The Bridgeport times and evening farmer. (Bridgeport, Conn.) 1918-1924, 1922-07-03
Agriculture Committee
Grinders Warehouse
Law Amendment
By j. BART CAMPBELL

ments to the United States Ware
house Act proposed by Senator Har-
ris, of Georgia, and already agreed to
in the Senate. The main amendment
broadens the warehouse act to make
it possible for the storing of any ag-
ricultural product, in the discretion
stead of only cotton. wool, grain, to-
bacco and f1axseed. as provided in the
present law passed in August, 1916.
The Harris amendments would re-
move the present limit of one year
for licenses to warehouses, extend
system of licensing persons to inspect
and sample products, increase the
penalties for violation of the law and
make it possible for a farmer suffer-
ing from losses through wrongdoing
| to receive payment as a penalty as
we'll as the forfeiture of the bonds
| of warehousmen.
Senator Harris said nearly all leg
| islation now proposed for the extern
| sion of rural credits and assistance
to agriculture possessed features
| touching On the eligibility Of Federal
| warehouse receipts, and it was neces-
sary the warehouse act be made as
broad as possible to render the great
est possible assistance to farmers.
VIII Reduce Insurance.
when a warehouse becomes Ii
censed under the Federal act the pat
rons of the warehouse will enjoy
25 per cent reduction in insurance
rates, and the warehouse men them
selves will be granted a reduction of
| % per cent. in such rates on both
| the warehouses and their equipment"
| said Senator Harris. The BENEFITS
| coming to the warehouses under Ii
censes are many. and the rapid pro-
gress in the past two years shows the
| licensing provisions are being seri-
| ously sought by warehouse men.
such agricultural products as cot
| ton seed. peanuts. beans and other
| things may be stored if the Harris
bill becomes a law. In Georgia and
| the South as a whole diversif1cation
| of crops to get away from cotton en-
| tirely has brought stimulated interest
| in crops other than cotton.
THE department feels that it is
unnecessary work for it and the
| warehouse men to have applications
made each year for a license, and
my amendment would have the Ii
cense continue until terminated at
any time for failure to observe the
law. The licensing of persons to in
spect and sample products and to
certify their condition makes it pos
sible for proper classification of pro-
ducts to get the greatest values. An
instance is cotton, where the value
depends on the grades, and under the
| proper showing larger advances may
be made on the warehouse receipt
| showing the exact grade of cotton.
| This can be done under proper regu-
lation for inspectors and samplers.
The value of receipts under the
warehouse act is shown by the fact
| Inat the D." ar FINANCE corporation, IN
making its loans covering various
| products, has not refused in a single
| case to accept Federal warehouse re-
| ceipts as security for loans which it
| has made to producers.
'The penalty features for viola
tons of the warehouse law are ex-
| tended SO as to have salutary as
well as lettering influence upon ware
| house men who may be tempted to go
wrong The department administer
| ing the law did not think it advisable
| to increase the amount of bond to be
| required, but the penalty was in
| 900 and from six months in prison to
| one year. A feature was added
| which permits the owner of the pro-
i duct lost to be reimbursed out of
value of the product if the value ex-
| ceeds $4,000"
| Senator Harris said there were 269
cotton warehouses, with combined
| censed up to April /, 1922. This COM
| pares with 23s cotton warehouses
| with a combined capacity of 429,e75
bales on April 1. 1s21. The small in
but the large increase in capacity
| for the year is explained by the
| showing that a few large warehouses
| entered.
From the time the first law was
| passed until April 1. 1920, there were
only % cotton warehouses, with a
! combined capacity of 40.O5O bales
Rapid progress in growth of the
warehouses is shown by the reports
| of the department.
| Would Develop Forms
The trainers of the original Ware
! house Act had in mind developing a
| form of warehouse receipts which
| would possess the greatest credit ad
vantases," declared Senator Harris.
AN instance given by the depart
! ont S110 J1,n q
| letter to it from a large cotton plan
tation operator in the Delta section.
He recently approached New Or
| leans banker for a loan, offering as
security some 500 cotton warehouse
receipts. The receipts were left with
the banker for investigation, and
! upon return the planter was in
| formed that he could get a loan on
! all except ten or twelve of the re-
| ceipts. The holder of the receipts
asked no questions, but glanced at
the receipts which were returned
| and immedia tely noted that these re-
ceoipts had been issued by the ware
! house prior to its becoming licensed
| under the act. All of the other re-
ceipts were licensed receipts and
| were acceptable to the banker as col
| lateral"
The Federal Reserve Board
through Governor Harding recently
| stated: Generally speaking, there
can be no doubt that warehouse re-
ceipts issued bv warehouse men T.
censed and bonded under the United
! States Warehouse Act will be consid-
| cred by bankers as more deSirab le
! collateral security than those issued
| by warehouse men who are not Ii
| censed or bonded under any state or
| Federal law
| Senator Harris said one of the
greatest problems confronting the
| farmer was to find a way to systemat-
| ically market his products SO as to
get the value which he was justly
entitled to. and he believed the
broaden ng of the Warehouse Act, as
proposed by him. would go a long
way toward providing great relief for
the farmers.
RELAXATION IN POLITICS,
Senator Frederick Hale of Maine