1.] G. SPECIAL REGULATIONS APPLYING TO MANUFACTURERS OF COMMERCIAL MIXED FEEDS. Rule 1 (Effective Oct. 1, 1918). Use of wheat mill feed limited. — The manu- facturer of commercial mixed feeds shall not use more wheat mill feed in the manufacture of mixed feeds than he used in the corresponding month of the year 1917. He shall not at any time have on hand, In possession, or under control by contract or other arrangement any wheat mill feeds in a quantity in excess' of the reasonable requirements of his business for sale by him during the next sixty days. PROFIT LIMITATION. Under Rule B— 7, prescribing a reasonable profit on the sale of feeding- .'tuffs, the following announcement has been issued applying to the manu- facture of commercial mixed feeds: xr, ^ Margins and profits for mixed-feed manufacturers. — The United States Food Administration considers that in the manufacture and sale of ground or crushed grains or ground hay, and of all commercial mixed feeds, the advance on any individual sale should not exceed the cost of material^, manufacturing, and overhead, plus 12^ per cent. The Food Administration will therefore consider unreasonable and as a violation of the foregoing rule any sale of such feeds in excess of this advance. Furthermore, the Food Administration will consider an annual net earning or more than 6 per cent upon the total gross sales of any such feeding stuffs, if the dealers' gross sales amount to $100,000 or more per annuni, to be prima facie evidence of a violation of the rule which prohibits the taking of un- rGjmorifllilp Drofits The maximum margin on individual sales is purposely made wide because of the speculative character of the products which enter .into such manufac- ture and the rapidly fluctuating prices which may prevail As pointed out, Se general average on all sales must not exceed 6 Per cent advance over the cost of materials, manufacture, and overhead, nor does this 6 per cent hmita- 792 COLD-STOBAGE LEGISLATION. tion modify or abrogate the general principle contained in the Pood Admin- istration regulations that a licensee shall not earn more than a reasonable net profit on his capital invested. The manufacture of mixed feeds is a business which varies in many respects according to the type of feed, the expense of manufacture, and the rapidity of turnover. There are therefore some manu- facturers to whom a 6 per cent annual net profit may give an unreasonable return on their investment. In sucli case they are obliged to sell at a lower average return. One margin only. — Mixed-feed m.nnufacturers are not allowed directly or indirectly to take any feed dealer's margin on their mixed feed. On feed which they buy and sell without mixing or processing in any manner they may take only the feed dealers' margins, and not that permitted to mixed feed manufacturers. Feed manufacturers may not establish any jobbing de- partment for feeds of their own manufacture in order to obtain additional profits. Blackstrap molasses. The attention of feed manufacturers is called to the fact that refiners and manufacturers of sugar in the United States have been forbidden to sell blackstrap molasses in bulli at more than IS cents per gallon, or in barrels at more than 23 cents per gallon. The iirices named are f. o. b. cars at primary markets or port of entry, or factory, net cash in ten days without discount, and shall include brokerage and any profit taken by distribu- tors in tank cars direct from the refiners, but shall not Include freight or tank car charges. Feed manufacturers should be able to buy blackstrap molasses at the above prices in tank cars, paying in addition thereto only the freight and tank car charges. An additional margin of 10 per cent is permitted to dealers in barrels who handle such barrels through their warehouse. The same rules apply to imported blackstrap molasses. [XXV — H — 1. Sept. 26, 1918. This should be inserted after XXV — G — 1.] H. SPECIAL BEGUIATIONS APPLYING TO DEALERS IN BALED HAY. Rule 1 (effective Oct. 1, 1918). — The licensee shall quote, buy, and sell baled hay by weight in pounds and not by the bale. [XXV— H — 1 (a). Dee. 13, 1918. Substitute this for XXV— H—1.] H. SPECIAL REGULATIONS APPLYING TO DEALERS IN BALED HAY. Rule 1. Baled hay to he quoted, bought and sold iy weight in pounds. — (Repealed Dec. 12, said repeal to become effective Dec. 17, 1918.) [XXV— J— 1. Sept. 26, 1918. This should be Inserted after XXV— H—1.] J. SPECIAL REGULATIONS APPLYING TO RETAILERS OP FEED. Rule 1 (effective Oct. 1, 1918). — Margin over cost of particular feed prescribed on -feeds whose price is stabilized. — No retailer of A'.heat mill feeds, rice polish, rice bran, dried beet pulp, or cottonseed products shall charge more than a reasonable advance over the delivered price of the particular feeds sold. Note. — Under the above rule the Food Administration will consider any margins in excess of those indicated in the following schedule as unreasonable in case of mill feeds, rice feed, and dried beet pulp. These schedules are maxi- mum, and do not justify charges in excess of those customarily charged in any particular district or case where the lower charges will insure a reason- able profit. 1. Where one or more farmers purchase in advance of delivery in full car- loads, take delivery at car and pay cash when retail dealer is required to meet sight draft : $1 per ton, plus demurrage, if any. 2. Where one or more farmers purchase in advance of delivery in full car- loads, take delivery at car and pay for it on delivery : $1.50 per ton, plus de- murrage, if any. 3. Where farmer purchases and takes delivery at car and pays for it on delivery in ton lots or more but less than carlots : $2 per ton. 4. Where farmer purchases and takes delivery at car and pays for it on delivery in lots less than one ton : $2.50 per ton. 5. Sale ex-warehouse in lots of one ton or more: $4 per ton. COLD-STOEAGE LEGISLATION. 793 6. Sale ex-wai-ehouso in lots of less thau one ton : $5 per ton. 7. $1 may be added to the foregoing margins when sale Is made on credit or at dealer's option the legal rate of interest may be charged. ' 8. $1 shall be deducted from the margins prescribed in 5 and 6 when the retailer buys on credit and the jobber's margin is thereby increased $1 a ton Cottonseed products.— The above margins will also apply to the sale of cottonseed meal cake and hulls by retail feed dealers, except where different margins have been prescribed by the Federal food administrator of the State where the dealer is located. Margins and profits for retail dealers in feeding stuffs. — The United States Food Administration considers that in sales of feeding stuffs at retail the advance on any individual sale should not in any case exceed the purchase price delivered at warehouse door, plus 15 per cent. Where delivery is made to the consumer, reasonable cartage charges may be added. The Food Administra- tion will therefore consider any sale of feeding stuffs in excess of this advance as a violation of rule B— 7. This margin also applies to the sale of corn, oats, rye or barley at retail as feed, but not to wheat mill feeds, cottonseed products, rice products, or dried beet pulp, for which special margins are prescribed by the above rule. Furthermore, the Food Administration will consider an annual net earning by any retail dealer of feeding stuffs of more than 6 per cent upon the total gross sales if his gross sales of feeding stuffs amount to $100,000 or more per annum, to be prima facie evidence of a violation of the rule which prohibits the taking of unreasonable profits. This 6 per cent will be calculated on the sales of all feeding stuffs including those specially listed above. Herbekt Hoovee, United States Food Administrator. Exhibit CC. [XXVI — Title. Oct. 16, 1918. Insert this series in your loo.se-leaf binder following XXV (feeding stuffs.) DntECTiONS Regakding the Use of Tin and Othek Oontaineks Adopted by THE United States Food Administration and the 'Was. Industries Board Applying to Manufacturers and Packers of Baking Powder, Ground Spice, Powdered Cocoa, Chocolate, Candy, Coffee, Coffee Substitutes, Te.\, Spaghetti, Pickles, Hominy, Condensed Milk, Salt, Lard and Lakd Sub- stitutes, Macaroni, Sirups, and Molasses. (Effective Oct. 1, 1918.) Owing to the vital necessity for conserving tin plate and paper, the United States Food Administration, at the urgent request of the War Industries Board, has consulted with the various trades using tin and paper containers for food- stuffs. Most of the following directions have been prepared on the recommenda- tions of the trades. Most of the manufacturers are not licensed, but the regula- tions will be enforced in those cases in which the patriotic cooperation of the manufacturer can not be obtained through control over the distribution of the raw materials required. Note. — The within directions, while not license regulations, are similar thereto. The persons affected thereby must observe them, and the Food Administration will enforce them in any cases where such action is necessary. [XXVI — Title (a). Nov. 15, 1918. Substitute this for XXVI— Title.] All the directions (1 to 15) regarding the use of tin and other containers were repealed on November 14, 1918. [XXVI—], 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15.] 1. Baking powder.— No person shall pack baking powder other than cream of tartar baking powder except in packages containing one-quarter pound, one- half pound, 1 pound, or larger amounts, or cream of tartar baking powder except in packages containing 4 ounces, 6 ounces. 12 ounces, or larger amounts. All packages permitted by this rule other than the one-quarter pound, one-half 794 COLD-STORAGE LEGISLATION. pound, or 6-ounce packages may be made of metal, but tbe one-quarter pound, one-half pound, or 6-ounce packages shall not be made of metal, in whole or in part, excepting that they may have tin tops and bottoms. Provided that noth- ing in this rule shall prevent the use prior to February 1, 1919, of stocks of containers on hand, in transit, or in process of manufacture on October 1, 1918. 2. Ground spice. — No person shall pack ground spice, except mustard, in any packages made of metal in whole or in part, nor shall any person pack ground spice except in packages containing 2 ounces, 4 ounces, 8 ounces. 1 pound, or larger amounts. Provided that nothing in this rule shall prevent the use prior to February 1, 1919, of stocks of containers already on hand, in transit, or in process of manufacture on October 1, 1918. 3. Powdered cocoa and chocolate. — No person shall pack powdered cocoa or powdered chocolate in any packages made of metal in whole or in part, nor shall any person pack powdered cocoa or chocolate except in packages con- taining 8 ounces, 16 ounces, 5 pounds, 10 pounds, 25 pounds, 50 pounds, 100 pounds, or larger amounts. Provided that nothing in this rule shall prevent the use prior to February 1, 1919, of stocks of containers already on hand, in transit, or in process of manufacture on October 1, 1918. 4. Candy and crackers.^No person shall pack candy or crackers in any packages made of metal in whole or In part. Provided that nothing in this rule shall prevent the use prior to February 1, 1919, of stocks of containers already on hand, in transit, or in process of manufacture on October 1, 1918. 5. Coffee and coffee substitutes. — No person shall pack coffee or coffee sub- stitutes in any packages made of metal in whole or in part, nor shall any person pack coffee or coffee substitutes except in packages containing 1 pound, 3 pounds, 5 pounds, or larger amounts : Provided, That nothing in this rule shall prevent the use prior to February 1, 1919, of stocks of containers already on hand, in transit, or in process of manufacture on October 1, 1918. Upon application, special exceptions will be granted to proper cases for soluble coffee and coffee substitutes. 6. Tea. — No person shall pack tea in any packages made of metal, in vhole or in part, other than tea lead, nor shall any person pack tea except in pack- ages containing 2 ounces, 4 ounces, 8 ounces, 16 ounces, or larger amounts. Provided, That nothing in this rule shall prevent the use prior to February 1, 1919, of stocks of containers already on hand, in transit, or in process of manufacture on October 1, 1918. 7. Canned spaghetti. — No person shall pack spaghetti in any packages made of metal in whole or in part after October 15, 1918. 8. Pickles. — No person shall pack pickles in any packages made of metal in who'e or in part, except for metal tops on glass containers : Provided, That nothing in this rule shall prevent the use prior to November 1, 1919, of stocks of containers already on hand, in transit, or in process of manufacture on October 1, 1918. 9. Condensed and evaporated milk. — No person shall pack condensed or evaporated milk except in packages containing 14 ounces, 15 ounces, 1 pound in tall can, 2 pounds in hotel-size can, or 8 pounds in confectioner's-size can: Provided, That nothing in this rule shall prevent the use prior to February 1, 1919, of stocks of containers a'ready on hand, in transit, or in process of man- ufacture on October 1, 1918. 10. Salt. — No person shall pack salt in any packages made of metal, in whole or in part, nor shall any person pack sack salt except in sacks containing 5 pounds, 10 pounds, 25 pounds, or larger amounts. When packing in barrels, iron hoops shall be eliminated as far as possible ; at least two wooden hoops shall be used and not more than four steel hoops per barrel: Provided, That nothing in this rule shall prevent the use prior to February 1, 1919, of stocks of containers already on hand, in transit, or in process of manufacture on October 1, 1918. 11. Macaroni, spaghetti, and noodles. — ^No person shall pack macaroni, spa- ghetti, or egg noodles in any packages made of metal, in whole or in part, nor shall any person pack macaroni or spaghetti except in packages containing 8 ounces, 16 ounces, 10 pounds, 22 pounds, or larger amounts, nor egg noodles except in packages containing 4 ounces, 8 ounces, or larger amounts. 12. Sirups and molasses. — No person shall pack any style of sirups or molasses except in packages known as size 2i, 5, and 10, and 5 gallons or larger packages ; Provided, That nothing in this rule shall prevent the use prior to February 1, 1919, of stocks of containers on hand, in transit, or in process of manufacture on October 1, 1918. COLD-STOEAGE LEGISLATION. 795 13. Lard and lard su'bstitutes.— No person shall pack lard or lard substi- tutes for domestic use In container^ made of metal, in whole or in part of P°''^-i^^°r^?''f ^*f^f' "^"'ly.' ®"1?^'' 2. 4, and 8 pounds or 2, 5, and 10 pounds: Promded That nothing in this rule shall prevent the use prior to February 1 1919, of stocks of containers on hand, in transit, or in process of manufacture on October 1, 1918. 14. All packages shall be well filled. 15 These directions shall not apply to orders for the United States Army or Navy. •' Exhibit DD. ^■^^^'?^™„V.®- ^'^*- ■^*' P\®- ^°^*'"l ^^^^ ««'^le8 in your loose-leaf binder after XXVI (directions to manufacturers and packers using tin and other containers)?] General orders applying to all public eating places. (Efeective Oct. 21, 1918.) It has not been deemed advisable or necessary at the present time actually to license the operation of public eating places, but in cases where the patriotic cooperation of such public eating places can not be secured by other means, the ITnited States Food Administration will not hesitate to secure compliance with its orders through its control of the distribution of sugar, flour, and other food supplies. A failure to conform to any of the following oj-ders will be regarded as a wasteful practice forbidden by section 4 of the food control act of August 10. 1917. Note. — The within, while not license regulations, are similar thereto and will be enforced by the United States Food Administration. [XXVII— Title (a). Dec. 17, 1918. Substitute this for XXVII— Title, and balance of series XXVII.] General Oruers Applying to All Public Eating Places. All outstanding general orders applying to public eating places were repealed December 17, 1918, said repeals to become effective December 23, 1918. General orders 8 and 9 were repealed on December 3, 1918. [XXVII— 1, 2, 3, 4, 5, 6, 7, 8, 9.] General order 1. — No public eating place shall serve or permit to be served any bread or other bakery product which does not contain at least 20 per cent of wheat flour substitutes, nor shall it serve or permit to be served more than 2 ounces of this bread, known as Victory bread, or If no Victory bread is served, more than 4 ounces of other breads (such as corn bread, muffins, Boston brown bread, etc.). Sandwiches or bread served at boarding camps, and rye bread containing 50 per cent or more of pure rye flour are excepted. General order 2. — No public eating place shall serve or permit to be served bread or toast as a garniture or under meat. General order 3. — No public eating place shall allow any bread to be brought to the table until after the first course is served. General order y/.— No public eating place shall serve or permit to be served to one patron at any one meal more than one kind of meat. For the purpose of this rule meat shall be considered as including beef, mutton, pork, poultry, and any by-products thereof. ., ^ ^ i General order 5.— No public eating place shall serve or permit to be served any bacon as a garniture. .j. j. -l. , General order 6.— No public eating place shall serve or permit to be served to any one person at any one meal more than one-half ounce of putter General order 7.— No public eating place shall serve or permit to be served to any one person at any one meal more than one-half ounce of Cheddar, com- monly called American, cheese. . Gpirrnl order S —No public eating place shall use or permit the use of the sufar bo4l on the table'^or lunch counter. Nor shall any public eating place serve sugar or permit it to be served unless the guest so requests and in no Ivent sSIll the amount served to any one person at any one meal exceed one teaspoonful or its equivalent. 137690—19 51 796 COLD-STOKAGE LEGISLATION, General order 9.— No public eating place shall use or permit the use of an amount of sugar in excess of 2 pounds for every 90 meals served, including all uses of sugar on the table and in cooking, excepting such sugar as may be allotted by the Federal food administrators to hotels. [XXVII— 1, 2, 3, 4, 5, 6, 7, 8, 9 (a) . Oct. 25, 1918. Substitute this for XXVII— 1, 2, 3, 4, 5, 6, 7, 8, 9.] General order 1 (as amended Oct. 25, 1918).— No public eating place shall serve or permit to be served any bread or other bakery product which does not contain at least 20 per cent of wheat-flour substitutes : Provided, however, That crackers containing at least 10 per cent of wheat-flour substitutes may be served. Nor shall any public eating place serve or permit to be served more than 2 ounces of such bread, known as Victory bread, or if no Victory bread is served, more than 4 ounces of other breads (such as corn bread, muffins, Boston brown bread, etc.). This order does not apply to sandwiches, bread served at boarding camps, or to rye bread containing 50 per cent or more of pure rye flour. General order 2. — No public eating place shall serve or permit to be served bread or toast as a garniture or under meat. General order 3. — No public eating place shall allow any bread to be brought to the table until after the first course Is served. General order k- — No public eating place shall serve or permit to be served to one patron at any one meal more -than one kind of meat. For the purpose of this rule meat shall be considered as including beef, mutton, pork, poultry, and any by-products thereof. General order 5. — No public eating place shall serve or permit to be served any bacon as a garniture. General order 6. — ^No public eating place shall serve or permit to be served to any one person at any one meal more than one-half ounce of butter. General order 7. — No public eating place shall serve or permit to be served to any one person at ony one meal more than one-half ounce of Cheddar, com- monly called American cheese. General order 8. — No public eating place shall use or permit the use of the sugar bowl on the table or lunch counter. Nor shall any public eating place serve sugar or permit it to be served unless the guest so requests, and in no event shall the amount served to any one person at any one meal exceed one teaspoonful or its equivalent. General order 9.^-No public eating place shall use or permit the use of an amount of sugar in excess of 2 pounds for every 90 meals served, including all uses of sugar on the table and in cooking, excepting such sugar as may be allotted by the Federal Food Administrators to hotels. [XXVII— 1, 2, 3, 4, 5, 6, 7, 8 (b). Nov. 28, 1918. Substitute this for XXVII— 1, 2, 3, i, 5, 6, 7, 8, 9 (a).] General order 1 (as amended Nov. 22, effective Dec. 1, 1918.) — ^No public eating place shall serve or permit to be served more than 2 ounces of wheat bread, or if no wheat bread is served, more than 4 ounces of other breads (such as corn bread, muffins, Boston brown bread, etc. ) . This limitation does not apply to bread served at boarding camps, to rye bread containing 50 per cent or more of pure rye flour, or to sandwiches. General order 2. — No public eating place shall serve or permit to be served bread or toast as a garniture or under meat. General order 3. — ^No public eating place shall allow any bread to be brought to the table until after the first course is served. General order li (as amended Nov. 22, effective Dec. 1, 1918). — ^No public eating place shall serve or permit to be served to one patron at any one meal more than one meat course. For the purpose of this rule, meat shall be con- sidered as including beef, mutton, pork, poultry, and any by-products thereof. This rule does not prevent the serving of hash, goulash, meat cakes, meat pies, club sandwiches, liver and bacon, chicken with Virginia ham, or other dishes containing two or more kinds of meat. General order 5. — No public eating place shall serve or permit to be served any bacon as a garniture. General order 6. — No public eating place shall serve or permit to be served to any one person at one one meal more than one-half ounce of butter. COLD-STORAGE LEGISLATION. 797 [XXVII-l, 2, 3, 4, 5, 6, 7, 8 (c). Dec. 4, 1918.^ Substitute this for XXVII-1, 2, 3, 4, (icnerni onhr 1 (as amended ^'ov. 22, efeective Dec 1 IQIS^ ivn r.„hn„ eating place shall serve or permit to be seized more tLn 2 ounc^ of S bread, or it no wheat bread is served, more than 4 ounces of other breads (such as corn bread, muffins, Boston brown bread, etc.). This limitation does not^apply to bread served at boarding camps, to rye bread contSg 50 nl? cent or more of pure rye flour, or to sandwiches i-ouiainmg ou per h.f ''^"1™! "''f *■ ^■~^*' -P'"''"^ ^^"''S place shall serve or permit to he served bread or toast as a garniture or under meat « seiveu t.'?i^r/'"K,'"''*T-,^-T.^''.^"^L"' ^''^^^ Pl^'^*' ^l^all a""^ any bread to be brought to the table until after the first course is served uiuufeut GciierrtZ orrfer ^ (as amended Nov. 22, effective Dec. 1, 1918).— No public eating place shall serve or permit to be served to one patron at any one meal more than one meat course For the purpose of this rule, meat shall be con- sidered as including beef, mutton, pork, poultry, and any by-products thereof. This rule does not prevent the serving of hash, goulash, meat cakes, meat pies, club sandwiches, liver and bacon, chicken with Virginia hain, or other dishes containing two or more kinds of meat. General order 5.— No public eating place shall serve or permit to be served any bacon as a garniture. General order 6.— No public eating place shall serve or permit to be served to any one person at any one meal more than one-half ounce of butter General order 7.— No public eating place shall serve or permit to be served to any one person at any one meal more than one-half ounce of Cheddar, com- monly called American, cheese. General order 8. — (Repealed Dec. 3, 1918.) [XXVII— 1, 2, 3, 4, 5, 6, 7, 8, 9. Oct. 22, 1918. Insert this after XXVII— 1, 2 3 4 5, 6, 7, 8, 9.] ' ' ' Note to general order 1. — While this order provides that no public eating place shall serve or permit to be served any bread or other bakery product which does not contain at least 20 per cent of wheat-flour substitutes, it was not the intention to prohibit the service of any bakery products made in ac- cordance with Special License Regulations No. XIII governing manufacturers of bakery products. By consulting the bakery regulations it will be noticed that bread and rolls, sweet yeast dough goods, biscuits and cookies, cakes, pies, and fried cakes, and pastry, must contain 20 per cent of wheat-flour substitutes, and quick breads, Boston brown bread, batter cakes, and waffles must contain 50 per cent of wheat flour substitutes, but that crackers need only contain 10 per cent of wheat-flour substitutes. Therefore, in administering the general orders do not interpret general order 1 to mean that crackers that do not con- tain 20 per cent of substitutes can not be served. Crackers that contain 10 per cent of substitutes may be served. The cracker manufacturers, of course, are only inakln£: crackers that contain 10 per cent of substitutes. General order 10. — No public eating place shall burn any food or permit -any food to be burned and all waste shall be saved to feed animals or reduced to obtain fats. General order 11. — No public eating place shall display or permit to be dis- played food on its premises In any such manner as may cause its deterioration so that it can not be used for human consumption. General order 12. — ^No public eating place shall serve or permit to be served what is known as double cream or cream de luxe ; and in any event, no cream containing over 20 per cent of butter fat shall be served. 798 COLD-STORAGE LEGISLATION. tXXVII— 9, 10, H, 12 (a). Nov. 26, 1918. Substitute this for XXVII— 9, 10, 11. 12.] General order (as amended November 22, effective December 1, 1918). — No public eating place shall use or permit the use of an amount of sugar in excess of four pounds for every 90 meals served, Including all uses of sugar on the table and in cooking, excepting such sugar as may be allotted by the Federal food administrators to hotels holding a bakery license. No sugar allotted for this special baking purpose shall be used for any other purpose. General order 10. — No public eating place shall burn any food or permit any food to be burned and all waste shall be saved to feed animals or reduced to obtain fats. General order 11. — ^No public eating place shall display or permit to be dis- played food on its premises in any such manner as may cause its deterioration so that it can not be used for human consumption. General order IZ. — No public eating place shall serve or permit to be served what is known as double cream or cream de luxe ; and in any event, no cream containing over 20 per cent of butter fat shall be served. [XXVII— 9, 10, 11, 12 (b). Dec. 4, 1918. Substitute this page for page XXVII— 9, 10, 11, 12 (a).] General order 9. — (Repealed December 3, 1918.) General order 10. — No public eating place shall burn any food or permit any food to be burned, and all waste shall be saved to feed animals or reduced to obtain fats. General order 11. — No public eating place shall display or permit to be dis- played food on its premises in any such manner as may cause its deterioration so that it can not be used for human consumption. General order 12. — No public eating place shall serve or permit to be served what is known as double cream or cream de luxe ; and in any event, no cream containing over 20 per cent of butter fat shall be served. [XXVII — Note. Oct. 21, 1918. Insert this after XXVII — 9, 10, 11, 12.] Note. — The following statement was Issued on October 15, 1918, to State hotel chairmen in connection with the general orders governing public eating places : Tou have doubtless had a chance by this time to familiarize yourself with the contents of the war program for public eating places, a proof of which was sent you on September 27, and which has since been made public through the press. As a number of inquiries have reached us from State hotel chairmen relative to certain of the rules and regulations it seems desirable that we should define some of them. The introduction by Mr. Hoover, preceding the general plan explains briefly and convincingly why there should be a greater reduction in the general con- sumption of food, and this it is not necessary for the hotel, restaurant, dining car and steamship division to emphasize. You have noted, undoubtedly, that in addition to the general plan, the Food Administration has issued 12 general orders for public eating places. These are mandatory and, as announced, a failure to conform to any of them will be regarded as a wasteful practice for- bidden by section 4 of the food control act of August 10, 1917. None of these orders, we believe, entails an actual hardship. That they are "orders" and not simply "requests" will be appreciated by those patriotic hotel and restaurant men of the country who have hitherto given the Food Admin- istration their hearty cooperation and who realize that for others orders are necessary. They should be read carefully. General order 1 repeats a part of the baking regulations, which have been slightly revised. You will note that there is no limit on the number of sand- wiches that may be served. This exception to the old rule has been made be- cause so many persons, particularly patrons of lunch counters, make one daily meal entirely of sandwiches and a substitute seems diflScult to find. Because of the necessity of providing suitable diet for workmen who are engaged in certain occupations, it has been deemed wise to remove the quantity restriction from bread served in boarding camps and places where men are engaged in hard physical labor. The "rye bread containing 50 per cent or more of pure rye flour" refers to certain kinds of bread served In Jewish restaurants where the principal part of the meal consists of this bread. COLD-STORAGE LEGISLATION. 799 General order 2 does away with the service of bread or toast as a garniture or under meat. This does not forbid the serving of poached eggs or chipped beef on toast. It is meant particularly to cover the wasteful practice of serv- ing bread or toast, not to be eaten, but to make the dish look attractive. General order 3 will insure that patrons of public eating places will not eat a lot of bread that they do not require. General order 4 means, of course, that liver and bacon, mixed grills, mixed cold meats, breast of chicken with Virginia ham, club sandwiches or any dishes which contain two or more kinds of meats shall not be served, but does not forbid the service of ham and eggs or bacon and eggs. General order 5 will prevent the use of bacon as a dressing or accompaniment of any kind of meat or poultry. General order 6 is to be construed literally, as is general order 7. Under the latter, Welsh rarebits can not be served. General order 8 has been found necessary because many restaurants have been reported as keeping the sugar bowl on the table, and in spite of the two pounds per ninety meals allotment, permitting patrons to help themselves. General order 9 emphasizes the sugar allotment rule. With regard to general order 10, complaint has reached us that certain public eating places have been unable to And any way of disposing of their waste to hog breeders or to garbage reduction plants. In cases where this may be true. Federal food administrators should be notified. General order 11 is due to the fact that many restaurants and many caterers display food in their windows and elsewhere for no purpose except as an adver- tisement of what is sold inside. This has resulted in complaints to the Food Administration that vast quantities of such food so displayed are wasted. General order 12 is issued because of the necessity for conservation of fats. In the general plan are a number of requests which are not duplicated in the general orders. With regard to the service of cereals, for instance, it has been deemed wise not to issue positive instructions. The request is made, however, that they be served sparingly and conserved as much as possible. It is necessary to call particular attention to the paragraph on meats. The latter part of it you will notice reads that "if patrons desire it, 1 mutton chop, 1 lamb chop, 1 veal chop, or 1 pork chop should be served to an order, and reduced portions of ham and bacon should be served. Prices should be adjusted accordingly." This does not mean that a portion shall consist of only 1 mutton chop, 1 lamb chop, etc. It does mean that if you are serving more than 1 mutton chop, 1 lamb chop, etc., the patron may call for only one. If your portions of ham and bacon are large, the patron may call for a reduced portion. Many com- plaints have reached the Food Administration which have criticized the service of too generous portions, particularly of these two kinds of meats. Of course, it should be understood that when 1 mutton chop, 1 lamb chop, etc., or a reduced portion of ham or bacon is served, the prices should be adjusted ac- cordingly. [XXVII — Note (1). Not. 1, 1918. Insert this page after page XXVII — Note.] The following statement was issued on October 30, 1918, to state hotel chair- men in regard to the general orders governing public eating places : Your attention is called to the following modifications and interpretations of general orders for public eating places : General order 4. — The intention in framing this rule was to cut down the consumption of meats in general without at the same time causing waste or eliminating from the daily menu certain combinations of scrap meats or cer- tain varieties of meat by-products generally eaten in combination with what might be called outside meat. The Food Administration has decided to make a liberal interpretation of general order 4, after a careful consideration of requests that have reached it from all parts of the country, and you will note that mince pie, larded sweet- breads, larded filet of beef, hash, goulash, meat cakes, meat pies, and similar dishes containing two or more kinds of meats (scraps and trimmings) may be served without violating the order; also that liver and bacon, mixed griU as- sorted cold meats, chicken and Virginia ham, club sandwiches and a variety of sandwiches containing different meats may be sold at one time. ?™nection with general orders 1 and 2. while toast as a garniture is for- bidden, toast may be used under poached eggs, chipped beef, chicken hash, etc., 800 COLD-STOEAGE LEGISLATION. without affecting the service of 2 ounces of Victory bread or four ounces of quick breads which may be served at the same meal. Wheat cakes, griddle cakes, buckwheat cakes, and waffles may also be served in addition to the regu- lar bread allowance, as may pies, pastry, etc. Crackers containing 10 per cent of wheat flour substitutes may be served. General order 6.— While it is insisted that no more than one-half ounce of butter shall be served at the table to any one person at any one meal, this drder does not affect buttered toast or any butter sauces, which are commonly used in all first-class hotel and restaurant kitchens. It is requested, however, that hotels and restaurants use the least possible quantity of butter in cooking and making sauces. General order 7. — Tour attention is called to the need for enforcing the rule against the service of more than one-half ounce of Cheddar, commonly called American cheese. Strict observance of this general order will necessitate giv- ing up the service of Welsh rarebits. With reference to general order 12 : This applies only to service of cream on table, including whipped cream, but according to an amendment to Rule 1 of Special License Regulations, No. XXII, hotels as well as other manufacturers may purchase heavy cream. Exhibit EB. [XXVIII— A— 1, 2, 3. Nov. 26, 1918. Insert this st'i-les, consisting of this and XXVIII— B— 1, 2, 3, 4, after series XXVII.] Special Regulations Govebninq Licensees Engaged in Business as Gen- eral Stokage Waeehousemen. Effective December 1, 1918. A. DEFINITIONS. 1. General storage warehouse. — A general storage warehouse shall mean any building, portion of a building, or yard in which general merchandise is stored. 2. Public general storage warehousemen. — ^Any individual, firm, corporation, or association engaged in the business of maintaining and operating a general storage warehouse for hire or compensation shall be called a public general storage warehouseman. 3. Public and private general storage warehousemen. — ^Any individual, firm, corporation, or association which combines a public general storage warehouse business with the storage of commodities which directly or indirectly it owns, deals in, or otherwise has an interest in, or the storage of commodities which are owned, dealt in, or in which an interest is held by any individual, firm, cor- poration, or association which directly or indirectly controls its operation, shall - be called a public and private general storage warehouseman. Note 1. — Under definition 3 a warehouseman making advances tfn goods in his warehouse shall not be considered as thereby acquiring an Interest in said goods. Note 2. — When a person rents a room or rooms from a general storage ware-' houseman and the latter has no control over the goods stored therein, the lessee and not the owner of the warehouse is deemed to be the warehouseman in respect to the particular space rented. [XXVIII— B—l, 2, 3, 4.] » B. Reguations Governing General Storage Warehousemen. Rule 1. Unreasonable charges prohibited. — ^The licensee shall not store, dis- tribute, or otherwise handle any commodities on an unjust, exorbitant, unrea- sonable, discriminatory, or unfair warehouse charge. Note. — ^A car lot shall be the storage unit, and any discount from a car-lot rate for a quantity in -excess of a car lot will be regarded as discriminatory. " Car lot " as above used means a carload as prescribed by the official rail- road classification. Rule 2. Otonership or dealing in stored goods by public general storage ware- housemen prohibited. — ^No public general storage warehouseman shall either directly or indirectly own or deal in any commodities stored in any public COLD-STOBAGB LEGISLATION. 801 general storage warehouse, except commodities that are legally acquired for charges or advances made. Note. — A general storage warehouseman does not have to have a wholesaler's or jobber's license to sell stored goods in order to protect a lien on said goods acquired for advances or charges. EtTLE 3. Warehouse receipts must indicate when licensee is acting as public and private general storage warehouseman. — Licensees who are classified as public and private general storage warehousemen shall clearly indicate the dual capacity on all warehouse receipts issued. RijLE 4. Only food in good condition to be stored. — The licensee shall not receive for storage or keep in general storage warehouse any food products which are apparently diseased, tainted, or otherwise unfit for human con- sumption. 802 COLD-STOKAGB LEGISLATION. 'S ^ >^ h ^ tci 6h H 00 e ■*a ^ 00 ft ■w «■> K t) 05 •a ■d g J5 s o I a o as ■0.2 5 « 8"- .g— r ^ p4 a> <-H in io ro o to CO 00 Ol WUStH ,■* I> t* [^ C^l ■* ■* 00 r- CO w iH Sis '_^ CM CO R^ &a 5 0cScDO>lSc ooooc-eor-tmcD CgoO^t-M^OOiHrHt-m* cOcoo>coo«ccooioi^?4a> oo eoomcoiHcD 0>^H en ^^-^o -* o lO rt i Jlllltsg 804 OOLD-STOBAGB LEGISLA.TIOB". Statement of expenditures and classification of expenses hy the United States Food Administration from the appropriation " Salaries and expenses, 1919," for the period ending Dec. 31, 1918. [Salaries and expenses, 1919, $7,600,000.] Total expenditures to date : July. $341, 496. 21 August 389, 010. 58 September 454, 593. 00 October 899,343.19 November 847, 6T1. 55 December 458,466.03 Total expenditures 3,390,580.56 Summary of expenditures : Permanent employment 2, 122, 313. 54 Temporary employment 31, 299. 89 Traveling expenses 354,599.68 Freight, express, etc 6,310.92 Communication 55, 229. 32 Printing and binding 539,477.05 Miscellaneous services 17, 945. 77 Stationery 116, 230. 78 Supplies 46, 422. 02 Equipment : 58, 910. 66 Rent 41, 840. 93 Total 3, 390, 580. 56 Total disbursements as per abstract 2, 010, 204. 67 Direct settlements by auditor for State and other departments 32, 789. 47 Total disbursements and direct settlements 2, 042, 994. 14 Less recoveries 954. 15 Net total disbursements and direct settlements 2,042,039.99 Liabilities outstanding 1, 348, 540. 57 Total expenditures 3, 390, 580. 56 Statement of expenditures and classification of expenses by the United States Pood Admimstration from the appropriation under act of Aug. 10, 1917, and deficiency appropriation under act of Mar. 28, 1918. [Salaries and expenses, 1918, $4,250,000.] Disbursements as per abstract : January $138, 628. 51 February , 146, 388. 67 March 177, 912. 22 April 296, 679. 04 May 360, 028. 49 June 341, 616. 17 July 256, 682. 69 August 111, 017. 08 September 60, 513. 83 October 48, 471. 99 November 39, 235. 43 December 13, 996. 16 Total disbursements 1, 991, 170. 28 Direct settlements by Auditor for State and Other Departments 60, 805. 63 Outstanding obligations 8, 585. 17 Total disbursements and direct settlements 2, 060, 561. 08 Less recoveries . 3, 448. 28 Net total expenditures 2, 057, 112. 80 COLD-STORAGE LEGISLATION. 805 Classification of expenses: Permanent employment __' Temporary employment Z__Z_ I _ _ * ' ' ^^- ^^ Traveling expenses _" _I_"_I ^^' ^'^^' ^^ Freight, express, etc "~_I I___~ZIZ '^^^' ^^^' ^*^ P?Sff Sd^Unr^'- "^"^^^^^^^^^^^^^ S «'o: 33 SSrT-fl'l'^ll!!^.^^^^ 'S m 05 Miscellaneous supplies- -^^I' ^'^^- ^^ Equipment 80. 398. 38 Rent- - 188,062.79 — _ ^ 47,930.90 Total - ~~ 2, 057, 112. 80 Statement of expenditures and classification of exoenipt hi, the n«Ate^ cf„* FoofAdmrnistration from tKe allotment ^y tkepltZln'Vont mTafpfofna rNatlonal security and defense, Food Administration, educational, $2,000,000.] Disbursements as per abstract: February ^^^^' 971. 66 March 124, 944. 57 \DrU 273, 957. 32 AInv 168, 003. 03 June S4' 038. 46 .luly 3°' ^3^- 5^ Augusrzzzzzzzzzzzzzzzzzzzzzzz H' ^?^- ^ September ZZZZZZZZZ 1?' 539 S October s'27qm November ^ 02SQfi December ZZZZZZZZZZZZZZZZZZ l', $t ^5 Total disbursements __ 933 190 53 Direct settlements by Auditor for State and Other DepartmentsZ' 7l' 535' 21 Outstanding obligations 2' 347' 21 Total disbursements and direct settlements 1, 012 072 95 Less recoveries ' ' 14I30 Net total expenditures 1,012,058.65 Summary of expenditures : Permanent employment 246, 457. 57 Tempprary employment 16, 508. 6b Traveling expenses 64,414. 85 Freight, express, etc 20, 873. 38 Communication 14, 610. 56 Printing and binding 416, 331. 33 Miscellaneous services 47, 412. 04 Stationery 60, 541. 22 Supplies 60, 940. 82 ' Equipment 53,680.93 Rent 10, 287. 29 Total 1,012,058.65 806 COLD-STORAGE LEGISLATION. Statement of eaipenditures and classification of expenses by the United States Food Administration from the allotment hy the President from the appro- priation " National security and defense, 1918," for the period ending Dec. SI, 1918. [Executive preliminary expenses, 1918, $340,000.] Disbursements as per abstract : January $2, 447. 17 February 3, 878. 26 March 1, 772. 34 April 383.71 May 226.68 June 1, 145. 50 July . 43 September 136.93 October 346.49 November ^ 54.75 December 112.30 Total disbursements 10, 504. 56 Direct settlement by auditor for State and Other Departments 5, 865. 64 Outstanding obligations 4. 85 Total disbursements and direct settlements 16, 374. 55 Less recoveries 32. 54 Net total expenditures 16, 342. 01 Classification of expenses : Temporary employment 722. 50 Traveling expenses 29. 36 Transportation, freight, express, drayage, etc 124. 37 Communication, telegraph, telephone, etc 36.96 Printing and binding 5, 541. 43 Miscellaneous services other than personal 518. 28 Stationery 1, 438. 07 Miscellaneous supplies 1, 381. 02 Equipment 6, 550. 02 Total 16, 342. 01 Statement of expenditures and classification of expenses hy the United States Food Arministration and United States Fuel Adminisration from the allot- ment hy the President from the appropriation " National security and de- fense, 1918," for buildings for the year ending Dec. 31, 1918. [National security and defense. Food and Fuel Administration building, $600,000.] Itisbursements as per abstract : .January $46, 757. 10 •February 46, 304. 90 March 88, 690'. 18 April .. 52, 888. .53 May 52, 920. 59 .Tune 15, 839. 94 July 1.012.00 Total disbursements 304, 413. 24 Outstanding obligations 21,705.94 Total expenditures 326, 119. 18 Summary of expenditures : Miscellaneous services, other than personal — Architectural services , 8, 367. 40 Construction 311, 666 12 820, 033. 02 Supplies 6, 085. 66 Total 326, 119. 18 COLD-STORAGE LEGISLATION. 807 Statement of expenditure and classifioation of expenses l)y the United States Food Administration from the allotment hy the President from the appro- priation "National security and defense, 1918, for foreign service purposes for the year ending Dec. 31, 1918." [National security and defense, Food Administration, foreign service, 1918, $50,000.] Disbursements as per abstracts : April $324. 20 May 150. 28 July 775. 91 August 54. 23 Total disbursements 1, 304. 62 Outstanding obligations i 1, 289. 55 Direct settlement by Auditor for State and Other Departments.- 16, 364. 32 Disbursements by W. E. Slattery 313. 12 Total net expenditures 19, 271. 61 Summary of expenditures: Traveling expenses 17, 366. 94 Miscellaneous services 1, 754. 89 Communication % 150. 28 Total 19, 271. 61 Statement of expenditures and classification of expenses hy the United States Food Administration from the allotment by the President from the appro- priation "National security and defense, 1919, for traveling expenses of the foreign service of the Food Administration, year ending Dec. 31, 1918." [National security and defense. Food Administration, traveling expenses, foreign service, 1919, $25,000.1 Disbursements as per abstracts: October $34. 90 November , 531. 27 Total disbursements 566. 17 Classification of expenses, traveling expenses — 566.17 Report of disbursements made by auditor's settlements ($150,000,000) under ap- propriation " Control food and fuel " act of Aug. 10, 1917, public No. 4I, during July and August, 1918, fiscal year 1918. [Congressional appropriations.] Payable to — CertiSpate of settlement from Auditor for State and Otlier Departments in favor of: Food Administration Grain Corporation- Miscellaneous settlement and claims Do Do. Do. Do. Do. Do. Do. Do. Total direct settlements . Date. July 3 July 11 July 24 Aug. 1 Aug. 14 Aug. 20 Aug. 22 Aug, 26 Aug. 27 Voucher No. 16003 16040 16109 16169 16239 16262 16277 16291 16297 Amount, $10,000,000 10,000,000 10,000,000 10,000,000 10,000,000 10,000,000 10,000,000 10,0001000 .20,000,000 100,000,000 808 COLD-STOEAGE LEGISLATIOH". Report of disbursements 'made by auditor's settlement ($6,000,000) from allot- ment bi; the President from the appropriation rmtional security and defense, 1919. [National security and defense, Food Administration Grain Corporation.] DSte. Voucher No. Amount. Certificate of Settlement from Auditor for State and Other Departments in favor of: Food Administration, Grain Corporation, miscellaneous settlements and claims Deo. 21 19,000,000 Exhibit GG. Food Administration Grain Corporation statement of receipts and disbursements for the year ended Deo. SI, 1918. BECEIPTS. Sales : Barley $8, 147, 433. 24 Beans '_ 18, 926, 642. 71 Butter oil 1, 247, 380. 20 Cere&l products 15, 439, 296. 04 Corn ' 813, 438. 06 Flour 397, 969, 647. 52 Peas 1, 769, 109. 56 Rice 11, 661, 896. 83 Rolled oats 217, 873. 22 Rye . 18, 759, 341. 29 Seed ^ 3, 571. 30 Wheat : . 818, 450, 228. 73 Miscellaneous commodities — Commission for relief in Belgium 29,010,999.71 European relief 6, 146, 732. 94 Other receipts: Miscellaneous earnings 14,456, 449. 86 Guaranty and operating expense fund 8, 540, 457. 73 Interest . 638, 591. 77 Accounts payable 42, 721, 172. 79 Accounts receivable 4, 314, 634. 76 Notes and acceptances payable 230,504,500.00 Loan from Allies 200, 000, 000. 00 Capital stock subscriptions 100,000,000.00 Reserve for insurance 262, 627. 65 Total receipts 1, 930, 002, 025. 91 Cash balance from preceding year 10, 745, 232. 76 1, 940, 747, 258. 67 DISBURSEMENTS. Purchases : Barley 15, 342, 483. 58 Beans 25, 623, 205. 69 Butter oil . 1, 121, 911. 13 Cereal products . 18, 650, 207. 15 Corn 1, 233, 310. 83 Flour 437, 421, 774. 10 Peas_ - 2,288,174.43 Rice 111- 15,556,346.85 Rolled oafs . 229, 934. 95 Rve • 40,846,019.66 Seed- "' "_ - 3,571.30 Wheat""- . 1, 085, 730, 861. 92 Miscellaneous commodities — Commission for relief in Belgium 55,497,562.57 'European relief 10, 950, 748. 26 COLD-STOBAGE LEGISLATION. 809 Other disbursements: Interest on. notes payable $133 333 33 Discount on notes and acceptances payable 3 349' 248 45 Miscellaneous interest paid ' 30' 409' is Insurance on reserve wheat stocks 2* 445 30 Handling and storage I 2 72?' 350 87 Marine insurance loss ' 4' 431 20 Operating expense (per schedule attached)^ I I 1,794*274 00 Notes and acceptances payable II4' 995* 000 00 Accounts receivable 34] 359,' 257! 32 Accounts payable 5_ 020, 924. 74 Office furniture and equipment 83 819. 03 Total disbursements 1, 873, 506, 605. 84 Cash balance to succeeding year 67, 240 652. 83 1,940,747,258.67 AUDITOB'S CEKTinCATE. We have examined the books and accounts of the general office of the Food Administration Grain Corporation, and we hereby certify that the above state- ment of receipts and disbursements, prepared therefrom, is correct and properly vouched. M. M. Banks & Co., Chartered Accountants. New York, January 20, 1919. Food Administratio^i drain Corporation schedule of operating expense for the year ended Dec. SI, 1918. General office. Agencies and departments. Total. Auditing Collection fees European expense E xcbange Insurance Legal Market reports, news service, and periodicals Office supplies Postage Rent. Bepair and alteration Salaries Stationery and printing. . . Sundries Telephone and telegraph.. Traveling Taxes Total. $16,729.09 moo' 911.72 8,879.37 1,386.29 11,462.28 6,036.21 38,436.12 3,338.66 289,474.03 28,279.90 6,821.04 22,871.49 11,219.25 113,658.17 6, 166. 75 6,327.56 1,594.83 634. 69 25,774.35 22,376.56 66,736.86 1,287.23 905,912.33 103,823.77 35,937.58 76, 157. 83 79,600.31 4,589.73 $30,387.26 6,166.75 800.00 6,327.56 2,506.55 5,879.37 2,020.98 37,236.63 28,412.77 106,172.98 4,675.89 1,195,386.36 132,103.67 42,758.62 99,829.32 90,819.56 4,689.73 443,696.45 1,350,678.65 1,794,274.00 Statement of purchases and disposition of property as of Dec. 31, 1918. Balance from preceding year $42, 270, 924. 12 Property purchased: Commodities purchased $1, 707, 359, 127. 32 Requisitioned grain and flour replaced or paid for 3; 146, 985. 10 Furniture and equipment 83,819,03 1, 71U, ooy, yoi. 4D 1,752,860,855.57 ^'"Sm'omties sold 1' ^24, 618, 659. 07 Requisitioned grain and flour sold — 3, 944, 9dJ. ^» 1, 328, 563, 591. 35 810 COLD-STORAGE LEGISLATION. Property on hand : Commodities $428, 871, 431. 31 Requisitioned flour to be replaced or paid for 4, 737, 690. 14 424, 133, 741. 17 Furniture and equipment 163, 523. 05 $424, 297, 264. 22 Exhibit JJ. Inventory as of Dec. 31, 1918. Amount as shown by the attached sheets $296, 339. 56 Electrical fixtures, etc 3, 349. 48 Shades, etc 3, 300. 00 Miscellaneous equipment 3, 000. 00 Total 305, 989. 04 Article. Num- ber. Unit price. Amount. Addressographs 8 8 $750.00 50.00 J6, 000.0* 400.00 6,182.62 34.50 Box-drawer sections, oak: 3 13 1 1 88 45 86 75 12 1 200 108 45 26 6 43 49 38 24 60 29 1 66 13 8 3 1 11 7 1 13 5 10 26 123 24 24 44 33 392 164 879 1,011 560 11.60 12.50 15.00 15.00 6.00 6.50 3.36 4.00 .75 336.00 3.00 4.00 8.00 10.00 18.00 3.25 5.00 12.00 15.00 5.00 9.00 15.00 3.25 4.26 S.50 12.00 18.00 3.76 6.00 13.60 6.60 18.60 20.60 1.73 1.10 1.60 .60 276.00 400.00 14.00 10.00 10.00 3.60 7.50 162.60 6-drawer . 15.00 15.00 Bookcase sections: Oak 528.00 292.60 Tops - 288.96 300.00 9.00 Blue-printinp machines 336.00 Card Cabinets, oak, 3 by .5: 600.00 2-drawer 432.00 360.00 260.00 10-drawer 108.00 Card cabinets, oak, 4 by 6: 1-drawer 139. 76 2Hirawer 245.00 456.00 6-drawer 360.00 Card cabinets, oak, 5 by 8: 300.00 3-drawer 261.00 16.00 Card cabinets, mahogany, 3 by 5: 1-drawer .... . . . . . ' 214. 50 65.26 4-drawer ^ 68.00 6-drawer . . ■ . - 36.00 18.00 Card cabinets, mahogany, 4 by 6: 41.25 3-drawer 42.00 4-drawer . 13.60 84.50 Check file sections, wood: 92.50 9-drawer 206.00 Brass 44.98 136.30 38.40 12.00 Conrpuflng machines: 12,100.00 13,200.00 6,488.00 1,640.00 Straight... 8,790.00 3 638.60 4 200.00 Bentwood Typewriter COL.D-SXOEAGE LEGISLATION. Inventory as of Dec. 31, 1918 — Continued. 811 Article. Chairs, mahogany: Revolving, with arms Revolving, without arms Straight Bentwood Typewriter Clocks: Wall Desk Costumers: Oak Mahogany Metal. CanJ punches Card record desks, oak Copy holders: Line guide Llne-a-time , Cafeteria equipment Desks, oak, flat-top: Single pedestal, single Single pedestal, double Double pedestal, double Desks, oak, typewriter: Single pedestal Double pedestal Typewnterstands, regular Desks, Imitation mahogany, flat-tbp: Single pedestal, single . Double pedestal, single. Double pedestal, double (3 general). . Desks, Imitation mahogany, typewriter: Single pedestal Double pedestal Typewriter stands, regular Desk baskets, letter size: Wire ' ' Woven metal • Oak Mahogany Desk baskets, legal size: Wire Wo ven metal Oak - Mahogany Dicltionary stands, oak DiotaiCing machines: Ediaon Dictaphone Desk pads, glass: With frame Drawing boards Electric fans: 4-blade 6-blade Electric stoves Emaralite lamps Fire extinguishers, regular Filtag sections, oak, 3 by 6: 5-arawer 9-drawer lO-drawer 15-drawer 18-drawer Filing sections, oak, 4 by 6: 4-drawer 8-drawer Filing sections, oak, 6 by 8: S-drawer 6-drawer 9-drawer Tops Fire axes Folding machines: Power Menteg Flexotypes Fire hooks Graphotypes Num- ber. 161 37 249 3 62 29 5 510 36 196 196 602 7 99 30 34 31 .,785 333 724 143 22 9 267 242 13 10 162 60 6 425 165 3 2 116 4 5 6 33 Unit price. $16.60 11.60 11.60 4.00 8.50 14.-26 6.60 7.00 8.75 3.76 75.00 82.75 2.29 11.00 36. 00 42.50 70.00 38.00 46.00 6.75 43.60 90.00 38.00 45.00 7.60 .26 .72 .70 .76 .25 .77 .75 .95 6.90 97.75 97.75 4.50 4.50 4.50 18.76 19.50 6.50 8.33 11.25 9.00 15.00 16.50 20.00 22.50 10.00 20.00 10.60 15.00 22.00 3.66 3.90 2.60 375.00 280.00 75.00 3.00 360.00 137690—19 52 812 COLD-STOKAGE LEGISLATION. Inventory as of Dec. 31, 1918 — Continued. Article. Goose-nect lamps Inkstand sets, oak: Single I Double Inkstand sets, mahogany, single Inkstand sets, glass, single Letter-opening jnachines, lightning . . . Mirrors: Oak WMte Mimeoscope Multiplex display fixtures Multigraphs, Jiower Mimeographs, power Numbering machines: Lever , Automatic Yardage Oil stoves Punches, paper. Hummer Faper-fastenmg machines: Hotchkiss Hutchinson Spool-0-Wire Aiax Pencil-sharpening machines, Chicago . Punches, paper, Globe Photostat Print trimmers Paper tester Paper-fastening machines, Clipless Bevolving bookcases, oak Rugs, Crex: SbylO 9 by 12 12 by 15 Stools: With back Without back Screens: Oak Mahogany , Storage seotions, oak: Letter Double height Beducing boards , Storage sections, steel, letter Safe cabinets, steel: Green Mahogany Slgnograph Scales - Swinging typewriting stands, oak Saf((S,iron Stencil cases, wood Stationery cabinets: Oak. Shaving mach Edison.. Dictaphoiie Tables, oak: SO-mcb 60-inoh 72.inoh 96-inch.., ,, Others, l(!8-inoh. Tables, mahogany: SO-inch 6a-inch 72-inch 84-inch Others, lOS-inch. Tables, kitchen: Small Large Telephone stands: Oak ; Mahogany Telephone stools: Oak Mahogany Time stamps Num- ber. Unit price. Amount. 80 $3.25 S260.00 89 3.25 289.26 6 3.88 19.40 41 3.38 138.58 127 2.00 264.00 3 225.00 675.00 92 5.00 460.00 5 4.25 . 21.25 3 78.00 234.00 16 45.00 720.00 6 500.00 3,000.00 17 200.00 3,400.00 64 6.00 320.00 15 11.15 167.25 1 27.00 27.00 6 5.50 33.00 37 3.00 111.00 166 1.14 189.24 26 15.00 390.00 1 S.OD 5.00 208 .60 124.80 28 .50 14.00 1 812.00 612.00 8 5.00 40.00 1 100.00 100.00 24 1.15 27.60 1 21.20 21.20 26 8.00 208.00 67 10.00 670.00 15 12.00 180.00 28 10.00 280.00 10 7.00 70.00 6 7.00 42.00 4 8.50 34.00 57 6.50 313.60 U 15.00 165.00 .8 2.50 20.00 8 3.7S 30.00 187 2.93 547.91 4 200.00 800.00 1 150.00 150.00 1 225.00 225.00 12 4.00 48.00 14 3.50 49.00 6 ISO. Co 900.00 35 30.00 1,050.00 32 3.60 112.00 3 3.50 10.60 2 60.00 120.00 5 60.60 300.00 22 22.00 484.00 362 20.00 7,240.00 48 22.00 1,066.00 4 60.00 200.00 1 67.00 67.00 5 28.00 140.00 28 33.00 924.00 3 40.00 120.00 2 60.00 120.00 2 94.00 188.00 138 2.45 338.10 163 2.75 448.25 15 5.65 84.75 20 6.70 134.00 2 3.35 6.70 5 3.67 18.35 15 8.50 127.60 COLD-STOBAGB LEGISLATION. Inventory as of Deo. SI, 1918 — Continued. 813 Article. Typewriters, regular: Underwrood Remington L. C. Smith Royal Telephone braclsets: Straight Hi-Lo Typewriters, other than regular: Remington, 12-inoh L. C. Smith, 26-inch Remington, 20-inoh Remington, wahl Remington, 14-inch L. C. Smith, 20-inch Remington, 18-inoh Monarch, 36-inch Noiseless Corona Underwood, 26-inoh L. C. Smith, 18-inch Underwood, 14-inch Hooven automatic Underwood, 20-inch Monarch, reg Tabulating units: Wood Steel Vertical files, wood, letter size: Oak Mahogany Vertical files, wood, legal size: Oak Mahogany Vertical file ends, wood: Oak Mahogany Vertical files, steel, letter size: Green Mahogany Vertical files, steel, legal size: Green Mahogany Vertical file ends, steel: Green Mahogany Wardrobes: Oak Mahogany Water coolers, oak Waste baskets: Metal Wire Fiber Miscellaneous: Brief sections, mahogany Tengawl punch Card cabiTnet, green steel, 5 by 8, 6-drawer.. Truck base Mailometer Mercury vapor lamps Map sections Top Cash box .' Medicine table Clothes hamper Bed Couch Chairs, straight, porch Fire set Sorting trays Umbrella rack, oak Extension table Do... RoU top desk Multicolor press Boston wire stitcher Chairs, rockers - Porch rockers ; Addressing machines, Elliott Paper cutter Pnnters ' ink attachment Num- ber. 347 137 125 23 617 42 185 38 4 105 271 324 837 2 1 12 1 9 2 3 1 4 2 1 5 7 2 1 9 1 1 2 1 1 ■1 16 2 21 1 1 Unit price. S67. 50 70.00 70.00 58.60 3.50 8.14 73.60 94.60 94.50 346. 00 77.00 85.00 80.50 105. 00 98.50 45.00 103. 50 85.00 81.00 94.95 70.00 48.00 99.00 24.00 30.00 26.00 37.00 4.38 4.76 35.00 37.76 33.00 35.00 4.00 4.75 42.50 46.00 12.00 1.55 .90 1.10 17.60 2.60 20.00 15.00 166. 00 16. 50 26.00 6.00 4.00 3.50 2.50 16.00 12.00 6.00 31.00 16.00 9.00 50.00 60.00 72.80 475. 00 245.00 7.00 7.00 259.00 165.00 80.00 1 And top. COLD-STOEAGE LEGISLATION. Committee on Agriculture, House of Kepresentatives, WasMiigton, D. C, Tuesday, August ^6, 1919. The committee met at 10 o'clock a. m., Hon. Gilbert N. Haugen (chairman) presiding. Present: Members of the committee. Also present : Mr. E. S. French, general manager and secretary of the National League of Commission Merchants of the United States ; Mr. W. M. French, president of the International Apple Shippers' Association ; Mr. Edgar W. J. Hearty, president of the National League of Commission Merchants; Mr. Kaymond G. Phillips, secre- tary of the International Apple Shippers' Association; Dr. Harvey W. Wiley, formerly Chief of the Bureau of Chemistry, United States Department of Agriculture, now manager bureau of food sanitation and health, Good Housekeeping Magazine ; and others. The Chairman. I have called the committee together this morn- ing to reopen the hearings on cold-storage legislation. "We have had a number of requests from interested persons who were unable to be present the past two weeks and who desire to be heard before the committee takes action upon this matter. I feel sure that the com- mittee wishes to hear, so far as possible, everyone affected hj the legislation who desires to appear. I believe it will be possible to hear all the witnesses who have indicated their desire so far during the day and that we will be able to close the hearings permanently this evening, and possibly draft and report a bill embodying the pro- posed legislation within the next week. We have with us this morning Mr. French, Mr. Philhps, and others, representing the apple growers. We will hear from Mr. French first. STATEMENT OF MR. R. S. FRENCH, GENERAL MANAGER AND SECMiTARY OF THE NATIONAL LEAGUE OF COMMISSION MERCHANTS- ALSO REPRESENTING THE INTERNATIONAL APPLE SHIPPERS' ASSOCIATION AND THE WESTERN FRTJIT . JOBBERS' ASSOCIATION OF AMERICA. Mr E S French. I will state for the record, Mr. Chairman, the character of my representation. My name is E. S. French^ i am general manager and secretary of the National I^ag^%«f Commis- fion Merchants of the United States. I also repres^t the Inter- ?atM Apple Shippers' Association and the Western Fruit Jobbers' Association of America. These three organizations are cooperative, nonPoS Organizations, performing the functions of distribution and 816 COLD-STOKAGE LEGISLATION. encouraging production. The combined representations of these three organizations covers the United States, Great Britain, Den- mark, Cuba, Australia, and Canada, the foreign countries being rep- resented in the International Apple Shippers' Association. The National League of Commission Merchants is located prin- cipally east and south of the Mississippi, extending to the Atlantic seaboard and the Gulf. The Western Fruit Jobbers covers part of that territory, but is essentially a western element and membership. Mr. McLaughlin of Michigan. You mean by that the coast States? Mr. E. S. French. The Pacific Coast States; yes, sir. We repre- sent the handling of approximately 750,000 cars of fruits and vege- tables during the year. I will state for the record that these organizations have favpred uniformity in cold-storage legislation. For several years past we have been cooperating and working with the various States, through the commission appointed by the governors for that purpose. In the consideration of cold-storage legislation, by reason of the in- herent and natural limitations, highly perishables as a rule have been exempted in some States, in a gteat rtiany States, which have cold-storage laws. There are three points we want to discuss with you gentlemen: First, limitation ; second, restorage ; and third, marking. By reason of the character of this traffic, its highly perishable nature, its natu- ral limitations, and the fact that it moves so rapidly from the point of production to consumption, and so little of it, taking it as a whole, enters cold storage, we do not feel that there should be any particular limitation or restriction on the time to be held in cold storage. Mr. Tin CHER. Would the time contemplated in this measure be- fore us, say, anywhere froin 10 to 12 months, interfere with you ? Mr. E,. S. French. No, sir; it would not. We Would prefer to have it 12 months, but it is the exception in this industry where goods are held anywhere near that time. Mr. Wilson. Why do you want so long a time for cold storage, then? Mr. R. S. French. Because in this industry there are commodi- ties — we have a sprinkling of butter and egg people in our organi- zation, and poultry people. Mr. Tincher. Just speaking about apples — we have heard from the butter, egg, and poultry people — would a limitation of 10 months affect the apple-storage business at all ? Mr. R. S. French. No; it is not thought that it would. Ten months would be a reasonable time, but we predicate our desire on the fact that 12 months seems to be the limit that most of the States want to adopt and that the Uniform States Commission have recommended. Mr. McLaughlin of Michigan. You speak of some of your prod- ucts being exempted altogether in some of the States. Of course, ' if it were advisable to exempt them, then the question of the length of time they would be held would not be material? Mr. E. S. French. Would not be material. Mr. McLaughlin of Michigan. Would it be convenient for you to tell us what products you are interested in are exempted in other v^vyi^ji-«xv/ivii.vja LEGISLATION. 817 States and why you think they should be in this law, and take up that matter first ? Would that disconcert you or interfere with your statement ? Mr. E. S. French. Not at all; no, sir. Mr. McLaughlin of Michigan. Would not that be advisable then to take up first whether or not they should be exempted ; and if they should be, then the question of the length of time would be a sec- ondary consideration. Mr. E. S. French. In the consideration of this exemption on fruits and vegetables — I refer now i^ore specifically to New fork State — it was felt by the legislators framing that law that they should be exempted as they are to-day under the law, or there is no specific reference made to it as applying to fruits and vegetables. I would like to quote here — it is already a part of the record^the testimony of Mr. Shoemaker, the president of the New York State Cold Storage Association, in part 5 of the hearings. (After a pause.) Mr Shoemaker, however, was referring specifically to the marking clause. I was under the impression that he referred to the exemption, but it refers to the exemption of the marking clause. I thought that part pf his testimopy referred to exemption of fruits and vegetables as to the time limit, but taking it as a whole it would include the other requirements. Mr. TiNCHEE. If we reported a bill of 12 months, you would not need any exemption from the time limit for your fruits and vege- tables? Mr. E. S. French. I did not quite get your question, Congressman. Mr. TiNCHEE. I say if the limit for keeping your products in cold storage were to be 12 months, if that were the period fixed in the bill, you would not ask any exemption from the time limit for fruits and vegetables? Mr. E. S. French. No ; if it was felt necessary by the committee to make the law ?ipply to everyone. Mr. TiNCHER. Now, I understand you ask fo^r an exemption from the rest of the markings? Mr. E. S. French. Yes, sir. Mr. TiNCHER. Your products being different from other prod- ucts to the extent that you, want an exemption. Now what would be the object of that? Mr. E. S. French. We feel, by reason of their staying in cold storage such a short period of time, that it is really an added ex- pense without accomplishing anything, and it would have a tendency to defeat some of the things you are striving to remedy by this bill- that is, to avoid high prices and to reduce the cost of living. You gentlemen know who have anything to do with apples that stamping on " cold storage " enhances their value. Mr. Jones. What would be stamped, the barrel ? Mr. E. S. French. The barrel ; yes, sir. Mr. Jones. That is stenciled, isn't it? Mr. E. S. French. Yes; stenciled on the barrel. Mr. Jones. Do you mean the added labor of puttmg that stencil on, as to the time the goods were received, would add to the cost of the apples? . , ,,. , . , Mr. E. S. French. It would add to the cost of handling, which would naturally be reflected in the cost of the apples. 818 COLD-STOKAGE LEGISLATION. Mr. TiNCHEE. That would be true of any product? Mr. R. S. French. Yes. Mr. Jones. Let us analyze it. Here is a certain overhead in handling cold storage; do you mean to say the fellow who handles a barrel of apples and places them somewhere in storage, because of the fact he is compelled to put a stencil mark on as to the time, is going to add material^ to the cost of the consumer ? Mr. R. S. French. I would not say add to it materially, but I say in the aggregate it would add considerably. Mr. Jones, Half a cent? What, in your opinion, would it add to the barrel of apples, to the cost? Mr. R. S. Fbench. Well, it could only be computed on the cost of the stamp which is nominal., and the man's time which it takes to put it on. Mr. Jones. Equally nominal, isn't it? Mr. R. S. French. Mr. W. M. French here, who is a practical operator, says about 5 cents a barrel, he would figure it. Mr. Jones. Five cents a barrel? Mr. R. S. French. Yes. Mr. Jones. That would include labor and material for the added cost of stamping? Mr. W. M. French. May I speak, Mr. Chairman ? The Chairman. Certainly, Mr. French. Mr. W. M. French. My reason for suggesting 5 cents a barrel was because the work would in all probability be done by the warehouse in which the goods were stored, and they have the habit of charging all the traffic will bear, so to speak, and for work of that kind the charge is usually 5 cents a package — it would not matter whether it was a barrel, a box, half a box, or a basket. Mr. Jones. It is an arbitrary charge, then? Mr. W. M. French. It amounts really to an arbitrary charge. Mr. Jones. A man could stencil two or three thousand barrels, couldn't he, if he had nothing else to do ? Mr. W. M. French. In a day? Mr. Jones. In a day. Mr. W. M. French. Hardly. Mr. Jones. How maiw could he stencil? Mr. W. M. French. It would depend largely upon the number of men handling the packages. Mr. Jones. They would have to be there anyhow to handle the packages. I am talking now of the added cost of the stenciling, which would be a man who would do nothing else but stencil be- cause they have the other men there. If the man was doing nothing else but stenciling, how many barrels of apples could he stencil in a day? Mr. W. M. French. I could only give a rough guess. Mr. Jones. Certainly ; that is all that I am asking. Mr. W. M. French. Probably from 1,500 to 2,000 barrels. Mr. Jones. From 1,500 to 2,000 barrels? Mr. W. M. French. That is purely a guess. I would want to figure it out a little more carefully before I made a definite statement. Mr. HtFTCHiNSON. You stamp now the name of the apple on the barrel, don't you ? COLD-STORAGE LEGISLATION. 819 Mr. W. M. French. Yes, sir. Mr. Hutchinson. And the name of the owner; don't the name of the owner go on there? Mr. W. M. French. Yes, sir. Mr. Hutchinson. Couldn't that say "August 25, 1919," right on that same stencil ? Mr. W. M. French. The marking is put on the package when it is packed so far as the name is concerned, and the variety of apple. Mr. Hutchinson. That cpuld be stamped, then? Mr. W. M. French. Yes; but it is quite a different proposition. Mr. TiNCHER. Of course, the President's recommendation was that the cost be stenciled on there. Mr. W. M. French. The cost of the package? Mr. Jones. The cost when it went in and the cost when it came out. Mr. TiNCHER. Yes; the cost when it went in and the cost when it came out, as I understand it. Mr. E. S. French. It requires a stamp when it goes in and when it comes out, which would be an added cost of two stencilings. Mr. TiNCHER. He suggested that the cost price be stenciled when it went into storage, so that the consumer could see what it cost. Mr. R. S. French. Oh, no; we would oppose that absolutely, be- cause how are you going to determine the price of these goods when they go into storage, the cost of them? Mr. Wilson. Which cost, too? Mr. E. S. French. I beg pardon? Mr. Wilson. Which cost are you talking about? Mr. E. S. French. The price for which the goods were sold in the first instance. That is what I understand the President's recom- mendation contemplated. Mr. Wilson. Suppose they were not sold. Suppose they were put in cold storage by the producers, then what cost would you put on there? Mr. E. S. French. You would not put on any cost. How are you going to arrive at it? Mr. WmsoN. That is what I want to get at, but that is often done, isn't it? Mr. E. S. French. I assume it is; yes. In the first instance it is when it is harvested and put in cold storage. Mr. Hutchinson. Mr. French, right there, in my judgment the marking is the heart of this bill. And suppose vegetables come m and are exempted, shall we include beets? Why shouldn't we exempt tliem? „ , . , . ,1, Mr E S French. I believe the character of this business should have some consideration by reason of its difference from the other commodities, which really necessitate a more complete record of their holding. What you gentlemen are trying to get at now is the preven- tion of hoarding. . i » i Mr Hutchinson. What we want to get at is a record o± how many apples you have in cold storage and everything else, and we can not do that unless we have them marked. . j. a^- u Mr. E. S. French. You can tell. The Department of Agriculture issues its regular quarterly report, as well as the International Apple Shippers' Association a monthly report. 820 GOLD-STOEAGE LBGISLATION. Mr. Hutchinson. How do you keep your record as to the time of storage and also the things in storage if you do not have some markings ? Mr. E. S. French. They are kept by the lot numbers applied to each lot by the warehouse company; the car numbers and records from the bills of lading in going in or out. Mr. Hutchinson. Would it not be more simple to keep it by just marking the date on the package ? Mr. E. S. French. I do not think so, Mr. Hutchinson, as far as creating any real economy in handling. I do not believe it would, because I think the added labor of putting that record on would be far greater than the method now pursued of taking the record from the actual movement, from the bill of lading and car record, and the trade-marks. We really feel that these marks are not necessary be- cause, as I said, you are endeavoring to find out not only the amount held in storage but the length of time ; and by reason of the fact that these products are held such a limited length of time and there has never been such a thing as hoarding in these commodities. The very nature of them prevents it; they have to be handled promptly and quickly. I would like to state for the record, Mr. Chairman, tljiat Mr. French, who has just spoken, is president of the International Apple Shippers' Association. Mr. McLaughlin of Michigan. My information in these matte;rp is limited, but at first blush it would seem to me that the character of the containers of apples would permit of a more easy and che?iper marking of them than almost any other kind of products ; they are always in barrels or boxes ? Mr. E. S. French. Yes; the bulk of the traffic is in barrels and boxes. Mr. McLaughlin of Michigan. Of considerable size ; and it would strike me, if they were to be marked, if those and other products are to be marked, that the containers in which apples are put up could be more easily marked and cheaper than the containers in which other products are put up. Am I right or wrong about that ? Mr. E. S. French. You are right to a certain extent, because it is a convenient package. The barrel is a large one and easily marked, and the box is easily marked, too. May I ask what is really to be served, in your opinion, Mr. Hutchinson, as the f ramer of this bill, in marking these packages ? You said just now to keep a record of the apples in storage, did you not ? Mr. Hutchinson. I asked you that ? Mr. E. S. French. Yes. Mr. Hutchinson. It is uniformity of law, Mr. French; that is my idea of it. I think other people have just as much right to come in here and ask to be exempted as have the apple people, and some of them more, because it is a great deal harder, as Mr. McLaughlin says, to mark some things than it is apples, which would be very easy. Then, the additional cost is very trifling. But when you commence exempting any one article, then we would have to go right down the line, because various other people have more reason to be exen;ipted than you have. That is the way I look at it. Then, it does not really ,- hurt the article, because you say it enhances the value. Now, as a ,' COLD-STORAGE LEGISLATION. 821 - business proposition, if I could spend 5 cents and make 10, I would be apt to do it. There must be something else in back of it ; that is the way it looks to me. Mr. Jones. How many States that have a cold-storage law and do not exempt your fruits require or do not require the container to be stenciled as to the time it goes in ? Mr. E. S. French. I am not prepared to answer that at present. In fact, I know of no State now that has such a law requiring the stamping of the date on the fruits and vegetables. Mr. Jones. Does the cold-storage law of Pennsylvania exempt fruits ? Mr. E. S. French. I think it does. I am not sure, but I think it does. Mr. Jones. How many States have cold-storage laws that do not exempt fruits? Mr. E. S. French. I know of none. Mr. Jones. And your testiniony is, so far as your knowledge goes, that every State that has a cold-storage law exempts fruits ? Mr. E. S. French. My testimony is to the effect that in the con- sideration of uniform State cold-storage laws by the governors' com- mission fruits and vegetables were not considered. Mr. TiNCHER. On the proposition the President had in mind on this, as I understood his recommendation, he would have the stamp on the box of apples, for example, "August 1, 1919, this box of apples went into cold storage, purchased of the producer for a dollar " ; "August 20, 1919, removed from cold storage. Sold to the wholesaler for $1.25 " ; "August 30, 1919, this box of apples sold to retailer for $1.75," and to have that stamped on there, so when I walk up to a fruit dealer to buy an apple I will know what the box of apples cost him, and that it will reduce the high cost of living by having those stamps on the box of apples. Mr. Jones. He would burn up the box in the meantime. Mr. TiNCHER. That is, seriously, the recommendation of the Presi- dent? Mr. Jones. Yes ; that is the recommendation of the President. Mr. TiNCHER. You do not mean to say that would reduce the cost of living, to have that stamp put on there? Mr. E. S. French. I do not think it would; no, sir. Mr. Wilson. You consider that a plausible proposition, don't you? Mr. E. S. French. Marking the price? Mr. Wilson. Marking on everything as suggested. Mr. E. S. French. I should hate to admit it. I do not see how it can possibly be done, gentlemen. The Chairman. The marking of the price would incur a larger expense than the marking of the date, would it not? Mr. E. S. French. Yes, sir. , , •, , m , The Chairman. It would not have to be checked carefully < Mr. E. S. French. I do not know of anything that would lead to more investigations or discomfort or unrest than to attempt to do a thmg of that kind. , , ■, , u -n • j. Mr. PuRNELL. You understand there has already been a bill intro- duced to require every retail merchant in the country to put the cost Ijof every ardcle on his shelf on that article? 822 COLD-STOEAGE LEGISLATION. Sir. E. S. French. Well, sir, I would indorse that bill. f Mr. Wilson. You would? Mr. E. S. French. Yes ; as far as the retailer is concerned, I think he can do it. Mr. Jones. He can guess it better than anybody else and not be ' caught ; isn't that it ? Mr. E. S. French. Probably so. Mr. Jones. His overhead and everything else that goes into cost to him would open up an insurmountable inquiry, wouldn't it ? The Chairman. Mr. French, are you required at the present time to report the amount of apples and fruit in storage ? Mr. E. S. French. We report to the Agriculture Department and work in conjunction with it. It is not required that we report. The Chairman. The report is not required by the department? Mr. W. M. French. I think the warehouses are required to report their holdings. The dealers are not. Mr. EuBEY. Mr. Chairman, I want to ask a question. Evidently there is something more fundamental than merely the matter of additional cost. You object to the marking of these packages, noting the price on them, and all that sort of thing, not because of the additional cost but because of some more fundamental objection, and I would like you to state to the committee just exactly what that objection is. Mr. E. S. French. Mr. Congressman, I do not know that I could say more than I have said in regard to putting on the price, because I do not think it is possible to do it. Mr. EuBEY. You do not think it would be possible to do that ? Mr. E. S. French. No. Mr. EuBEY. Why wouldn't it be possible? Mr. E. S. French. Not in all cases. Mr. EuBEY. Here comes in 1,000 barrels of apples, and do you mean that it would not be possible for you to put on each barrel of apples the price at which those apples were purchased? Mr. W. M. French. They may not have been purchased. Mr. EuBEY. You have them in there in some way, and you, as the owner of those apples, know what they cost you ; otherwise you could never be able to sell and know what to sell for if you did not know what they cost you. You know what each one of those barrels cost you. Now, why couldn't you put that on the barrel ? Mr. E. S. French. In speaking of costs, do you mean to include all the elements that go to make up the cost of those apples up to the time they are put in storage ? Mr. EuBEY. I would put on there the cost of those apples deliv- ered in the warehouse. ,j Mr. E. S. French. Including transportation and all other charges ; i including stamping, and what not, and overhead? Mr. EuBEY. You might figure it from that basis. Mr. McLaughlin of Michigan. Whatever they stand you in up to the time you put them in cold storage, '| Mr. EuBEY. Yes ; whatever they stand you up to the time they go into cold storage. Now, you have admitted that you are in favor of the retailer marking the cost of his goods and the selling price of his goods on each article, and why wouldn't that apply to the whole- OOLD-STOEAGE LEGISIiATION. 823 saler ? Why won't it apply to the man who is putting these apples in cold storage ? o jr-r Mr. E. S. French. Because the retailer has that facility right at the point of buying, where he has his purchase price established right there. Mr. Etjbey. Yes ; but the retailer has to deal with each individual article, whereas you deal with them wholesale, in large quantities lou have here now 1,000 barrels of apples, and I want to know why it is you can not put on each barrel the price that those apples cost: why it would not be practicable and a very easy matter for you to doit? Mr. W. M. French. May I be permitted to answer that question. A very large percentage of the apples stored are not stored by the actual owner of the goods but by an agent; for instance, a commis- sion merchant. He has no means of knowing what those apples cost unless the owner sees fit to tell him, which he does not do in the majority of cases. In addition to that a large percentage of the apples are stored by the grower. He has no means of fixing an arbitrary cost price on those apples. He probably does not know what they actually cost him to raise. That would eliminate a fairly large percentage of apples that go into cold storage so far as knowing the actual cost. Mr. RuBET. You mean the man to whom these apples have been sent for sale — for instance, the commission merchant— - . Congress has the power to require the mark- a/ ^4^^ ottered for interstate commerce. f«7r; • S- F«fNCH. Not only that, but you have your records as to the in and out movement of these goods as a guide. Many of these goods are travehng on a bill of lading and only halted by transporta- tion courtesy, so to speak. j f Mr. Hutchinson. This exemption only covers 30 days. Mr. E. S. French. What exemption? Mr. Hutchinson. The provision that exempts everything for 30 days only, saying no goods shipped stored longer than 30 days." Mr. Heakty Say the goods are grown in Washington, sent to Jiochester, N. Y stored in transit, stay there five or six months, and then distributed there from the distributing market. • The Chairman. Would you suggest marking on the goods the time they were kept m cold storage before they enter into interstate commerce? Mr. Hearty. If you are only considering the possibility of perish- able food, such as apples, staying in longer than 12 months, it is not possible. The Chairman. If 12 months is the maximum time limit for cold storage agreed upon, would you not want to prevent the goods from being stored another period of 12 months after they are received from interstate commerce, if they have already been 'stored for the full period? Mr. Hearty. That is not possible, because nature steps in before that time. The Chairman. Dr Wiley stated that some products kept 7 years. We are dealing with all products that go into cold storage, not apples alone. The Chairman. Thank you, very much, Mr. French. We will be glad to hear from Mr. Phillips now. STATEMENT OF ME. R. a. PHILLIPS, SECRETARY OF THE INTER- NATIONAL APPLE SHIPPERS' ASSOCIATION. Mr. Phillips. We will be very glad to help all that we can. I realize the position of the committee and the position of Mr. Hutch- inson, that we want to treat everything alike. Otherwise I would argue that there is no necessity for marking these fruits and vege- tables, for the reason that they are self-limited. Mr. Wilson. They are or they should be. Mr. Phillips. Oh, they are; absolutely. Mr. Wilson. There are times when they are not. Mr. Phillips. I am secretary of the International Apple Shippers' Association, and we know how many are in cold storage for every year and for every month. There will be from 25 per cent to 30 per cent of the crop in storage on the 31st of December, right follow- ing the harvesting period, and by the 1st of June there is about one three-thousandth of 1 per cent in storage, and they have to get that out of storage. It would be suicide to keep it in storage, be- cause you would run right into the next crop. ,, „ ttt , The Chairman. If that is true, why fix any limit at all? We have been told by nearly everybody that nothing is carried over. If 878 COLD-STOEAGE LEGISLATION. nothing is carried over, then there is no necessity for a time limit of 12 months. Mr. Phillips. There is no necessity for a time limit on .fruits and vegetables, and that is the only thing I am talking about. I do not know anything about eggs, meat, or anything else in cpld storage. Take the Duchess apple; you must get it out by the 1st of the year. The York Imperial should be out by the 1st of February. It is only a very small number that you can hold until May, like the Winesaps, Baldwins, and Ben Davis. They talk about May Baldwins that can be held, but they would scald or go bad, and you would lose them. Mr. Hutchinson. Then this bill does not affect you a bit? Mr. Phillips. No, sir; except as to putting on marking. The Chairman. Mr. French, have you now arranged your sugges- tions in such a way that you can present them in a concrete form, or would you prefer to write them out ? Mr. E. S. French. I think we can write them out and submit them to the committee. It is a pretty hard matter to find a substitute for what you want. Mr. Wilson. We have heard you and asked you some questions; you have an idea of about what we want here, so you can just submit the best you can. Mr. R. S. French. Mr. Wilson, you asked me a question this morn- ing when I was on the stand, if I was in favor of the application of this marking requirement to the retailer, and I answered that I thought it should be done. My answer was in relation to what could be done in that way as to staple goods and not as to unstaple goods. My answer was directed more particularly to staple goods that can be kept, such as sugar and some canned goods. The Chairman. We are very grateful to you for appearing before the committee. We have a request from Mr. L. D. H. Weld, submitting a telegram from Louis F. Swift, which he requests be incorporated in the record. Without objection it will be so ordered. (The letter above referred to is printed in the record in full, as follows:) August 21, 1919. Hon. G. N. Haugen, Committee on Agriculture, House of Representatives, Washington, D. C. Deak Sik: Referring to the statement of Hon. Charles P. Gillen, mayor of Newark, N. X, before your committee on August 18, 1919, to the effect that the New York fish market and the fish caught in New Jersey waters are con- trolled by the meat packers, I have received the inclosed telegram from L. F. Swift, president of Swift. & Co., which we should like to have placed in the record of the hearings. Respectfully, yours, L. D. H. Weld. (The telegram referred to above is printed in the record in full as follows:) Chicago, August 20, 1919. L. D. H. Weld, {Care C. B. Shato), Washington. Enter denial as far as Swift & Co. is concerned, they have no Interest in any fish market in New York, that they have nothing to do with the control of fish caugttt in New Jersey waters and they do not handle fresh fish at any of their COLD-STOEAGK LE6ISLATI0K. 879 branches in or about Newark, N. J. The whole statement of Mayor GlUen is without foundation as far as Swift & Co. is concerned, and we are quite sure the same is true of all of the other Chicago packers. Louis F. Swift. We have also an interesting letter from W. B. Barney, commis- sioner, Dairy and Food Commission for the State of Iowa, which, without objection will be ordered incorporated in the record. (The letter above referred to is printed in the record in full, as follows:) State of Iowa, Daiky and Food Commission, Des Moines, August 19, 1919. Hon. GiMEET N. Haugen, Washington, D. C. Deak Congkessman : I have discussed with a number of the leading dairymen of this State the merits of Senator McKellar's cold-storage bill in which he seeks to control the time different products should be held in cold storage. They appear to be of one mind that the time limit he places on butter and eggs would curtail production and increase the price of these products during a part of the year to such an extent as to put them beyond reack of the public. There is no law that is so much misunderstood by the people as our cold- storage law. Seven to nine months would be much more reasonable and act as a price leveler all through the year on butter and eggs. It is reported that this same Senator has or will introduce a measure doing away with the 10-cent tax on colored oleo. If this product is to be a poor man's butter we feel sure you will oppose any such change in our law for the reason that it can be proven that it would not decrease the price but in many cases it would be sold as butter. If at any time this department can be of service to you In getting information that would be valuable to you, please call on us. Yours, very truly, W. B. Baeney, Commissioner. Mr. Wilson. There are also two letters from J. B. Mitchell, of J. H. White & Coi, of Chicago, 111., which I should, like inserted m the record. (The letters above referred to are printed in the record in full, as follows:) J. H. White & Co., Chicago, III., August 22, 1919. Deak Sie : In the formation of an act to control goods carried in cold storage we beg to offer a suggestion, and we do it with much experience in the han- dling of cold-storage products, especially butter, eggs, and poultry. We at times in the past have been compelled, much against our wishes, to carry butter and poultry beyond the 12 months' period or for a greater length of time than from one period of production to another. We have never carried poultry past the 12 months' period when we could get any considerable percent- age of" our original investment back by selling. In other words, our only object at any time in carrying poultry or butter past the 12 months' period is to save a severe loss. That is true, in a large measure, with the whole trade. Poultry or butter, so far as our observations go, are never carried beyond the period above suggested with the idea of profiteering, and for the sake of satisfying any person whose mind might run to the contrary we would suggest your inserting in the Hutchinson bill words or clauses to the effect that goods carried past the 10 or 12 months' period, by permission from the Secretary of Agriculture should thereafter not be sold at a price over and above original cost with accrued storage charges, interest, and insurance added. Tours, very truly, j ^ ^^^^ ^ ^^ By J. B. Mitchell. 880 COLD-STOKAGE LEGISLATION. Chicago, III., August 23, 1910. Dear Sir. : We wonder if at this time you could give us your committee's conception of tlie term " hoarder." To us it would seem to mean one who withholds certain goods from the public for the purpose of securing an abnor- mal or exorbitant profit, but we are wondering if, under the provisions of the Hutchinson Act, any person found with frozen poultry, for instance, in their possession which had been held in cold , storage for a period greater than 10 months would be considered a hoarder, although that poultry, perfectly wholesome and edible, had been offered for sale time and again to any and all buyers at cost and far below cost. To be more specific, in our line of business, as in all others, last year help was scarce, particularly skilled labor was hard to get. This resulted in a great deal of poultry being frozen after having been, what we term, scald picked. This sort of dressing requires less experience than dry picking. Dry pickers, for the most part, are young men, and most of them last year were busy in Europe. Therefore the quantity of scalded poultry frozen last year was in excess of the average and the qjuantity of dry picked less than the average. The move desirable grades of scalded poultry sold fairly well, and by more desirable grades we mean heavy-weight hens and heavy-weight chickens or roasting chickens, but scalded small hens, although fancy in quality, scalded broilers, and scalded old roosters did not sell well and many of them are still in the hands of tliose who, after paying the farmers big prices for them, held them in cold storage. We, for instance, have a few thousand pounds of scalded old roosters, which we offer at 4 to 5 cents a pound below cost and are unable to sell them. We have a number of thousand pounds of fancy scalded old hens, lightweights, about 3-pound average. We are offering them at anywhere from 2 to 5 cents a pound below cost without results. We have scalded broilers that we are offer- ing at 8 to 10 cents per pound less than cost. We are selling a few, but not cleaning. What we desire now to know is, if in addition to our pecuniary losses, are we to suffer the misfortune of being considered criminals and hoarders under the Hutchinson Act? And if, within the prescribed limits of this bill, we are un- able to clean up all of this perfectly edible and wholesome poultry, Mill we then be liable to prosecution and persecution? The writer wishes to add here that more than one what might be termed small packer has advised him that this year they will freeze no poultry, because of agitation and legislation, which seems to be detrimental to the interests of all packers and conservers of food. A specific instance is the Ozark Poultry & Egg Co., of Fayettevllle, Ark., who have a modern plant, erected about two years ago at considerable expense, for the fattening, feeding, and freezing of poultry. This organization is purely local and has been a great boon to farmers and producers in that section of Arkansas, because through their improved facilities they have been able to pay good prices for poultry, eggs, and butter. The manager of that concern in a long-distance telephone conversation told the writer a day or two ago that they would freeze no poultry. They would buy it from the farmers as cheaply as they could, sell it where they could ftlive, and if markets do not seem favorable would not buy at all. This is the danger which seems to us will threaten as a result of too much legislation. Yours, very truly, .7. H. White & Co., By J. B. Mitchell. The Chairman. Without objection, there will be included in the record a supplementary statement by Mr. Marshall, explaining fur- ther statements before the committee as to the amount and percentage of various commodities held in cold storage. (The statement referred to is printed, as follows:) SUPPLEMKNTARY STATEMENT Ol-' HERBERT C. MARSHALL COWCEHNING AMOUNTS OF Meats and Certain Other Commodities Moving Through Commercial Channels. Mr. Chairman, you have requested a more precise statement regarding meajs, particularly an estimate of the amounts of fresh meat usually in a chilled COLD-STOKAGE LEGISLATION. 881 oT^^liTt^f^f''^ ''''■^"^ -^.r"". slaughtering concerns through the channels ?n cow storage '=°"'"'"^'' ^'"'""^ ^^^"^ '^^^'i°S been cured or frozen and placed Ps«m«trwm ''i/n'^S,^ht?lf *° ^'^'^ P'^"'^ ^S"^'^" °° tl'ese matters, but a rough estimate will undoubtedly serve your purpose. In my testimony before the committee two weeks ago I gave 15,000,000,000 pounds as a rough estimate o? total annual consumption of meats of the various kinds. This est mate is somewhat lower than the regular Department of Agriculture esUmate and was mtentionally so because other estimates have been made even lower How- ever the Department of Agriculture estimates are perhaps the most trust- on°^^rv2?n^® ^''^^^''^ 5 J"^ *^^^ ^* *b« Present time are slightly in excess of KSHsSs^sl""' ^''" *"'■ "'''• ™""''" ''""^ ""''^ ^°'- ^''' The amount of these meats held in cold storage, as appears from our cold- storage reports, at the highest point at any time, is approximately 1,500,000,000 Accordingly, the amount in cold storage at the highest point is approximately 7* per cent of the total annual consumption of the country. It is quite impossible to make an accurate estimate of the amount of fresh meat usually in a chilled condition that passes directly from the slaughtering establishments through the channels of trade to the consumer, but a very rough estimate, perhaps suffi- cient for your purpose, would be 20,000,000 pounds of beef and 5,000,000 pounds of pork per day, making a total of 25,000,000 pounds per day of these principal kinds of meat, the other kinds being comparatively, negligible in the total pro- duction and consumption. The average period from the time that the animal is slaughtered until the meat is sold to the consumer is probably not far from 10 days. Accordingly, the amount of fresh meat moving through the channels of trade is probably not far from 250,000,000 pounds. Adding this amount to the amount carried in cold storage, the total is 1,750,000,000 pounds, a little less than 9 per cent of the total annual consumption. It is estimated that approximately 10 per cent of the total number of cattle slaughtered are slaughtered on the farm and approximately 30 per cent of the hogs. Accordingly, since the total slaughter and consumption of beef and pork in round numbers are practically the same, approximately 20 per cent of the total slaughter of meats occurs on the farms. Since very little of this meat appears upon the market, it may be roughly estimated that 20 per cent of the total meat consumed in the country does not appear upon the market. Accordingly, the total amount of meat that does appear upon the market may be roughly estimated at 1,600,000,000,000 pounds and the total amount of meat, both in storage and currently moving through channels of trade, is approxi- mately 11 per cent of the amount moving through the market. Surveys of all kinds of food passing through the channels of trade made by the Bm-eau of Markets Mithin tlie last two years show salted and cured in the hands of dealers, not included in our cold-storage reports, of approximately 100,000,000 pounds, and of lai-d and other animal fats of approximately 50,000,000 pounds. These surveys are not nearly so complete as our reports from cold .storages, and it is probable that the total amount of meats and animal fats in the hands of wholesale and retail dealers, not included in our cold-storge reports, is as large as 200,000,000 pounds. On the other hand, of the meats appearing in our cold-storage reports perhaps an even greater amount than 200,000,000 pounds is in process of curing and, of course, is not actually ready for consumption. Accordingly, the total amount of meats actually in the chan- nels of trade and in storage ready for consumption is perhaps even less than our previous total of 1,750,000,000, which amount, as stated above, is a little less than 9 per cent of the total annual consumption, or approximately 11 per. cent of the amount of meat that actually passes through the channels of trade in the course of a year. BUTTEE. In the testimony of two weeks ago the production of butter was given at 1,600,000,000 pounds per annum and the largest amount of storage at any time as a little over 100,000,000 pounds. The August cold-storage report shows approximately 125,000,000 pounds in storage. Accordingly, the amount in storage is approximately 8 per cent of the annual consumption. As stated in the former testimony, however, approximately one-half of the total amount of butter is produced on the farms, and a very large part of this never appears upon the market. Accordingly, the amount in storage is perhaps approximately not far from 11 per cent of the amount that passes through the channels of trade In the course of a year. 882 COLD-STORAGK LEGISLATION. EGGS AND POULTBT. It would be unwise to make an attempt to give more detailed figures regard- ing eggs and poultry than were given in the former testimony. In that testi- mony the annual production of eggs was given at 2,500,000,000 dozen. The estimate of the Department of Agriculture for the last year is slightly less than 2,000,000,000. Since it is well known that the production of eggs this year is considerably larger than last year, and it can not be pretended that the figures for the production of eggs is better than a rough estimate, the estimate already given of 2,500,000,000 dozen as the production of eggs is perhaps as near as any estimate can be made. Upon this basis the quantity of eggs in storage at the present time is approximately 10 per cent of the total annual production and consumption. It Is perhaps somewhere between 12 and 15 per cent of the amount that actually passes through the channels of trade. Exports of certain agricultural products of domestic production. Article. Barley bushels. . Com do... Com meal barrels. Oatmeal pounds.. Oats bushels. Wheat do... Wheat flour barrels . Beef, caimed pounds. . Beef, fresh do — Beef, pickled do — Oleooll do — Bacon do — Hamandshoulders.do Lard do Neutral lard do Fork, canned do Pork, fresh do Pork, pickled do Butter do Cheese do Milk, condensed.. .do Cottonseed oil do Eggs dozen. . Eggs to United Kingdom Eggs to Cuba 12 months ending June 30 — 1914 6,644,747 9,380,855 336,241 15,998,286 1,859,949 92,393,775 11,821,461 3,464,733 6,394,404 23,265,974 97,017,065 193,964,252 165,881,791 481,457,792 29,323,786 3,074,303 2,668,020 45,543,085 3,693,597 2,427,577 16,209,082 192,963,079 8,308,307 6,001 5,651,261 1915 26, 754, 522 48,786,291 470,503 68,394,979 96,809,551 259,642,533 16, 182, 765 75,243,261 170,440,934 31,874,743 80,481,946 46,718,227 203,701,114 476,531,908 26,021,054 4,644,418 3,908,193 45,665,674 9,860,704 55,362,917 37,236,627 318,366,5'>-5 9,143,502 7,395,143 5,290,945 27,473,160 38,217,012 419,979 54,748,747 95,918,884 173,274,015 15,520,669 50,803,765 231,214,000 38,114,682 102,645,914 579,808,786 282,208,611 427,011,338 34,426,590 9,610,732 63,005,624 63,460,713 13,487,481 44,394,301 159,577,620 266,512,057 13,434,428 8,265,909 8,046,128 1917 16,381,077 64,720,842 508, 113 110,903,344 88,944,401 149, 831, 427 11,942,778 67,536,125 197, 177, 101 58,053,667 67,110,111 667,161,972 266,666,581 444,769,540 17,576,240 5,896,126 60,435,615 46,992,721 26,835,092 66,050,013 269,141,231 158,911,767 24,926,424 4,359,192 7,474,267 1918 26,285,378 40,997,827 2,018,869 346,559,435 105,837,309 34,118,853 21,879,951 97,343,283 370,032,900 54,467,910 56,603,388 816,294,424 419,571,869 392,506,365 4,268,529 5,194,468 21,390,288 33,221,502 17,735,966 44,303,076 628,759,232 100,779,981 18,969,167 3,679,795 7,996,499 1919 20,467,781 16,687,538 1,583,327 227,687,679 96,360,974 178,582,673 24,190,092 108,489,472 332,205,176 45,067,861 59,092,322 1,239,540,973 667,848,019 726,577,868 17,395,888 5,273,608 19,644,388 31,604,497 33,739,960 18,794,853 728,740,509 178,709,833 28,384,783 12,330,488 9,804,376 The Chairman. This will conclude the hearings on cold-storage legislation. (Thereupon, at 5 p. m., the committee adjourned, to meet at the call of the chairman.) INDEX. Agents, cold-storage law enforcement, employment. . . 14 Agriculture Department: Cold-storage data, ascertainment methods 124 Confidence in ].[.[[[[.[..... 150 Data on deterioration of fish by freezing .\..\\ 208 Egg market reports, discussion ! 192-193 Functions in storage work 137 Preparation of proposed cold-storage bill 10-li is 21 22 Publication of market conditions, note '...'. 218 Records of fruit shipments, etc .'.'.'.'.' 822, 825^826, 828 Reports on eggs, remarks 188-189, 192-193 Reports on foods in storage, etc.' 840, 842, 843, 856, 857, 863 Testimony of scientists on fish storage limit 194 Work on poultry, egg, and fidi investigations 385-399 Agriculture Secretary: Control of cold storage, discussion 166 Regulatory authority over cold storage, needs 38 Alabama, cold-storage law 450 Ammonia, conservation work 522 Anderson, Representative: Questions and remarks on packers 167, 282, 283, 284, 285, 286, 287, 308, 319, 424^426, 428 Questions and remarks on prices 219, 220, 229, 232, 271, 279, 280, 281, 351, 413-415, 417-419, 427, 441-442 Questions and remarks on storage 19, 20, 23, 24, 28, 39, 40, 42, 106, 131, 133, 143, 145, 146, 153, 160, 161 162, 173, 215-216, 241-244, 336-337, 354-358, 408, 410, 420, 436 Questions on eggs and butter 45, 47, 89, 119, 122, 123, 182, 223, 228-129, 268 Questions on fish 201-203, 369 Questions on hoarding 231 Questions on meats 53-55, 91 Questions on warehouses 411-4l2 Apple Shippers' Association, International, statements 815-833, 877-878 Apples: Dried, regulations 636-638 Food value 861 Harvesting by buyers 862 Keeping quality 827 Marking in storage cost, etc 817-828 Maximum rates provision 170 Prospects of 1919 production 249 Picking and storing practices 875-876 Restorage, discussion 831-833 Storage — Conditions, remarks 248 Necessity . °°\ Rates l°° Temperature ----- fiifi'aqQ'avv Syr Time limitation, marking and restorage »ib-»i5d, »c /-»^» Appropriations; _ . „ For Food Administration, classification O'i^, »u^ Markets Bureau, 1919 44-45 Arizona, cold-storage law -.■•;;■■■; yV-, ioa t^ Armour and Switt, indictment m New Jersey, details drfy-d4U Armour and Co. : qqq -t 09 Pork and hog handling, statement ilrjll Statements of representatives daa^44 883 884 INDEX. Army: Page. Specifications for sirups and molasses 728-729 Surplus foods, distribution in Jersey City, management 342-343 Arsenic shortage control by Food Administration 523 Associations, storage, relation to legislation 133 Atkeson, Thomas E., statement for the National Grange 862-875 Atlantic coast, fishing regulations 741-746 Attorney General, activity against profiteering, remarks 216 Auctioneers: Butter and cheese, regulations 769, 776 Eggs, regulations 761 Foods, nonperishable, regulations 704-705 Bacteria, food, effect of cold storage and moisture 835-836 Bread regulations .' 503, 553, 577, 678, 680, 706-721 Recommendations by Food Administration 721 Wheat saving 493, 494 Baking: Licenses, exceptions 720-721 Powder, containers, regulations _. 793 Reserves, increase, means of deflating prices, discussion 321 Barley: Prices and regulations 502-503, 589 Products specifications 562, 599, 687 Barney, W. B., letter of storage of butter and eggs 879 Bass, hibernation and freezing 207 Beans: Dried, sale regulations 511, 630-631, 688-690 Production, stimulation 517 Beef: Cold-storage — Taxation as means of placing on market 118-119 Time limit, regulations 100 Exports, 1915-1918 520 Frozen — As war necessity, smallness of demand 270 Cold-storage holdings, June 1, 1919 272 Quality 322 Stocks in packers' hands Jiily 1, 1919 324 Government, for Arm.y and Navy, methods of buying 434 Handling, storage, and selling by Armour & Co 432-438 Production increase 520 Prices, decline, disciission 211 Beet sugar. See Sugar. Belgian Relief Commission, whole-wheat flour use 850 Beriberi disease, cause and prevention 847, 848, 849 Beverages, cereal, control 607 Bookkeeping, storage, discussion 149 Boyden, Roland W., report of Enforcement Division, Food Control 525-529 Bran of cereals, food value 847,848,849,850 Bread: Cost to consumer and profit to farmer 530 Habits, reform needed 849, 851 Regulations 709-720 Brewers: ' Grain limitation 532, 589, 604-607 Limitations in use of foodstuffs 495, 532, 589, 607 Briggs, A. E., statement on storage of eggs, etc 211-224 Brokers: Butter and cheese, regulations 769, 776 Foods nonperishable, regulations 704-705 Poultry and eggs, regulations 753-754, 75*7762 Brown, H. L., statement as manager of produce department of Armour & Co. 438-444 Buckwheat products manufacture control 603-604 INDEX. 885 Butter: BusH^ss^ Armour ..Co ,,,_,,^;^, Time limit discussion , q c i Record card and explanation. ...'.;;;;:;:; 293-294 ' 296-297 Cost of car load, note /yd zm4, ^9b ^yv Distribution, control regulations...'."...".".'. ^in'7fi4-77n Exportation demand and restrictions, discussion ' 47--50 Fate, price to diau'ymen, 1918, 1919.. 44 Market information, distribution. . . oon Percentage in cold storage 974 Price, fixing ^'^ Prices— °^" And cold-storage profits 270 And price increase, 1918-1919 43 Production — And cold-storage increase, 1918 58 And storage, statement 34I Increase, 1919, causes .[.].. .\ 47 Per annum, and per cent in cold storage at any time ....... 41^3, 45, 47, 72 Quantities stored in New York and Chicago, note '. 232 Stamping and tagging " ' 13]^ Stocks in packers' hands July 1, 1919 324 Storage — Deterioration, studies 30 Amounts ggl And movement, remarks 225 Rates ; 168 Time factor, etc 834, 857-859 Time limit and stock 854, 859 Time limits 244, 879 Substitutes, regulations special 649, 699-701 California: Cold-storage law 451-453 Fruits and vegetables, note 828 Campbell, Walter G., food laws, statement 22-31 Canada, food trade relations 524 Candling, egg: Cost along with other handling 226 Requirements and regulations 755 Candy containers, regulations 794 Cane sugar. See Sugar. Canned fish, largest handler, discussion 201 Canned foods: Regulations 626-636,692 See also Food, noiiperishable. Canned goods: Prices 631-634 Storage 143 Canners, regulations 508-509, 626-636 Canning: Fish, remarks l^^ Industry, control regulations j 508-509, 626-636 Cannon, James F. jr., vice-mayor Jersey City, suggestions for cold-storage legislation - : 334-347 Canteloupes, storage and transportation 876 Carload shipments of: Canned goods, minimum ■.;;■'"■';:; „.„' „ ,_ Cottonseld, peanuts, oU, etc. , notes 640, 641, 643, 644, 645-646, 647 Dried fruits, minimum °^° Eggs, minimum 'q° Fruits and vegetables, minimum weight ^^0 Nonperishables, minimum weights 7aq nan Poultry, minimum «{?' ms Sugar, minimum weight. °^'' °^° Wheat, minimum and maximum ' „? Carloads; eggs and butter, cost ^^J- 886 INDEX. Page. Cash-and-carry stores, regulations on eggs, butter, and cheese 763, 770, 776 Cattle: Live, number in United States and Europe, 1913-1919 55-57 Markets and prices, control by packers, discussion 303-306 Number — In Argentina, 1914, 1919 57 In South America, 1914, 1918, 1919 57 Cattlemen, Texas, relation to packing plants 304-307 Celery, storage effect, note 252 Cereal: Products — Sale regulations 681-688 Specifications 562, 596-599, 685-688 Regulations, enforcement 528 Cereals, bran, value in food 847, 848, 849, 850 Certificate, egg candling 755 Certificates, sugar, requirement and use 620-622, 666-670, 710 Cheese: Cold-storage, record card and explanation 293-294, 297 Distribution, control regulations 510, 770-777 Kinds, margins allowed on sales ■ 773-777 Percentage in cold storage '.. 274 Production, and per cent in cold storage at one time ; 51-57 Production and storage 341 Quality, effect of storage 443-444 Storage — Limit 138 Practices and recommendations 443-444 Rates : 168 Chicago Butter and Egg Board: Resolutions sent President 234 _ Note 228 Chicago, egg storage, quantity ■ 232 Chicken: Cold storage, effects .• 841 Quality afterlong storage frozen 156 Chickens: Killing methods, causes and results 87-88 Shipping methods, interstate features 90-91, 93 Children, feeding, essentials 845,847,848,851,853 Chocolate, powdered, containers, regulations 794 Coal: Diggers, wages 867 Price, retail, comparison with wholesale prices 374-375 Shipment charges, fluctuations, suggestions 370-372 Cocoa, powdered, containers, regulations 794 Coconut meal regulations 647 Cofiee: CcTitainers, regulations 794 Distribution, control regulations 511, 692-699 Importers and dealers, licenses , 553, 554 Prices, cause of increase, discussion 371 Storage effects 834 Cold storage: Danger to business in forcing goods out 292 Danger of discrimination against, or increased risks. 298 Card, scope, -and explanation 292-298 Eggs, distribution, regulations ' 757, 758, 761 Legislation, need of short title 14 Legislation, time of taking effect 15 Use of term, State laws. . 451, 460, 463, 464, 466, 468, 471, 472, 476, 478, 480, 482, 484 Warehouses, control regulations 510, 550, 777-780 Collector internal revenue, filing of warehouse receipts 864 Colleges, cooperation with Pood Administration 491 Commerce Department, report on eggs 182 Commission merchant: _ " s Dishonest dealing with fruit grower 823 License and supervision 824 INDEX. 88 Y Commission Merchants, National League: Page. Organization, membership, etc 824^825 Statement of manager, etc 8i5-833, 875-877 See also Merchant. Commissions, milk, work in various localities 511-512 Commodities, staple, importers, manufacturers and dealers, licenses ... '. '. 550-552 Congressional authority, cold-storage regulations 9 21 Connecticut, cold-storage law '. ......'. 453 Constitutionality, Hutchinson food bill, discussion by Chester Morrill . ...!!!! 5-22 Containers: Eggs, specifications 757 Tin and other, control regulations 524, 793-795 Contract forms 670, 593, 594, 614, 672, 682 Cooling plants, objections to classification as cold-storage plants 314-315 Copra and oil, regulations 645-647 Com: Canning, regulations 626-629, 633 Ear, changes in storage 836 Products — Sale regulations 589-603, 681-688 .. , Specifications and prices 590-599, 656, 685-687 Quantity for production of one pound of pork 290 Retail price, 1918-1919 290, 291 Sale regulations 587-603, 681-688 Water-ground, quality 850 Cornstarch, sales and margins allowed 659-660, 661 Cost, determination method to avoid speculation 653 Cotton, Joseph P., statement on prices of hogs. 536-537 Cotton, production cost and loss 291-292 Cottonseed: Control regulations 503-504, 638-649 Feeds, regulations 647-649, 788-789 Meal specifications 643, 644 Oil mills, control by packers, discussion 307-308 Products, control regulations 503-504 Coxey's army, need of employment and low wages 866 Crackers: Containers, regulations 794 Regulations 715 Crushers, oil, regulations 642-649 Cuba: Sugar production — Amount 507 Cost, increase °^° Cuban commission on sugar agreement with 507 Currency inflation - °°l Dairyman's League, operation ^o-l ^°^ Davis, S. Edward, statement on butter and eggs brv 871 Day, labor, shortening hours °o' > °''- Definitions: c c t o q Cold-storage bill, statement by Chester Morrill o-b,l, S-9 Warehousing H^Liik Delaware, cold-storage law 09_q? Deterioration, cold-storage food ^^^^ Distillers, grain limitation ^^ Distilling, prohibition to save grain ^^^ Distribution : 4qQ_t;i 9 Food, cost reduction, measures »qn Fruit and vegetables - "/ 1 •" " ' ' ' " "-AAv+V Dorsey, Frank, mayor, Perth Amboy, statement on transportation, exports^^^^^^ etc Dried fruits: . cnq fiqfi_fiq« Preparation, control regulations -_^' l^f^ Regulations -j^gg Storage rates 844r-846 Dried milk, value as food. - - . - - oo<: 044 Drying effect on keeping quality of food... - iqa'ynq 7qr,' sno EatinI places, public, conservation compulsory, orders 498, 709, 79o-800 888 INDEX. Page. Educational work, Food Administration 490-492 Egg and poultry crop, value and loss from deterioration 391-392 Eggs: Business of Armour & Co 439-441, 442-i43, 444 Candling and grading 226 Classes and prices. 224 Cold-storage — Effect on quality 22-23, 24,. 28-30 Laws relation to sale 451, 453, 454, 467-468, 482 Losses and time limit, discussion 49-51 Record card and explanation 293-296 Regulation, enforcement by taxation 119-120, 125 Taxation as means of placing on market 119-120, 125 Conservation work 497 Cost of carload 231 Deterioration after cold storage, remarks 167 Distribution--- Control regulations 510, 754-764 Profits in rehandling 223 Exportation demand and restrictions, discussion 47-50 Farm and wholesale prices 302 Flavor, discussion 392 Food definition and shipping methods 8-9 Handling — Cold-storage, value, etc., statement by M. E. Pennington 388-392, 397 Costs and relation to prices 226 In cold stora-je, efiect on prices 49-51 Interstate commerce and cold-storage methods, meaning of law 94-96 Keeping — After storage, discussion 167 Qualities, effect of cold-storage time limit 97-99 Quality, relation of season in which laid 440-441 Losses in handling in war time 227-228 Maximum rates 171 Number in storage, note 342 Percentage in storage ., 236 Preservation by water glass 838 Price — Fixing 181, 211-213, 500 Fixing, discussion 183-189 Margin of profit 763 And cold-storage profits, 1913-1919 266-270 Cycle, remarks on factors 176-177 Discussion 221-224 In Kansas compared with Washington 222-223 In relation to cold storage 191-192 Maximum 170 Under cold storage, and before, comparison 105 Producing sections, list of States 179 Production — And per capita allowance 104 And per cent in storage at one time, 1917-1919 46-47, 72 Consumption, and storage 882 Increase, discussion 439 1918, Ber cent in storage, June 1, 1919 263, 274, 275 Period ■ 175 Period, beginning in several States 179 Seasons . : 177 Quality, variation with month of laying 181-182 Quantities stored in New York and (Chicago, note 232 Reports of Agriculture Department on storage, discussion 192-193 Selling as "cold storage" or "fresh" 299-302 Shipping methods, interstate features 89-90 Stamping and tagging : 131 Statistics, discussion 188-189 Stocks in packers' hands July 1, 1919 324 INDEX. 889 Eggs— Continued. Storage— Page. Charges, note IgX Discussion by Dr. Wiley ;;;";;;;;;:;:::::; 'ssT-s-ii.'ss^r-seo Jittect of monopoly on prices 263-266 Limit and seasonal element :....... 138-141 Limit, disadvantages of regulation 440 Quality as compared with fresh eggs, note 213 Requirements in marking 164 Season for selling, remarks 233 Seizure at Chattanooga, remarks. 216-217 ,,■ ,1™®, 'J™*-. \..[..\.\\\\\...\.[[[ 863, 879 Yield and keeping, remarks of F. G. Urner 175 Elevators, grain, license regulations 583-604 Enforcement Division, Food Administration, report of work 512,525-529 Excess profits, margins on 590-594, 608-613, 640-642, 654^666 Excess profits. (See also Profits J Executive order creating Grain Corporation 533 Exhibitions, Pood Administration '. . 491 Exhibits to Food Administratiouj report for 1918 488, 525-813 Expenditures, Food Administration, statements for 1918 524, 804-809 Export trade, war limitations 498 Exports — Agricultural products 1914-1919 882 Beef, 1915-1918 520 Cessation, remarks 236 Eggs, relation to price 180, 182 Pork and products, 1918 519 Regulation, suggestions by mayor of Perth Amboy 370-373 Farm: Machinery — Price profiteering 79 Prices, relation to farming 379-385 Organizations, National Board, statement of representative 444-446 Supplies, fertilizers, etc., price profiteering 79 Wages and perquisites 866-867, 871 Farmer: Protection in price making, note 212 Relation to prices of foodstuffs, discussion 344, 346-347, 366-367 Farmers: And profiteering discussion 872 Interest in cold storage - 862 Middle West, protest against decrease of farm prices 379-381 Storage houses, statement by representative 444r-446 Fat, animal, source of vitamine 848, 853 Pats: Conservation, work of Pood Administration 496 Vegetable, deficiency in growth factors 853 iSee a2«o Shortening. 107100 Federal law, discussion by Prank A. Home ^^' ^^° Federal Trade Commission, food investigations • 851, 855 Feed, relation to prices of eggs and butter 701700 Feeding stuffs, special license requirements '°^ '^^ Cottonseed, peanut, etc., regulations ^lo^^f?' 7a?l7Q0 Licenses, general regulations &4Z-&&0 /»i /ys Ferris, Scott, Representative frgm Oklahoma, statement on production and prices in Oklahoma, Texas, Missouri, and Kansas. a/» aoo Fertilizers, distribution by Agriculture Department, effect on pnces b» Fish: 195 Abundance period, remarks •.• " ■g3i_g33 Canned, prices and regulations ^^g 631-633 Canning, regulations .-.--.- ' oo7_208 Condition and palatability after freezing 209-211 Cost and prices of retailers 890 IKDEX. Fish — Continued. Page. Definitions under regulations of Food Administration 199-200 Determination in cold storage, time-limit studies 99-100 Distribution, control regulations 510, 736-749 Freezing— And limit of keeping 142 For market, method 204 Fresh— And frozen, definitions and regulations 737-740 Stamping and tagging 131 Frozen — ■ Prices for several varieties 203, 204-205 Regulations of Food Administration 198-200 Reports 199 See also Frozen fish. Handling and cold-storage processes 388-399 Industry — Districts and kinds of fish 1 97-198 Evidence in previous hearings, remarks 194 Stimulation 517-518 Life return after freezing, remarks 207 Marketing period 198 Preservation methods, remarks 196 Price — Fixing, discussion 204-207 Range by States 206 Relation between canned and frozen 202 Prices — ■ Agreements with fishermen 509, 631-633 And quality, control of Jersey catch by New York market 363-364, 369 Profits— In handling 206, 210-2] 1 On storage, remarks 217 Salt-water, license regulation 741-749 Shortage on Atlantic coast, 1919, remarks 201 Storage — Experiments, details 837, 855 Time limit, conditions governing 22, 26, 27, 28, 30 Time limit, discussion 194-1,98, 208-209 Varieties — Frozen for preservation 201-202 In storage, remarks 195 Fishermen: Conferences with 631-633 Salt-water, licenses 552, 553, 741-749 Fishing, regulations, Federal 742-749 Florida, egg production 179 Flour: Control regulations 455-583 Cost of production and price to consumer, comparison 345 Delivery to farmers in exchange for wheat 581 Distribution, control regulations 562-583, 670-680 Exports to Europe bv Food Administration 849, 850 Keeping quality. . . . .' 835, 860 Manufacture, control regulations 555-562 Mixed, regulations, notes 556-565, 681 Prices 653 Rice, control regulations 610-613 Sale regulations 650, 659, 670-680 Storage, effects .' 834 Substitutes — Farmer's pledge card 581 Regulations 577-580,677-680,713-721 Use to save wheat 493-494 White, injurious to health, reasons 849-852 INDEX. 891 Food- Administration — Page.. Annual report for 1918 488-813 Cooperation of fruit men in west 824 826 Data on profits in handling fish 206-107 Meat Division, purposes as to prices of hogs ..... . . . . . . . . . . . . . . 303 Men in charge various cold-storage products '..".'.!.!".!'.'. 276-277 Object and or^nization and activities 489-490 Policy in fish industry ' 199 202 Regulations for frozen fish industry 198-200 Regulation? for warehousemen 128-131 Release of licenses 161-162 Reports, and licenses 158 159 Request for Federal cold-storage legislation ' 31 Rule in control of warehouse loans 151 Schedule for storage rates 168-169 Status of doUar-a-year men 281-282 Storage regulations, dissatisfaction by packers and farmers 277-279 Work and its effect 230 Adults, heat value of vegetable fats 853 And drugs act, limitations on cold storage 22-23 Childrensl 845, 847, 848, 851, 853, 854 Cold-storage, control regulations, recommendation by President 80, 81, 82 Commodities — Exportation restrictions, discussion 47-50 New Jersey prices, comparisons with other States 50-51 Conservation — In homes 499 Work of Food Administration 492-499 Control act — Authority and limitations of President 77-78, 80-81, 82, 83-84 History of legislation, scope, etc 82 Hoarding provisions 18, 20, 78 Provisions and enforcement need ■ - 106-107 Time-limit extension and amendment's asked by President 4-5 Time-limit extension, statement of chairman 4-5 Control — Authority of President, discussion 77-78, 80-81, 82 Effect on trade, opinion 239 Enforcement by taxation, danger of system 116-118 Enforcement work, report 512, 525-529 Law enforcement by prosecutions 103-104 Law, time of termination 79-80 Laws, time limit extension, suggestion 80-81 Legislation, Kenyon bill, scope and objections 109-112 Legislation, letters and telegrams to Congress, opposition by packers. 109-112 Legislation, opposition of cattle raisers unfounded 102-103 Legislation, Welty bill, provisions and scope _■ 117-126 Taxation for enforcement. Treasury Department objections 121 Voluntary acceptance in emergency - ■ 235 Cost — . . . . ,.,- Discussion, resolutions, etc., by mayors' committee of municipalities of New Jersey : --1 %f.''l°l Production, ascertaining, efforts, discussion dd/, d44 d40 Destruction for price increase, studies ''" Distribution — 4QQ_tii 9 Cost, reduction, measures tiojiit Equalization work -.-,•- T ■■"/■"■ • q7^ Exports to Germany, prices, comparison with domestic prices. i/i Hoarding — ., 9q_94 97 By cold storage, prohibition efforts mZ\o^ Effect of supply and demand - ■n^-Me. Practices, and suggestions for control 81 84 Statement of President. ......-.-■-. ■ ■ ■ - • 121-122 Packers, monopolizing of various industries, control i^i i^^ 13T690— 19- 892 INDEX. Food — Continued . Prices— Page- Increase by storage time limit 100-102 Stimulation 500 Production — Stimulation, work of Food Administration 516-520 Per capita 873-874 Products — Cold storage, effect of monopoly on prices 263-266 Cold-storage, retailing as labeled "cold-storage " 299-300 Cold-storage risks, expenses, and average profits 265-270 Cold-storage, spoilage, discussion 298 Cold-storage time limit, proposed regulations 94^-102 Cold-storage, use for fertilizer, 1914, cause 92-93 Forcing out of cold storage at wroilg seasons, effect on prices 298-299 Interstate commerce, definition 123-124 Storage stocks, comparison with prices 262-263 Profiteering — Suggestions for control 327-330 Discussion 872-873 Purity, storage, etc., statement by Walter G. Campbell 22-31 Regulation, Chicago Board resolutions 234 Regulations, repeals 594, 605, 606, 607. 634, 640, 641, 643, 669, 681, 683, 703 706, 708, 711, 714, 726, 730, 788, 789, 791, 792, 793 Research Laboratory, work on preservation of perishables 385-399 Shortage for world use, remarks 236 Stocks reports of Bureau of Markets 856, 857 Storage — Decomposition, effect on time limit 22-25 Effect on prices 842, 843, 855, 859 Marking, utility. 863-864 Removal under New York law after time limit 258 Time limit, conditions governing 22-25, 26, 27, 28 Use of term, laws 454, 466, 469, 471, 472, 475, 476, 478, 480, 482, 484 Values as afiected by preservation and storage 833, 862 Foods: And markets. New York department, extracts from bulletin 254-259 Cold-storage, marking regulations, advantages 315-316 Licenses, general regulations 542, 555 Marking requirements in storage in New York 258 Nonperishable^ Distnbution control 507-508, 650-705 - Lists and regulations 650-705 Perishable — Conservation work 497 Distribution, control regulations 509-510, 730-777 Storage, time limit ; . 876 Purchase by Grain Corporation, authorization 533 Storage — Effects, statement by Dr. Wiley 833-862 Statement of Herbert C. Marshall 880-882 Time limit, discussion by Dr. Wiley 836, 840, 843, 854, 855, 856, 861 Foodstuffs: Purchase and sale, work of Food Administration 520 Government, sale at profit, statement of mayor of Newark '. 328 Question of profiteering 219 Stamping with cost of production and date of storage, discussion 343-347 Supply on hand, June 1, 1919, extract from President's message 43-44 Use by brewers, prohibition, proclamations, etc 495, 532, 607 Foreign buying, eggs and butter, low prices 229, 230 Foreign holdings, storage goods 146, 147, 148 Fowler, Kenneth, statement on cold storage of fish 194-211 France, meat refrigeration, note 855 Fresh nsh, definition 199 Freezing, effect on food, testimony 156 French, R. S., statement in behali of commission merchants, etc 815-833 INDEX. 893 Frozen fish: p Definition -Tgn Industry, uncertainties !!!!!! ^ ! 200-202 Losses in past season 9nn_9m qoq Production and limit of storage ;'.;;'.!'.;'.;;;;; ' 195 Storing and distribution, regulations 7^7 ' 7'?q_74i S«e aZso Pish, frozen. /d/, /dy-74i Frozen poultry, regulations 750-750 Jobbers' Association, Western, statement of E. S. French . 815-833 Storage rates " " t (ja Fruits: ^^^ Baterial activity in cold storage 335 Cold storage, reports to Department of Agriculture 822 828 Distribution — ' Control regulations 510, 730-736 Methods, improvement 830 Dried — Preparation, control regulations 509, 636-638 Regulations 636-638, 691-692 Drying, modern methods 846-847 Marking in storage 817-833, 875-877, 878 Restorage, discussion 831-833 Sale and handling, regulations 497 Storage, time limitation discussion 816-828 Funk, Dr.i discovery of vitamine 847 Future dealing in crop, prohibitions 627, 689 Future delivery: Eggs, remarks 189-190 Sales of storage goods 166-167 Futures, dealing, note 229 Game, storage effects 834 Garbage utilization, hog feeding, etc., work of Food Administration 498 Gies, Dr., testimony on effect of storage on food 156 Gillen, Charles P., mayor of Newark, suggestions for cold-storage legisla- tion 325-334, 347-370 Ginners, cotton, regulations 638-642 Glucose, regulations 507, 703, 722-729 Grades: Flour, differential price - - - 567 Potato, requirements 735-736 Grain: Corporation — Authorization of work on wheat prices 521-522, 532 License fee 159 Elevators, license regulations.. ._. . - - 583-604 Exchanges, dealing in foods, limitation 503 High-priced, relation to prices of eggs and butter 237 Limitations for malting -. 606 Other than wheat, conservation by Food Administration 495 Products, prices, and specifications 590-599, 656, 685-688 Sale for brewing, prohibition 535, 589, 607 Thrashtng division, expenses, and saving of wheat 494 Warehousing for reshipment, judicial decision - 17 Grange, National, statement by Thomas E. Atkeson olo Grape fruit, storage, note j^i Grease, recovery from garbage - - - ; • - - ■ ■ ■ - - - - q ^a^ Grinding, custom and exchange, regulations sob ^os fisi fias Grits, sale regulations and specifications bUb-avb, o»i-?»» Groceries, sales by Swift & Co - - • - ■ ■ ■ ■ ■ ■ ■ - „ „ „ Growth factors in food, removal in manufacture 847-8&U, »»A »&^ GulfofMexicowaters, fishing regulations .-..-...-.---- ''^° '^» Harrison, F. R. , letter to chairman forwarding digest of laws 44 ^ Haugen, Chairman: 3_g gS^^v.v.\;::::;.'.:i32;^-i89:i93;224;^;-i69;27o;2V^440^4i 894 INDEX. Haugen, Chairman — Continued. Questions and remarks on — Fage. Food control and administration 158-160, 384 Packers 312, 313, 316, 317, 318, 323,424, 428, 430,438 Storage 11, 20, 27-30, 40-41, 47-58, 61-68, 95, 100, 112, 115, 117, 124, 132, 133, 138, 149-150, 152-153, 158, 165-166, 188-190, 220-221, 236-239, 243-244, 252-253, 293, 333, 340-342, 397-399, 403, 409, 420-422, 445-446, 831, 832, 850, 854, 855, 856, 857, 859, 860, 866, 867, 868, 870, 875-876, 877 Questions on — Meat and fish 161, 207-209, 273, 290 Prices 25, 291, 303, 328, 331-332, 345-347, 368, 416-418, 433-435 Health: Need of food reform 851 Relation to storage legislation, note 146 Hearings, Sixty-first and Bixty-third Congresses, discussion 154-157 Hearty, E. W. J., statement 875-877 Heflin, Representative: Questions on — Eggs 179, 188, 191, 192, 218-221 Pish ; 207, 395-396 Meat 52 Packers' methods 432 Prices 287 Storage 8, 12, 15, 19, 20, 21, 69, 164, 245-246, 433, 436-437, 443-444 Hens, sale, limiting 497 Hides: Packers' prices, discussion 316 Prices — Increase, statistics 309-311 Quality, etc., discussion 435-436, 437-438 Storage and handling by Armour & Co : 433, 435 Hoarding: Armour and Swift, indictment in New Jersey 339-340 Definition and effect 218 Definition, suggestion by Frank A. Home 133 Eggs, existence of practice 188 Frozen poultry, query 880 Meaning of term, remarks 231, 880 Prohibitions 527, 692, 730, 731, 749, 753, 756, 760, 761 Hogs: Live, number in United States and Europe, 1913-1919 55-57 Minimum price- Aid to farmers, explanation, results. 278-279, 287-288, 289 By food administrator 277-281 Removal, not responsible for price increase 279, 280, 281 Number in South America 56, 57 Number in United States, 1914-1919 406 Price advance, 1919, and causes ' 279 P|»l rt p o 1918, 1919, discussion 416-418 Purposes of Meat Division of Food Administration 303 Statement of Joseph P. Cotton, Chief of Meat Division 536-537 Production — Cost per pound 290, 291 Loss, 1918 289, 290, 291 Products, exports and storage increase, 1919 over 1918 288 Receipts— By Armour & Co., 1918, 1919 406 By months, 1919, prices July 1, 1919 288, 289 Home economics, directors, in States 499 Homes, food consarvation, work of women 499 Hominy : Feeds, regulations 790 Sale regulations and specifications .' 592-599, 681-687 INDEX. 895 Hoover, Herbert: Cold-storage regulations !fan Dried fruits, special regulations '.; fioy «,« Feeding stuffs, regulations of.... ^^^"Sqo Fishing regulations '^^ Interview with Dr. Wiley . baq Meat regulations kq7_^49 Statement on wheat conservation iti Wheat conservation methods . a-i Home, Frank A.: ^°^ Hotel^ 127-171! 173-174 Buying of eggs ■. . _ isq-l QO Wheat saving 492 ■^ChSr°Mo?rilt'^°''^^*' ^'"' ^' ^' '^^^°' '^^sVitutionality," discussion by Hutchinson, Representative : Questions and remarks on storage 13. 21. 35, 36, 38, 40, 45, 50. 53, 75, 126. 143, 144. 152, 153, 159, 160, 163, 164. 165, ^ ,. 216, 217, 239, 244, 337-338, 410, 440-443, 445 Questions on — Butter 43 58 ^f Ks .'.'.'.'.'; '8,'56,'i8i,"i82', 191 fish 203, 204, 207, 229 Meat 52 Packers' methods 419 Prices 229, 358, 374-375, 382, 415." 420,' 869." 870," 872,' 873, 874 Ice: Manufacture, ammonia shortage 522 Shipment charges, comparison with charges for coal 370-372 Illinois, cold-storage law 455-457 Indiana: Cold-storage law 458 Fruits and vegetables, note 828 Inland Traffic Division of Food Administration, work 497, 514^515 Insecticides, arsenic shortage, control 523 Inspection: Cold-storage plants, authority to Agriculture Department 9 Difficulties 143 Egg, practice and usefulness , 214 Federal, discussion of features desirable 165 Necessity 149-150 Need for extension of limit 147 Objection to internal-revenue methods 150 Storage, usefulness ■. 253 International Apple Shippers' Association, statements 815-833,-.877-878 Interstate: Business — For cold-storage warehouses, definition 74-77 Percentage of total storage business 153 Commerce, discussion of application of expression 153 Iowa: Gold-storage law 460-462 Fruits and vegetables, note • |28 Inventory of property of Food Administration, 1918 524, 810-813 Jackson, W. F.: Explanation of cold-storage record cards ■ - - - - ■ - |q^^q^ Statement and answers on eggs 292-295, i9b-297 Jacoway, Representative: Questions and remarks on- ^ ^^^ ^^^_^^^^ ^^^^ ^^ "^y;";::::::;;::::::::;::;:::::::::: 14,17,31,88,94, Storage ' '164, 110, 136, 142, 147, 148, 155, 156, 138, 163, 164, 358, 362 Questions on— MpBtS ^i. 3 p„ !;,!.■" 319,320,339-340,435-436 Prices..".'.'.'.".".'-- ! .].......-.' 147, 148, 343-344, 373-375 896 INDEX. P»ge. Japan, beriberi disease, cause and prevention 847 Jobbers, nonperishable foods, licenses, regulations 507, 650-705 Jones, Representative: Questions and remarks on — Eggs 181, 392 Fish 394-395 Prices. 179, 186, 207, 209, 210, 217, 218, 235, 236, 352, 381-382, 817, 818 Questions on storage ._. 98, 361-362, 394, 821, 828, 840 Jute bags, importation and conservation by Food Administration. 523 Kansas : Cold-storage law 462 Eggs, prices and handling costs, discussion 225-227 Labeling: Cold-storage — Goods, limitations 76-77, 78, 83 Products, proposed regulations, and value 120, 125 Packages, in repacking 132 Wheat and flour regulations 560-562 Labor: Farm, migration to city, discussion 367 Prices, relation to food production 379-381 Relation to prices of food, note 236 Xamb, cold-storage effects 841 Lard: Containers, regulations 795 Prices, holdings, and profits 271, 272 Substitutes — Containers 795 Sales regulations 658, 660, 661 Law: Federal, benefit by securing uniformity of marking 165 Massachusetts, on cold storage 214 New York, on cold storage 258 Proposed, relation to existing conditions 147 Storage, effect of short-time limit 163 Violations, packers and others, prosecutions and delays, cases cited. . . . 112-116 Warehouse receipts, application and value 165, 166 Laws: Cold-storage — Compilation, scope, etc 12-13, 19-20 Of foods, various States. . i 447-486 Storage — Need of uniformity 259 Remarks on several States. 225 Leaflets, Pood Administration, distribution 491, 492 Leather, profiteering, discussion 327, 328 Lee, Representative: Questions and remarks on — Packers' methods 430-431 Prices. 416, 418 Questions on — Butter 45 Storage 3, 48, 229 Legislation: Cold-storage, constitutionality of proposed law 34, 37-38 Federal- Helpfulness probable ■ 240 Request of cold-storage industry 31 Price, effect on production, remarks 219 Proposals of the President 221 Proposed — Cold-storage regulation, early history and hearings ■ 85-87, 88 To force goods out of storage, remarks. 214-215 State, discussion bjr Frank A. Home 133-134 Use in reducing living cost, remarks 219 INDEX. 897 Lesher, Eepresentative : Questions on — Page, g'ltter 43 49 ^ffis 179,180 Insh 28 Storage.., '^y^y^v^v^'^'.v/^'.'.'.'.'.'.vn2,l64 Kemarks on prices 2^4g Library work of Food Administration ........]...]]. 491 License, cold-storage plants, discussion 316 Licenses: Brewers use of foodstuffs 495 532 539 Cold-storage warehouses '. . ' 863 Licenses, control methods for interstate commerce warehouses 74-75 Exceptions, special 554-555, 720-721 Fish, storage, regulations 199 Food Administration — General regulations 499-500, 542-555, 800 Remarks 158, 159 Special regulations 555-793 Frozen fish, reports 200 Instructions and warnings 169 Requirements for cold-storage warehouses 6, 10 Special regulations, various industries 555-793 Storage plants, laws of various States. 456, 459, 460, 464, 466, 469, 471, 473, 476, 478, 480, 482, 483, 484 Storage, wording 169 Vegetable oils, handling and manufacture 496, 642 Wheat, millers, regulations 501, 555-583 Limits: Storage, discussion 176 Storage, remarks 135-136, 137-144 Time^ on cold storage of fish 194-198 Littlefield, Charles W.: Attorney in storage hearings 154, 156 Testimony 156 Living cost: Effect of legislation, remarks 219 Relation to warehousing 143-146 Loans: Cold-storage men to shippers, prohibition necessity 36-37 Storage warehousemen to storers, evils of system 74 Use to control markets 151-152 Losses, warehouse, liability for loans affected 162-163 Louisiana, cold-storage law. ^^^"^ol Macaroni containers, regulations • 794 Machinery, improved, effect on food production cost 873-875 Malt: Liquors, manufacture, prohibition, President's proclamation 495, b6^ Manufacture and use, control regulations Ao^Rnft Maltsters use of grain, limitations 7?2-729 ^^r^^!"!":.-.: : :;::;::;:;;:::;:::;:: -590:594:608:613:640:642, 654:666 Marine transportation work of Food Administration dio-oio News service, appropriations, 1918, 1919 45 Stabilizing, note Bureau — 45 Appropriations, 1918, 1919 ■ 7Q=w7^fi Doc. 7, citation on grading potatoes 910 Figures on total storage of frozen fish, note |^^ Notes .- 045 Reports as check on storage time Reports on cold-storage houses, accuracy ssfi 8^7 Reports on foods instorage-. : °~'°' Xq„ Reports on storage of eggs and butter, comparisons ^^^ Reports on storage warehouses 898 INDEX. Market — Continued. Page. Cattle, control by packers, discussion 303-306 Farmers', establishment in Newark, plans and advantages 348-349 Manipulation by control of bank loans 151-152 Terminal, wheat prices 521, 534, 536 Marking: Apple packages in storage 877-878 Cold-storage goods, authority 76-77, 78 Poods in storage, utility 863-864 Food-storage requirements 6-8, 10, 20-21 Methods, cold-storage goods, New Jersey and other States 38 Packages of fruits and vegetables 875-877, 878 Storage goods, inclusion of prices 145 Marks: Food product, relation to taxation 242-243 Storage and marketing, remarks on need and usefulness 250 Storage food. New York reciuirementa 258 Storage warehouse, discussion of use and transfer 164 Maryland, cold-storage law 464-466 Marshall, Herbert C: Federal storage legislation, statement 31-74 Statement on amounts of foods in storage 880-882 Massachusetts: Cold-storage law ; 466-468 Storage law, remarks 213-214 Maximum rates, relation of other prices 169 McKellar, Kenneth, Senator, statement on cold-storage legislation 85-107 McKinley, Representative: Questions and remarks on prices 423 . Remarks on packers' practices, 424 McLaughlin, Representative, Michigan: Question on meat 55 Questions and remarks on — Food-control bill 3-5, 15, 16, 20, 21, 51, 77, 78, 85, 86, 348-353, 377 Packers' practices 328-330, 331 Prices 331, 345, 372-373, 383, 446 Storage 25, 28, 67, 68, 78, 79, 80, 81. 83, 84, 89, 91, 96, 97, 105, 106, 107, 119, 123, 124. 132, 134, 135, 136, 137, 138, 141, 142, 152. 154, 155, 157, 354, 404-407, 409-410, 816, 820, 821, 822, 825, 826, 829 Question on — Butter 29,30,44 McLaughlin, Representative. Nebraska: Question on — Fruit 251,252 Storage 12,32,120,125 Questions and remarks on prices 222, 429, 430 Questions on — Butter 49,101 Eggs 24,49,101,125,444 Meat supply .' 437 Remarks on hoarding 842 Meat: Fresh, stamping and tagging 131 Frozen, storage time 855, 856, 857, 858 Packers, edible products, control regulations 504r-505, 537-542 Production — And per cent in cold storage at one time 51-57,72 1919, with comparisons 51-57 Quality after long storage frozen 156 Storage charges 161 Meats: Beef, veal, and mutton, cold-storage, record card and explanation. . 293-294, 297 Prices — Cold-storage holdings, and profits 270, 271-272 Discussion 52 In storage and trade, amounts 880-881 Production, per capita consumption, per cent in cold storage 272-273 Storage rates 169 INDEX. 899 Page. Meinrath Sugar Distributing Committee, telegram on sugar 619 Merchant, commission character and reputation for integrity, remarks.. .., 213 Merchants: Fish, profits in handling fish 206-207 See also Commission merchants. Mexico, food trade relations 524 Michigan, cold-storage law 468 Milk: Canning, regulations 634-636 Commissions, work in various localities 511-512 Condensed, evaporated, or powdered, regulations 634r-636, 661 Containers, regulations : 794 Cost of handling from producer to consumer, discussion 358, 368 Depots, establishment by municipality, Newark, N. J., management and results 351-352 Dried, value as food 844-846 Drying, patents for 845-846 For French babies 845 Hebe, deficiency in growth factors 853 Importance in human food 844, 845, 853 Prices — Butter-fat basis 44 In New York, and Newark, comparison and discussion 358-361 Increase 511-512 Miller, John D., representing National Board of Farm Organizations, state- ment 444-446 Millers: Corn, oats, and barley, regulations 502, 589 Wheat, regulations 555-583 Millfeed: Distribution regulations 580, 582 Wheat, prices, and regulations 502, 513, 786 Milling: Custom and exchange grinding, regulations 568-569, 579, 581 Industry, war-time profits 851-852 Wheat, loss of growth factors in bran 849-850 Wheat, return of flour, profits, etc ^^^"^qo Mills, flour, saving of wheat - nA; "Aofi tH Minahan, Representative, questions and remarks. : a-so, a^b, dbo Minnesota, cold-storage law 9oq_94r Missouri, cold-storage conditions ■ ■'^9 '^^" Molasses: „„. Containers, regulations - '^^ Feeds, regulations.. . - - - - - - - - - - - - - - ■ ■ ■ - - '""^'gq Regulations and specifications 507, 622-626, 701-703, "22-729 Money wasting on luxuries - - I'oi ioq Monopolies, various industries, growth, methods, results -l^J- ^^^ Monopolv, egg, opinion as to existence - --.--■-. ■ ■ ■ - . ° . Morrill, Chester, statements on cold-storage legislation. . . . -■■-■- °-''j''^lj Munnecke, V. H., statement on beef, hand and storage by Armour & Co. . . . 4d^-4d» Mutton (and lamb), production and per capita amount ■ |"^ Mutton, production cost and selling price, comparison 607 "Near beer" manufacture control Nebraska: 468-471 Cold-storage law ooa Cold-storage law, fruits and vegetables, note 471-472 New Hampshire, cold-storage law New Jersey: 472-474 Cold-storage law ■ 50-51 Cold-storage laws, reference and comparisons ^^^^ Food prices, comparison with other States Mayors' committee of municipalities— 225 Personnel "■!•'*' V " V ^9fi— '^97 Resolutions on cost of food and other necessities, text 335 Perishable foods in storage, value 134-137 Storage law, disciission 335 Storage-warehouse law, scope 900 INDEX. New York: Page. Cold-storage law 475-476 Egg storage, quantity, note 232 Farms and markets department, bulletin on storage, remarks 249-250 Law for storage, compliance 163-164 Recommendations on cold storage 248 Noodles containers, regulations 794 North Dakota, cold-storage law 476-478 Oaths, administering to warehouse officials 14 Oats: Prices and regulations 502-503, 589 Products, specifications - 562, 599, 688 Ohio, cold-storage law 478-480 Oil: Cottonseed, production by packers 308-309 Mills, cottonseed, control by packers, discussion 307-308 Oils: Cottonseed, peanut, etc., production and effect on butter use 58 Vegetable, control 496, 642-649 Oleomargarine: Law enforcement by taxation 117-118 Not good food for children 848, 853 Number factories, annual production, and consumption 45-46 Regulation for Illinois 132 Sale regulations 649, 658, 69-701 Option sales, relation to fixing prices, remarks 213 Orange juice, value as antiscorbutic 844, 845, 849 Oranges, storage, note 252 Oysters: Cold storage, experiments 837 Regulations : 748-749 :kage differentials, flour, etc 565, 599-602 Packages: Certain commodities 793-795 Sugar, regulations 622 Packers: Banking interests, relation to cattlemen 308 Cold-storage — Methods and law compliance 93-94 Products, opposition to food-control law 91-94 Five largest, list 323 Methods and criticisms 151 Objections to cold-storage regulations 125 Ownership of storage capacity 160 Share in butter and eggs trade, note 232 Packing houses, intimation of favoritism by food administrators 276-287, 289, 290 Palm kernels and oil, regulations 645-647 Patents for milk drying 845-846 Peaches: Dried — Regulations 636-638 Storage rates 168 Loss in transportation 876 Storage effect, remarks 251-252 Peanut feeds, regulations 647-649, 788-789 Peanuts, control regulations 638-649 Pears, storage rates 168 Canning, regulations 626-629, 633 Dried, sale regulations 511, 630-631, 688, 690 Pellagra, cause and prevention 849 Pennington, M. E.: Statement on cold-storage for poultry, eggs, and fish 385-399 Testimony on effect of storage on food 155, 156 Pennsylvania: Cold-storage law 480-482 Cold-storage law discussion 821 Storage law with short-time limit 163 Storage regulation, bad effect 241 INDEX. 902 Perishable food, regulations for storage, first draft 132-133 Perishables, preservation and handling, work of Pood Research Laboratorv' ' 385-399 Permit system for transportation of supplies 515 Phillips, R. G., statement on International Apple Shippers' AsVociation 877-878 Pickles, containers, regulations 704 Pies, regulations l.[.\..\.\.] 717 Plant inspection, discussion \\ j^o Pledge card for farmers, flour substitutes coi Pork: ""^ And products, holdings, 1918-1919 271-272 Cold-storage processes by Armour & Co '. 403-404 Export prices, limitation by Food Administration. . 280 Exports, 1918 ".;.;;; 5^9 Exports, Armour & Co. , 1919 ...].]\\\.... 406 Foreign contracts by Armour & Co .].] 412 Price, minimum, objects and results ___[ 281 Prices — Comparison at various markets 278-279 Relation to price of com 417—419 Stabilizing, work of Food Administration 518, 519 Production — Increase 518-520 Increase by minimum price 278 On garbage feeding 498 Products, stocks in packers' hands, July 1, 1919 324 Stocks, value, handling and storage, Armour & Co. statement 399-432 Storage, capacity of Armour & Co 409 Potatoes: Conservation to prevent waste 496, 517 Distribution, special regulations 734^736 Growing, profits 870 Selling to bakers 578 Porter, Dr. Eugene H., New York commissioner, notes 249, 250 Poultry: Amount in cold storage and prices, June, 1918, 1919 91-92 And egg crop, value, and loss from deterioration 391-392 Business of Armour & Co : 441-442 Cold-storage — Effect on palatability 22-23, 26, 27, 30 Record card and explanation 293-294, 297 Distribution, control regulations 510, 749-754 Farm prices, 1918-1919 284 Farm-price increase, June 1, 1918, 1919 262-263 Frozen, letter of J. H. White & Co 880 Handling, cold-storage, value, etc. Statement by M. E. Pennington 385-388 Keeping quality in cold storage, time limit 100 Prices and cold-storage profits, 1913-1919 266 Production, 1918, consumption per day, percent in storage, June 1, 1919. 262-274 Quality after long storage frozen 156 Shipping methods, legal control 93, 100 Stamping and tagging 131 Stocks in packers' hands, July 1, 1919 ^f J Stocks on hand by Swift & Co., June 1, 1917, 1918, 1919 262, 274, 275 Storage period ''^^"'■"t'co Storage rates ■- l°° Storage time limits *>79, asu Preservation, fish, remarks on methods 1="' President: . oik oiq Demand for reduction of prices, notes ^^°< ^^^ Proclamation — .._ Limiting brewers' consumption of foodstuffs, 1917 495, b6Z, bU/ On bakery products, extracts from 7/0 On feeding stuffs '^| On salt-water fishing ■ ■ '^^ Prohibiting manufacture of malt-liquors - T^ojit Proclamations fix;ing wheat prices °^^ *"*" 902 ISTDEX. President — Continued . Recommendations — Page. For price reduction ' 215, 219-220 For price reduction, remarks 215, 219-224 Transmitting report of Food Administraljion 487 Price: Fish, relations of canned and frozen fish 202 Fixing — Fish 204-207 For eggs, discussion 183-184, 212-213 Prices: American, relation to world prices 328 Beef- Basis for sale to Government 434 Control by packers, discussion 436-437 Basing on gross weights 170 Canned goods ,.. 631-634 Cattle, control by packers, discussion 303-306 Cold-storage goods, conditions regulating 263-266 Com products 502-503, 590-592 Cost and selling, display on foods in selling, discussion 220-221 Decrease, discussion of means 320-322 Discussion of factors influencing 176 Effect of bringing food products from cold storage 285 Egg- Cycle and factors influencing 176-177 Relation to cold storage 175 Relation to cost of feed 237 Fish, agreements with fishermen 509, 631-633 Food- Comparison with other commodities 865 Effect of Government sales in New Jersey 331 Government and retail, comparison 331-332 Stimulation ^ 500 Foods, nonperishable 653-664 Frozen fish, variation 203, 204-205 High- Causes and control, statement by Herbert C. Marshall 58-74 Control by law enforcement, not more laws 83 Effect on farmers 82 Hogs, statement of Joseph P. Cotton, chief of meat division 536-537 Increase, effect of food storage 842, 843, 855, 859 Making for eggs 181 Marking^ — On packages in cold storage, discussion 818-821 In storage goods, discussion 145-148 Maximum^ — For frozen fish 199 Provisions 170 Milk, Newark and New York 358-363 Minimum, prohibition within periods named 170 Normal value as factor 183 Order for reduction 169 Pork, relation to price of com, discussion 417-419 Regulation, by Government, protest by farmers 379-385 Relation to^ — Demand 217 Handling labor 170 Production, note 228 Storage business 148 Schedules, filing 170 Season, remarks and ruling 170 Sirups and molasses 723 Stabilizing by cold storage 256 Sugar 617, 618, 623 INDEX. 903 Pricee — Continued . Wheat— Page. Food Administration control 501, 521, 529, 531, 562-565 Guaranty, injury to farmers 868-870 Price-making, eggs '.'.'.'.'.'.'.." 229 Proclamations: Fixing wheat prices 533-536 Of President in regard to food, notes and text 495 ^ ,. . . , , 53^-536,549,555,607,720,741,781 On licenses for food manufacturers, etc., lists 549 555 Profiteering: ' And price control, discussion 65-70 Farm machinery '_ /_ 68, 381-382 Food— And other necessities, suggestions for control 327-330 In milling industry 851 Leather products 382 On food, discussion 872-873 Storage, public opinion concerning, note 211 Profiteers, existence in question 219 Profits: Cold storage, remarks and table 190 Control, work of Food Administration 500-51 2, 562-565 Egg dealers, discussion 226-228 Eggs and butter, war results 228 Fish industry 206-207 Fish trade, discussion 210-211 Meat packing, regulations 538-542 On canned goods : . . 633-634 On coffee 692-699 On com products 593 On cornstarch 660, 661 On sirups, etc 722 On sugar 623, 625 On wheat, millers, control 562-564, 586 Property, inventory. Food Administration, 1918 524, 810-813 Prunes: Dried, regulations 636-638 Storage rates 168 Pumell, Representative: Questions on eggs 838, 839 ■ Questions on meat 855, 856, 857 Questions on prices 821, 824, 828 Questions on storage ^ 831 Railroad: Administration aid in handling perishables 497 Employees, wages increase. - 865 Dned, regulations ifio Storage rates |°° Rate schedules, variations ^^■'■ Rates: Chargeable at cold storages, uniformity necessity 32-35, 39 Cold-storage — „„ Discrimination, control - '^ Schedule of Food Administration ib»-iba See also Prices. ^"^ F?od Administration, statements for 1918 ..... .- 524, 808-809 Warehouse, to be filed with Collector Internal Revenue sm Red Dog flour, definitions Riddick, Representative: „ 49?_424 427 Questions and remarks on pnces 65, 66, 70, 4^2-4^4 4^7 Questions on food control bill ^*' ^^' g23-624 Refiners, sugar cane, regulations Refrigeration: „ , , , , • 1 4.- qi_q9 Association, resolutions urging Federal storage -legislation ai^s^ Eggs for shipment abroad ,^0 Relation to Keeping perishables, note 904 INDEX. Page. Repacking, duty of transfer of marks 132 Reports: Cold-storage warehouses — Law requiring 41 Number received, and scope 35-36, 40-41 Fish industry 199, 200 On stocks of fruits and vegetables in cold storage 822, 828 Quarterly, storage -warehouses to Agriculture Department 10, 13 Cold-storage products, discussion 17-18 FruitB and vegetables 831-833 Retailer, price regulation by municipality 350 Retailers, food products, regulations 1 507-508, 650-705 Revenue, raising by taxation. Congressional authority, discussion 10-12, 14, 18-19 Rhode Island: Freedom from cold-storage law 164-165 Law for sale of eggs 482 Rice: Control regillations 504, 608-617, 654, 655, 703-704 Margins, allowable 654-655 Millers and manufacturers, control regulations 608-617 Products, specifications and sale regulations 612-613 Rickard, Edgar, report of Food Administration for 1918 488-525 Rockflsh, Pacific coast, true name 739 Rolls, regulatioiis 710-714 Rubey, Representative: Questions on — Eggs 164, 167, 186, 188, 268, 839, 843 Prices 152, 244, 245, 364, 822, 823 Storage 134,147,148.155,164,167,252,827,832 Rye: Bread, food value 850 Products specifications 562, 598, 599, 687 Salmon: Canned, prices and regulations 631-632 Storage, usefulness 837, 855 Salt containers, regulations 794 Samples, cold-storage, collection by Agriculture Department 14 Sardines, prices 633 " Scalpers, " stockyard, practices 4]7 Schools, cooperation witn Food Administration 491 Screenings: Rice, use prohibited in rice flour 612-613 Wheat, sale, regulations 563, 565 Scurvy, cause and prevention 848 Shad storage unwise , 836, 840, 855 Shipping: Eggs, regulations 756-757 Wheat, regulations 568-570 Shoemaker, Floyd M., statement on apple storage, etc 246-259 Shortening in bread limitations 706-720 Sick persons, food needs 854 Sirups: Containers, regulations : 794 Regulations, prices, specifications, etc 507, 622-626, 701-703, 722-729 il supply conservation 522-523 Slayback, D. H., mayor of Verona, N. J., discussion of prices, causes, etc 375-377 Slaughtering, per cent of animals, to packers and private butchers 283 Smelts, conditions in handling 207 Soy bean feeds, regulations 647-649, 788-789 Soy beans and oil, regulations 645-647 Spaghetti containers, regulations 794 Speculation: Cold storage, remarks 190 Relation to storage business 179 Repression by war and return 230,231 INDEX. 905 Spices, ground, containers, regulations yoi Spoilage, storage, discussion of time and cases .,.. 1^7 State laws, cold-storage; Regulation, small number of States possessing . ]26 477 storS'' :::::::::::::::: 477U86 Business — Criticism, remarks and quotations 246-248 Injury by forcing goods on market, remarks 218 218-219 Capacity — ' 0-wnership of big packers ^qq Total, statement of Mr. Home, modification 173 Charges, remarks and figures fgO ] 61 Cold— _ •' ' Discussion of profits, with table 190-191 Economic value '. .\[ .V. . .\ .\[[ . . 257 Effect on fish industry, remarks 196 Entry free to all applicants, note ..'.".."./.!!.. 237 Monopoly question ...."..'..'....'.. 191 Need and usefulness 248 Relation of size, of plant to profits ....'. 245 Value, as discussed in publication .' '. ..... 254 Date, marking requirements at warehouses ..[ g Dividends, remarks 252 Effect— In reduction of prices 176 In stabilizing prices 256 On foods 22-25, 26-31 Eggs— For foreign market, quantity in August, 1919 182 New York, destination for use '. 188 Quantity in storage 1919, remarks 233 Relation to prices 181 Reports as to quantity misleading. ,. . 191 Feeds, in elevators '. ,.. 784,785 Fish, limit of time, discussion 208-209 Food, time limits suggestion 863-864 Foods- Prejudice against , 254^256 Time limit, discussion by Dr. Wiley 836, 840, 843, 8,54, 855, 856, 861 Fruits and vegetables, time limitations , 816-828 Goods — Deterioration, comparison with fresh goods 167 Foreign demand, relation to trade 216-217 Increase as cause of public discontent 148-149 Houses — Licensing - ,.---, -, 158-159 Public and private, use and division of space 282, 283 Public, member of egg-storing patrons, etc , 275, 282 Total cold-storage space, recent reports. . ., , 275 Law, New York, discussion ■ , 249-251 Laws — Various States, digest 447-450 Of various States, text ,- ■--■- 450-486 Legislation — Advantages 313-314 Federal and State, r6sum6 - - ■ - ■ 400-403 Uniform-act discussion 133-134 Limitations natural, remarks .- •. • 1^6 Limits, discussion 317-318 Lots— Cumulation |'" Definition ■ • l™ Necessity and effect on prices - - ' -"- - |l;t Plants, New York regulation '^°' Products— Forcing on market, effect ■^^ f'^^ List 1^" 906 INDEX. storage — Continued . Products — Continued. ^*^®- Movement from warehouse to warehouse, remarks 253 Need of Federal law to control time limit, remarks 244, 245 Percentage in interstate trade 242, 243, 244 Food Administration, tables, etc 168-171 Note 237 Stocks — Insufficiency for local packing-house customers 285 On hand, remarks 215 Territory considered by New York storage authorities 178-179 Time limit in New York 258 Time limitation, remarks 240 Trade, regulation by publicity, remarks 245-246 Warehouse, time-limit restrictions, discussion 7, 15-17, 80 Warehouses, control regulations 510, 800-801 Wheat, at elevators 583-584 Stores, chain, advantages 320 Strikes, cause in New Jersey 327 Substitutes: Butter, regulations, special 649 Flour — Definitions 706-708 Regulations 577-580, 677-680, 713-721 Use to save wheat 493-494 Lard, sa'es regulations 658, 660, 661 Sugar: Beet, producers, special regulations 624-625 Cane, refiners, special regulations 623-624, 625 Certificates, use 620-622, 666-670, 677, 710 Conservation, 1918 495, 496 Control regulations 505-507, 617-626, 664-670, 677 , Distribution control 505-507, 513, 617-626, 677 Equalization Board, creation cost, and object 506, 513 Manufacturers and refiners, license regulations, 617-626 Margins allowable 656-659 Price, increaie 506 Purchaies for Allies 507 Sales regulations 664-670 Uses, limitations 620, 622, 665-670, 710 Supplies transportation, work of Food Administration 497, 514-516 Sweet potatoes, keeping, difficulty 842, 843 Swift