DESIGNATION OF QUALITY OF CANNED GOODS THURSDAY, FEBRUARY 7, 1929 UNITED STATES SENATE, COMMITTEE ON AGRICULTURE AND FORESTRY, The committee met, pursuant to call, at 10.30 o'clock a. m., in room 324, Senate Office Building, Senator Charles L. McNary presiding. Present: Senators McNary (chairman), Capper, Norbeck, Frazier, Gould, Thomas of Idaho, Ransdell, Kendrick, Caraway, and Shipstead. The committee thereupon proceeded to the consideration of the bill (S. 4800) to amend section 8 of the act entitled "An act for preventing the manufacture, sale, or transportation of adulterated or misbranded or poisonous or deleterious foods, drugs, medicines, and liquors, and for regulating traffic therein, and for other purposes," approved June 30, 1906, as amended, which is as follows: [S. 4800, Seventieth Congress, second session] A BILL To amend section 8 of the act entitled "An act for preventing the manufacture, sale, or transportation of adulterated or misbranded or poisonous or deleterious foods, drugs, medicines, and liquors, and for regulating traffic therein, and for other purposes," approved June 30, 1906, as amended. Be it enacted, etc., That section 8 of the act of June 30, 1906, entitled "An act for preventing the manufacture, sale, or transportation of adulterated or misbranded or poisonous or deleterious foods, drugs, medicines, and liquors, and for regulating traffic therein, and for other purposes,' as amended, is amended by adding at the end thereof the following: Fifth. If it be canned food and falls below the standard of quality, condition, and/or fill of container, promulgated by the Secretary of Agriculture for such canned food; and its package or label does not bear a plain and conspicuous statement prescribed by the Secretary of Agriculture indicating that such canned food falls below such standard. For the purposes of this paragraph, the words "canned food" mean all food which is in hermetically sealed containers and is sterilized by heat, except meat and meat-food projects which are subject to the provisions of the meat inspection act of March 4, 1907 (Thirty-fourth Statutes, page 1260), as amended, and except canned milk; the word "class" means and is limited to a generic product for which a standard is to be established and does not mean a grade, variety, or species of a generic product. The Secretary of Agriculture is authorized to determine, establish, and promulgate, from time to time, a reasonable standard of quality, condition, and/or fill of container for each class of canned food as will, in his judgment, promote honesty and fair dealing in the interest of the consumer, and he is authorized to alter or modify such standard from time to time as, in his judgment, honestly and fair dealing in the interest of the consumer may require. The Secretary of Agriculture is further authorized to prescribe and promulgate from time to time the form of statement which must appear in a plain and conspicuous manner on each package or label of canned food which falls below the standard promulgated by him, and which will indicate that such canned food falls below such standard, and he is authorized to alter or modify such form of statement, from time to time, as in his judgment may be necessary. In promulgating such standards and forms of statements and any alteration or modification thereof, the Secretary of Agriculture shall specify the date or dates when such standards shall become effective, or after which such statements shall be used, and shall give public notice not less than ninety days in advance of the date or dates on which such standards shall become effective or such statements shall be used. Nothing in this paragraph shall be construed to authorize the manufacture, sale, shipment, or transportation of adulterated or misbranded foods. (Owing to the necessity for the presence of Senators McNary and Ransdell at a meeting of the Committee on Commerce, Senator Frazier took the chair during the first part of the hearing, until Senator McNary could return.). Senator MCNARY (presiding). I notice that in the file before me there is a letter from the Agricultural Department in approval of this measure, and I think it should be placed in the record at this point. The last paragraph is an important one: Since the amendment furnishes further information to the consumer and is for his protection, the department can offer no objection to the enactment of the bill. (The letter above referred to is, in full, as follows:) Hon. CHARLES L. McNARY, United States Senate. 1 DEPARTMENT OF AGRICULTURE, Washington, D. C., December 20, 1928. DEAR SENATOR MCNARY: Reference is made to your letter of December 12, 1928, inclosing for my consideration and report a copy of S. 4800. The proposed bill would amend the Federal food and drugs act as to canned food, except meat and meat-food products and canned milk, so that such canned food if it be not of the standard promulgated by the Secretary of Agriculture shall bear on its label or package a statement that the canned food falls below the standard promulgated by the Secretary. Since the amendment furnishes further information to the consumer and is for his protection, the department can offer no objection to the enactment of the bill. Very truly yours, R. W. DUNLAP, Acting Secretary. STATEMENT OF EDWARD B. COSGROVE, OF LE SUEUR, MINN., PRESIDENT OF THE NATIONAL CANNERS' ASSOCIATION Senator FRAZIER (presiding). Please state your name. Senator FRAZIER. Whom do you represent? Mr. COSGROVE. I am in the canning business at Le Sueur, Minn. My company is the Minnesota Valley Canning Co. At the present time I am president of the National Čanners' Association. Senator FRAZIER. You may go ahead and make your statement. Mr. COSGROVE. Senate bill No. 4800, which is now before this committee, has the approval of the National Canners' Association, and has been indorsed in principle by all food-distributing organizations, and when it is understood can not help having the indorsement of all consumers. The bill is intended to authorize the Secretary of Agriculture to define a standard or grade for canned foods which will divide canned food products into two classes—good quality and poor quality-and to require a designation to be placed on the label of the poor quality conveying such information to the purchaser. The bill will not prevent the sale of poor quality canned foods, but it will enable the consumer to buy intelligently, and prevent deceptive labeling. The canning industry's interest in this bill is to obtain and retain consumers' good will for canned products of merit. It is believed that if this bill becomes a law it will largely increase the consumption of canned foods, which will mean increased sales of farm products, and will assist agriculture in the diversification of farm crops, as such a large number of the different fruits and vegetables are canned. Mr. Chairman, we have prepared a brief which will give most concisely the full facts in connection with our case. Senator FRAZIER. We shall be glad to have you file the brief. You do not care to read it, I presume? Mr. COSGROVE. I thought, to save the time of the committee, that we would present it in written form. Senator FRAZIER. That will be all right. Senator KENDRICK. Without reading it? Senator KENDRICK. Is it your idea to include it in the record without reading it? How long will it take to read it? Mr. COSGROVE. About six minutes. Senator KENDRICK. I think we had better have it read, Mr. Chairman. Senator FRAZIER. Very well; read it, then. BRIEF OF THE NATIONAL CANNERS ASSOCIATION S. 4800. The bill to amend section eight of the Federal food and drugs act of 1906 as amended. Introduced by the Hon. Charles L. McNary, December 10, 1928. OBJECTS OF THE PROPOSED LEGISLATION The purpose of the proposed amendment to the Federal food and drugs act is to protect the interest of the consumer who is now unable to distinguish between canned foods of inferior quality and superior quality by inspection of the label. The effect of informative labeling in making it possible for the consumer to buy canned foods intelligently will, it is believed, increase the consumption of canned foods, the quality of which is such as to give satisfaction to the consumer, and thus promote the interests of the canner, the distributor and the farmer who grows such foods. The consumer protection which is the objective of the proposed amendment is sought through an extension of the authority now given to the Secretary of Agriculture by the present food law to enable him to require proper designation and labeling of such canned foods as do not meet the standard of quality which he is authorized to formulate. SCOPE OF THE INDUSTRY The canning industry, according to the 1925 census report, has an annual production valued at $634,620,769. It has canning establishments in practically every State of the Union. The output of the canning industry represents 6.1 per cent of the value of all manufactured food products in the United States. When it is realized that the total value of all such food products in the United States in 1925 was $10,418,536,000 and that this includes the products of the meat packers, millers, bakers, sugar refiners and a host of other manufactured food products, it is apparent that the canning industry in one of the large branches of the manufactured food industry. In the year 1925 the output of the canning industry aggregated 7,579,000,000 pounds of food products and, according to the latest unofficial reports this has grown in 1928 to about 9,000,000,000 pounds. CANNING AS RELATED TO FARMING The census figures of 1925 show that the canning industry used materials valued at about $525,614,000. According to the best estimates available 40 per cent of this amount or $210,245,000, was paid to the farmer. The canning industry is one of the most important means of enabling the farmer to successfully market his perishable products and any depression of the canning industry is reflected in the farming industry. Farmers who grow foods for canning have an opportunity for greater diversification of crops than the single-crop farmer and can employ lands for other crops where there is over-production in staples like cotton, wheat, and corn. LIMITATIONS OF PRESENT FOOD LAW The Federal food and drugs act does not require any label on a food package with the exception of a statement of its weight or measure of contents. It does provide, however, that any label, if used, must not be deceptive. In other words, as far as labeling is concerned, it is largely a restrictive rather than a constructive measure. Owing to the fact that the products of the canning industry are of such nature that it is impossible to define in any enforceable manner the different grades of canned foods which are known to the trade, it is possible under the present food and drugs act to use a label which is not only not informative but is actually deceptive to the consumer without subjecting the user to the penalties of the act. For instance, an attractively printed or embossed label, with a vignette showing a fresh fruit or vegetable, is likely to give the consumer the idea that the can contains good quality canned food. All that the enforcement division of the Department of Agriculture can at present require of canned foods so labeled is that the product is not "filthy, putrid, or decomposed." The poorest quality of canned foods can be sold under labels such as described and be in competition with the best brands and very often at the same price. It should be remembered that this bill does not authorize the Secretary of Agriculture to determine and promulgate the different grades of quality of canned foods for the reason that these distinctions between the better grades of canned foods are impossible to define in such manner as to be enforceable by statute. The enforcement division of the Department of Agriculture recognizes this fact, but it is felt by the officials of that division, by the industry as well as by the distributors of canned foods, that generally enforceable definitions can be written which will distinguish between good and poor quality for all varieties of canned foods. By requiring plain and conspicuous labeling of all canned foods which, under such definitions, would be classed as poor quality to show that they are poor quality, will not only be a great protection to the consuming public but will increase public confidence in canned foods. The canning industry, represented by the National Canners Association, is interested in this proposed legislation. The industry was a potent factor in causing the enactment of the Federal food law of 1906, and has actively urged and supported constructive food laws of every kind and character, national and State, during the past quarter of a century. The National Canners Association, in its research laboratories, and in collaboration with other institutions, is seeking by scientific endeavor to constantly improve the products of the industry. This proposed legislation would give further stability to the industry. It would be another step in fostering public confidence in canned foods. This increased confidence means increased consumption of canned foods which in turn is a direct benefit to American agriculture. CONCLUSIONS 1. The primary purpose of this proposed amendment is a protection to the consuming public. 2. No firm or association of integrity will be injured in any way if this measure becomes a law. 3. This addition to the general food laws will promote honest merchandising. 4. This amendment, if enacted, will stimulate the consumption of canned foods which, when of the proper quality, are wholesome, nutritious, dependable, economical and convenient. 5. This measure, while designed as a protection to the consumer, is at the same time of direct economic benefit to American agriculture. The sale of poor quality canned foods under deceptive labeling decreases consumption of quality merchandise and thus reduces the demand for that product which is profitable to the farmer. Senator KENDRICK. It is not your idea that what might be termed goods of inferior quality should not be canned or conserved that they should be denied the right to can that kind of a product? Mr. COSGROVE. Not at all. We have made the point that it will not prevent the canning of the poor quality. It will simply insist that it be sold "as is." Senator KENDRICK. Yes; but you would hardly expect to sell it if it were labeled "poor quality," would you? Mr. COSGROVE. I doubt if that exact expression would be used. All we want is that there shall be some mark there so that the consumer will know, when she is buying, exactly what she is buying. Senator KENDRICK. Then would it not be inconsistent to mark it on a basis of grades? Mr. COSGROVE. You mean to say grade 1, grade 2, grade 3, and grade 4? Senator KENDRICK. Yes. Mr. COSGROVE. It seems that it is much more practicable simply to draw the line between what we call good and not so good or inferior. When you attempt to get into the finer distinctions it is difficult to enforce them. Senator KENDRICK. You can easily believe that marking anything "not good" or even "inferior in quality" would affect the taste of it, without regard to the quality? Mr. COSGROVE. You mean psychologically? Senator KENDRICK. Yes. Mr. COSGROVE. That is correct. Senator KENDRICK. My thought about it is that any restrictions placed should be based on such a reasonable designation as would enable the consumer to purchase on a basis of merit. whole thing you are anxious to bring about; is it not? Mr. COSGROVE. Yes. That is the Senator KENDRICK. I am rather inclined to believe, as one producer of livestock, that such designation and such information on the part of the consumer would tend and serve directly to increase the consumption of vegetables and fruits that are canned; but I do not believe that the owner of what we might call second quality or even third quality should be required to waste their product on that account. It might very well happen that they would be compelled to take a lower price for it, and that of course you would be willing to see done; would you not? If you sold a first-class product, and had the authority to designate it as such, and another man who had a cheaper product, we will call it, instead of a poorer product, wanted to conserve his also, and could render a service to the consumer by selling it at a lower price, that would be the way to meet the situation; do you not think so? Mr. COSGROVE. Did I understand you to say that you are in the livestock business? Senator KENDRICK. I am a livestock producer-a producer of cattle. Mr. COSGROVE. If you have a perfectly good animal to sell, you expect to sell that animal for what he is worth; and if you have an inferior animal in the lot you do not expect to get more for the inferior animal. The difference between this and your situation in |