The Barre daily times. (Barre, Vt.) 1897-1959, 1917-08-25
Is Conducting Inquiry into
Warehouses in New
York
HENEY IN CHARGE
OF THE WORK
Investigation Extends to
Other Cities in the
Country

Washington, Aug. 25.--Investigatio
into alleged boarding of foodstuffs il
New York warehouses is being conducte,
by the federal trade commission, it be
came known yesterday. The investiga
ton, which was started at the instanc,
of Herbert G.. Hoover, the food admin
istrator, is being conducted under the di
rection of Francis j. Heney, who prose
cuted the famous graft cases in Califor
mia.
The inquiry was started quietly about
three weeks ago following the receipt BY
Mr.. Hoover of numerous letters stating
that food dealers in New York were stor.
ing up abnormally large quantities OF
eatables for speculative purposes. The
information was to the effect that not
only were the customary food storage
places being taxed to their utmost, but
that warehouses of all kinds were being
turned into improvised larders Even to-
bacco merchants have complained of their
inability to get warehouse space on ac-
count of the boarding of foodstuffs.
Unable to conduct the investigation
himself, Mr.. Hoover turned over all the
data in his possession to the trade COM
mission with request that an inquiry
be made as thoroughly as possible The
commission at once requested Mr.. Heney
to take charge.
just what progress has been made
could not be learned yesterday owing to
the absence of Mr.. Heney, who is in Chi
cago 1t is understood, however, that
the investigation has extended to other
cities.
Section of the food administration
act provides:
"Any person who wilfully boards any
necessaries shall upon conviction thereof
be fined not exceeding $1,000 or be i'm
prisoned for not more than two years or
both"
''Necessaries shall be deemed to be
boarded within the meaning of this act
when either tal held, contracted for or
arranged for by any person in quantity |
in excess of his reasonable requirements |
for use or consumption by himself and |
dependents for reasonable time; tb) |
held, contracted for, or arranged for by
any manufacturer wholesaler, retailer or
other dealer in quantity in excess of
the reasonable requirements of his bust.
ness for use or sale by him for reason
able time or reasonably required to fur
nish necessaries produced in surplus
quantities seasonally throughout the pc
-iod OF scant or no production, or tc)
whether by possession or under
my contract or arrangement from the
market by any ptrson for the purpose of
lnreasonably increasing or diminishing
he price.
Provided, that this section shall not
include or relate to transactions on any
xchange, board of trade or similar insti-
ution or place of business, as described ,
n section 10 of this act, that may be !.
emitted by the president, under the au- /,
hority conferred upon him by section
81 provided, however, that any accumu.
ating or Withholding by any farmer or
ardener, cooperative association of
armers or gardeners, including live stock
lrmers, or any other person, of the prod
cts of any farm, garden or other land F
wned, leased or cultivated by him, shall
OF be deemed to be boarding within the
leaning of this act"
Section of the act adds that "when. g
ger any necessaries shall be boarded as h
efined in section 8 they shall be liable a
} be proceeded against in any district q
,urt of the United States within the II
strict where the same are found and C
lied by a process of libel for condem- o.
ition, and if such necessaries shall be D.
Judged to be boarded they shall be dis 6 :.
,sed of by sale in such manner as to "a
divide the most equitable distribution u
ereof, as the court may direct, and the "a
oceeds thereof, less the legal costs and %
argos, shall be paid to the party en- sc
led thereto. The proceedings of such
vel cases shall conform as near as may n.
to the proceedings in admiralty, ex- u
pit that either party may demand trial ue
jury of any issue of fact joined in %
Y such case, and all such proceedings ca
all be at the suit of and in the name VI
the United States. It shall be the -
ty of the United States attorney for -
2 proper district to institute and prose- ;"
te any such action upon presentation to "
n of satisfactory evidence TO sustain
; same" s''