CONGRESS

COLD STORAGE BILL.

SEPTEMBER 25, 1919.-Committed to the Committee of the Whole House on the state of the Union and ordered to be printed.

Mr. HUTCHINSON, from the Committee on Agriculture, submitted the

following

REPORT.

[To accompany H. R. 9521.]

The Committee on Agriculture, to whom was referred H. R. 7970 and H. R. 8626, begs to submit as a substitute for those bills. H. R. 9521, "A bill to prevent hoarding and deterioration of, and deception with respect to, cold-storage foods in interstate commerce, and for other purposes," having considered the same, report it to the House with the recommendation that it do pass.

During the past few years the cost of living has been advancing at such a rapid rate that the wage earner as well as the salaried man has found it almost impossible properly to provide for the needs of his family. While the war was raging and tnis country was called upon to supply the world with food and other material, high prices were accepted by our people in a spirit of patriotism and with a willingness to make every possible sacrifice for the winning of the

war.

Now that peace is at hand and we are entering upon the period of reconstruction those in control of the food supply of the country have been inclined to maintain and even advance food prices beyond the point of reason. Agitation was started to ascertain the real cause of this trouble, as it is the general opinion, especially in view of the fact that all available reports showed there was a greater supply of foodstuffs on hand and in prospect than at any period in our history, that present high price levels are unwarranted and unnecessary. Investigation showed that the cold-storage warehouses of the country were burdened with supplies, and in many instances filled to capacity. There seemed to be no agency vested with power to force this food on the market, and as a result there was little difficulty in maintaining prices so long as this huge stock was withheld from regular trade channels.

A bill (H. R. 7970) providing for the regulation of cold-storage warehouses was introduced and referred to the committee, on July 29, 1919, and on August 11, 1919, hearings were started on the bill and since have been held with the idea of gathering data for perfecting a bill which would adequately meet the situation.

There were represented at those hearings the largest dealers in foodstuffs in the country, also cold-storage warehousemen, a committee of mayors of municipalities of New Jersey, and officials of the Department of Agriculture. The situation was discussed from every angle and much valuable information furnished which shows the urgent need of a Federal cold-storage law.

It was brought out at those hearings that the power of Congress to regulate and supervise the cold-storage warehouse was limited to two methods, namely, the taxing power, which is usually objectionable, and the regulation of foods going to or from such establishments in interstate commerce. As about 90 per cent of all foods placed in cold storage travel in interstate commerce it is thought the complete control and supervision of that large percentage will enable the Government to prevent hoarding and deterioration of foods and regulate the distribution thereof.

Under ordinary circumstances cold-storage warehousemen will have no previous knowledge as to the ultimate destination of food placed in his establishment, and therefore, as a matter of efficient management, and for his own protection he will see that all food for which he is responsible is treated in accordance with the regulations under this bill. This will give the Government practically 100 per cent control.

The records of the Department of Agriculture as of July 1, 1919, show there is a large increase in the amount of food in storage over the corresponding period of last year, yet with this increased surplus prices to the consumer have been mounting higher and higher.

The lack of a permanent uniform law giving some agency authority over the food situation of the country is largely responsible for this condition, and it is to remedy this and to prevent the repetition of a like situation in the future that the passage of this bill is asked for.

Under section 3 the bill provides that any article of food that has entered or will enter interstate commerce and is placed in storage, such article of food or the container thereof shall be plainly and conspicuously marked with (1) the statement that it is cold storage food, (2) with all dates when put in and taken out of cold storage, (3) together with the names and location of all warehouses in which so stored. It also forbids the delivering or shipping of food in commerce by a cold storage warehouseman unless properly marked and identified.

There was considerable discussion as to how to regard food held in storage temporarily pending the accumulation of a sufficient amount to make up a shipment or certain quantity, and the bill provides that while all food placed in cold storage for the first time shall be marked; if an article of food is removed from cold storage for local consumption before the expiration of 30 days following the date when such article of food was first placed in cold storage the statement that the article is a cold storage food may be removed.

Sections 4, 5, 6, and 7 deal with the marking of articles of food or the containers thereof in storage should it be commercially imprac

ticable to mark such articles in accordance with the requirements and provides the method to be used and the procedure to be followed in handling such food.

Section 8 forbids the altering, mutilating, destroying, obscuring, obliterating or removal of any mark placed on any article of food or the container thereof in c mpliance with regulations.

Section 9 of the bill limits the period of time to 12 months for which food in commerce may be held in cold storage, and provides that no article of food shall be delivered or shipped in commerce after the expiration of 12 months from the date upon which such article of food was first placed in storage. Exception to the period of storage is made in the case of cheese held for the purpose of ripening and improving the quality thereof.

For the conservation of food and the protection of public health the Secretary of Agriculture is authorized under section 10 to forbid any warehouseman to receive in commerce any article of food for storage in any warehouse, or to transport in commerce any article of food in a refrigerator vehicle, after such warehouse or refrigerator vehicle is found to be insanitary or otherwise unfit for the storage or transportation of any such article of food.

Under section 11 every warehouseman, and every person transporting in commerce in a refrigerator vehicle any article of food, shall make in such manner or form, verified under oath or otherwise, as the Secretary of Agriculture may require: (1) Reports giving full information as to the amounts of all articles of food held in storage in any cooling or chilling room, and in any refrigerator vehicle maintained, operated, or controlled by him, and the Secretary of Agriculture may require any warehouseman to make such other reports or returns as to amounts, ownership, and storage space.

Under this bill the Secretary of Agriculture is given unlimited authority to conduct investigations of any kind with respect to food in commerce, examine records of warehousemen, take necessary action to prevent adulteration or mixture of foods in storage, and provide for the disposition of food held in storage in violation of this bill.

Penalties for the violation of the different sections of this bill are provided throughout, and it is thought the Government is given. ample power to regulate and supervise the food supply of the country and prevent the future hoarding of food and the undue enhancement of prices of the necessaries of life.

The attitude of those directly interested in the cold-storage business towards legislation of this character can best be illustrated by the incorporation in this report of the following statement made before the committee by Mr. Herbert C. Marshall, Assistant Chief, Bureau of Markets, Department of Agriculture. Mr. Marshall said:

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 Administration was about to go out of existence the gentleman 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 cold-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 attitude of that body. They said:

"Resolved, That it is the sense of this meeting that the 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 distribution, 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 resolutions were passed at a joint convention of the American Association of Refrigeration and the Cold Storage Subdivision of the American Warehousemen's Association, which are the largest national organizations interested in these matters.

In many respects this bill is an enlargement and extension of the food and drugs act of June 30, 1906, in that its object is the Federal control and supervision of the Nation's food supply.

The regulatory features of the bill become effective immediately on its passage, but in order to give those coming under its provisions an opportunity to adjust their businesses to meet the requirements of the bill the penalties are not applicable until 90 days from the date of its passage.

The Department of Agriculture with its able corps of workers scattered throughout the country will be able to assume the additional burden imposed by this bill at very little extra expense, and, therefore, it is thought that the appropriation of $50,000 carried in this bil will be sufficient to cover the cost of any additional expense made necessary by its provisions.

CONGRESS,

OPERATION OF TRANSPORTATION SYSTEMS UNDER

FEDERAL CONTROL.

SEPTEMBER 30, 1919.-Ordered to be printed.

Mr. Escн, from the committee of conference, submitted the following

CONFERENCE REPORT.

[To accompany S. 641.]

The committee of conference on the disagreeing votes of the two Houses on the amendments of the House to the bill (S. 641). to amend section 10 of an act entitled "An act to provide for the operation of transportation systems while under Federal control, for the just compensation of their owners, and for other purposes," approved March 21, 1918, having met, after full and free conference, have agreed to recommend and do recommend to their respective Houses as follows:

That the House recede from its amendment numbered 1.

That the Senate recede from its disagreement to the amendments of the House numbered 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, and 19, and agree to the same.

JOHN J. ESCH,

E. L. HAMILTON.

Managers on the part of the House.

ALBERT B. CUMMINS,

ROBERT M. LA FOLLETTE,

Managers on the part of the Senate.

O