What do you figure "by other means" means? They describe certain things you can do and say "by other means."

Mr. LENNARTSON. Other means could be direct payments.

Mr. WHITTEN. Have you got a food stamp plan?

Mr. LENNARTSON. Yes.

Mr. WHITTEN. And you have this distribution to needy people? Mr. LENNARTSON. Yes.

Mr. WHITTEN. They didn't use any citrus juice? They didn't need it as bad as these processors who naturally wanted it back, so they could take advantage of the increase in price, did they?

Mr. LENNARTSON. We didn't propose to distribute the juice to the needy families. It was limited to the quantity that could be used in the school lunch program.

Mr. WHITTEN. By whose determination?

Mr. LENNARTSON. By the Department's determination.

Mr. WHITTEN. Well, didn't it leave it where the Department could have determined otherwise?

Mr. LENNARTSON. Yes.

Mr. WHITTEN. But you decided the needy people didn't need it as must as these processors who wanted to make a profit?

Mr. LENNARTSON. No; I think the justification for limiting it to the school lunch was frankly to put some limit on the quantity that section 32 should remove in the market. This was the basic consideration. Mr. WHITTEN. Well, there are two or three things that strike me, and don't misunderstand me. But one of them is that you dealt with this year's crop and apparently released it in view of something that happened to a coming year's crop. You had it actually in your possession and the 19,000 cases you had in your possession under contract. Mr. SMITH. We didn't release that back, Mr. Chairman.

Mr. WHITTEN. You did not?

Mr. SMITH. No.

Mr. LENNARTSON. That had been delivered.

Mr. WHITTEN. Had you made payment for that?

Mr. SMITH. Actual payment-I don't know.

Mr. LENNARTSON. If not, it would be shortly thereafter. The commodity had been delivered.

PRESENTATION OF FULL FACTS

Mr. WHITTEN. Well, I would like you to complete the record in the detail I have asked for.

Mr. LENNARTSON. I think the fundamental question it raises for the Department, Mr. Chairman, is the extent to which it uses section 32 funds if the circumstances change substantially from a surplus. situation to a deficit situation. Essentially, a judgment must be made, and it is naturally very difficult. As I can understand, we could be criticized on both sides.

(The material subsequently supplied follows:)

FROZEN CONCENTRATED ORANGE JUICE PROGRAM, 1962-63 CROP

U.S. DEPARTMENT OF AGRICULTURE,

Washington, October 18, 1962.

USDA INTENDS TO BUY FROZEN CONCENTRATED ORANGE JUICE

The U.S. Department of Agriculture announced today that an offer to buy frozen concentrated orange juice will be made soon to help growers with their .current marketing problems.

Purchases will be made on an offer and acceptance basis, with section 32 funds, as a surplus removal activity.

The juice will be distributed for use in eligible institutions.

Invitations to offer juice, including detailed specifications, will be mailed to orange concentrate processors when program details are completed. Quantities purchased will depend on marketing conditions at the time of purchase and availability of outlets.

CONTRACT TERMS AND CONDITIONS FOR THE PURCHASE OF FRUIT AND
VEGETABLE PRODUCTS

This form contains information and requirements covering the submission and acceptance of offers pursuant to announcements issued by the United States Department of Agriculture for the purchase of fruit and vegetable products. This form also contains standard contract terms and conditions which will be incorporated in such announcements in whole or in part by reference.

ARTICLE 1. RETENTION OF FORMS

Since additional purchases of fruit and vegetable products may be made by USDA subject to these terms and conditions, it is suggested that offerers retain this form for future reference.

ARTICLE 2. DEFINITIONS

(a) “USDA" means the United States Department of Agriculture. (b) "AMS" means Agricultural Marketing Service of USDA.

(c) "ASCS" means Agricultural Stabilization and Conservation Service of USDA.

(d) "Announcement" means the invitation for the submission of offers to sell to USDA.

(e) "Contract" means the announcement, Form FV-1 as incorporated in the announcement by reference, the offer to sell, and the acceptance of such offer by a USDA contracting officer. These documents shall constitute a valid and binding contract.

(f) "Contracting Officer" means any person having authority on behalf of USDA to sign contracts and any amendments thereto.

ARTICLE 3. HOW TO SUBMIT OFFERS

Each announcement will contain instructions regarding the content of offers and the manner of submitting offers.

ARTICLE 4. PREPARATION OF OFFERS

Offerers are cautioned to read this form and the applicable announcement carefully and to verify prices before submitting offers. By so doing, expensive mistakes may be avoided. Special care should be exercised in the preparation of offers. Offerers must make or obtain their own estimates of the facilities and difficulties attending the performance of the proposed contract, including local conditions, uncertainty of weather, availability of materials and containers, and all other contingencies. All data required by the announcement to be forwarded by offerer shall be fully and clearly set forth.

ARTICLE 5. SIGNING OF OFFERS

Offers must be submitted in the name of the principal. An offer must set forth the full business name and address of offerer and be signed by a person authorized to execute contracts on behalf of offerer. If the person signing an offer is not the owner, partner, or officer of a corporation, a power of attorney or other documentary evidence of the authority for such person to execute contracts in the name of offerer may be required by USDA if not submitted with the offer.

ARTICLE 6. FINANCIAL RESPONSIBILITY OF OFFERER

USDA reserves the right to refuse to consider an offer if USDA has reason to believe the responsibility of offerer, financially or otherwise, is inadequate to meet contract obligations of the type contemplated in the applicable announcement.

ARTICLE 7. TIME FOR RECEIVING OFFERS

No offer, or modification, or withdrawal thereof, will be considered if received after the closing time for the receipt of offers, unless :

(a) USDA determines that such offer, modification or withdrawal was delayed in transmission by mail or telegraph through no fault of offerer, or (b) the modification is made for the purpose of correcting an error apparent on the face of the original offer, for the purpose of clarifying an ambiguity or supplying an omission therein, or the modification is beneficial to USDA and not prejudicial to any other offerer.

In no event, however, will any offer, modification, or withdrawal thereof, be considered if received after contracts are awarded under the announcement.

ARTICLE 8. REPRESENTATIONS OF OFFERER

In submitting an offer, the offerer represents that—

(a) the offer was prepared and submitted without consultation and agreement with any other firm or concern (except as between principal and his agent or broker) with respect to the price quoted; and that

(b) he is the producer or established manufacturer of, or regular dealer in the product sought by USDA, or is newly entering into such activity and has made all necessary arrangements for raw product, space, equipment, and personnel to perform the contract. Notwithstanding the foregoing representations, USDA reserves the right to require the offerer to furnish satisfactory factual information in support of such representations.

ARTICLE 9. EMPLOYER IDENTIFICATION NUMBER AND PARENT COMPANY

Offerer shall furnish in his offer, the Employer's Identification Number (E.I. No.); that is, the Federal Social Security Number used on Employer's Quarterly Federal Tax Return, U.S. Treasury Department Form 941.

If offerer is owned or controlled by a parent company he shall furnish in his offer the name and principal office address of the parent company, E.I. No., and E.I. No. of parent company, if any. A parent company is one which either owns or controls the activities and basic business policies of offerer. To own another company means the parent company must own at least a majority (more than 50%) of the voting rights in that company. To control another company such ownership is not required, if another company is able to formulate, determine or veto basic business policy decisions of offerer, such other company is considered the parent company of offerer. This control may be exercised through the use of dominant minority voting rights, use of proxy voting, contractual arrangements, or otherwise.

ARTICLE 10. DISCOUNTS FOR PROMPT PAYMENT

The offerer shall specify the cash discount, if any, to be allowed for payment by check dated within the number of days specified for discounts for prompt payment after a properly prepared and documented claim is received by the applicable ASCS Commodity Office, as follows: percent within 10 days; percent within 20 days; percent within 30 days. Discounts offered at less than 2 of 1 percent shall be construed to be at 2 of 1 percent.

95910-63-pt. 3--29

ARTICLE 11. CONDITIONAL OFFERS

Any qualification or condition added to the offer by offerer may make such offer ineligible for consideration.

ARTICLE 12. FACTORS CONSIDERED IN ACCEPTANCES

In addition to price, discounts will be considered and, at the option of USDA, estimated transportation costs may be considered in making acceptances.

AKTICLE 13. ACCEPTANCE OR REJECTION OF OFFERS AND NOTIFICATION

(a) USDA reserves the right to accept or reject any or all offers, in whole or in part, or to waive any informality therein.

(b) Offerers whose offers are accepted will be notified at the earliest possible date and in the manner and not later than the time specified in the announcement. Separate contract awards will be made when an acceptable offer covers shipping points in each of the areas served by the offices named below. Shipping instructions will be furnished and payments will be made by the officers serving the shipping points as follows:

For shipping points in the States of Alaska, Arizona, California, Hawaii, Idaho, Nevada, Oregon, Utah, and Washington: Director, Portland ASCS Commodity Office, U.S. Department of Agriculture, 1218 S.W. Washington Street, Portland 5, Oregon. Telephone: CApitol 6-3361.

For shipping points in all other States: Director, Cincinnati ASCS Commodity Office, U.S. Department of Agriculture, 222 East Central Parkway, Cincinnati 2, Ohio. Telephone: 381-2200.

(c) Offerers whose offers are rejected will be notified of such rejection by collect telegram if they specifically request such notification.

ARTICLE 14. INQUIRIES BY OFFERERS OR CONTRACTORS

Inquiries concerning announcements shall be directed to the office designated in the announcement to receive offers. Inquiries concerning shipping instructions and payments shall be directed to the applicable ASCS Commodity Office serving the shipping point.

ARTICLE 15. CANS AND CASES

If canned, the product shall be packed in sound, bright, clean, sanitary type cans, suitable for the product, free from rust and serious dents, and the ends shall be flat or concave. The cans shall possess a vacuum at the time of inspection as determined by the conventional method of testing for vacuum. The cans shall be suitably code marked so that the product can be identified with the related inspection certificate. The canned product shall be packed in new, good quality, domestic cases so constructed as to insure acceptance by common carrier or other carrier for safe transportation for domestic shipment.

ARTICLE 16. LABELS

If the product is canned, the cans shall be labeled with special labels printed on white paper stock suitable for use as labels. The printing on the labels should be arranged substantially as indicated in the exhibits shown below. The name of the product shall be printed in not less than 30-point caps. All other words should be printed in sufficient size to show prominently on the label. The wording on labels is restricted to that shown in the exhibits. Labels may be full wraparound two-panel type as shown in Exhibit A or may be one-half wrap single-panel type as shown in Exhibit B. Single-panel labels shall be not less than 10" by 6" in size.

ARTICLE 17. CASE MARKINGS

If the product is canned, on one end of each case there shall be printed or stenciled the following information: (a) the name of product, (b) the type, style, and packing medium, as applicable, (c) can size and number of cans per case, (d) contract number, (e) the words "STORE IN DRY PLACE AT TEMPERATURE BETWEEN 32° AND 70° F." and (f) month and year in which contract was awarded. The name of the product shall be on a separate line in

letters at least three-fourths inch high. All other information shall be in letters at least three-eighths inch high.

On the other end of each case there shall be fastened a label of the same type as is on the cans in the case, or, in lieu of the label, there shall be printed or stenciled the name of the product and the following: "PURCHASED BY THE U.S. DEPARTMENT OF AGRICULTURE, WASHINGTON, D.C.,"-"A SECTION 6 COMMODITY FOR USE ONLY BY SCHOOLS PARTICIPATING IN THE NATIONAL SCHOOL LUNCH PROGRAM"-"NOT TO BE SOLD OR EXCHANGED"-"STORE IN DRY PLACE AT TEMPERATURE BETWEEN 32° AND 70° F."-and month and year in which contract was awarded. If printed or stenciled, the name of the product shall be on a separate line in letters at least three-fourths inch high and all other information shall be in letters at least three-eighths inch high.

ARTICLE 18. FILL OF CONTAINER

If the product is canned, the cans shall be filled with the product as full as practicable without impairment of quality, and in addition shall also comply with any fill, drained, or net weight requirements which may be specified in the announcement.

ARTICLE 19. COMPLIANCE WITH PRODUCT SPECIFICATIONS

Each lot offered must comply with the requirements of the specifications, and shall conform to the applicable provisions of the Federal Food, Drug and Cosmetic Act, as amended, and regulations issued thereunder. "Lot" as used in this Form means any quantity offered for inspection at one time, except that in determining compliance with the specifications any portion of the product that bears a distinctive mark which will identify it from other portions in the lot may be deemed a separate lot if such portion is of a lower grade or deficient in other factors.

A product not meeting all of the specifications (including those with respect to packages and containers) shall not be delivered in the absence of a written express amendment to the contract authorizing such delivery and prescribing a price adjustment where appropriate. If delivery is made without such amendment, USDA may accept the product at a price discount determined by USDA or may, without liability on its part, reject such product and hold Contractor for all costs incurred by USDA in connection with such delivery. Issuance of inspection certificates, notice to deliver, or bills of lading, or the making of payment by USDA, shall not constitute a waiver of the requirements for such express amendment covering shipment of products not meeting specifications.

ARTICLE 20. INSPECTION AND CHECKLOADING

The product shall be inspected and checkloaded by representatives of the Processed Products Standardization and Inspection Branch, Fruit and Vegetable Division, AMS, USDA, and the cost of such services and issuing certificates shall be borne by Contractor.

(a) Inspection shall be performed not more than 90 days prior to shipment unless otherwise provided in the contract. Samples for inspection purposes shall be furnished by Contractor without cost to USDA.

(b) Checkloading, as used in this form, refers to identifying the product which was previously inspected and found to meet quality requirements of the contract, examining the lot at time of loading for condition of containers and for compliance with labeling and case marking requirements, counting of the number of cases per car or truck, sealing loaded cars or trucks, and making any other examination necessary to determine compliance with the specifications of the contract.

ARTICLE 21. LOADING SPLIT SHIPMENTS

If shipping instructions require partial unloading en route at a stopoff, Contractor should order cars equipped with bracing devices and the load should be properly braced with such equipment. Contractor shall not delay shipment if the carrier is unable to furnish such equipment promptly. If the carrier is unable to furnish such equipment, Contractor shall load and brace in accordance with good commercial practice. The cost of any necessary bracing for split shipment shall be for the account of Contractor.