The Semi-weekly leader., 1921-12-21
FEDERAL LICENSED
WAREHOUSE ACT
Bureau of Markets Chief Gives
Out Some Interesting Data
On Act.


of Markets and Crop Estimates, hal
addressed the following to the people
of the agricultural districts:-
The unusual activities of various
farm organizations indicate that ag
riculturists generally are dissatisfied
with the methods of marketing which
have been employed during the past
few years and are seeking a better
one. Since a number of the new
plans which have been suggested are
in substance very similar to the pro-
visions of the United States ware
house Act it appears that those di-
| rectly interested in these methods
are not fully familiar with this sta
tute.
The United States warehouse Act
has been referred to as one of the
most beneficial measures ever passed
by Congress for the welfare of those
engaged in the production and hand
ling of grain and certain other agri-
cultural products included within its
scope. 1t was enacted August IL,
1915, but because of the war it's op-
GRAFTON was retarded.
The Act was primarily designed to
take care of the cotton crop but be-
fore its passage was broadened to
include tobacco, wool and grains of
all kinds.
The benefits derived from the Fed
eral warehouse act will be proper
tionate to the use which is made of
1t voluntarily, because it is a per-
missive statute and will not be fore
ed on anyone.
l believe that with very few ex-
ceptions, if any, every warehouse
man would improve the conditions
surrounding his business by becom-
ing licensed, and also that the great
problem of systematic marketing
which so seriously confronts the
farmers Of these United States to-
day would be to large extent solv-
ed by general licensing of ware
houses which handle their products.
In order to understand how this
might be accomplished under the
Federal Warehouse Act-what a Ii
censed warehouse is and how it is
conducted.
SOMETHING ABOUT THE ACT.
In a general way, the United Statse
warehouse act is statute providing
tor the voluntary licensing and
bonding of public warehouses for the
storage of all kinds of grain, wool.
tobacco, cotton and flaxseed, to be
operated not by the Government as
some have supposed, but under Gov
ernment supervision, somewhat like
national banks are protected. En-
tire warehouses or elevators, or only
part of them when suitably parti-
toned, owned or leased and operated
by individuals, partnerships, cor
poratlons or associations may be Ii
censed.
ELIGIBILITY
To be eligible for licensing the ap-
plicant must be-
1. Solvent. 2. Of good reputa
tion. 8. Willing to abide by the
rules and regulations under the Act
for licensed warehouses and A. have
warehouse suitable for the safe
storage of products. In order to OBJ
tain a license it is necessary to
make voluntary application to tha
Secretary of. Agriculture and if the
Government representative makes a
favorable report after examining the
warehouse and affairs of the appIi-
cant, the applicant is required to file
with the Secretary of Agriculture a
good and sufficient surety bond pay
able to the U. S. Government for the
purpose of guaranteeing the faithful
performance of his duties as a Ii
censed Warehouseman, and the full
hllment of his contracts. S. In
addition to this he must have some
one to inspect, grade and weigh all
grain handled in the licensed ware
house.
This inspection is not a duplica-
ton of that done by inspectors Ii
censed under the grain standards
Act and it is only food for Identifying
the grain which is in storage. Any
competent person acceptable to the
warehouseman may be licensed for
these purposes and at the same time
the person may be in the employ of
the warehouseman or even a member
of the firm.
CENTRAL PURPOSE OF THE ACT.
The central aim of the Federal
warehouse act is:-
1. To standardize the conduct of
licensed warehouses in order that
their operation will conform to what
is recognized as best warehousing
practice, so that they will constitute
safe repositories for agricultural
products.
2. To SO safeguard the issuance
of warehouse receipts for products
stored that these receipts will be
reliable evidence of the quantity,
quality and condition of the produce
they represent, and because of their
unusual integrity widely negotiable
and generally acceptable for both
the purposes of marketing and secur-
ity for loans.
8. To reflect back to each and
every licensed warehouse regardless
of its size or location an equal share
of the accrued benefits resulting