FRIDAY, FEBRUARY 1, 1924.

SUMMARY OF FOREIGN WORK.

Mr. ANDERSON. I understand you want to make a further statement on the item which we were discussing last night.

Mr. TENNY. Mr. Anderson and members of the committee: We feel that we could prepare a statement that would summarize that foreign work and give a better picture of it than perhaps you have at the present time. We would like to have the privilege of inserting in the record an outline of the work, personnel, and other features of the work that would help clear the record.

Mr. ANDERSON. Without objection that may be done. So far as I am concerned, I am willing to go on record on this matter right

now.

The idea which I think moved all of us in establishing this service. was the supposed need, at least, of setting up some men in foreign consuming and producing countries who could keep the farmers advised as to the larger movements respecting consumption and production of competing agricultural products. I do not think this idea has been carried out.

Mr. BUCHANAN. Let us have the statement in the record as best he can get it up and let us see what it is.

FOREIGN COMPETITION AND DEMAND.

REVIEW OF EXPENDITURES AND OBLIGATIONS FOR FISCAL YEAR ENDING JUNE, 1924, AND OF WORK COMPLETED OR TO BE COMPLETED IN THE YEAR.

In the current fiscal year we have had eight field workers abroad on European problems and one field man from South America at work finishing up his reports. Another man is leaving for Europe this week. Each of the men who have been abroad during his sojourn abroad has made periodic reports to the Washington office on the current economic and agricultural news from the viewpoint of the farmer. They have kept the department informed by correspondence, radio, and cable of developments in foreign markets which affect the demand for our agricultural products and of prospects of crop and livestock production. They have been aiding in extending and strengthening the markets for agricultural products in foreign countries. Germany, for example, has recently been persuaded to admit additional pork cuts from the United States. Our field men are assisting in distributing cotton standards as a part of the program for putting into use in Europe universal American cotton standards, and are distributing literature concerning cotton standards and cotton grading as a means of promoting good will and increasing the demand for American cotton.

In addition to making current reports, each field man has made a study of special problems and as a result 18 special reports based upon personal observation and statistical analysis have been prepared.

Mr. Bullock, who has been working in South America, has completed three reports: "The Agricultural Situation in Argentina," dealing with the methods of livestock and field crop production, agricultural tendencies, potential competition, and outlook in that country. The Agricultural Situation in Chili," dealing with the methods of livestock, field crop, and fruit production, etc. "The Agricultural Situation in Peru," similar to the two foregoing reports.

L. G. Michael, who has directed the agricultural survey of Europe, has prepared two reports: "The Agricultural Situation in Hungary," published in mimeograph form, dealing with the reconstruction of agriculture and potential competition, especially in wheat production. "The Agricultural Situation in the Danube Basin," a bulletin now in press, dealing with agricultural conditions in Austria, Czechoslovakia, Yugoslavia, and Hungary.

Edward A. Foley, agricultural commisisoner, in charge of the London office, has prepared three reports: "Almonds in the Mediterranean Basin" (preliminary report ready for publication), including information as to crops, stocks, prices,

methods of culture, and cost of labor. "Citrus Fruits" (ready for publication), similar to almond report. "Marketing Apples in England" (ready for publication).

E. C. Squire, agricultural commissioner in charge of the Berlin office, has prepared one report: "The German Fat and Oil Situation" (published in mimeograph form).

E. C. Squire, assisted by L. Thompson, has prepared a report: "The Agricultural Situation in Germany," giving the agriculture of the old Empire, of the lost districts, and the present territory before and since the war, also analyzing the situation in the Rhine Provinces and the Ruhr (in preparation to be published). An abstract from this report on the "Food Situation in Germany," has been prepared by G. B. L. Arner, as a special report at the request of the Department of State, and published as No. 4, volume 8, of Foreign Crops and Markets.

Asher Hobson, permanent delegate of the International Institute at Rome, with assistance from the department, has prepared a report: "The Agricultural Situation in France," including Alsace-Lorraine (in hands of calculators).

L. Thompson, under the direction of Asher Hobson, is preparing two reports: "The Agricultural Situation in Italy," and "The Agricultural Situation in Spain." S. Novokovsky, with L. G. Michael, has completed one report: "The Agricultural Situation in Poland," where the complicated situation required the services of an economic geographer, as well as of an agriculturist.

J. Stewart has in preparation: "The Agricultural Situation in Denmark." Charles Bowen has completed: "Marketing Analysis of Paris."

Ralph Hess has in preparation: "Germany's Ability to Purchase Agricultural Products."

The above reports give the latest authentic information on the countries and subjects covered, and are essential to provide background and fundamental facts for the interpretation of current and future reports from the territory covered or on the subjects dealt with.

The Washington force receives radiograms or cablegrams, translates or converts the messages into American equivalents, and prepares statements including the information received, with comparisons and interpretations, for immediate release by wire or radio or for publications; receives, analyzes, and prepares reports from mailed correspondence or foreign publications and edits the special reports sent in from the field. To interpret current reports and make comparisons, much supplementary information must be collected about each country and each crop.

The Washington force prepares and publishes weekly "Foreign Crops and Markets," which contains the current information received from every source, summarizes conditions of principal crops in foreign countries and reports conditions affecting demand in foreign markets, together with special studies of countries or subjects. Reports are also prepared on foreign crops and markets for the weekly publication, Crops and Markets, for special press releases and articles in journals. All statistics of world production and trade in agricultural products published in the agricultural yearbook are compiled by the foreign section.

The foreign section in the Washington office handles a large volume of correspondence relative to foreign agriculture and the demand for agricultural products in foreign countries, keeps the field men informed as to special needs for information, prepares special questionnaires for consuls and coordinates the work in the field of foreign competition and demand for other work of the Department of Agriculture and of other departments of the Government.

Approximate expenditures of 1923-24 fund.

Total expenditures and obligations on field work and in preparing reports for publication (approximately) - -

Increase in compensation..

Other expenditures (approximately).

Total, including $4,320 for increase in compensation..

Routine statistical work in connection with reports from our field men and from the International Institute of Agriculture at Rome, the consular service, the commercial attachés, and all other sources (approximately)-

$49, 175

11, 240 4,320 4, 585

69, 320

STATEMENT OF MR. WELLS A. SHERMAN.

MARKET INSPECTION OF PERISHABLE FOODS.

Mr. ANDERSON. We will take up the item on page 284.

Mr. TENNY. That is market inspection. The major part of this appropriation is used in the inspection of fruits and vegetables, both at shipping points and terminal markets.

Mr. Wells A. Sherman, is in immediate charge of this project and will present the work under the appropriation; $215,000 out of the total appropriation was allotted to the fruit and vegetable work.

Mr. SHERMAN. The city work during the past fiscal year was simply a continuance in the principal markets of the country of the service which had been rendered heretofore. There has been only a small increase in the amount of inspection in the terminal markets, although there has been some shift in the number of inspectors employed in different cities, because of the very great incresse of the work in New York, largely due to the larger use which exporters have made of it, and the decreased use of the service in Pittsburgh and Philadelphia, because the transportation companies have put in their own inspection services, and are not using our service so much as they did in the two years preceding.

TERMINAL INSPECTION SERVICE.

I believe we inspected in the terminal markets during the last fiscal year a little over 28,000 cars as compared with 31,000 cars for the fiscal year preceding.

At shipping point, however, we inspected over 72,000 cans.
Mr. LEE. How do you account for the decrease?

Mr. SHERMAN. The decrease in the city markets is due principally to the fact that the Pennsylvania Railroad has put in its own inspection service in both Pittsburgh and Philadelphia.

Mr. ANDERSON. I did not get the number which you gave for terminal inspection?

Mr. SHERMAN. It was a little over 28,000 last year as against 31,000 the year before. Then, of course, the large number of cars inspected at point of origin has had a tendency to decrease the number inspected at terminal markets, because we do not reinspect at the terminal market for grade, on any car which has been inspected at point of origin.

Mr. LEE. It is not due to lack of interest?

Mr. SHERMAN. Not at all.

Mr. ANDERSON. How many inspectors have you in this terminal inspection work?

Mr. SHERMAN. The number varies, because we shift the men from the terminal markets to the field, and back and forth, with the progress of the season.

We withdraw a man from New York, for instance, and put him in charge of a shipping point inspection in New Jersey, and then he is brought back to New York City afterwards.

There are 82 technical men in the service, and of those, you may say in a general way, about between 60 and 70 will be employed in the terminal markets on the average.

83009-24 43

Mr. ANDERSON. At how many terminal markets do you have inspection?

Mr. SHERMAN. Let me say at the beginning, we have terminal inspection from six to eight months of the year at such cities as Houston and Fort Worth, which are closed during the summer when the men are used farther north.

I presume you want the total number of cities where we have an inspector stationed for terminal work during any considerable part of the year.

Mr. ANDERSON. Yes; that is what I would like.

Mr. SHERMAN. That number is 37.

Mr. ROBB. We made inspections last year at 296 different terminal markets, men going out from these markets where they are located to the ones in the vicinity.

Mr. SHERMAN. In that connection, you see, the man who is stationed at New Haven, Conn., for instance, which is a new station opened last year, makes more than half of his inspections in outlying towns. He covers all those towns in the Connecticut Valley. He makes more inspections out of New Haven than in New Haven; so that, while New Haven is one of the 37 cities, yet the man stationed at New Haven is serving a large group of towns only slightly less important than New Haven itself. The same is true in Boston, and there are a good many inspections made out from Cleveland especially down at Akron, Ohio.

STATEMENT SHOWING CITIES IN WHICH ARE LOCATED TERMINAL INSPECTIONS.

Mr. TENNY. Would you like to have a list of those 37 cities inserted in the record?

Mr. ANDERSON. Yes; we would like to have those.

LIST OF CITIES HAVING TERMINAL INSPECTION.

Atlanta: No. 1714 Citizens and Southern Bank Building.

Baltimore: No. 339 Customhouse.

Boston: No. 705 Appraiser's Stores Building.

Buffalo: No. 220 Federal Building.

Chicago: No. 139 North Clark Street.

Cincinnati: No. 707 Gwynne Building; after September 1, 1923, No. 21-24 Fruit Exchange Building.

Cleveland: No. 2403 East Ninth Street.

Columbus: Statehouse annex.

Denver: No. 329 Capitol Building.

Detroit: No. 1931 Howard Street.

Fort Worth: No. 1915 Farmers & Mechanics Bank Building.

Harrisburg: Capitol Building.

Houston: No. 406 Southern Pacific Building.

Indianapolis: No. 1101 City Trust Building.

Kansas City, Mo.: No. 212 Railway Exchange Building.

Los Angeles: No. 285 Wholesale Terminal Building.

Memphis: No. 3 county courthouse.

Milwaukee: No. 423 Federal Building.

Minneapolis: Room 1, Federal Office Building.

New Haven: No. 301 Federal Building.

New Orleans: No. 207 Post Office Building.

New York: No. 204 Franklin Street.

Norfolk: No. 314 Board of Trade Building.
Omaha: No. 435 Keeline Building.

Philadelphia: No. 308 Bourse Building..
Pittsburgh: No. 403 Andrews Building.

Portland, Oreg.: No. 112 Citizens Bank Building.
Sacramento: State department of agriculture.

St. Louis: No. 413 old customhouse.

Salt Lake City: Nos. 304-306 State Capitol Building.

San Diego: P. O. Box 112.

San Francisco: No. 65 Appraiser's Building.

Washington, D. C.: United States Bureau of Agricultural Economics.
Wilkes-Barre: No. 226 Miners' Bank Building.

The Federal Bureau of Agricultural Economics, among its other activities, maintains for your benefit an inspection service in most of the larger cities of the country. Inspection offices are established in some 30 of the largest cities, and from these offices inspections are made at all points which can be conveniently reached.

This service is open to shippers, receivers, railroads, or any other interested parties. In case of dispute over a shipment, you can call on the inspector for the market in which the car is located, and he will make a thorough examination and issue you a certificate, setting forth all the facts regarding the quality and condition of the goods. It is provided in the law that this certificate will be received as prima facie evidence in all United States courts.

This inspection service is purely a service and is in no sense a regulatory or police organization. The inspector will examine a shipment and make a report upon it only when requested to do so by some one having a financial interest in the transaction, and he has no authority to say what disposition shall be made of such shipment or to act as mediator in settling disputes or making adjustments. The purpose of this inspection work is simply to provide a means of securing an accurate report from an impartial and unbiased inspector, in order to afford some basis on which the disputants can settle their differences promptly and with fairness to both sides.

If you ship goods which some one rejects without good cause, or if you purchase goods and the shipper does not send the grade of stuff you bought, the Government provides you, through this inspection service, with the means of securing a report on the exact condition of the shipment. Requests for inspections may be made by wire or letter. Such requests should state the kind of product, the car number, the name of the receiver and the delivering carrier, and the particular point concerning which inspection is desired, if any.

A small fee is charged for each inspection. This fee is $4 for any lot more than half carload up to a full carload and $2.50 for any quantity not more than half an ordinary carload. For inspections made in markets other than those in which inspectors are located the applicant is charged with the actual expenses incurred by the inspector in making the trip, these expenses being in addition to regular inspection fee.

Complete rules and regulations of this service can be obtained by addressing the Food Products Inspection Service, Bureau of Agricultural Economics, Washington, D. C.

In addition to the receiving market inspection service described above the Department of Agriculture is conducting shipping point inspection work in cooperation with a number of States which are heavy producers of fruits and vegetables. The joint State and Federal certificates issued under such agreements have the same weight in United States courts as certificates issued in receiving markets. This shipping point service has been found a valuable assistance in marketing by those who are grading and packing according to approved standards and who desire a statement to this effect from some impartial and unbiased source. Full particulars regarding this shipping point inspection service and the points at which it is available from time to time can be obtained by addressing the Food Products Inspection Service, Bureau of Agricultural Economics, Washington, D. C.

INSPECTION SERVICE FOR NAVY DEPARTMENT.

Mr. SHERMAN. In addition, you know, we are inspecting most of the fruits and vegetables purchased by the Navy. We have seven men whose time is entirely given to Navy inspection work. The Navy reimburses us for their salaries and expenses. One is stationed at Norfolk, Va., whose time is divided between the Navy work and commercial inspection.